WORLD TRADE
ORGANIZATIONS/DCS/W/CHN
24 January 2003
(03-0452)
Trade in Services Original:  English
THE PEOPLE'S REPUBLIC OF CHINA
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version of the Schedule of Specific Commitments of China in
word format.  This document  does not substitute for the legally binding commitments undertaken by
China in its Schedule of Specific Commitments (GATS/SC/135; GATS/SC/135/Corr.1).
Attached to the draft consolidated schedule is China's Article II (MFN) Exemption List
(GATS/EL/135) in word format.
The draft consolidated versions of the Schedule and the MFN Exemption List were prepared
by the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
_______________
                                                     
1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/CHN
Page 2THE PEOPLE'S REPUBLIC OF CHINA -  SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORS INCLUDED INTHIS SCHEDULE(3) In China, foreign invested
enterprises include foreign capitalenterprises (also referred to aswholly foreign-owned enterprises)and joint venture enterprises andthere are two types of joint ventureenterprises: equity joint venturesand contractual joint ventures.
1(3) Unbound for all the existing
subsidies to domestic servicessuppliers in the sectors of audio-visual, aviation and medicalservices.
The proportion of foreigninvestment in an equity jointventure shall be no less than 25 percent of the registered capital of thejoint venture.
The establishment of branches by
foreign enterprises is unbound,unless otherwise indicated inspecific sub-sectors, as the laws andregulations on branches of foreignenterprises are under formulation.
Representative offices of foreignenterprises are permitted to beestablished in China, but they shallnot engage in any profit-makingactivities except for therepresentative offices under CPC861, 862, 863, 865 in the sectoralspecific commitments.
                                                     
1 The terms of the contract, concluded in accordance with China's laws, regulations and other measures, establishing a "contract ual joint venture" govern matters such as the manner of
operation and management of the joint venture as well as the investment or other contributions of the joint venture parties. Eq uity participation by all parties to the contractual joint venture is not
required, but is determined pursuant to the joint venture contract.S/DCS/W/CHN
Page 3Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
The conditions of ownership,
operation and scope of activities, asset out in the respective contractualor shareholder agreement or in alicence establishing or authorizingthe operation or supply of servicesby an existing foreign servicesupplier, will not be made morerestrictive than they exist as of thedate of China's accession to theWTO.
The land in the People's Republic of
China is State-owned. Use of landby enterprises and individuals issubject to the following maximumterm limitations:
(a) 70 years for residential purposes;
(b) 50 years for industrial purposes;(c) 50 years for the purpose of
education, science, culture, publichealth and physical education;
(d) 40 years for commercial, tourist and
recreational purposes;
(e) 50 years for comprehensive
utilization or other purposes.
(4) Unbound except for measures
concerning the entry and temporarystay of natural persons who fall intoone of the following categories:(4) Unbound except for the measures
concerning the entry and temporarystay of natural persons who fall intothe categories referred to in themarket access column.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(a) Managers, executives and
specialists defined as senioremployees of a corporation of aWTO Member that has establisheda representative office, branch orsubsidiary in the territory of thePeople's Republic of China,temporarily moving as intra-corporate transferees, shall bepermitted entry for an initial stay ofthree years;
(b) Managers, executives and
specialists defined as senioremployees of a corporation ofWTO Members, being engaged inthe foreign invested enterprises inthe territory of the People'sRepublic of China for conductingbusiness, shall be granted a long-term stay permit as stipulated in theterms of contracts concerned or aninitial stay of  three years,whichever is shorter;
(c) Service salespersons – persons not
based in the territory of the People'sRepublic of China and receiving noremuneration from a source locatedwithin China, and who are engagedin activities related to representing aservice supplier for the purpose ofnegotiation for the sale of servicesof that supplier where:(a) such sales are not directly
made to the general public and
(b) the salesperson is not engaged
in supplying the service: entryfor salespersons is limited to a90-day period.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
II. SPECIFIC COMMITMENTS
A. Professional Services
(a) Legal Services
(CPC 861, excluding Chinese lawpractice)(1) None
(2) None(3) Foreign law firms can provide legal
services only in the form ofrepresentative offices in Beijing,Shanghai, Guangzhou, Shenzhen,Haikou, Dalian, Qingdao, Ningbo,Yantai, Tianjin, Suzhou, Xiamen,Zhuhai, Hanghou, Fuzhou, Wuhan,Chengdu, Shenyang and Kunmingonly.(1) None
(2) None(3) All representatives shall be resident
in China no less than six monthseach year.  The representative officeshall not employ Chinese nationalregistered lawyers.
Representative offices can engage inprofit-making activities.Representative offices in China shallbe no less than the numberestablished upon the date ofaccession.  A foreign law firm canonly establish one representativeoffice in China.  The above-mentioned geographic andquantitative limitations will beeliminated within one year afterChina's accession to the WTO.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Business scope of foreign representative
offices is only as follows:
(a) to provide clients with consultancy
on the legislation of thecountry/region where the lawyers ofthe law firm are permitted to engagein lawyer's professional work, andon international conventions andpractices;
(b) to handle, when entrusted by clients
or Chinese law firms, legal affairs ofthe country/region where thelawyers of the law firm arepermitted to engage in lawyer'sprofessional work;
(c) to entrust, on behalf of foreign
clients, Chinese law firms to dealwith the Chinese legal affairs;
(d) to enter into contracts to maintain
long-term entrustment relations withChinese law firms for legal affairs;
(e) to provide information on the
impact of the Chinese legalenvironment.
Entrustment allows the foreignrepresentative office to directlyinstruct lawyers in the entrustedChinese law firm, as agreed between
both parties.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
The representatives of a foreign law
firm shall be practitioner lawyerswho are members of the bar or law
society in a WTO member and have
practiced for no less than two yearsoutside of China. The Chiefrepresentative shall be a partner orequivalent (e.g., member of a lawfirm of a limited liability
corporation) of a law firm of a WTO
member and have practiced for noless than three years.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
(b) Accounting, auditing and
bookkeeping services (CPC 862)(1) None
(2) None(3) Partnerships or incorporated
accounting firms are limited toCertified Public Accountants
(CPAs) licensed by the Chinese
authorities.
(4) Unbound except as indicted in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicted in
horizontal commitments.- Foreign accounting firms are
permitted to affiliate with Chinesefirms and enter into contractualagreements with their affiliatedfirms in other WTO Members.
- Upon accession to the WTO,
issuance of licenses to thoseforeigners who have passed theChinese national CPA examinationshall be accorded national treatment.
- Applicants will be informed of
results in writing no later than 30days after submission of theirapplications.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Existing contractual joint venture
accounting firms are not limitedonly to CPAs licensed by Chineseauthorities.
- Accounting firms providing services
in CPC 862 can engage in taxationand management consultingservices. They will not be subject torequirements on form ofestablishment in CPC 865 and 8630.
(c) Taxation services
(CPC 8630)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
None, within six years of China'saccession, foreign firms will bepermitted to establish whollyforeign-owned subsidiaries.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(d) Architectural services
(CPC 8671)
(e) Engineering services
(CPC 8672)
(f) Integrated engineering services
(CPC 8673)
(g) Urban planning services (except
general urban planning)(CPC 8674)(1) None for scheme design
  Co-operation with Chinese
professional organisations isrequired except scheme design .
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.Within five years after China's
accession to the WTO, wholly
foreign-owned enterprises will bepermitted.
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) Foreign service suppliers shall be
registered architects/engineers, orenterprises engaged inarchitectural/engineering/urban
planning services, in their home
country.
(4) Unbound, except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 9Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(h) Medical and dental services
(CPC 9312)(1) None
(2) None(3) Foreign service suppliers are
permitted to establish joint venture
hospitals or clinics with Chinesepartners with quantitative limitationsin line with China's needs, withforeign majority ownershippermitted.
(4) Unbound, except as indicated in
horizontal commitments and asfollows:(1) None
(2) None(3) The majority of doctors and medical
personnel of the joint venture
hospital and clinics shall be ofChinese nationality.
(4) Unbound, except as indicated in
horizontal commitments.
Foreign doctors with professionalcertificates issued by their homecountry shall be permitted to provide
short-term medical services in China
after they obtain licenses from theMinistry of Public Health. The termof service is six months and mayextend to one year.
B. Computer and Related Services
(a). Consultancy services related to the
installation of computer hardware(CPC 841)(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)and three years of experience inthese fields.S/DCS/W/CHN
Page 10Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) Software implementation services
(CPC 842)
- Systems and software consulting
services (CPC 8421)
- Systems analysis services
(CPC 8422)
- Systems design services
(CPC 8423)
- Programming  services
(CPC 8424)
- Systems maintenance services
(CPC 8425)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)and three years of experience in
these fields.
(c) Data processing services
(CPC 843)
- Input preparation services
(CPC 8431)
-  Data processing and tabulation
services (CPC 8432)
- Time-sharing services
(CPC 8433)(1) None
(2) None(3) None(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)and three years of experience in
these fields.
D. Real Estate Services
(a) Real estate services involving own
or leased property(CPC 821)(1) None
(2) None(3) None except for the following:
Wholly foreign-owned enterprises
are not permitted for high standard
real estate projects
2, such as
apartments and office buildings, butexcluding luxury hotels.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
                                                     
2 High standard real estate projects refer to the real estate projects with construction costs per unit two times more than the average construction costs per unit in the same city.S/DCS/W/CHN
Page 11Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) Real estate services on a fee or
contract basis(CPC 822)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in  
horizontal commitments.
F. Other Business Services
(a) Advertising Services
(CPC 871)(1) Only through advertising agents
registered in China who have the
right to provide foreign advertising
services.
(2) Only through advertising agents
registered in China who have theright to provide foreign advertisingservices.
(3) Foreign service suppliers are
permitted to establish advertisingenterprises in China only in the formof joint ventures with foreigninvestment no more than 49 per
cent.
Within two years after China'saccession, foreign majorityownership will be permitted andwithin four years after China'saccession, wholly foreign-owned
subsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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(c) Management Consulting services
(CPC 865)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.None, within six years of China'saccession, foreign firms will bepermitted to establish whollyforeign-owned subsidiaries.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(e) Technical testing and analysis
services
(CPC 8676)
and freight inspection
covered by
CPC 749,
excluding statutory inspection
services for freight inspection
services(1) None
(2) None(3) Foreign services suppliers which
have been engaged in inspection
services in their home countries for
more than three years are permittedto establish joint venture technicaltesting, analysis and freightinspection companies with no less
than US$ 350,000 in registered
capital.Within two years after China'saccession, foreign majorityownership will be permitted andwithin four years after China's
accession, wholly foreign-owned
subsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(f) Services incidental to agriculture,
forestry, hunting and fishing(CPC 881, 882)
m. Related scientific technical
consulting services(CPC 8675)(1) None
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Offshore oil-field services
geological, geophysical and otherscientific prospecting services(CPC 86751)Sub-surface surveying services(CPC 86752)(1) None
(2) None(3) Only in the form of petroleum
exploitation in cooperation with
Chinese partners
(4) Unbound except as indicated in  
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
- Onshore oil-field services (1) None
(2) None
(3) Only in the form of petroleum
exploitation in cooperation withChina National Petroleum Corp.(CNPC) in the designated areasapproved by the Chinesegovernment.
In order to carry out the petroleum
contract, the foreign service suppliershall establish a branch, subsidiaryor representative office within theterritory of the People's Republic of
China and go through registration
formalities in accordance with thelaws.  The domiciles of the saidoffices shall be determined throughconsultation with CNPC.The foreign service supplier shall
open its bank account with a bank
approved by the Chinese authoritiesto engage in foreign exchangebusiness within the Chineseterritory.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) The foreign service supplier shall
furnish CNPC accurately andpromptly with the reports on thepetroleum operations, and shallsubmit to CNPC the data andsamples as well as various
technological, economic, accounting
and administrative reports related topetroleum operations.CNPC shall have the ownership ofall of the data records, samples,
vouchers and other original
information acquired during theimplementation of the petroleumoperations.  The investment offoreign service suppliers shall bemade in US dollars or other hard
currencies.
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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(p) Photographic services
(CPC 875)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(q) Packaging services
(CPC 876)(1) None
(2) None
(3) Foreign service suppliers will be
permitted to establish joint venturein China.Within one year after China'saccession, foreign majorityownership will be permitted.
Within three years after China's
accession, foreign service supplierswill be permitted to establish whollyforeign-owned subsidiaries.
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal commitments.
(s) Convention services
(CPC 87909)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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(t) Translation and interpretation
services (CPC 87905)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows: three
years of experience in translation orinterpretation and a good commandof the working language(s).
- Maintenance and repair services(CPC 63, 6112 and 6122)- Maintenance and repair servicesof office machinery and equipmentincluding computers
(CPC 845 and 886)
- Rental and leasing services
(CPC 831, 832, excludingCPC 83202)(1) None
(2) None(3) Only in the form of jointventures. Within one year after China'saccession, foreign majority ownershipwill be permitted.
Within three years after China's
accession, wholly foreign-ownedsubsidiaries will be permitted.
For Rental and Leasing services,
service suppliers will have global assets
of US$ 5 million.
(4) Unbound, except as indicated inhorizontal commitments.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal commitments.S/DCS/W/CHN
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2. COMMUNICATION SERVICES
B. Courier Services
(CPC 75121, except for those
currently specifically reserved to
Chinese postal authorities by law)(1) None
(2) None
(3) Upon accession, foreign service
suppliers will be permitted toestablish joint ventures with foreigninvestment not exceeding 49 percent.Within one year after China's
accession, foreign majority
ownership will be permitted.Within four years after China'saccession, foreign service supplierswill be permitted to establish whollyforeign-owned subsidiaries
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal commitments.
C. Telecommunication Services3
Value-added Services
Including the following:(1) See mode 3
(2) None
(3) Foreign service suppliers will be(1) None
(2) None
(3) NoneChina undertakes the obligations
contained in the Reference Paper in
Annex I  attached hereto.
(h) Electronic mail
(i) Voice mail(j) On-line information and database
retrieval
(k) Electronic data interchange
(l) Enhanced/Value-added facsimile
services(including store and forward, storeand retrieve)permitted to establish joint venture
value-added telecommunicationenterprises, without quantitativerestrictions, and provide services inthe cities of Shanghai, Guangzhou
and Beijing. Foreign investment in
joint venture shall be no more than30 per cent.   
                                                     
3 China's commitments are scheduled in accordance with the following: Notes for Scheduling Basic Telecom Services Commitments (S /GBT/W/2/REV/1) and Market Access Limitations
on Spectrum Availability (S/GBT/W/3) attached hereto.
All international telecommunications services shall go through ga teways established with the approval of China's telecommunicat ions authorities, which will act as an independent
regulatory authority in accordance with the principles of paragraph 5 of the Reference Paper.
Further liberalization of this sector, incl uding with respect to the level of equity  participation permitted, will be discussed  in the services negotiations during the new round of trade talks.S/DCS/W/CHN
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(m) Code and protocol conversion
(n) On-line information and/or data
processing (including transaction
processing)Within one year after China's
accession, the areas will beexpanded to include Chengdu,
Chongqing, Dalian, Fuzhou,
Hangzhou, Nanjing, Ningbo,
Qingdao, Shenyang, Shenzhen,Xiamen, Xi'an, Taiyuan and Wuhanand foreign investment shall be nomore than 49 per cent.
Within two years after China's
accession, there will be no
geographic restriction and foreigninvestment shall be no more than50 per cent.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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Basic Telecommunication
Services- Paging Services(1) See mode 3
(2) None(3) Foreign service suppliers will be
permitted to establish joint venture
enterprises, without quantitativerestrictions, and provide services inand between the cities of Shanghai,Guangzhou and Beijing. Foreigninvestment in joint venture shall be
no more than 30 per cent.   
Within one year after China'saccession, the areas will beexpanded to include services in andbetween Chengdu, Chongqing,
Dalian, Fuzhou, Hangzhou,
Nanjing, Ningbo, Qingdao,Shenyang, Shenzhen, Xiamen,Xi'an, Taiyuan and Wuhan andforeign investment shall be no morethan 49 per cent.
Within two years after China's
accession, there will be nogeographic restriction and foreigninvestment shall be no more than 50per cent.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.China undertakes the obligations
contained in the Reference Paper inAnnex 1 attached hereto.S/DCS/W/CHN
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Mobile Voice and Data Services:
- Analogue / Digital / Cellular
Services
- Personal Communication Services(1) See mode 3
(2) None(3) Upon China's accession, foreign
service suppliers will be permitted
to establish joint venture enterprises,without quantitative restrictions, andprovide services in and between thecities of Shanghai, Guangzhou andBeijing. Foreign investment in the
joint venture shall be no more than
25 per cent.   Within one year after accession, theareas will be expanded to includeservices in and between Chengdu,
Chongqing, Dalian, Fuzhou,
Hangzhou, Nanjing, Ningbo,Qingdao, Shenyang, Shenzhen,Xiamen, Xi'an, Taiyuan and Wuhanand foreign investment shall be nomore than 35 per cent.
Within three years after accession,
foreign investment shall be no morethan 49 per cent.Within five years after accession,there will be no geographicrestriction.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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- Domestic Services
(a) Voice services
(b) Packet-switched data transmission
services
(c) Circuit-switched data transmission
services
(f) Facsimile services(g) Domestic private leased circuit
services
- International Services
(a) Voice services(b) Packet-switched data transmission
services
(c) Circuit-switched data  transmission
services
(f) Facsimile services(g) International closed user group
voice and data services (use of
private leased circuit service is
permitted)(1) See mode 3
(2) None(3) Within three years after China's
accession, foreign service suppliers
will be permitted to establish jointventure enterprises, withoutquantitative restrictions, and provideservices in and between the cities ofShanghai, Guangzhou and Beijing.
Foreign investment in the joint
venture shall be no more than 25 percent.Within five years after accession,the areas will be expanded to
include services in and between
Chengdu, Chongqing, Dalian,Fuzhou, Hangzhou, Nanjing,Ningbo, Qingdao, Shenyang,Shenzhen, Xiamen, Xi'an, Taiyuanand Wuhan. And foreign investment
shall be no more than 35 per cent.
Within six years after accession,there will be no geographicrestriction and foreign investmentshall be no more than 49 per cent.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
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D. Audiovisual Services
- Videos, including entertainment
software and
(CPC 83202), distribution services
- Sound recording distribution
services(1) None
(2) None(3) Upon accession, foreign services
suppliers will be permitted to
establish contractual joint ventureswith Chinese partners to engage inthe distribution of audiovisualproducts, excluding motion pictures,without prejudice to China's right to
examine the content of audio and
video products (see footnote 1).
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal commitments.Without prejudice to compliance with
China's regulations on the administrationof films, upon accession, China will allow
the importation of motion pictures for
theatrical release on a revenue-sharingbasis and the number of such importsshall be 20 on an annual basis.
- Cinema Theatre Services (1) None
(2) None
(3) Upon accession, foreign services
suppliers will be permitted toconstruct and/or renovate cinematheatres, with foreign investment nomore than 49 per cent.
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal commitments.S/DCS/W/CHN
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3. CONSTRUCTION AND
RELATED ENGINEERINGSERVICES
(CPC 511, 512, 5134, 514, 515,
516, 517, 5185)(1) Unbound*
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.Within three years after China'saccession to the WTO, wholly
foreign-owned enterprises will be
permitted. Wholly foreign-ownedenterprises can only undertake thefollowing four types of constructionprojects.(1) Unbound*
(2) None
(3) None except for the following:
(a) The existing registered capital
requirements for joint ventureconstruction enterprises are slightly
different from those of the domestic
enterprises.(b) Joint venture constructionenterprises have the obligation toundertake foreign-invested constructionprojects.
1. Construction projects whollyfinanced by foreign investmentand/or grants.2. Construction projects financedby loans of international financial
institutions and awarded through
international tend ering according to
the terms of loans.Within three years after China's accession
to the WTO, none.
3. Chinese-foreign jointlyconstructed projects with foreigninvestment equal to or more than 50
per cent; and Chinese-foreign jointly
constructed projects with foreigninvestment less than 50 per cent buttechnically difficult to beimplemented by Chineseconstruction enterprises alone.
                                                     
4 Including dredging services rela ting to infrastructure construction.
5 Coverage of CPC 518 is limited only to the rental and leasin g services of construction and/or demolition machines with operato r which are owned and used by foreign construction
enterprises in their supply of services.
* Unbound due to lack of technical feasibility.S/DCS/W/CHN
Page 23Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
4. Chinese invested construction
projects which are difficult to beimplemented by Chinese
construction enterprises alone can
be jointly undertaken by Chineseand foreign construction enterpriseswith the approval of provincialgovernment
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
4. DISTRIBUTION SERVICES
(as defined in Annex 2)
A. Commission Agents’ Services
(excluding salt, tobacco)
B. Wholesale Trade Services6
(excluding salt, tobacco)(1) Unbound
(2) None(3) Within one year after China's
accession to the WTO, foreign
service suppliers may establish jointventures to engage in thecommission agents' business andwholesale business of all imported
and domestically produced products,(1) Unbound
(2) None(3) NoneForeign-invested enterprises are
permitted to distribute their productsmanufactured in China, including the
products listed in the market access or
sector or sub-sector column, and providesubordinate services as defined inAnnex 2.
except those products thatimmediately follow. For theseproducts, foreign service supplierswill be permitted to engage in thedistribution of books, newspapers,
magazines, pharmaceutical
products, pesticides and mulchingfilms within three years afterChina's accession, and to engage inthe distribution of chemicalfertilizers, processed oil and crude
oil within five years after China's
accession.Foreign service suppliers are permitted to
provide the full range of relatedsubordinate services, including after salesservices, as defined in Annex 2, for theproducts they distribute.
                                                     
6 The restrictions on mode 1 shall not undermine the rights of WT O Members to the right to trade as stipulated in Chapter 5 of C hina's Protocol of accession to the WTO.S/DCS/W/CHN
Page 24Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
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Within two years after China's
accession to the WTO, foreignmajority ownership will be
permitted and no geographic or
quantitative restrictions will apply.
None, within three years afteraccession, except for chemicalfertilizers, processed oil and crudeoil within five years after accession.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
C. Retailing Services (excluding
tobacco).(1) Unbound except for mail order.
(2) None(3) Foreign service suppliers may
supply services only in forms of
joint ventures in five Special
Economic Zones (Shenzhen,Zhuhai, Shantou, Xiamen andHainan) and six cities (Beijing,Shanghai, Tianjin, Guangzhou,
Dalian and Qingdao). In Beijing and
Shanghai, a total of no more thanfour joint venture retailingenterprises are permittedrespectively. In each of the othercities, no more than two joint
venture retailing enterprises will be
permitted. Two joint ventureretailing enterprises among the fourto be established in Beijing may setup their branches in the same city(i.e. Beijing).(1) Unbound except for mail order.
(2) None(3) NoneForeign-invested enterprises may
distribute their products manufactured inChina, including those excepted productsas listed in the market access or sector or
sub-sector column, and provide
subordinate services as defined inAnnex 2.
Foreign service suppliers are permitted to
provide full range of related subordinate
services, including after sales services, asdefined in Annex 2, for the products theydistribute.S/DCS/W/CHN
Page 25Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Upon China's accession to the
WTO, Zhengzhou and Wuhan willbe immediately open to joint
venture retailing enterprises. Within
two years after China's accession tothe WTO, foreign majority controlwill be permitted in joint ventureretailing enterprises and allprovincial capitals, Chongqing and
Ningbo will be open to joint venture
retailing enterprises.
Foreign service suppliers will bepermitted to engage in the retailingof all products, except for theretailing of books, newspapers and
magazines within one year after
accession, the retailing ofpharmaceutical products, pesticides,mulching films and processed oil
within three years after accession
and retailing of chemical fertilizers
within five years after accession.
None, within three years after
accession, except for:.
- retailing of  chemical fertilizers,
within five years after accession;
and- those chain stores which sellproducts of different types andbrands from multiple suppliers withmore than 30 outlets. For suchchains stores with more than 30
outlets, foreign majority ownership
will not be permitted if those chainstores distribute any of theS/DCS/W/CHN
Page 26Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
following products: motor vehicles
(for a period of five years afteraccession at which time the equity
limitation will have been
eliminated), and products listedabove and in Annex 2a of theProtocol of China's WTOAccession. The foreign chain storeoperators will have the freedom of
choice of any partner, legally
established in China according toChina's laws and regulations.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
D. Franchising (1) None
(2) None
(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.
E. Wholesale or retail trade services
away from a fixed location.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none
7.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.
                                                     
7 See paragraph 309 of the Working Party Report.S/DCS/W/CHN
Page 27Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
5. EDUCATIONAL SERVICES
(Excluding special education
services e.g. military, police,
political and party school education)
A. Primary education services
(CPC 921, excluding nationalcompulsory education in CPC92190)
B. Secondary education services(1) Unbound
(2) None(3) Joint schools will be established,
with foreign majority ownership
permitted.(1) Unbound
(2) None(3) Unbound
(CPC 922, excluding nationalcompulsory education in CPC92210)(4) Unbound except as indicated in
horizontal commitments and thefollowing:(4) Qualifications are as follows:
-  possession of Bachelor's degree or
above;
C. Higher education services
(CPC 923)
D. Adult education services
(CPC 924)
E. Other education services
(CPC 929, including Englishlanguage training)foreign individual education service
suppliers may enter into China to
provide education services when
invited or employed by Chineseschools and other educationinstitutions.- and an appropriate professional title
or certificate, with two years’
professional experiences.
6. ENVIRONMENTAL SERVICES
(excluding environmental quality
monitoring and pollution sourceinspection)
A. Sewage Services
(CPC 9401)
B. Solid Waste Disposal Services
(CPC 9402)
C. Cleaning Services of Exhaust Gases
(CPC 9404)
D. Noise Abatement Services
(CPC 9405)(1) Unbound except for environmental
consultation services.
(2) None(3) Foreign services suppliers engaged
in environmental services are
permitted to provide services only in
the form of joint ventures, withforeign majority ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 28Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
E. Nature and Landscape Protection
Services(CPC 9406)
F. Other Environmental Protection
Services(CPC 9409)
G. Sanitation Services
(CPC 9403)
7. FINANCIAL SERVICES
A. All Insurance and Insurance-Related
Services8
(a) Life, health and 
pension/annuities insurance
(b) Non-life insurance
(c) Reinsurance
(d) Services auxiliary to insurance(1) Unbound except for :
(a) reinsurance;(b) international marine, aviation, and
transport insurance; and
(c) brokerage for large scale
commercial risks,  international
marine, aviation, and transportinsurance,  and reinsurance.
(2) Unbound for brokerage. Other,
none.(1) None
(2) None
(3)
A. Form of establishment
Foreign non-life insurers will bepermitted to establish as a branch oras a joint venture with 51 per centforeign ownership.
Within two years after China's
accession, foreign non-life insurerswill be permitted to establish as awholly-owned subsidiary; i.e., withno form of establishmentrestrictions.(3) None, except for:
- Foreign insurance institutionsshall not engage in the statutoryinsurance business.- Upon accession, a 20 per centcession of all lines of the primary
risks for non-life, personal accident
and health insurance business withan appointed Chinese ReinsuranceCompany shall be required; oneyear after accession, 15 per cent
                                                     
8 Any further authorization provided to foreign insurers after accession under more favorable c onditions than those contained in this schedule (including the extension of grandfathered
investments through branching, sub-branching or any other legal form), will be made available to other foreign service supplier s which so requested.S/DCS/W/CHN
Page 29Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Upon accession, foreign life insurers
will be permitted 50 per cent foreignownership in a joint venture with the
partner of their choice.shall be required; two years after
accession, ten per cent shall berequired; and three years after
accession, five per cent shall be
required; and four years afteraccession, no compulsory cessionshall be required.
The joint venture partners can freelyagree the terms of their engagement,provided they remain within the
limits of the commitments contained
in this schedule.
For brokerage for insurance of largescale commercial risks andbrokerage for reinsurance andbrokerage for international marine,
aviation, and transport insuranceand reinsurance: upon accession,joint venture with foreign equity nomore than 50 per cent will bepermitted; within three years after
China's accession, foreign equity
share shall    be increased to 51 percent; within five years after China'saccession, wholly foreign ownedsubsidiary will be permitted.  Forother brokerage services: Unbound.
Internal branching for an insurance
firm will be permitted consistentwith the phase out of geographicrestrictions.S/DCS/W/CHN
Page 30Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Geographic Coverage
Upon accession, foreign life and
non-life insurers, and insurance
brokers will be permitted to provide
services in Shanghai, Guangzhou,Dalian, Shenzhen and Foshan.Within two years after China'saccession, foreign life and non-lifeinsurers, and insurance brokers will
be permitted to provide services in
the following cities: Beijing,Chengdu, Chongqing, Fuzhou,Suzhou, Xiamen, Ningbo,Shenyang, Wuhan and Tianjin.
Within three years after China's
accession, there will be nogeographic restrictions.
C. Business Scope
Upon accession, foreign non-lifeinsurers will be permitted to provide
"master policy" insurance/insurance
of large scale commercial risks,which has no geographicrestrictions. In accordance withnational treatment, foreign insurancebrokers will be permitted to provide
"Master policy" no later than
Chinese brokers, under conditionsno less favourable.S/DCS/W/CHN
Page 31Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Foreign non-life insurers are
permitted to provide insurance ofenterprises abroad as well as
property insurance, related liability
insurance and credit insurance offoreign-invested enterprises inChina upon accession. Within 2years after China's accession,foreign non-life insurers will be
permitted to provide the full range
of non-life insurance services toboth foreign and domesticclients.
Foreign insurers are permitted toprovide individual (not group)insurance to foreigners and Chinese
citizens; within three years after
accession, foreign insurers will bepermitted to provide healthinsurance, group insurance andpension/annuities insurance to
foreigners and Chinese.
Upon accession, foreign insurers
will be permitted to providereinsurance services for life andnon-life insurance as a branch, joint
venture, or wholly foreign-owned
subsidiary, without geographic orquantitative restrictions on thenumber of licenses issued.S/DCS/W/CHN
Page 32Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
D. Licenses
Upon accession, licenses will be
issued with no economic needs testor quantitative limits on licenses.Qualifications for establishing aforeign insurance institution are as
follows:
-  the investor shall be a foreign
insurance company with more than30 years of establishmentexperience in a WTO member;
- it shall have a representative office
for two consecutive years in China;
- it shall have total assets of more
than US $5 billion at the end of theyear prior to application, except forinsurance brokers.
Insurance brokers shall have totalassets of more than US$ 500
million. Within one year after
accession, they shall have totalassets of more than US$ 400million. Within two years afteraccession, they shall have totalassets of more than US$ 300 million
Within four years after accession,
they shall have total assets of morethan US$ 200 million.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 33Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Banking and Other Financial
Services(excluding insurance and securities)
Banking services as listed below:
(a) Acceptance of deposits and other
repayable funds from the public;
(b) Lending of all types, including
consumer credit, mortgage credit,
factoring and financing ofcommercial transaction;
(c) Financial leasing;(1) Unbound except for the following:
- Provision and transfer of financial
information, and financial data
processing and related software by
suppliers of other financial services;
- Advisory, intermediation and other
auxiliary financial services on allactivities listed in subparagraphs (a)through (k), including credit
reference and analysis, investment
and portfolio research and advice,advice on acquisitions and oncorporate restructuring and strategy.
(2) None(1) None
(2) NoneFor financial leasing services, foreign
financial leasing corporations will bepermitted to provide financial leasing
service at the same time as domestic
corporations.
(d) All payment and money
transmission services, including
credit, charge and debit cards,
travellers cheques and bankersdrafts(including import and exportsettlement);
(e) Guarantees and commitments;
(f) Trading for own account or for
account of customers: foreignexchange.(3)
A. Geographic coverage
For foreign currency business, therewill be no geographic restrictionupon accession. For local currencybusiness, the geographic restrictionwill be phased out as follows: Upon
accession, Shanghai, Shenzhen,
Tianjin and Dalian; Within one yearafter accession, Guangzhou, Zhuhai,Qingdao, Nanjing and Wuhan;within two years after accession,Jinan, Fuzhou, Chengdu and
Chongqing; within three years after
accession, Kunming, Beijing andXiamen; Within four years afteraccession, Shantou, Ningbo,Shenyang and Xi'an. Within fiveyears after accession, all geographic
restrictions will be removed.(3) Except for geographic restrictions
and client limitations on local
currency business (listed in the
market access column), foreignfinancial institution may dobusiness, without restrictions orneed for case-by-case approval, with
foreign invested enterprises, non-
Chinese natural persons, Chinesenatural persons and Chineseenterprises.  Otherwise, none.S/DCS/W/CHN
Page 34Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Clients
For foreign currency business,
foreign financial institutions will be
permitted to provide services in
China without restriction as toclients upon accession.For local currency business, withintwo years after accession, foreignfinancial institutions will be
permitted to provide services to
Chinese enterprises. Within fiveyears after accession, foreignfinancial institutions will bepermitted to provide services to all
Chinese clients. Foreign financial
institutions licensed for localcurrency business in one region ofChina may service clients in anyother region that has been openedfor such business.
C. Licensing
Criteria for authorization to deal inChina's financial services sector aresolely prudential (i.e., contain noeconomic needs test or quantitativelimits on licenses). Within five years
after accession, any existing non-
prudential measures restrictingownership, operation, and juridicalform of foreign financialinstitutions, including on internalbranching and licenses, shall be
eliminated.S/DCS/W/CHN
Page 35Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Foreign financial institutions who
meet the following condition arepermitted to establish a subsidiary
of a foreign bank or a foreign
finance company in China:
- total assets of more than US $10
billion at the end of the year prior tofiling the application.
Foreign financial institutions who
meet the following condition arepermitted to establish a branch of aforeign bank in China:
- total assets of more than US $20
billion at the end of the year prior to
filing the application.
Foreign financial institutions whomeet the following condition arepermitted to establish a Chinese-foreign joint bank or a Chinese-
foreign joint finance company in
China:
- total assets of more than US $10
billion at the end of the year prior tofiling the application.
Qualifications for foreign financial
institutions to engage in localcurrency business are as follows:
- three years business operation in
China and being profitable for two
consecutive years prior to theapplication, otherwise, none.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 36Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Motor vehicle financing by non-
bank financial institutions(1) Unbound except for the following:
- Provision and transfer of financial
information, and financial data
processing and related software by
suppliers of other financial services;
- Advisory, intermediation and other
auxiliary financial services on allactivities listed in subparagraphs (a)through (k), including credit
reference and analysis, investment
and portfolio research and advice,advice on acquisitions and oncorporate restructuring and strategy.
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.
- Other financial services as listed
below:
(k) Provision and transfer of financial
information, and financial data
processing and related software bysupplier of other financial services;
(l) Advisory, intermediation and other
auxiliary financial services on allactivities listed in subparagraphs (a)
through (k), including credit
reference and analysis, investmentand portfolio research and advice,advice on acquisitions and oncorporate restructuring and strategy.(1) None
(2) None(3) None (Criteria for authorization to
deal in China's financial services
sector are solely prudential (i.e.,contain no economic needs test orquantitative limits on licenses).Branches of foreign institutions arepermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in  
horizontal commitments.S/DCS/W/CHN
Page 37Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Securities (1) Unbound except for the following:
- Foreign securities institutions may
engage directly  (without Chinese
intermediary) in B share business.
(2) None(3)(a) Unbound, except for the following:- Upon accession, representative
offices in China of foreign securities
institutions may become Special
Members of all Chinese stockexchanges.
- Upon accession, foreign service
suppliers will be permitted to
establish joint ventures with foreign
investment up to 33 per cent toconduct domestic securitiesinvestment fund managementbusiness. Within three years afterChina's accession, foreign
investment shall be increased to 49
per cent. Within three years afteraccession, foreign securitiesinstitutions will be permitted toestablish joint ventures, with foreignminority ownership not exceeding
1/3, to engage (without Chinese
intermediary) in underwriting Ashares and in underwriting andtrading of B and H shares as well asgovernment and corporate debts,
launching of funds.
(b). Criteria for authorization to deal in
China's financial industry are solelyprudential (i.e., contain no economicneeds test or quantitative limits onlicenses).
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 38Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
9. TOURISM AND TRAVEL
RELATED SERVICES
A. Hotels (including apartment
buildings) and Restaurants
(CPC 641-643)(1) None
(2) None
(3) Foreign services suppliers may
construct, renovate and operate hoteland restaurant establishments inChina in the form of joint ventureswith foreign majority ownership
permitted.
 None, within four years after
accession, wholly foreign-ownedsubsidiaries will be permitted.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal commitments and as
follows:
- Foreign managers, specialists
including chefs and seniorexecutives who have signed
contracts with joint venture hotels
and restaurants in China shall bepermitted to provide services inChina.(4) Unbound, except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 39Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Travel Agency and Tour Operator
(CPC 7471)(1) None
(2) None(3) Foreign services suppliers who meet
the following conditions are
permitted to provide services in theform of joint venture travel agenciesand tour operators in the holidayresorts designated by the Chinesegovernment and in the cities of
Beijing, Shanghai, Guangzhou and
Xi'an upon accession:
(a) a travel agency and tour operator
mainly engaged in travel business;
(b) Annual world-wide turnover
exceeds US$ 40 million.(1) None
(2) None(3) None except that joint ventures or
wholly-owned travel agencies and
tour operators are not permitted toengage in the activities of Chinesetravelling abroad and to Hong KongChina, Macao China and ChineseTaipei.
The registered capital of jointventure travel agency/tour operatorshall be no less than RMB 4 million.Within three years after China'saccession, the registered capital shall
be no less than RMB 2.5 million.
Within three years after accessionforeign majority ownership will bepermitted.
within six years after accession,
wholly foreign-owned subsidiaries
will be permitted and geographicrestrictions will be removed.  Thebusiness scope of the travel agency/tour operator is as follows:
(a) travel and hotel accommodation
services for foreign travellers whichcan be made directly withtransportation and hotel operators inChina covering such operations;S/DCS/W/CHN
Page 40Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) travel services and hotel
accommodation services fordomestic travellers which can be
made directly with transportation
and hotel operators in Chinacovering such operations;
(c) conducting of tours within China for
both domestic and foreign travellers,and
(d) travellers check cashing services
within China.
None within six years after
accession, there will be no
restriction on the establishment of
branches of the joint venture travelagency/tour operator and therequirement on registered capital offoreign-invested travel agency/touroperator will be the same as that of
(4) Unbound, except as indicated in 
 horizontal commitments.(4) Unbound, except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 41Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
11. TRANSPORT SERVICES
A. Maritime Transport Services
- International transport (freight and
passengers)
(CPC 7211 and 7212 less cabotagetransport services)(1)
(a) Liner shipping (including passenger
transportation): None
(b) Bulk, tramp and otherinternational shipping (includingpassenger transportation):  None
(2) None(3)(a) Establishment of registered
companies for the purpose of
operating a fleet under the nationalflag of the People's Republic ofChina:
- Foreign service suppliers are
permitted to establish joint venture
shipping companies.
- Foreign investment shall not exceed
49 per cent of the total registeredcapital of the joint venture.
- The chairman of board of directors
and the general manager of the joint
venture shall be appointed by theChinese side.
(b) Other forms of commercial presence
for the supply of internationalmaritime transport services:
Unbound(1)
(a) None
(b) None
(2) None
(3)(a) None
(b) UnboundThe following services at the port are
made available to international maritimetransport suppliers on reasonable andnon-discriminatory terms and conditions:
1. Pilotage2. Towing and tug assistance
3. Provisioning, fuelling and watering
4. Garbage collecting and ballast waste
disposal
5. Port Captain's services6. Navigation aids7. Shore-based operational services
essential to ship operations,
including communications, waterand electrical supplies
8. Emergency repair facilities9. Anchorage, berth and berthing
services.
(4)(a) Ship's crew: Unbound except
as indicated in  horizontalcommitments.
(b) Key personnel employed by
Commercial Presence as defined
under mode (3) (b) above: Unbound
except as indicated in  horizontalcommitments.(4)(a) Unbound except as indicated in
horizontal commitments.
(b) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 42Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
H. Auxiliary Services
(a) Maritime cargo-handling services
(CPC 741)
(c) Customs clearance services for
maritime transport(1) Unbound*
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(d) Container station and depot services (1) Unbound*
(2) None
(3) Only in forms of joint ventures, with
foreign majority ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.
(e) Maritime agency services (1) None
(2) None(3) Only in forms of joint ventures, with
foreign equity share no more than49 per cent.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
                                                     
* Unbound due to lack of technical feasibility.S/DCS/W/CHN
Page 43Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Internal Waterways Transport
(b) Freight transport
(CPC 7222)(1) Only international shipping in ports
open to foreign vessels shall bepermitted.
(2) None
(3) Unbound(4) Unbound except as indicated in
horizontal commitments.(1) Limitations as indicated under
market access column.
(2) None
(3) Unbound(4) Unbound except as indicated in
horizontal commitments
C. Air Transport Services(d) Aircraft repair and maintenance
services
(CPC 8868)(1) Unbound*
(2) None
(3) Foreign service suppliers are
permitted to establish joint ventureaircraft repair and maintenanceenterprises in China.  The Chineseside shall hold controlling shares orbe in a dominant position in the
joint ventures.  Licenses for the
establishments of joint ventures aresubject to economic needs test.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None
(3) The joint ventures have the
obligation to undertake business inthe international market.
(4) Unbound except as indicated in
horizontal commitments.
- Computer Reservation System
(CRS) services(1)(a) Foreign Computer Reservation
System, when having agreementswith Chinese aviation enterprisesand Chinese Computer ReservationSystem, may provide services to
Chinese aviation enterprises and
Chinese aviation agents byconnecting with Chinese ComputerReservation System.(1) None
                                                     
* Unbound due to lack of technical feasibility.S/DCS/W/CHN
Page 44Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) Foreign Computer Reservation
System may provide services torepresentative offices and sales
offices established in the destination
cities in China by foreign aviationenterprises which have the right toengage in business according to thebilateral aviation agreements.
(c) Direct access to and use of foreign
Computer Reservation System by
Chinese aviation enterprises andagents of foreign aviationenterprises are subject to approvalof the General Administration ofCivil Aviation of China (CAAC).
(2) None(3) Unbound(4) Unbound except as indicated in
horizontal commitments(2) None
(3) Unbound(4) Unbound except as indicated in
horizontal commitments.
E. Rail Transport Services
F. Road Transport Services
- Freight transportation by rail
(CPC 7112)
- Freight transportation by road in
trucks or cars(CPC 7123)(1) None
(2) None
(3) Only in the form of joint ventures,
with foreign investment not toexceed 49 per cent.For rail transport, within three yearsafter China's accession, foreign
majority ownership will be
permitted and within six years afterChina's accession, wholly foreign-owned subsidiaries will bepermitted.(1) None
(2) None
(3) NoneS/DCS/W/CHN
Page 45Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
For road transport, within one year
after China's accession, foreignmajority ownership will be
permitted, within three years after
China's accession, wholly foreign-owned subsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
H. Services Auxiliary to all Modes of
Transport
- Storage and warehousing services
(CPC 742)(1) Unbound
(2) None(3) Upon accession, only in the form of
joint ventures, with foreigninvestment not to exceed 49 per cent.Within one year after China's
accession, foreign majority
ownership will be permitted.
None  within three years of China's
accession, wholly foreign-owned
subsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitmentsS/DCS/W/CHN
Page 46Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Freight forwarding agency services
(CPC 748 and 749 excluding freightinspection)(1) None
(2) None(3) Upon accession, foreign freight
forwarding agencies which have at
least three consecutive yearsexperience are permitted to set upfreight forwarding agency jointventures in China, with foreigninvestment not to exceed 50 per cent;
within one year after China's
accession, foreign majorityownership will be permitted.Within four years after China'saccession, wholly foreign-owned
subsidiaries will be
permitted.The minimum registered capital ofthe joint venture shall be no less thanUS$ 1 million. Within four yearsafter accession, national treatment
will be accorded in this respect.
Operation term of the jointventures shall not exceed20 years.After one year operating in China,the joint venture can set up branches
when the registered capital of both
sides has been provided. AnotherUS$ 120,000 shall be added to theoriginal registered capital of the jointventure for the set-up of each branch.
Within two years after China's
accession to the WTO, thisadditional registered capitalrequirement will be implemented onthe national treatment basis.(1) None
(2) None(3) NoneS/DCS/W/CHN
Page 47Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
A foreign freight forwarding agency
may set up a second joint ventureafter its first joint venture has been in
operation for five years. Within two
years after China's accession toWTO, this requirement will bereduced to two years.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.S/DCS/W/CHN
Page 48
ANNEX 1
Reference Paper
Scope
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or service
that:
(a) are exclusively or predominantly provided by a single or limited number of suppliers;
and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant market for basic telecommunications
services as a result of:
(a) control over essential facilities;  or
(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone
or together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and  to access services provided by another supplier, where specific commitments areundertaken.S/DCS/W/CHN
Page 49
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its
own like services or for like services of non-affiliated service suppliers or for its
subsidiaries or other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rates that are transparent, reasonable, having regard
to economic feasibility, and sufficiently unbundled so that the supplier need not pay
for network components or facilities that it does not require for the service to beprovided;  and
(c) upon request, at points in addition to the network termination points offered to the
majority of users, subject to charges that reflect the cost of construction of necessary
additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
(a) at any time; or
(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection within
a reasonable period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind of universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and are not more
burdensome than necessary for the kind of universal service defined by the Member.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence;  and
(b) the terms and conditions of  individual licences.S/DCS/W/CHN
Page 50
The reasons for the denial of a licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and the procedures used by regulators shall beimpartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers
and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory
manner. The current state of allocated frequency bands will be made publicly available, but detailedidentification of frequencies allocated for specific government uses is not required.S/DCS/W/CHN
Page 51
WORLD TRADE S/GBT/W/2/Rev.1
16 January 1997
ORGANIZATION
(97-0173)
Group on Basic Telecommunications
Note by the Chairman
Revision
It has been suggested by a number of delegations  that it might be helpful to produce a brief and
simple note on assumptions applicable to the schedul ing of commitments in basic telecoms.  The
purpose of the attached note is to assist delegati ons in ensuring the transparency of their commitments
and to promote a better understanding of  the meaning of commitments.  This note is not intended to have
or acquire any bind ing legal status.
NOTES FOR SCHEDULING BASIC TELECOM SERVICES COMMITMENTS
1. Unless otherwise noted in the sector column, any basic telecom service listed in the sector
column:
(a) encompasses local, long distance and international services for public and non-public
use;
(b) may be provided on a facilities-basis or by resale;  and(c) may be provided through any means of technology (e.g., cable
1, wireless, satellites).
2. Subsector (g) --private leased circuit services -- involves the ability of service suppliers to sell or
lease any type of network capacity for the supply of services listed in any other basic telecom service
subsector unless otherwise noted in the sector colum n.  This would include capacity via cable, satellite
and wireless network.
3. In view of points 1 and 2 above, it should not be necessary to list cellular or mobile services as a
separate subsector. However,  a number of Memb ers have done so, and a number of offers have
commitments only in these subsectors.  Therefore, in order to avoid extensive changes in schedules, it
would seem appropriate for Members to mainta in separate entries for these subsectors.
                                                     
     1Including all types of cable.S/DCS/W/CHN
Page 52
WORLD TRADE S/GBT/W/3
3 February 1997
ORGANIZATION
(97-0415)
Original:  English
Group on Basic Telecommunications
CHAIRMAN'S NOTE
Market Access Limitations on Spectrum Availability
Many Members have entries in the market access column of their schedules indicating that
commitments are "subject to availability of spectrum/ frequency" or similar wording.  In light of the
physical nature of spectrum and the constraints inhe rent in its use, it is understandable that Members
may have sought to rely on these words to adequa tely protect legitimate spectrum management policies.
There is, however, doubt that words such as "subject to availability of spectrum/frequency" as listed in
the market access column of many Members' schedules achieve that objective.
Spectrum/frequency management is not, per se , a measure which needs to be listed under
Article XVI.  Furthermore under the GATS each Member has the right to exercise spectrum/frequency
management, which may affect the number of service suppliers, provided that this is done in accordance
with Article VI and other relevant provisions of  the GATS.  This includes the ability to allocate
frequency bands taking into account existing and future needs.  Also, Members which have made
additional commitment in line w ith the Reference Paper on regulatory principles are bound by its
paragraph 6.
Therefore, words such as "subject to availa bility of spectrum/frequency" are unnecessary and
should be deleted from Members' schedules.S/DCS/W/CHN
Page 53
ANNEX 2
Distribution Services
Distribution trade services are comprised of four main sub-sectors:
− commission agents services;
− wholesaling;
− retailing; and
− franchising.
The principal services rendered in each subsector can be characterized as reselling
merchandise, accompanied by a variety of related subordinated services, including inventorymanagement; assembly, sorting and grading of bulk lots; breaking bulk lots and redistributing into
smaller lots; delivery services; refrigeration, storage, warehousing and garage services; sales
promotion, marketing and advertising, installation an d after sales services including maintenance and
repair and training services. Distribution services are generally covered by CPC 61, 62, 63 and 8929.
Commission Agents' Services consist of sales on a fee or contract basis by an agent, broker or
auctioneer or other wholesalers of goods/merchandise and related subordinated services.
Wholesaling consist of the sale of goods/merch andise to retailers to industrial, commercial,
institutional, or other professional business users, or to other wholesalers and related subordinatedservices.
Retailing services consist of the sale of goods/merchandise for personal or household
consumption either from a fixed location (e.g., store, kiosk, etc.) or away from a fixed location and
related subordinated services.
Franchising services consist of the sale of the use of a product, trade name or particular
business format system in exchange for fees or ro yalties. Product and trade name franchising involves
the use of a trade name in exchange for fees or royalties and may include an obligation for exclusive
sale of trade name products. Business format franchising involves the use of an entire businessconcept in exchange for fees and royalties, and may include the use of a trade name, business plan,
and training materials and related subordinated services.S/DCS/W/CHN
Page 54
ANNEX 3
Insurance: Definition of "Master Policy"
Master policy is the policy that provides blanket coverage for the same legal person's property
and liabilities located in different places. Master policy may only be issued by the businessdepartment of an insurer's head office or that of its authorized province-level branch offices. Other
branches are not allowed to issue master policy.
Master policy business with the state key construction projects as its subject-matter insured.
If investors on the state key construction projects (i.e., projects that are so listed and annually
announced by the State Development and Planning Commission) meet either of the following
requirements, they may purchase master policy from insurers that are located in the same place as theinvestors' legal persons do.
The investment on the subject-matter insured is all from China (including the reinvestment
from the foreign-invested enterprises in China), a nd the sum of investment of the investor accounts
for over 15 per cent of the total investment.
The investment is partially from abroad, and partially from China (including the reinvestment
from the foreign-invested enterprises in China), a nd the sum of investment of the Chinese investor
accounts for over 15 per cent for the total domestic investment.
For those projects that draw investment all from abroad, every insurer may provide coverage
in the form of master policies.
Master policy covering different subjects-matter insured of the same legal person.  For those
subjects-matter insured located in different places and owned by the same legal person (excludingfinancial, railway, and post and telecommunications industries and enterprises), master policy may be
issued on the basis of either of the following conditions.
For the sake of payment of premium tax, insurance companies incorporated where the legal
person or accounting unit of the insurance applicant is located are allowed to issue master policy.
If over 50 per cent of insurance amount of the subject-matter insured is from a larger or
medium sized city, then insurers in that city are allowed to issue master policy, no matter whether the
insurance applicant's legal person or accounting unit is located in the city.
Motor insurance, credit insurance, employer liabilities insurance, statutory insurance, and
other insurance business excluded by the CIRC can not be underwritten or co-insured by insurerslocated other than where the subject-insured are located, or covered under a master policy.
__________S/DCS/W/CHN
Page 55LIST OF ARTICLE II EXEMPTIONS FOR THE PEOPLE'S REPUBLIC OF CHINA
Sector or Sub-sector Description of Measures Indicating
its Inconsistency with Article IICountries to Which the
Measures AppliesIntended Duration Conditions Creating the Need for the
Exemption
Maritime Transport
International TransportFreight and PassengersThe parties concerned may, through
bilateral agreement, establish entities toengage in usual business in China either asjoint ventures or wholly-owned subsidiariessubject to the Chinese laws on joint venturesand on foreign capital enterprises for shipsowned or operated by carriers of the partiesconcerned.Unspecified. Unforeseeable. Accordin g to present state of trade
between signatories.
Agreements of cargo sharing. Algeria, Argentina,
Bangladesh, Brazil,Thailand, USA, Zaire.Subject to the
effective durationof the agreementsconcerned.According to presen t state of trade
between signatories.
__________