RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/CHN/49/Add.2
1 October 2001
(01-4767)
Working Party on the
Accession of China
REPORT OF THE WORKING PARTY ON
THE ACCESSION OF CHINA
Addendum
Schedule CLII – The People's Republic of China
Part II –Schedule of Specific Commitments on Services
List of Article II MFN Exemptions
_______________
As indicated in paragraph 343 of the Report of the Working Party on the Accession of China
(WT/ACC/CHN/49), the Schedule of Specific Commitments on Services resulting from the
negotiations between the People's Republic of China and WTO Members is annexed to the Protocol
of Accession of China and is reproduced hereunder.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED IN THIS
SCHEDULE(3) In China, foreign invested
enterprises include foreign capitalenterprises (also referred to aswholly foreign-owned enterprises)and joint venture enterprises andthere are two types of joint ventureenterprises: equity joint venturesand contractual joint ventures.
1
The proportion of foreign investment inan equity joint venture shall be no lessthan 25 per cent of the registered capitalof the joint venture.
The establishment of branches by foreign
enterprises is unbound, unless otherwiseindicated in specific sub-sectors, as thelaws and regulations on branches offoreign enterprises are under formulation.
Representative offices of foreign
enterprises are permitted to beestablished in China, but they shall notengage in any profit-making activitiesexcept for the representative officesunder CPC 861, 862, 863, 865 in thesectoral specific commitments.(3) Unbound for all the existing
subsidies to domestic servicessuppliers in the sectors of audio-visual, aviation and medicalservices.
                                                     
1 The terms of the contract, concluded in accordance with China's laws, regulations and other measures, establishing a "contract ual joint venture" govern matters such as the manner of
operation and management of the joint venture as well as the investment or other contributions of the joint venture parties. Eq uity participation by all parties to the contractual joint venture is not
required, but is determined pursuant to the joint venture contract.WT/ACC/CHN/49/Add.2
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The conditions of ownership, operation
and scope of activities, as set out in therespective contractual or shareholderagreement or in a licence establishing orauthorizing the operation or supply ofservices by an existing foreign servicesupplier, will not be made morerestrictive than they exist as of the date ofChina's accession to the WTO.
The land in the People's Republic of
China is State-owned. Use of land byenterprises and individuals is subject tothe following maximum term limitations:
(a) 70 years for residential purposes;
(b) 50 years for industrial purposes;(c) 50 years for the purpose of
education, science, culture, publichealth and physical education;
(d) 40 years for commercial, tourist and
recreational purposes;
(e) 50 years for comprehensive
utilization or other purposes.
(4) Unbound except for measures
concerning the entry and temporarystay of natural persons who fall intoone of the following categories:(4) Unbound except for the measures
concerning the entry and temporarystay of natural persons who fall intothe categories referred to in themarket access column.WT/ACC/CHN/49/Add.2
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(a) Managers, executives and
specialists defined as senioremployees of a corporation of aWTO Member that has establisheda representative office, branch orsubsidiary in the territory of thePeople's Republic of China,temporarily moving as intra-corporate transferees, shall bepermitted entry for an initial stay ofthree years;
(b) Managers, executives and
specialists defined as senioremployees of a corporation ofWTO Members, being engaged inthe foreign invested enterprises inthe territory of the People'sRepublic of China for conductingbusiness, shall be granted a long-term stay permit as stipulated in theterms of contracts concerned or aninitial stay of  three years,whichever is shorter;
(c) Service salespersons – persons not
based in the territory of the People'sRepublic of China and receiving noremuneration from a source locatedwithin China, and who are engagedin activities related to representing aservice supplier for the purpose ofnegotiation for the sale of servicesof that supplier where:(a) such sales are not directly
made to the general public and
(b) the salesperson is not engaged
in supplying the service: entryfor salespersons is limited to a90-day period.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
II. SPECIFIC COMMITMENTS
A. Professional Services
a. Legal Services
(CPC 861, excluding Chinese lawpractice)(1) None
(2) None(3) Foreign law firms can provide legal
services only in the form ofrepresentative offices in Beijing,Shanghai, Guangzhou, Shenzhen,Haikou, Dalian, Qingdao, Ningbo,Yantai, Tianjin, Suzhou, Xiamen,Zhuhai, Hanghou, Fuzhou, Wuhan,Chengdu, Shenyang and Kunmingonly.
Representative offices can engage in
profit-making activities.Representative offices in China shallbe no less than the numberestablished upon the date ofaccession.  A foreign law firm canonly establish one representativeoffice in China.  The above-mentioned geographic andquantitative limitations will beeliminated within one year afterChina's accession to the WTO.(1) None
(2) None(3) All representatives shall be resident
in China no less than six monthseach year.  The representative officeshall not employ Chinese nationalregistered lawyers outside of China.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Business scope of foreign representative
offices is only as follows:
(a) to provide clients with consultancy
on the legislation of thecountry/region where the lawyers ofthe law firm are permitted to engagein lawyer's professional work, andon international conventions andpractices;
(b) to handle, when entrusted by clients
or Chinese law firms, legal affairs ofthe country/region where thelawyers of the law firm arepermitted to engage in lawyer'sprofessional work;
(c) to entrust, on behalf of foreign
clients, Chinese law firms to dealwith the Chinese legal affairs;
(d) to enter into contracts to maintain
long-term entrustment relations withChinese law firms for legal affairs;
(e) to provide information on the
impact of the Chinese legalenvironment.
Entrustment allows the foreign
representative office to directly
instruct lawyers in the entrustedChinese law firm, as agreed betweenboth parties.WT/ACC/CHN/49/Add.2
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The representatives of a foreign law firm
shall be practitioner lawyers who aremembers of the bar or law society in aWTO member and have practiced for noless than two years outside of China. TheChief representative shall be a partner or
equivalent (e.g., member of a law firm of
a limited liability corporation) of a lawfirm of a WTO member and havepracticed for no less than three years.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.
b. Accounting, auditing and
bookkeeping services (CPC 862)(1) None
(2) None(3) Partnerships or incorporated
accounting firms are limited toCertified Public Accountants(CPAs) licensed by the Chinese
authorities.
(4) Unbound except as indicted in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicted in
Horizontal Commitments.- Foreign accounting firms are
permitted to affiliate with Chinesefirms and enter into contractualagreements with their affiliatedfirms in other WTO members.
- Upon accession to the WTO,
issuance of licenses to thoseforeigners who have passed theChinese national CPA examinationshall be accorded national treatment.
- Applicants will be informed of
results in writing no later than 30days after submission of theirapplications.
- Existing contractual joint venture
accounting firms are not limitedonly to CPAs licensed by Chineseauthorities.
- Accounting firms providing services
in CPC 862 can engage in taxationand management consultingservices. They will not be subject torequirements on form ofestablishment in CPC 865 and 8630.WT/ACC/CHN/49/Add.2
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c. Taxation services
(CPC 8630)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.None, within six years of China's
accession, foreign firms will be
permitted to establish whollyforeign-owned subsidiaries.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
d. Architectural services
(CPC 8671)
e. Engineering services
(CPC 8672)
f. Integrated engineering services
(CPC 8673)
g. Urban planning services (except
general urban planning)(CPC 8674)(1) None for scheme design
  Co-operation with Chinese
professional organisations is
required except scheme design
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
Within five years after China's
accession to the WTO, whollyforeign-owned enterprises will bepermitted
(4) Unbound, except as indicated in
Horizontal Commitments(1) None
(2) None
(3) Foreign service suppliers shall be
registered architects/engineers, orenterprises engaged in
architectural/engineering/urban
planning services, in their homecountry
(4) Unbound, except as indicated in
Horizontal CommitmentsWT/ACC/CHN/49/Add.2
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h. Medical and dental services
(CPC 9312)(1) None
(2) None(3) Foreign service suppliers are
permitted to establish joint venturehospitals or clinics with Chinesepartners with quantitative limitations
in line with China's needs, with
foreign majority ownershippermitted.
(4) Unbound, except as indicated in
Horizontal Commitments and as
follows:
Foreign doctors with professional
certificates issued by their homecountry shall be permitted to provideshort-term medical services in China
after they obtain licenses from the
Ministry of Public Health. The termof service is six months and mayextend to one year.(1) None
(2) None(3) The majority of doctors and medical
personnel of the joint venturehospital and clinics shall be ofChinese nationality.
(4) Unbound, except as indicated in
Horizontal CommitmentsWT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Computer and Related Services
a. Consultancy services related to the
installation of computer hardware(CPC 841)(1) None
(2) None(3) None(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None(4) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)
and three years of experience in
these fields.
b. Software implementation services
(CPC 842)
- Systems and software consulting
services (CPC 8421)
 -  Systems analysis services
(CPC 8422)
- Systems design services
(CPC 8423)
- Programming  services
(CPC 8424)
- Systems maintenance services
(CPC 8425)
c. Data processing services
(CPC 843)
- Input preparation services
(CPC 8431)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)and three years of experience inthese fields.
-  Data processing and tabulation
services(CPC 8432)
- Time-sharing services
(CPC 8433)(1) None
(2) None
(3) None(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnel
with Bachelor's degree (or above)and three years of experience inthese fields.WT/ACC/CHN/49/Add.2
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D. Real Estate Services
a. Real estate services involving own
or leased property(CPC 821)(1) None
(2) None(3) None except for the following:
Wholly foreign-owned enterprisesare not permitted for high standardreal estate projects
2, such as
apartments and office buildings, but
excluding luxury hotels.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
b. Real estate services on a fee or
contract basis(CPC 822)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
                                                     
2 High standard real estate projects refer to the real estate projects with construction costs per unit two times more than the average construction costs per unit in the same city.WT/ACC/CHN/49/Add.2
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F. Other Business Services
a. Advertising Services
(CPC 871)(1) Only through advertising agents
registered in China who have theright to provide foreign advertisingservices.
(2) Only through advertising agents
registered in China who have the
right to provide foreign advertising
services.
(3) Foreign service suppliers are
permitted to establish advertisingenterprises in China only in the form
of joint ventures with foreign
investment no more than 49 percent.Within two years after China'saccession, foreign majorityownership will be permitted and
within four years after China's
accession, wholly foreign-ownedsubsidiaries will be permitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
c. Management Consulting services
(CPC 865)(1) None
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.None, within six years of China'saccession, foreign firms will bepermitted to establish wholly
foreign-owned subsidiaries.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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e. Technical testing and analysis
services(CPC 8676)and freight inspection covered byCPC 749,excluding statutory inspectionservices for freight inspectionservices(1) None
(2) None(3) Foreign services suppliers which
have been engaged in inspectionservices in their home countries formore than three years are permitted
to establish joint venture technical
testing, analysis and freightinspection companies with no lessthan US$ 350,000 in registeredcapital.
Within two years after China's
accession, foreign majorityownership will be permitted andwithin four years after China'saccession, wholly foreign-ownedsubsidiaries will be permitted.
(4) Unbound except as indicated in
Horizontal Commitments(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
f. Services incidental to agriculture,
forestry, hunting and fishing(CPC 881, 882)
m. Related scientific technical
consulting services(CPC 8675)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
- Offshore oil-field services
geological, geophysical and otherscientific prospecting services(CPC 86751)Sub-surface surveying services(CPC 86752)(1) None
(2) None
(3) Only in the form of petroleum
exploitation in cooperation withChinese partners
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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- Onshore oil-field services (1) None
(2) None(3) Only in the form of petroleum
exploitation in cooperation withChina National Petroleum Corp.(CNPC) in the designated areas
approved by the Chinese
government.In order to carry out the petroleumcontract, the foreign service suppliershall establish a branch, subsidiary
or representative office within the
territory of the People's Republic ofChina and go through registrationformalities in accordance with thelaws.  The domiciles of the saidoffices shall be determined through
consultation with CNPC.
The foreign service supplier shallopen its bank account with a bankapproved by the Chinese authoritiesto engage in foreign exchangebusiness within the Chinese
territory.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) The foreign service supplier shall
furnish CNPC accurately andpromptly with the reports on thepetroleum operations, and shall
submit to CNPC the data and
samples as well as varioustechnological, economic, accountingand administrative reports related topetroleum operations.
CNPC shall have the ownership of
all of the data records, samples,vouchers and other originalinformation acquired during theimplementation of the petroleumoperations.  The investment of
foreign service suppliers shall be
made in US dollars or other hardcurrencies.
(4) Unbound except as indicated in
Horizontal Commitments.
p. Photographic services
(CPC 875)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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q. Packaging services
(CPC 876)(1) None
(2) None(3) Foreign service suppliers will be
permitted to establish joint venturein China.Within one year after China's
accession, foreign majority
ownership will be permitted.Within three years after China'saccession, foreign service supplierswill be permitted to establish wholly
foreign-owned subsidiaries.
(4) Unbound, except as indicated in
Horizontal Commitments(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal Commitments.
s. Convention services
(CPC 87909)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
t. Translation and interpretation
services(CPC 87905)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows: three
years of experience in translation orinterpretation and a good commandof the working language(s).WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Maintenance and repair services
(CPC 63, 6112 and 6122)
- Maintenance and repair services of
office machinery and equipmentincluding computers(CPC 845 and 886)
- Rental and leasing services
(CPC 831, 832, excludingCPC 83202)(1) None
(2) None(3) Only in the form of joint ventures.
Within one year after China'saccession, foreign majorityownership will be permitted.
Within three years after China's
accession, wholly foreign-ownedsubsidiaries will be permitted.For Rental and Leasing services,service suppliers will have global
assets of US$ 5 million.
(4) Unbound, except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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2. COMMUNICATION SERVICES
B. Courier Services
(CPC 75121, except for thosecurrently specifically reserved toChinese postal authorities by law)(1) None
(2) None(3) Upon accession, foreign service
suppliers will be permitted toestablish joint ventures with foreigninvestment not exceeding 49 per
cent.
Within one year after China'saccession, foreign majorityownership will be permitted.Within four years after China'saccession, foreign service suppliers
will be permitted to establish wholly
foreign-owned subsidiaries.
(4) Unbound, except as indicated in
Horizontal Commitments(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal Commitments
C. Telecommunication Services3
Value-added ServicesIncluding the following:
h. Electronic mail
i. Voice mailj. On-line information and database
retrieval
k. Electronic data interchangel. Enhanced/Value-added facsimile
services
(including store and forward, storeand retrieve)
m. Code and protocol conversionn. On-line information and/or data
processing (including transaction
processing)(1) See mode 3
(2) None(3) Foreign service suppliers will be
permitted to establish joint venture
value-added telecommunicationenterprises, without quantitativerestrictions, and provide services inthe cities of Shanghai, Guangzhouand Beijing. Foreign investment in
joint venture shall be no more than
30 per cent.   Within one year after China'saccession, the areas will beexpanded to include Chengdu,
Chongqing, Dalian, Fuzhou,
Hangzhou, Nanjing, Ningbo,(1) None
(2) None(3) NoneChina undertakes the obligations
contained in the Reference Paper inAnnex I  attached hereto.
                                                     
3 China's commitments are scheduled in accordance with the following: Notes for Scheduling Basic Telecom Services Commitments (S /GBT/W/2/REV/1) and Market Access Limitations
on Spectrum Availability (S/GBT/W/3) attached hereto.
All international telecommunications services shall go through ga teways established with the approval of China's telecommunicat ions authorities, which will act as an independent
regulatory authority in accordance with the principles of paragraph 5 of the Reference Paper.
Further liberalization of this sector, incl uding with respect to the level of equity  participation permitted, will be discussed  in the services negotiations during the new round of trade talks.WT/ACC/CHN/49/Add.2
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Qingdao, Shenyang, Shenzhen,
Xiamen, Xi'an, Taiyuan and Wuhanand foreign investment shall be nomore than 49 per cent.Within two years after China'saccession, there will be no
geographic restriction and foreign
investment shall be no more than50 per cent.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.
Basic TelecommunicationServices
- Paging Services(1) See mode 3
(2) None
(3) Foreign service suppliers will be
permitted to establish joint ventureenterprises, without quantitativerestrictions, and provide services inand between the cities of Shanghai,Guangzhou and Beijing. Foreign
investment in joint venture shall be
no more than 30 per cent.   Within one year after China'saccession, the areas will beexpanded to include services in and
between Chengdu, Chongqing,
Dalian, Fuzhou, Hangzhou,Nanjing, Ningbo, Qingdao,Shenyang, Shenzhen, Xiamen,Xi'an, Taiyuan and Wuhan andforeign investment shall be no more
than 49 per cent.
Within two years after China'saccession, there will be nogeographic restriction and foreigninvestment shall be no more than 50per cent.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.China undertakes the obligations
contained in the Reference Paper in
Annex 1 attached hereto.WT/ACC/CHN/49/Add.2
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Mobile Voice and Data Services:
- Analogue / Digital / Cellular
Services
- Personal Communication Services(1) See mode 3
(2) None(3) Upon China's accession, foreign
service suppliers will be permittedto establish joint venture enterprises,without quantitative restrictions, and
provide services in and between the
cities of Shanghai, Guangzhou andBeijing. Foreign investment in thejoint venture shall be no more than25 per cent.   
Within one year after accession, the
areas will be expanded to includeservices in and between Chengdu,Chongqing, Dalian, Fuzhou,Hangzhou, Nanjing, Ningbo,Qingdao, Shenyang, Shenzhen,
Xiamen, Xi'an, Taiyuan and Wuhan
and foreign investment shall be nomore than 35 per cent.Within three years after accession,foreign investment shall be no morethan 49 per cent.
Within five years after accession,
there will be no geographicrestriction.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Domestic Services
a. Voice services
b. Packet-switched data transmission
services
c. Circuit-switched data transmission
services
f. Facsimile servicesg. Domestic private leased circuit
services
- International Services
a. Voice services
b. Packet-switched data transmission
services
c. Circuit-switched data  transmission
services
f. Facsimile services
g. International closed user group
voice and data services (use ofprivate leased circuit service ispermitted)(1) See mode 3
(2) None(3) Within three years after China's
accession, foreign service supplierswill be permitted to establish jointventure enterprises, without
quantitative restrictions, and provide
services in and between the cities ofShanghai, Guangzhou and Beijing.Foreign investment in the jointventure shall be no more than 25 per
cent.
Within five years after accession,the areas will be expanded toinclude services in and betweenChengdu, Chongqing, Dalian,Fuzhou, Hangzhou, Nanjing,
Ningbo, Qingdao, Shenyang,
Shenzhen, Xiamen, Xi'an, Taiyuanand Wuhan. And foreign investmentshall be no more than 35 per cent.Within six years after accession,there will be no geographic
restriction and foreign investment
shall be no more than 49 per cent.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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D. Audiovisual Services
- Videos, including entertainment
software and(CPC 83202), distribution services
- Sound recording distribution
services(1) None
(2) None(3) Upon accession, foreign services
suppliers will be permitted toestablish contractual joint ventureswith Chinese partners to engage in
the distribution of audiovisual
products, excluding motion pictures,without prejudice to China's right toexamine the content of audio andvideo products (see footnote 1).
(4) Unbound, except as indicated in
Horizontal Commitments(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal CommitmentsWithout prejudice to compliance with
China's regulations on the administrationof films, upon accession, China will allowthe importation of motion pictures fortheatrical release on a revenue-sharingbasis and the number of such imports
shall be 20 on an annual basis.
- Cinema Theatre Services (1) None
(2) None(3) Upon accession, foreign services
suppliers will be permitted toconstruct and/or renovate cinema
theatres, with foreign investment no
more than 49 per cent.
(4) Unbound, except as indicated in
Horizontal Commitments(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal CommitmentsWT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
(CPC 511, 512, 5134, 514, 515,
516, 517, 5185)(1) Unbound*
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.Within three years after China's
accession to the WTO, wholly
foreign-owned enterprises will bepermitted. Wholly foreign-ownedenterprises can only undertake thefollowing four types of constructionprojects.
1. Construction projects wholly
financed by foreign investmentand/or grants.2. Construction projects financedby loans of international financial
institutions and awarded through
international tend ering according to
the terms of loans.3. Chinese-foreign jointlyconstructed projects with foreign
investment equal to or more than 50
per cent; and Chinese-foreign jointlyconstructed projects with foreigninvestment less than 50 per cent buttechnically difficult to beimplemented by Chinese
construction enterprises alone(1) Unbound*
(2) None(3) None except for the following:
(a) The existing registered capital
requirements for joint venture
construction enterprises are slightly
different from those of the domesticenterprises.(b) Joint venture constructionenterprises have the obligation toundertake foreign-invested
construction projects.
Within three years after China's
accession to the WTO, none.
                                                     
4 Including dredging services rela ting to infrastructure construction.
5 Coverage of CPC 518 is limited only to the rental and leasin g services of construction and/or demolition machines with operato r which are owned and used by foreign construction
enterprises in their supply of services.
* Unbound due to lack of technical feasibility.WT/ACC/CHN/49/Add.2
Page 23Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
4. Chinese invested construction
projects which are difficult to beimplemented by Chineseconstruction enterprises alone canbe jointly undertaken by Chineseand foreign construction enterprises
with the approval of provincial
government
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 24Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
4. DISTRIBUTION SERVICES
(as defined in Annex 2)
A. Commission Agents’ Services
(excluding salt, tobacco)
B. Wholesale Trade Services6
(excluding salt, tobacco)(1) Unbound
(2) None(3) Within one year after China's
accession to the WTO, foreignservice suppliers may establish jointventures to engage in the
commission agents' business and
wholesale business of all importedand domestically produced products,except those products thatimmediately follow. For theseproducts, foreign service suppliers
will be permitted to engage in the
distribution of books, newspapers,magazines, pharmaceuticalproducts, pesticides and mulchingfilms within three years afterChina's accession, and to engage in
the distribution of chemical
fertilizers, processed oil and crudeoil within five years after China'saccession.Within two years after China's
accession to the WTO, foreign
majority ownership will bepermitted and no geographic orquantitative restrictions will apply.None, within three years afteraccession, except for chemical
fertilizers, processed oil and crude
oil within five years after accession.
(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.Foreign-invested enterprises are
permitted to distribute their productsmanufactured in China, including theproducts listed in the market access orsector or sub-sector column, and providesubordinate services as defined in
Annex 2.
Foreign service suppliers are permitted toprovide the full range of relatedsubordinate services, including after salesservices, as defined in Annex 2, for theproducts they distribute.
                                                     
6 The restrictions on mode 1 shall not undermine the rights of WT O Members to the right to trade as stipulated in Chapter 5 of C hina's Protocol of accession to the WTO.WT/ACC/CHN/49/Add.2
Page 25Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
C. Retailing Services (excluding
tobacco).(1) Unbound except for mail order.
(2) None(3) Foreign service suppliers may
supply services only in forms ofjoint ventures in five SpecialEconomic Zones (Shenzhen,
Zhuhai, Shantou, Xiamen and
Hainan) and six cities (Beijing,Shanghai, Tianjin, Guangzhou,Dalian and Qingdao). In Beijing andShanghai, a total of no more than
four joint venture retailing
enterprises are permittedrespectively. In each of the othercities, no more than two jointventure retailing enterprises will bepermitted. Two joint venture
retailing enterprises among the four
to be established in Beijing may setup their branches in the same city(i.e. Beijing).Upon China's accession to theWTO, Zhengzhou and Wuhan will
be immediately open to joint
venture retailing enterprises. Withintwo years after China's accession tothe WTO, foreign majority controlwill be permitted in joint ventureretailing enterprises and all
provincial capitals, Chongqing and
Ningbo will be open to joint ventureretailing enterprises.Foreign service suppliers will bepermitted to engage in the retailing
of all products, except for the
retailing of books, newspapers andmagazines within one year afteraccession, the retailing ofpharmaceutical products, pesticides,mulching films and processed oil(1) Unbound except for mail order.
(2) None(3) NoneForeign-invested enterprises may
distribute their products manufactured inChina, including those excepted productsas listed in the market access or sector orsub-sector column, and providesubordinate services as defined in
Annex 2.
Foreign service suppliers are permitted toprovide full range of related subordinateservices, including after sales services, asdefined in Annex 2, for the products they
distribute.WT/ACC/CHN/49/Add.2
Page 26Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
within three years after accession
and retailing of chemical fertilizerswithin five years after accession.None, within three years afteraccession, except for:- retailing of  chemical fertilizers,
within five years after accession;
and- those chain stores which sellproducts of different types andbrands from multiple suppliers withmore than 30 outlets. For such
chains stores with more than 30
outlets, foreign majority ownershipwill not be permitted if those chainstores distribute any of thefollowing products: motor vehicles(for a period of five years after
accession at which time the equity
limitation will have beeneliminated), and products listedabove and in Annex 2a of theProtocol of China's WTOAccession. The foreign chain store
operators will have the freedom of
choice of any partner, legallyestablished in China according toChina's laws and regulations.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 27Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
D. Franchising (1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
Horizontal Commitments.
E. Wholesale or retail trade services
away from a fixed location.(1) None
(2) None
(3) Within three years after China's
accession to the WTO, none7.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
Horizontal Commitments.
                                                     
7 See paragraph 309 of the Working Party Report.WT/ACC/CHN/49/Add.2
Page 28Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
5. EDUCATIONAL SERVICES
(Excluding special education services e.g.
military, police, political and party schooleducation)
A. Primary education services
(CPC 921, excluding national
compulsory education in CPC
92190)
B. Secondary education services
(CPC 922, excluding nationalcompulsory education in CPC92210)
C. Higher education services
(CPC 923)
D. Adult education services
(CPC 924)
E. Other education services
(CPC 929, including English
language training)(1) Unbound
(2) None(3) Joint schools will be established,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments and the
following:foreign individual education servicesuppliers may enter into China toprovide education services wheninvited or employed by Chinese
schools and other education
institutions.(1) Unbound
(2) None(3) Unbound
(4) Qualifications are as follows:
possession of Bachelor's degree or
above;and an appropriate professional titleor certificate, with two years’professional experiences.WT/ACC/CHN/49/Add.2
Page 29Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
6. ENVIRONMENTAL SERVICES
(excluding environmental quality
monitoring and pollution sourceinspection)A. Sewage Services
(CPC 9401)
B. Solid Waste Disposal Services
(CPC 9402)
C. Cleaning Services of Exhaust Gases
(CPC 9404)
D. Noise Abatement Services
(CPC 9405)
E. Nature and Landscape Protection
Services
(CPC 9406)
F. Other Environmental Protection
Services(CPC 9409)
G. Sanitation Services
(CPC 9403)(1) Unbound except for environmental
consultation services.
(2) None(3) Foreign services suppliers engaged
in environmental services arepermitted to provide services only in
the form of joint ventures, with
foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal CommitmentsWT/ACC/CHN/49/Add.2
Page 30Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
7. FINANCIAL SERVICES
A. All Insurance and Insurance-Related
Services8
a. Life, health and 
pension/annuities insurance
b. Non-life insurancec. Reinsurance
d. Services auxiliary to insurance(1) Unbound except for :
a) reinsurance;b) international marine, aviation,and transport insurance; and
c) brokerage for large scale
commercial risks,  international
marine, aviation, and transport
insurance,  and reinsurance.
(2) Unbound for brokerage. Other,
none.
(3) A. Form of establishment
Foreign non-life insurers will be
permitted to establish as a branch or
as a joint venture with 51 per centforeign ownership.Within two years after China'saccession, foreign non-life insurerswill be permitted to establish as a
wholly-owned subsidiary; i.e., with
no form of establishmentrestrictions.   Upon accession, foreign life insurerswill be permitted 50 per cent foreign
ownership in a joint venture with the
partner of their choice.   The joint venture partners can freelyagree the terms of their engagement,provided they remain within thelimits of the commitments contained
in this schedule.
For brokerage for insurance of largescale commercial risks andbrokerage for reinsurance andbrokerage for international marine,(1) None
(2) None
(3) None, except for:
- Foreign insurance institutions
shall not engage in the statutory
insurance business.- Upon accession, a 20 per centcession of all lines of the primaryrisks for non-life, personal accidentand health insurance business with
an appointed Chinese Reinsurance
Company shall be required; oneyear after accession, 15 per centshall be required; two years afteraccession, ten per cent shall be
required; and three years after
accession, five per cent shall berequired; and four years afteraccession, no compulsory cessionshall be required.
                                                     
8 Any further authorization provided to foreign insurers after accession under more favorable c onditions than those contained in this schedule (including the extension of grandfathered
investments through branching, sub-branching or any other legal form), will be made available to other foreign service supplier s which so requested.WT/ACC/CHN/49/Add.2
Page 31Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
aviation, and transport insurance
and reinsurance: upon accession,joint venture with foreign equity nomore than 50 per cent will bepermitted; within three years afterChina's accession, foreign equity
share shall    be increased to 51 per
cent; within five years after China'saccession, wholly foreign ownedsubsidiary will be permitted.  Forother brokerage services: Unbound.
Internal branching for an insurance
firm will be permitted consistentwith the phase out of geographicrestrictions.
B. Geographic Coverage
Upon accession, foreign life and
non-life insurers, and insurancebrokers will be permitted to provideservices in Shanghai, Guangzhou,Dalian, Shenzhen and Foshan.Within two years after China's
accession, foreign life and non-life
insurers, and insurance brokers willbe permitted to provide services inthe following cities: Beijing,Chengdu, Chongqing, Fuzhou,Suzhou, Xiamen, Ningbo,
Shenyang, Wuhan and Tianjin.
Within three years after China'saccession, there will be nogeographic restrictions.WT/ACC/CHN/49/Add.2
Page 32Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
C. Business Scope
Upon accession, foreign non-life
insurers will be permitted to provide"master policy" insurance/insuranceof large scale commercial risks,which has no geographic
restrictions. In accordance with
national treatment, foreign insurancebrokers will be permitted to provide"Master policy" no later thanChinese brokers, under conditions
no less favourable.
Foreign non-life insurers arepermitted to provide insurance ofenterprises abroad as well asproperty insurance, related liabilityinsurance and credit insurance of
foreign-invested enterprises in
China upon accession. Within 2years after China's accession,foreign non-life insurers will bepermitted to provide the full rangeof non-life insurance services to
both foreign and domestic
clients.Foreign insurers are permitted toprovide individual (not group)insurance to foreigners and Chinesecitizens; within three years after
accession, foreign insurers will be
permitted to provide healthinsurance, group insurance andpension/annuities insurance toforeigners and Chinese.WT/ACC/CHN/49/Add.2
Page 33Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Upon accession, foreign insurers
will be permitted to providereinsurance services for life andnon-life insurance as a branch, jointventure, or wholly foreign-ownedsubsidiary, without geographic or
quantitative restrictions on the
number of licenses issued.
D. Licenses
Upon accession, licenses will beissued with no economic needs testor quantitative limits on licenses.Qualifications for establishing aforeign insurance institution are asfollows:
-  the investor shall be a foreign
insurance company with more than30 years of establishmentexperience in a WTO member;-  it shall have a representativeoffice for two consecutive years in
China;
-  it shall have total assets of morethan US $5 billion at the end of theyear prior to application, except forinsurance brokers.Insurance brokers shall have total
assets of more than US$ 500
million. Within one year afteraccession, they shall have totalassets of more than US$ 400million. Within two years after
accession, they shall have total
assets of more than US$ 300 millionWithin four years after accession,they shall have total assets of morethan US$ 200 million.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 34Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Banking and Other Financial
Services(excluding insurance and securities)
Banking services as listed below:
a. Acceptance of deposits and other
repayable funds from the public;
b. Lending of all types, including
consumer credit, mortgage credit,factoring and financing of
commercial transaction;
c. Financial leasing;d. All payment and money
transmission services, includingcredit, charge and debit cards,travellers cheques and bankers
drafts(including import and export
settlement);
e. Guarantees and commitments;f. Trading for own account or for
account of customers: foreignexchange.(1) Unbound except for the following:
- Provision and transfer of financial
information, and financial dataprocessing and related software bysuppliers of other financial services;
- Advisory, intermediation and other
auxiliary financial services on all
activities listed in subparagraphs (a)through (k), including creditreference and analysis, investmentand portfolio research and advice,
advice on acquisitions and on
corporate restructuring and strategy.
(2) None(3) A. Geographic coverage
For foreign currency business, therewill be no geographic restriction
upon accession. For local currency
business, the geographic restrictionwill be phased out as follows: Uponaccession, Shanghai, Shenzhen,Tianjin and Dalian; Within one yearafter accession, Guangzhou, Zhuhai,
Qingdao, Nanjing and Wuhan;
within two years after accession,Jinan, Fuzhou, Chengdu andChongqing; within three years afteraccession, Kunming, Beijing andXiamen; Within four years after
accession, Shantou, Ningbo,
Shenyang and Xi'an. Within fiveyears after accession, all geographicrestrictions will be removed.(1) None
(2) None
(3) Except for geographic restrictions
and client limitations on localcurrency business (listed in the
market access column), foreign
financial institution may dobusiness, without restrictions orneed for case-by-case approval, withforeign invested enterprises, non-Chinese natural persons, Chinese
natural persons and Chinese
enterprises.  Otherwise, none.For financial leasing services, foreign
financial leasing corporations will bepermitted to provide financial leasingservice at the same time as domesticcorporations.WT/ACC/CHN/49/Add.2
Page 35Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Clients
For foreign currency business,
foreign financial institutions will bepermitted to provide services inChina without restriction as toclients upon accession.
For local currency business, within
two years after accession, foreignfinancial institutions will bepermitted to provide services toChinese enterprises. Within five
years after accession, foreign
financial institutions will bepermitted to provide services to allChinese clients. Foreign financialinstitutions licensed for localcurrency business in one region of
China may service clients in any
other region that has been openedfor such business.
C. Licensing
Criteria for authorization to deal inChina's financial services sector are
solely prudential (i.e., contain no
economic needs test or quantitativelimits on licenses). Within five yearsafter accession, any existing non-prudential measures restrictingownership, operation, and juridical
form of foreign financial
institutions, including on internalbranching and licenses, shall beeliminated.
Foreign financial institutions who
meet the following condition are
permitted to establish a subsidiaryof a foreign bank or a foreignfinance company in China:WT/ACC/CHN/49/Add.2
Page 36Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- total assets of more than US
$10 billion at the end of the yearprior to filing the application.
 Foreign financial institutions who
meet the following condition are
permitted to establish a branch of a
foreign bank in China:- total assets of more than US$20 billion at the end of the yearprior to filing the application.
Foreign financial institutions who
meet the following condition arepermitted to establish a Chinese-foreign joint bank or a Chinese-foreign joint finance company in
China:
- total assets of more thanUS $10 billion at the end of the yearprior to filing the application.
Qualifications for foreign financial
institutions to engage in local
currency business are as follows:- three years business operationin China and being profitable fortwo consecutive years prior to theapplication, otherwise, none.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 37Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Motor vehicle financing by non-
bank financial institutions(1) Unbound except for the following:
- Provision and transfer offinancial information, and financialdata processing and related softwareby suppliers of other financialservices;
- Advisory, intermediation and
other auxiliary financial services onall activities listed in subparagraphs(a) through (k), including creditreference and analysis, investment
and portfolio research and advice,
advice on acquisitions and oncorporate restructuring and strategy.
(2) None(3) None(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound
(2) None
(3) None(4) Unbound except as indicated in
Horizontal Commitments.
- Other financial services as listed
below:
k. Provision and transfer of financial
information, and financial dataprocessing and related software bysupplier of other financial services;
l. Advisory, intermediation and other
auxiliary financial services on allactivities listed in subparagraphs (a)through (k), including creditreference and analysis, investmentand portfolio research and advice,
advice on acquisitions and on
corporate restructuring and strategy.(1) None
(2) None
(3) None (Criteria for authorization to
deal in China's financial servicessector are solely prudential (i.e.,contain no economic needs test or
quantitative limits on licenses).
Branches of foreign institutions arepermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Securities (1) Unbound except for the following:
- Foreign securities institutions may
engage directly  (without Chineseintermediary) in B share business.
(2) None(3) a. Unbound, except for the
following:
- Upon accession, representativeoffices in China of foreign securitiesinstitutions may become SpecialMembers of all Chinese stock
exchanges.
- Upon accession, foreignservice suppliers will be permittedto establish joint ventures withforeign investment up to 33 per centto conduct domestic securities
investment fund management
business. Within three years afterChina's accession, foreigninvestment shall be increased to 49per cent. Within three years afteraccession, foreign securities
institutions will be permitted to
establish joint ventures, with foreignminority ownership not exceeding1/3, to engage (without Chineseintermediary) in underwriting Ashares and in underwriting and
trading of B and H shares as well as
government and corporate debts,launching of funds.b. Criteria for authorization todeal in China's financial industry are
solely prudential (i.e., contain no
economic needs test or quantitativelimits on licenses).
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 39Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
9. TOURISM AND TRAVEL RELATED SERVICES
A. Hotels (including apartment
buildings) and Restaurants(CPC 641-643)(1) None
(2) None(3) Foreign services suppliers may
construct, renovate and operate hoteland restaurant establishments inChina in the form of joint ventures
with foreign majority ownership
permitted.
 None, within four years after
accession, wholly foreign-ownedsubsidiaries will be permitted.
(4) Unbound, except as indicated in
Horizontal Commitments and as
follows:
- Foreign managers, specialists
including chefs and seniorexecutives who have signedcontracts with joint venture hotels
and restaurants in China shall be
permitted to provide services inChina.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
Horizontal Commitments.
B. Travel Agency and Tour Operator
(CPC 7471)(1) None
(2) None(3) Foreign services suppliers who meet
the following conditions are
permitted to provide services in the
form of joint venture travel agenciesand tour operators in the holidayresorts designated by the Chinesegovernment and in the cities of
Beijing, Shanghai, Guangzhou and
Xi'an upon accession:
a) a travel agency and tour operator
mainly engaged in travel business;
b) Annual world-wide turnover
exceeds US$ 40 million.(1) None
(2) None(3) None except that joint ventures or
wholly-owned travel agencies and
tour operators are not permitted to
engage in the activities of Chinesetravelling abroad and to Hong KongChina, Macao China and ChineseTaipei.WT/ACC/CHN/49/Add.2
Page 40Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
The registered capital of joint
venture travel agency/tour operatorshall be no less than RMB 4 million.Within three years after China'saccession, the registered capital shallbe no less than RMB 2.5 million.
Within three years after accession
foreign majority ownership will bepermitted.
Within six years after accession, wholly
foreign-owned subsidiaries will be
permitted and geographic restrictions willbe removed.  The business scope of thetravel agency/ tour operator is as follows:
a) travel and hotel accommodation
services for foreign travellers which
can be made directly withtransportation and hotel operators inChina covering such operations;
 b) travel services and hotel
accommodation services for
domestic travellers which can be
made directly with transportationand hotel operators in Chinacovering such operations;
c) conducting of tours within China for
both domestic and foreign travellers,
and
d) travellers check cashing services
within China.
None within six years after
accession, there will be no
restriction on the establishment ofbranches of the joint venture travelagency/tour operator and therequirement on registered capital offoreign-invested travel agency/tour
operator will be the same as that of
Chinese travel agency/tour operator.WT/ACC/CHN/49/Add.2
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
4) Unbound, except as indicated in
Horizontal Commitments.(4) Unbound, except as indicated in
Horizontal Commitments
11. TRANSPORT SERVICES
A. Maritime Transport Services
- International transport (freight and
passengers)(CPC 7211 and 7212 less cabotagetransport services)(1) (a) Liner shipping (including
passenger transportation): None
(b) Bulk, tramp and otherinternational shipping (includingpassenger transportation):  None
(2) None(3) (a) Establishment of registered
companies for the purpose of
operating a fleet under the nationalflag of the People's Republic ofChina:- Foreign service suppliers are
permitted to establish joint venture
shipping companies.- Foreign investment shall notexceed 49 per cent of the totalregistered capital of the jointventure.
- The chairman of board of
directors and the general manager ofthe joint venture shall be appointedby the Chinese side.(b) Other forms of commercialpresence for the supply of
international maritime transport
services: Unbound
(4) (a) Ship's crew: Unbound except
as indicated in HorizontalCommitments.
(b) Key personnel employed by
Commercial Presence as definedunder mode (3) (b) above: Unboundexcept as indicated in HorizontalCommitments.(1) (a) None
(b) None
(2) None
(3) (a) None
(b) Unbound
(4) (a) Unbound except as indicated in
Horizontal Commitments.
(b) Unbound except as indicated in
Horizontal Commitments.The following services at the port are
made available to international maritimetransport suppliers on reasonable andnon-discriminatory terms and conditions:
1. Pilotage
2. Towing and tug assistance
3. Provisioning, fuelling and watering4. Garbage collecting and ballast waste
disposal
5. Port Captain's services6. Navigation aids
7. Shore-based operational services
essential to ship operations,including communications, waterand electrical supplies
8. Emergency repair facilities
9. Anchorage, berth and berthing
services.WT/ACC/CHN/49/Add.2
Page 42Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
H. Auxiliary Services
a. Maritime cargo-handling services
(CPC 741)
c. Customs clearance services for
maritime transport(1) Unbound*
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound*
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
d. Container station and depot services (1) Unbound*
(2) None(3) Only in forms of joint ventures, with
foreign majority ownershippermitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound*
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
e. Maritime agency services (1) None
(2) None(3) Only in forms of joint ventures, with
foreign equity share no more than49 per cent.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
                                                     
* Unbound due to lack of technical feasibility.WT/ACC/CHN/49/Add.2
Page 43Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Internal Waterways Transport
b. Freight transport
(CPC 7222)(1) Only international shipping in ports
open to foreign vessels shall bepermitted.
(2) None(3) Unbound(4) Unbound except as indicated in
Horizontal Commitments.(1) Limitations as indicated under
market access column.
(2) None
(3) Unbound(4) Unbound except as indicated in
Horizontal Commitments
C. Air Transport Services
d. Aircraft repair and maintenance
services(CPC 8868)(1) Unbound*
(2) None(3) Foreign service suppliers are
permitted to establish joint ventureaircraft repair and maintenanceenterprises in China.  The Chinese
side shall hold controlling shares or
be in a dominant position in thejoint ventures.  Licenses for theestablishments of joint ventures aresubject to economic needs test.
(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound*
(2) None(3) The joint ventures have the
obligation to undertake business inthe international market.
(4) Unbound except as indicated in
Horizontal Commitments.
                                                     
* Unbound due to lack of technical feasibility.WT/ACC/CHN/49/Add.2
Page 44Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Computer Reservation System
(CRS) services(1) A. Foreign Computer Reservation
System, when having agreementswith Chinese aviation enterprisesand Chinese Computer ReservationSystem, may provide services toChinese aviation enterprises and
Chinese aviation agents by
connecting with Chinese ComputerReservation System.B. Foreign Computer ReservationSystem may provide services to
representative offices and sales
offices established in the destinationcities in China by foreign aviationenterprises which have the right toengage in business according to thebilateral aviation agreements.
C. Direct access to and use of
foreign Computer ReservationSystem by Chinese aviationenterprises and agents of foreignaviation enterprises are subject toapproval of the General
Administration of Civil Aviation of
China (CAAC).
(2) None(3) Unbound(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None
(3) Unbound(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 45Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
E. Rail Transport Services
F. Road Transport Services- Freight transportation by rail
(CPC 7112)
- Freight transportation by road in
trucks or cars
(CPC 7123)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign investment not toexceed 49 per cent.For rail transport, within three years
after China's accession, foreign
majority ownership will be permittedand within six years after China'saccession, wholly foreign-ownedsubsidiaries will be permitted.
For road transport, within one year
after China's accession, foreignmajority ownership will bepermitted, within three years afterChina's accession, wholly foreign-owned subsidiaries will be permitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
Horizontal Commitments.
H. Services Auxiliary to all Modes of
Transport
- Storage and warehousing services
(CPC 742)1) Unbound
2) None3) Upon accession, only in the form of
joint ventures, with foreign
investment not to exceed 49 per cent.
Within one year after China'saccession, foreign majorityownership will be permitted.
None  within three years of China's
accession, wholly foreign-owned
subsidiaries will be permitted.
(4) Unbound except as indicated in
Horizontal Commitments.(1) Unbound
(2) None(3) None
(4) Unbound except as indicated in
Horizontal CommitmentsWT/ACC/CHN/49/Add.2
Page 46Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Freight forwarding agency services
(CPC 748 and 749 excluding freightinspection)(1) None
(2) None(3) Upon accession, foreign freight
forwarding agencies which have atleast three consecutive yearsexperience are permitted to set up
freight forwarding agency joint
ventures in China, with foreigninvestment not to exceed 50 per cent;within one year after China'saccession, foreign majority
ownership will be permitted.
Within four years after China'saccession, wholly foreign-ownedsubsidiaries will bepermitted.The minimum registered capital of
the joint venture shall be no less than
US$ 1 million. Within four yearsafter accession, national treatmentwill be accorded in this respect.Operation term of the jointventures shall not exceed
20 years.
After one year operating in China,the joint venture can set up brancheswhen the registered capital of bothsides has been provided. AnotherUS$ 120,000 shall be added to the
original registered capital of the joint
venture for the set-up of each branch.Within two years after China'saccession to the WTO, thisadditional registered capital
requirement will be implemented on
the national treatment basis.(1) None
(2) None(3) NoneWT/ACC/CHN/49/Add.2
Page 47Modes of supply:   (1)  Cross-border supply   (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural pers ons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
A foreign freight forwarding agency
may set up a second joint ventureafter its first joint venture has been inoperation for five years. Within twoyears after China's accession toWTO, this requirement will be
reduced to two years.
(4) Unbound except as indicated in
Horizontal Commitments.(4) Unbound except as indicated in
Horizontal Commitments.WT/ACC/CHN/49/Add.2
Page 48LIST OF ARTICLE II EXEMPTIONS FOR CHINA
Sector or Sub-sector Description of Measures Indicating
its Inconsistency with Article IICountries to Which the
Measures AppliesIntended Duration Conditions Creating the Need for the
Exemption
Maritime Transport
International TransportFreight and PassengersThe parties concerned may, through
bilateral agreement, establish entities toengage in usual business in China either asjoint ventures or wholly-owned subsidiariessubject to the Chinese laws on joint venturesand on foreign capital enterprises for shipsowned or operated by carriers of the partiesconcerned.Unspecified. Unforeseeable. Accordin g to present state of trade
between signatories.
Agreements of cargo sharing. Algeria, Argentina,
Bangladesh, Brazil,Thailand, USA, Zaire.Subject to the
effective durationof the agreementsconcerned.According to presen t state of trade
between signatories.WT/ACC/CHN/49/Add.2
Page 49
ANNEX 1
Reference Paper
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or service
that
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant market for basic telecommunications
services as a result of:
(a) control over essential facilities;  or
(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of anothersupplier and  to access services provided by another supplier, where specific commitments are
undertaken.WT/ACC/CHN/49/Add.2
Page 50
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for its
subsidiaries or other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates that are transparent, reasonable, having regard
to economic feasibility, and sufficiently unbundled so that the supplier need not payfor network components or facilities that it does not require for the service to be
provided;  and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:(a) at any time; or
(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection within
a reasonable period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and are not moreburdensome than necessary for the kind of universal service defined by the Member.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence;  and
(b) the terms and conditions of  individual licences.
The reasons for the denial of a licence will be made known to the applicant upon request.WT/ACC/CHN/49/Add.2
Page 51
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and the procedures used by regulators shall beimpartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner. The current state of allocated frequency bands will be made publicly available, but detailedidentification of frequencies allocated for specific government uses is not required.WT/ACC/CHN/49/Add.2
Page 52
WORLD TRADE S/GBT/W/2/Rev.1
16 January 1997
ORGANIZATION
(97-0173)
Group on Basic Telecommunications
Note by the Chairman
Revision
It has been suggested by a number of delegations  that it might be helpful to produce a brief and
simple note on assumptions applicable to the schedul ing of commitments in basic telecoms.  The
purpose of the attached note is to assist delegati ons in ensuring the transparency of their commitments
and to promote a better understanding of  the meaning of commitments.  This note is not intended to have
or acquire any bind ing legal status.
NOTES FOR SCHEDULING BASIC TELECOM SERVICES COMMITMENTS
1. Unless otherwise noted in the sector column, any basic telecom service listed in the sector
column:
(a) encompasses local, long distance and international services for public and non-public
use;
(b) may be provided on a facilities-basis or by resale;  and(c) may be provided through any means of technology (e.g., cable
9, wireless, satellites).
2. Subsector (g) --private leased circuit services -- involves the ability of service suppliers to sell or
lease any type of network capacity for the supply of services listed in any other basic telecom service
subsector unless otherwise noted in the sector colum n.  This would include capacity via cable, satellite
and wireless network.
3. In view of points 1 and 2 above, it should not be necessary to list cellular or mobile services as a
separate subsector. However,  a number of Memb ers have done so, and a number of offers have
commitments only in these subsectors.  Therefore, in order to avoid extensive changes in schedules, it
would seem appropriate for Members to mainta in separate entries for these subsectors.
                                                     
     9Including all types of cable.WT/ACC/CHN/49/Add.2
Page 53
WORLD TRADE S/GBT/W/3
3 February 1997
ORGANIZATION
(97-0415)
Original:  English
Group on Basic Telecommunications
CHAIRMAN'S NOTE
Market Access Limitations on Spectrum Availability
Many Members have entries in the market access column of their schedules indicating that
commitments are "subject to availability of spectrum/ frequency" or similar wording.  In light of the
physical nature of spectrum and the constraints inhe rent in its use, it is understandable that Members
may have sought to rely on these words to adequa tely protect legitimate spectrum management policies.
There is, however, doubt that words such as "subject to availability of spectrum/frequency" as listed in
the market access column of many Members' schedules achieve that objective.
Spectrum/frequency management is not, per se , a measure which needs to be listed under
Article XVI.  Furthermore under the GATS each Member has the right to exercise spectrum/frequencymanagement, which may affect the number of service suppliers, provided that this is done in accordance
with Article VI and other relevant provisions of  the GATS.  This includes the ability to allocate
frequency bands taking into account existing and future needs.  Also, Members which have made
additional commitment in line w ith the Reference Paper on regulatory principles are bound by its
paragraph 6.
Therefore, words such as "subject to availa bility of spectrum/frequency" are unnecessary and
should be deleted from Members' schedules.WT/ACC/CHN/49/Add.2
Page 54
ANNEX 2
Distribution Services
Distribution trade services are comprised of four main sub-sectors:
− commission agents services;
− wholesaling;
− retailing; and
− franchising.
The principal services rendered in each subsector can be characterized as reselling
merchandise, accompanied by a variety of related subordinated services, including inventory
management; assembly, sorting and grading of bulk lots; breaking bulk lots and redistributing into
smaller lots; delivery services; refrigeration, storage, warehousing and garage services; sales
promotion, marketing and advertising, installation an d after sales services including maintenance and
repair and training services. Distribution services are generally covered by CPC 61, 62, 63 and 8929.
Commission Agents' Services consist of sales on a fee or contract basis by an agent, broker or
auctioneer or other wholesalers of goods/merchandise and related subordinated services.
Wholesaling consist of the sale of goods/merch andise to retailers to industrial, commercial,
institutional, or other professional business users, or to other wholesalers and related subordinated
services.
Retailing services consist of the sale of goods/merchandise for personal or household
consumption either from a fixed location (e.g., store, kiosk, etc.) or away from a fixed location andrelated subordinated services.
Franchising services consist of the sale of the use of a product, trade name or particular
business format system in exchange for fees or ro yalties. Product and trade name franchising involves
the use of a trade name in exchange for fees or royalties and may include an obligation for exclusive
sale of trade name products. Business format franchising involves the use of an entire business
concept in exchange for fees and royalties, and may include the use of a trade name, business plan,and training materials and related subordinated services.WT/ACC/CHN/49/Add.2
Page 55
ANNEX 3
Insurance: Definition of "Master Policy"
Master policy is the policy that provides blanket coverage for the same legal person's property
and liabilities located in different places. Master policy may only be issued by the business
department of an insurer's head office or that of its authorized province-level branch offices. Other
branches are not allowed to issue master policy.
Master policy business with the state key construction projects as its subject-matter insured.
If investors on the state key construction projects (i.e., projects that are so listed and annually
announced by the State Development and Planning Commission) meet either of the followingrequirements, they may purchase master policy from insurers that are located in the same place as the
investors' legal persons do.
The investment on the subject-matter insured is all from China (including the reinvestment
from the foreign-invested enterprises in China), a nd the sum of investment of the investor accounts
for over 15 per cent of the total investment.
The investment is partially from abroad, and partially from China (including the reinvestment
from the foreign-invested enterprises in China), a nd the sum of investment of the Chinese investor
accounts for over 15 per cent for the total domestic investment.
For those projects that draw investment all from abroad, every insurer may provide coverage
in the form of master policies.
Master policy covering different subjects-matter insured of the same legal person.  For those
subjects-matter insured located in different places and owned by the same legal person (excluding
financial, railway, and post and telecommunications industries and enterprises), master policy may be
issued on the basis of either of the following conditions.
For the sake of payment of premium tax, insurance companies incorporated where the legal
person or accounting unit of the insurance applicant is located are allowed to issue master policy.
If over 50 per cent of insurance amount of the subject-matter insured is from a larger or
medium sized city, then insurers in that city are allowed to issue master policy, no matter whether the
insurance applicant's legal person or accounting unit is located in the city.
Motor insurance, credit insurance, employer liabilities insurance, statutory insurance, and
other insurance business excluded by the CIRC can not be underwritten or co-insured by insurers
located other than where the subject-insured are located, or covered under a master policy.
__________