RESTRICTEDORGANIZACIÓN MUNDIAL
DEL COMERCIOWT/ACC/SPEC/CHN/1
14 de junio de 2000
(00-2364)
Grupo de Trabajo sobre la Adhesión de China
ANTEPROYECTO REVISADO DE INFORME DEL
GRUPO DE TRABAJO SOBRE LA ADHESIÓN
DE CHINA A LA OMC1
El siguiente anteproyecto revisado de informe del Grupo de Trabajo sobre la Adhesión de
China se ha preparado para información de los miembros del Grupo de Trabajo y de China, así comopara ayudar a consignar la labor realizada hasta la fecha.  El anteproyecto revisado procura reflejar losdebates multilaterales que han tenido lugar en el Grupo de Trabajo y se basa en el texto del anterioranteproyecto de informe de 28 de mayo de 1997, en el proyecto de Protocolo de 28 de mayo de 1997y en la versión actualizada del Memorándum sobre el régimen comercial de China, distribuidael 21 de marzo de 2000 con la signatura WT/ACC/CHN/17.
Para preparar este anteproyecto revisado, se ha tenido que adaptar a veces parte del texto que
figuraba en negrita en el proyecto de informe de 28 de mayo de 1997 a fin de desarrollar la relaciónde los debates y los párrafos en los que se establecen compromisos.  Se incluyen referencias al textoen negrita del proyecto de informe en todos los casos en que se ha adaptado el texto y todo textoadoptado figura en cursiva.
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1 En inglés solamente.WT/ACC/SPEC/CHN/1
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REVISED OUTLINE OF THE DRAFT REPORT OF THE WORKING PARTY
ON THE ACCESSION OF CHINA TO THE WTO
I. INTRODUCTION
1. At its meeting on 4 March 1987, the Council established a Working Party to examine the
request of the Government of the People's Republic of China (hereinafter referred to as "China")(L/6017, submitted on 10 July 1986) for resumption of its status as a GATT contracting party, and tosubmit to the Council recommendations which may include a draft Protocol on the Status of China.In a communication dated 7 December 1995, the Government of China applied for accession to theAgreement Establishing the World Trade Organization (hereinafter referred to as the "WTOAgreement") pursuant to Article XII of the WTO Agreement.  Following China's application and
pursuant to the decision of the General Council on 31 January 1995, the existing Working Party on
China's Status as a GATT 1947 Contracting Party was transformed into a WTO Accession WorkingParty, effective from 7 December 1995.  The terms of reference and the membership of the WorkingParty are reproduced in do cument WT/ACC/CHN/2/Rev.6.
2. The Working Party on China's Status as a Contracting Party met on 20 occasions between
1987 and 1995 under the Chairmanship of H.E. Mr. Pierre-Louis Girard (Switzerland).  The WorkingParty on China's accession to the WTO Agreement met on _________________ and
_________________ under the same Chairman.
DOCUMENTATION PROVIDED
3. The Working Party had before it, to serve as a basis for its discussion, a Memorandum on
China's Foreign Trade Regime (L/6125) and questions posed by members of the Working Party on theforeign trade regime of China, together with replies of the Chinese authorities thereto.  In addition, theGovernment of China made available to the Working Party a substantial amount of documentation.,which is listed in document WT/ACC/CHN/…WT/ACC/SPEC/CHN/1
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INTRODUCTORY STATEMENTS
4. In statements to the Working Party, the representative of China emphasized that the
resumption of China's status as a contracting party and accession to the WTO were priorities for the
government and critically important elements in the process of economic reform towards a more
market-oriented economy and opening to the outside world.  He noted in this connection that Chinahad been a full participant in the Uruguay Round and had signed the Final Act accepting the results ofthese negotiations.
5. The representative of China noted that China had a territory of 9.6 million square kilometres
and, at the end of 1998 a population of 1.25 billion.  Since 1979, China had been progressivelyreforming its economic system, with the objective of  establishing and improving the socialist market
economy.  The reform package introduced in 1994 covering the banking, finance, taxation,
investment, foreign exchange and foreign trade sectors, had brought about major breakthroughs in
China's socialist market economy.  State-owned ente rprises had been reformed by a clear definition of
property rights and responsibilities, a separation of government from enterprise, and scientificmanagement.  A modern enterprise system had been created for the state-owned sector, and the latterwas gradually getting on the track of growth through independent operation, responsible for its ownprofits and losses.  A nation-wide unified and open  market system had been developed.  An improved
macroeconomic regulatory system used indirect means and market forces to play a central role ineconomic management and the allocation of resources.  A new tax and financial system was
functioning effectively.  Financial policy had been separated from commercial operations of the
central bank, which now focussed on financial regulation and supervision.   The exchange rate of theChinese currency Renminbi had been unified and remained stable.  The Renminbi had been madeconvertible on current account.  Further liberalization of pricing policy had resulted in the majority ofconsumer and producer products being subject to ma rket prices.  The market now played a much more
significant role in boosting supply and meeting demand.
6. He further noted that as a result, in 1999, the Gross Domestic Product (GDP) of China totaled
RMB 8.2054 trillion yuan (approximately US$990 billion).  In 1998, the net per capita income for
rural residents was RMB 2,160 yuan (approximately US$260), and the per capita dispensable income
for urban dwellers was RMB 5,425 yuan (approximately US$655).  In recent years, foreign trade hadgrown substantially.  In 1999, total imports and exports of goods reached US$360.65 billion, of whichexports stood at US$ 194.93 billion, and imports, $165.72 billion. Exports from China in 1998accounted for 3.4% of the world's total.WT/ACC/SPEC/CHN/1
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7. The representative of China noted that the Government of China had always considered that
rejoining the multilateral trading system would offer great benefits, placing China's trade andeconomic relations on a stable and predictable footing, subject to multilaterally agreed rules anddisciplines, as well as improving market access for China and its trading partners.  It had always been
the policy of China's Government that reform and market-opening should proceed simultaneously
with the development of the legal system.  High priority had been given to economic legislation toguide and safeguard the development of the socialist market economy.
8. The representative of China stated that al though China's was clearly a special case, China
expected to avail itself of the derogations and special provisions made available to developing countrymembers of the WTO.  In response, some members of the Working Party indicated that because of thesignificant size, rapid growth and transitional nature of the Chinese economy, China should notautomatically receive all the benefits accorded to original developing country Members of the WTO.
In particular, some members of the Working Party considered that certain transitional arrangements
available to developing country WTO Members should not be granted to China.  Some members ofthe Working Party considered that notwithstanding the fact that many of the features of China'seconomy were at present those of a developing  country economy, China should, as a minimum,
undertake to bring certain measures into conformity on a more expedited basis than would otherwisebe required of an original developing country Member of the WTO.
9. Many members of the Working Party expressed their interest in carrying out bilateral market
access negotiations with China with respect to industrial and agricultural products, and initial
commitments in services.  The representative of China stated that China was keen to undertake suchnegotiations with interested Working Party members.
10. Some members of the Working Party stated that in addition to undertaking market access
negotiations in goods and services, close attention should also be paid to China's multilateralcommitments, in particular China's future obligations under the Multilateral Agreements in Trade inGoods and the General Agreement on Trade in Services (GATS).  This was of vital importance toensure that China was able to take full benefit of the WTO Membership as quickly as possible, as well
as to ensure that the value of any market access conditions undertaken was not adversely affected by
inconsistent measures such as some types of non-tariff measures.
11. Some members of the Working Party expressed concern over discrepancies in statistical
information supplied by the government of China on trade volume/value.  Members and ChinaWT/ACC/SPEC/CHN/1
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pursued this issue separately in an Informal Group of Experts on Export Statistics.  The Group of
Experts submitted its report to the Chairman of the Working Party on 30 June 1994 (document …).
12. The Working Party reviewed the foreign trade regime of China.  The discussions and
commitments resulting therefrom are contained in paragraphs … below and in the draft Protocol of
Accession.
II. ECONOMIC POLICIES
Non-discrimination
13. Some members expressed concern regarding the application of the principle of non-
discrimination in relation to foreign individuals and enterprises (whether wholly or partly foreign
funded).  Those members stated that China should enter a commitment to accord non-discriminatory
treatment to all foreign individuals and enterprises and foreign-funded enterprises in respect of theprocurement of inputs and goods and services necessary for production of goods and the conditionsunder which their goods were produced, marketed or sold, in the domestic market and for export.  Inaddition, China should also enter a commitment to guarantee non-discriminatory treatment in respect
of the prices and availability of goods and services supplied by national and sub-national authoritiesand public or state enterprises, in areas includ ing transportation, energy, basic telecommunications,
other utilities and factors of production.
14. Some members of the Working Party also raised concerns over China's practice of
conditioning or imposing restrictions upon participation in the Chinese economy based upon thenationality of the entity concerned.  Those members in particular raised concerns over such practicesin relation to the pricing and procurement of goods and services, and the distribution of import andexport licences.  Members of the Working Party requested that China enter into a commitment not tocondition such practices on the nationality of the entity concerned.
15. In response, the representative of China emphas ized the importance of  the commitments that
the government was undertaking on non-discrimination. The representative of China noted, however,
that any commitment to provide non-discriminator y treatment to Chinese enterprises and foreign
enterprises and individuals in China would be subject to other provisions of the Protocol and, inparticular, would not prejudice China's rights under the General Agreement on Trade in ServicesWT/ACC/SPEC/CHN/1
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(GATS), China's GATS schedule or commitments undertaken in relation to trade-related investment
measures.  The Working Party took note of this statement .
16.  The representative of China further confirmed that China would provide the same treatment
to Chinese enterprises and foreign enterprises and individuals in China.  China would eliminate dual
pricing practices as well as differences in treatment accorded to goods which are produced for sale inChina and those produced for export.  The Working Party  took note of these commitments.
[The preceding 2 paragraphs were developed from  the following paragraph of the Outline of the
Draft Report of the Working Party  on China:
xx. China emphasized the importance of the commitments that the government was
undertaking on non-discrimination.  China confirmed that it would be providing the same
treatment to Chinese enterprises and foreign ent erprises and individuals in China in respect of
the requirements of this section of the Protocol.  This would involve elimination of dual pricingpractices as well as differences in treatment accorded to goods which are produced for sale inChina and those produced for export.  China noted, however, that these requirements aresubject to other provisions of the Protocol and,  in particular, do not prejudice China's rights
under the General Agreement on Trade in Se rvices (GATS), China's GATS schedule or
commitments undertaken in relation to trade-related investment measures.  The Working Partytook note of this statement.]
Monetary and Fiscal Policy
[to be completed]
Foreign Exchange and Payments
17. Some members of the Working Party raised concerns about China's use of foreign exchange
controls to regulate the level and composition of trade in goods and services.  In response, the
representative of China stated that its system of foreign exchange controls was undergoing rapid
change.  Significant moves had been taken to reform, rationalize and liberalize the foreign exchangemarket.  The practice of multiple exchange rates in swap centres had been abolished.  China wasmoving towards a unified foreign exchange market and had removed many of the restrictions on theWT/ACC/SPEC/CHN/1
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use of foreign exchange.  Some members of the Working Party stated that China should undertake
appropriate commitments on its reform of foreign exchange controls.
18. In response, the representative of China stated that China was a member of the International
Monetary Fund (IMF). The purpose of China's foreign exchange reform was to gradually reduce
administrative intervention and increase the role of market forces.  From 1979, a forex retentionsystem was applied in China, although foreign exchange swap was gradually developed.  In early1994, official RMB exchange rates were unified with the market rates. The banking exchange systemwas adopted and a nation-wide unified inter-bank forex market was established, with conditionalconvertibility of the Renminbi on current account.  Since 1996, foreign investment enterprises (FIEs)
were also permitted into the banking exchange sy stem, and the remaining exchange restrictions on
current account were eliminated. On 1 December 1996, China had formally accepted the obligationsof Article VIII, Sections 2, 3, and 4 of the IMF's Articles of Agreement, removing exchange
restrictions on current account transactions.  Accordingly, since then the Renminbi had been fully
convertible on current account.
19. The State Administration of Foreign Exchange (SAFE) was affiliated with the People's Bank
of China (PBC), and was the administrative organ empowered to regulate foreign exchange.  Its mainfunctions were to monitor and advise on balance-of-payments, foreign exchange matters.  SAFE wasalso required to draft appropriate regulations and monitor compliance.  He further noted that domesticand foreign banks and financial institutions could engage in foreign exchange business, with the
approval of the PBC.
20. In response to requests from members of the Working Party for further information he further
added that for foreign exchange payments under current account, domestic entities (including FIEs)could purchase forex at market exchange rates from designated banks or debit their forex accountsdirectly upon presentation of valid documents.  For payments such as pre-payment, commission andetc., exceeding the proportion or limit, the entities could also purchase forex from the banks uponmeeting the bona fide test administered by SAFE. Foreign exchange for personal use by individualscould be purchased directly from the banks upon presentation of valid documents (within a specified
limit).  For amounts exceeding the limit, individuals able to prove their need for additional forex
could purchase it from the banks.  He also noted that current account forex receipts owned bydomestic firms should be repatriated promptly into China and be sold to the designated banks at themarket rates (unless the firm was permitted to hold a domestic forex account).  A clearance system forforex payment (imports) and forex receipt (exports) had also been adopted.WT/ACC/SPEC/CHN/1
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21. Concerning the exchange rate regime in particular, the representative of China noted that
since the unification of exchange rates on 1 January 1994, China had adopted a single and managedfloating exchange rate regime based on supply and demand.  PBC published the reference rates ofRMB against the US dollar, the HK dollar and Japanese yen based on the weighted average prices of
foreign exchange transactions during the previous day's trading. The buying and selling rates of RMB
against the US dollar on the inter-bank forex market could fluctuate within 0.3% of the reference rate.
For the HK dollar and Japanese yen, the permitted range was 1%.   Designated foreign exchangebanks could deal with their clients at an agreed rate.  Under such contracts the exchange rate of theUS dollar was required to be within 0.15% of the reference rate, whereas for the HK dollar andJapanese yen, the permitted range was 1%.  Permitted rates for other foreign currencies were based onthe rates of RMB against the US dollar and cross-exchange rates of other foreign currency oninternational market. The buying and selling rate could not exceed 0.5% of the middle rate.
22. The representative of China further noted that since 1 January 1994, designated forex banks
had become major participants in foreign exchange transactions.  On 1 April 1994, a ForeignExchange Trading System was set up in Shanghai and branches were opened in several cities.  ThatForeign Exchange Trading System had adopted a system of membership, respective quotation,concentrated trading and forex market settlement.  Designated forex banks dealt on the inter-bankmarket according to the working position limit on ba nking exchange stipulated by SAFE and covered
the position on the market. Depending on its macro economic objectives, the PBC could intervene inthe forex open market in order to regulate market supply and demand and maintain the stability of the
RMB exchange rate.
23. The representative of China noted that since 1 December 1998, forex dealing of the FIEs was
carried out through the banking exchange system. He further noted that to encourage foreign directinvestment, China had granted national treatment to foreign investment enterprises in exchangeadministration.  Accordingly, FIEs were allowed to open and hold forex settlement accounts to retainreceipts under the current account, up to a maximu m amount stipulated by SAFE.  Receipts in excess
of the maximum amount were required to be sold to designated forex banks.  No restrictions weremaintained on the payment and transfer of current transactions by FIEs, and FIEs could purchase
forex from designated forex banks or debit their forex accounts for any payment under current
transactions, upon the presentation of valid documents to the designated forex banks or SAFE for thebona fide test.  FIEs could also open forex accounts to hold foreign-invested capital, and they couldsell from them upon the approval of SAFE.  FIEs could also borrow forex directly from domestic andWT/ACC/SPEC/CHN/1
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overseas banks, but were required to register th e loan and repayments with SAFE afterwards.  FIEs
could remit foreign exchange directly from their forex accounts after liquidation according to law.
Balance-of-Payments Measures
24. Some members of the Working Party expressed concern that China should not make
indiscriminate use of balance-of-payments measur es pursuant to Article XII or XVIII:B of the GATT
1994 as justification for the imposition of quantitative restrictions or other, price-based measures onimports.  Those members stated that the provisions  of Article XII or XVIII:B of the GATT 1994 and
the Understanding on the Balance-of-Payments Provisions of the GATT 1994 should be strictlyrespected by China.  Those members also stated that measures taken for balance-of-payments reasonsshould have the least trade disruptive effect possible and should be limited to temporary importsurcharges, import deposit requirements or other equivalent price-based trade measures, and those
measures should not be used to provide import protection for specific sectors, industries or products.
25. Those members further stated that any such measures should be notified pursuant to the
Understanding on the Balance-of-Payments Provisions of the GATT 1994 to the General Council notlater than the imposition of the measures, together with a time schedule for their elimination and a
programme of external and domestic policy measures to be used to restore balance-of-paymentsequilibrium.  Those members also stated that following deposit of such a notification, the Committeeon Balance-of-Payments should meet to examine the notification.  It was noted that paragraph 4 of the
Understanding on the Balance-of-Payments Provisions of the GATT 1994 would be available to
China in the case of "essential products".
26. In response, the representative of China stated that China considered that it should have the
right to make full use of Article XVIII:B to protect, as necessary, its balance-of-payments situation.Some members of the Working Party considered that China should undertake specific commitmentsin connection with the invocation of Article XVIII:B.  Those members also stated that the Committeeon Balance-of-Payments should review the operation of any balance-of-payments measures taken byChina on an annual basis, if so requested by China or a WTO Member.
Investment Regime
[to be completed]WT/ACC/SPEC/CHN/1
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State Ownership and Privatization
[to be completed]
Pricing policies
27. Some members of the Working Party noted that China had made extensive use of price
controls, for example in the agricultural sector.  Those members requested that China undertakespecific commitments concerning its system of state pricing.  In particular, those members stated thatChina should allow prices for traded goods and services in every sector to be determined by marketforces, and multi-tier pricing practices for such goods and services should be eliminated.  Membersnoted, however, that the goods and services listed in Annex 4 to China's Protocol were expected to
remain subject to price controls, consistent with the WTO Agreement, in particular Article III of the
GATT 1994 and Annex 2, paragraphs 3 and 4 of the Agreement on Agriculture.  Those members
noted that except in exceptional circumstances, a nd subject to notification to the WTO Secretariat,
price controls should  not be extended to goods or services beyond those listed in Annex 4, and Chinashould make its best efforts to reduce and eliminate those controls.  They also asked that Chinapublish in the appropriate official journal the list of goods and services subject to state pricing andchanges thereto.
28. China confirmed that it would publish in the official journal the list of goods and
services subject to state pricing and changes thereto, together with [cost and] price-setting
mechanisms and policies.  The Working Party took note of these commitments.
29. The representative of China noted that China currently applied a mechanism of market-based
pricing under macro-economic adjustment.  He noted that national treatment was applied in the areasof government pricing for all imported goods.  There were presently three types of prices: governmentprice, government guidance price and market-regulated  price.  The Government price was set by price
administration authorities and could not be changed without the approval by these authorities.Products and services subject to Government pricing were those having a direct bearing on the
national economy and the basic needs of the people's livelihood, including those products that were
scarce in China.
30. He further added that the Government guidance price mechanism was a more flexible form of
pricing.  The price administration authorities stipulated either a basic price or floating ranges.WT/ACC/SPEC/CHN/1
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Enterprises could, within the limits of the guidance and taking into account the market situation, make
their own decisions on prices.  With market-regulated prices, enterprises were free to fix prices inaccordance with supply and demand to the extent permitted by generally applicable laws, regulationsand policies concerning prices.
31. In formulating Government prices and Govern ment guidance prices, the following criteria
were taken into account: normal production costs, supply and demand situation, relevant governmentpolicies and prices of related products. When fixing prices of consumer goods, consideration wasgiven to the limit of consumers' purchasing power.  He  noted that due to continued reform of China's
price system, the share of Government prices had dropped substantially and that of market-regulated
prices had increased;  of social retailing products, the share of Government prices was about 4%, thatof Government guidance prices 1.2%, and that of  market-regulated prices 94.7%.  For agricultural
products, the share of Government prices was 9.1%, Government guidance prices 7.1%, and market-
regulated 83.3%.  For production inputs, the sh are of government prices was 9.6%, that of
government guidance prices 4.4%, and market-regulated prices 86%.  The share of directlygovernment-controlled prices had been much reduced such that it was even smaller than that in major
Western market economies.  The Chinese Government considered that China's price system wasbecoming increasingly rationalized, creating a relatively fair marketplace for all enterprises tocompete on an equal footing.
32. The representative of China recalled that Annex 4 of the Draft Protocol of Accession contains
a comprehensive listing of all products and services presently subject to Government guidance pricing
and Government pricing.
33. China confirmed that price controls shall not be used for purposes of affording
protection to domestic industries or services providers.  The Working Party took note of this
commitment.
Competition Policy
[to be completed]WT/ACC/SPEC/CHN/1
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III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
Powers of Executive, Legislative and Judicial Branches of Government
34. The representative of China informed member s of the Working Party that in accordance with
the Constitution of the PRC, the Standing Committ ee of the National People's Congress had the power
to annul those regulations and administrative decrees issued by both central and local government thatcontravened the Constitution and laws. The State Council had the power to annul those inappropriateregulations and administrative decrees issued by both central and local government. The ChineseGovernment considered that these features of the Chinese legal system would ensure an effective anduniform implementation of the obligations resulting from China's accession to the WTO Agreement.
35. Members of the Working Party stated that it should be made clear that China would apply the
requirements of the WTO Agreement and any additio nal obligations created by China's Protocol of
Accession to its entire customs territory, including border trade regions, minority autonomous areas,Special Economic Zones, open coastal cities, economic and technical development zones and otherspecial economic areas.
36. Members of the Working Party also stated that China should ensure that the provisions of the
WTO Agreement and any additional obligations created by China's Protocol of Accession wereapplied uniformly throughout its entire customs territory, including at the sub-national level.
Members of the Working Party also noted that China should administer in a uniform, impartial and
reasonable manner all its laws, regulations and other measures pertaining to or affecting trade ingoods, services or TRIPS or the control of foreign exchange. In this connection, members of theWorking Party requested that China establish a mechanism under which individuals and enterprisescould bring to the attention of the national authorities cases of non-uniform application of the traderegime.  Members of the Working Party also noted that China's laws, regulations and other measuresof government entities at the sub-national level would be required to conform to the obligationsundertaken in China's Protocol of Accession and the WTO Agreement.
Judicial Review
37. Some members of the Working Party stated that China should designate independent
tribunals, contact points, and procedures for the prompt review of all administrative actions relating tothe implementation of laws, regulations, judicial decisions and administrative rulings of generalWT/ACC/SPEC/CHN/1
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application referred to in Article X:1 of the GATT 1994, including administrative actions relating to
import or export licences, non-tariff measures and any other measures within the scope of the WTOAgreement.  Those members stated that notwithstanding Article X:3(c) of the GATT 1994, thetribunals should be independent of the agencies entrusted with administrative enforcement of
provisions contained in the WTO Agreement.
38. Those members also stated that the administrative actions subject to review should include
measures relating to the availability and distribution of import and export licenses, permits or quotas;application of measures for safeguard or balance-of-payments purposes or to protect against unfairtrade;  and any other measures within the scope of the WTO Agreement, in particular any reviews
required to be made available under the relevant provisions of the TRIPS Agreement and the GATS.
Such review procedures should include the opportunity for appeal, without penalty, by individuals orenterprises affected by any administrative action subjec t to review.  If an initial right of appeal was to
an administrative body, there should be an opportunity for a further appeal to a judicial body.  Anydecision by any appellate body and the reasons therefore would be communicated in writing to theappellant, together with notification of any right to further appeal.
39. Some members of the Working Party expressed concern about the functioning of China's
institutions and procedures for the prompt review of disputes over trade-related matters in China.
Those members requested that the existing system be improved to provide speedier and more
predictable access to those institutions and procedures.  Members of the Working Party also requestedthat the types of measures subject to independent judicial or administrative review should be extendedfrom those currently covered by Chinese domestic procedures.  In particular they requested thatmeasures related to services trade and intellectual property and services be subject to such reviewprocesses.
40. China confirmed that it would revise its patent and trademark laws so that, upon
accession, all of its laws and regulations will be consistent with protocol requirements on
procedures for judicial review of administrative actions.  The Working Party took note of this
commitment.
41. China confirmed that measures subject to review would include measures affecting in any
way the regulation, control, supply or promotion of transportation and transportation-relatedservices, insurance and insurance-related services, banking and other financial services,telecommunications services, distribution services , entertainment services, information processing
services, construction and maintenance services, professional services, and retail sales services.WT/ACC/SPEC/CHN/1
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China undertook to ensure that all such measures  would be subject to review.  The Working Party
took note of that commitment.
[The preceding paragraph was developed from the following paragraph of the Outline of the
Draft Report of the Working Party:
xx. China confirmed that measures subject to review would include measures affecting in
any way the regulation, control, supply or promotion of transportation and transportation-related services, insurance and insurance-related services, banking and other financial services,
telecommunications services, distribution services, entertainment services, informationprocessing services, construction and maintenance services, professional services, and retailsales services.  China undertook to ensure that all such measures would be subject to review.]
Authority of Sub-Central Governments
42. In response to questions, the representative of China recalled that the central government had
exclusive constitutional power to overturn all measures taken at sub-national level that wereinconsistent with China's international obligations.
43. Several members of the Working Party raised concerns about the continued presence of
multiple and overlapping trade instruments used by different levels of government within China.Those members considered that situation resulted in a lessening of the security and predictability ofaccess to the Chinese market.  In addition, some members expressed concerns about the limitedcontrol exercised by the central government over trade measures introduced at the sub-national level.
44. The representative of China indicated that  China intended to apply the WTO Agreement to
the fullest extent not inconsistent with mandatory legislation in existence on the date of entry into
force of the Protocol.  Members raised concerns as to what China might consider to be existing
"mandatory legislation".  China was requested to submit an illustrative list of such legislation.  Some
members of the Working Party stated that given the constitutional power of China's centralgovernment to ensure compliance with China's WTO obligations by both its national and sub-nationalauthorities, and to override inconsistent measures at the sub-national level, very few, if any, Chineselaws could meet the criteria of existing mandatory legislation.  Some members of the  Working Partynoted that the GATT 1994, unlike the GATT 1947, did not permit the possibility of exemptingexisting mandatory legislation.WT/ACC/SPEC/CHN/1
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45. Some members raised concerns about the precise nature and scope of China's customs
territory and how China's customs territory inter-related with the separate customs territories of HongKong, China, Macau, China and the separate Customs Territory of Taiwan, Penghu, Kinmen andMatsu ("Chinese Taipei").  Members of the Working Party and China agreed that China would, as a
WTO Member, in accordance with GATT Article XXIV:1, maintain standard WTO relations with
those other separate customs territories.
46. Some members of the Working Party raised concerns in relation to the uniformity of
administration of the foreign trade and economic regi me within China.  In particular, those members
raised concerns about measures taken by sub-national authorities.  In response, the representative ofChina emphasized that the central government had full constitutional authority to ensure compliancewith WTO obligations by both national and sub-national governmental authorities in China.  Somemembers requested that an appropriate commitment be undertaken in this regard by China.
47. Some members of the Working Party raised concerns about the limited ability of China's
central government to be sufficiently informed about non-uniform practices and to take necessaryenforcement actions.  Those members stated that China should establish a mechanism by which anyconcerned person could bring to the attention of the central government cases of non-uniformapplication of the trade regime.
IV. POLICIES AFFECTING TRADE IN GOODS
Trading Rights
48. Some members noted that few enterprises within China had full freedom to engage in foreign
trade, i.e., the right to import and export goods without restriction.  Those members noted that inmany cases, enterprises wishing to import or export goods had to conduct such trade through a state-trading enterprise.  Those members stated that China should progressively liberalize the right to trade,so that, within three years of accession to the WTO all enterprises in China would have the right toimport and export as well as to trade in all goods throughout the customs territory of China.  Such a
commitment would be without prejudice to China's right to regulate trade in a manner consistent with
the WTO Agreement and would not include those goods listed in Annex 2(a)1 and 2(a)2 of China'sProtocol of Accession,  which would continue to be subject to state-trading in accordance with that
Protocol.WT/ACC/SPEC/CHN/1
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49. Those members also stated that enterprises enjoying the right to trade should also be accorded
national treatment under Article III of GATT 1994, especially paragraph 4 thereof, in respect ofinternal sale, offering for sale, purchase, transportation, distribution or use, including their directaccess to end-users. Those members also stated that all foreign individuals and enterprises, including
those not invested or registered in China, should be accorded treatment no less favourable than that
accorded to enterprises in China with respect to the right to trade.  In respect of goods that would
remain subject to designated trading listed in Annex 2b of China's Protocol of Accession, China
should phase out limitations on the grant of trading rights pursuant to the schedule in that Annex.They also stated that China should complete all necessary legislative procedures to implement theseprovisions during a transition period.
50. Some members of the Working Party expressed concern that China's restrictions on the right
of enterprises to engage in trade operated as significant limitations on secure and predictable access to
the Chinese market.  Members sought progressive elimination of all such restrictions and objective
and generally applicable criteria for the granting of trading rights pending the elimination of all suchrestrictions.  China noted that it was in the process of liberalizing trading rights but that certainproducts would remain the exclusive domain of designated foreign trade corporations.  China alsonoted that criteria for the granting of trading rights were set out in China's Foreign Trade Law.  Somemembers of the Working Party considered that Chin a should enter a specific commitment in relation
to trading rights.
A. IMPORT REGULATION
Ordinary customs duties
51. Members of the Working Party noted the substantial unilateral tariff reductions made in many
sectors by China in recent years.  They also acknowledged the increased breadth of bindings andreduction in average tariff levels.  Some members expressed concern over continued high levels andthe lack of proposed tariff bindings in some sectors.
52. The representative of China provided members of the Working Party with a copy of the
Customs Tariff and related laws and regulations.  He noted that the Customs Tariff of China was acharge imposed on imported goods. The purpose of levying tariff was twofold:  (a) to regulate importsso as to promote and support domestic production, and (b) to serve as an important source of revenuefor the treasury of the Central Government.  China's tariff policy was to promote economic reform andWT/ACC/SPEC/CHN/1
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opening of the economy.  The basic principles for establishing duty rates were as follows.  Duty-free
or low duty rates were applied to imported goods which were needed for the national economy andthe people's livelihood but which were not produced sufficiently domestically.  Import duty rates onraw materials were generally lower than those on semi-manufactured or manufactured products.  For
parts or components of machinery, equipment and instruments which were not produced domestically,
or at a sufficiently high standard, the import duty was lower than the duty on complete products.Higher duty rates were applied to products which were produced domestically or which were
considered non-essential for the national economy and the people's livelihood.   A higher duty wasapplied to imported products, the equivalent of which were produced domestically and the localmanufacturer of which needed protection.
53. The representative of China noted that China had adopted the Harmonized Commodity
Description and Coding System (HS) as from 1 January 1992 and joined the International Convention
on the Harmonized Commodity Description and Coding System in the same year.  There were 21
sections, 97 chapters and 7066 tariff headings in the Customs Import and Export Tariff of the PRC.Tariff rates were fixed by the State Council. Partial adjustment to the duty rates was subject todeliberation and final decision by the State Tariff Commission.  The current simple average ofChina's import duties was 14.44%. Among the 7066 tariff headings, tariff rates for 709 headings werebelow 5%, those for 2015 were 5%-9%, those for 1356 were 10%-15% and those for 2896 were above15%.  Information on tariff rates for specific products and import statistical data for recent years wasprovided to the Working Party.
54. He also noted that there were two columns of import duty rates: general rates and preferential
rates. The preferential rates applied to imports or iginating in countries and regions with which China
had concluded reciprocal tariff agreements, whereas the general rates applied to imports from othersources.
55. China undertook bilateral market access negotiations on goods with members of the Working
Party.  The results of those negotiations are contained in the Schedule of Concessions andCommitments on Goods and forms Annex 10 to Ch ina's Draft Protocol of Accession to the WTO.WT/ACC/SPEC/CHN/1
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Other duties and charges levied on imports but not on domestic production
56. Some members of the Working Party stated that China should ensure that all other duties and
charges applied to imported products were applied in conformity with the requirements of the WTO
Agreement, in particular Article VIII of the GATT 1994.
Rules of Origin
57. The representative of China noted that when an imported product was processed and
manufactured in several countries, the country of origin of the product was determined to be the lastcountry in which the product underwent substantial transformation. Substantial transformation wasunderstood to mean processing which results in a change of the four-digit level tariff classification oran added value (including all cost-related expenditures) exceeding 30% of the total value. These rules
of origin were applicable to all imported products. The rules of origin applied for statistical purposes
were the same.  However, for statistical purposes, the Customs also records countries of consumptionand trading countries.
Fees and charges for services rendered
58. Some members of the Working Party expressed concern over an apparent lack of uniformity
of customs fees and charges administered by national and sub-national authorities.  Members of the
Working Party noted that as a condition of accession to the WTO China should undertake a
commitment to ensure conformity of such fees and charges with Articles II and VIII of theGATT 1994.
Application of internal taxes to imports
59. Some members of the Working Party expressed concern that some internal taxes applied to
imports, including a Value-added Tax (VAT) were not administered in conformity with therequirements of the GATT 1994, particularly Article III.  Those members of the Working Party noted
that China appeared to permit the application of di scriminatory internal taxes and charges to imported
goods and services, including taxes and charges applied by sub-national authorities.  Those membersrequested that China undertake a commitment to ensure  that all such internal taxes and charges would
be in conformity with the requirements of the GATT 1994.WT/ACC/SPEC/CHN/1
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60. In response, the representative of China noted that there were three major types of taxes
levied on products and services:  (a.) VAT levied on goods and services for processing, maintenanceand assembling;  (b.) the Consumption Tax on some selected consumer products;  (c.) the BusinessTax on providing services, transferring intangible assets and selling real estate.   Both the VAT and
the Consumption Tax were applicable to entities importing goods. VAT and the Consumption Tax on
imported goods were collected by the Customs at the point of entry.  He noted that VAT wasreimbursed once goods were exported.  Exported g oods were exempted from the Consumption Tax.
61. He further noted that the State Council determined all policies concerning the levying of VAT
and the Consumption Tax, adjustment of tax types and tax rates (tax value), as well as the taxexemption of VAT, the Consumption Tax and the Business Tax.  The laws and regulations wereinterpreted and implemented by the Ministry of Finance and the State Administration of Taxation.VAT and the Consumption Tax were levied and admi nistered by the State competent departments of
taxation, while the Business Tax was collected and administered by the local competent departments
of taxation.
Tariff rate quotas, tariff exemptions
62. Some members of the Working Party expressed concern over the lack of transparency,
uniformity and security of China's administration of its tariff rate quota and tariff exemptions regime.Those members suggested that China enter a commitment in relation to those matters.
Quantitative import restrictions, including prohibitions and quotas
63. In response to requests for information from members of the Working Party, the
representative of China noted that China prohibited the importation of certain commodities, includingvarious types of weapons, ammunition and explosives, narcotic drugs, poisons, obscene materials, andfoodstuffs, medicines, animals and plants were inconsistent with China's standards on food,medicines, animals and plants.
64. Members of the Working Party noted that there were a large number of overlapping non-tariff
measures in existence in China, both at the national and sub-national levels, which appeared to have atrade restrictive or trade distorting effect.  Those members requested that China undertake acommitment to eliminate and not to introduce, re-introduce or apply non-tariff measures other thanWT/ACC/SPEC/CHN/1
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those specifically identified and subject to phased elimination in Annex 3 to China's Protocol of
Accession.
65. Some members of the Working Party also raised concerns that many non-tariff measures were
imposed by sub-national authorities in China on a non-transparent, discretionary and discriminatory
basis.  Those members of the Working Party asked that China undertake a commitment to ensure thatnon-tariff measures would only be imposed by the central government or by sub-national authoritieswith clear authorization from the central government.  Authorities lacking  authorization from thenational authorities, should not be implemented or enforced.
66. Some members of the Working Party noted that China had provided a list of non-tariff
measures in respect of which China was prepared to commence phased elimination.  That list wasentered in Annex 3 of China's Protocol of Accession.  Those members stated that China should
eliminate the measures listed in accordance with the schedule provided in Annex 3, during the periods
specified in Annex 3.  Those members also noted that the protection afforded by the measures listedin Annex 3 shall not be increased or expanded in size, scope, or duration, nor any new measures beapplied, unless in conformity with the provisions of the WTO Agreement.
67. Those members of the Working Party also noted that in implementing the provisions of
Articles III and XI of the GATT 1994 and the Agreement on Agriculture, China should eliminate and
not introduce any new nor re-introduce any old non-tari ff measures that could not be justified under
the provisions of the WTO Agreement.  Those members also stated that all non-tariff measuresadministered by China, whether or not referred to  in Annex 3 of the Protocol of Accession, which
were applied after China's accession to the WTO, should be allocated and otherwise administered instrict conformity with the provisions of the WTO Agreement, including Article XIII of theGATT 1994 and the Agreement on Import Licensing Pr ocedures, including notification requirements.
Import licensing
68. In response to requests for information, the representative of China stated that the list of all
entities responsible for the authorization or approval of imports would be updated and republished inthe official journal within 30 days of any change thereto.
69. Concerns were expressed by some members of the Working Party in relation to the use of
import licensing as restrictive non-tariff measures. .  Some members of the Working Party asked thatChina undertake a commitment to comply with the requirements of the Agreement on ImportWT/ACC/SPEC/CHN/1
Página 21
Licensing Procedures.  In response, the representative of China stated that the number of products
subject to restrictive licensing was being reduced and that China would comply with the requirements
of the Agreement on Import Licensing Procedures
70. Some members of the Working Party stated that in implementing the WTO Agreement and
provisions of the Agreement on Import Licensing Procedures, China should undertake the followingmeasures to facilitate compliance with those agreements.  They stated that China should notify thefollowing on a regular basis in the official journal referred to in paragraph 2(C)2 of its Protocol of
Accession:
(a) a listing by product, of all organizations, including those organizations delegated such
authority by the national authorities, that were responsible for authorizing orapproving imports or exports, whether through grant of license or other approval;
(b) a description of all procedures and criteria for obtaining such import or export
licenses or other approvals, and the conditions for deciding whether they should begranted;
(c) a list of all products, by HS system tariff number, that were subject to tendering
requirements, including information on products subject to such tenderingrequirements and any changes, pursuant to the Agreement on Import LicensingProcedures;
(d) a list of all goods and technologies whose import or export was restricted or
prohibited;  this  list should be notified to the Committee on Import Licensing;  and
(e) any changes to the list of goods and technologies whose import and export were
restricted or prohibited;
Those members also stated that within 75 days of each publication, copies of those notifications
should also be notified to the WTO Secretariat in a WTO official language for circulation to
WTO Members and for submission to  the Committee on Import Licensing.
71. Those members of the Working Party also stated that China should notify the WTO
Secretariat of all licensing and quota requirements remaining in effect after the date of entry into forceof this Protocol, listed separately by HS tariff line, with the quantities covered by the restriction, theWT/ACC/SPEC/CHN/1
Página 22
justification for maintaining the restriction or its scheduled date of termination.  Those members also
requested that China submit the notification of its import licensing procedures to the Committee onImport Licensing, as required by Article 5 of  the Agreement on Import Licensing Procedures.
Moreover, those members of the Working Party stated that China should report annually to the
Committee on Import Licensing, on its automatic import licensing procedures noting the reasons for
the import licensing requirement and justifying the need for their continuation.  That notificationwould also contain the information listed in Article 3 of the Agreement on Import LicensingProcedures.  In addition, those members stated that China should ensure that import licences remainedvalid for at least six months, except in exceptional circumstances.  In such cases, China shouldpromptly notify the Committee on Import Licensing of the exceptional circumstances requiring theshorter period of licence validity.  Those members also stated that foreign individuals and enterprisesand foreign-funded enterprises should be accorded treatment no less favourable than that accorded toother individuals and enterprises in respect of the distribution of import licences and quotas.
72. In response, the representative of China provided additional information on the system of
import licensing operating in China. He noted that the import licensing system was administeredwithout discrimination among countries or regi ons. In 1984, the State Council had promulgated the
"Interim Regulations on Licensing System for Import Commodities", and MOFTEC and the GeneralCustoms Administration had issued "Detailed Rules for the Implementation of the InterimRegulations on Licensing System for Import Commodities". The Interim Regulations were uniformlyimplemented throughout China. The import licensing system ensured that limited foreign exchange
resources were used for imports most needed by national economic development and that necessary
assistance could be provided to the domestic industries. In 1999, of the total import value ofUS$ 165.7 billion, imports subject to licensing represented 8.45%, covering US$ 14 billion.  He notedthat MOFTEC determined which products should be subject to import licensing according to therelevant provisions of the "Foreign Trade Law".
73. He stated that in 1993, China had applied import restrictions to 53 product categories.  By
1999, the number had been reduced to 35.  Products covered were (1) Processed oil;  (2) Wool;(3) Polyester fibre;  (4) Acrylic fibres;  (5) Polyester fillet;  (6) Natural rubber;  (7) Vehicles tyres;
(8) Sodium cyanide;  (9) Sugar;  (10) Fertilizer;  (11) Tobacco and its products;  (12) Acetate tow;
(13) Cotton;  (14) Motor vehicles and their key parts;  (15) Motorcycles and their engines andchassises; (16) Colour television sets and TV kinescope;  (17) Radios, tape recorders and their mainparts;  (18) Refrigerators and their compressor;  (19) Washing machines;  (20) Recording equipmentand its key parts;  (21) Cameras and their bodies (without lenses);  (22) Watches;  (23) AirWT/ACC/SPEC/CHN/1
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conditioners and their compressor;  (24) Audio and video tape duplication equipment;  (25) Crane
lorries and their chassises;  (26) Electronic microscopes;  (27) Open-end spinning machines;(28) Electronic colour scanners;  (29) Grain;  (30) Vegetable oil;  (31) Wine;  (32) Colour sensitivematerial;  (33) Chemical under supervision and control that were used for chemical weapon;
(34) Chemicals used to produce narcotics;  and (35) Laser disc production facilities.  He also noted
that in 1999, there were 13 commodity categories which were imported by the foreign tradecompanies designated by MOFTEC. These categories were as follows:  (1) Processed oil(2) Fertilizer (3) Tobacco (4) Vegetable oil (5) Grain (6) Natural rubber (7) Wool (8) Acrylic fibers(9) Sugar (10) Cotton (11) Crude oil (12) Steel and (13) Plywood.
74. Concerning the grant and administration of import licences, the representative of China noted
that the examination and approval of the licence t ook two to three working days. Applications for
import licences could be submitted to the Quota and License Administrative Bureau of MOFTEC, or
Special Commissioner Offices in 16 provinces, or Commissions on Foreign Economic Relations and
Trade of various provinces, autonomous regions, and municipalities directly under the centralgovernment and those with independent budgetary st atus. Licensing agencies authorized by MOFTEC
could issue import licences on the basis of import documents submitted by the applicants,  approvedby the competent departments. A licence could not be bought, sold or transferred, and was valid forone year.  Import licences could be extended once.
Customs Valuation
75. The representative of China recalled that the overwhelming majority of China's customs
duties were ad valorem  duties.  The customs or duty-paying value of imported goods was assessed
according to the C.I.F. price based on the normal transaction value. If the transaction value ofimported goods could not be ascertained, the duty-paying value was determined based on thetransaction value or the computed value of identical or similar goods.  He also noted that the CustomsLaw provided for appeal procedures. In the event of a dispute over calculation of duty paid or payable
with the Customs, the dissatisfied importer could ap ply to the Customs for a reconsideration of the
case. If the appeal was rejected the importer could sue at the People's Court.
76. He further noted that in accordance with international practices and provisions of China’s
Customs Law, import duty reductions or exemp tions were available for the following goods:WT/ACC/SPEC/CHN/1
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(a) A consignment of goods, on which customs duties were estimated below RMB
10 yuan;
(b) advertising articles and samples, which were of no commercial value;
(c) goods and materials, which were rendered gratis by international organizations or
foreign governments;
(d) fuels, stores, beverages and provisions for use en route loaded by any means of
transport, which was in transit across the border;
(e) exported goods being replaced;
(f) goods damaged prior to Customs release;
(g) goods covered by international treaties providing for tariff reductions and exemptions
which China had entered into or acceded to;
(h) goods temporarily imported;(i) goods imported under the processing program;
(j) goods imported at zero cost for offset purpose;
(k) domestic- or foreign-funded projects encouraged by the country;(l) articles for scientific research, education and the disabled.
He noted that goods so imported were required to  be put under the Customs supervision and control.
The Customs duty was required to be recovered if such goods were sold, transferred or used for other
purposes during the time period of supervision and control.
Other customs formalities
[to be completed]WT/ACC/SPEC/CHN/1
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Preshipment inspection
[to be completed]
Anti-dumping, countervailing duties, safeguard regimes
77. The representative of China noted that Chin a had recently promulgated Anti-dumping and
Countervailing Regulations.  On safeguard measures, he noted that at present, China was goingthrough the legislative procedure of drafting legislation regarding safeguard measures in accordancewith the Article 29 of the Foreign Trade Law and the WTO Agreement on Safeguards.
78. A member of the Working Party noted that China was continuing the process of transition
towards a full market economy.  That member noted that under those circumstances, in the case of
imports of Chinese origin into a WTO Member, spec ial difficulties could exist in determining price
comparability in the context of anti-dumping inves tigations and countervailing duty investigations.
That member stated that in such cases, the importing WTO Member may find it necessary to take intoaccount the possibility that a strict comparison with domestic prices in China may not always beappropriate.
B. EXPORT REGULATIONS
Customs tariffs, fees and charges for services rendered, application of internal taxes to exports
79. Some members of the Working Party noted that certain taxes and charges appeared to be
applied exclusively to exports.  Those members of the Working Party stated that those taxes andcharges should be eliminated unless applied in conformity with GATT Article VIII or listed inAnnex 6 to China's Protocol of Accession.
80. The representative of China noted that the majority of products were free of export duty,
although 36 items, including tungsten ore, ferros ilicon and some aluminum products were subject to
export duties. He noted that the duty-paying value of exported goods was the F.O.B. price of thegoods deducting the export tariff.WT/ACC/SPEC/CHN/1
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Export licensing
81. The representative of China noted that China's export licencing system was administered in
accordance with the "Interim Procedures for the Export Licencing System". In 1992, there were
143 categories of products subject to export licencing which accounted for 48.3% of the total value of
the China's exports, but by 1999, the total number of products subject to export licencing had beenreduced to 58 categories and 73 items with an export value of US$ 18.5 billion, taking up only 9.5%of total exports. Export licences for these products  were issued according to the stipulated commodity
scope respectively by the Administrative Bureau of Quota and License (ABQL), the SpecialCommissioner Offices (SCO) located in 16 provinces and the Commissions of Foreign EconomicRelations and Trade (COFTEC) of various province s, autonomous regions, municipalities directly
under the central government and those with independent budgetary status.  The main criteria used indetermining whether a products was subject to expo rt licencing were set down in the Foreign Trade
Law:  (1) to maintain national security or public interests;  (2) shortage of supply in the domestic
market or for the effective protection of exhaustible domestic resources;  (3) limited market capacityof importing countries or regions;  or (4) obligations stipulated by international treaties.
82. He further noted that an application for an export licence had to be submitted to the licence
issuing institutions authorized by MOFTEC, together with documents approving the export by thecompetent departments, and other relevant materials (such as the Export Qualification Certificate forthe enterprises, export contract and so on). The procedures were the same for all export destinations.
A decision on the request for an export licence normally took three working days. Licences were valid
for six months and could be extended once.  FIEs engaged in exporting products not produced bythemselves were required to obtain export licences if the products to be exported were subject to thelicensing requirement.  If the products were not subject to licensing, customs clearance would begiven after examination by the Customs on the basis of export contracts and other relevant documents.
83. Some members of the Working Party noted that certain export licensing requirements
appeared to operate as restrictive non-tariff measures.  In response, the representative of Chinaindicated that the number of products subject to export licensing was being reduced and that China
would abide by its WTO obligations concerning export formalities and licensing.  In response to this
statement, members of the Working Party asked that China undertake such a commitment.WT/ACC/SPEC/CHN/1
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Export restrictions
84. The representative of China noted that China prohibited export of narcotic drugs, poisons,
materials containing State secrets, precious and rare animals and plants.
Export subsidies
85. Some members of the Working Party noted concerns about the extent of China's use of
prohibited export subsidies.  In response, the representative of China stated that all direct exportsubsidies on industrial and agricultural goods had been eliminated.  Some members of the WorkingParty stated that China should enter a commitment to  eliminate all export subsidies by a date to be
agreed.  Those  members of the Working Party stated that China should also provide a notificationpursuant to Article 25 of the WTO Agreement on Subsidies and Countervailing Measures ("SCM
Agreement") detailing all subsidies within the m eaning of Article 3 of that Agreement.  Those
members also noted that the existing practice of granting preferential treatment to imported products
and to joint venture production enterprises in China's special economic areas conditional upon exportor re-export of products manufactured or subject to additional processing in such areas, appeared tomeet the definition of prohibited subsidies pursuant to Article 3 of the Agreement on Subsidies andCountervailing Measures.  Those members also stated that China should phase out all subsidies fallingwithin the scope of Article 3 of the SCM Agreement.  Those members noted that China had provideda list of subsidies and a timetable for their elim ination in Annex 5 of the Protocol of Accession of
China to the WTO.
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS
Industrial policy, including subsidies
86. Some members of the Working Party noted that the situation of differential treatment of
minority autonomous regions and other areas of economic poverty within China was uncertain and
could raise problems in relation to the requirements of the Agreement on Subsidies and
Countervailing Measures.  In response, the representative of China stated that the central governmentwas required by the Constitution to provide assistance to those disadvantaged areas.  Some membersof the Working Party stated that China should also provide a notification detailing all subsidies withinthe meaning of Article 1 of the SCM Agreement.WT/ACC/SPEC/CHN/1
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Sanitary and phytosanitary measures, technical barriers to trade
87. Some members of the Working Party considered that China should provide a notification of
all laws and regulations relating to its sanitary and phytosanitary measures, including all products
covered by such measures.  In addition, some members of the Working Party raised specific concernsin relation to the use of quarantine procedures as non-tariff barriers.  In response, the representative ofChina stated that China's quarantine procedures were not used as non-tariff measures.  The WorkingParty took note of China's notification on SPS in document WT /ACC/CHN/14 and Corr.1.
88. In response to requests for information from members of the Working Party, the
representative of China confirmed that internal mechanisms existed in China (e.g. policy guidelines,inter-agency committees) to inform and consult with, on an ongoing basis, government agencies and
ministries (at national and sub-national levels), and private sector interests, on the rights and
obligations under the GATT 1994 and the TBT Agreement 1994.  In response to further requests forinformation concerning the opportunity for public consultation and comment on proposed standardsand technical regulations, the representative of China noted that China had already established such amechanism.  Currently, China provided a 45 day period to allow for comments on proposed standards,technical regulations, and conformity assessment procedures.  If within that 45 day period a requestfor extension of the time-limit was received from a WTO Member, the period was extended to60 days.  In addition, provision was also made a further extension of the time-limit beyond 60 days if
requested by another Party to the TBT Agreement.
89. Members of the Working Party noted that a list of products subject to statutory inspection
upon importation into China, together with the applicable technical regulations and standards, theobjectives which they fulfilled and their necessity to fulfil those objectives was contained in Annex 7of China's Protocol of Accession.
90. Some members of the Working Party stated that pursuant to the requirements of the TBT
Agreement, China's standards, technical regulation s and conformity assessment procedures should be
based, to the maximum extent possible, on relevant international standards, where they existed except
where use of different standards, technical regulations and conformity assessment procedures could bejustified to the TBT Committee, pursuant to Article 2.4 of the TBT Agreement, as necessary to fulfillegitimate objectives as defined in Article 2.2 of the TBT Agreement.  Those members also stated thatWT/ACC/SPEC/CHN/1
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any such standards, technical regulations and conformity assessment procedures should be
administered so as not to create unnecessary barriers to trade.
91. Those members also stated that Government inspection agencies should not apply compulsory
standards to imported products which related solely to fulfilling unspecified criteria of quality,
quantity or weight, nor require statutory inspection of products solely because of the volume of suchimports.  Those members stated that China should  publish complete commodity inspection criteria,
whether formal or informal, in its official jour nal.  In this connection those members noted that
pursuant to Article 15.2 of the TBT Agreement, China should provide a notification Statement onImplementation and Administration of the Agreement consistent with the relevant Decisions adoptedby the Committee on Technical Barriers to Trade of the Tokyo Round Agreement on TechnicalBarriers to Trade (TBT/16/Rev.7).
92. Some members stated that Government-mandated inspection agencies should not inspect
imported products to assess compliance with the terms of commercial contracts.  Those membersnoted that China could inspect imported products or require conformity assessment when third-partytesting or certification was not able to fulfil the legitimate objectives listed in the TBT Agreement.
They noted that once Mutual Recognition Agreements were concluded between China and a particularWTO Member, China should not require inspection nor retesting in respect of any product exportedfrom that Member which had been tested or certified to meet relevant international standards by awidely recognized conformity assessment body.  Concerning foreign and joint-venture commodity
inspection agencies, members of the Working Party stated that China should not maintain
requirements which had the effect of acting as barriers to their operation.
93. Members of the Working Party also stated that  in order to be fully consistent with the
requirements of the TBT Agreement and the GATT 1994, China should eliminate the two-tiered
system used for imports and domestic products, and otherwise consolidate the standards, technicalregulations and conformity assessment procedures (e.g. testing, inspection, certification, qualitysystem registration, laboratory accreditation) to ensure that the same measures applied to domesticproduction were applied to imports and in the same way.
94. The representative of China stated that pursuant to the provisions of the Agreements on TBT
and SPS, China applied compulsory inspection and quarantine as required in the interests of nationalsecurity, life and health of human beings, animals and plants, environmental protection, as well as toprevent deceptive activities, as well as to animals, plants and their processed products.  He also notedWT/ACC/SPEC/CHN/1
Página 30
that most of China's standards were the same as or equivalent to the international standards, and that
China implemented the same standards, technical regulations and accreditation procedures ofinspection and quarantine to both imported and domestic goods. There was no discrimination against
the imported goods, animals and plants and their processed products.
95. The representative of China noted that China had set up TBT and SPS enquiry points of
inspection and quarantine which had been notified to the WTO's SPS and TBT Committees.  Laws,regulations, rules, standards and procedures on entry-exit inspection and quarantine had beenpublished in publications such as the "MOFTEC Gazette".  Information could also be gathered fromthe State Administration of Entry-Exit Inspection and Quarantine, or from China's TBT and SPSenquiry points.
96. Some members of the Working Party expressed concerns about the complexity and lack of
consistency of China's standards and inspection regime.  In addition, members of the Working Party
noted that imported and domestic products were not inspected by the same governmental entities andthat this situation could result in less favourable treatment for imports.  Some members also criticized
mandatory government inspection requirements for compliance with terms of commercial contracts.In response to those concerns, the representative of China stated that China intended to comply fullywith its WTO obligations concerning its standards, technical regulations and inspection regime.Notwithstanding the fact that many of the features of China's economy were at present those of adeveloping country economy, China was prepared to undertake a commitment not to apply the
provisions in Article 12 of the TBT Agreement.
97. Further to China's application of the provisions of the GATT 1994 and the TBT
Agreement, China confirmed that:
(a)  internal mechanisms exist (e.g. policy gu idelines, inter-agency committees) to inform
and consult with, on an ongoing basis, government agencies and ministries (at nationaland sub-national levels), and private sector interests, of the rights and obligations underthe GATT 1994 and the TBT Agreement 1994;  and
(b)  the recommended time to allow for co mments on proposed standards, technical
regulations, and conformity assessment procedures of sixty days (or forty-five days if nocomments or request for extension of the time -limit have been received from other WTO
Members within that time) is observed, and provision is made for giving dueWT/ACC/SPEC/CHN/1
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consideration to a time-limit beyond sixty days if requested by another Party to the TBT
Agreement 1994.
The Working Party took note of these commitments.
Trade-Related Investment Measures
98. Some members of the Working Party requested that China enter a commitment to comply in
full with the requirements of the Agreement on Trade-related Investment Measures (TRIMsAgreement) from the date of accession to the WTO.  In response, the representative of China statedthat notwithstanding the fact that many of the features of China's economy were at present those of adeveloping country economy, China was prepared to undertake a commitment to notify and eliminateby the date of entry into force of the WTO Agreement all trade-related investment measures
inconsistent with the provisions of the TRIMs Agreement.  Such measures included, but were not
limited to:  requirements that foreign firms balance their foreign exchange for importation withforeign exchange receipts;  requirements that firms meet specified export target levels in pursuance of
such foreign exchange balancing requirements, in cluding by contract;  requirements for minimum
export levels;  local content requirements;  and restrictions on the sale of "non-resultant products",i.e., products not produced in China.
State-trading entities
99. Some members of the Working Party stated that the activities of China's state-trading
enterprises were not sufficiently transparent.  Some members also raised concerns regarding the
conformity of the activities of those enterprises with the requirements of Article XVII of the GATT
1994, and the Understanding on the Interpretation of Article XVII of the GATT 1994.
100. Those members also stated that China should ensure that the import purchasing practices and
procedures of state-trading enterprises were fully transparent, and in compliance with the
requirements of the WTO Agreement. China should al so refrain from taking any measure to influence
or direct state-trading enterprises as to the quantity, value, or country of origin of goods purchased orsold, except in accordance with the requirements of the WTO Agreement.  Those members also statedthat in accordance with the GATT 1994 and the Understanding on the Interpretation of Article XVIIof the GATT 1994, China should notify information on the pricing mechanisms of its state-trading
enterprises for exported goods, including domestic procurement prices, contract terms for deliveryand financing terms and conditions.WT/ACC/SPEC/CHN/1
Página 32
101. In response, the representative of China stated that its state-trading enterprises had full
management autonomy and responsibility for their own profits and losses.  However, some membersof the Working Party again stated that China should undertake a commitment to ensure that all state-trading enterprises should comply with the requir ements of the WTO Agreement.  The representative
of China noted that a list of products subject to state-trading had been provided in Annex 2a ofChina's Protocol of Accession.
Free zones, special economic areas
102. Members of the Working Party noted that there was insufficient information available
concerning special economic areas, in particular their names, geographic boundaries, and relevantlaws, regulations and other measures relating thereto.  In response, the representative of China statedthat since 1979 China had established a number of zones and areas where more open policies wereapplied.  They included five Special Economic Zones (SEZs), 14 coastal open cities, six open citiesalong the Yangtze River, 21 provincial capital cities and 13 inland boundary cities.  Those areasenjoyed greater flexibility in utilizing foreign capital, introducing foreign technology and conductingeconomic cooperation overseas.  At present, foreign investors were entitled to the certain preferentialtreatment.
103. He further stated that FIEs located in SEZs or the Economic and Technical Development
Zones of open coastal cities were entitled to a corporate income tax rate of 15% (the normal incometax was 33%).  Profits remitted abroad by foreign investors were exempted from income tax.  Thepreferential income tax rate of 15% was applicable to technology-intensive or knowledge-intensiveitems or projects with foreign investment of over US$30 million, as well as enterprises that operatedin the fields of energy, transport and port construction.
104. The representative of China noted that throug hout the customs territory of China, a socialist
market economy system was applied.  The sole exception to this general principle concerned all FIEs
across the country and state-owned firms within SEZs, which operated under a market mechanism. In1999, the foreign trade volume of SEZs accounted for nearly one fifth of the nation's total. Thenational laws and regulations on taxation were applicable to SEZs in a uniform manner. Laws andregulations on patent, copyright, trade marks and bankruptcy applied to state-owned enterprises inSEZs, and the SEZs were required to conform with all other laws and regulations applied throughoutthe customs territory of China.WT/ACC/SPEC/CHN/1
Página 33
105. In response to further requests for information, the representative of China indicated that,
pursuant to governmental policy, the importance of the special trade regimes continued to expand andthe differences between these regimes and those of other parts of its customs territory continued tonarrow. He noted, however, that the establishment of SEZs and other special economic areas was
required to be approved by the State Council, and there was no current plan to establish any new
special economic zones.  China noted that the long-term objective was to unify the application of itstrade regime throughout the customs territory on pr inciples of a market-oriented economy.  Members
of the Working Party expressed concern that products introduced from these special economic areasinto other parts of China's customs territory should be  subject to the same treatment in the application
of all taxes, import restrictions and customs and tariff charges as that normally applied to imports intothese other parts of the customs territory.  The representative of China stated that China wouldundertake to ensure such non-discriminatory treatment.
106. Some members also raised concerns about the differential treatment within areas of minority
autonomous regions and other areas of economic poverty.  In response, the representative of Chinastated that China had a clear commitment to uniform administration of trade regime within each sucharea and was determined to prevent smuggling.
107. Some members of the Working Party requested that China take steps to ensure that all
products imported into the customs territory of China from special economic areas should be subjectto the same normal customs duties and charges as any other product imported into the customs
territory of China.  In particular, those members requested that China undertake a commitment to
apply all taxes, charges and measures affecting imports, including import restrictions and customs andtariff charges, that were normally applied to imports into the other parts of China's customs territory toall imported products, including physically incorporated components, imported into China's customsterritory from the special economic areas.
108. China confirmed that it would strengthen th e uniform enforcement of taxes, tariffs and
non-tariff measures on trade between its special  economic areas and the other parts of China's
customs territory.  China further confirmed that  statistics on trade between China's special
economic areas and the other parts of its custom s territory would be maintained and improved,
and would be notified to the WTO on a regular basis.  The Working Party took note of these
commitments.WT/ACC/SPEC/CHN/1
Página 34
109. Some members of the Working Party requested that China notify to the WTO Secretariat all
the relevant laws, regulations and other measures relating to its special economic areas or zones.They asked that the notification list and identify all those areas or zones.  Those members alsorequested that China notify the WTO Secretariat promptly, but in any case within 60 days, of any
additions or modifications to its special economic areas, including notification of the laws, regulations
and other measures relating thereto.
110. China confirmed that it would provide information in its notifications describing how
the special trade, tariff, and tax regulations applied are limited to the designated special
economic areas, including information concerning their enforcement.  The Working Party tooknote of this commitment.
111. Some members of the Working Party also requested that any preferential arrangements
provided for enterprises located within the special export areas should be applied on the basis of non-
discrimination.
Government procurement
[to be completed]
Transit
[to be completed]
Agricultural policies
112. Some members raised concerns in relation to China's intention to maintain certain quantitative
import restrictions and restrictive licensing requirements in the agricultural sector. China indicatedthat it was willing to convert most quantitative restrictions on agricultural products to their tariff-based equivalents in conformity with the Agreement on Agriculture, but that for a very few products it
was necessary to maintain restrictive licensing over the longer term.
113. Some members requested further information concerning administrative guidance provided at
the national and sub-national level which could have the effect of influencing the quantity andWT/ACC/SPEC/CHN/1
Página 35
composition of agricultural imports.  Those members requested that China undertake an appropriate
commitment to eliminate these practices.
114. China confirmed that it would not maintain, resort to or revert to guidance plans or
administrative guidance at the national or s ub-national level that regulate the quantity of
imports, import controls, import substitution practices, or other non-tariff trade measuresmaintained through state trading enterprises at  the national or sub-national level.  The
Working Party took note of this commitment.
115. Some members requested additional information about the use of fiscal transfers and other
forms of domestic subsidies to government-owned and government-controlled entities in theagricultural sector.  Those members stated that China's notifications under the Agriculture and other
Agreements and related commitments for subsidies should include reference to such measures.  Those
members also stated that the information notified should also detail export subsidies within the
meaning of Article 9 of the Agreement on Agriculture.  In response, the representative of China notedthat China continued to maintain export subsidies on certain agricultural products.
116. Some members of the Working Party stated that China should undertake a commitment not to
invoke the provisions in Articles 6:2, 6:4(b), 9:4, 12:2 and 15, and Annex 5, Section B of theAgreement on Agriculture.
117. China's commitments on agricultural tariffs, on domestic support and export subsidies for
agricultural products are contained in the Schedule of Concessions and Commitments on Goodsannexed to China's Draft Protocol of Accession to the WTO.
Trade in civil aircraft
[to be completed]
Textiles
[to be completed]WT/ACC/SPEC/CHN/1
Página 36
Non-Tariff Measures Maintained Against China
118. The representative of China stated that WTO Members should eliminate all discriminatory
non-tariff measures maintained against Chinese exports from the date of China's accession to the
WTO.  In response, some members of the Working Party stated that, in their view, such measures did
not need to be phased out until after China's foreign trade regime fully conformed to WTOobligations.
Transitional Safeguards
119. Some members of the Working Party stated that there was a need during a transitional period
for a special safeguard mechanism to guard against imports from China in such increased quantities orunder such conditions as to cause or threaten injury to domestic producers of like or directly
competitive products.  The representative of China stated that China opposed the creation of such a
discriminatory safeguards provision and considered that the safeguards provisions of the GATTprovided sufficient protection to the domestic industries of WTO Members.  Some members of theWorking Party considered that the provision of a transitional safeguard would have to be carefully
circumscribed to prevent abuse in its invocation.
Transitional Review Mechanism
120. Members of the Working Party stated that following China's accession to the WTO it would
be necessary to establish a transitional review mechanism constituted by a Working Party to monitorChina's compliance with its Protocol of Accession and the WTO Agreement within the overallframework of China's progress in the reform of its economic and foreign trade regimes.  Membersconsidered that the review should be held every two years (or more frequently upon request of China
or another WTO Member), and that a major review  should be held, e.g., every six years.  That
Working Party would have regard to the outline contained in Annex 9 to the Protocol of Accession ofChina, and could make recommendations, as approp riate, to China or to the other WTO Members
concerned.  Those members stated that that Working Party should also decide whether and to what
extent the transitional provisions provided in paragraphs … of this Report should no longer apply.
Those members noted that once the transitional provisions ceased to apply, the Transitional ReviewMechanism would be extinguished.WT/ACC/SPEC/CHN/1
Página 37
121. The representative of China stated that hi s government did not in principle oppose such a
review mechanism but considered that the review could be carried out as part of the regular TradePolicy Review to which China would be subject.   In response, members of the Working Party statedthat they considered that the WTO Agreement's Trade Policy Review Mechanism was not well
adapted to the type of specific review of compliance with conditions of accession that they considered
to be necessary.  Some members stated that the Trade Policy Review of China in the WTO shouldoccur as regularly scheduled, notwithstanding the possible creation of a special transitional reviewmechanism for China.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
General
122. Some members of the Working Party stated that China should undertake a commitment to
fully comply with the requirements of the Agreement on TRIPS from ….
Specific aspects of the intellectual property regime
[to be completed]
VI. POLICIES AFFECTING TRADE IN SERVICES
123. Members of the Working Party expressed concerns about the lack of transparency in China's
services regime.  The representative of China stated that China was prepared to enter a commitment toimprove this aspect of its trade regime.
124. China's Schedule of Specific Commitments on Services is annexed to its draft Protocol of
Accession reproduced in the Appendix to this Draft Report.  This Schedule of Specific Commitments
on Services contains the market access commitments of China in respect of services.
Notifications
125. Members of the Working Party requested that China provide to the WTO Secretariat the
notifications described in paragraphs … of this Draft Report.WT/ACC/SPEC/CHN/1
Página 38
Trade Agreements
126. Some members of the Working Party raised specific concerns in relation to China's special
trade arrangements, including barter trade arrangements, with third countries and separate customs
territories.  Those members requested that Chin a enter a commitment to eliminate or bring such
arrangements into conformity with WTO obligations by no later than the date of its accession to the
WTO Agreement.
Publication of information on trade
[to be completed]
Transparency
127. Some members of the Working Party requested that China undertake to ensure that upon
request, and prior to implementation or enforcement, all laws, regulations and other measurespertaining to or affecting trade in goods, services, TRIPS or the control of foreign exchange would bepublished and made available to WTO Members.
128. Those members also requested that China designate an official journal in which all laws,
regulations and other measures pertaining to or affecting the subject-matter of the WTO Agreementwould be published and that those laws regulations and other measures should only become effectivefollowing a period within which interested parties could submit comments to the designatedauthorities.  They asked that China publish that journal on a regular basis and make copies of allissues of this journal readily available to individuals and enterprises.
129. Members of the Working Party also requested  that China set up an enquiry point where
information relating to all laws, regulations and other measures pertaining to or affecting trade in
goods, services, TRIPS or the control of foreign exchange could be obtained.  Those members stated
that replies to such enquiries should generally be provided within 30 days of a request, though in nocase take longer than 45 days, and if so delayed a statement of indicating the reasons therefore shouldbe provided in writing to the interested party.  Members noted that replies to enquiries would need tobe complete and represent the authoritative view of the Chinese Government.
130. Members of the Working Party further requested that China provide the WTO Secretariat
with statistical data and information describing China's economy and trading system specified inWT/ACC/SPEC/CHN/1
Página 39
Annex 1 of its Protocol of Accession every two year s, and thirty calendar days prior to a meeting of
the Working Party on Trade with China that would be established by China's Protocol of Accession.
131. In response, the representative of China noted that the Chinese Government regularly issued
publications providing information on China's foreign trade system, such as the: "Almanac of Foreign
Economic Relations and Trade" and "The Bulletin of MOFTEC" published by MOFTEC; "StatisticalYearbook of China", published by the State Statistical Bureau; "China's Customs Statistics(Quarterly)", edited and published by the Customs General Administration.  China's laws andadministrative rules and regulations of the State C ouncil relating to foreign trade were all published,
as were regulations issued by Ministries and Commissions. Such laws and regulations were availablein the "Bulletin of the State Counc il", the "Collection of the Laws and Regulations of the People's
Republic of China (PRC)" and "MOFTEC Gazette". The administrative regulations and directivesrelating to foreign trade were also published in MOFTEC's official website
(http://www.moftec.gov.cn) and periodicals.
132. He further noted that information on exchange controls affecting import and export was
published by the State Administration of Foreign Exchange.  All the valid laws and regulations offoreign exchange control were reproduced on the website of the State Administration of ForeignExchange (http://www.safe.gov.cn) and via the news media.
133. Concerning administration of import and export, the representative of China noted that
MOFTEC, together with the relevant department s, decided the items and specific quantities of
products subject to import and export licensing and made timely adjustments according to the need ofthe current situation.  Such information would be published on "International Business" newspaperand "MOFTEC Gazette".
134. He also noted that information on China's customs laws and regulations, import and export
duty rates, and customs procedures were published in the "State Council Bulletin" and in the pressmedia, and were available upon request. The procedures  concerning application of duty rates, customs
value and duty determination, drawback and duty recovery, as well as the procedures concerning duty
exemptions and reduction, were also published.  The State Statistics Bureau also published quarterly
customs statistics, calculated according to country of origin and consumption. The Customs GeneralAdministration published trade figures on the basis of eight-digit H.S. headings.WT/ACC/SPEC/CHN/1
Página 40
135. The representative of China noted that any bilateral trade agreements concluded between
China and its trading partners and protocols on the exchange of goods negotiated under them werepublished in "The Treaty Series of the PRC".  He also noted that the "Directory of China's Foreign
Economic Relations and Trade Enterprises" and "China's Foreign Trade Corporations and
Organizations" were two publications, which identify foreign trade corporations and other enterprises
in China engaged in foreign trade.
136. China confirmed that it would, to the maxi mum extent possible, make available to WTO
Members translations into one or more of th e official languages of the WTO all laws,
regulations and other measures pertaining to or affecting trade in goods, services, TRIPS or the
control of foreign exchange, [___ calendar days] before such measures are implemented orenforced.  The Working Party took note of these commitments.
137. China confirmed that publication of all laws, regulations and other measures pertaining
to or affecting trade in goods, services, TRIPS or the control of foreign exchange would include
[the period for comment,] the effective date of these measures and the products and services
affected by a particular measure [, identified by appropriate tariff line and CPC classification if
necessary].  The Working Party took note of these commitments.
138. China confirmed that it would apply on a most-favoured-nation basis all transparency
commitments agreed bilaterally with other countries and separate customs territories. The
Working Party took note of this commitment.
139. China confirmed that it would publish in the official journal, by appropriate
classification and by service where relevant, a list of all organizations, including those
organizations delegated such authority from the national authorities, that are responsible for
authorizing, approving or regulating services activities whether through grant of license orother approval.  Procedures and the conditions for obtaining such licen ses or approval would
also be published.  The Working Party took note of these commitments.
140. China confirmed that none of the informat ion required by the WTO or the Protocol to
be disclosed shall be withheld as confidential information.  The Working Party took note of this
commitment.WT/ACC/SPEC/CHN/1
Página 41
141. China confirmed that it would establish or designate an enquiry point where all
information relating to the laws, regulations and other measures pertaining to or affecting trade
in goods, services, TRIPS or the control of foreign exchange, as well as the published texts,could be obtained.  This information would include the names of national or sub-national
authorities (including contact points) responsible for implementing a particular measure.  The
Working Party took note of these commitments.
Conclusions
142. The Working Party took note of the explanations and statements of China concerning its
foreign trade regime, as reflected in this report .  The Working Party took note of the commitments
given by China in relation to certain specific matters which are reproduced in paragraphs […] of thisDraft Report and noted that these commitments are incorporated in paragraph 1.2 of the Draft
Protocol of Ac cession of China.
143. Having carried out the examination of the foreign trade regime of China and in the light of the
explanations, commitments and concessions made by the representative of China, the Working Partyreached the conclusion that China be invited to accede to the Marrakesh Agreement Establishing theWTO under the provisions of Article XII.  For this purpose, the Working Party has prepared the draftDecision and Protocol of Accessi on reproduced in the Appendix to this Report, and takes note of its
Schedule of Concessions and Commitments on Goods [(document WT/ACC/SPEC/CHN…)] and
China's Schedule of Specific Commitments on Services [(document WT/ACC/SPEC/CHN…)] that
are annexed to the Draft Protocol.  It is proposed that these texts be adopted by the General Councilwhen it adopts the Draft Report.  When the Draft Decision is adopted, the Draft Protocol of Accessionwill be open for acceptance by China which will become a Member thirty days after it accepts the saidDraft Protocol.  The Working Party agreed, therefore, that it had completed its work concerning thenegotiations for the accession of China to the WTO.
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