WT/GC/W/773  
 
13 May 2019 
(19-3287) Page: 1/8 
General Council  
  Original: English  
 
  
CHINA 'S PROPOSAL ON WTO RE FORM1 
COMMUNICATION FROM C HINA 
The following communication, dated 13 May 2019, is being circulated at the request of the delegation 
of China.  
 
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The world 's economic landscape  is undergoing profound changes. With the rise of unilateralism and 
protectionism, economic globalization is encountering twists and turns. The authority and efficacy of 
the multilateral trading system are facing severe chal lenges. Against this backdrop, China supports 
efforts to make necessary reform to the WTO, in order to help it tackle the current crisis, respond 
to the needs of our times, safeguard the multilateral trading system and promote the building of an 
open world  economy. To this end, China released its position paper on WTO reform in November 
20182, outlin ing the basic principles and specific propositions of China on  this issue . This proposal is 
prepar ed on the basis of the above -mentioned position paper.  
 
1  INTRO DUCTION  
1.1  The Important Role of the WTO in Global Economic Governance  
1.1.  International trade is an important engine for  the growth of global economy. The multilateral 
trading system, with the WTO at its centre , is the cornerstone of economic globalization and f ree 
trade. As an important pillar of global economic governance, the WTO has , since its inception,  made 
remarkable  contributions to expanding international trade, promoting full employment , stimulating 
economic growth and raising standards of living . 
1.2.  In the past 24 years, the membership of the WTO has kept increasing  with the total trade 
volume of its Members account ing for 98% of world 's total , which fully demonstrates the 
representativeness  of the multilateral trading system  and its appeal to the mem bership . World 
merchandise export s have increased from US$ 4.3 trillion in 1994 to US$ 17.7 trillion in 20173, lifting 
hundreds of millions of people out of poverty around the world and significantly rais ing the living 
standards of citizens of relevant cou ntries and regions.  
1.3.  In the fields of trade liberalization and facilitation, the WTO has made a number of  important 
achievements. The conclusion and full implementation of the Agreement on Trade Facilitation  are 
expected to  reduce the costs of global trade by 14% and would generate US$  1 trillion  in additional 
global trade each year.4 The full elimination of agricultural export subsidies is conducive to levelling  
the playing field for agricultural trade. The elimination of tariffs on IT products has increase d the 
                                                
1 This proposal is submitted with a view to facilitating the discussions on WTO reform. China stands ready 
to engage in discussions with other WTO Members. The views expressed in this proposal are without prejudice 
to the position and proposals of China in the future on the specific issues covered herein.  
2 For the full text of China' s Position Paper on WTO Reform, please visit the official website of the Ministry 
of Commerce of the P. R. China at http://sms.mofcom.gov.cn/article/cbw/2018/20181202817611.shtml . 
3 For figures of 1994 and 2017, please see International Trade Statistics  1995 and World Trade Review 
2018 respectively.  
4 See http://www.wto.org/english/tratop_e/tradfa_e/tradfa_e.htm . WT/GC/W/773  
 
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  export of the products covered  from US$ 549 billion in 1996 to US$ 1.7 trillion in 2015. All these 
have contribut ed tremendously to  the recovery and growth of world economy.  
1.4.  In the field of dispute settlement, 574 dispute cases have been filed with  the WTO dispute 
settlement mechanism by the end of 2018.5 The mechanism has been playing an important role in 
resolving trade disputes, preserving  the balance of the rights and obligations of the Members under 
the WTO agreements and providing security  and predictability to the multilateral trading system.  
1.5.  In the field of trade policy review and monitoring, more than 430  trade policy reviews (TPRs) 
have been conducted, covering 155 of the 164 WTO Members. TPRs have significantly increased the 
transparency of Members ' trade policies and deepened their understanding of each other 's trade 
regime.  
1.2  The Unprecedented Existential Crisis of the WTO  
1.6.  The recent trend of rising unilateral ist and protectionist practices have dealt blows to 
multilateralism  and the system of free trade. The  enduring  blockage of the appointment process of 
Appellate Body members risks paralyz ing the Appellate Body by the end of 2019, which will 
significantly affect  the effective operation of the dispute settlement mechanism. The abuse of 
national security exception, unilateral measures inconsistent with the WTO rules, as well as misuse 
or abuse of existing trade remedy measures have severely damaged the rule s-based, free and open 
international trade order . Moreover , such practices have  adversely affected the interests of the WTO 
Members, especially the developing Members , and undermined the authority and efficacy of the 
WTO. As a consequence, the Organization is facing an unprecedented existential crisis.  
1.7.  The WTO itself is not impeccabl e. The objectives set out in the Marrakesh Agreement 
Establishing the World Trade Organization  have not yet been fully attained. As for its function of 
negotiations,  progress has been slow on issues such as agriculture, development and rules , although 
it has been seventeen years since the launch of the Doha Development Round.  Such new issues as 
electronic commerce and investment facilitation that reflect the reality of international economy and 
trade in the 21st century have not been timely  addressed. By co ntrast, remarkable progress and 
achievement s have been made in the field of trade liberalization and facilitation through bilateral 
and regional trade agreements. As for WTO's function of trade policy review and monitoring, 
transparency of trade policies o f its Members awaits to  be enhanced and the operational efficiency 
of the WTO stands in need of improvement . 
1.8.  It is against this backdrop  that some WTO Members have recognized the urgency and necessity 
of WTO reform . The G20 Summit held in Buenos Aires in 2018 expressed  support for necessary 
reform of the WTO so as to help the Organization to better play its role. 
1.3  China 's Overall Position on WTO Reform  
1.9.  China has been an active participant, staunch supporter and major  contributor in the 
multilateral trading system. It has comprehensively participated in all areas of work of the WTO, 
proactively promoted liberalization and facilitation of trade and investment, respected and fully 
implemented dispute settlement rulings , and deeply  engaged in trade policy reviews . China has 
spared no efforts towards  the integration of developing Members into the multilateral trading system. 
The white paper entitled  China and the World Trade Organization  published by the Chinese 
government in June 2018 provides a full account of China 's position on the WTO and the multilateral 
trading system as well as  China 's positive contributions to the development of world economy and 
trade.  
1.10.   China supports necessary reform of the WTO so as to overcome  its existential crisis , enhanc e 
its authority and efficacy , and increas e its relevance in terms of global economic governance. T o this 
end, China has put forward in November  2018 the following three basic principles on WTO reform. 
First, the reform shall pre serve  such core values of the multilateral trading system  as non-
discrimination and openness, with a view to creating a stable and predictable environment for 
international trade. Second, the reform shall safeguard the development interests of developing 
Members . In particular, it is imperative  to eliminat e development deficit in the existing WTO rules , 
                                                
5 See https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm . WT/GC/W/773  
 
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  resolv e the difficulties encountered by developing Members in their integration into economic 
globalization  and help attain  the Sustainable Development Goals of United Nations 2030 Agenda. 
Third, the reform shall follow the practice of decision -making by consensus. The specific issues 
subject to reform, work agenda and final results should be agreed upon after extensive 
consul tations, on the basis of  mutual respect, broad participation  and dialogues on an equal footing.  
1.11.   China believes that the multilateral process is the  most desirable  channel to promote 
liberalization and facilitation of trade and investment  on a global scale . At the same time, 
opportunities and challenges have been brought about by the new wave of science and technology 
revolution and transformational power of digital economy. In this context, we may consider an open, 
transparent, inclusive, pragmatic and fle xible approach to explore  a new set of rules on international 
trade and investment, responding to the developments of the times and the needs of business 
communities. In this process, the interests and capacity constraints of developing Members  should 
be taken into full account.  
2  AREAS FOR ACTION  
2.1.  China believes the necessary reform of the WTO should cover the following four areas for 
concrete actions: First, resolving the crucial and urgent issues threatening the existence of the WTO; 
Second, increasing WTO's relevance in global economic governance; Third, improving the 
operational efficiency of the WTO; and Fourth , enhancing  the inclusiveness of the multilateral trading 
system.  
2.1  RESOLVING  THE CRUCIAL AND URGENT ISSUES THREATENING THE EXISTENCE OF 
THE WTO  
2.1.1   Brea king the Impasse of the Appointment Process of Appellate Body members  
2.2.  Issue and Problem.  As a pillar of the WTO, the dispute settlement mechanism plays a crucial 
role in providing security  and predictability to the multilateral trading system. If the bloc kage of the 
appointment process of Appellate Body members  is to continue , there will be only one Appellate 
Body member left in office by December 2019. Such a situation would severely threaten the proper 
functioning of the dispute settlement mechanism  and therefore  pose an imminent and institutional 
risk to the Organization.  
2.3.  Objective and Task.  The appointment process of Appellate Body members should be initiated  
without delay to fill the vacancies so as to  ensure  the effective functioning of the dispute settlement 
mechanism.  
2.4.  Action and Proposal. China, together with some other WTO Members, submitted joint 
proposals6 on the Appellate Body reform , urging  Members to actively participate in the informal 
process under the auspices of the General Council and  engage in substantive text -based discussions . 
These efforts are made to  address such concerns of certain Members  as the transitional rules for 
outgoing Appellate Body members, 90 -day timeframe for appellate proceedin gs, the status  of 
municipal law, findings unnecessary for dispute resolution and the issue of precedent . The proposals 
also emphasized the need to  preserve and reinforce the independence and impartiality of the 
Appellate Body  and to  initiate the appointmen t process of the Appellate Body members without any 
further delay .  
2.1.2   Tightening Disciplines to Curb the Abuse  of National Security Exception  
2.5.  Issue and Problem.  Certain Member ha s imposed unwarranted  tariffs on steel and aluminium  
products and threatened to raise tariffs on auto and auto parts  to protect its domestic industries,  
using national security  as a pretext . It has also improperly extend ed the coverage of export control 
measures and administered  such measures in a non -transparent or unjust  manner. The se actions 
have disturbed the international trade order  and international market , impeded normal  technological 
exchange s and applications , impaired  the interests of Members concerned and undermine d the 
relevant rules of the WTO.  
                                                
6 See WT/GC/W/752/Rev.2, WT/ GC/W/753/Rev.1 . WT/GC/W/773  
 
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  2.6.  Objective and Task.  The WTO Members should act in  good faith and exercise restraint in 
invoking provisions on national security exceptions. Such provisions need to  be further clarified and 
regulated within the WTO frame work. 
2.7.  Action and Proposal. It is necessary to enhance the notifi cation requirements on measures 
such as imposing import tariffs  on the ground  of national security exceptions , and carry out 
multilateral review s on such measures. Meanwhile , WTO Members whose interests have been 
affected should be entitled to take prompt  and eff ective  remed ies, so as to maintain the balance of 
their rights and obligations under the WTO.  
2.1.3   Tightening Disciplines to Curb Unilateral Measures Inconsistent with WTO Rules 
2.8.  Issue and Problem.  Certain Member has taken unilateral ist measures of raising trade barriers 
and imposing import tariffs in an arbitrary way  and without authorization  from the WTO . In addition,  
it has imposed economic sanctions on other countries  and extended 'secondary sanctions ' to 
overse as business activities of  third-country nationals or companies , without authorization from the 
United Nations or legal basis under international treaties . Such actions have severely violated 
international commitments and the WTO rules. Although  such unilateral ist measures  are manifestly 
WTO-inconsistent and have caused serious consequences, the current WTO rules offer no  timely or 
effective discipline and remedy . 
2.9.  Objective and Task. It is necessary to effectively curb such unilateral ist measures, 
reinvigorate the efficiency and authority of the WTO, safeguard the rule s-based multilateral trading 
system and protect the legitimate rights  of the WTO Members.  
2.10.   Action and Proposal. Such unilateral ist measures should be constrained  through, inter alia , 
enhancing the multilateral review mechanism , authorizing the Members affected to take prompt  and 
effective provisional remedies in cases of urgency and accelerating relevant dispute settlement 
proceedings.  
2.2  INCREASING  WTO 'S RELEVANCE IN GLOBAL ECONOMIC GOVERNANCE  
2.2.1   Rectifying the Inequity  in Rules on Agricultur e 
2.11.   Issue and Problem.  Significant inequity, imbalance and unfairness persist  in current rules  
on agricultur e, in particular the provision s regarding  the Aggregate Measurement of Support (AMS). 
A number of developed Members enjoy high level s of AMS  and therefore are able to  provide much 
higher levels of support than the ir de minimis  level with respect to a number of specific products , 
seriously  distorting  agricultural production and  trade . By contrast, the majority of developing 
Members ha ve no  entitlement to AMS . Furthermore, they could not implement domestic public 
stockholding programmes necessary for food security purposes.  
2.12.    Objective and Task. It is necessary to rectify  the inequity in rules on agricultur e so as to 
promote agricultural trade and create a level playing field  for developing Members . It is also 
necessary to enhance their abilities to safeguard food security and livelihood security  so that they 
could  benefit more from the multilateral trading system.  
2.13.   Action and Proposal.  The AMS ent itlements of developed Members should be eliminated in 
gradual instalments . In the meanwhile,  Members should reach an agreement on the permanent 
solution for public stockholding for food security  purposes . 
2.2.2   Improving Trade Remedies Rules  
2.14.   Issue and Problem. At present, there exist  a number of gaps and ambiguities in existing 
multilateral trade remedy rules . Misuse and abusive application of trade remedy measures abound.  
Discriminatory practices based on country -of-origin and types of enterprises have been on the rise . 
The special situations  of developing Members and SMEs as well as the public interests are not 
accorded  adequate or appropriate consideration. As a result , trade remedy rules have failed to exert 
their due functions  or respond  to the needs of the development of the multilateral trading system  to 
the detriment of  the normal course of international trade.  WT/GC/W/773  
 
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  2.15.   Objective and Task.  It is necessary to further clarify and improve relevant  WTO rules on 
subsid ies, countervailing measures and anti -dumping measur es. We should curb the misuse and 
abuse  of trade remedies, eliminate  discriminatory rules and practices , and give consideration to the 
special situations of developing Members  and SMEs as well as public interests. In this way , the spirit 
and principles of relevant agreements of the WTO could be more faithfully honoured  and free trad e 
and levelling  playing field  better  safeguarded . Such improvements of rules could answer to  the needs 
of the world and the WTO Members for sustainable development.  
2.16.   Action and Proposal. First, the provisions on non -actionable subsidies should be reinstated  
and their coverage expand ed. Second, efforts need to be made to clarify and improve relevant rules 
on and relating to price comparison in anti -dumping proceedings, improve the rules on sunset review 
and explore the possibility of harmonizing the rules on anti -circumvention. Third, the subsidies and 
countervailing rules relating to subsidy identification, calculation of benefits conferred and 
application of facts avai lable should be clarified and improved  to mitigate abusive applications of 
countervailing measures . Fourth, transparency and due process of anti -dumping and countervailing 
investigations should be improved and the assessment of their effectiveness and comp liance be 
reinforc ed. Fifth, more consideration  should be given  to the  special  situations of  developing Members  
and SMEs as well as  public interests.  
2.2.3   Accelerating  Negotiations on Fisheries Subsidies  
2.17.   Issue and Problem . The negotiations on fisheries subsidie s are among the areas where  the 
WTO could help achieve  the Sustainable Development Goals  of the United Nations 2030 Agenda . 
Swift conclusion of th e negotiation s is important . 
2.18.   Objective and Task.  It is necessary to conclude the negotiations on fisheries sub sidies in 
accordance with the decision adopted by the 11th WTO Ministerial Conference. The agreement to be 
reached should provide comprehensive and effective disciplines to prohibit certain forms of fisheries 
subsidies contributing to overcapacity and over fishing and to eliminate subsidies contributing to 
illegal , unreported and unregulated (IUU) fishing.  
2.19.   Action and Proposal.  China supports the 2019 Work Program me drafted by the Chairperson 
of the Negotiating Group on Rules and will continue to actively and constructively engage in 
consultations of various forms. The negotiations should be c onducted  in a pragmatic and consensus -
seeking manner . Transparen cy and incl usiveness should be ensured in these consultations.  
2.2.4   Advancing  Joint Initiative  on Trade-related Aspects of E-commerce in an Open and 
Inclusive Manner  
2.20.   Issue and Problem . E-commerce has created unprecedented opportunities for international 
trade  and economi c growth. Meanwhile, the digital divide still needs to be bridged. Issues such as 
cyber security  and data security have gained in prominence. M embers, particularly developing 
Members, have their own challenges in developing E -commerce.  And they have diversi fied interests 
and concerns with respect  to international rules on E-commerce.  However, in the past  two decades, 
the WTO did not launch the rule-making  process on trade -related aspects of E -commerce.  
2.21.   Objective and Task.  Business communities have made stron g call for  E-commerce rules.  It 
is important for Members to work on pro -multilateral rules.  Such efforts  will be conducive to  
bolstering  inclusive trade, revitaliz ing the WTO negotiating function  and enhancing  the relevance of 
the multilateral trading syst em. These  rules, once agreed upon, would create new opportunities of 
international trade  for Members, particularly developing Members, as well as SMEs, women and 
youth . With these rules in place, E-commerce will generate more benefit s for business es, consumers 
and global  economy.  
2.22.   Action and Proposal. China and 75 other WTO Members issued a joint statement on E -
commerce, confirming their intention to commence negotiations on trade -related aspects of E -
commerce on the basis of existing WTO agreements a nd framework. China proposes the following 
actions: First, conduct the rule -making process in an open, transparent, inclusive and flexible 
manner, and welcome participation of all Members . Second, uphold  the development dimension  and 
focus on cross -border trade in goods enabled by the Internet, as well as on  such related services as 
payment and logistics services ; and establish rules on cross-border E-commerce  facilitation , WT/GC/W/773  
 
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  electronic signature, electronic authentication, and online consumer protection etc.  Third, formulate 
provisions on development  cooperation so as to strengthen technical assistance and capacity 
building for developing Members, particularly least-developed countr y Members . Fourth, respect 
Members ' right to regulate and accommodate  specific  concerns of developing Members . Fifth, strike 
the balance among  technological  advances , business development and such legitimate public policy 
objectives as Internet  sovereignty, data security and privacy protection, so as to  reach a balanced 
and pragmatic outcome acceptable to all through equal consultations. Sixth, continue in-depth 
discussions in relevant WTO bodies  pursuant to the Work Programme on Electronic Commerce  in 
1998.  
2.2.5   Promoting Discussions on New Issues  
2.23.   Issue and Problem . Trade and investment are closely  interlinked in today 's world underlined 
by the in -depth development of  global value chains. Investment facilitation measures play an 
increasingly important role in improving business environment, attracting inbound  cross-border 
investment and promoting trade and sustainable development. However, cross -border investment 
by businesses is still hindered by opaque policies and government inefficiencies . Micro, small and 
medium sized enterprises (MSMEs) make  significant contributions to job creation and technology 
innovation . However, they are confronted  with challenges in connecting to global value chains, such 
as limited access to information and high costs of trade financing.  
2.24.   Objective and Task.  It is crucial  to meet the development needs of business communities 
and to promote  inclusive trade , so as to ensure  the multilateral trading system  keep pace with the 
times.  
2.25.   Action and Proposal. Continued efforts should be made to bring the discussions on relevant 
issues into a new phase while adhering to the principles of openness, transparency and inclusiveness. 
On investment facilitation, a dedicated mechanism should be established to enable Members to carry 
out efficient policy coordination and explore the establishment of mu ltilateral framework . This 
process should focus on such elements as improving transparency, streamlining  administrative 
procedures and enhancing international cooperation, while paying due respect to Members ' right to 
regulate. With the process centring  on development , developing Members  will benefit from technical 
assistance and capacity  building . On MSMEs,  those enterprises could better participate in and benefit 
more from international trade with improved  access to information, easier corporate financ ing and 
reduc ed trade costs.  
2.3  IMPROVING THE OPERATIONAL EFFICIENCY OF THE WTO  
2.3.1   Improving  the Compliance of N otification Obligation  
2.26.   Issue and Problem . At present, Members ' overall fulfilment  of notification obligations still 
falls short of the requirements u nder various WTO agreements. Due to their  limited capacit y and 
other constraints , some Members could not submit the notifications on time . Meanwhile , the quality 
of counter -notifications submitted by some Members still need s further improvement.  
2.27.   Objective and Task.  It is imperative  to enhanc e the transparency of Members ' trade policies . 
Greater transparency  will help create an open, stable, predictable, equitable and transparent 
international trading environment , and raise Members ' confidence in the multilateral trading system.  
2.28.   Action and Proposal. First, developed Members should lead by example  in submitting 
comprehensive , timely and accurate notifications. Second, Members should improve the quality of 
their counter -notifications. Third, Members should increase  exchange of their experience s on 
notifications. Fourth, the WTO Secretariat  needs to  update Technical Cooperation Handbook on 
Notifications7 as soon as possible  and intensify training in this regard. Fifth, developing Members  
should also endeavour  to improve their compliance  of notification obligations. Technical assistance 
and capacity building should be provided  to developing Members, in particular  LDCs, if they are 
unable to fulfil notification obligations on time .  
                                                
7 See WT/TC/NOTIF/INF/3 . WT/GC/W/773  
 
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  2.3.2   Improvi ng the Efficiency of WTO Subsidiary B odies  
2.29.   Issue and Problem . The potentials and functions of the subsidiary bodies of the WTO have 
not been fully tapped . Some issues on the agenda of the regular meetings have not be en resolved 
despite  prolonged discussions  for years . There is considerable room for improving the operational 
efficiency  of the subsidiary bodies . 
2.30.   Objective and Task. It is important  to elevate WTO 's role in global economic  governance . 
In this regard, its subsidiary bodies  and the Sec retariat should find ways to better respond to the 
interest s and needs of Members.  
2.31.   Action and Proposal.  Viable options should be explored to improve the efficiency of the  WTO 
in the following  areas , among others: First, improve the rules of procedures of the subsidiary bodies . 
Second, adjust  the frequency of regular meetings in light of the specific  situation of each bod y. Third,  
encourage t he Secretariat to conduct more research on important economic and trade issues , 
enhance cooperation with other interna tional organizations , and help developing Members address 
and resolve specific trade concerns at regular meetings . Fourth,  further improve the representat ion 
of developing Members in  the Secretariat  and steadily increase  their share in the staff . 
2.4  STRENGTHENING THE INCLUSIVENESS OF THE MULTILATERAL TRADING SYSTEM  
2.4.1   Respecting the Right of S pecial and Different ial Treatment  of Developing Members  
2.32.   Issue and Problem . Development issue is at the centre  of WTO work. The WTO agreements 
have set forth  specia l and different ial treatment (S&D) provisions for developing Members. However, 
most of these provisions are best -endeavour  clauses in nature and their implementation  leaves much 
to be desired . Furthermore, some Members  are challeng ing the entitlement of de veloping Members 
to S&D , disregard ing the systemic  gaps between developing and developed Members . They  even 
request  some developing Members to assume the same obligations as those of developed Members.  
2.33.   Objective and Task . Development remains an important theme  of the times . It is crucial  for 
the WTO to safeguard the rights of developing Members to S&D and make S&D provisions more 
precise, effective and operational. This will be conducive to  reduc ing development deficit in trade 
rules and contributing  to the achievement of the Sustainable Development Goals  of the United 
Nations 2030 Agenda . 
2.34.   Action and Proposal.  China, together with some other WTO Members, has submitted joint 
proposal8 on S&D and calls for continued preservation of the rights of develop ing Members to S&D. 
China further proposes the following: First, enhance the implementation and monitoring of existing 
S&D provisions, particular ly the implementation of Duty -Free and Quota -Free treatment and the 
Preferential Treatment to Services and Serv ice Suppliers of the LDCs . Second, provide more targeted 
and concrete  technical assistance to ensure the integration of developing Members into the 
multilateral trading system  and global value chains . Third, advance  the negotiations on S&D 
provisions in ac cordance with the Doha Ministerial Declaration. Fourth, accord adequate and effective 
S&D treatment to developing Members in future negotiations on trade and investment rules. Fifth, 
encourage developing Members to actively  assume  obligations commensurate with their level of 
development and economic capabili ty. 
2.4.2   Adhering to the Principle of Fair Competition in Trade and Investment  
2.35.   Issue and Problem . State -owned -enterprises (SOEs) engaged in commercial competition 
are equal players  in the market as other types of enterprises . However, some  Members  have come  
to set different iated rules on the basis of ownership of enterprises. For example, they label 
indiscriminately  all SOEs as 'public bodies ' within the meaning of the Agreement of Subsidies and 
Countervai ling Measures , set forth  additional transparency requirements and disciplines for SOEs, 
and discriminate against SOEs in foreign investment  security review. Such practices are detrimental 
to creating an institutional framework for fair competition and, if left unchecked, would give rise to 
more discriminatory rules in the future . 
                                                
8 See WT/GC/W/765/Rev. 2. WT/GC/W/773  
 
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  2.36.   Objective and Task . It is imperative  to respect the diversity of development models among 
Members and promote fair competition in the fields of trade and investment.  Such efforts w ould 
strengthen the inclusiveness of the multilateral trading system . 
2.37.   Action and Proposal. Actions sh all be taken in the WTO to uphold the principle of fair 
competition , so as to ensure that enterprises of different ownerships operate in  an environment of 
fair competition . China proposes the following: First,  during discussion s on subsidy  disciplines, no 
special or discriminatory disciplines should be instituted  on SOEs in the name  of WTO reform. 
Second, foreign investment security reviews shall be conducte d in an impartial manner and follow 
such principles as transparency and due process. Non -discriminatory treatment shall be given to like 
investment by enterprises with different  ownership structures.  
 
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