WT/TPR/M/375/Add.1  
 
1 February 2019 
(19-0583) Page: 1/729 
Trade Policy Review  Body  
11 and 13 July 2018  Original: English/ anglais/inglés  
Spanish/espagnol/español  
 
  
TRADE POLICY REVIEW  
CHINA 
MINUTES OF THE MEETI NG 
Addendum  
Chairperson: H.E. Mr. Eloi Laourou (Benin ) 
This document contains the advance written questions and additional questions by WTO  
Members, and replies provided by  China .1 
 
 
Organe d 'examen des politiques commerciales  
11 et 13 juillet  2018 
EXAMEN DES POLITIQUE S COMMERCIALES  
CHINE 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E. M. Eloi Laourou (B énin) 
Le présent document contient les questions écrites communiquées à l 'avance par les 
Membres de l 'OMC, leurs questions additionnelles, et les réponses  fournies par  la Chine .1 
 
 
Órgano de Examen de las Políticas Comerciales  
11 y 13 de Julio de 2018 
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
CHINA 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo. Sr. Eloi Laourou (Benin)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por China .1 
 
_______________
                                                
1 In English and Spanish  only/En anglais et espagnol seulement/En inglés y español solamente.  WT/TPR/M/3 75/Add.1  
 
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                 TABLE OF CONTENTS  
 
EL SALVADOR  ................................ ................................ ................................ ...................  4 
PAKISTAN  ................................ ................................ ................................ ........................  6 
NIGERIA  ................................ ................................ ................................ ..........................  8 
SWITZERLAND  ................................ ................................ ................................ ...............  11 
KAZAKHSTAN  ................................ ................................ ................................ .................  20 
CANADA  ................................ ................................ ................................ .........................  21 
CANADA – FOLLOW -UP ................................ ................................ ................................ .. 71 
MONGOLIA  ................................ ................................ ................................ .....................  79 
MONGOLIA – FOLLOW -UP ................................ ................................ ..............................  82 
UNITED STATES  ................................ ................................ ................................ .............  83 
UNITED STATES – FOLL OW-UP ................................ ................................ .....................  164  
MEXICO  ................................ ................................ ................................ ........................  190  
JAPAN  ................................ ................................ ................................ ..........................  249  
JAPAN – FOLLOW -UP ................................ ................................ ................................ ... 292  
LAO PDR  ................................ ................................ ................................ .......................  313  
AUSTRALIA  ................................ ................................ ................................ ..................  314  
EUROPEAN UNION  ................................ ................................ ................................ ....... 333  
EUROPEAN UNION – FOLLOW -UP ................................ ................................ .................  383  
UKRAINE  ................................ ................................ ................................ ......................  400  
HONG KONG, CHINA  ................................ ................................ ................................ ..... 407  
HONG KONG, CHINA – FOLLOW -UP ................................ ................................ ..............  410  
CAMBODIA – BATCH 1  ................................ ................................ ................................ .. 411  
CAMBODIA – BATCH 2  ................................ ................................ ................................ .. 412  
COLOMBIA – BATCH 1  ................................ ................................ ................................ .. 427  
COLOMBIA – BATCH 2  ................................ ................................ ................................ .. 435  
COSTA RICA  ................................ ................................ ................................ .................  437  
NEW ZEALAND  ................................ ................................ ................................ .............  441  
ARGENTINA  ................................ ................................ ................................ ..................  449  
ISRAEL  ................................ ................................ ................................ .........................  456  
TRINIDAD AND TOBAGO  ................................ ................................ ..............................  459  
SINGAPORE  ................................ ................................ ................................ ..................  462  
RUSSIAN FEDERATION  ................................ ................................ ................................ . 469  
CHILE – BATCH 1  ................................ ................................ ................................ .........  491  
CHILE – BATCH 2  ................................ ................................ ................................ .........  499  
INDIA – BATCH 1  ................................ ................................ ................................ .........  501  
INDIA – BATCH 2  ................................ ................................ ................................ .........  527  
BRAZIL – BATCH 1  ................................ ................................ ................................ ....... 532  
BRAZIL – BATCH 2  ................................ ................................ ................................ ....... 560  WT/TPR/M/3 75/Add.1  
 
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  NORWAY – BATCH 1  ................................ ................................ ................................ ..... 593  
NORWAY – BATCH 2  ................................ ................................ ................................ ..... 599  
THE SEPARATE CUSTOMS  TERRITORY OF TAIWAN , PENGHU, KINMEN AND  MATSU 
– BATCH  1 ................................ ................................ ................................ ....................  600  
THE SEPARATE CUSTOMS  TERRITORY OF TAIWAN , PENGHU, KINMEN AND  MATSU 
– BATCH  2 ................................ ................................ ................................ ....................  609  
KOREA, REPUBLIC OF – BATCH 1  ................................ ................................ .................  613  
KOREA, REPUBLIC OF – BATCH 2  ................................ ................................ .................  615  
MOLDOVA,  REPUBLIC OF  ................................ ................................ ..............................  639  
EGYPT  ................................ ................................ ................................ ..........................  642  
DOMINICAN REPUBLIC – BATCH 1  ................................ ................................ ...............  644  
DOMINICAN REPUBLIC – BATCH 2  ................................ ................................ ...............  648  
INDONESIA  ................................ ................................ ................................ ..................  650  
ECUADOR – BATCH 1  ................................ ................................ ................................ .... 656  
ECUADOR – BATCH 2  ................................ ................................ ................................ .... 659  
TURKEY  ................................ ................................ ................................ ........................  667  
THAILAND – BATCH 1 ................................ ................................ ................................ ... 672  
THAILAND – BATCH 2 ................................ ................................ ................................ ... 673  
GUATEMALA  ................................ ................................ ................................ .................  676  
MALAYSIA – BATCH 1  ................................ ................................ ................................ ... 678  
MALAYSIA – BATCH 2  ................................ ................................ ................................ ... 680  
PHILIPPINES  ................................ ................................ ................................ ...............  702  
PERU  ................................ ................................ ................................ ............................  722  
SAUDI ARABIA, KINGDO M OF  ................................ ................................ ......................  724  
 
  WT/TPR/M/3 75/Add.1  
 
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  EL SALVADOR  
Report by China  - WT/TPR/G/375  
According to the paragraph 3.5 of China 's Report, the Chinese government has established a Pilot 
Free Trade Zones that aims to accelerate the transformation of government functions, searching for 
innovative modes of administration and management, among others.  
Question  
1. Can you provide more information about the innovative modes of administration and 
management that have been implemented in th e FTZ?  
Reply  
The establishment of p ilot free trade zones is an important strategic measure  for the Chinese 
government to push forward independent reform and open ing up . In the past five years, Shanghai 
Pilot Free Trade Zone and other FTZs have emancipated minds and taken first trials . They have 
boldly innovated in such areas as investment and trade facilitation as well as financial openness and 
innovation, and the achievements have been remarkable. The governance level has also experienced  
continuous improv ement. Firstly, major changes in foreign investment management system  
with the negative list management as the core.  In 2013, Shanghai Pilot Free Trade Zone began 
its explor ation to replace the case -by-case model by the pre-establishment national treatment and 
negative list  management model. It issued the first  foreign investment  negative list in China, and 
made headway in continuously deepening the openness level in general manufacturing , 
transportation, culture  and finance among other fi elds. With its significant increase in policy 
transparency and predictability , Shanghai Pilot Free Trade Zone has enjoyed the highest openness 
level in China . Fast filing procedures  are applied for f oreign businesses wishing to set up enterprises 
outside t he negative list. Second ly, a trade facilitation system in line with international 
practices is basically formed with constant introduction of trade facilitation measures . 
Shanghai International Trade Single Window" 3.0  cover s goods declaration, transportation means 
declaration, cross -border e -commerce, logistics information and other functional modules  which help 
to link all trade supervision departments; in addition, with continuous introduction of trade 
facilitation measures such a s categor ized goods stat e supervision and third party r esult adoption, a  
trade supervision system in line with international practices has taken shape, and the customs 
clearance efficiency has increased by an average of 40%. Third ly, real economy  developme nt is 
effectively supported by open and innovated financial measures . Free trade account system 
is established to provide integrated financial services in both foreign and domestic currencies under 
the current account and direct investment  among other capi tal accounts . Fourth ly, constant 
improvement in public service support ing system encourages  innovation and 
entrepreneurship.  Shanghai Pilot Free Trade Zone and Tianjin have reformed the mechanisms 
including high-level talent introduction and employment of overseas students , so as to solve the 
bottleneck of innovation. Guangdong Pilot Free Trade Zone aims at creating a start-up service 
system that integrates start-up services, incubator clusters, investment and financing.  
2. Why these FTZ schemes have been established as pilot? Are they going to become permanent?  
Reply  
The establishment of p ilot free trade zones is an important strategic measure for the Chinese 
government to push for independent reform and open ing up . The purpose is to do experiment for 
further deepening reform and opening up across the country. The pilot measures implemented in 
the test field s, if prove d to show obvious results with controllable risks, will be implemented 
nationwide. Therefore, the term pilot is in essence from local trials to national promotion rather than 
from short -term to long -term measures. At present, 153 pieces of reform experience summarized 
in the process of trial in p ilot free trade zones have been promoted nationwide to  optimiz e the 
business environment  across Chin a, which is  well received by market players. We will continue to 
summarize useful experience and practices that can be promoted across the country, so as to make 
pilot free trade zones play the role as test fields in China's  comprehensive deepening reform and 
opening up.  WT/TPR/M/3 75/Add.1  
 
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  Question  
3. What are the prioritized sectors that are benefiting from the FTZ incentives?  
Reply  
At the end of June 2018, National  Development and Reform Commission and Ministry of Commerce 
issued a 2018 version of foreign investment negative list in pilot free trade zones. The list follows 
the description + list model and is uniformly applied to all the pilot zones.  Compared with  the 2017 
version, this edition has reduced the entries from 95  to 45 . The 2018 national  foreign investment 
negative list has launched a series of major liberalization measures on 22 areas such as bank ing, 
automobiles, trunk railway networks, power grids, gas stations, etc.  Based on the national 
liberalization measures , the negative list for pilot free trade zone s has further proposed more 
liberalized measures in the following . Raise foreign equity proportion of breeding and seed 
production of new wheat  and corn varieties from not more than  49% to no t more than 66% ; cancel 
the restriction that  exploration and development of oil and gas are limited to joint venture  and 
cooperation; cancel the regulation forbidding foreign i nvestment in  smelting  and processing  of 
radioactive minerals as well as nuclear fuel production; cancel  the restriction that  performance 
brokerage institutions must be controlled by Chinese capital ; change the regulation from prohibit ing 
foreign investment in establish ing cultural performance groups to requiring Chinese party as 
controlling shareholders; expand the liberalizati on measures in v alue-added telecommunication  
services piloted in the original  28.8 square kilomet res in Shanghai Pilot Free Trade Zone to all the 
free trade zones, including cancel ling store-and-forward business , call centr e business , domestic 
multi-party communication services, restrictions on foreign  equity proportion of Internet access 
service of internet users , and the restriction that foreign equity proportion and the restriction that 
foreign equity proportion in domestic internet virtual private netwo rk should be n o more than 50%.  
  WT/TPR/M/3 75/Add.1  
 
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  PAKISTAN  
Report by the Secretariat - WT/TPR/S/375  
Page 9, paragraph 2 
Question  
1. It is indicated that the Chinese Government is focusing on the quality and sustainability rather 
than the quantity of growth. Pakistan appreciates if China could indicate the measures it adopted to 
achieve this sustainability growth approach. We wish to know which sectors are targeted, what are 
the type of policies or measures to be implemented or already implemented, what are the status of 
implementation and the likely duration.  
Reply  
The Chinese Government attaches great importance to improving the quality of economic 
development. The "13th Five-Year Plan" called for a new concept for development: innovation, 
coordination, green developm ent, opening up and sharing. The report of the 19th Session of National 
Congress of the Communist Party of China raised the development goals of following this new 
development concept and modernizing the economic system. In order to promote high -quality 
development, the Chinese Government will strive for preventing and defusing significant risks, 
targeted poverty alleviation and pollution control (known as three tough battles), deepen supply -
side structural reforms, accelerate the construction of an innovat ive country, implement rural 
revitalization strategy, perform regional coordinated development strategy, speed up the 
improvement of the socialist market economic system, and open up our economy in all aspects. At 
present, the above tasks are all progressi ng in an orderly manner. The three tough battles will be 
basically completed in 2020, and the rest tasks will be completed in accordance with the long -term 
goals determined by the 19th Session of National Congress of the Communist Party of China. China 
will actively strengthen policy communication with developing countries and share high -quality 
development experience and opportunities with them.  
Page 34, paragraph 2.20 
Question  
2. China supports the multilateral trading system and promotes the development of an open 
global economy. In this regard, what are the efforts that China has made in response to the rising 
protectionism, and to safeguard the multilateral trading system?  
Reply  
First, China resolutely opposes unilateralism and protectionism, and proact ively advocates majority 
of members of WTO opposing the unilateralism and protectionism.  
Second, China will firmly support the multilateral trading system, fully fulfil the accession 
commitment, honour obligations of WTO, and continuously enact the opening measures, with the 
level of opening exceeding the accession commitments. In recent years, China has significantly 
lowered the import tariffs by means of interim tariff  rates for multiple times on while earnestly 
fulfilling all its accession commitments. According to WTO 's statistics, China's  trade -weighted 
average tariff fell to 4.4% in 20 15, compared with 2.4% in the U S and 3.0% in the EU. By the end 
of 2017, more than  900 tariff lines had been reduced. China is also fully involved in the Doha round 
of negotiations on various issues. China advocates resolving trade concerns through dialogue and 
consultation, and solving trade disputes using the WTO 's dispute settlement mechanism. As of 
April 2018, China has prosecuted 17 cases, and successfully concluded 8 cases. Meanwhile, China 
has been accused in 41 cases and concluded 33 cases. China respects and has conscientiously 
implemented WTO 's decisions, and has made adjustmen ts consistent with WTO 's rules, without any 
case that gives rise to revenge of the prosecuted.  WT/TPR/M/3 75/Add.1  
 
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  Report by China  - WT/TPR/G/375  
Page 12, paragraph 4.5 
Question  
3. Could China provide more information regarding the upcoming international import expo, the 
attendance, the expected outcome as well as preferential terms for developing members to 
participate if any?  
Reply  
According to the Preferential Measures for Participation in China International Import Expo, 
preferential measures for developing countries m ainly include: 1) providing 256 square meters of 
free raw space for guest of honour and 136 square meters of free raw space for other participating 
countries. 2) Offering a discount of 50% for booth design and construction; the sponsor will provide 
three  sets of standard construction schemes for the option of participating countries. After selection, 
the sponsor will designate enterprise for booth construction. The upper limit of construction cost 
support is RMB 2,000/square meter. 3) Providing free interna tional air tickets (economy class), and 
no more than eight-day and seven -night meal and accommodation in Shanghai for two booth 
personnel of the guest of honour; free international air tickets (economy class), and no more than 
eight-day and seven -night mea l and accommodation in Shanghai for two booth personnel of other 
participating countries.  
As for the attendance, expected outcome and other information needed by Pakistan, it is still 
unavailable as some conditions and information are not yet finalized.  
  WT/TPR/M/3 75/Add.1  
 
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  NIGERIA  
Report by the Secretariat - WT/TPR/S/375  
Page 18, paragraph 1.6 
Question  
1. The Secretariat Report states that future growth could also be boosted by the "Belt and Road" 
(or "the Belt and Road Initiative ") Initiative, which aims to foster multinational cooperation in trade, 
investment and finance, bringing much needed infrastructure and connectivity to the region. What 
does the REGION encompass? How does China plan to carry out the multinational cooperation in 
trade, investment and finance under the Belt and Road Initiative?  
Reply  
In terms of the region encompassing the Belt and Road. The Belt and Road Initiative adheres to the 
principle of achieving shared growth through discussion and collaboration. It is a Chinese plan to 
maintain and pro mote prosperity in an open world economy, and also a cooperation platform for 
countries to build a new pattern of global economic development and governance. The key area for 
cooperation is Eurasian and African continent, and we welcome active participatio n of all countries 
as well as international and regional organizations.  
In the next step, we will adhere to the principle of achieving shared growth through discussion and 
collaboration under the Belt and Road Initiative. We will spare no effort to hold th e First China 
International Import Expo with high quality, so as to create an open international cooperation 
platform and international public product. Discussions will be held with countries and regions willing 
to establish free trade zones and create a m ore liberalized and convenient trading and investment 
environment. Construction of regional cooperation industrial belt will be sped up by promoting the 
implementation of major projects as shining Silk Road pearls. Efforts will be made to develop Silk 
Road e-commerce to help countries along the route eliminate the digital divide and integrate into 
the global value chain, thus enhancing the level of economic development.  
Page 35, paragraph 2.25 
Question  
2. It is stated that China intends to actively open up trade in services and areas of investment. 
Could China share with us more details of the measures taken and efforts made to open up trade in 
services and areas of investment? Are those efforts targeting only its FTA partners?  
Reply  
Report of the 19th National Congress of the Communist Party of China proposes that China will 
implement a high -level trade and investment liberalization and facilitation policy, fully implement 
the pre -establishment national treatment plus negative list management system, g reatly relax 
market access and expand the opening up of service industry. This year marks the 40th anniversary 
of the reform and opening up in China. At the Boao Forum for Asia Annual Conference, 
President  Xi Jinping proposed four measures to further expan d the opening up. On 11 June 2018, 
China issued the Notice of the State Council on Several Measures for Active and Effective Use of 
Foreign Capital to Promote High -Quality Economic Development . The document draws on the 
framework of internationally popular  investment attraction policies and puts forward specific 
measures from six aspects covering investment liberalization, investment facilitation, investment 
promotion, investment protection, optimization of regional opening up layout and promotion of 
innova tion driven improvement of national development zones. On 28 June, National Development 
and Reform Commission and the Ministry of Commerce jointly issued the Special Management 
Measures (Negative List) for Access of Foreign Investment (2018 Edition) , which  greatly relaxed 
market access, with the opening measures applicable to all foreign investors. The 2018 Foreign 
Investment Negative List introduces liberalization measures in 22 fields, and restrictive measures 
have reduced from 63 to 48, accounting for ne arly a quarter of the total. In the financial sector, 
foreign equity proportion restriction on the banking sector is cancel led; foreign equity proportion WT/TPR/M/3 75/Add.1  
 
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  restriction on enterprises specialized in securities, fund management, futures and life insurance is 
relaxed to 51%; and all foreign equity proportion restrictions on the financial sector will be cancel led 
in 2021. In the infrastructure sector, foreign capital restrictions are cancel led in trunk railway 
networks and power grids. In terms of transportation,  foreign capital restrictions are cancel led in 
passenger railway transportation companies, international maritime transportation and international 
shipping agencies. In terms of trade circulation, foreign capital restriction is cance lled in gas stations 
and purchase and wholesale of grain. In the cultural sector, the ban on prohibiting investment in 
internet access service providers is abolished. In the automotive sector, foreign equity proportion 
restrictions on special -purpose vehicles and new energy vehi cles are cance lled; in 2020, foreign 
equity proportion in commercial vehicles will be cance lled; in 2022, foreign equity proportion 
restrictions on passenger vehicles and the restriction that there should be not more than two joint 
ventures will be cancel led. Foreign capital restrictions on the shipbuilding industry are cancel led, 
including each and every process of design, manufacturing and maintenance. Foreign capital 
restrictions on aircraft industry are cance lled, including trunk aircraft, regional airc raft, general 
aircraft, helicopters, drones, aerostats and other types. In the agricultural sector, foreign capital 
restrictions on seed production of the crops except wheat and corn are cancel led. In the energy and 
resources sector, foreign capital restri ctions on mining special scarce coals are cancel led; and foreign 
capital restrictions on graphite mining, rare earth smelting and separation and tungsten smelting 
are cancel led. These opening efforts are not only targeting China's  FTA partners.  
In addition, the 16 free trade agreements signed by China all contain issues related to service trade. 
Based on the commitments made to open 100 service trade departments and sub -departments when 
joining the WTO, China has further enhanced the opening level t o its FTA partners and the committed 
number of opening departments is as high as 153 (in CEPA).  
Report by China  - WT/TPR/G/375  
Page 14, paragraph 4.19 
Question  
It is stated in the government report that any further delay in starting the selection process o f the 
Appellate Body members will undoubtedly damage seriously the interests of the WTO and the entire 
membership. Has China made any specific proposals and efforts to resolve the deadlock in the 
current Appellate Body situation?  
Reply  
Yes, China has been working hard to start the selection process of the Appellate Body members. For 
example, at each DSB meeting, China actively spoke and called on WTO members to agree on 
starting the selection process. In February 2018, China became the proponent of the APPELLATE 
BODY  APPOINTMENTS  (WT/DSB/W/609/Rev.2) and, together with other proponents, proposed 
specific suggestions on starting the selection process. Suggestions were also continually submitted 
at subsequent DSB meetings. Through informal ministerial meeting held in New Delhi, India in 
March  2018, and bilateral mechanisms or meetings with other WTO members, China raised its 
proposition and called on starting the selection process of the Appellate Body members for jointly 
maintaining normal operation of the dispute settlement mechanism. China is willing to continue to 
work together with other WTO members for starting the selection process of the Appellate Body 
members as soon as possible.  
Page 22, para graph  6.4 
Question  
Regarding the promises on further openi ng up its market, please elaborate in detail on the actions 
and measures to be taken and how will those efforts help the developing members in need.  
Reply  
After joining the WTO, China actively participated in the Doha Round negotiations and the plurilatera l 
liberalization initiatives. China has made important contributions to the conclusion of the Trade WT/TPR/M/3 75/Add.1  
 
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  Facilitation Agreement, the Information Technology Agreement Expansion Agreement, the 
agricultural export competition agreements, etc.  
China has implemented  a high -level trade liberalization and facilitation policy and accelerated the 
implementation of the free trade zone strategy. Since joining the WTO, China has signed 
16 comprehensive and high -level FTAs with 24 countries and regions. In the signed FTAs, z ero tariff 
covers more than 90% of the products, and the service departments promised to open have 
increased from 100 when China joined the WTO to nearly 120. In addition, 13 FTA negotiations are 
in the process, and China has conducted joint feasibility st udies on FTAs with ten countries.  
On 4 July, National Development and Reform Commission and Ministry of Commerce issued the 
latest foreign investment negative list which opened wider to the outside world and reduced nearly 
one-quarter of the restrictions, with further improved transparency and standardization.  
China 's further opening up measures treat all the countries equally and will make an important 
contribution to maintain and develop an open world economy and promote an open, inclusive, shared, 
balanced and win -win economic globalization.  
 
  WT/TPR/M/3 75/Add.1  
 
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  SWITZERLAND  
Report by the Secretariat - WT/TPR/S/375  
SUMMARY  
Question  
In paragraph 19 we take note that according to the Secretariat disbursements of China's  
Export -Import Bank (China Eximbank) and the China Export and Credit Insurance Corporation 
(SINOSURE) grew during the review period. We would welcome more information on which sectors 
benefitted most from this growing support in order to better appreciate the chapter.  
Reply  
As mentioned in 3.93 and 3.94, SINOSURE is China's  official export credit insurance agency and 
offers all lines of export credit insurance to support the goods and services exported from China and 
to assist the national enterprises to invest overseas.  
With the increase of national export and FDI of China, SINOSURE saw the steady growth over the 
past two years. In 2017, the total insured amount reached over USD 500 billion.  
The projects in sectors such as power, transportation, shipping, infrastructure, mini ng etc. are 
mainly covered by MLT or INV insurance. In terms of ST insurance, the sum insured of small and 
micro enterprises insurance increased.  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
Question  
Paragraph 1.1 observes a declining income ine quality reflected in a lower Gini Index in 2016 
compared to 2011. Further paragraph 1.3 states that the household saving rate has been declining 
since 2010. What are the considerations by China that people with lower incomes may be prone to 
spend additiona l income for consumption rather than saving it? Could China please share its 
explanations for the declining household saving rate and how the factor of declining income 
inequality could be taken into account?  
Reply  
The household saving rate is equal to the  ratio of the total savings of the Household Sector to the 
total disposable income thereof. The household saving rate reached its top in 2010, being 39.0% 
(the data in the original report was incorrect), and then declined year by year, being 37.1% in 2015,  
decreased by 1.9 percentage point from 2010.  
Chinese people 's habits have kept China 's household saving rate at a relatively high level. In recent 
years, with the continuous increase of resident 's income and the continual improvement of social 
security me chanism, the consumption power and willingness of Chinese residents are enhanced . The 
consumption has boosted  the economic growth, and the evolution of consumption structure has also 
driven the upgrading of China's  industrial structure. Meanwhile, it also gave rise to a continuous 
decline in China's  household saving rate, which remains  high compared with other countries.  
Question  
Paragraph 1.5 says that according to Chinese authorities all enterprises, regardless of ownership, 
are treated equally and that there are no specific subsidies to SOEs. All enterprises are entitled to 
receive subsidies if certain requirements are met. Could China elaborate on what requirements are 
necessary for enterprises to be eligible for receiving subsidies?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In August 201 5, the Central Committee of the Communist Party of China and the State Council 
issued the Guidelines on Deepening Reform of State -owned Enterprise s. In September, the State 
Council issued the Opinions on the Development of Mixed Ownership Economy in State -owned 
Enterprises , making further arrangements for the development of mixed -ownership economy.  
In accordance with the requirements of these two documents, the National Development and Reform 
Commission and the State -owned Assets Supervision and Administrat ion Commission of the State 
Council, as co -leader s, worked together to advance the pilot reforms of mixed ownership in 
important areas, including seven key fields: electric power, oil, natural gas, railway, civil aviation, 
telecom and military industry. At  present, the pilot enterprises have accumulated considerable  
successful  experience and practices in establishing a governance mechanism of check and balance 
by scientifically setting equity ratio, in introducing appropriate strategic investors by followin g 
strategic synergy priority -oriented concept, and in implementing employee stock ownership by 
enhancing internal incentives, and have become  the benchmarking pilot enterprises with social 
demonstration effects.  
2 TRADE AND INVESTMENT REGIMES  
2.3.1 WTO  
Question  
The Secretariat's  report, paragraph 2.21, indicates that some notifications, including those on import 
statistics, state -trading enterprises and subsidies, remain pending. Could China indicate when it 
plans to submit these notifications?  
Reply  
China  will submit the notifications on central and local subsidies of 2015 -2016 before review. China 
strive to submit the notification on state -trading enterprises of 2015 -2017 before revie w. 
2.4.1 Regulatory framework and market access  
Question  
In paragraph 2. 35 rega rding technology transfer , the Regulations of the People 's Republic of China 
on the Administration of the Import and Export of Technologies (2002) stipulate that a foreign 
technology provider is liable for infringements of third parties ' IP rights t hrough the technology 
recipient. They also provide that improvements in the technology realized during the duration of the 
contract belong exclusively to the technology recipient. Are there any analogous rules that apply in 
cases where technology provider as well as recipient are entities without any foreign investment or 
ownership?  
Reply  
The Regulations of the People 's Republic of China on the Administration of the Import and Export of 
Technologies specifies the technical transfer within and outside the People's Republic of China, no 
matter whether the company is foreign -funded or owned by foreigners.  
Question  
The Guidelines on Administrative Approvals of Collection, Trade and Exportation of Human Genetic 
Resources (2015) provide that all clinical trials sponsored by foreign entities are subject to review 
and approval of the Human Genetic Resources Administration of China before being initiated and 
require an IPR sharing scheme. Are there any analogous rules that apply if all parties to a 
collaboration are  entities without any foreign investment or ownership?  WT/TPR/M/3 75/Add.1  
 
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  Reply 
China enacted the Interim Measures for the Administration of Human Genetic Resources in 1998 for 
the purpose of efficiently protecting and rationally utilizing human genetic resources in the Peop le's 
Republic of China, strengthening the research and development of human genes and promoting 
international cooperation and exchange on the basis of equality and mutual benefits. In 2015, the 
Guidelines on Administrative Approvals of Collection, Trade an d Exportation of Human Genetic 
Resources was enacted to further straighten out the processes for administrative approval, 
standardize administrative approval, and stipulates the regulations for administrative approvals of 
collection, trade and exportation of human genetic resources.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.2 Rules of origin  
According to paragraph 3.10 there are two main models of origin determination: a model according 
to which the importing country determines the origin of a goods and  a model according to which the 
exporting country determines the origin of a goods. Observing the evolution in the management of 
preferential and non -preferential origin, we come to the conclusion that more and more countries 
adopt a model in which the aut hority of the country of importation decides upon the origin status of 
the goods. Within this model, the importer must be in a position, in case of a verification of the 
origin status by the authority of the importing country, to prove on the basis of its own knowledge 
or of a statement of origin of the exporter that the declared preferential origin is correct. In that 
model, no proof of origin follows the goods. Furthermore, the administrative cooperation among 
authorities of the exporting and importing co untries needed to verify whether products are 
originating and compliant with the requirements of the agreement or not, takes into consideration 
the concerns about confidentiality expressed by the traders'  community.  
To our understanding, there is a new st andard on preferential origin which merges into one the main 
requirements of the two origin models mostly used around the world. Likely in the context of the 
non-preferential origin, countries of importation also tend to adopt the model in which they decid e 
upon the non -preferential origin of the goods. The proof of origin with means of a non -preferential 
certificate origin tends to become obsolete.  
Question  
Regarding paragraph 3.11 what are the intentions of China concerning the origin model in the frame 
of its preferential agreements? Would China be willing to adopt a model of origin which corresponds 
to a compromise between the two mostly used origin models around the world? What model will 
China propose to its future free -trade partners?  
Reply  
China has adopted the relevant documentary evidence of origin in accordance with the provisions of 
the Free Trade Agreement signed. In the future, China will continue to negotiate and determine the 
model of the documentary evidence of origin based on the actual situations of its free trade partners.  
Question  
This paragraph states that China grants preferential treatment to imports from LDCs. Does China 
grant this kind of preferential treatment on the basis of a proof of origin? In case of doubts 
concerning the or igin status of the goods, can the Chinese authority reject the proof of origin and 
refuse to grant preferential treatment?  
Reply  
China has notified  the WTO of China 's rules of origin under the special preferential treatment 
measures for the least developed  countries. China determines the origin of goods and whether they 
can enjoy the agreed tax rate based on  the rules.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Paragraph 3.12 states that "Non-preferential rules of origin are used to apply the MFN tariff rate; 
ensure the origin of goods sub ject to anti -dumping, countervailing and safeguard measures; ... " 
Does China apply a mandatory requirement for certificate of non -preferential origin to apply MFN 
tariff rate or ensure the origin of goods subject to anti -dumping?  
Reply  
When applying the MF N tariff rate of goods that do not involve anti -dumping measures, China does 
not oblige importers to submit certificates of origin. For goods involving anti -dumping measures, the 
importer is required to submit documentary evidence of origin, but certificat e of origin is not 
mandatory.  
Question  
Does China rely on non -preferential origin certificate to ensure origin for goods subject to 
anti-dumping duties and or safeguard measure or does China ensure it on the basis of own origin 
criteria?  
Reply  
A non -preferential certificate of origin is not the only certificate for determining the origin of goods. 
In the implementation of anti -dumping or other safeguard measures, China will conduct a 
comprehensive study on the basis of the declaration of the ent erprise and the documentary evidence 
of origin provided.  
Question  
Does China apply different non -preferential rules of origin depending on the trade policy instrument 
applied on a given import? For instance, in the application of an antidumping margin, do es China 
apply different rules of origin than for the application of MFN treatment?  
Reply  
China has only one set of non -preferential rules of origin , whose  scope of application is the same as 
that stipulated in WTO 's Agreement on Rules of Origin , including  the determination of the origin of 
goods involv ing anti-dumping measures.  
3.1.5 Import prohibitions, restrictions, and licensing  
According to paragraph  3.33 of the Secretariat's  report, China notified its quantitative restrictions in 
April 2015 for the l ast time. The CTG Decision on notification procedures for quantitative restrictions 
stipulates that members shall make complete QR notifications every two years and shall notify 
changes to those quantitative restrictions as soon as possible, but not later than six months from 
their entry into force.  
Question  
Since the last Chinese QR notification is more than three years old, when will China comply with its 
notification obligation and submit a revised complete notification of its QRs?  
Reply  
China will submit the notification on QR in the second half of this year as soon as possible.  WT/TPR/M/3 75/Add.1  
 
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  3.2.2 Taxes, charges, and levies  
Question  
According to the Secretariat's  report ( paragraph 3.74), 102 tariff lines were subject to statutory 
export duties and 179 tariff lin es carried interim duties in 2017. It is noted that these duties were 
applied to protect the domestic environment and to save energy and scarce resources. The report 
notes the same rational for the management of the VAT rebates ( paragraph 3.83). Do Chinese  
authorities consider reforming  these forms of export taxes and replace them with more trade neutral 
instruments to achieve the stated policy goals?  
Reply  
The relevant measures taken by Chinese Government are in accordance with the WTO rules.  
3.2.5 Export finance, insurance, and guarantees  
Question  
In the p aragraphs 3.90 ff there is mention, that there are quote "at least two public institutions " 
providing "export finance, insurance, and guarantees " unquote. If there are at least two public 
institutions, wh ich are the other institutions active in Chinese export finance & insurance support?  
Reply  
SINOSURE is the only policy oriented insurance corporation specialized in export credit insurance in 
mainland of China.  
Question  
The International Working Group on E xport Credits (IWG) was launched in 2012 to negotiate a set 
of international guidelines on the provision of official export financing. Are all relevant activities 
performed by or on behalf of the Chinese Government covered by the negotiations within the IW G? 
Would China agree that such guidelines would allow the establishment of a level playing field? From 
the Chinese point of view, what could be the time horizon for the conclusion of these negotiations, 
thus creating a "safe haven " with regard to Item (k) 2 of the WTO Agreement on Subsidies and 
Countervailing Measures (ASCM)?  
Reply  
Since the IWG was launched, all parties support IWG to develop a new set of international rules on 
export credit that takes into account the interests and national conditions of different countries, in 
a bid to promote fair competition among exporting countries. At present, IWG is still in consultation 
stage, and the time for reaching agreement on relevant issues should be determined according to 
the negotiations between the parti es. 
3.3.4.1.1 Legislative and institutional framework  
Question  
Paragraph 3.146 mentions the amendment of the Anti -Unfair Competition Law on 4 November 2017 
introduced new provisions on the preventions of unfair competition activities carried out on the 
Internet, such as malicious interference. Could China please share  the first experiences with and 
effects of the amendment of the Anti -Unfair Competition Law?  
Reply  
The new Law of the People's Republic of China against Unfair Competition , which came into effect 
on 1 January 2018, added the special provisions on unfair c ompetition on the Internet, in Article  12. 
There are basically two types of unfair competitions by means of Internet. One is the extension of WT/TPR/M/3 75/Add.1  
 
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  traditional unfair competition in the Internet field. The other is the Internet -specific unfair 
competition acts d one by means of technology.  
For unfair competitions such as counterfeiting and false propaganda in the Internet, the business 
sector and market regulation authorities have investigated and dealt with a large number of cases. 
For instance, in 2017, the national business sectors and market regulation authorities investigated 
and dealt with 24,601 cases of various types of unfair competition, including 2,256 Internet -related 
ones. And the act of unfair competition based on Internet technology means is a newly added part 
in the revision of the Law of the People's Republic of China Against Unfair Competition , and it is still 
being researched and explored by the industry and commerce as well as market regulation 
authorities.  
Question  
In paragraphs 3.147 -3.149 the  report mentions that competition policy is guided and coordinated 
by the Anti -Monopoly Committee and enforced by three agencies (MOFCOM, NDRC, SAIC). The 
report underlines that some academics are of the view that the current institutional framework of 
competition policy enforcement in China is not fully able to ensure the full functioning of competition 
policy. What is the opinion of China about that and what are the reasons for the division of the 
enforcement of competition policy by different agencies?  
Reply 
Since the implementation of the  Antimonopoly Law , Chinese anti -monopoly enforcement agencies 
have achieved remarkable  performance in terms of rigorously performing responsibilities according 
to law, protectin g fair competitions in the market, maintain ing consumer rights and interests, 
enhancing the economic operation efficiency, and improving the healthy economic development. In 
2018, according to the requirements for the Chinese government institutional reform like about 
enhancing and optimizing the government's  anti-monopoly function, boosting the uniform 
anti-monopoly enforcement, etc., the responsibility of former State Administration for Industry & 
Commerce of the People's Republic of China, the responsibility of National Development and Reform 
Commission for price supervision and inspection as well as anti -monopoly enforcement, the 
responsibility of the Ministry of Commerce for the centralized anti -monopoly enforcement for 
operators, the responsibility of the office of the Anti -Monopoly Committee o f the State Council, etc. 
were integrated into the State Administration for Market Regulation, and the State Administration 
for Market Regulation started to undertake the uniform anti -monopoly enforcement. The institutional 
restructuring will be conducive to enhancing the enforcement of anti -monopoly laws, and boosting 
the establishment of the basic position of competition policies.  
Question  
In Switzerland and other countries, it is generally recognized that the civil antitrust law is important. 
Paragraph 3.150 states that parties injured by violations of anti -monopoly provisions may take their 
case to the courts. Could China please describe how in practice such a case procedure looks like? 
Does China plan to strengthen further the civil rights in the anti -monopoly provision? And if so, which 
elements would be part thereof?  
Reply  
Article 50 of the Antimonopoly Law  stipulates: If operators carry out monopoly conduct and cause 
losses to others, they shall bear civil liability according to laws. To correctly he ar the civil dispute 
case caused by a monopolistic behaviour , prohibit monopolistic behaviour , protect and promote fair 
competitions in the market and maintain the consumer and public social interests, the Judicial 
Committee of Supreme People's  Court of Ch ina, in January 2012, passed the Provisions of the 
Supreme People's  Court on Several Issues concerning the Application of Law in the Trial of Civil 
Dispute Cases Arising from Monopolistic Conduct through discussion, and started to execute it in 
June 2012. These provisions clearly specif y the acceptance, jurisdiction and transfer of civil dispute 
cases caused by monopolistic behaviour , the burden of proof, the civil liability, the prescribed period 
for litigation, etc. Thus, Chinese citizens civil procedure right is fully guaranteed, and the civil 
procedure is specified in detail in the Civil Procedure Law of the People 's Republic of China .  WT/TPR/M/3 75/Add.1  
 
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  3.3.4.1.3 Dominant market positions  
Question  
Paragraph 3.155 says that the SAIC Order No. 74 of 2015 expressly prohibit s the abuse of intellectual 
property rights (IPR) to eliminate or restrict competition. In practice, it is difficult to draw the line 
between abuse  and no abuse. The reports list  some examples of possible abusive practices. Further, 
it is concluded that in vestigations are carried out by a case -by-case analysis. Are there any guiding 
decisions, which have been established in this context?  
Reply  
Up to now, the State Administration for Market Regulation has  not made an administrative 
punishment based on these provisions, nor enacted other explanatory legal documents.  
3.3.4.1.7 International cooperation  
Question  
In paragraph 3.171 the report informs about international cooperation agreements (including 
memorandums of understanding and FTA) China concluded with different countries since 2016. But 
it is not clear which agency between MOFCOM, NDRC, SAIC discusses and negotiates these 
agreements. Could you explain what the sharing process is between the agencies?  
Reply  
Prior to  the institutional reform of the State Council in 2018, three anti -monopoly enforcement 
agencies, namely, Ministry of Commerce, National Development and Reform Commission and former 
State Administration for Industry & Commerce respectively carried out anti -monopoly international 
exchange and cooperation in various forms. The three authorities commonly or respectively signed 
53 cooperation files, including two cooperative protocols between governments, 41 bilateral 
memoranda of cooperation in anti -monopoly, two multilateral memoranda of cooperation, seven  
joint declarations and one guideline for case review cooperation. Chinese anti -monopoly 
enforcement agencies actively participated in the negotiation about competition policies, set the 
competition policy ch apter in seven  free trade agreements, substantially ended the negotiation about 
the competition policies for three  free trade agreements, actively promoted the negotiation about 
the competition policies for six free trade agreements, and drove the upgraded  feasibility research 
of six free trade agreements. During the negotiation, the Ministry of Commerce, National 
Development and Reform Commission and former State Administration for Industry & Commerce 
mutually participated in and led the discussion centrin g on competition policies. After the institutional 
reform of the State Council in 2018, the Anti -Monopoly Department of State Administration for 
Market Regulation will uniformly be in charge of Chinese anti -monopoly international exchange and 
cooperation.  
3.3.5 State trading, state -owned enterprises, and privatization  
Question  
The Secretariat 's report, paragraph 3.184 mentions that during the period under review, SOE 
reforms have continued based on a Guiding Opinion issued by the Central Government and the  State 
Council in August 2015. The Guiding Opinion notably called for a policy environment conducing to 
SOE reforms, without providing details. Could China elaborate on the reforms that were implemented 
since 2015 based on the Guiding Opinion, including (i f any) concerning the policy environment? Do 
reforms also relate to the financial support received by SOEs?  
Reply  
The Chinese Government attaches great importance to SOE reforms, and has prepared several 
supporting documents to create a good policy environment for SOE reforms from such aspects as 
streamlining administration and delegating powers, enhancing regulation of state -owned assets 
based on capital regulations, and solving outstanding problems.  WT/TPR/M/3 75/Add.1  
 
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  3.3.7.4.3 Undisclosed Information and trade secre ts 
Switzerland bases its comments with respect to paragraph 3.257 regarding the recent public 
consultation by China of the "Public Comment Draft of Pharmaceutical Data Exclusivity Implementing 
Rules (provisional) " (hereafter: "The Draft"). 
First and foremost, Switzerland welcomes the comprehensive efforts by China to implement test 
data protection in a transparent and equitable manner that shall provide predictability, transparency 
and legal certainty to all stakeholders.  
Switzerland welcomes the prop osal for six years of test data protection for innovative drugs and 
12 years of protection for biological products in the draft. A minimum of six years term of protection 
reflects the obligations contained in China 's WTO Accession commitment.  
With regard t o Article 4 (Scope and Requirements of the Protected Test Data) of the Draft  
Question  
The Draft defines "test data " for the sake of these implementing measures as "the non -clinical and 
clinical trial data that related to the effectiveness of the drug, which are included in the data package 
as part of the application documentation for market approval ". It then explicitly excludes the data 
that is related to the safety of the drugs. However, it is global practice to also include safety data in 
the scope o f test data protection. This encourages companies to do their utmost to protect patients. 
In this context, Switzerland would like to ask how China thinks to fulfil its WTO accession 
commitment where it states that it will "provide effective protection agai nst unfair commercial use 
of undisclosed test or other data submitted to authorities in China …"? The protection scope thus 
explicitly includes "undisclosed test data or other data  submitted ". Data that is related to the safety 
of drugs is therefore also co vered under the terms of China's  WTO accession commitments.  
Reply  
China has sought pub lic opinions for Measures for the Implementation of Drug Test Data Protection 
(Trial) (the Draf t) as per the statutory procedures. Currently, China is further revising an d improving 
the Draft as per the feedback. China will improve the test data protection system based on the 
internationally -accepted practice in consideration of actual situation in China.  
Question  
In addition, the Draft proposes that in case the test data submitted comes from trials from overseas 
and does not include trials with Chinese patients, only of the calculated protection term should be 
granted. Could China specify what it means by 'the calc ulated protection term '? Is it referring to the 
suggested six years for chemical products and 12 years for biologics? In this context, Switzerland 
would like to ask China how it thinks to comply with its WTO accession commitment of non -reliance 
on submitte d data for a period of at least six years? As this requirement seems independent from 
what type of patient trial data was produced.  
Reply  
China has included the provisions for test data protection in Regulations for Implementation of The 
Drug Administratio n Law of The People's Republic of China  as per its commitments in TRIPS  when 
entering WTO: providing six years data protection period for drug containing new chemical entities. 
To implement the relevant requirements of Opinions on Deepening the Review and Approval System 
Reform and Encouraging the Drug and Medical Device Innovation (TZ [2017] No. 42), China has 
improved and refined the drug test data protection on the original basis, and expanded the protection 
scope. The Draft lists the specific regulation s for implementation, under which, the level of drug test 
data will be no lo wer than that specified in TRIPS . WT/TPR/M/3 75/Add.1  
 
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  Article 9 (Application) of the Draft  
Question  
The formulation in the Draft "the applicant should submit test data protection application " seems to 
imply that the applicant will actively have to seek test data protection. How does China think to 
comply with its WTO accession commitment, which suggests a proactive approach by the 
government to make sure that no person  other than the person who submitted such data could rely  
on such data for a period of at least six years?  
Reply  
At present, there are mainly two ways to obtain drug test data protection int ernationally: the United 
States asks new drug applicants to apply for new drug registration and clarify the reasons at the 
same time; the EU does not have a data protection application procedure, and new drugs will 
automatically qualify for data protection  if they are approved for marketing. China's  proposed 
approach takes reference to the existing international practice.  
4 TRADE POLICIES BY SECTOR  
4.1.2 Policy objectives and administration  
Question  
In paragraph 4.5 it is noted that "China plans to deepen the reform on pricing mechanisms for major 
farm products to strengthen the role of market mechanisms, so as to assure that farmers sell their 
harvest at reasonable prices. " Has China already decided on specific steps to strengthen the role of 
the market me chanisms? If yes, what do they consist of?  
4.1.3.2.2 Price controls and market price support systems  
Question  
The S ecretariat 's report states under paragraph 4.31. that relatively high levels of domestic 
production, imports and the operation of minimum pur chase price and inventory systems resulted 
in significant stockpiles of some products including wheat and milled rice. Does China consider 
reducing minimum purchase prices? What kind of precautions do Chinese authorities take against 
adverse spill -overs on  international markets when releasing these stockpiles?  
Reply  
Reply to the questions in paragraphs 4.1.2 and 4.1.3: Considering the new change of domestic and 
overseas rice and wheat markets, China has reduced the minimum purchase price of rice for 
three  consecutive years. Specifically, the purchase price per 50 kg of early indica rice (ditto) was 
decreased CNY 2 year on year in 2016; in 2017, those of early indica rice, mid -late indica rice and 
japonica rice were decreased CNY 3, 2 and 5 respectively year  on year; in 2018, they were decreased 
CNY 10, 10 and 20 respectively year on year. The minimum purchase price per 50 kg of wheat 
in 2018 was reduced CNY 3 year on year. In the future, China will, by comprehensively considering 
the grain production cost, m arket supply and demand, prices in the domestic and overseas markets, 
industry development, etc., continually adjust the minimum purchase prices of rice and wheat.  
4.2.2 Energy  
Question  
This part of the report shows that fossil fuels and in particular coa l is an essential part of the primary 
energy mix as well as of the electricity mix of China. Paragraph 4.62 describes the development of 
a Carbon Emission Trading Market Construction Scheme by the NDRC. To what extend does this 
policy of putting a price on  emissions includes reforms of fossil fuel subsidies? What policies does 
China undertake in order to support investment in renewable energies?  
Reply  
China's  policies on carbon market construction do not involve reform of fuel subsidies.  
  WT/TPR/M/3 75/Add.1  
 
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  KAZAKHSTAN  
Question  
Does the Government of the People 's Republic of China have imminent plans to introduce changes 
to the established quota administration regime in relation to some agricultural products, namely 
wheat and corn?  
Reply  
Since joined the WTO, China has been earnestly fulfilling its commitment on tariff quota 
administration of wheat, corn and other products. China has also been administering import tariff 
quotas for agricultural products in accordance with the Interim Measures for the Administra tion of 
Import Tariffs Quotas of Agricultural Products , and performing allocation and redistribution of quotas 
following the principle of "fairness, transparency and non -discrimination ", so as to provide tangible 
market access opportunities to exporters of  related products. Some members initiated the dispute 
settlement procedure under the WTO framework on tariff quota administration of China 's wheat, rice 
and corn. China will fully exercise its legal rights as a member of the WTO in accordance with relevant  
WTO rules, clarify and defense China's tariff quota administration system.  
 
  WT/TPR/M/3 75/Add.1  
 
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  CANADA  
Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1 Setting new mechanisms fo r sustainable trade development, 3.1.3 Developing new 
modes of trade and business models , page 5, paragraph  3.8 
The report notes that a policy framework conducive to the development of cross -border e -commerce 
is taking shape.  
Question  
1. Could China provide i nformation on the policy framework, including on the types of policies it 
is considering for the framework?  
Reply  
Since March 2015, there have been 13 cross -border e -commerce comprehensive pilot zones (CPZs) 
established nationwide such as in Hangzhou and Tianjin. Over the recent more than three years, the 
CPZs have been standardized and developed, actively encouraged the innovation of all kinds of 
business models and institutional mechanisms, targeted at building innovative highlands rather th an 
policy depressions, and explored and formed a series of mature experience and practices based on 
the "six systems and two platforms", which have been popularized  nationwide. The s ix systems 
cover  information sharing, financial service, intelligent logis tics, e -commerce credit, statistical 
monitoring, and risk prevention and control, providing management and services for all processes 
and entities of cross -border e -commerce. The t wo platforms include the online integrated service 
platform and the offline industrial park platform, providing software and hardware conditions for the 
construction of CPZs. The effective combination between governments and markets, authorities and 
localities, and online and offline platforms, as well as the active involvement of  all parties have 
brought about the healthy development of cross -border e -commerce ecosystem.  
Question  
2. Could China expand on the successful policy piloted in the cross -border e -commerce zones?  
Reply  
Since the launch of cross -border e -commerce pilot projec ts in China in 2012, China Customs has 
followed the rules of e -commerce, giving full play to the traceability of the e -commerce data in the 
whole course, innovating ideas and methods, and reforming the regulatory model. It has made 
useful attempts in the r etail import and export of cross -border e -commerce with optimized 
supervision and service to actively explore the regulatory measures to adapt to the development of 
cross-border e -commerce, and proposed four new customs clearance supervision modes includin g 
general export, export to special areas, direct purchase import and e -commerce bonded import. It 
has put forward the management measures of checklist release and summary declaration, set up 
three  new supervision modes for cross -border e -commerce, applied  a filing management system to 
cross-border e -commerce enterprises, and perfected the relevant systems for cross -border 
e-commerce statistic service. Since May 2015, it has followed the operation duration of 365 days 
and the customs clearance time which re quires the customs procedures to be completed within 
24 hours after goods arrive at customs surveillance site. Moreover, it has designed and developed a 
cross-border e -commerce retail import and export informational customs clearance management 
system, and  actively cooperated with local governments to build an e -commerce supervision service 
platform, thus promoting the development of cross -border e -commerce.  WT/TPR/M/3 75/Add.1  
 
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  3.2.4  Further opening up the man ufacturing and services sectors,  page 7, paragraph 3.15  
It is noted  that as a next step, China will consider rolling out a series of opening measures involving 
the manufacturing of vehicles, ships and aircraft.  
Question  
3. Could China elaborate on what types of opening measures are being considered with respect 
to the manufa cturing of vehicles, ships and aircraft?  
Reply  
Firstly, on 28 June 2018, the National Development and Reform Commission and the Ministry of 
Commerce jointly issued the Special Management Measures (Negative List) for Foreign Investment 
Access (2018) , launching opening -up measures in 22 fields. The automobile industry has removed 
the equity ratio restrictions on special vehicles and new energy vehicles for foreign investors. In 
2020, the equity ratio restrictions on commercial vehicles for foreign inv estors will be removed, and 
in 2022, that on passenger vehicles for foreign investors and the restrictions on at most two joint 
ventures will be removed. The shipbuilding industry has removed the restrictions on foreign 
investment, including design, manufa cturing and repair. The aircraft industry has removed the 
restrictions on foreign investment, including trunk aircraft, regional aircraft, general -purpose 
aircraft, helicopter, unmanned aerial vehicle, aerostats, etc. It has developed a timetable for 
autom obile industry to relax the restrictions on foreign investment.  
Secondly, the import tariffs on automobiles have been considerably reduced. On 22 May 2018, the 
Customs Tariff Commission of the State Council issued an announcement to reduce the tax rate of 
135 tariff lines and four tariff lines  on automobiles to 15% from 25% and 20% respectively and cut 
down on the tax rate of 79 tariff lines  on automobile parts to 6% from 8%, 10%, 15%, 20% and 
25% respectively starting from 1 July 2018.  
3.4 Strengthening th e protection of intellectual property rights, 3.4.2 Steadily advancing 
legislations on IPR protection , page 9, paragraph  3.26 
The report notes that "the Patent Law and Copyright Law are currently undergoing amendment ". 
Question  
4. Could China explain which elements of "the Patent Law and Copyright Law are currently 
undergoing amendment " and the purpose of these amendments?  
Reply  
The amendment of the Patent Law aims to further complete the patent legal system, effectively 
protect th e legitimate rights and interests of the patentee, enhance the confidence of innovative 
subjects in patent protection, and encourage the innovation vitality of the entire society. It may 
involve the following contents: firstly, complete the patent authoriz ation system, including the 
optimization of the review system, the new provisions for national priority in patent design, and the 
extension of the term of protection of design patent from 10 years to 15 years, and the perfection 
of patent right evaluation and report system. Secondly, strengthen patent protection, including 
raising the cost of illegal infringement, increasing compensation, adding the system of punitive 
damages, and raising the statutory compensation limit, easing the burden of proof when pat entee 
claims compensation, enhancing the punishment, perfecting administrative enforcement of patent 
law, reinforcing the patent protection under the network environment, and adding the provisions 
that the application for a patent and the exercise of paten t rights should follow the principle of good 
faith. Thirdly, strengthen the application of patent, including perfecting the service invention system, 
enhancing patent conversion services, and adding the patent opening -up licensing system.  
The purpose of the amendment on the Copyright Law is to further consummate the existing 
institutions , respond to the demand for science & technology development and adapt to the 
development trend of international IP protection. The main elements may involv e the registration of WT/TPR/M/3 75/Add.1  
 
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  copyrights and related rights, rights of works, orphan works, collective management organization of 
copyrights, technical protection measures and rights management information, etc.  
Question  
5. What are the timelines for these amendments  to be promulgated?  
Reply  
The 2018 Legislative Work Plan of the NPC Standing Committee  has included the draft amendment 
to the Patent Law as a legal case deliberated  during the planned year. However, the deadline for the 
promulgation of the amendments to t he Patent Law is still uncertain.  
At present, the amendment on Copyright Law is stably  going on, but the timelines for the 
amendments to be promulgated are not determined.  
3.4.3 Constantly strengthening IPR judicial protection , page 9, paragraph  3.27 
The report notes that "the Supreme People's Court promulgated the Interpretation on Several Issues 
concerning the Application of Law in the Trial of Patent Infringement Dispute Cases (II) to address 
such problems as long litigation duration, difficulties i n collecting evidences and insufficient 
compensation in patent litigation. " 
Question  
6. To what extent has the Interpretation on Several Issues concerning the Application of Law in 
the Trial of Patent Infringement Dispute Cases (II) been successful in address ing long litigation, 
evidence collection challenges  and insufficient compensation?  
Reply  
Interpretation (II) takes the address of long litigation, evidence collection challenges and insufficient 
compensation and other outstanding issues as one of the guidi ng ideas.  
There is close correlation between evidence collection challenges and insufficient compensation. The 
main cause of the lower compensation in infringement cases is that insufficient evidence  about losses 
or gainings, namely, evidence collection challenges. Because the patent infringement is invisible, 
many evidences  about infringement are held  by the infringer and can't be obtained by the right 
holder. Therefore, the fundamental solution of e vidence collection challenges and insufficient 
compensation is to prepare evidence collection rules complied with IP litigation characteristics. 
Article 27 of Interpretation (II) has provided the evidence collection rules regarding compensation 
in patent i nfringement litigation. The prerequisite for the application of the rules is that the right 
holder has preliminarily collected the gainings of the defendant and the account books while 
information related to patent infringement is held by the infringer . 
With the purpose to improve the efficiency of trying patent infringement and alleviate the negative 
effect arising from long trial to the largets extent, Article 2 of Interpretation II provides that after 
Patent Reexamination Board makes the decision of anno uncing the patent is invalid, the court trying 
a patent infringement dispute case may award accusation rejected without waiting for the final result 
of administrative litigation and give the right holder judicial aid through additional accusation.   
For the  awards and reconciliation agreements made by the People 's Court and not executed after 
Patent Re-examination  Board makes the decision of announcing the patent is invalid and before the 
Parties apply for reexaminating  and cancelling  the announcement that t he patent is valid, Article 29 
of Interpretation II has provided relevantly.  
Question  
7. Could China provide information on the general time frame to close one IPR infringement 
case? What is the percentage of cases requesting court enforcement of the judgemen t and what is 
the rate of success?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
For the trial time of an IPR infringement civil case, Civil Procedure Law of China has provided 
definitely. The trial time of the first instance, second instance and retrial of a civil case is respectively 
provided  as follows: Article 149 of Civil Procedure Law of the People 's Republic of China  provides: 
the case applicable to be tried by the People 's Court in accordance with ordinary procedure should 
be closed  within six months after accreditation. In the event of extension required due to a special 
condition, the case may be extended for six months after it is approved by the courts president ; in 
the event of longer  extension, please appeal to the Higher  People 's Court for approval. Clause I, 
Article 207 provides: The People 's Court should close the judged and appealed case within three 
months after the accreditation of the second instance. Any extension due to a special condition 
should be approved by the courts president . Article 207 provides: The judgements and a wards 
coming into force for the case retried by the People 's Court in accordance with Trial Supervision 
Procedure should be made by the court trying the first instance and the judgements and awards 
tried made in accordance with the first instance procedure  are available for Parties for appealing; 
the judgements and awards coming into force should be made by the court trying second instance 
and the judgements and awards made in accordance with the second instance procedure should be 
those coming into force; the judgements and awards made by the higher People 's Court in 
accordance with Trial Supervision Procedure and the second instance procedure are those coming 
into force.  Namely, the time limit of retrial is applicable to  the first instance or the second in stance 
as appropriate.  
For the trial time of a case involving foreigners, Article 270, Civil Procedure Law provides: the time 
for trying a civil case involving foreigners will not be subject to Article 149 and 176.  
The Supreme People's  Court Stipulated  Provisions on Strict Regulation of the Extension of Trials and 
the Postponement of Court Session Holding in Civil and Commercial Cases (Law Release [2018]9) in 
April 2018, further providing the issues such as deduction, extension, re -calculation of trial time . 
4 ACHIEVING SHARED GRO WTH THROUGH DISCUSSI ON AND COLLABORATION  AND 
BUILDING AN OPEN WOR LD ECONOMY  
4.2 Firmly safeguarding the multilateral trading system and striving to  contribute Chinese 
wisdom and s trength , page 13, paragraph 4.11  
It is noted that China, as a participant of the Friends of E -Commerce for Development, is discussing 
the "development implications " of e-commerce at the WTO. Canada shares similar views with regard 
to its Progressive Trade Agenda or other multilateral init iatives such as the G7 commitment for a 
joint-investment of USD 3.8 billion to support global action to equip women and girls with the skills 
needed for the jobs of the future.  
Question  
8. Canada would be grateful to receive more information on China's  position on the "development 
implications " of e-commerce at the WTO and if they have considered discussing commitments with 
regard to supporting minorities and women's  participation in e -commerce?  
Reply  
China attaches great importance to and supports the  discussion of issues related to e -commerce at 
the WTO, emphasizes respect for existing authorization, highlights development, takes full account 
of the actual situation and demands of different developing members, adheres to the step -by-step 
principle , so as to achieve the goal of universal development. E -commerce provides unprecedented 
opportunities for WTO members, especially for developing members, small and medium -sized 
enterprises, women and youth to better participate in the international trade. Chin a is willing to 
discuss this issue and proposes to focus on facilitating cross -border e -commerce trade in goods and 
related logistics and payment services. We will strive to maintain the current discussion momentum, 
and boost positive progress in achieving  the common interests of members. From 8-21 May 2018, 
China held a training class on e -commerce development and multilateral trading system in China, 
attracting 25 representatives from the capital of 15 developing members and the delegation of the 
WTO. The y jointly explored the promotion of e -commerce to development and the significance to WT/TPR/M/3 75/Add.1  
 
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  promote multilateral discussions in WTO and highlight development implications by visiting 
enterprises, exchanging ideas with related departments, and listening to the in troduction of 
international organizations.  
Page 13, paragraph 4.13  
It is noted that China supported the WTO 11th Ministerial Conference on e -commerce by agreeing to 
renew, for another two years, the moratorium against levying custom duties on digital products 
transferred electronically, and that China seeks to promote comprehensive measures on 
e-commerce at the WTO.   
Question  
9. With that said, Canada would like to know if China is supportive of the initiatives taken by the 
"friends of e -commerce " at the WTO towards a more comprehensive discussion to negotiate modern 
e-commerce provisions, such as market access, e -signa tures, and cyber security at the WTO? Also, 
Canada would be grateful if China could indicate whether it intends to join the committee at the 
WTO?  
Reply   
As a member of the friends of e -commerce development, China attaches great importance to and 
supports t he discussion of issues related to e -commerce at the WTO, emphasizes respect for existing 
authorization, strives to maintain the current momentum of discussion, highlights development, 
takes full account of the actual situation and demands of different dev eloping members, adheres to 
the principle of step by step, promotes positive progress in achieving the common interests of 
members, so as to achieve the goal of universal development. China proposes to focus on facilitating 
cross-border e -commerce trade in  goods, directly related logistics and payment services, and 
exploring elements such as electronic signature and transparency. China has made great progress 
in promoting multilateral discussions on e -commerce issues by sharing information among relevant 
WTO bodies, holding seminars in Geneva, and organizing training class in China, and other ways.  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.3.3 Further streamlining administration and delegating powers and improving 
government services , page 19, paragra ph 5.13  
It is noted that the requirements for professional qualification licensing and accreditation were 
significantly reduced in China.  
Question  
10. Could China elaborate on how those requirements were redu ced, including in terms of legal 
services; i.e. could China explain what elements were previously required and have now been 
removed or facilitated?  
Reply  
To reduce professional qualifications of licensing and certification is an important element of 
administrative reform in China. Ministry of Human Resources and Social Security has organized the 
work reducing/ cancelling  professional qualifications licensing and certification. In 2014, Ministry of 
Human Resources and Social Security issued Notice on Is sues Related to Reducing Professional 
Qualifications of Licensing and Certification (MHRSS [2014] 53), defining the four guidelines of 
reducing professional qualification of licensing and certification: I. Cancel the admission -category 
professional qualifi cations set by State Council departments without laws, rules or State Councils 
decisions as the basis. For the professions really  requiring qualifications due to industrial 
management and involving large manpower , the qualifications may be set as professio nal 
qualifications in the category of level evaluation after they are reported to and approved by Ministry 
of Human Resources and Social Security under State Council;  II. The admission -category 
qualifications  set and executed by State Councils departments based on certain laws/rules and not WT/TPR/M/3 75/Add.1  
 
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  close to state security, public security, civilian personal /assets security or  inappropriate to be 
managed in the manner of professional qualification will be cancelled  after relevant laws/rules are 
amended  in accordance  with procedures; III. The qualifications in the category of level evaluation 
set by State Councils departments and nationwide industrial associations/academies. Those 
necessary to be reserved will be incorporated into national uniform management after the y are 
approved  by the Ministry  of Human Resources and Social Security under State Council; IV. Cancel 
the professional qualifications set by local People's  governments and relevant departments. Those 
necessary to be reserved will act as the pilot projects of professional qualifications and be 
incorporated into the national  uniform management of professional qualifications gradually after 
they are approved  by Ministry of Human Resources and Social Security under State Council.  
Since 2014, there have been 434  professional qualifications cancelled . In addition , as required by 
State  Council, all regions have cancelled  all local professional qualifications set by them. Personal 
qualification certifications for keeping, inspecting, and treating state grain reserve  have been 
cancelled . In 2017, Ministry of Human Resources and Social Security under State Council issued 
Notice on Promulgating Catalogue of National Professional Qualifications (MHRSS [2017] 68), 
carrying out inventory management on professional qualific ations and accepting the monitor from 
the society. There are 140 national professional qualifications listed. The qualifications outside should 
not be licensed and certificated as professional qualifications and those inside should not connect to 
employmen t/entrepreneurship except admission -category ones. The admission -category 
professional qualifications promulgated cancelled  such as insurance broker qualification, tour leader 
qualification and tenderer qualification have never been required for relevant j obs. 
Question  
11. Could China confirm that there is no need for a licen ce in order to practice non -administrative 
professions in China?  
Reply  
The non -admission -category professional qualifications among the skill personnel professional 
qualifications will not  be managed by licen ces. But the persons engaged in the jobs requiring 
admission -category professional qualifications incorporated into the catalogue  of national 
professional qualifications need to hold related vocational qualification licen ces in accordan ce with  
relevant laws/rules. There are 140 listed national professional qualifications including 41 admission -
category ones. At present, China only carries out admission control for the jobs requiring admission -
category professional qualifications. In addi tion, the professional qualifications in the category of 
level evaluation will not connect to employment/entrepreneurship. The setting of admission -category 
professional qualifications is strictly required  that the related professions (jobs) must relate to  public 
benefits, or involve national security, public security, personal health, life/assets security and be 
based  on laws/rules or State Councils decisions, such as physicians and lawyers, etc.  
It is mentioned that, from 2013 to 2017, the number of items  for which central government set the 
prices was cut back by 80%, and local government -priced items were cut down by over 50%.  
Question  
12. Could China indicate whether it plans to further reduce the list of items for which central or 
local governments set prices and, if so, what is the timeline envisioned?   
Reply  
Since 2017, the relevant authorities have launched a new round of revision to local pricing catalogue 
to further shrink the local government pricing projects. Up to now, 29 provinces have completed  the 
revision of local pricing catalogue, and the local government pricing projects have shrunk by more 
than 30% on average.  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , page 20, paragraph 5.16  
The repo rt notes that the corporate governance structure of SOEs has "further improved ". WT/TPR/M/3 75/Add.1  
 
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  Question  
13. Could China please provide specific details on the types of improvements that have been 
made?  
There is mention of enhancement in the transparency of state assets management.  
Reply  
Since 2015, Chinese Government has been expediting mixed -ownership reform and developing 
mixed -ownership economy positively in accordance with the requirement -consummati ng 
governance, reinforcing excitation, highlighting major works and improving efficiency and has 
conducted the demonstration of mixed ownership reform in the important fields such as electricity, 
oil, gas, railway, civil aviation, telecommunication and mil itary industry and promoted enterprises 
to establish corporate governance structure with effective balance and flexible as well as efficient 
market -oriented operation mechanism.  More than 2/3 central enterprises have realized mixed 
ownership in their branc hes. 
Question  
14. Could China please provide details on these transparency enhancements and whether there 
are plans for further improvements?  
Reply  
At the end of 2017, China established a system where the State Council reports state -owned assets 
management to  Standing  Committee of the National People's Congress, enhancing the transparency 
of state -owned assets management.  
This paragraph notes that from "2013 to 2017, 34 enterprises supervised by SASAC were 
reorganized. " 
Question  
15. Is the information on these re-organizations available to the public, such as details on:  
a) how were these enterprises re -organized;  
b) what were the methodologies or criteria used to re -organize these entities; and  
c) how were these entities chosen for re -organization?  
Reply  
The Opinions of  the State Council on the Development of Mixed Ownership by State -owned 
Enterprises proposes to combine the reforms in the fields of electricity, oil, natural gas, railways, 
civil aviation, telecommunications and military industries to carry out competitiv e businesses and 
promote pilot demonstrations of mixed ownership reform. Up to now, three batches of 50 pilot 
schemes for mixed ownership reform have been launched, covering central state -owned enterprises 
and some local state -owned enterprises. Through th e reform of mixed ownership, they open up 
competitive business, break administrative monopoly, break market monopoly, promote the 
separation of governments and enterprises, the separation of governments and capital, the 
separation of network and transporta tion, and franchise, allow and even introduce more non -state 
capital into these fields. It fully embodies the requirements of mixed ownership, which improves 
governance, strengthens incentives, highlights the main business and improves efficiency.  
The Stat e-owned Assets Supervision and Administration Commission of the State Council (SASAC) 
has formulated the Notice on Printing and Distributing the Provisions on the Implementation of the 
Matters Related to the Reform of Mixed Ownership by Central State -owned  Enterprises, which 
clarifies the relevant procedures and work requirements. It has also issued the Regulations for the 
Supervision and Administration of trading of Enterprises State -Owned Assets which provided 
operational guidelines for state -owned enterp rises to introduce various types of social capital to 
carry out mixed ownership reform. The Regulations for the Supervision and Administration of WT/TPR/M/3 75/Add.1  
 
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  State -Owned Shares of Listed Companies issued in 2018, has created a fair environment for all types 
of entitie s to participate in the reform of mixed ownership.  
There is no one -size-fits-all quantitative standard for the proportion of state -owned equity holdings 
and state -owned shares, and the pilot reform of mixed ownership is underway, so it is impossible to 
provide the share of the Central state -owned enterprises which still dominate the state -owned 
enterprises after the state -owned shares are divested.  
Question  
16. Can China please share any policy procedures or direction documents provided to local 
government whic h provide instructions on the reform of local SOEs?  
Reply  
Judging from the reform of mixed ownership system, on the one hand, the State Council issued the 
Opinions on the Development of Mixed Ownership Economy in State -owned Enterprises , to guide 
the local government of mixed reform. On the other hand, SASAC has formulated the Notice on 
Printing and Distributing the Provisions on the Implementation of the Matters Related to the Reform 
of Mixed Ownership by Central State -owned Enterprises , which clarifies the relevant procedures and 
work requirements. It has also issued  the Regulations for the Supervision and Administration of 
trading of Enterprises  State -owned Assets which provided operational guidelines for state -owned 
enterprises to int roduce various types of social capital to carry out mixed ownership reform. The 
Regulations for the Supervision and Administration of State -Owned Shares of Listed Companies 
issued  in 2018, has created a fair environment for all types of entities to partici pate in the reform of 
mixed ownership.  
Question  
17. Could China please provide details on how the central government will ensure that local 
governments reform local SOEs?   
Reply  
By focusing on the improvement of property right system and market -oriented alloca tion of factors , 
China will deepen the reform of SOEs, develop mixed ownership economy, fully apply a negative list 
for market access , expedite the market -oriented reform of factors and deepen the fundamental and 
critical reforms such as investment/financing institutional reform and finance & taxation institutional 
reform  
6 THE WAY FORWARD  
Page 22, p aragraph 6.4  
It is noted that China has opened up market access to the manufacturing sector with only a small 
number of exceptions, such as au tomobiles, ships and aircraft, and that these exceptions are now 
in a position to have a greater expansion. China noted going forward, it will ease foreign equity 
restrictions in these industries, automobiles in particular.  
Question  
18. Could China explain how  it intends to further open up market access to the manufacturing 
sector, specifically for the exceptions listed above?   
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Management Measures (Negative List) for Foreign Investment Access 
(2018) , launching opening -up measures in 22 fields. In the field of manufacturing industry, the 
automobile industry has removed the equity ratio restrictions on special vehicles and new energy 
vehicles for foreign investors. In 2020, the equity ratio restriction s on commercial vehicle for foreign WT/TPR/M/3 75/Add.1  
 
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  investors will be removed, and in 2022, that on passenger vehicles for foreign investors and the 
restrictions on at most two joint ventures will be removed. The restrictions on shipbuilding, aircraft 
design, manufacturin g, maintenance and other fields have been removed, basically opening up the 
entire industry.  
Page 22, paragraph 6.2  
The report notes that China will "deepen reforms in fundamental key areas ". 
Question  
19. Could China please confirm which areas/sectors this wou ld include?  
Reply  
To focus on perfecting the property rights system and the market -oriented allocation of factors, 
deepen the reform of state -owned enterprises, and develop a mixed -ownership economy, fully 
implement the negative list system for market acce ss, accelerat e the reform of factor marketization, 
deepen the reform of investment and financing system, reform the fiscal and taxation system. Sexual 
and critical reforms . 
Page 22, p aragraph 6.7  
Canada is pleased to see that China will accelerate its negotiation process to join the WTO Agreement 
on Government Procurement (GPA).  
Question  
20. When will China table its next revised GPA market access offer? [NB: Question also relevant 
for Secretariat Repor t, paragraphs 2.19. and 3.218.]  
Reply  
The Ministry of F inance of China is working with relevant parties to comprehensively improve the 
offer and will submit it to the WTO as soon as possible.  
Report by the Secretariat  - WT/TPR/ S/375 
SUMMARY  
Page 11, paragraph 20  
It is noted that China did not provide the total  subsidy amount for 2015 -2017.  
Question  
1. Could China provide a list of subsidized projects including the amounts provided, particularly 
to SOEs, up to 2017?  
Reply  
Since joining the WTO, the Chinese government has always attached great importance to subsidy 
notifications. In October 2015, China submitted its third central government subsidy notification to 
the WTO; in July 2016, China overcame the difficulties in ins ufficient experience and capability and 
information collection and submitted a sub -central subsidy notification to the WTO covering 100 local 
subsidy policies of 19 provinces and three  cities with independent planning. China's  efforts to fulfil 
its obligat ions in subsidy notifications have been affirmed by many Members. In July 2018, China 
tried to submit its fourth central government subsidy notification and the second sub -central subsidy 
notification before  the WTO 's seventh review on China's  trade polici es. Among them, full coverage WT/TPR/M/3 75/Add.1  
 
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  was realized in the sub -central subsidy notification for the first time. Please refer to the subsidy 
notifications China has submitted.  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments , 1.2.3 O ther structural measures , page 23, 
paragraph  1.28  
The report notes that "Mixed -ownership reforms  have yielded some progress, with 68% of State 
Asset Supervisory Administrative Commission (SASAC) -controlled central SOEs introducin g 
non-State owners by end -2016". 
Questions  
2. Could China please provide similar information for the results of reform at the sub -central or 
local level?  
In this paragraph, it is noted "several troubled SOEs have announced restructuring plans… "  
3. Could China please provide the details of the restructu ring plans?  
In addition, the report states that "SOEs in China have taken a series of measures including 
horizontal consolidation of businesses in the same category, vertical coordination of up - and 
downstream businesses and professional integration with a  focus on key industries ".  
4. Can China please provide examples of each of these methods of SOE re -structuring?  
Reply  to questions  2-4 
Deepen the reform of state -owned enterprises. We will accelerate the reform of mixed ownership, 
improve the corporate governance structure of state -owned enterprises, establish a system for 
reporting the state -owned assets management to the Standing Committee of the National People's 
Congress, and increase the transparency of state -owned asset management. At the end of 20 16, 
more than 68% of the central state -owned enterprises supervised by the State -owned Assets 
Supervision and Administration Commission of the State Council (SASAC) realized mixed ownership. 
From 2013 to 2017, 34 central state -owned enterprises supervised by the State -owned Assets 
Supervision and Administration Commission of the State Council (SASAC) were reorganized.  
Page 23, paragraph 1.29  
It is noted that "by 2020, central SOEs will have a clearer strategic position; the overall structure 
will become mor e rational and state -owned assets will be distributed more efficiently; development 
quality will improve; and a group of innovative and internationally competitive enterprises wi ll be 
established. " 
Questions  
5. Does China have similar goals, strategic positio ns and targets developed for the reform of 
SOEs at the sub -central level? If so, could this please be further elaborated?  
6. If there are no immediate plans in place, could China please elaborate on if and how it plans 
to review the structure of sub -central SOEs?  
Page 23, paragraph 1.30  
It is noted that there is overcapacity in at least ten sectors including coal, steel, cement, plated 
glass, aluminium , chemicals, paper, solar power, shipbuilding and coal fuelled  power and that there 
were capacity and employment reduction targets for the coal and steel sectors for 2016 -2020.  WT/TPR/M/3 75/Add.1  
 
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  Question  
7. During the 6 March 2017 Press Conference, the Head of the National Development and Reform 
Commission, He Lifeng, spoke about further  progress in supply -side structural reforms to include 
capacity reductions of plated glass, cement and electrolytic aluminium . Could you elaborate on the 
plans to implement capacity reduction in these industries and what are the annual targets for 
capacity  reduction? Will there also be employment reduction targets?  
Reply  
The cement, flat glass and electrolytic aluminium  industries continue to pursue market -oriented and 
law-based measures to cut the overcapacity down, apply comprehensive standards to advance  the 
withdrawal of backward capacity in accordance with the laws and regulations.  
The focus on the supply -side structural reform of electrolytic aluminium  industry is to strictly control 
the new capacity, and the construction of the electrolytic aluminium  project shall follow the principle 
of capacity replacement, and no illegal new capacities are allowed.  
Question  
8. Could China please elaborate if there are plans to implement capacity and employment 
reduction targets in the other eight sectors? If so, will  the information be made public?  
Reply  
China will keep reducing excess capacity based on market and laws and promote the withdrawal of 
backward capacity using comprehensive criteria and pursuant to  laws/rules . 
Page 24, paragraph 1.31  
It is noted that banks were encouraged and guided to provide support to build China into a 
manufacturing power and continue to provide  proper financial services for strategic adjustment of 
industrial structure, infrastructure building, and reform and devel opment in key areas (such as 
shantytown renovations, underground utility tunnels, shipbuilding, railways, logistics and energy).  
Question  
9. Could China please elaborate on the types of financial services that were provided to the key 
areas listed?  
Reply  
It is stated that in Article 4 of the Law of the People 's Republic of China on Commercial Banks  that: 
Commercial banks shall work under the principles of efficiency, safety and liquidity,  with full 
autonomy and full responsibility for their own risks, profits and losses and self -restraint. Commercial 
banks shall do business in accordance with laws free from any interference by units and individuals. 
China supports banking financial institu tions to innovate financial products and services under the 
premise of legal compliance, risk control and commercial sustainability, actively develop green 
finance, and support the elimination of overcapacity in coal and steel industries. The specific prod ucts 
and services shall be provided by banking financial institutions based on their own strategic planning, 
market positioning, product service system, and operation management capabilities in accordance 
with market -oriented principles.  
In the process of business development in the areas of shantytown renovation, underground 
municipal tunnels, shipbuilding, railway, logistics and energy, financial institutions need to be 
independent in their own business areas to select the project and choose the specific type of financial 
services in accordance with the principles of commercialization and compliance with relevant laws, 
regulations and regulatory requirements.  WT/TPR/M/3 75/Add.1  
 
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  2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Framework and Objectives , 2.2.1 Institutional framework , page 32, 
paragraph 2.8  
We understand that China is undergoing an institutional restructuring plan since March 2018.  
Question  
10. Would it be possible to get an updated organizational structure of China's  central government 
institutions? (E.g. Minist ries, Agencies, Administrations, etc.)  
Reply  
Please refer to http://www.gov.cn/guowuyuan/zuzhi.htm  
2.3 Trade Agreements and Arrangements , 2.3.1 WTO , page 34, paragraph 2.21, page 178, 
Table A2.1  
It is mentioned that, during the period under review, China submitted to the WTO a number of 
notifications covering a wide range of agreements. In Table A2.1, it is indicated that notifications 
related to the Agreement on Subsidies and Countervailing Measu res cover programmes grante d or 
maintained from 2001 -2014.  
Question  
11. Could China provide details on its envisioned timeline for submitting notifications of subsidies 
granted or maintained since 2014?  
Reply  
As the largest developing member, China has also achieved positive progress in the notification of 
subsidies where information gathering has long been a tremendous obstacle for China. China 
overcame numerous difficulties and tried to submit to the WTO the notifications of 2015 -2016 central 
and local subsidies before the review. There is a major breakthrough in subsidies notification, 
covering not only subsidy policies of the central government and some local places, but also include 
subsidy policies of all administrative regions at the provincial level.  
Question  
12. Will China's  next notification include specific information on its fisheries subsidies 
progra mmes, reflecting the commitment of Ministers at MC11 to strengthen transparency with 
respect to fisheries subsidies through the implementation of their notification obligations?  
Reply  
China has included some of subsidy policies on fishery in the central and sub -central notifications 
that China has submitted . 
2.3.2  Regional Trade Agreements and Unilateral Measures , page 34, paragraph 2.25  
The Secretariat notes that China intends to "construct a high -standard FTA network " that will 
complement ( paragraph 2.11) the multilateral trading system. Recent FTAs negotiated separately 
by Canada and China have included  a stand-alone e -commerce chapter.  
Question  
13. Canada would be grateful if China would comment on its intention to include a stand -alone 
e-commerce chapter in its high -standard FTAs that would include modern provisions such as cross WT/TPR/M/3 75/Add.1  
 
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  border data flows and the non -transfer of source code as a condition of market access? And if so, 
would China seek to bind this stand -alone e -commerce chapter to a dispute settlement mechanism?  
Reply  
Relevant provisions of Article 37 in Chinese Network Se curity Law , as the requirements for operators 
of key information infrastructures rather than all network operators, are not oriented to all data but 
to those key data only. The key data herein are for the whole country rather than a certain enterprise 
or individual. Institutional arrangement has been made in laws for those data required to leave 
China: Data can be transmitted to foreign countries if they do not endanger national security and 
public interests according to safety assessment. Provisions on dat a retention in China and exit 
assessment in Network Security Law  are neither to hinder data cross -border flow nor to restrict 
international trade. China's  foreign trade agreement does not involve source code (SC) transfer.  
Till now, independent chapter on  e-commerce has been designed in the two free trade agreements 
of China: China -RPK Free Trade Agreement and China -Australia Free Trade Agreement. 
Commitments in these agreements are consistent with domestic laws and not applicable to dispute 
settlement mec hanism.  
2.4 Investment regime , 2.4.1 Regulatory framework and market access , page 37, 
paragraph 2.32  
It is noted that the Investment Catalogue contains an investment negative list of industries where 
FDI is restricted or prohibited. It is noted in footnote  23 that the prohibited category includes projects 
that pollute the environment, destroy natural resources or go against social and public interests. In 
Box 2.1, it is further noted that certain industries have been added to the prohibited list in 2017, 
including editing of books and research  institutes of social sciences.  
Question  
14. Given the breadth of terms such as "social and public interests ", what are the criteria or 
methodology by which industries are added to the restricted or prohibited categories of  the 
Investment Catalogues negative list?  
Reply  
In 2018, the Chinese government ratifies the restrictive measures on foreign investment in negative 
list for foreign investment, and we do not adopt restricted or prohibited catalogue any longer.  
Question  
15. Considering the fact that the list is periodically updated, could China clarify whether a 
previously established foreign investment in an industry that is added to the "prohibited "category 
would be allowed to remain in place? If so will China add assuranc es to this effect to its existing laws 
or regulations?   
Reply  
Before then, foreign investment in prohibited industry could exist, but investment increase and 
expansion were forbidden, including capacity increase and scale expansion of established enterpris e.  
Page 39, paragraph 2.36  
It is noted that the State Council has been developing a Market Access Negative List, which is 
currently applied on a trial basis in 15 municipalities and provinces, but is set to become applicable 
throughout the country sometim e in 2018. It is further noted that a foreign investor must first meet 
the requirements set out in the Investment Catalogue, and then those from the Mar ket Access 
Negative List.  WT/TPR/M/3 75/Add.1  
 
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  Question  
16. Could China clarify whether, in the case of a new foreign investment being made in a sector 
that is listed as restricted under both the Market Access Negative List and the Investment Catalogue, 
the investor will have to seek two separate approvals (i.e. one for each measure)?  
Reply  
According to Opinions of the State Council  on the Implementation of the Market Access Negative List 
System (GF [2015] No. 55), market access list is a consistency management measure applicable to 
investors at home and abroad and the unified requirement  for market access management of all 
market su bjects. Negative list for foreign investment, which applies to investment and operation 
conduct ed by foreign investors in China, is a special management measure for foreign investment 
access. There will be no repetition between them, i.e. a restrictive mea sure will not be included in 
the two lists simultaneously.  
Page 40, paragraph 2.37  
Canada notes that according to the Secretariat Report, the Special Administrative Measures for 
Foreign Investment Access to Pilot Free Trade Zones (PFTZs Negative List) has "significant 
advantages " over the 2017 Investment Catalogue. The report notes that the PFTZs Negative List 
has a higher level of openness than the Investment C atalogue in transportation.  
Question  
17. Could China clarify the nature of the advantages in the transportation sector provided by the 
PFTZs negative list over the negative list found in th e 2017 Investment catalogue?  
Reply  
National Development and Reform Commission and Ministry of Commerce issued 2018 national 
negative list for foreign investment of pilot free trade zone at the end of June 2018. Negative list for 
foreign investment of pilot free trade zone specifies the following more open pilot measures further 
based on national open measures: Increase foreign investment equity ratio for new variety breeding 
of wheat and maize and seed production from no more than 49% to no more than 66%; cancel oil 
and gas exploration, development restrictions on joint venture and cooperation; cancel the 
prohibitions for foreign -funded smelting and processing of radi oactive mineral and production of 
nuclear fuel; cancel the restriction that performance agency should be held by Chinese side; change 
prohibiting investment in establishment of artistic -cultural performance group into holding by 
Chinese side; popularize va lue-added telecommunication open measure piloted in  the original 
28.8 km2 area of Shanghai Free Trade Zone into all pilot free trade zones, including cancelling equity 
ratio restrictions of foreign investment in storage and forwarding business, call centr e business and 
domestic multi -party communication service business and ensuring equity ratio of foreign 
investment in domestic internet VPN business does not exceed 50%.  
2.4.2  Exam ination and approval procedures , page 43, paragraph 2.50  
Canada notes that under China's  Free Trade Zone pilot rules, investments by foreign companies will 
be strictly reviewed if they involve a controlling stake of businesses related to various sectors, 
including transportation.  
Question  
18. Could China clarify wh ether the criteria used in the review of these investments is public ly 
available?  
Reply  
In April 2015, General Office of State Council promulgated Trial Measures on National Security 
Review of Foreign Investment in the Pilot Free Trade Zones to try national security review of foreign 
investment applicable to negative list management pattern with the purpose to guide orderly WT/TPR/M/3 75/Add.1  
 
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  development of foreign investment and maintain national security. Measures provides scope  of 
security review, work mechanism & procedure and review elements, etc.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affe cting Imports , 3.1.1 Customs procedures, valuation, and 
requi rements , page 46, paragraph 3.5  
It is noted that China classifies importing and exporting enterprises into different groups into 
different groups for Customs inspection. These enterprises are grouped based on risk analysis.  
Question  
19. What are the criteria used in the risk analysis of enterprises?  
Reply  
Risk control of China Customs is attached with a full set of assessment system for enterprise 
executing risk analysis. It is mainly executed from these two dimensions: enterprise credit and 
enterprise commodity import. In terms of enterprise credit, enterp rise credit rating will be divided 
by laws according to import & export records, law abiding and credit of enterprise, which corresponds 
to different risk levels. More attention will be paid to high -risk enterprise; check proportion will be 
increased in ri sk disposal, e.g. first import & export, smuggling and violation record and other 
indexes. Meanwhile, it is required to combine enterprises sensitivity for imported goods, such as 
commodity under the control of policy  of enterprises import country, permit management required 
or commodity characteristics. In addition, different transport modes are attached with corresponding 
risk indexes, e.g. sensitive route, flight and country of departure.  
3.1.3.4 Preferential tariffs , page 49, paragraph 3.20  
China applies preferential tariffs under its bilateral and regional trade agreements. Chile and 
New Zealand face the lowest average tariff rates, followed by Costa Rica, Iceland, and the ASEAN 
countries (Table 3.3). The share of duty -free tariff lines in China's  FTAs ranges between 9.8% (FTA 
with Australia) and 95.7% (Iceland). Since 2015, preferential tariffs declined for: Macao, China; 
Peru; and Switzerland.  
Canada notes that China offers preferential treatment under its different bilateral and regional trade 
agreements. The Working Party Report on China's  Accession to the WTO, paragraph 91, is a 
Most-Favoured Nation (MFN) forward commitment, stating that "the representative of China 
confirmed that for wood and paper products, the same rates of duty, including the rates applied 
under a preference programme, customs union or free -trade area, would be applied to all imports 
of wood and paper products. The Working Party took note of this Commitment. " Under existing Free 
Trade Agreements (FTAs), China provides duty -free access for Singapore on all wood and paper 
products, which has not to date been extended to other WTO Members on an MFN basis.  
During China's  last TPR in 2016, Canada asked China whether it will extend this preferential access 
on wood and paper produc ts to all WTO Members on an MFN basis. China responded that as the 
scope of wood and paper products are not specified under the relevant commitments, it would study 
this issue further.  
Question  
20. Has China's  further study determined when preferential access on wood and paper products 
will be extended to all WTO Members on an MFN basis?  
Reply  
China's import concessions are in line with the MFN principle.  WT/TPR/M/3 75/Add.1  
 
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  3.1.4 Other charges affecting imports , page 50, paragrap h 3.25  
In the Secretariat report, it is mentioned that "VAT on goods has two rates: 11% (down from 13% 
in July 2017) and 17%. " 
Questions  
21. What is the rationale for having two different VAT rates?  
22. Why are some products at 17% and othe rs at 11%?  
Reply to 21-22 
For the purpose of  further deepening VAT reform and reduce the tax burden on enterprises, from 
1 May 2018, China VAT rates in some sectors, forming the structure of three levels -16%, 10% and 
6% whereof  the former two levels are applicable to  products . 
Generally speaking, the lower VAT rates are usually applicable to livelihood and narrow with the 
main purpose to alleviate the regressivity of VAT. In China, the agricultural food such as grains and 
a few products such as edible vegetable oil, edible sal t, tap water, HVAC and air conditioning apply 
10% and other products apply 16%.  
Questions  
23. Please provide a list of all agricultural products for each VAT rate?  
24. Is there a different VAT rate between further processed and raw agricultural products?  
Reply to 23-24 
According to Provisional Regulations on VAT and other provision, the VAT rate of grains and other 
agricultural products is 10%. The issued Agricultural Products Levies Scope Notes defines the 
concrete scope of the agricultural products applying lower rates.  In April 2017, State Taxation 
Administration and Ministry of Finance issued Circular on Policies for Simplifying and Consolidating 
Value -added Tax (VAT) Rates (Cai Shui [2017] No. 37), sorting out the scope of agricultural products 
applying 10%. Other fur ther processed agricultural products than the preceding  ones apply 16%.  
3.1.5  Import prohibitions, restrictions  and licensing , page 52, paragraph 3.27  
China classifies imports into three categories: not restricted, restricted and prohibited. The import 
of restricted goods is administered through licences or import quotas, although the latter have not 
been applied during the period under review.  
According to news reports (a) and statistics (b) on the Government of China's  website, China issued 
99.21% less q uota volume in the first 12 batches of approved solid waste permits (issued for goods 
listed on the Catalogue of Solid Wastes Which are Restricted to Import and Usable as Raw Materials) 
in May 2018, relative to the quota issued for the same products in May  2017.  
Background:  
a. "news reports " hyperlinks to:  
News report summary from Post: "On 15 May, the Ministry of Ecology and Environment released 
12th batch of approved solid waste permits. In this batch, only four plastic processing companies got 
approval and the approved quota volume is 3 ,066 ton nes. Until now, China has released 12 batches 
approved solid waste permits and the total quota volumes are 55 ,462 ton nes, which are 99.21% 
less than the same period last y ear". 
http://futures.eastmoney.com/news/1512,20180517873366452.html  WT/TPR/M/3 75/Add.1  
 
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  b. "Government of China's  website " hyperlinks to China's  website with statistics on quota 
released for goods in the Catalogue of Restricted Imports for Solid Waste:  
http://www.mepscc.cn/tabid/107/InfoID/2911/frtid/381/Default.aspx  
Question  
25. Does China issue Quota for restricted goods such as those listed on the "Catalogue of Solid 
Wastes Which are Restricted to Import and Usable as Raw Materials "? 
Reply  
Chinese authorities will manage the licensing of import of solid wastes accordin g to The Measures 
for Importing Solid Wastes and other provisions. The authorities will issue licen ces pursuant to  
enterprise applications and approvals for the solid wastes set forth in  Catalogue of Solid Wastes 
Which are Restricted  to Import and Usable as Raw Materials  rather than issue Quota for the total 
quantity of annually importable solid wastes.  
Page 53, paragraph 3.35  
It is noted that the definition or description in "infant industries " (e.g. sector targeted) is not 
provided.  
Question  
26. According to the Foreign Trade Law, it is stated that Chinese authorities may restrict or prohibit 
imports in "infant industries ". Could China provide a definition of what are considered "infant 
industries "? 
Reply  
There is no expression of infant  industry in the Foreign Trade Law. In Article 16 (4) of the Foreign 
Trade Law, it is expressed as special industry. China has not invoked this clause in legal practice.  
3.1.6 Anti-dumping, countervailing, and safeguard measures , page 57, paragraph  3.52 
It is mentioned that MOFCOM publishes a six months notice before the anti -dumping measure is 
scheduled to expire, and initiates a review if the domestic industry provides sufficient evidence that 
expiry would likely lead to a continuation or recurrence of du mping and injury. If there is no petition 
to conduct a sunset review and MOFCOM decides not to initiate a sunset review on its own, the 
AD measure is automatically terminated and a p ublic notice is issued.  
Question  
27. Has China ever self -initiated an expiry review (even if there were no petition from the domestic 
industry) and if so, how often?  
Reply  
No, China has never self initiated  expiry review.  
Question  
28. Could China explain when and how the results of such review announced?  
Reply  
The term of expiry review  is one year and the result will be announced  in a year commencing from 
the initiation.  WT/TPR/M/3 75/Add.1  
 
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  Question  
29. Could China clarify whether an expiry review can lead to the revision of dumping margins (to 
lower or to increase margins of dumping) attributed to exporters?  
Reply  
China will not revise the dumpling margins attributed to exporters in an expiry review.  
3.3 Measures Affecting Production and Trade , 3.3.1 Incentives , page 67, paragraph 3.100  
It is mentioned that, pursuant to the new Interim Measures for the Administration of Central Budget 
Investment Subsidy and Interest Discount Projects, investment subsidies and interest discounts can 
be granted to certain industries and sectors.  
Questions  
30. Which government institution(s) is/are authorized to provide the investment subsidies and 
interest discounts?  
31. Could China provide more details on the conditions that must be met by the eligible industries 
and sectors to receive these investment subsidies a nd interest discounts?  
32. Could China provide more information on investment subsidies and interest discounts provided 
to date under this measure and to which industries and sectors?  
Reply to 30 -32 
This measure, not specific in nature, governing administratio n of the investment subsidies and 
interest discount funds within the central budget, provide mainly for procedures and do not involve 
specific allocation and use of funds. The measure is not the legal basis of the detailed subsidy 
program mes. For the detai led subsidy program me, please refer to China's  subsidy notifications 
submitted.  
Page 67, paragraph 3.101  
It is mentioned that, in December 2016, the NDRC promulgated Interim Measures for the 
Administration of Central Budget Investment (Subsidy) on High-Tech Indus try Development 
Projects.  
Question  
33. Which government institution(s) is/are authorized to provide the investment subsidies for 
high-tech industry development projects?  
Reply  
National Development and Reform Commission, which issues  Provisional Administrative Measures 
on Budgetary Investment of Central Government in Hi -tech Industry Development Project  (FGGJG 
[2016] No. 2514), shall offer relevant subsidy for hi -tech industry development project meeting the 
conditions in accordance with the measu res and the principle of fairness, justice and openness, so 
as to cultivate new kinetic energy for economic development.  
Question  
34. Could China provide more details on the conditions that must be met by the eligible industries 
and sectors to receive these in vestment subsidies?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
For the specific declaration condition, please see Article 3 of Chapter 1 in the Measures. Here are 
the main declaration conditions: Applicant of project should be registered in China and enjoy 
independent corporate qualification and relevant work foundation and necessary condition for 
completing the project; conform to allocation principle in related supporting field and meet the 
requirements in relevant industrial policy and special plan. Project scheme is reasonable and feasible  
and will yield excellent social and economic benefits. Project company enjoys strong technical 
development, fund raising and project implementation capacities and good social credit , and has 
basically met the condition s for implementation. Funds required for the project has been in place  
and the ownership of intellectual property is clear ly defined . 
Question  
35. Could China provide more information on investment subsidies provided to date under this 
measure and to which industries and sectors?   
Reply  
Subsidy is mainly oriented to innovation capability building project, Internet + bid data pilot project 
and information infrastructure project. Relevant projects planned to be supported will be published 
in the website of National Development and Reform Co mmission ( http://www.ndrc.gov.cn/ ) for 
reference.  
Page 68, paragraph 3.106  
It is mentioned that, in its notification of subsidies, China has indicated that the total amount of 
expenditure or revenue forgone is frequently not available due to the absence of a statistics system 
for tax expenditure.  
Question  
36. Could China indicate whether it intends to develop a statistics system to keep a record of tax 
expenditures and revenue foregone, to provide additional details  in future subsidy notifications?  
Reply  
Currently none, so the notification cannot be covered.  
3.3.2 Standards and other technical requirements , Overview , page 71, paragraph 3.114  
It is noted that local and industry/sectoral standards are supposed to be re placed by equivalent 
national standards if and when they are developed, unless the local or industry/sectoral standard is 
stricter than the national one.  
Question  
37. Could China explain what the process is for removing local or industry/sectoral standards in 
such cases of duplication? For instance, is there a group that is responsible for reviewing all local 
and industry/sectoral standards when a new national standard is developed and striking thos e 
standards from the records?  
Reply  
According to provisions in  the Standardization Law of the People's Republic of China , industrial 
standard should be formulated by relevant administrative competent authority of the State Council 
who should establish information feedback and assessment mechanism for standard implemen tation WT/TPR/M/3 75/Add.1  
 
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  and revise or abolish those industrial standards not applicable to social dev elopment and economic 
progress.  
Upon formulating national standard, Technical Committee for Standardization which is composed of 
interested parties should organize the inve stigation, analysis, test, argument and verification of 
relevant matters regarding the standard and ensure the standard is matched with other standards 
concerned.  
Question  
38. How is it determined when local and industry/sectoral standards are stricter  and thu s they are 
not superse ded by the national standards?  
Reply  
An industrial standard should be formulated if there is no recommended national standard or the 
technical requirements need to be unified in a certain industry over China. Pursuant to the latest  
Standardization Law , relevant administrative competent authority of the State Council, before 
formulating an industrial standard, shall investigate the actual demands of related administrative 
competent authority, enterprise, social group, consumer and ed ucational and scientific research 
institutions and argue and assess necessity and feasibility for standard formulation upon project 
approval. It shall, in the course of formulation, solicit opinions in multiple ways according to the 
principle of convenienc e and efficiency, organize investigation, analysis, test and argument of 
relevant matters regarding the standard and ensure the standard is matched with other standards 
concerned.  
Page 71, paragraph 3.115  
Canada notes that this report says that the Standar dization Administration of China (SAC) reports 
to the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ). Canada 
understands from other reports (e.g. http://www.xinhuanet.com/english/2018 -
03/13/c_137035669.htm ) that AQSIQ has been or is going to be shut down and its functions taken 
over by the new State Market Regulatory Administration (SMRA), an organization which is also 
referenced in China 's Governm ent Report to this Trade Policy Review. 
http://www.xinhuanet.com/english/2018 -03/13/c_137035669.htm  
Question  
39. Could China clarify whether AQSIQ is still the organization responsible for SAC? If not, could 
China explain the role of the SMRA and any differences in how it functions compared to AQISQ?  
Reply  
We establish State Administration for Market Regulation acco rding to 2018 reform scheme of the 
State Council by integrating responsibilities of State Administration of Industry and Commerce, 
responsibility of General Administration of Quality Supervision, responsibility of General 
Administration of Food and Drugs, responsibility of National Development and Reform Commission 
in price supervision and inspection and anti -monopoly execution, centralized anti -monopoly 
execution of Ministry of Commerce for operators and responsibility of office of Anti -Monopoly 
Committee of the State Council, which is a department directly under the State Council.  
Standardization Administration of China will keep its name  to the outside, though having its 
responsibility governed by State Administration for Market Regulation , which  will manage the 
standardization work on a united basis.  
Page 72, paragraph 3.118  
It is noted that one of the functions of the revised Standardization Law is "more proactive 
participation in internatio nal standardization activities ". WT/TPR/M/3 75/Add.1  
 
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  Question  
40. Could China p rovide an explanation of particular sectors or types of standards that it plans to 
prioritize through its new and more proactive participation in international standardization?  
Reply  
The prioritize d fields are all those closely related to the development of China's  economy, 
environment and society as well as those  where standard ization  demands are highly needed on the 
market. All these standards may be basic ones such as classified terminology, inspe ction method 
standards or products standards.  
Page 72, paragraph 3.119  
Canada notes that one of the "steps " in the Chinese development of national sta ndards is "opinion 
solicitation ". 
Question  
41. Could China clarify whether the opinion of international stakeh olders is sought as a matter of 
practice, on a case -by-case basis, or not at all?  
Reply  
The national standards are under the stage of soliciting opinions and the exposure draft of them will 
be declared to the mass. All the international interested parties  may bring forth opinions for the 
exposure draft at this stage. At the same time, China will notify  its compulsory national standards 
where international standards are not followed  or which contain the contents not in consistency with 
the technical contents of relevant international standards or exert significant influence on the trade 
of WTO 's other members according to WTO 's relevant requirements in order to accept comments 
from all the relevant countries.  
Canada notes that national standards are to be reviewed after five years of implementation to 
determine if they need to be amended or annulled and that results of the review are made public.  
Question  
42. Is this review process open t o the public for comment?  
Reply  
Yes. 
Question  
43. If so, where are these review processes publicized and are foreign governments or businesses 
able to provide comments that would be taken into account in the review process?  
Reply  
Pursuant to the provisions of the latest Standardization Law , the competent administrative 
standardization department of the State Council shall organize relevant technical standardization 
committees to evaluate if relevant standards are applicable to the demand for economic 
development and technical progress according to the feedback regarding standard implementation 
from different parties when reviewing standards. Within the standard review cycle, all parties, 
including foreign governments or enterprises,  may bring forth the opinions on relevant standards to 
the competent administrative standardization department of the State Council at all times.  WT/TPR/M/3 75/Add.1  
 
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  Question  
44. If the answer  is no to question 41, would China consider public comments, including from 
foreign governments or businesses, that were received before the review process began?  
Reply  
The answer to Question 41 is yes , so this question need s no answering.  
Page 73, paragraph 3.121  
Canada no ted the Chinese government 's measures to protect migrant workers'  rights including 
strengthening the supervision and enforcement of labour dispute . 
Question  
45. Could China elaborate what specific measures that the Chinese government has put in place 
to strengthen labour dispute resolution, especially collective labour dispute resolution?  
Reply  
According to Labour  Law of the People's Republic of China and Law of the PRC on Labour  Dispute 
Mediation and Arbitration, China has built the labour  dispute treatment institution featured mediation, 
arbitration and double trials: after a labour  dispute occurs, the labour  may reach reconciliation 
agreement with the enterpris e through negotiation; if either party refuses negotiation, fails 
negotiation or fails to perform the reached reconciliation agreement, it may apply the mediation 
organization for mediation; if either party refuses mediation, fails mediation or fails to pe rform the 
reached mediation agreement, it may apply the labour  dispute arbitration commission for arbitration; 
if either party disobeys the arbitration award, it may apply the People 's Court for litigation except 
the controversial cases legally applicable to final award. Facing new characteristics of labour  disputes 
in the new times, China will put forward diversified mechanism consummating labour  relation and 
resolving labour  conflicts/disputes, give full play of the four-statutory  labour  dispute treatment  
manners i.e. negotiation, mediation, arbitration and litigation and form multi -element treatment 
pattern of labour  human dispute basically.  
Enhance collective labour  distribute treatment in particular. There is a special chapter in the new 
amendment of Ha ndling Rules for Labour  Human Dispute Arbitration standardizing the procedure 
treating collective labour  human dispute and clearly providing: the arbitration commission should 
give priority to accreditation and trial on the collective labour  human dispute; when treating the 
collective labour  human dispute, the arbitration court should guide Parties for negotiation or mediate 
them before hearing. In addition, the determination of evidence collection term, hearing date and 
place by the arbitrat ion commission and the call term have been shortened.  
On 21 March 2015, the Opinion Concerning Building Harmonious Labour Relations was jointly issued 
by the Central Committee of the Chinese Communist Party and the State Council. The Opinion 
provides that different mechanisms should be established to deal with work stoppages and collective 
actions causing social disturbances. According to the Opinion, work stoppages should be dealt with 
by a tripartite mechanism.  
Question  
46. Could China provide examples of res olving work stoppages through the establishment of 
tripartite mechanisms in accordance with the Opinion?  
Reply  
Opinions of the CPC Central Committee and the State Council on Building Harmonious Labour  
Relations (Zhong Fa [2015] No. 10, hereafter referred t o as the Opinion) proposed to improve and 
coordinate the tripartite mechanisms of labour  relations. Consummate tripartite mechanisms, 
improve work institution and give full play of governments, trade unions and enterprise 
representatives in common resoluti on of key issues about labour  relations. At present, the basic WT/TPR/M/3 75/Add.1  
 
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  form of Chinese tripartite mechanisms is the execution of conference -based institution. The 
three  parties will research key issues about labour  relations in regular or irregular conferences and 
explore the resolution methods and measures together. For the mass events about labour  relations 
including work stoppages, the Opinion clearly  puts forward to build and consummate the prevention 
and contin gency response mechanisms for mass events about labour  relations. With the purpose to 
discover in time and positively solve the symptoms and trends of labour  relations and effectively 
prevent mass events, the three parties have built dynamic monitoring and  warning institution on 
labour  relations and information exchange and inter -communication channel. Once any mass event 
about labour  relations such as large stoppage, the three parties will take positive action, 
communicate information and form the joint fo rce with quick reaction and disposal. Under the 
leadership of governments, assisted by relevant departments, trade unions and enterprise 
representatives, the three parties will urge and guide the enterprises to complete the main 
responsibility and handle  the conflicts in labour  relations in time and properly in accordance with  the 
requirement of hierarchical response and law -based disposal.  
Page 73, Table 3.15  
Canada notes that China approved approximately twice the number of national standards in 2017 
comp ared to 2015 and 2016, while the number of sectoral and local standards approved remained 
roughly  the same over all three years.  
Question  
47. Could China explain whether there was a particular trend (for instance, replacing local 
standards with national or an effort to create new standards for a specific sector) that led to the 
large increase in national standards approved in 2017?  
Reply  
China h as been deepening  the standardization reform since 2015, and has taken a series of 
measures to improve the standard quality and efficiency of preparation and revision. In terms of 
preparation and revision of national standard, China controls the national standard preparation and 
revision cycle effectively by developing standard initiation evaluation, strengthening the whole 
process management of standard project and optimizing the standard approval and distribution 
process. The strengthened management and efficiency improvement are manifested by the increase 
of national standards promulgated since 2017.  
Page 74, paragraph  3.123  
It is noted that China submitted 94 TBT notifications between January 2016 and November 2017. 
This is fewer than the total number o f mandatory standards (national, sectoral and local) that China 
approved in 2016 and 2017 (417, according to Table 3.15). In paragraph 3.121 it is noted that 
"mandatory standards " are technical regulations in the Chinese system.  
Question  
48. Could China explai n how it determines when a technical regulation does not need to be notified 
to the TBT Committee? For instance, which organizations are responsible for making this 
determination and what considerations do they take into account?  
Reply  
The main relevant d epartments such as Standardization Administration of the People 's Republic of 
China and General Administration of Customs shall strictly abide by the transparency principle of 
WTO/TBT agreement. As for the national standards, rules and systems where intern ational standards 
are not followed  or which are not in consistency with the technical contents of relevant international 
standards or exert significant influence on the trade of other WTO members, China will make 
notification  to the outside as per WTO's re levant requirements. All technical committees should be WT/TPR/M/3 75/Add.1  
 
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  responsible for bringing forth the motion of declaration and decide if a notification is necessary 
according to the requirements of WTO/TBT agreement.  
3.3.2.2 Product certification , page 74, paragraph  3.127  
It is noted that no changes have taken place in the laws and regulations governing China's  
certification system since its previous review. Canada notes the publication of the "Opinions of the 
State Council on Strengthening the Construction of Qualit y Certification System to Promote Total 
Quality Management " on 17 January 2018.  
Question  
49. Could China provide an explanation of this document, its purpose as well as any expected 
outcomes?  
Reply  
In order to promote the supply -side structural reform and the reform to streamline administration, 
fully implement the strategy of strengthening the country with quality and implement the Guiding 
Opinions of the CPC Central Committee and the State Council on Conducting Quality Improvement 
Actions, the State Council issues the Opinions of the State Council on Strengthening the Construction 
of Quality Certification System to Promote Total Quality Management (GF [2018] No. 3, hereinafter 
referred to as the Opi nions) on 25 January 2018, which proposes the objectives, tasks and safeguard 
measures for strengthening the construction of quality certification system.  
The Opinions proposes to implement the quality certification system of unified management, joint 
implementation, authority and universality, in accordance with the overall deployment of the 
strategy of strengthening the quality of the country and the overall promotion of quality 
improvement actions, by using international advanced quality management stand ards and methods. 
It promotes the development of the industry and reform and innovation, strengthens comprehensive 
quality management, comprehensively improves the quality of products, engineering and services, 
significantly enhances China's economic quali ty advantages, and promotes economic development 
into the quality era.  
Page 75, paragraph  3.130  
It is noted that there are three more certification bodies authorized to test to CCC marks compared 
to China 's last TPR. In response to the follow -up questions to China 's 2016 TPR 
(WT/TPR/M/342/Add.1, question 91, page 126), China provided a list of mutual recognition 
agreements that it had entered into with other Parties for t he recognition of test reports.  
Question  
50. Has China signed any additional mutual recognition agreements for the CCC system since the 
2016 TPR? If so, could China provide a list of these agreements and the secto rs in which they apply?  
Reply  
Since the 2016 TPR, China has not signed any new mutual recognition agreement related to 
CCC system. 
Also in the follow -up questions to China 's 2016 TPR (WT/TPR/M/342/Add.1, question 91, page 125), 
China noted that the Shanghai Pilot Free Trade Zone recognized third -party testing for motor 
vehicles.  
Question  
51. Are there any other products for which third -party testing is allowed within the Shanghai Pilot 
Free Trade Zone?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
At present, in addition to motor vehicles, third -party testing for medical devices and machine tools 
is also allowed in Shanghai Pilot F ree Trade Zone.  
Question  
52. Could China provide an update on whether it plans to expand third -party testing to other 
sectors or other areas of China?  
Reply  
At present, third -party testing has been replicated  and extended to areas outside Shanghai Pilot 
Free Trade Zone, such as  Shanghai  Port. 
3.3.3 Sanitary and phytosanitary requirements , page 76, paragraph 3.138  
In March 2018, the First Session of the 13th National People's  Congress approved the institutional 
restructuring plan of the State Council. This restructuring is an important part of the overall reform 
process in China and it is anticipated that it will help guarantee support for all ministries.  
Question  
53. Has the rest ructuring plan of the State Council of the 13th National People's  Congress affected 
which ministries are responsible for SPS issues? If so, Canada kindly requests that China provide an 
update on all the ministries involved in SPS issues and when the  change s will come into effect.  
Reply  
It is explicitly specified in the institutional  reform plan of the State Council that the responsibilities 
and team for the entry and exit inspection and quarantine management of General Administration 
of Quality Supervision, Inspection and Quarantine will be transferred to General Administration of 
Customs. As for hygiene and phytosanitation, the working responsibilities that were borne by 
General Administration of Quality Supervision, Inspection and Quarantine such as the quarantine of 
entry and exit animals and vegetation and safety of imported and e xported goods have been 
assumed by General Administration of Customs. General Administration of Customs has sent a 
formal letter to the embassies ( delegations ) of different countries (regions) in China to notify the 
institutional  reform. The reform will no t affect the implementation of SPS measures between China 
and relevant parties in import and export trades.  
After the affiliation is transferred, China 's inspection and quarantine of entry and exit animals, 
vegetation and products can undergo the transitio n period smoothly and a new customs featured by 
higher efficiency, lower customs clearance costs, better business environment, stricter supervision 
and optimized service with socialism of Chinese characteristics will be built by optimizing and 
integrating the relevant former customs functions. China will still work together with international 
community to maintain international rules, bear international responsibilities, perform international 
obligations and ensure the safety of hygiene and phytosanitation so as to realize common  
development.  
Page 76, paragraph 3.140  
In accordance with the provisions of the Food Safety Law, China has proposed Measures for the 
Administration of Certificates Attached to Food Exported to China (Draft). The measure was notified 
(G/TBT/N/CHN/1209) to the World Trade Organization (WTO) Committee on Technical Barriers to 
Trade (TBT) on 19 June 2017. In formal comments submitted on 16 August 2017, Canada raises its 
concerns with the proposed measure, the potential adverse impact of t his measure on trade, and 
concerns with the date of entry into force. Taking into account the strong food safety dimension of 
the proposed measures, Canada informed China of it is view that the proposed measures should also 
be notified to the WTO Committee  on Sanitary and Phytosanitary Measures pursuant to the 
Agreement on the Application of Sanitary and Phytosanitary Measures.  WT/TPR/M/3 75/Add.1  
 
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  On 25 September 2017, China issued an addendum (G/TBT/N/CHN/1209/Add.1) to the WTO TBT 
Committee to inform WTO Members that China has decided to provide a transition period of 
two years from 1 October 2017 to 30 September 2019, relating to Measures for the Administration 
of Certificates Attached to Foods Exported to China (Draft). Canada appreciates China 's decision to 
grant a two-year extension. In the addendum, China noted that it was currently studying the 
comments and applications received from relevant countries/regions and that its decision to provide 
a two-year transition peri od was based on these comments.  
54. Can China please pro vide an update on their review of the comments received from WTO 
Members, and whether or not it is considering changes to Measures for the Administration of 
Certificates Attached to Foods Exported to China (Draft) based on the comments received?  
Reply  
To ensure the safety of imported food and improve the tracking system of imported food, the former 
General Administration of Quality Supervision, Inspection and Quarantine developed the  Measures 
on the Management of Certificates Attached for Imported Food  (hereinafter referred to as the 
Measures ) in 2017 and notified  to WTO in June 2017. The active feedbacks from different parties 
were received after the notification . China pays high attention to comments and opinions of all 
parties. We especially note that  the certifying  process always needs coordination among multiple 
organizations due to different supervision systems of exporting countries/regions. To provide the 
exporter with sufficient time for planning and coordinating, China decided to postpone the pr oposed 
implementation date of the Measures from October 2017 to October 2019 and notified  the decision 
to the WTO in September 2017.  
In March 2018, the first session of the 13th National People's Congress adopted the State Council 
restructuring program me and stipulated that General Administration of Quality Supervision, 
Inspection and Quarantine of the People 's Republic of China shall hand over the entry and exit 
inspection and quarantine management responsibility and personnel to General Administration of  
Customers, P.  R. China . The Measures  have not been released publicly.  
China welcomes constructive comments and suggestions about the implementation of the Measures  
to steadily promote the measures and avoid negative effects on bilateral trade . 
Question  
55. Furthermore, can China provide an update on when it will respond to Canadas formal 
comments submitted on 16 August 2017? And if it is, does China intent to notify to the SPS 
committee?  
Reply  
China has been fully aware of opinions of WTO members and will ha ndle with relevant affairs in 
accordance  with related rules of the WTO.  
3.3.4 Competition policy and price controls , 3.3.4.1 Competition policy , 
3.3.4.1.1  Legislative and institutional framework , page 78, paragraph  3.150  
The report notes that "the Anti-Monopoly Committee of the State Council is currently drafting 
Guidelines on Anti -Monopoly by Abusing Intellectual Property Rights [] to provide guidance on how 
the [Anti -Monopoly Law (AML)] is applicable to intellectual property rights violations, as well as to 
improve the transparenc y of anti -monopoly enforcement. " 
Question  
56. What role, if any, will the State Intellectual Property Office play in investigation of abuse of  IP?  
Reply  
State Intellectual Property Office is mainly responsible for assisting the State Council anti -monopoly 
organizations in carrying out the relevant work and engaging in the perfection of relevant systems. WT/TPR/M/3 75/Add.1  
 
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  According to the requirements of Anti -Monopoly Commit tee Office, State Intellectual Property Office 
participates in drafting the Law Enforcement Guidelines (Draft) for Anti -Monopoly in the Realm of 
Intellectual Property . It aims to propose perfection suggestions from the perspective of intellectual 
property,  cooperate with Anti -Monopoly Committee actively to advance the earlier promulgation of 
law enforcement guidelines, and provide more specific guidelines for enforcement of intellectual 
property.  
Question  
57. What is the timeline for release of the guidelines?   
Reply  
The consultation for the guidelines is being actively promoted and will be officially released after 
revision and improvement.  
3.3.4.1.3 Dominant market positions , page 81, paragraph  3.155  
The report notes that the 2015 SAIC Order No. 74 prohibits IPR holders with a dominant market 
position from refusing to license essential IPRs and discriminating against unjustified licensees of 
equal merit, among others. In addition, "Order [74] also requ ires that IPRs be compulsorily licensed 
if they are considered as an essential facility according to the criteria set out in the Order and forbids 
entering into abusive IP  standard -setting agreements. " 
58. What is considered an "essential IPR "?  
a. What are the r ules around access to an "essential IPR "? 
59. How does China determine whether a party is "discriminating against unjustified licensees of 
equal merit "?  
b. Are parties prevented from signing exclusive licen ce agreements for bona fide business 
reasons?  
60. Could China explain its laws on "abusive IP standard -setting agreements "?  
61. What is the difference between an investigation conducted by 'rule of reason ' or by a 'case-by-
case analysis '?  
Reply to Questions 58 -61 
Necessary intellectual property in the  Rules  refers to the indispensable facility. The identification of 
necessary intellectual property does not only involve its simple concept but also needs to conform 
to the market dominant position defined in  the Anti-Monopoly Law  on the condition that the relevant 
market dominant status has been recognized by the Anti-Monopoly Law . In addition, the affirmation 
of any discriminatory act and monopoly agreement act must be in accordance with the Anti-Monopoly 
Law. The process of affi rming an abusive conduct is based on reasonable analysis, while the case 
analysis explains the que stion from another perspective.  
3.3.4.2 Price c ontrols , page 84, paragraph 3.172  
Canada notes that China has recently liberalized price controls over some com petitive services in 
railway transportation. Canada also notes that China maintains price controls over passenger fee 
rates of domestic civil air routes and the domestic section of international civil air routes (except for 
competitive areas).  
Question   
62. Could China clarify what is meant by "competitive services " and "competitive areas "?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In recent years, in the course of accelerating the price reform in the transportation industry, we 
judge whether a user has the right to select service provider autonomously from such perspectives 
as user's needs, quantity of service providers and market operation, those who meet the 
requirements are determine d as providing competitive services or falling in competiti ve fields.  
Question  
63. Could China please provide a few examples of competitive services and competitive areas?  
Reply  
As for small -scale scattered cargo transportation, there are requirements for service providers on 
flexible and timely transport instead of large-scale transport capability. When compared with railway 
transportation, highway transportation has  the technical advantages and the user can choose any 
service provider from a large resource pool. In this case, this kind of transportation service can be 
defined as a competitive service. For another example, bullet trains which have already been put 
into operation narrow the gap with the civil aviation passenger transport in terms of the travel 
during, facility conditions, quality of service, etc., whic h contributes to great impacts on market 
shares of the civil aviation passenger transport in regard to parallel routes. Accordingly, the civil 
aviation passenger transport that has parallel routes with the bullet trains is a competitive service.  
Question  
64. Is there a set of criteria used to determine which services are competitive, and is it public ly 
available?  
Reply  
It is difficult to define a competitive service or competitive field with a uniform standard since 
differences exist in different transportation sectors in terms of technical and economic features , user 
requirements, and market growth. However, relevant st andards have been formulated and disclosed 
for some specific sectors. For example, for domestic passenger transportation of civil aviation, it is 
stipulated that the short -haul air route less than 800 kilometres  (civil aviation can form a competition 
pattern with surface transport such as railways and highways), the air route paralleling the bullet 
trains (civil aviation can form a competition pattern with the bullet trains), and passenger 
transportation that is running jointly by five airlines or above (a competition pattern formed among 
different airlines) are competitive services and their ticket prices are subject to market regulation. 
Such standards have been released to the public.  
3.3.5 State trading, state -owned enterprises, and privatization , page 8 7, paragraph 3.182  
Canada notes that in China, SOEs and their subsidiaries with mixed ownership play an important 
role in the economy. In China's  response to TPR questions in 2016, China stated it was promoting 
mixed ownership reform among SOEs, encouraging various capital invest in SOE -dominated 
industries, and that the pilot mixed ownership reform was being tested in vario us sectors, including 
aviation.  
Question  
65. Could China provide an update on the status of this mixed ownership reform?  
Reply  
In August 2015, the CPC Central Committee and the State Council printed and distributed Guiding 
Opinions on the Reform of State -Owned Enterprises . The guiding opinions propose propelling the 
reform of state -owned enterprises according to their classifications, developing mixed ownership 
economy, and creating a sound environment for state -owned enterprise reforms. In September, the 
State Council iss ued the Opinions on the Development of Mixed Ownership Economy in State -owned 
Enterprises , making further arrangements for the development of a mixed -ownership economy. In WT/TPR/M/3 75/Add.1  
 
- 49 - 
 
  accordance with the requirements of these two documents, the National Development an d Reform 
Commission and the State -owned Assets Supervision and Administration Commission of the State 
Council, as a co -leader, worked together to advance the pilot reforms of mixed ownership in 
important areas, including seven key fields: electric power, o il, natural gas, railway, civil aviation, 
telecom and military industry. Up to now, 50 mixed ownership pilot reform demonstration projects 
have been launched in three batches, involving central enterprises and some local state -owned 
enterprises. On the bas is of mixed ownership reforms, it is expected to open competitive business, 
eliminate administrative monopoly, break market monopoly, push forward the separation of 
government functions from enterprise management, separation of government functions from 
government management of state -owned assets, separation of infrastructure companies from 
passenger transport companies, and franchise rights, allow and even introduce more non -state-
owned capital, including foreign capital, to access to  these fields, which f ully meets the requirements 
of mixed ownership on governance perfection, motivation stimulation, major work highlights, 
efficiency increase. At present, the pilot enterprises have accumulated considerable  successful  
experience and practices in establishing  a governance mechanism of check and balance by 
scientifically setting equity ratio, in introducing appropriate strategic investors by following strategic 
synergy priority oriented concept, and in implementing employee stock ownership by enhancing 
internal  incentives, and have become the benchmarking pilot enterprises with social demonstration 
effects.  
Page 87, paragraph 3.179  
Question  
66. The report notes that "a Member submitted a counter -notification on Chinese STEs in 
December  2017, listing seven companies that it thinks should be considered as STEs ".  
Reply  
Current names of the seven companies mentioned above are: China Tobacco International Co., Ltd., 
China National Offshore Oil Corporation, Sinochem Group Co., Ltd., China Petrochemical 
Corporation, China National Agricultural Means of Production Group Corporation, Chinatex 
Corporation, and Xinjiang Yinlong International Agricultural Cooperation Co., Ltd.  
Question  
67. Are these companies officially being added to the list of STEs?  
Reply  
The above seven compani es have been formally listed in the state trading notification. For details, 
see G/STR/N/10/CHN, G/STR/N/11/CHN, G/STR/N/12/CHN, G/STR/N/13/CHN, G/STR/N/14/CHN 
and G/STR/N/15/CHN.  
Page 87, paragraph 3.180  
It is noted that companies are predominantly state-owned in sectors such as education, and that 
SOEs are divided into commercial entities and public welfare entities.  
Question   
68. Which governmental bodies in China regulate or control which educational institutions in China 
managers in state -owned -enter prises may attend to receive training?  
Reply  
As required by the training contents and course setting, the educational institution that the 
leadership of central enterprises  choose  include not only state-owned  but also private, foreign -
funded and overseas educational institutions.  WT/TPR/M/3 75/Add.1  
 
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  Question  
69. Is there a separate governmental body that regulates or controls which educational institutions 
managers in private enterprises in China may attend?  
Reply  
There  is no separate governmental body that regulates  or controls which educational institutions 
managers in private enterprises in China may attend.  
This para graph  notes that "SOEs are divided into commercial entities and public welfare entities ". 
Question   
70. Given the number of SOEs in Table 3.19, would it possible to please have this table further 
divided into which of these SOEs are commerci al vs. public welfare SOEs?  
Reply  
SOEs are divided into commercial entities and public welfare entitie s, but the number of each is to 
be confirmed as we have no detaile d information now . 
Page 87, paragraph 3.182  
The report states that SASAC is "in charge of contributing capital to and appointing top managers in 
SOEs under its management. " 
Question   
71. Could China please provide details on the following:  
a. What evaluation criteria are used to provide capital contributions to SOEs?  
Reply  
According to relevant requirements of the Government Information Disclosure Regulations, the 
information related to the central state -owned capital operation budget and actual budget is 
disclosed on the website of the Ministry of Finance, including the capital injection of state -owned 
enterprises. Relevant information ca n be found on relevant websites.  
Question  
b. How top managers are appointed into management positions in SOEs (e.g., evaluation 
criteria, methodology, etc.)?  
Reply  
Such normative documents and articles of association as the Company Law and the Law on the 
State -owned Assets of Enterprises jointly con stitute the legal system  governing the selection, 
appointment and management of SOE leadership.  
The report states that "the number of SOEs under SASAC's authority totalled 98 ..." 
Question  
72. These are the number of central -level SOEs under SASACs authority; c ould China please 
provide the number of sub -central or local level SOEs under a similar authority (e.g., provincial -level 
SASAC)?  WT/TPR/M/3 75/Add.1  
 
- 51 - 
 
  Reply 
SASAC and related enterprises release reorganizing notifications to the public via websites. During 
the reorganization,  enterprises involving the integration of listed companies should disclose 
information in strict accordance with the requirements from China Securities Regulatory Commission.  
Page 89, paragraph 3.188  
The report notes that China expects that the China Struc tural Reform Fund will be used to "enhance 
industrial integration, and improve the performance and efficiency of capital operations. " 
Question  
73. Could China please provide details on how improved performance and efficiency of SOE 
operations would be reviewed  and evaluated?  
Reply  
State Asset Supervisory Administrative Commission (SASAC) formulated the Notice on Printing and 
Distributing the Provisions on the Matters Related to the Implementation of Mixed Ownership Reform 
in Central Enterprises, which clarifies relevant procedures and work requirements. SASAC also 
printed and distributed the Measures for the Supervision and Management of State -owned Asset 
Trading of Enterprises, which provides operational guidelines for state -owned enterprises to 
introd uce various types of social capital to carry out mixed ownership reform. The Measures for the 
Supervision and Management of the State -owned Shares of Listed Companies promulgated in 2018 
creates a fair environment for all types of entities to participate i n mixed ownership reform.  
3.3.6 Government Procurement , 3.3.6.2, L egal and institutional framework , page 90, 
paragraph 3.192  
Canada notes that China 's proposed amendments to the Tendering and Bidding Law and its 
Implementing Regulations adjust the time -period for submitting tenders from no -less-than 20 days 
to no-less-than 10 days when conducted online.  
Question  
74. Could China please explain the rationale for reducing the time available for the submission of 
tenders on government procurement when conducted online?  
Reply  
The online application has shortened the circulation speed and speeded up the promotion process. 
At the same time, the bidding period of not less than ten days is sufficient in practice.  
Question  
75. Canada notes that the Government Procurement Law and its Implementing Regulations 
remain the primary legislation regulating government procurement activities  in China. Canada also 
notes that the finance departments at different sub -central levels of government are the authorities 
responsible for supervising government procurement at the sub -central level, including making 
relevant implementation rules.  
76. Could China clarify whether sub -central governments, when making implementation rules for 
state-level government procurement, have any flexibility to deviate from the Government 
Procurement Law?  
Reply  
Governments below the central level should abide by the prov isions of the Government Procurement 
Law and its implementation regulations, and must not deviate.  WT/TPR/M/3 75/Add.1  
 
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  Page 91, paragraph 3.195  
Canada notes the inclusion of China's  use of public -private partnerships (PPP) in government 
procurement projects and Administrative Measures on Government Procurement of Public -Private 
Partnership Projects as new items in the 2018 report. Canada would appreciate more information 
about PPP pr ojects and requirements in the Administrative Measures.  
Question  
77. Are PPP projects open to foreign suppliers?  
Reply  
There is no restriction on foreign suppliers participating in PPP projects in government procurement.  
Question  
78. Does China have statistics co ncerning the value of PPP projects?  
Reply  
Please consult the Finance Department of the Ministry of Finance for the statistics of PPP projects.  
Question  
79. What percentage of China's  procurements involves PPP projects?  
Reply  
There is no such data.  
Question  
80. How and why are the requirements on transparency and monitoring in the procurement 
process higher for PPP projects vers us conventional procurement?  
Reply  
In accordance with the Administrative Measures for Government Procurement of Government and 
Social Capital Cooperation Projects (Treasury [2014] No. 215),  the PPP projects shall issue pre -
qualification and procurement notices, announcements of proposed bid -winning results, successful 
bid-winning results, and Procurement Contracts. For the PPP project di sputes handling and 
supervision and inspection, the government procurement legal system should be implemented. Since 
the implementation of PPP projects takes a long time and involves public service matters, in order 
to safeguard national interests and soci al public interests, the PPP in government procurement 
projects are required to publicize the results of the proposed bid -winning transactions and accept 
social supervision.  
Page 91, paragraph 3.195  
The report outlines the amount of overall government proc urement by local entities and central 
government excluding procurement by SOEs, which according to the Government Procurement Law, 
does not fall under the definition of government procurement.  
Question  
81. Could China please provide similar figures on procurem ent by SOEs?  WT/TPR/M/3 75/Add.1  
 
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  Reply   
None.  
Question  
82. If figures on procurement by SOEs are not available, does China plan to collect and publish 
related statistical data in the near future?  
Reply  
None.  
3.3.6.3 Procurement methods and procedures, p age 91, paragraph 3.197  
The report describes the applicable laws and regulations governing centralized and decentralized 
procurements, including reference to designated and procuring agencies and the national 
registration system. The report indicates that there is no uniform cata logue or threshold across the 
country for centralized procurement.  
Question  
83. How are "designated agencies " defined?  
Reply  
According to Article 12 of the Implementation Regulations of the Government Procurement Law, a 
centralized procurement agency refers to a non -profit legal person established by the people's 
government at or above the municipal level in accordance with the law.  
Question  
84. How are "quality goods and services, at a lower -than-average -for-the-market price " 
determined and defined in the Govern ment Procurement Law?  
Reply  
Quality goods and services, at a lower -than-average -for-the-market price is not defined in The 
Government Procurement Law.  
Question  
85. What types of goods, services and construction services would not be included in the 
Centralized Procurement Catalogues?  
Reply  
The centralized procurement catalogue does not include the goods, projects, and service projects 
used less by the purchasers or where the standards such as technology and services are not uniform.  
Question  
86. Are foreign -owned service providers that operate in China eligible for inclusion in the national 
registration list of professional procuring agencies?  
Reply  
Any unit that meets t he conditions stipulated in the Interim Measures for the Administration of 
Government Procurement Agencies can become a government procurement agency.  WT/TPR/M/3 75/Add.1  
 
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  Page 92, paragraph 3.198  
As is mentioned in both the Government and the Secretariat reports, China is currently negotiating 
the terms of its eventual accession to the GPA. However, the following measures affecting 
government procurement in China have been mentioned in previous TPR s as possibly conflicting with 
GPA rules:  
a. Government Procurement Law (2014), in particular the buy -domestic provision found 
in Article  10.  
 
b. Administrative Measures for Government Procureme nt of Imported Products (2007).  
Question  
87. Are there other measures in China's domestic government procurement framework that will 
need to be adjusted to comply with GPA rules?  
Reply  
At present, the Ministry of Finance of China is sorting out the inconsistency between domestic 
government procurement measures and the GPA. China will adjust these measures in a timely 
manner in accordance with the GPA regulations and the outcome of the negotiations.  
Question  
Regarding Government Procurement Laws and GPA rules, China replied to the previous TPR 2016 
(WT/TPR/M/342/Add.1, page 109, question 131), that the [China] related departments/units were 
making a comparative study on Government Procurement Laws and GPA rul es. 
88. What were the results of this study? Could China please share the result?  
Reply  
No information is available.  
Quest ion 
89. Could China please provide a list of other laws and administrative regulations that would 
provide exceptions to the Article 10 buy -domestic provision of the Government Procurement Laws?  
Reply  
The exceptions to the provisions of Article 10 of the Government Procurement Law, Buy Domestic 
Products, do not involve other legal and administrative regulations.  
Question  
Canada notes that The Government Procurement Law retained its "buy -domestic" (Article 10) 
provision when it was amended in 2014, and that  there are no official criteria for defining what 
constitutes a domestic product. Canada also notes that in response to a question on what constitutes 
a domestic product in its 2016 TPR, China responded that related departments/units of Chinese 
government are developing an identification standard and management method regarding th e 
domestic product procurement.  
90. Could China clarify whether work on developing an identification standard and management 
method regarding the domestic product procurement is still ongoing and when it is expected to be 
completed?  WT/TPR/M/3 75/Add.1  
 
- 55 - 
 
  Reply   
At present, the Ministry of Finance of China is working with relevant departments to speed up this 
work and strive to introduce it as soon as possible.  
Page 182, Table A2.3 Industries in which FDI was /is restricted, 2015 and/ or 2017  
Canada notes that transportation sectors that do not appear in the 2015 foreign investment 
catalogue and that have been added to the 2017 foreign investment catalogue include Construction 
and operation of the railway network, international maritime transpo rt companies, Construction and 
operation of the civil airport and Public air transport companies.  
Question  
91. Could China clarify whether China has added additional restrictions on investment in these 
sectors (as described in the table), or whether they were added to the 2017 catalo gue for a different 
reason?  
Reply  
Catalogue of Industries for Guiding Foreign Investment  (2015) and Catalogue of Industries for 
Guiding Foreign Investment  (2017)  stipulate restrictive measures for the transportation industry. In 
Catalogue of Industries for Guiding Foreign Investment  (2015), railway passenger transportation 
companies, highway passenger transportation companies, water transport companies, and general 
aviation companies engaging in business flying, aerial tours, shootin g, prospection, industries, and 
other business are classified into restricted items while air traffic control is classified into a prohibited 
item. In Catalogue of Industries for Guiding Foreign Investment  (2017), railway passenger 
transportation companies , domestic water transport companies, international sea transport 
companies, public air transport companies, and general aviation companies are classified into 
restricted items while air traffic control is classified into a prohibited item.  
On 28 June 2018 , National Development and Reform Commission and the Ministry of Commerce of 
the People 's Republic of China jointly released the Special Management Measures (Negative List) for 
Foreign Investment Access (2018)  to eliminate the limitation on foreign investm ent to railway 
passenger transportation companies, international sea transport, and international shipping 
agencies in the realm of transportation.  
3.3.6.4 Other policy considerations in government procurement , page 95, 
paragraph  3.210  
Question  
92. Could China  please provide some examples of how it has used information technology to 
improve efficiency in government procurement?   
Reply  
Some places, such as Zhejiang and Guangdong, have improved the efficiency of government 
procurement by introducing e -commerce pr ocurement models.  
Page 95, paragrap h 3.211  
It is noted that Article 9 of the Government Procurement Law provides that government procurement 
shall be carried out to facilitate the realization of the economic and social development policy goals 
of the State, including environmental protection, assistance to underdeveloped or ethnic minority 
regions, and promoting the development of SMEs.  WT/TPR/M/3 75/Add.1  
 
- 56 - 
 
  Question   
93. Does China collect and publish statistical data linking government procurement to China's  
policy goals unde r Article 9?  
Reply  
Relevant data was already included in the annual government procurement statistics.  The amount 
of the contract awarded to the SMEs was also disclosed in the final accounts.  
Question  
94. Could China please provide a list of procurement policies and/or program mes in support of 
Article 9 policy goals?  
Reply  
At present, to promote the development of small and medium -sized enterprises and prison 
enterprises, the employment of disabled people, and to prioritize procurement of energy -saving an d 
environmentally -friendly products, policies have been introduced in the government procurement 
fields. Please refer to the China Government Procurement Network at www.ccgp.gov.cn  for detailed 
information.  
Page 95, paragraph 3.213  
It is noted that relevant authorities issue and update the separate lists of energy -saving products 
and environment -friendly products regularly.  
Question  
95. Could China please indicate where the lists of energy -saving products and environment -
friendly products can be found?  
Reply 
In terms of  energy saving and environmentally friendly products, China releases such 
recommendatory lists as Energy Star Product Catalogue, Recommendatory Catalogue of Equipment 
with National Industry Energy Saving Technology and Green Design Product List on a regular basis.  
96. How often does China update its lists of energy -saving products and environment -friendly 
products?  
Reply  
It is released every six months.  
3.3.6.5 Suppliers complaint mechanism , page 96, paragraph 3.215  
97. Could China please explain the new Measures regarding suppliers ' complaints concerning 
government procurement?  
Reply  
The Ministry of Finance revised and promulgated the Methods for Questioning and Complaints in 
Government Procurement (Order No. 94 of the Ministry of Finance), which  took effect on 
1 March  2018.  WT/TPR/M/3 75/Add.1  
 
- 57 - 
 
  Page 96, paragraph 3.217  
The report mentions that in 2015, the finance authorities at various levels all over China accepted 
2,629 government procurement complaints raised by suppliers. During China's  2016 TPR, the 
Secretariat 's report noted that in 2014, the finance authorities at various levels all over China 
accepted 1,337 government procurement complaints raised by suppliers, and 1,0 79 complaints 
reported in 2013.  
Question  
98. Are there statistics on the number of complaints by  supplier that have not been accepted?  
Reply  
None.  
Question  
99. What accounts for the 96% increase in acceptance of government procurement complaints 
raised by suppliers?  
Reply  
The main reasons for the increase in complaints are that the number of cases has increased 
correspondingly with the increase in the size and the number of government procurement projects, 
increased suppliers'  awareness of legal rights protection, as well a s higher credibility of financial 
department in handling these cases.  
Question  
100.  Do foreign suppliers have the ability to make government procurement complaints?  
Reply  
Suppliers participating in government procurement activities can file a complaint in acco rdance with 
the law.  
Question  
101.  Could China please give examples of how the complaint handling mechanism has been 
improved through the "establishing a multi -departmental cooperation and coordination mechanism 
and an offence -disclosing mechanism? "  
Reply  
As China has not sorted out the information  in this regard, we could not provide now . 
3.3.7 Intellectual property rights, 3.3.7.2 Indus try property,  3.3.7.2.2 Trademarks , 
page  101, paragraph  3.236  
The report notes that "prior right -holders or relevant stakeholders have a five -year period to contest 
registration of a trademark and requests its revocation to the Trademark Review and Adjudication 
Board. This timeframe limitation does not apply in  cases of abusive registration. "  
Question  
102.  Can China explain what the time frame is for cases of abusive registration?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Exceptions  where abusive registration acts are free from the five -year limitation according to 
the report released by the Secretariat are incomplete. According to Article 45  of the Trademark Law , 
the application for announcement of invalidation of a trademark registered by others shall be filed 
within five years from the day the trademark is registered. For abusive registration, the well -known 
trademark ownership is not subject to th e time limit of five years. For abusive registration, the well -
known trademark ownership is not subject to the time limit of five years . described in the Article 
indicates the following indispensable conditions where an application for announcement of 
invalidation of a registered trademark can be free from the time limit: first, the registered trademark 
is abusive registration; second, the cited trademark is a well -known trademark; third, the 
invalidation announcement application is submitted by the well -known cited trademark owner. The 
above conditions need to be satisfied simultaneously instead of only the condition of abusive 
registration . An invalidation announcement application that satisfies the above conditions is not 
bound by time.  
Question  
103.  Can China  explain what constitutes an abusive registration?   
Reply  
Abusive registration refers to a situation where  the applicant is aware of or shall be aware of someone 
else's  well-known trademark ownership but still registers the trademark before the owner does.  
Question  
104.  Can China provide an example of a situation when an abusive registration was found and what 
were the consequences from that finding for the applicant?  
Reply  
For example, a situation in which a trademark applicant and a registrant of a cited trademark have 
had a trade relationship and know  their trademark, and then pre -registered in China can be 
attributed to a bad -faith registration. If such behaviour  is invalid in accordance with of Article 45 of 
the Trademark Law the registered trademark sh all be deemed as invalid from the beginning.  
Page 101, paragraph  3.239  
The report notes "that since 2014, the SAIC, together with other competent authorities, has 
conducted a series of special supervision campaigns to investigate such illegal acts as abusi ng, 
infringing or counterfeiting highly reputed trademarks, and foreign trademarks, and to crack down 
on online trademark infringement crimes, with priority given to online trading platforms, online 
trademark infringements and the sale of cou nterfeited or shoddy products. " 
Question  
105.  Can China provide information about campaigns that took place in 2017/18 and what kinds of 
actions were taken to specifically t arget online trading platforms?  
Reply  
According to the unified deployment of the former Administration  of Industry and Commerce, from 
the end of September 2017 to March 2018, a special campaign to combat trademark infringement 
was launched in the former industrial and commercial system. Focusing on well -known trademarks, 
geographical indications, foreign -related trademarks and old -name trademarks, the special action 
increased the traceability of the source of trademark infringement cases, and a full -chain attack on 
the production, sale and registration of trademark infringing goods was carried out to effect ively 
prevent and curb the regional and industrial risks caused by trademark infringement, and to improve 
the effectiveness of trademark administrative law enforcement.  WT/TPR/M/3 75/Add.1  
 
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  On 20 December 2017, in order to track the investigation and handling of cases, and to ensure that 
the specific actions are effective, the Trademark Office organized a symposium on trademark 
administrative law enforcement by the national industry and commerce and market supervision 
departments in Huangshi, Hubei Province, which coordinated t he problems encountered in the 
investigation and handling of local cases, and deployed the next phase of the special operations. All 
localities were required to actively promote the in -depth implementation of special actions in 
accordance with the program me requirements and time schedule.  
During the special action, the national industrial and commercial and market supervision 
departments investigated 4,418 cases of clues, investigated and dealt with 2,270 cases, involving 
more than 50 million yuan of illega l business sales. By the end of April this year, 1975 cases had 
been settled in the trace source special actions, with 25.33 million yuan of penalty collected, 23  cases 
transferred to the judicial organs, 48 workshops and sales locations of fake goods deno unced. At 
present, some cases are still being actively investigated.  
Question  
106.  What impact does China believe that these campaigns had? Has China collected information 
to measure the impact and if so, how did it do so and what were the findings?  
Reply  
In 2017, the Intellectual Property Office participated in the National Anti -Counterfeiting and 
Infringement Campaign organized by the National Leading Group Office for Combating Infringement 
and Counterfeiting. The campaign is a routine supervision conducted once a year, whose main 
purpose is to understand the implementation progress of combating infringement and counterfeiting 
in various provinces, to find out the problems and deficiencies, and to promote advanced work 
experience.  
The campaign was mainly carr ied out through self -evaluation by local governments, daily evaluation 
by the competent authorities, and on -the-spot supervision by the Leading Group of the State Council 
for Combating Infringement and Counterfeiting. The results were linked to the assessm ent of local 
government work, and thus remarkable results were achieved to urge the local governments to 
implement the task of combating infringement and counterfeiting deployed by the State Council.  
3.3.7.3 Copyright and related rights , page 103, paragrap h 3.247  
The report notes that "In September 2017, the NCAC [National Copyright Administration of the 
People's Republic of China] issued an Action Plan on IPR Protection in Foreign Funded Enterprises ". 
Question  
107.  Can China explain what the aim of the Action Plan is and why it only targets Foreign Funded 
Enterprises?  
Reply  
The Action Plan for Intellectual Property Protection of Foreign -invested Enterprises puts forward 
11 tasks, clarifying the division of responsibilities of relevant departments, and demanding  severe 
crackdown on the infringement of trade secrets, patent rights, and new plant variety rights, malicious 
cybersquatting trademarks and copycat brands, and also other illegal and criminal activities in the 
Internet field including infringement and pir acy. Through strengthening the supervision on key links 
such as import and export and delivery, focusing on investigating a number of infringement and 
counterfeit criminal cases with serious circumstances and adverse effects, the interests of right 
holders  are effectively protected.  
Question  
108.  Is there a similar plan targeting Chinese Funded Enterprises?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The National Copyright Administration of China has been conducting the Online Sword Campaign 
against online infringements and piracies in collaboration  with the Ministry of Public Security, the 
Ministry of Industry and Information Technology, and State Internet Information Office for 
13 consecutive years since 2005, which has significantly improved the Internet copyright protection 
environment and receiv ed recognition of domestic and overseas right holders. This campaign equally 
treats the copyright protection of Chinese and overseas right holders without discrimination.  
Question  
The Action Plan for Intellectual Property Protection of Foreign -invested Enterprises was initiated by 
the former National Leading Group Office for Combating Infringement of Intellectual Property Rights 
and the Production and Sale of Counterfeit and Inferior Commodities. The office organizes related 
actions on a regular or irreg ular basis, that is, both for foreign -invested companies and for Chinese 
companies.  
109.  What were the results of this campaign? With the change of the institutional structure of IPR 
departments, will CNCA keep the authority of copyright enforcement? If so, wha t types of cases will 
CNCA deal with?  
Reply  
The Action Plan for Intellectual Property Protection of Foreign -invested Enterprises was initiated by 
the former National Leading Group Office for Combating Infringement of Intellectual Property Rights 
and Manuf acturing and Selling Counterfeit and Inferior Commodities.  
At present, the reform of the IPR departments, including the National Leading Group Office for 
Combating Infringement of Intellectual Property Rights and the Production and Sale of Counterfeit 
and Inferior Commodities, and the NCAC, are underway. The functions of the above -mentioned 
institutions will be determined after the completion of the institutional reform.  
3.3.7.4 Other IPRs; Undisclosed information and trade secrets , page 105, paragraph  3.256 
The report notes that "an amendment to the Anti -Unfair Competition Law was issued by the National 
People's Congress Standing Committee on 4 November 2017 and entered into force on 
1 January  2018, " including a number of amendme nts on trade secret protection.  
Question  
110.  Have there been any trade secrets cases under the amended Anti -Unfair Competition Law and 
if so, can China please provide details?  
Reply  
The new Anti-Unfair Competition Law that entered into force on 1 January 2018 has modified and 
improved the provisions on trade secret protection and strengthened the protection of trade secrets. 
It further defines  trade secret, no longer emphasizing the practical utility; makes more scientific and 
reasonable provisions on the extent of operators taki ng of confidentiality measures; adds the 
provision, the supervision and inspection departments and their employees shall have an obligation 
to keep the trade secrets known in their investigations confidential; and imposes stricter 
administrative punishment  for acts infringing upon trade secrets, to a maximum of CNY three million.  
Question  
According to statistics, the administrations for industry and commerce and market regulation across 
the country investigated and treated a total of five cases involving t rade secret infringement from 
1 January 2018 when the new Anti-Unfair Competition Law  entered into force to the end of May. In 
light of the particularity of the cases involving trade secret infringement, the disclosure of such cases 
shall be permitted by t he parties concerned.  WT/TPR/M/3 75/Add.1  
 
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  111.  Can China provide an overview of what prohibitions under the criminal law apply to trade 
secrets and what are the penalties available?   
Reply  
In accordance with the "Criminal Law of the People's Republic of China", those infringing on trade 
secrets and causing major losses to the right holders of trade secrets, shall be sentenced to fixed -
term imprisonment of not more than three years or criminal detention, and shall also or shall only 
be fined; if causing particularly serious conseq uences, they shall be sentenced to at least three years 
and up to seven years in prison, and shall also be fined.  
Question  
112.  Can China provide details about any criminal cases that have been pursued for trade secret 
violations and what were the outcomes?  
Reply  
According to the "Criminal Procedure Law of the People's Republic of China", those involving trade 
secrets, if the parties apply for a non -public hearing, the party concerned may apply for private 
hearing. For specific referee documents involving tra de secrets, log in to the China Judgment 
Document Network for enquiries. Http://wenshu.court.gov.cn/  
3.3.7.5 Enforcement, 3.3.7.5.2 Administrative enforcement , page 108, paragraph  3.267  
The report highlights a campaign of "Traceability to combat trademark infringement and that 
authorities consider the campaign has effectively prevented and contained the regional and industrial 
risks of trademark infringement. " 
Question  
113.  What actions or mea sures did the campaign of Traceability involve?  
Reply  
According to the unified arrangements of the former State Administration for Industry and 
Commerce (SAIC), the former SAIC carried out the special campaign of Traceability for cracking 
down on trademark infringement in the whole system from the end of September 2017 to 
March  2018, which focused on well -known trademarks, geographical indications, foreign trademarks 
and time-honoured  trademarks, increased the efforts of tracing the source of trade mark 
infringement cases, cracked down on the production and sales of trademark infringing commodities, 
manufacturing of registered trademark indications and other links, effectively prevented and 
contained the regional and industrial risks of trademark inf ringement, and effectively enhanced the 
trademark administrative law enforcement efficiency.  
Question  
114.  How does the campaign of Traceability effectively prevent and contain the regional and 
industrial risks of trademark infringement?  
Reply  
By the end of Ap ril this year, 1,975 cases were closed, CNY 25.33 million were confiscated, 23 cases 
were transferred to judicial authorities, and 48 dens making and selling fake goods were destroyed 
in the special campaign of Traceability across the  country, and some cas es are still being investigated 
and dealt with.  
115.  What were the results and findings of the campaign?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The administrations for industry and commerce and market regulation across the country inspected 
4,418 case clues, placed 2,270 cases on file for in vestigation, and investigated and treated over 
CNY 50 million amount of illegal turnover during the campaign.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.1 Features and market development, 
page  111, paragraph 4.2  
In the Secretariat report, it is mentioned that no data were made available by the authorities on the 
volume of production of cereals, fruits and nuts, and vegetables.  
Question   
116.  Could China provide data for volume of production of cereals, fruits and nuts,  and vegetables 
for 2013 to 2017 of cereals, fruits and nuts, and vegetables? If not, why?  
Reply  
The National Bureau of Statistics started the 3rd National General Surveys of Agriculture in 2016, 
and is now assessing the general survey data of the sown area and production volume of the 
country's major crops in 2016. According to the Regulation on National General Surveys of 
Agriculture  and practices  of previous general surveys, the historical data since the 2nd National 
General Surveys of Agriculture in 2006 are being revised, therefore, the production volume data of 
relevant crops are not available for the moment. The assessed and revised data will be available in 
the second half of this year after the work is done.  
Pages 112 -113, paragraph 4.3  
According to the Secretariat report, soybeans represented about one third of all imports of 
agricultural products into China from 2013 to 2017. However, by M arch 2018, China 's imports of 
soy beans had decreased from US D 2.72 billion in 2017 to USD 2.39 billion (Statista UK).  
Question  
117.  Could China explain if this change is due to a policy direction to increase domestic production 
or other factors?   
Reply  
China could not verify the accuracy of the data provided by Canada, so no comments will be made 
here. According to the statistics of China's  customs, China imported 19.567 million ton nes of 
soybeans in the first quarter of this year, increasing  by 47,000 t onnes year on year, creating a 
historical same -term new high.  
4.1.2 Policy objectives and administration, page 113, paragraph 4.5   
In the Secretariat report, it is mentioned that "China plans to deepen the reform on pricing 
mechanisms for major farm produ cts to strengthen the role of market mechanisms, so as to assure 
that farmers sell their harvest at reasonable prices."  
Question  
118.  Could China explain in more details how it plans to reform pricing mechanisms?  
119.  Could China list for which major farm products it plans to reform pricing mechanisms?  
120.  Could China indicate on when this reform would take place?  WT/TPR/M/3 75/Add.1  
 
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  Reply to Questions 115 -117 
Considering the new situational change of domestic and overseas rice and wheat mar kets, China has 
reduced the minimum purchase price of rice for three  consecutive years. Specifically, the purchase 
price per 50 kg of early indica rice (ditto) was decreased CNY 2 year on year in 2016; in 2017, those 
of early indica rice, mid -late indica r ice and japonica rice were decreased CNY 3, 2 and 5 respectively 
year on year; in 2018, they were decreased CNY 10, 10 and 20 respectively year on year. The 
minimum purchase price per 50 kg of wheat in 2018 was reduced CNY 3 year on year. In the future, 
China will, by comprehensively considering the grain production cost, market supply and demand, 
prices in the domestic and overseas markets, industry development, etc., continually adjust the 
minimum purchase prices of rice and wheat.  
4.1.3 Policy instrumen ts, 4.1.3.2 Internal measures , 4.1.3.2.1 Support measures , 
page  118, paragraph  4.23 
In its report, the Secretariat mentioned that "19 'special transfer payment programmes ' were 
combined into 10 programmes" and that "no information was made available regarding how the 
subsidies schemes notified to WTO would be converted and regrouped into these new programmes. " 
The Secretariat also mentions that "the aims of the reform are t o regroup programmes under large 
umbrella programmes, to disperse funds once rather than by instalments, and to delegate execution 
to local governments through the establishment of "tasks lists", allowing local governments to adapt 
policies to local condit ions, while improving budgeting performance management mechanisms, and 
to change the modalities of certain policies so as to switch them from a WTO point of view from the 
amber box to the green one. " 
Question  
121.  Could China explain how the subsidy schemes not ified to WTO would be converted and 
regrou ped into the ten new programmes?  
Reply  
In recent years, the central government finance has continuously promoted the integration of the 
source of special transfer payment budgeting. We will explore from 2017 the im plementation of the 
Major Special Projects + Task List management method, to further increase the source integration 
of agriculture -related funds, and to reduce the number of special transfer payments related to 
agriculture.  
Question  
122.  Could China explain what policies and type of modalities are planned to be modified to switch 
them from a WTO point of view from the amber box to the green one?  
Reply  
The reform aims at streamlining and combining fiscal expenditures on agriculture at the stage of 
making budget plan, so as to enhance the efficiency of subsidies for agriculture. The reorganization 
of the special program mes is a complex process. A n example can be given to help Members to 
understand this reform. Among the original 19 special program mes, comprehensive subsidies for 
agricultural inputs, subsidy for promoting superior strains and seed and direct subsidy to farmers (a 
sub-program me suppo rted by the  fund for  reservation of grain and oil -seeds) are combined into the 
subsidy for the preservation of farmland fertility, a sub -program me under the special program me of 
Fund for the Development of Agricultural Production. In this case, the two pro grammes of amber 
box (comprehensive subsidies for agricultural inputs, subsidy for promoting superior strains and 
seed) are changed into green box subsidy, since the subsidy for the preservation of farmland fertility 
is decoupled a direct payment only base d on the area of contract farmland of the eligible farmer. 
For other cases, the adjustment in the budgetary management system does not change the manners 
in which subsidy program mes contained in each of the "large special program mes" are implemented, 
i.e., the program mes that used to be categorized as amber box  support will remain to be the amber 
box support, while the green box  supports will remain green.  WT/TPR/M/3 75/Add.1  
 
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  Question  
123.  Could China explain the concept of "tasks lists "?  
Reply  
Tasks lists are the sets of policy o bjectives  for each of the large special program mes. While the 
transfers are made, the tasks lists will be assigned to the local governments at the same time. The 
local governments can use the transfer to achieve one or a number of the tasks contained in th e list, 
but can't use the transfer for other purposes.  
4.1.3.2.2 Price controls and market price support systems , page 124, paragraph  4.28,  
In the Secretariat report, it is mentioned that "Grain reserves of maize, rice, soya beans and wheat 
maintained by the central and local authorities are used to regulate the supply and demand of grains, 
stabilize the grain market, and cope with major natural disasters or other emergencies. " 
Question  
124.  How does China decide what products remain on the temporary stockpilin g scheme and what 
products are foreseen to be removed next and when?  
Reply  
According to the understanding of China, this question raised by Canada relates to the temporary 
purchase and storage policies. The Chinese government implemented the temporary pur chase and 
storage policies for maize, soybean and sugar. However, such policies have been stopped, and only 
the minimum purchase price policies on wheat and rice continue.  
Question  
125.  How are the volume(s) for the products under the stockpiling program me determined?  
Reply  
The scale of grain reserves is determined based on the overall consideration of the grain production, 
consumption, population growth, residents'  consumption habits, and the ease of obtaining grain 
from the international market within a s hort time, etc.  
Question   
126.  How are the products under the stockpiling program disposed on the domestic market? By 
whom?  
Reply  
The rotation, purchase and sales of grain reserves are generally conducted by storage enterprises 
according to the market prices.  
4.2 Mining and energy,  4.2.2.1 Overview including environmental po licy, page 134, 
paragraph 4.62  
In December 2017, the NDRC issued the Carbon Emission Trading Market Construction Scheme 
(Power Generation Industry). This emission trading scheme defines the guiding principles for the 
construction of a unified carbon market in China in order to effective ly control and gradually reduce 
carbon/greenhouse gas emissions in China, and to promote green and low -carbon development. The 
guiding principles foresee that the Scheme shall be market -oriented, government -led, and based on 
a step -by-step approach, unifie d standards, extensive participation, equality and transparency. It 
mandates the launch of a national carbon emission trading system for the power generation industry, 
and the construction of a carbon market in three steps.  WT/TPR/M/3 75/Add.1  
 
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  Question  
127.  Is there an English ve rsion to China's  Carbon Emission Trading Market Construction Scheme 
(Power Generation Industry)? If so, would you please provide the document in English?  
Reply  
In December 2017  the competent authorities of China for climate change issued China's  Carbon 
Emission Trading Market Construction Scheme  (Power Generation Industry). At present, the Scheme 
does not have an English version.  
Question  
128.  Could China share with other countries lessons learned through the implementation of the 
Carbon Emission Trading?  
Reply 
China would like to carry out exchanges and cooperation with other countries in Carbon Emission 
Trading and share the experience . 
4.3 Manufacturing , 4.3.1 Recent d evelopments , page 140, paragraph 4.85  
Referencing the China Manufacturing Plan 2025, the plan emphasizes "indigenous innovations " and 
"self-sufficiency, " with one aim being by 2020, that 40% of core basic components and key basic 
materials originate from China a move towards self -sufficiency a s stated in the plan with the 
objective being to increase this to 70%.  
Question  
129.  Can China elaborate on how the policy measures of the Manufacturing Plan will be applied 
equally to both foreign and local enterprises (including funding, investment, and gover nment 
procurement programme s) to ensure an equal competitive opera ting business environment?  
Reply  
The China Manufacturing Plan 2025  treats domestic and foreign enterprises equally without 
discrimination. The China Manufacturing Plan 2025  and its relevant policies and measures are 
applicable to all enterprises within China. The Notice of the State Council on Several Measures for 
Expanding the Opening Up to the World and Vigorously Utilizing Foreign Investment  (GF [2017] 
No. 5) mentions tha t the China Manufacturing Plan 2025  strategic policies and measures are equally 
applicable to foreign -funded and Chinese -funded enterprises.  
At the moment, quite a few foreign -invested enterprises have participated  in related projects of 
Made in China Man ufacturing 2025. For example, in terms of  establishin g manufacturing innovation 
centre, National Power Battery Innovation Center collaborated with the University  of Western Ontario 
of Canada in establishing a joint laboratory. The Additive Manufacturing In novation Alliance of China 
has incorporated  three  overseas membership enterprises. As for intelligent manufacturing, 
intelligent workshop pilot demonstration  of ship manufacturing of NACKS has been listed  as 
Intelligent Manufacturing  Pilot Demonstration  Project. Regarding quality brand development, ABB 
(Xiamen) Switchgear Co. , Ltd., Shanghai General Motors Wuling Automobile Co.  Ltd. (SGMW) , 
Zhuhai Rossini Watch Co. , Ltd. and  other foreign -invested enterprised  were awarded the honour  of 
Quality Benchmark.  WT/TPR/M/3 75/Add.1  
 
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  Question  
130.  Can China elaborate on the definition of indigenous innovations and material originating from 
China as it relates to intellectual property rights?   
Reply  
China highly values innovation. China's  investment in R&D accounted for 2.1% of its GDP in 2017 
and China has become the world's  second largest country in terms of innovation investment. 
According to the data released by the World Intellectual Property Organization (WIPO), China ranked 
the 2nd in the number of international patent applications filed under the Patent Cooperation Treaty 
(PCT) in 2017.  
The Chinese government also values the intellectual property (IP) protection, for example, it has 
conducted a special campaign across the country t o focus on cracking down illegal and criminal acts 
that infringe upon the IP of foreign -funded enterprises; accelerated the amendment of the Patent 
Law, and actively introduced the system of punitive damages, to increase the costs for violations of 
laws. China's  IP environment is being constantly improved. According to China 's Intellectual Property 
Development Status Evaluation Report 2017  released by the Intellectual Property Development & 
Research Center of the State Intellectual Property Office (SIPO) in  June 2018, the ranking of China's  
IP development status rose from 19th in 2012 to 10th in 2016, among the 40 countries with large 
input of scientific and technological resources and output of IP. The 2018 International IP Index  
released by the US Chamber' s Global Intellectual Property Center (GIPC) in February 2018 holds 
that China's  reforms in the IP field have increased the protection efforts and law enforcement effects. 
According to statistics, the IP royalties paid by China externally reached US D 28.6 billion in 2017, 
with the deficit of over US D 20 billion. The above fact shows that China has been actively paying the 
IP royalties according to the international trade rules, and firmly upholding the international IP rules.  
China has newly set up the SMR A and reorganized the SIPO in this round of institutional reform, for 
the purpose of cracking down on the IP infringement acts. China's  demand for IP protection will 
become more urgent, as Chinese enterprises are increasing the innovation activities. Presi dent Xi 
Jinping has pointed out that strengthening IP protection is the centrepiece  of the system for 
improving IP protection, and will provide the biggest boost to the competitiveness of the Chinese 
economy; stronger IP protection is the requirement of foreign enterprises, and even more so of 
Chinese enterprises. We will further increas e the efforts in IP protection, create better business 
environment and innovation environment, and further open up to the outside world, in the spirit of 
the instructions given by President Xi Jinping.  
4.4 Services , 4.4.2 Financial services , 4.4.2.2 Regul atory development s for banking 
services , page 157, paragraph  4.155  
Question  
131.  Could you please update on the status of the commitment to remove limitations on foreign 
shareholding of a Chinese bank?  
Reply  
China has formulated the Decision of the China Banking and Insurance Regulatory Commission to 
Repeal and Amend Some Rules (Draft for Comment) (Decision) for the purposes of promoting the 
implementation of the announced measures for expanding the opening up of the banking sector to  
the world ASAP. The Decision  proposes to repeal the Measures for the Administration of the 
Investment and Shareholding in Chinese -funded Financial Institutions by Foreign Financial 
Institutions , and delete the provision that the proportion of the shares o f a single overseas financial 
institution and its affiliates as the promoter or strategic investor of a single Chinese -funded 
commercial bank or rural commercial bank or strategic investor of a single financial asset 
management company shall not be more th an 20%, and the proportion of the total shares of several 
overseas financial institutions and its affiliates investing in the above institutions shall not be more 
than 25% in relevant provisions of the Implementation Measures of the China Banking Regulator y 
Commission for the Administrative Licensing Items concerning Chinese -Funded Commercial Banks , 
Implementation Measures of the China Banking Regulatory Commission for the Administrative WT/TPR/M/3 75/Add.1  
 
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  Licensing Items concerning Small and Medium -Sized Rural Financial Inst itutions  and Implementation 
Measures of the China Banking Regulatory Commission for the Administrative Licensing Matters 
Concerning Non -bank Financial Institutions , so as to implement the opening -up measure of lifting 
restriction on the proportion of share s of foreign -funded institutions in Chinese -funded banks and 
financial asset management companies, and implementing the same rule for the proportion of equity 
investment for Chinese -funded and foreign -funded institutions. The Decision  is now soliciting pub lic 
opinions, which will end on 8 July. The Chinese government will amend and improve and officially 
release the Decision  after the end of the solicitation.  
4.4.2.6 Regulatory development s for pension funds , page 159, paragraph 4.169  
Question  
132.  Could you please elaborate on the requirements China imposes to become an "enterprise 
annuity fund management institution "?  
Reply  
China applies strict market access to the qualification for management over trusteeship, trust, 
account, and investment of en terprise annuity management institutions. The main legal basis is the 
Interim Measures on Qualification Recognition of Fund Management Institution of Enterprise Annuity 
(Decree No. 24 of the Ministry of Human Resources and Social Security, issued on 
31 December  2004 and amended in 2015) . Based  on the market development and annuity  growth, 
etc., we regulated the number of management institutions and the total number of management 
qualification needed in the annuity  market. At present, enterprise annuity fund  management 
institution qualification access  is that, after the institutions conforming  the application conditions 
provided in the Decree No.  24 submit the application and our Ministry organize experts for 
centralized review and the number will be granted in the principle of best of the best and related 
provisions to determine the qualified institutions.  
133.  Could you please give more information on the number and extent of foreign shareholding for 
institutions holding this qualification?  
Reply  
According to th e existing policies, any financial  institutions, and registered  in the territory of China 
and approved by financial  regulatory authorities, including commercial banks, security companies, 
security investment fund management companies, insurance institutions, etc.  may apply for the 
qualification of managing enterprise annuity  fund according to the provisions identified in the 
qualification. We do not impose any limitation on the application of financial  institutions with foreign -
invested shares for annuity  fund management. At the moment, there are 35 management 
institutions and 63 qualifications in China's  enterprise annuity fund market, the list of which can be 
inquired  in public on the website of our Ministry and some of which have foreign -invested shares. 
As our Ministry does not differentiate the treatment on annuity fund management institutions with 
or without foreig n-invested shares, we cannot keep track of the detailed share contribution of each 
institution.  
4.4.3  Legal services , page 160, paragraph 4.176  
Question  
134.  It is noted that in 2017, there were 244 foreign representative offices employing 594 foreign 
lawyers in China. Could China provide information on the process to obtain a temporary work permit 
as a foreign lawyer, including whether an invitation letter is necessary?  
Reply  
Foreign lawyers  can apply for work permit in the embassies or consulates of the country where they 
intend to enter with practising  certificates, without the need for invitation letters.  WT/TPR/M/3 75/Add.1  
 
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  Question  
135.  Could China provide information on the timeline for a foreign lawyer to obtain a licen ce?  
Reply  
When a foreign lawyer firm intends to apply for establishing a branch or stationing representative in 
China, the firm should file application to judiciary administrative authorities of the people 's 
governments of the provinces, autonomous regions and municipalities where the firm intends to 
station its branch or representative and the judiciary administrative departments will complete the 
review within three  months after the receipt of the applicat ion and submit the review comments and 
the application to the judiciary administrative departments of State Council for approval.  The 
judiciary administrative departments of State Council will make decisions within six months and 
issue the practicing  licence to licensed branch and practicing  certificate to the representative.  
Question  
It is noted that China has allowed foreign lawyers to be hired as foreign legal consultants by Chinese 
law firms in Beijing, Shanghai and Guangdong via a measure in a pilot st age. It is also noted that at 
present, no foreign lawyer has served as legal consultant for Chinese law firms.  
136.  Could China provide additional information on this measure, including in terms of objective, 
scope, timeline and results?  
Reply  
If a foreign lawyer intends to work in China, he or she should first apply for practicing  certificate 
from judiciary authorities and with the practicing  certificate, then he or she has to apply for work 
permit from authorities of human resource and social security. He or she can enter China for working 
only when the application is approved . The  above process does not need a letter  of invitation. In 
addition , according to related provisions, related processing procedures for foreigners  entry for 
short-term j obs (within 90 days) are not applicable to foreign lawyers. To further open the legal 
service and strengthen the exchanges and cooperation between Chinese and foreign lawyers, we 
allow Chinese law firms in Beijing, Shanghai, and Guangdong to hire foreign l awyers as as  legal 
consultant for Chinese law firms. At present, Beijing, Shanghai and Guangdong has introduced 
detailed implementation measures and there have been foreign lawyers filing application  in Beijing  
Page 161, paragraph 4.181  
It is noted that Ch ina has taken two liberalization measures in January 2014 in the China (Shanghai) 
Pilot Free Trade Zone.  
Question  
137.  Could China provide additional information on these liberalization measures, including in terms 
of timeline and results?  
Reply  
China allows foreign lawyer  firms with branches  in Shanghai Free Trade Zone and Chinese lawyer  
firms to have lawyers stationed in each other as legal representative for joint operation in a 
contractual way . At present, there are five foreign lawyer firms t hat have  achieved joint operation 
with Chinese counterparts in Shanghai Free Trade Zone, generating good results.  
4.4.4  Accounting, auditing and bookkeeping services, page 162, paragraph 4.189  
It is noted that foreigners are entitled to receive national treatment in terms of issuance of licences 
after they have passed the national CPA exam.  WT/TPR/M/3 75/Add.1  
 
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  Question   
138.  Does the relevant body apply any nationality -based criteria when determining whether a 
candidate may take the exam?  
Reply  
We do not apply the nationality -based standard to the signing up condition for the National CPA 
exam.  
Article 44 of Law of the PRC on Certified Public Accountants stipulates: foreigners' application for the 
participation in and registration of China's  CPA exam will be processed  in the principle of mutual 
benefit.  
Article 16 of Measures on National Certified Public Accountant Examination provides that, provisions 
on the participation of residents from : Hong Kong, China; Macao, China; Chinese Taipei;  and 
foreigners in the  national CPA exam are otherwise specified by the Ministry of Finance . 
Article 3 of Measures on the Participation of Residents from : Hong Kong, China;  Macao , China;  
Chinese Taipei;  and Foreigners in the National Certified Public Accountant Examination spe cify that, 
residents in : Hong Kong, China; Macao, China;  Chinese Taipei; and foreigners with full capacity for 
civil conducts can apply for participation in national CPA examinations on the following conditions:  
one applicants with the educational level of junior college or above recognized by competent 
education authorities; two applicants have obtained certified accountant qualifications  (or other 
corresponding qualifications) recognized by laws of : Hong Kong, Chin a; Macao, China; 
Chinese  Taipei; and foreign countries.  
As at the end of 2017 since China 's CPA examinations were open up, three  examination  sites have 
been set up in : Hong Kong, China;  Macao, China; Brussels of Belgium and examinees  totalling  an 
accumulative number of 32,000 from : foreign countries ; Hong Kong, China;  Macao, China;  and 
Chinese Taipei  have signed up for examinations , of which 1,036 examinees  took part in the exam 
in 2017.  
4.4.6  Engineering and integrated engineering serv ices, page 165, paragraph 4.209  
It is noted that "China has not concluded mutual recognition agreements on qualifications in 
engineering design with other countries or regions, nor has it autonomously recognized engineering 
design qualifications obtained in other countries or regions ". 
Question  
139.  Has China made other contributions to promote the recognition of foreign qualifications in 
engineering design, in order to facilitate trade in engineering services?  
Reply  
According to the Regulations of the People's Republi c of China on Registered Architects , foreigners'  
application for participation in China's  national architect examinations  and registration and practicing  
the business of registered architects is handled in the principle of equal footing. At present, Canada  
has not yet carried out negotiation with China on the registered architect examination , registration, 
and business practicing . 
According to China's  commitments  on accession to WTO, foreign Service providers can provide 
scheme design services by cross -border delivery and China strictly abide by this commitment . At 
the moment, there have been many foreign design consulting institutions providing design service 
in China according to the above rule.  WT/TPR/M/3 75/Add.1  
 
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  5 APPENDIX TABLES  
Page 182, Table A2.3 Industries in which FDI was/is restric ted, 2015 and/or 2017   
Based on Table A2.3, it is noted that industry restrictions for FDI in education have  changed between 
2015 and 2017.  
Question  
140.  Have the foreign investment requirements for 'ordinary senior high schools ' and 'pre-school 
educational institutions ' changed in the 2017 list of industries in which FDI is restricted?  
Reply  
No. 
Question  
141.  What is the impact of the foreign investment requirement changing, for these educational 
institutions, from 'joint venture operations ' to 'cooperation led by the Chinese side '?  
Reply   
In the Catalogue of Encouraged Foreign Investment Industries  in 2011 to 2014, foreign investment 
in higher education institutions was required to take the form of only limited to joint venture or 
cooperative, while in 2015, the foreign investment requirement was changed from joint venture 
operations to cooperation led by the China, to emphasize that China has the leadership in 
management of educational institutions, and the foreign side still has the autonomy in terms of 
education, teaching and scientific research.  
  WT/TPR/M/3 75/Add.1  
 
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  CANADA – FOLLOW -UP 
Report by China  - WT/TPR/G/375  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.3.3  Further streamlining administration and delegating powers and improving 
government services , page 19, paragraph 5.13  
It is noted that the requirements for professional qualification licensing and accreditation were 
significantly reduced in China.  
Question  
1. Could China elaborate on how those requirements were reduced, including in terms of legal 
services; i.e. could China explain what elements were previously required and have now been 
removed or facilitated?  
Reply  
To reduce professional qualifications of licensing and certification is an important element of 
administrative reform in China. Ministry of Human Resources and Social Security has organize d the 
work reducing/cancelling professional qualifications licensing and certification. In 2014, Ministry of 
Human Resources and Social Security issued Notice on Issues Related to Reducing Professional 
Qualifications of Licensing and Certification (MHRSS [ 2014] 53), defining the four guidelines of 
reducing professional qualification of licensing and certification: I. Cancel the admission -category 
professional qualifications set by State Council departments without laws, rules or State Councils 
decisions as the basis. For the professions really requiring qualifications due to industrial 
management and involving large manpower, the qualifications may be set as professional 
qualifications in the category of level evaluation after they are reported to and approv ed by Ministry 
of Human Resources and Social Security under State Council; II. The admission -category 
qualifications set and executed by State Councils departments based on certain laws/rules and not 
close to state security, public security, civilian perso nal/assets security or inappropriate to be 
managed in the manner of professional qualification will be cancelled after relevant laws/rules are 
amended in accordance with procedures; III. The qualifications in the category of level evaluation 
set by State C ouncils departments and nationwide industrial associations/academies. Those 
necessary to be reserved will be incorporated into national uniform management after they are 
approved by the Ministry of Human Resources and Social Security under State Council; I V. Cancel 
the professional qualifications set by local people 's governments and relevant departments. Those 
necessary to be reserved will act as the pilot projects of professional qualifications and be 
incorporated into the national uniform management of p rofessional qualifications gradually after 
they are approved by Ministry of Human Resources and Social Security under State Council.  
Since 2014, there have been 434 professional qualifications cancelled. In addition, as required by 
State Council, all regio ns have cancelled all local professional qualifications set by them. Personal 
qualification certifications for keeping, inspecting, and treating state grain reserve have been 
cancelled. In 2017, Ministry of Human Resources and Social Security under State C ouncil issued 
Notice on Promulgating Catalogue of National Professional Qualifications (MHRSS [2017] 68), 
carrying out inventory management on professional qualifications and accepting the monitor from 
the society. There are 140 national professional quali fications listed. The qualifications outside should 
not be licen ced and certificated as professional qualifications and those inside should not connect  to 
employment/entrepreneurship except admission -category ones. The admission -category 
professional quali fications promulgated cancelled such as insurance broker qualification, tour leader 
qualification and tenderer qualification have never been required for relevant jobs.  
Follow -up question  
With respect to legal services specifically, how were requirements r emoved or facilitated?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Currently, no requirement for qualification licen ce and certification of legal services needs to be 
removed or facilitated.  
Report by the Secretariat - WT/TPR/ S/375 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment regime,  2.4.1 Regulatory framework and market access , page 40, 
paragraph 2.37  
Canada notes that according to the Secretariat Report, the Special Administrative Measures for 
Foreign Investment Access to Pilot Free Trade Zones (PFTZs Negative List) has significant 
advantages over the 2017 Investment Catalogue. The report notes that th e PFTZs Negative List has 
a higher level of openness than the Investment Catalogue in transportation.  
17. Could China clarify the nature of the advantages in the transportation sector provided by the 
PFTZs negative list over the negative list found in the  2017 Investment catalogue?  
Reply  
National Development and Reform Commission and Ministry of Commerce issued 2018 national 
negative list for foreign investment of pilot free trade zone at the end of June 2018. Negative list for 
foreign investment of pilot free trade zone specifies the following more open pilot measures further 
based on national open measures: Increase foreign investment equity ratio for new variety breeding 
of wheat and maize and seed production from no more than 49% to no more than 66%; ca ncel oil 
and gas exploration, development restrictions on joint venture and cooperation; cancel the 
prohibitions for foreign -funded smelting and processing of radioactive mineral and production of 
nuclear fuel; cancel the restriction that performance agenc y should be held by Chinese side; change 
prohibiting investment in establishment of artistic -cultural performance group into holding by 
Chinese side; popularize value -added telecommunication open measure piloted in the original 
28.8 km2 area of Shanghai Fr ee Trade Zone into all pilot free trade zones, including cancelling equity 
ratio restrictions of foreign investment in storage and forwarding business, call centre  business and 
domestic multi -party communication service business and ensuring equity ratio o f foreign 
investment in domestic internet VPN business does not exceed 50%.  
Follow -up question  
Other than the cancellation of the equity ratio restrictions of foreign investment in storage and 
forwarding business, can China please clarify other advantages in the transportation sector, if any, 
that the Special Administrative Measures for Foreign Investment Access to Pilot Free Trade Zones 
(PFTZs Negative List) provide over the 2017 Investment Catalogue?  
Reply  
Compared with the 2017 Investment Catalogue, the 2018 negative list abolished some restrictions 
on foreign investment in the transportation industry including railway passenger transport company, 
international maritime transportation and international shipping agency.  
2.4.2  Examination and approval proce dures , page 43, paragraph  2.50 
Canada notes that under China's  Free Trade Zone pilot rules, investments by foreign companies will 
be strictly reviewed if they involve a controlling stake of businesses related to various sectors, 
including transportation.  
18. Could China clarify whether the criteria used in the review of these investments is publicly  
available?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In April 2015, General Office of State Council Promulgated  Trial Measures on National Security 
Review of Foreign Investment in the Pilot Free Trade Zones to try national security review of foreign 
investment applicable to negative list management pattern with the purpose to guide orderly 
development of foreign investment and maintain national security. Measures provide scope of 
security review, work mechanism & procedure and review elements, etc.  
Follow -up question  
Can China please clarify whether the criteria used in the review of these investments, whether found 
in the Trial Measures on National Security Review of Foreign Investment in the Pilo t Free Trade 
Zones or elsewhere, are publicly  available? If so, please provide a link.  
Reply  
Circular of the General Office of the State Council on the issuance of the Trial Measures on National 
Security Review of Foreign Investment in the Pilot Free Trade Zones (State Council General Office, 
2015, No. 24) is publicly available. It includes regula tions on review criteria. The link is 
http://www.gov.cn/zhengce/content/2015 -04/20/content_9629.htm  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production an d Trade; 3.3.5 State trading, state -owned 
enterprises, and privatization , page 87, paragraph 3.180  
It is noted that companies are predominantly state -owned in sectors such as education, and that 
SOEs are divided into commercial entities and public welfare entities.  
68. Which governmental bodies in China regulate or control which educational institution s in China 
managers in state -owned -enterprises may attend to receive training?  
Reply  
As required by the training contents and course setting, the educational institution that the 
leadership of central enterprises choose include not only state -owned but al so private, foreign -
funded and overseas educational institutions.   
Follow -up question  
What is the difference in terms of restrictions placed on Chinese managers seeking training in China 
as well as abroad?  
Reply  
There is no difference in terms of restrictions on Chinese managers seeking training in China as well 
as abroad. The choice of training institutions for SOE managers is determined solely by training 
content and curriculum.  
3.3.6  Government procurement , 3.3.6.2 Legal and institutional framework , page 91, 
paragraph 3.195  
Canada notes the inclusion of China's  use of public -private partnerships (PPP) in government 
procurement projects and Administrative Measures on Government Procurement of Public -Private 
Partnership Projects as new items in the 2018 report. Canada would appreciate more information 
about PPP projects and requirements in the Administrative Measures.   
77. Does China have statistics concerning the value of PPP projects?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please consult the Finance Department of the Minis try of Finance for the statistics of PPP projects.  
Follow -up question  
Could China please indicate the specific link of website address where this information is available?  
Reply  
Please refer to the official website of Ministry of Finance of China.  
Page 91, paragraph 3.195  
The report outlines the amount of overall government procurement by local entities and central 
government excluding procurement by SOEs, which according to the Government Procurement Law, 
does not fall under the definition of gover nment procurement.  
81. Could China please provide similar figures on procurement by SOEs?  
Reply  
None.  
Follow -up question  
Does none mean China is still working on preparing an answer?  
Reply  
China has not collect ed the figures mentioned.  
3.3.6.3 Procurement  methods and procedures , page 91, paragraph 3.197  
The report describes the applicable laws and regulations governing centralized and decentralized 
procurements, including reference to designated and procuring agencies and the national 
registration system. The report indicates that there is no uniform catalogue or threshold across the 
country for centralized procurement.  
83. How are designated agencies defined?  
Reply  
According to Article 12 of the Implementation Regulations of the Government Procurement Law , a 
centralized procurement agency refers to a non -profit legal person established by the people's 
government at or above the municipal level in accordance with the law.  
Follow -up question  
Are designated agencies the same as centralized procurement agencies?  
Reply  
Yes. 
84. How are quality goods and services, at a lower -than-average -for-the-market price determined 
and defined in the Government Procurement Law?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Quality goods and services, at a lower -than-average -for-the-market price is not defined in The 
Government Procurement Law.  
Follow -up question  
Absent a definition in The Government Procurement Law, how does China define quality goods and 
services, at a lower -than- average -for-the-market price?  
Reply  
In practice, this means that goods a nd services chosen in procurement have lower prices compared 
with the average prices of products of the same type and model in comprehensive physical market 
and e -commerce market.  
3.3.6.4 Other policy considerations in government procurement , page 95, 
paragraph  3.210  
92. Could China please provide some examples of how it has used information technology to 
improve efficiency in government procurement?   
Reply  
Some places, such as Zhejiang and Guangdong, have improved the efficiency of government 
procurement by introducing e -commerce procurement models.  
Follow -up question  
Could China please describe how these e -commerce procurement models operate?  
Reply  
The e -commerce procurement system has functions such as product display, order placement, 
payment and logist ics information. Through profound integration of internet and government 
procurement, the e -commerce procurement model demonstrates strengths since it allows 
comparison of similar products, stops monopoly in supply, helps price monitor, updates 
simultaneou sly and makes government procurement more open, convenient and cost -effective. Thus, 
government procurement can be more transparent and efficient because interference is reduced and 
loopholes in procurement procedures are fixed. It is also more convenient for authorities and the 
public to supervise procurement, thus boosting trust in the government. For example, Guangdong 
has initiated e -commerce projects with jd.com and suning.com. Based on cloud computing platform 
and big data analysis, they gain informat ion about commodities, prices, orders and logistics through 
underlying data interface with e -commerce platforms. They have realized single sign on for multiple 
platforms, simultaneous placement of orders, real -time price update, complete recording of the 
procedure, real -time price monitor and eco -friendly procurement. They adopt a credit rating system 
that updates with that of the general market so that employees responsible for procurement can 
find truly reliable commodities with good quality and cheap pri ce. They can also enjoy considerate 
services and discount for VIP customers.  
Page 95, paragraph  3.211  
It is noted that Article 9 of the Government Procurement Law provides that government procurement 
shall be carried out to facilitate the realization of the economic and social development policy goals 
of the State, including environmental protection, assistance to underdeveloped or ethnic minority 
regions, and promoting the development of SMEs.  
93. Does China collect and publish statistical data linking g overnment procurement to China's  
policy goals under Article 9?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Relevant data was already included in the annual government procurement statistics. The amount 
of the contract awarded to the SMEs was also disclosed in the final accounts.  
Follow -up que stion  
Could China please include website addresses where this information is available?  
Reply  
Relevant statistics are released on the official website of the Ministry of Finance.  
Page 95, paragraph  3.213  
It is noted that relevant authorities issue and update the separate lists of energy -saving products 
and environment -friendly products regularly.  
96. Could China please indicate where the lists of energy -saving products and environment -
friendly products ca n be found?  
Reply  
In terms of energy saving and environmentally friendly products, China releases such 
recommendatory lists as Energy Star Product Catalogue, Recommendatory Catalogue of Equipment 
with National Industry Energy Saving Technology and Green De sign Product List on a regular basis.  
Follow -up question  
Could China please include website addresses where these recommendatory lists are available?  
Reply  
Energy Star Product Catalogue, Recomme ndatory Catalogue of Equipment with National Industry 
Energy Saving Technology and Green Design Product List regularly updated by the Chinese 
government are available on the official website of the Ministry of Industry and Information 
Technology ( www.miit.gov.cn ), the Ministry of Finance and Chinese government procurement 
website.  
3.3.6.5 Suppliers complaint mechanism , page 96, paragraph  3.217  
The report mentions that in 2015, the finance authorities at various levels all over China accepted 
2,629  government procurement complain ts raised by suppliers. During China's  2016 TPR, the 
Secretariat's  report noted that in 2014, the finance authorities at various levels all over China 
accepted 1,337 government procurement complaints raised by suppliers, and 1,079 complaints 
reported in 20 13.  
98. Are there statistics on the number of complaints by supplier that have not been accepted?  
Reply  
None.  
Follow -up question  
Does none mean China is still working on preparing an answer?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Chinese financial authorities do not collect the statistics mentioned. Complaints not accepted are 
those that do not comply with regulations. If China starts to collect the statistics, we will release 
them in time.  
4 TRADE POLICIES BY SECTOR  
4.4 Services , 4.4.3 Legal services , page 160, paragraph 4.176  
It is noted that in 2017, there were 244 foreign representative offices employing 594 foreign lawyers 
in China.  
134. Could China provide information on the process to obtain a temporary work permit as a for eign 
lawyer, including whether an invitation letter is necessary?  
Reply  
Foreign lawyers can apply for work permit in the embassies or consulates of the country where they 
intend to enter with practicing certificates, without the need for invitation letters.   
Follow -up question  
Could China provide a web address in English describing the process to obtain a temporary work 
permit as a foreign lawyer?  
Reply  
No. 
Page 161, paragraph 4.181  
It is noted that China has taken two liberalization measures in January 2014 in the China (Shanghai) 
Pilot Free Trade Zone.  
137. Could China provide additional information on these liberalization measures, including in terms 
of timeline and results?  
Reply 
China allows foreign lawyer firms with branches in Shanghai Free Trade Zone and Chinese lawyer 
firms to have lawyers stationed in each other as legal representative for joint operation in a 
contractual way. At present, there are five foreign lawyer firms  that have achieved joint operation 
with Chinese counterparts in Shanghai Free Trade Zone, generating good results.   
Follow -up question  
Could China provide additional information in terms of whether it intends to expand the application 
of those liberalizat ion measures to a broader territory, and, in the affirmative, provide a timeline?  
Reply  
China has already expanded the two liberalization measures of Shanghai Free Trade Zone to Tianjin 
Free Trade Zone in May 2018.  
4.4.6  Engineering and integrated engineering services, page 165, paragraph 4.209  
It is noted that China has not concluded mutual recognition agreements on qualifications in 
engineering design with other countries or regions, nor has it autonomously  recognized engineering 
design qualifications obtained in other countries or regions. WT/TPR/M/3 75/Add.1  
 
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  139. Has China made other contributions to promote the recognition of foreign qualifications in 
engineering design, in order to facilitate trade in engineering services?   
Reply  
According to the Regulations of the People's Republic of China on Registered Architects, foreigner  
application for participation in China's  national architect examinations and registration and practicing 
the business of registered architects is handled in the principle of equal footing. At present, Canada 
has not yet carried out negotiation with China on the registered architect examination, registration, 
and business practicing.   
According to China's  commitments on accession to WTO, foreign Service providers can provide 
scheme design services by cross -border delivery and China strictly abide by this commitment. At 
the moment, there have been many foreign design consulting institutions providing design service 
in China according to the above rule.  WTO 
Follow -up question  
China notes that foreigner  applications are handled in the principle of equal footing. With respect to 
engineering specificall y, can China provide a link to qualification requirements for foreign 
professionals in engineering design services looking to practice engineering in China?  
Reply  
Qualification requirements for taking the registered architects test can be found in Regulations on 
Registered Architects (available on the Chinese government 's online database of laws and 
regulations: search.chinalaw.gov.cn).  
Please note that the questions below are not part of the follow -up questions. Canada did 
not receive responses fr om China in the first round of Canada submitted questions. 
Canada would be grateful if China can reply these questions.   
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments , 1.2.3 Other structural measures, page 23, 
paragraph  1.29 
It is noted that by 2020, central SOEs will have a clearer strategic position; the overall structure will 
become more rational and state -owned assets will be distributed more efficiently; development 
quality will improve; and a group of innovative and inte rnationally competitive enterprises will be 
established.  
5. Does China have similar goals, strategic positions and targets developed for the reform of 
SOEs at the sub -central level? If so, could this please be further elaborated?  
6. If there are no immedi ate plans in place, could China please elaborate on if and how it plans 
to review the structure of sub -central SOEs?  
Reply 5 -6 
In September 2015, China issued Guiding Opinions for Deepening SOE Reforms (hereinafter referred 
to as the Opinions), which states clearly that the main goal of SOE reforms is to establish a 
state-owned asset management system, modern enterprise system and market -based operation 
system that can better fit China's  fundamental economic institution and better serve the 
development  of socialist market economy. The deployment of state capital will be more plausible. 
China will cultivate many outstanding entrepreneurs of both talent and integrity who understand the 
art of running a company and boast great vitality. China will nurture many major SOEs that are 
innovative and competitive in the international market. State -owned economy will be more vigorous 
and have stronger control, influence and ability to resist risks. The reform goals mentioned in the 
Opinions are designed for state -owned enterprises including central and local SOEs. Local authorities 
will roll out measures to implement the Opinions according to the realities of local SOE reform.  WT/TPR/M/3 75/Add.1  
 
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  MONGOLIA  
Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISI ON AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1.1 Implementing more proactive import policies, page 4 , paragraph 3.3  
 
The Report by China notes that "3.3. since the last review, China has further simplified import 
administration procedu res and lowered import tariffs. " 
Question  
1. Could China provide detailed information in what extent it has further simplified impo rt 
administration procedures in connection with importation of goods, especially mineral commodities 
through its border -crossing poin ts (land border checkpoints)?  
Reply  
China will continue to actively implement the WTO Trade Facilitation Agreement. About the terms of 
the Agreement, China has only retained four Category B measures, with Category A measures 
accounting for 94.5%. China wil l strictly fulfil its commitment to complete the scheduled 
implementation of Category B measures within the three -year transition period. For example, in 
promoting the single window service, China has initially established the nine basic functions of the 
standard single window, including the declaration of goods, shipping bill and transportation means; 
established the seven standard systems for the single window, including unified data element, 
certification and unified office; and realized the coverage of standard single window service in all the 
ports across the country. At the beginning of 2018, the Chinese government further optimized 
functions of the administration organs for better synergy and higher efficiency, and assigned the 
responsibility of exit/ entry inspection and quarantine administration of the General Administration 
of Quality Supervision, Inspection and Quarantine to the General Administration of Customs.  
3.1.2 Continuously enhancing trade facilitation, p age 5, paragraph 3.4  
The Report by Ch ina notes that "3.4. on 22 February 2017, WTO Trade Facilitation Agreement came 
into force. China has been preparing for the implementation of the Agreement actively. As early as 
in March 2016, an Inter-Ministerial  Joint Committee on Trade Facilitation cha ired by a Vice Premier 
of the State Council was established to promote trade facilitation through enhanced and productive 
collaboration among relevant government agencies. By the end of 2017, all provinces, autonomous 
regions and municipalities directly un der the Central Government had set up provincial -level joint 
committees on trade facilitation to push ahead trade facilitation work in the respective localities. " 
Question  
2. Could China provide information on the list and composition of the provincial -level joint 
committees on trade facilitation?  
Reply  
China has been preparing for the implementation of the Trade Facilitation Agreement actively, and 
has set up the National Committee on Trade Facilitation in March 2016.  
With respect to the clau ses of the Trade Facilitation Agreement, China has only reserved 
four Category  B commitments, with Category A commitments accounting for 94.6%. China will 
strictly fulfil its commitments, and complete the implementation of Category B commitments within 
the three -year transition period. For example, in promoting the implementation of the single 
windows, the nine basic functions of the single windows standard version, such a s cargo declaration, 
manifest declaration and transportation declaration, have been initially established; the seven 
standard systems of the single windows standard version, such as unified data elements, unified 
certification and unified portal, have been  constructed; and the use of the single windows standard WT/TPR/M/3 75/Add.1  
 
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  version has covered all ports in China. At the beginning of 2018, the Chinese government further 
accelerated the optimization and synergy of the functions of management authorities, and 
incorporated the responsibility of entry and exit inspection and quarantine of the General 
Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) into the General 
Administration of Customs of China (GACC).  
Report by the Secretariat - WT/TPR/S/375  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly  Affecting Imports, 3.1.1 Customs procedures, valuation, and 
requirements , page 45 , paragraph 3.2  
The Report by the Secretariat notes that "3.2. China has continued to make efforts to reform and  
harmonize customs procedures across its 42 customs areas with a total of more than 200 individual 
offices. In June 2016, the National Customs Clearance Integration Reform was launched as a pilot 
phase; it was rolled out nationwide in July 2017. The Reform  covers the whole import declaration 
process and has as a main objective improving the efficiency of clearance procedures. The authorities 
indicate that nationwide clearance times were reduced to an average of 16.7 hours in 20 17, from 
over 22 hours in 2016 ." 
Question  
3. Could China provide detailed information on the clearance times in connection with importation 
of goods, especially mineral commodities through its border -crossing points (land border 
checkpoints) under the reform objective of improving effi ciency of clearance procedures?  
Reply 
The disclosure of information on the clearance times is one of the key measures to improve the 
transparency and predictability of customs clearance. As one of China's  Category B commitments 
under the Trade Facilitation Agreement, China is accelerating the related work in this field, and is 
expected to complete the implementation of the relevant commitments by 22 February 2020.  
Other questions  
Report of the Working Part y on the Accession of China, WT/ACC/CHN/49, page 13 , 
Authority of Sub -National Governments  
The Report of the Working party on the Accession of China notes that "70. The representative of 
China stated that sub -national governments had no autonomous authorit y over issues of trade policy 
to the extent that they were related to the WTO Agreement and the Draft Protocol. The 
representative of China confirmed that China would in a timely manner annul local regulations, 
government rules and other local measures tha t were inconsistent with China's obligations. The 
representative of China further confirmed that the central government would ensure that China's 
laws, regulations and other measures, including those of local governments at the subnational level, 
conformed  to China's obligations undertaken in the WTO Agreement and the Draft Protocol. The 
Working Party took note of these commitments. " 
Report of the Working Party on the Accession of China, WT/ACC/CHN/49, page 19 , Other 
Duties and Charges  
The Report of the Wor king party on the Accession of China notes that "96. The representative of 
China confirmed that China had agreed to bind at zero other duties and charges in its Schedule of 
Concessions and Commitments, pursuant to Article II:1(b) of the GATT 1994. The Work ing Party 
took note of this commitment. " WT/TPR/M/3 75/Add.1  
 
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  Report of the Working Party on the Accession of China, WT/ACC/CHN/49, pages 13 and  19 
Question  
4. Do Chinese local governments (sub -national governments) have authorities to impose 
administrative decisions regarding  importation fees and charges on goods, especially mineral 
commodities through its border -crossing points (land border checkpoints)? Could China provide 
more detailed information on the competence of the local governments to impose such fees and 
charges?  
Reply  
In recent years, in accordance with the State Councils decisions and policies to control and regulate 
charges related to enterprises and relieve the burden on enterprises, the Ministry of Finance, in 
conjunction with other departments, has issued a n umber of measures to cut the charges and reduce 
the burden. At present, there is no administrative charge for import and export.  
  WT/TPR/M/3 75/Add.1  
 
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  MONGOLIA – FOLLOW -UP 
Report by China  - WT/TPR/G/375  
Mongolia wishes to thank China for the replies to the questions. However,  further clarification is 
sought on the following:   
Question  
1. With regard t o the reply to question s 1 and 2: 
Please provide the structure, organization and the competences of the provincial -level committees 
on trade facilitation, especially of those provinces bordering with Mongolia, namely Xinjiang, Gansu, 
Inner Mongolia and Heilongjiang.  
Reply  
The WTO Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, and China has 
actively promoted the implementation of the TFA. As early as in March 2016, the Chinese 
government established an inter -ministerial joint conference system on trade facilitation under the 
State Council with a vice premier of the State Council acting as the convener. When the TFA entered 
into force, the Chinese gover nment set up the National Committee on Trade Facilitation  to coordinate 
the efforts of relevant government agencies to enhance trade facilitation. By 2017, China 's provinces 
(as well as autonomous regions and municipalities directly under the central gover nment) had all 
established a joint committee mechanism for trade facilitation in their respective jurisdictions.  
Question  
2. With regard to the reply to question 4:  
Do the local authorities have a competence to adopt and enforce rules and regulations, inc luding 
additional fees and charges affecting imports? In case of any discrepancy, which authority is in 
charge for resolving issues on additional fees and charges imposed by the local authorities?   
Reply  
According to the current provisions on the managemen t of incomes from administrative undertaking 
charges and the authority to set up government -managed funds: approved by finance departments 
above the provincial level jointly with price departments, policies on administrative undertaking 
charges may be form ulated by local authorities, but important ones shall be submitted to the State 
Council or the provincial people 's government for approval. Among them: newly established 
enterprise -related administrative undertaking charges must be based on the provisions of relevant 
laws or administrative regulations. Those without basis in laws or administrative regulations that are 
required to be set up according to international conventions or the principle of reciprocity must be 
reported to the State Council for approv al. In addition, local authorities do not have the authority to 
approve the setting up of government -managed funds.  
  WT/TPR/M/3 75/Add.1  
 
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  UNITED STATES  
Report by the Secretariat - WT/TPR/S/375  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments , page 17, paragraph  1.3 
Question  
The Chinese government maintains that credit activities in China are independent and driven by 
market conditions. However, as noted in paragraph 1.10 of the Secretariat's  report, for example, 
China 's State Council still sets a benchmark lending rate. Can China provide more details about the 
government's  efforts to continue interest rate liberalization and reduce distortions in the allocation 
of capital?  
Reply  
In recent years, China has accelerated market -based reform of interest rates and has achieved 
critical progress. Interest rate controls on loans were completely lifted in July 2013. On 
24 October  2015, the cap on the interest rates of commercial banks and rural cooperative financial 
institutions was removed. At present, all the financial institutions may, based on the market -based 
principle, set interest rates independently and rationally by taking into comprehensive considerations 
such as operating costs, capital costs and risk premiums, and the financial market plays a decisive 
role in asset allocation.  
Page 17, paragraphs 1.3 -1.4 
The Secretariat's  report states that effectively addressing sources of risk in the financial sector, such 
as excessive corporat e leverage, real estate bubbles and leveraged investment in asset markets 
would help keep growth on a sustainable path. The Secretariat's  report further states that China has 
introduced measures to reduce overcapacity, strengthen local government borrowing  frameworks, 
and address financial sector risks.  
Question  
a. What steps has the Chinese government taken to strengthen local government borrowing 
frameworks? What indications do you have that those steps have been effective in reducing financial 
sector risks?  
Reply  
The People 's Bank of China has implemented prudent and neutral monetary policy and structural 
credit policy. Moderate growth was maintained in monetary credit which, while supporting steady 
economic growth, created suitable monetary and financial environment for leve rage stabilization. 
Meanwhile, the People's Bank took effective measures to focus on optimizing the credit structure, 
and the demand for inefficient financing was significantly curbed. Since 2017, the rise of China's 
macro leverage rate has slowed down remarkably . Among them, the leverage ratio of the enterprise 
sector decreased slightly from the previous year, which was the first time since 2011. The leverage 
ratio of the government sector has decreased slightly from the previous year as well.  
The Several Opinions of the State Council on Strengthening the Administration of Local Government 
Debts issued in 2014 and the new Budget Law entered into implementation in 2015 clearly pointed 
out that China adopts limit management on the balance of local government debts, and that the 
scales of local government borrowings shall be submitted by the State Council to the National 
People's Congress or the Standing Committee of the National People's Congress for approval. After 
that, local governments at all levels accele rated the establishment of standardized debt financing 
mechanisms and achieved progressive success. By the end of 2017, the debt balance of all local 
governments across the whole country was RMB  16.47 trillion. From the perspective of purpose, 
there were R MB 10.33 trillion general debts and RMB 6.14 trillion special debts; from the perspective 
of the methods of borrowing, there were RMB 14.74 trillion government bonds and RMB 1.73 trillion WT/TPR/M/3 75/Add.1  
 
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  of debts in other forms. In 2017, RMB 4.36 trillion of local governm ent bonds were issued nationwide. 
Among them, there were RMB 1.59 trillion of new bonds and RMB 2.77 trillion of swap bonds; 
according to purposes, there were RMB 2.36 trillion of general bonds and RMB 2.0 trillion of special 
bonds. As the total stock of l ocal government debts was locked at the balance by the end of 2014, 
with the advancement of swap and the local governments dissolving of some of the stock debts, the 
size of the debts to be swapped has decreased. In 2017, the bonds issued by local governme nts to 
replace stock debts dropped by RMB 2.11 trillion from the previous year, but the new bonds issued 
within the limit increased by RMB 0.42 trillion from the previous year. By the end of 2017, the local 
governments across the country had issued a total  of RMB 10.9 trillion of swap bonds, and there are 
still RMB 1.73 trillion of stock debts that have not been swapped.  
From 2015 to  2017, the central government carried out large -scale debt swaps for local governments, 
and standardized and reviewed borrowin g acts. The leverage ratio of Chinese government 
departments fell for three consecutive years. According to the statistics of the Bank for International 
Settlements, by the end of 2017, the leverage ratio of our government sector was 47%, which was 
not onl y far below the average level of developed economies (100.9%), but also lower than the 
average of emerging economies (49%).  
Question  
b. Have the measures introduced to address excessive corporate leverage been effective? How 
is that effectiveness being measur ed? 
Reply  
Reducing the leverage ratios of enterprises is one of the key tasks of supply -side structural reform. 
According to the Opinions of the State Council on Proactively Yet Prudently Lowering Enterprise 
Leverage Ratios issued in 2016, relevant departm ents and market entities proactively yet prudently 
promote the work related to reducing enterprise leverage ratios and preventing and mitigating 
potential debt risks by adopting seven comprehensive measures including promoting merger and 
acquisition, impro ving the modern enterprise system and strengthening self -discipline, liquidizing 
stock assets, optimizing debt structures, engaging  in market -based debt -for-equity swaps with 
banks in an orderly manner, going bankruptcy according to law, and developing equ ity financing. 
Under the combined effect of various measures to reduce leverage, the leverage ratio of China's 
non-financial enterprise sector has shown a steady decline, and debt risks tend to decline. On the 
macro level, by the end of 2017, the leverage ratio of the non -financial enterprise sector was 160.3%, 
down 2.1% from the end of the previous quarter, and fell for the sixth consecutive quarters on a 
quarter -on-quarter basis. Microscopically, the implementation of market -based debt -for-equity swap 
agreements have helped to resolve the risk of capital chain rupture of target enterprises, reduce the 
financial burdens of enterprises, and boost the development confidence of enterprises. The 
introduction of diversified equity investment in the mixed ownersh ip reform of SOEs has not only 
reduced the asset -liability ratios, but also promoted the continuous improvement of corporate 
governance structures.  
Page 18, pa ragraph 1.6  
The Secretariat's  report describes the Belt and Road Initiative. It notes, among othe r things, that  
"strong governance of projects to assure that they are financially viable and that the recipient 
countries have sufficient institutional and macroeconomic capacity to manage them would be 
required to reap the benefits of this initiative. " It adds that "future growth could also be boosted by 
the 'Belt and Road ' (or 'One Belt and One Road ') Initiative (Box 1), which aims to foster multinational 
cooperation in trade, investment and finance, bringing much needed infrastructure and connectivity  
in the region. The authorities expect that the initiative could result in an increase in the trade and 
development level of the participating countries and achieve an open world economy. "  
Question  
a. There have been multiple reports that the Belt and Road I nitiative has increased sovereign 
debt risks for some of its project participants. What steps is China taking to ensure that Belt and 
Road-related projects uphold internationally accepted best practices in infrastructure development 
and financing so as not  to cripple countries with unsustainable debt problems?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China has no intention to increase the debt burden of any country. Most of the loans provided by 
China to countries along the Belt and Road are used for investment rather than consumption. Each 
loan has specific infrastructure or social livelihood projects behind it, which helps to improve local 
productivity and boost economic growth. China is taking steps to encourage financial institutions to 
become familiar with international standards and pra ctices on debt sustainability, and to explore 
ways to establish a coordination system for external claims.  
Question  
b. The Belt and Road Initiative is plagued by an overall lack of transparency in publishing project 
details, selection criteria, financing term s and other related information. Is China willing to enhance 
transparency? If so, what steps will China take to do so?  
c. To date, Belt and Road Initiative projects have been dominated by China's  state-owned 
enterprises. Is China willing to promote greater inclusivity in Belt and Road Initiative projects? If so, 
what steps will China take to do so?  
Reply 
The BRI is an open and inclusive initiative which acts in accordance with the rule of the mark et, and 
specific projects are implemented through enterprises. It follows market rules and established 
international rules, and we welcome equal participation by enterprises of all types. The Chinese 
government will focus on providing a fair and transparen t business environment, favourable  
investment policies and legal guarantee, support and guide more domestic and foreign enterprises 
to actively participate in the BRI, promote the smooth implementation of relevant projects, and 
enable more results of mutua l beneficial and win -win cooperation to benefit the people of all 
countries at an earlier date.  
Sticking to the principle of jointly built through consultation to meet the interests of all, the BRI 
conforms to the theme of the era of peaceful development a nd the common aspiration of various 
countries to accelerate development. China welcomes relevant countries to take the express train of 
China's  development. The BRI originated in China, but the opportunities and achievements belong 
to the world.  
Most of th e BRI projects are commercial projects and are the market behaviours  of enterprises. The 
way of operation and how to publish the initial information of the projects are determined by the 
project owners and do not depend on the Chinese government. However, the government will 
recommend enterprises to publish the initial information of the projects as much as possible, and 
timely announce the information on relevant projects to the society.  
1.2.2 Fiscal policy and reform , page 22, paragraph 1.26  
The Secretariat's  report discusses China 's policies regarding debt -for-equity swaps. Recent reports 
indicate that China 's five leading state -owned commercial banks continue to participate in debt -for-
equity swaps and that these transactions frequently benefit state-owned enterprises, including state -
owned enterprises in sectors experiencing overcapacity.  
Question  
a. Which industries are the predominant beneficiaries of debt -for-equity swaps?   
Reply  
By the end of 2017, various entities signed market -based debt -for-equity swap framework 
agreements with a number of enterprises. The enterprises with funds in place are mainly enterprises 
in non -ferrous metal, coal, ship -making, steel and power industries.  WT/TPR/M/3 75/Add.1  
 
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  Question  
b. Are any debt -for-equity swaps specifically designed for state-owned enterprises? If so, please 
explain how the terms of these swaps may differ from the swaps afforded to private enterprises.  
Reply  
The debt -for-equity swap follows the core principles of market -orientation  and the rule of law. The 
Opinions of the State Council on Proactively Yet Prudently Lowering Enterprise Leverage Ratios and 
its annex Guiding Opinions on Market -based Debt -for-equity Swaps with Banks require that decisive 
role of the market in resource al location should be brought into full play, long -term mechanisms 
such as the establishment of market -based selection of target enterprises of debt -for-equity swaps, 
market -based pricing, market -based fund -raising, and market -based equity exit should be 
established, and the government does not force enterprises, banks and other institutions to 
participate in debt -to-equip swaps. The Notice on Specific Policy Issues in the Implementation of 
Market -based Debt -for-Equity Swaps with Banks specifies that all types  of ownership enterprises 
should be supported to carry out market -based debt -for-equity swaps. The relevant market entities 
independently negotiate and determine the target enterprises of market -based debt -for-equity 
swaps regardless of the ownership of th e target enterprises. Various types of non -state-owned 
enterprises that meet the requirements of the Opinions such as private enterprises and foreign -
funded enterprises are all supported to carry out market -based debt -for-equity swaps.  
Question  
c. How are swa p-receiving enterprises able to incur debt in amounts that subsequently require 
these enterprises to seek debt -for-equity swaps? Are swap -receiving enterprises receiving debt -for-
equity swaps from the same state -owned commercial banks that provided these e nterprises original 
debt financing?  
Reply  
At present, the enterprises that carry out debt -to-equity swaps are mainly high -quality enterprises 
with good development prospects encountering temporary difficulties. Many of these enterprises 
belong to the cycli cal industry. During the stage of economic upswing, the market demand was large, 
the operating conditions were good, and the profitability was relatively high. When the economic 
growth slowed down and the market demand weakened, problems such as heavy debt  burden and 
tight capital flow emerged. The Measures for the Management of Financial Asset Investment 
Companies (for Trial Implementation) stipulates that when financial asset investment companies 
acquire creditors rights and invest in the equities of ente rprises with proprietary funds, different 
commercial banks are encouraged to engage in cross -implementation of debt -for-equity swaps 
through the financial asset investment companies that are controlled by them or the financial asset 
investment companies of  which these commercial banks are shareholders. When financial asset 
investment companies acquire creditors rights and invest in the equities of enterprises with raised 
funds, it shall be mainly used in the cross -implementation of debt -for-equity swaps.  
Question  
d. Is the outstanding debt of an enterprise generally written down prior to its conversion to 
equity? If not, why not?  
Reply  
Judging from the actual operations of the contracted and landed projects, the current creditor's 
rights of enterprises corres ponding to market -based and legalized debt -to-equity swaps currently 
are mostly non -performing debts. Because these enterprises are mainly high -quality enterprises 
with good prospects but facing temporary difficulties, the financial problem is only tempora ry. 
1.2.3 Other structural measures , page 23, paragraph 1.28  
The Secretariat 's report notes that "some progress " has been made regarding  mixed ownership 
reform for state -owned enterprises.  WT/TPR/M/3 75/Add.1  
 
- 87 - 
 
  Question  
a. Can China explain the specific timing and goals of this programme , e.g., reducing the debt 
liabilities of state -owned enterprises, allowing inefficient firms to exit the market, allowing for 
adjustments through the labour  market, etc.? To the extent that state share divestiture does not 
result in transfer of co ntrol, and to the extent that the government uses M&A, not bankruptcy or 
liquidation, to address enterprise non -viability, what is the ultimate point or objective of reform?  
Reply  
In August 2015, CPC Central Committee promulgated the Guidelines on Deepenin g SOE Reforms 
which proposed classified implementation of SOE reforms and the development of mixed -ownership 
economy. In September 2015, the State Council promulgated the Opinions on the Development of 
Mixed Ownership Economy in SOEs which made further arr angements for the development o f mixed -
ownership economy. The o pinions pointed out that efforts shall be made to, by means of deepening 
reform leading to mixed ownership in SOEs, promote improvement of the modern enterprise system 
and perfect the administr ation structure of business entities, raise the efficiency of distribution and 
operation of State -owned capital, optimize the distribution of the State -owned sector of the economy, 
and enable the capital of various forms of ownership to adopt one another's  strong points while 
overcoming one another's weak points, to realize common development. Meanwhile, to promote 
reform leading to mixed ownership, the role of the market mechanism shall be brought into full play, 
no timetable should be set, so that the ref orm will proceed smoothly.  
Questions  
b. Please describe the efforts of the central government regarding  mixed -ownership reform 
during the review period.  For these reform efforts, please indicate what share of the state -owned 
enterprises remain majority state -owned or state -controlled after state share divestiture.  
c. Please describe the efforts of sub -central governments regarding  mixed -ownership reform 
during the review period. For these reform efforts, please indicate what share of the state -owned 
enterprises r emain majority state -owned or state -controlled after state share divestiture.  
Replies to b-c 
The Opinions on the Development of Mixed Ownership Economy in SOEs points out that it is 
necessary to carry out pilot project demonstrations to lift restrictions on competitive businesses and 
promote mixed ownership reform by combining reforms in the fields of power, oil, natural gas, 
railways, civil aviation, telecommunications, and war industry. Up to now, 50 pilot demonstration 
projects for mixed ownership refor m in three batches have been launched, covering enterprises at 
central level and some local SOEs. Mixed ownership reform may lift restrictions on competitive 
businesses, break administrative and market monopoly, promote separation of government and 
enterpr ise, separation of government and capital, separation of network and operation and 
franchising, allow and even introduce more non -state capital into these fields, fully embodying the 
requirements on mixed ownership such as improving governance, strengtheni ng incentives, 
highlighting the main businesses, and improving the efficiency.  
State Asset Supervisory Administrative Commission (SASAC) formulated the Notice on Printing and 
Distributing the Provisions on the Matters Related to the Implementation of Mixed  Ownership Reform 
in Central Enterprises, which clarifies relevant procedures and requirements. SASAC also 
promulgated the Measures for the Supervision and Management of State -owned Asset Trading of 
Enterprises, which provides operational guidelines for st ate-owned enterprises to introduce various 
types of social capital to carry out mixed ownership reform. The Measures for the Supervision and 
Management of the State -owned Shares of Listed Companies promulgated in 2018 creates a fair 
environment for all typ es of entities to participate in mixed ownership reform.  
There are no one -size-fits-all quantitative standards on the proportion of state -owned share holdings 
and the retained shares of state -owned shares, and the mixed ownership reform on experimental 
basis is still underway. Therefore, we cannot provide the share of the state -owned enterprises remain 
majority state -owned or state -controlled after state share divestiture.  WT/TPR/M/3 75/Add.1  
 
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  Page 23, paragraph 1.30  
The Secretariat 's report states that there appears to be over capacity in at least ten sectors in China.  
Question  
a. What steps is China taking to reduce overcapacity in each of the identified sectors?  
Reply  
China does not accept the statement that there appears to be overcapacity in at least ten sectors in 
China. We have already communicated with the Secretariat of the WTO on China 's position when 
the report was being drafted. There is overcapacity in a few sectors such as steel and coal in China, 
and we have been working hard to effectively eliminate excess capacity.  
From 2016 to 2020, China plans to dissolve production capacity by 100 -150 million ton nes of crude 
steel. While adhering to the market -based principle and the rule of law, we have actively and steadily 
resolved excess steel production capacity by the exit of outdated production capacity according to 
laws and regulations and guiding the voluntary exit of production capacity. Meanwhile, China has 
strictly controlled new production capacity, strictly implemented the policies on production capacity, 
and prohibi ted illegal new production capacity. With the joint efforts of all parties, we reduced the 
production capacity of crude steel by more than 65 million tonnes  and more than 55 million tonnes  
in 2016 and 2017 respectively, achieving the 5 -year lower threshold  limit ahead of schedule. This 
year, China has decided to cut the production capacity of crude steel by another 30 million tonnes  
or so.  
Electrolytic aluminium : The electrolytic aluminium  industry addresses overcapacity mainly through 
the means of market o rientation and rule of law. The key is to strictly put the newly increased 
capacity under control, require the new electrolytic aluminium  projects to implement capacity 
replacement and prohibit illegal expansion of the existing capacity. There is no capaci ty reduction 
goal for this industry.  
Coal: The Chinese government attaches great importance to the work of addressing the overcapacity 
in the coal industry. The Opinions of the State Council on the Coal Industry Addressing Overcapacity 
to Get out of Difficulty for Further Development issued i n 2016 made overall deployment and 
arrangement for the coal industry to cut down on its overcapacity for the purpose of alleviating 
difficulty and seeking further development. That document specified that since 2016, the coal 
industry had to reduce a 500m ton or so capacity and restructure a 500m ton or so capacity within 
a period of 3 -5 years, with a view to considerably squeezing on that industry's  capacity and 
moderately downsizing the number of coal mines. As a result, the overcapacity of that industry has 
been effectively dealt with, leading to a basic balance between supply and demand, optimization of 
the industrial structure and substantial progress in the industry transformation and upgrading. The 
last two years have seen the coal industry reduce a 5 40m ton capacity, including 290m tonnes  in 
2016 and 250m tonnes  in 2017.  
Ship: In an attempt to effectively deal with the overcapacity in the ship industry, the State Council 
promulgated Guiding Opinions on Resolving the Severe Overcapacity Contradiction ( Guo Fa [2013] 
No. 41) in 2013, laying down explicit requirements for the ship industry to address its overcapacity 
problem. That document strictly  prohibits the development of any new projects that increase the 
capacity of the ship industry, any local gove rnment or authority shall not approve or file  any capacity 
expansion projects in any name or in any way.  
Petrochemical: the petrochemical industry in China is not confronted with a structure issue rather 
than the overcapacity problem overall. On the one ha nd, there is some excess capacity in the low -
end basic chemical products; on the other hand, there is a serious shortage of many high -end 
petrochemical products, which are currently dependent on large import. So the description that the 
petrochemical indus try suffers overcapacity is not correct.  
Papermaking: We are highly aware of the healthy development of the papermaking industry. 
Currently, the industry sees a basic balance between supply and demand. So the statement that the 
papermaking industry suffers  overcapacity is not accurate, in fact.  WT/TPR/M/3 75/Add.1  
 
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  Coal-fired power generation: 16 ministries and commissions of the central government, including 
the National Development and Reform Commission and the State Administration of Energy, jointly 
promulgated a document en titled Opinions on Promoting the Supply  Side Structural Reform to 
Prevent and Mitigate Overcapacity Risks in the Coal -fired Power Generation Industry (Fa Gai Neng 
Yuan [2017] No.  1404) in August 2017. The document mentions that the installed power generati on 
capacity of the coal -fired power industry across the country shall be capped at 1100MW by 2020.  
Question  
b. With regard to the shipbuilding sector, which is one of the ten excess capacity sectors 
identified by the Secretariat's  report, does China intend to  stop providing subsidies for new fishing 
vessel construction? If so, when?  
Reply  
With regard to the subsidies provided for fishing industry, please refer to China's  upcoming subsidy 
notifications.  
1.3.2 Trends and patterns in FDI , page 30, paragraph 1.50  
Question  
The list of five countries from which the majority of FDI inflow into China originates are primarily 
locations where investment vehicles are established. Does China look at ultimate beneficial 
ownership in the context of FDI inflows? If so, what a re the top countries in terms of ultimate 
beneficial ownership for FDI inflows into China?  
Reply  
According to existing stipulations, China identifies the origin of foreign investment and releases 
statistical data as per the place of registration of the inv estors. When a foreign -invested enterprise 
is newly incorporated or changed, the applicant shall provide information on actual controller of the 
investor in addition to information on the place of registration of the investor.  
Page 30, paragraph 1.51  
Apart  from the United States, the list of other countries that are the top destinations for FDI from 
China are primarily countries in which investment vehicles are established. Can China provide data 
on the top countries for FDI outflows in terms of ultimate in vestment destination?  
Reply  
All information is available in the Statistical Bulletin of China's Outward Foreign Direct Investment. 
Presently, China conducts statistical work on FDI outflows according to the principle of the first 
destination of investment,  so the data on FDI outflows in terms of the ultimate investment 
destination are not available nowadays.  
2 TRADE AND INVESTMENT  REGIME  
 
Page 31, paragraph 2.5  
 
The Secretariat's  report notes that China publishes drafts of trade -related laws, regulations and rules 
for public comment. It also notes that China publishes the final versions of these measures. 
Unfortunately, the Secretariat's  report does not report on how consistently or under what 
circumstances China publishes, or does not publish, draft and final measures, including so -called 
normative documents and measures issued at sub -central levels of government, nor does it address 
other important practices relating to transpare ncy in China.  
 WT/TPR/M/3 75/Add.1  
 
- 90 - 
 
  Question  
 
a. In paragraph 2(C)(2) of Part I of its Protocol of Accession to the WTO, China committed to 
"establish or designate an official journal dedicated to the publication of all laws, regulations and  
other measures pertaining to or affect ing trade in goods, services, TRIPS or the control of foreign 
exchange. " When will China begin publishing all measures issued at the central and sub -central 
levels of government in its official journal?  
Reply  
 
In recent years, the Chinese government has be en strengthening institutional guarantee for the 
transparency of trade policies. According to the Legislation Law of China and other provisions 
governing the formulation procedures of rules and regulations, government Gazettes are official 
platforms for go vernments at various levels to issue administrative regulations, rules and normative 
documents. In March 2018, the Chinese government issued a notice to make further arrangements 
with respect to the work on government Gazette with a view to giving more pla y to government 
Gazette in enhancing the transparency of government policies. At the meantime, China Foreign 
Economic  and Trade Gazette continues to be the designated journal for publishing laws, regulations 
and other measures pertaining to or affecting tr ade in goods, services, TRIPS or the control of foreign 
exchange.  
 
Question  
b. The Secretariat's  report omits any reference to normative documents, which take a variety of 
forms and are formulated by various government authorities in China. Normative document s are 
typically issued without the use of adequate notice -and-comment procedures, even though they 
often confer benefits or impose binding requirements on enterprises and individuals as well as 
Chinese government officials in charge of administering laws, administrative regulations and 
departmental rules. Please describe how China intends to reform its use of normative documents, 
including not only by providing for public comment on proposed normative documents, but also by 
publishing all final normative do cuments? What is China's  timetable for implementing this reform?  
 
Reply  
 
The Notice of the State Council General Office on Issues Relating to the Work of Sorting out 
Administrative Regulations and Departmental Rules and Documents dated 27 January 2016 again 
required the State Council departments to thoroughly straighten out their departmental rules and 
documents. To date, this round of work has basically come to its end. The Administrative Procedural 
Law of the People 's Republic of China enacted in May 2015 provided that if citizens, legal persons or 
other organizations question the legality of a normative document formulated by the State Councils 
departments or local people's  governments or their departments which is used as a basis for an 
administrativ e action against them, they can request for a review of the normative documents in 
addition to bringing that administrative action into court. The Implementation Program for the 
Construction of Law -based Government (2015 -2020) issued in December 2015 deman ded that 
normative document formulation procedures be improved; legality review and collective discussion 
systems be put in place; the practice of registering, numbering and issuing normative documents 
uniformly by the authority that makes them be followed ; no administrative licen ce, administrative 
punishment and administrative enforcement can be established by normative documents to impair 
the legal rights and interests of citizens, legal persons or other organizations or to increase their 
obligations; nor mative documents involving the rights or obligations of citizens, legal persons or 
other organizations should be publicized according to legal requirements and procedures; and long -
term mechanisms be established to sort out normative documents, etc.  
 
Ques tion 
 
c. The United States recalls China's  commitment in paragraph 334 of the Working Party Report 
accompanying China's  Protocol of Accession to the WTO to make available to WTO Members 
translations into one or more WTO languages of all trade -related laws, re gulations and other 
measures and to the maximum extent possible make these available before they are implemented 
or enforced, but in no case later than 90 days after they are implemented or enforced. What plans 
does China have for finally implementing this  commitment?  
 WT/TPR/M/3 75/Add.1  
 
- 91 - 
 
  Reply  
 
National People 's Congress publishes English version of Laws of the People 's Republic of China. In 
February 2003, the General Office of the State Council issued the Notice on the Examination and 
Approval of English Translation of Regu lations. The translations are made public upon examination 
and approval. In March 2015, the General Office of the State Council further issued the Notice on 
Enhancing the Work of Translating Trade -related Departmental Rules into English, requiring that 
English translation of Department Rules should be made publicly available to the extent possible 
through official website of government departments or other channels.  
 
Page 35, paragraph 2.25  
The Secretariat's  report states that "China intends to construct a high-standard FTA network starting 
with neighbouring  countries, extending to the countries participating in the Belt and Road Initiative 
and opening up to the whole word. " China also has announced that it intends to establish courts in 
Xian, Shenzhen and B eijing to handle international commercial disputes arising from the Belt and 
Road Initiative. These courts are to be set up by the Supreme People 's Court of China.  
Questions  
a. In unilaterally establishing courts within China under the Supreme People 's Court of China to 
adjudicate Belt and Road -related disputes, is it China's  intent that project participants will be 
obligated to use the Belt and Road courts to resolve disputes and that project participants no longer 
can decide among themselves the mean s for resolving their disputes?  
b. Will decisions by the Belt and Road courts be subject to the direction of the Communist Party 
of China, like China 's other courts, or will the Belt and Road courts be independent?  
c. Is China 's intent to use the Belt and Road c ourts to replace dispute settlement arrangements 
in existing bilateral or multilateral agreements?  
Replies to a-c 
Opinions on Establishing the Belt and Road International Commercial Dispute Resolution Mechanism  
and Organization (hereinafter referred to as Opinions) was issued in January 2018. In addition to 
that, scope of commercial disputes to be accepted by courts for international commercial disputes 
can be found in the judicial interpretation of the Supreme People 's Court on issues relating to the 
estab lishment  of courts for int ernational commercial disputes.  
The significance of establishing the Belt and Road international commercial dispute resolution 
mechanism and organization can be elaborated as follows:  
Firstly, it is conducive to forming a fair, ju st, professional, efficient, transparent, convenient and low 
cost international commercial dispute resolution mechanism. By setting up international commercial 
courts and a committee of international commercial experts, the Opinions aim to foster and impro ve 
a diversified dispute settlement mechanism under which international commercial litigations work 
together with mediation and arbitration with a view to better resolving international commercial 
disputes and meeting the needs of domestic and foreign clie nts for diversified dispute settlement 
mechanisms. The Opinions fully respect the clients right to select dispute settlement methods based 
on agreement and widen the channels for international commercial disputes to be resolved, without 
modifying existing international commercial dispute resolution mechanisms stipulated by 
international treaties.  
Secondly, it is conducive to constantly optimizing the environment for doing business according to 
law under the Belt and Road initiative. The Initiative involves a great deal of cross -country 
commercial activities and therefore needs to be advanced in an orderly manner with the law playing 
its role. The Opinions proposes a systematic solution, i.e. establishing the Belt and Road international 
commercial dispute res olution mechanism and organization, so that excellent judicial personnel  will 
join the international commercial courts and high-quality  experts in the resolution of international 
commercial disputes will get invol ved. WT/TPR/M/3 75/Add.1  
 
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  Thirdly, it is conducive to creating new platforms for international legal cooperation. The Opinions 
proposes the introduction of international commercial courts, initiates the establishment of an 
international committee of commercial experts and advocates the participation of legal experts f rom 
the Belt and Road countries in commercial dispute resolution field, thus highlighting the international, 
neutral and professional nature of the proposed commercial dispute settlement mechanism and 
providing a new platform for international legal cooper ation.  
2.4 Investment Regime , 2.4.1 Regulatory framework and market access , page 37, 
paragraph 2.31  
Recent reports from foreign companies operating in China indicate that there has been an increase 
in the activities of Communist Party cells in many wholly foreign -owned enterprises, foreign -invested 
enterprises and Sino -foreign joint ventures, especially over the past year, with the apparent 
objective of providing the Communist Party an increased role in business management and decision 
making.  
Question  
a. Please explain if these reports are accurate and define the parameters of the activities that 
the Communist Party cells are supposed to carry out in these enterprises? Do the envisioned 
activities of the Communist Party cells include a role in business managem ent decisions affecting, 
for example, R&D, investment, hiring and firing personnel, expansion or reduction of manufacturing 
capacity, etc.?   
Reply  
1.  This practice is in line with China 's laws and relevant regulations.  
2.  The establishment of party orga nizations conforms to the wishes of enterprise employees.  
3.  It is conducive to promoting the development of production and management of enterprises.  
4.  In practice, the enterprise -based Party organizations organically integrate their activities with 
the production and operation of their enterprises, thus offering strong support for the healthy 
development of the enterprises.  
Question  
b. Please explain the mechanisms available to a foreign company under Chinese law to resolve 
any differences that it may have with an internal Communist Party cell or Communist Party member 
wishing to play a stronger role in business management decisions.  
Reply  
Such laws as the Company Law, the Chinese -foreign Equity Joint Ventures Law and the Foreign -
invested Enterprises La w have provided for the governance structure of foreign -invested enterprises, 
as well as their operational decision -making procedures. Foreign -invested enterprises may set up 
such organizations as shareholders meeting and board of directors, etc according to relevant 
provisions and make operational dec isions by the operation of law.  
Question  
c. If the mechanisms available to a foreign company under Chinese law involve using Chinese 
courts to resolve its differences with an internal Communist Party cell or a Co mmunist Party member, 
how can the foreign company be confident in a fair adjudication when the decisions of China's  courts 
are subject to the direction of the Communist Party?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Article 131 of the Constitution of the People's Republic of China stipulates that the people's courts 
independently exercise judicial power in accordance with the law, and are not subject to interference 
by administrative organs, social organizations and individuals.  
Page 40, paragraph 2.39 
The Secretariat's  report notes  that FDI involving investments in domestic companies may be subject 
to national security review if the FDI is related to defence  or is deemed to have an influence on 
national security.  
Question  
a. What measure defines "national security " in this context? Wha t measure sets forth the 
procedures for the national security review in this context?  
Reply  
The State Council General Office printed and circulated a Notice on Establishing Security Review 
Systems for Merger & Acquisition of Domestic Enterprises by Foreign  Investors (Guo Ban Fa [2011] 
No.6) in February 2011, providing for the scope, content, working mechanism and procedures for 
the M&A security review and creating a unified and standardized security review system for M&A 
activities conducted by foreign inve stors. In April 2015, the State Council General Office printed and 
circulated the Trial Measures for National Security Review on Foreign Investment in Free Trade Pilot 
Zones (Guo Ban Fa [2015] No.24), prescribing that the national security review of foreig n investment 
in free trade pilot zones shall be subject to the procedures articulated by  Article 4 of the  notice Guo 
Ban Fa [2011] No.6.  
Question  
b. Has China conducted any national security reviews involving a foreign acquisition of a Chinese 
company to date ? Please explain.  
Reply  
According to the National Security Law and the Notice on Establishing Security Review Systems for 
Merger & Acquisition of Domestic Enterprises by Foreign Investors (Guo Ban Fa [2011] No.6) and 
the Trial Measures for National Securit y Review on Foreign Investment in Free Trade Pilot Zones 
(Guo Ban Fa [2015] No.24), China has undertaken national security review on the acquisition of 
domestic enterprises by foreign investors.  
3 TRADE POLICIES AND P RACTICES BY MEASURE  
3.1 Measures Direct ly Affecting Imports , 3.1.1 Customs procedures, valuation, and 
requirements , page 45 , paragraphs 3.1, 3.2 and 3.71  
The Secretariat 's report discusses China's  efforts to reform and harmonize its customs procedures 
pursuant to Articles 10.4 and 10.7 of the Agreement on Trade Facilitation (TFA). According to the 
Chinese government, one third of imports are now declared through single windows. It adds that, 
under the National Customs Clearance Reform, a number of steps were taken to facilitate and 
expedite the clearance of exports including the continued development of single windows.  
Question  
a. Article 10.4 of the TFA requires that a Member provide a single window, enabling traders to 
submit documents for importation, exportation or transit of goods through a single point to the 
participating authorities or agencies. The Secretariat's  report refe rs to multiple single windows in 
China. How many single windows does China maintain, and how does one single window differ from WT/TPR/M/3 75/Add.1  
 
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  another? How does a trader know which single window to file with? Will these multiple single windows 
be combined to have one sin gle window for the whole of China's  customs territory?  
Reply  
The Single Window initiative for international trade of China is coordinated and advanced by the 
State Councils Ministerial Joint Meeting system for the port work. Based on the electronic port 
platforms at the central and local government levels, the Single Windows jointly create a nationally 
unified environment for trade facilitation. The central government is responsible for establishing 
standard normative systems, unifying basic common function s, formulating standard versions of the 
Single Window system and rolling them out across the country, and coordinating cross -departmental 
and cross -border interconnection and information sharing affairs. The local governments at the 
provincial, autonomous region and municipality level are responsible for developing, localizing and 
implementing provincial -wide Single Windows based on the nationally standardized versions, as well 
as for embedding locally distinctive services into the system. Traders have the discretion to choose 
between the central and local Single Window platforms to undergo the import or export declarations. 
In fact, all declarations are processed by standard editions of the Single Window system. Therefore, 
the data and documents to be submi tted by enterprises are actually the same under the central and 
local systems.   
At the end of 2017, the standardized Single Window system for international trade has covered all 
ports across the country.  
Question  
b. Article 10.7 of the TFA states that a Memb er will apply common customs procedures and 
uniform documentation requirements for the release and clearance of goods throughout its territory. 
How does China reconcile the use of multiple single windows with Article 10.7, which includes a 
commitment to ha ve common border procedures and uniform documentation?  
Reply  
Chinese customs administrations have implemented integrated customs clearance procedures so the 
release and clearance of goods are already subject to common customs procedures and 
documentation r equirements.  
By the end of 2017, the customs clearance integration reform across the country has basically been 
completed. By way of organizational restructuring and procedural reconstruction, the new risk 
prevention and control centre  and tax collection and administration centre  have realized centralized 
disposal of risks, direct communication of instructions to the forefront and furtherance of the one 
declaration, phased disposal reform. As a result, the customs across the country are  now enforcing 
laws and providing services in a unified, coordinated manner. Enterprises can undergo the customs 
clearance procedures at any customs across the country and are subject to the same regulation and 
service standards.  
The State Administration o f Customs has formulated a Framework Plan for Thorough Integration of 
the Customs Inspection Business under the National Customs Clearance Integration Initiative as well 
as implementation plans for respective business areas. According to the arrangements o f the Plan, 
the integration of document submissions and instructions giving will be achieved on 1 August , and 
the integration of operating systems, risk study and judgment, and on -site law enforcement will be 
achieved at the end of this year.  WT/TPR/M/3 75/Add.1  
 
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  On the one ha nd, all the Single Windows systems across the country are developed according to the 
same standard system and all Single Windows are interconnected to create a unified Single Windows 
environment; on the other hand, the declaration of goods and other busine sses are all completed 
through the standardized Single Windows system for international trade, which has been promoted 
to all ports across the country. Hence, the requirement that all Single Windows operations at all 
ports of the country are subject to com mon customs procedures and uniform documentation 
requirements is fully satisfied . 
Page 45, paragraph 3.2  
Question  
US airlines have observed and noted different treatment at various China customs offices throughout 
China, which makes cargo shipments carried  on a co -terminal operation subject to inspection at 
each stop. If China were to eliminate this duplication of inspections, trade would be facilitated and 
greater efficiencies would result for both carriers and China Customs, permitting China Customs to 
focus its personnel and resources on a risk -based approach.  Has China considered issuing a  measure 
to facilitate the transit of goods between local customs offices, which could enable importing and 
exporting to and from inland and non -gateway locations to be come significantly more efficient?  
Reply  
The transit of goods falls into the multimodal transport domain. The State Administration of Customs 
attaches great importance to the reform and innovation of customs supervision over the multimodal 
transport busine ss and is now formulating and improving corresponding administrative measures 
and their supporting systems in order to facilitate the convenient movement, fast transshipment and 
seamless integration of the eligible entry and exit goods in different modes o f transport.  
Page 46, paragraph 3.5  
The Secretariat's  report states that, for customs purposes, enterprises are classified into different 
groups based on risk analysis, which then informs the level of customs inspection and supervision.  
Question  
a. What steps is China taking to enhance inspections of timber and wood products imports, 
especially those from countries that are at high risk for illegally harvested timber? What steps is 
China taking or planning to take to curb the import of illegally harvested  timber and wood products?  
Reply  
As the authority responsible for entry and exit supervision and management, the customs of China 
exercise supervision over the entry and exit of goods subject to prohibition or restriction according 
to laws and regulations.  With respect to timbers and wood products listed in the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora and in conformity with the 
inspection and quarantine standards of China, the declarant shall submit to the customs auth ority 
the Import Permit under the Convention on International Trade in Endangered Species of Wild Fauna 
and Flora as well as other regular documents when undergoing import declaration procedures; with 
respect to timbers and wood products not listed in the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora but in conformity with the inspection and quarantine 
standards of China, the declarant can submit only regular documents to the customs authority when 
undergoing the import dec laration procedures. The customs risk departments will strengthen the 
import prevention and control of illegal timbers and wood products by looking at the credit rating of 
enterprises, whether the commodity is under control and the processing risk of the c ommodity, etc, 
examining the customs clearance documents, checking the contracts, invoices and certificates of the 
place of origin, and conducting field inspection, etc. The customs anti -smuggling departments crack 
down hard on crimes of smuggling endanger ed species of plant that attempt to evade the CITES 
permit administration.  WT/TPR/M/3 75/Add.1  
 
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  Question  
b. What actions is China taking or planning to take to ensure that its imports and exports of fish 
and fish products are not the product of illegal, unreported and unregulated  (IUU) fishing? What 
penalties currently are associated with IUU vessels (e.g., cancelling licen ces, revoking permits, fines, 
etc.)? Do these penalties apply when the Chinese -flagged vessel is operating on the high seas or in 
other countries waters?  
Reply  
China has the largest number of fishing boats and fishermen in the world. Sustainable development 
of the fishing industry is of great significance to the economic development, social and fishing 
industry stability, poverty reduction and building of a moder ately prosperous society in all respects 
across the coastal areas of the country. China is conducting effective cooperation with the 
international community through bilateral mechanisms, regional fishery governing bodies and the 
FAO to promote the protecti on, management and reasonable exploitation of fishery resources, 
thereby effectively containing illegal fishing and realizing sustainable fishery.  
Question  
c. Does China intend to join the 2009 Agreement on Port State Measures to Prevent, Deter and 
Eliminate Illegal, Unreported and Unregulated Fishing? If so, when?  
Reply  
China intends to join the FAOs Agreement on Port State Measures to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing, for which China has conducted preliminary preparato ry 
work, e.g. making feasibility study, sorting out domestic laws as well as regulations and undertaking 
communication and coordination among government departments. It will join that agreement as 
soon as possible upon completion of the preparations and do mestic procedures, but no definite 
timetable is available now.  
Page 46, paragraph 3.7  
The Secretariat 's report discusses China's  transparency notification pursuant to Articles 1.4 and 
10.6.2 of the Agreement on Trade Facilitation  (G/TFA/N/CHN/2/REV.1).  
a. Article 1.4 of the Agreement on Trade Facilitation requires that a Member provide the Internet 
link for the forms and documents required for importation, exportation and transit. China notified 
this link:   
http://online.customs.gov.cn/static/pages/guides/show.html?applyUrl=/static/pages/guides/JC000
35003/JC00035003.html . However, the forms and documents at this link do not appe ar to be 
capable of being downloaded.  
Question  
Could China provide a link that allows all necessary forms and documents to be downloaded?   
Reply  
Currently, the administrative services and service guidelines of Chinese Customs are being adjusted 
dynamically . Chinese Customs will continuously improve the guidelines for relevant services and 
actively provide all the forms and documents necessary for provision of the services by offering 
guidelines for the services listed on the internet+customs integration pla tform. So far, Chinese 
Customs have developed an internet+customs integrated online service platform, which has sorted 
out and numbered all the services provided for foreign parties and, according to requirements of the 
State Council, formulated service gu idelines for each item of such services. The forms and documents 
can be available for downloading under the guidelines of each service and be updated on an ongoing 
basis.  WT/TPR/M/3 75/Add.1  
 
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  Question   
b. Article 1.2.2 of the Agreement on Trade Facilitation states that, wherever practicable, a 
Member shall publish its practical guide for importation and exportation in an official WTO language. 
A step -by-step guide would be very helpful to small and medium -sized enterprises and other 
businesses looking to enter the China market. Wi ll China make its practical guides available in one 
of the official WTO languages?  
Reply  
At present, Chinese Customs is continuously strengthening and improving its English portals, which 
will provide more targeted customs clearance guidance for traders, especially small and 
medium -sized enterprises.  
3.1.5 Import prohibitions, restrictions, and licensing , page 52, paragraph 3.32  
The Secretariat 's report notes that China lists products subject to non -automatic licen ces annually 
in the Catalogue of Restricte d Imports for Solid Waste. China's  actions in this area have gained the 
attention of many of its major trading partners and has been raised in various WTO committees. On 
5 April 2018, the WTO Committee on Import Licensing circulated written questions to Ch ina from 
the European Union (G/LIC/Q/CHN/27), which, among other things, requested a detailed list of 
waste and recovered materials subject to non -automatic import licen ces. 
Question  
a. When can WTO Members expect China to provide written answers to the EUs q uestions?  
Reply  
China actively performs its obligations with respect to transparency. Relevant competent authorities 
are now earnestly studying and considering the comments and opinions already received and will 
reply according to the internal work procedu res of the Chinese government.  
b. Is China planning to ban or further restrict the import of ferrous and non -ferrous scrap?  
Reply  
In April 2018, the Ministry of Ecology and Environment, Ministry of Commerce, National Development 
and Reform Commission and State Administration of Customs of China jointly circulated a Notice on 
Adjusting the Catalogue of Wastes Subject to Import  Control, subjecting 16 solid wastes, including 
waste metal ware , scrapped ships, compressed pieces of scrapped vehicles, smelt slags  and waste 
plastics of industrial origin, to an import ban that will take effect as of 31 December 2018, and in 
the meantime, subjecting another 16 types of solid wastes, including the waste and scrap of stainless 
steel, the waste and scrap of titanium and  the waste and scrap of wood, to an import ban that will 
take effect as of 31 December 2019.  
Page 53, paragraphs 3.33 -3.34 
The Secretariat's  report states that China has moved a number of products from the Catalogue of 
Solid Wastes Used as Raw Materials an d Subject to Import Restriction to the Catalogue of Solid 
Wastes Subject to Import Prohibition.  
Question  
a. China has seemingly sought to justify these measures on environmental grounds. Can China 
cite to any publicly available materials that establish the relevant environmental concerns? What are 
those concerns?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Unlike ordinary raw materials, solid wastes  are inherently polluting, and if improperly processed, will 
pollute air, water and soil and therefore impair ecological security and human health. Solid wastes 
constitute a common environmental concern of the whole world. According to principles widely 
recognized by the international community, each country has the obligation to process and dispose 
its own solid wastes. As a developing country with the largest population in the world, China has a 
large stock, and newly generates a large amount of, solid wa stes every year, thus facing an 
unprecedented difficulty in dealing with the pollution resulting therefrom. At the same time, China 
imports 45 million tonnes  or so of solid wastes every year. The toxic, hazardous substances carried 
by these imported wastes , e.g. bacteria and viruses, may directly infect practitioners in the industry 
concerned; the waste air or water generated in the process of disposing the imported wastes and 
the residues of the wastes after processing or things mixed with them also are in  need of disposal 
in the end, thus squeezing on the limited environmental capacity of China, significantly increasing 
the environmental  burden of the country and severely harming the health of Chinese people and the 
ecological and environmental security. I n response, China decides to take a series of measures to 
strengthen the prevention and control of solid waste pollution. Restricting and prohibiting the import 
of solid wastes is one of the important measures adopted by the Chinese government to implement  
its new development concept, strive to improve the ecological and environmental quality, and protect 
the national ecological security and public health.  
Question  
b. The Catalogue of Solid Wastes Forbidden to Import into China includes textile fibre and yarn 
waste that typically are not linked with concerns such as protection of human health or safety, 
protection of animal or plant life or health and protection of the environment. These products 
generally are industrial by -products that are further processed i nto various consumer and industrial 
products. Please explain why China has placed textile fibre and yarn waste in the Catalogue of Solid 
Wastes Forbidden to Import into China. Can China cite any specific cases where these products have 
caused environmental concerns?  
Reply  
China produces more than 26 million tonnes  of waste textile products every yea r, but less than 10% 
of them are comprehensively reused, hence there is a big pressure from processing and disposal of 
waste textile products. Imported textile wastes are easy to carry pathogenic organisms, e.g. bacteria 
and viruses, tend to mix with unusa ble things, e.g. composite materials, dust and plant seeds, and 
even carry hazardous substances or harmful alien species, e.g. waste photosensitive materials and 
waste asbestos, thereby squeezing the already limited environmental capacity of China and 
increasing the ecological and environmental risks. For these reasons, China adjusted its Catalogue 
of Wastes Subject to Import Control  in August 2017, moving waste textile products (11 types, 
including yarn waste and waste textile fibre) from the Catalogue of Solid Wastes Useful as Raw 
Materials but  Subject to Import Restrictions to the Catalogue of Solid Waste Subject to Import Ban , 
which has already been implemented at the end of 2017.  
Question  
c. The Catalogue of Solid Wastes Forbidden to Import into China ref ers to "solid waste " that 
contains "dirty wastes " or "hazardous wastes ". Would clean solid waste be allowed? Do the HS Codes 
listed in the prohibition cover only textile fibre and yarn waste that includes dirty wastes or hazardous 
wastes?  
Reply  
The defini tions and identification  of solid wastes are in accordance with the legal provisions of the 
Solid Waste Pollution Prevention and Control Law  of the People 's Republic of China and are basically 
consistent with the legal definitions of relevant waste materia ls under the Basel Convention on the 
Control of Transboundary Movements of Hazardous Wastes and Their Disposal. So wastes useful as 
raw materials fall into the domain of solid wastes. China uses the internationally adopted HS system 
to define the scope of application of the Catalogue of Wastes Subject to Import Control.  WT/TPR/M/3 75/Add.1  
 
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  3.1.6 Anti -dumping, countervailing, and safeguard measures , page 54, paragraph 3.38  
The Secretariat 's report notes that "[t]here have been no changes in China's institutional and 
procedural framework and legislation on AD measures since its previous TPR. " 
Question   
a. During China's  2014 trade policy review, China indicated that it was revising and improving 
the Provisional Rules Governing New Shipper Reviews, Rules on the Refund of Antidumping Duties, 
and the Provisional Rules on Price Undertakings, and will inform the WTO of revisions in a timely 
manner (see RD/TPR/326, page 278). During China 's 2016 Trade Policy R eview, China noted that 
"the amendment of other rules for trade remedy department  will be carried out by MOFCOM as the 
circumstances require " (RD/TPR/654). Please provide an update on the status of revisions of these 
rules and when they will be notified to the appropriate WTO committees.  
b. During China's  2014 trade policy review, China i ndicated that MOFCOM would clarify whether 
it believed that the Provisional Rules for Implementing WTO Trade Remedy Rulings, issued on 
31 July 2013, are in the scope of China's  notification obligations under relevant WTO agreements 
and, if so, whether Chin a would notify the rules to the relevant committees as soon as possible (see 
RD/TPR/326, page 275). In response to questions raised during its 2016 trade policy review, China 
stated that it would complete the notification as soon as possible (see RD/TPR/65 4). Please provide 
an update as to when these rules will be notified to the appropriate WTO committees.  
Reply to questions a -b 
The Ministry of Commerce released the Dumping and Dumping Margin Interim Review Rules, the 
Anti-Dumping  Questionnaire Survey Rule s and the Anti -dumping and Countervailing Hearing Rules 
on 4 April 2018. The three rules have been notified to the WTO accordingly.  
3.2 Measures Directly Affecting Exports , 3.2.4 Export support and promotion , page 64, 
paragraph 3.82  
Question  
The United States most recent counter -notification of Chinese government support programme s 
included 80 sub -central government support measures, all of which appear to be contingent upon 
export performance (see G/SCM/Q2/CHN/71). The focus of this counter -notification was China's  
International Well -Known Brand subsidy programme , the apparent successor to the Famous Export 
Brand subsidy programme . Previously, China had terminated subsidies provided pursuant to the 
Famous Export Brand subsidy programme  in conn ection with a memorandum of understanding with 
the United States, which had brought a WTO dispute settlement case challenging the Famous Export 
Brand subsidy programme . Why were none of the International Well -Known Brand subsidies included 
in China's  subsidy notification covering sub -central government subsidies? When will China eliminate 
its International Well -Known Brand subsidies?  
Reply  
China has looked into the policies included in the counter -notification  by the US. The majority of the 
programme s menti oned in the document submitted by US can be classified as follows. Firstly, policies 
which only give honorary titles of international well -known brands but without subsidies provided. 
Secondly, documents such as plans or catalogues which are of guiding nat ure and involve no specific 
subsidies. Thirdly, policies issued but not effectively implemented. Fourthly, policies unable to be 
identified by the Chinese side.  
Page 64, paragraph 3.83  
Question  
The Secretariat 's report states that  "the management of the VAT rebate is used to contribute to 
environmental protection, energy  saving and emission reduction. Thus, rebates are used to 
discourage the production and export of environment -polluting products. " It adds that products not WT/TPR/M/3 75/Add.1  
 
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  subject to a VAT rebate include  high-energy -consuming products, high -polluting products and those 
related to the use of resources. Please explain how discouraging the export of these types of products 
by disallowing a VAT rebate reduces China's  production of them? Does China impose any comparable 
restraint on the domestic sale of these types of products?  
Reply  
Cancel lation of the VAT refund means that the products are taxed as if they were sold at home. This 
results in the increase of export cost, which in turn reduces production capacit y for the good of 
environmental protection. With respect to products sold at home, China imposes consumption tax 
and also applies no VAT preferences with respect to high -polluting, high -energy -consuming products 
or products of resource nature. For instance , China levies consumption taxes with respect to battery, 
coating materials, wood disposable chopsticks, wood flooring, firecrackers and fireworks, etc.  
3.2.5 Export finance, insurance, and guarantees , page 65, paragraph 3. 90 
Question  
The Secretariat 's report  states that export financing, insurance and guarantees are granted by at 
least two public institutions: the China Export -Import Bank (China Eximbank) and the China Export 
and Credit Insurance Corporation (SINOSURE). According to the OECD 2015 Report  on Chinese 
Export Policies and Programs (TAD/ECG [2015] 3), there is another bank that grants export 
financing, the Agricultural Bank of China (ABC), which is a large state -owned commercial bank and 
is an active provider of export credits for goods and se rvices. According to the ABC website, there 
is mention of a short -term trade financing programme , namely, the Export Credit Insurance 
Financing.  Are any of the ABC export credit programme s, such as the Export Credit Insurance 
Financing, utilized to support  the export of Chinese agricultural products? Please explain.  
Reply  
The financing under the export credit insurance heading (i.e. export credit insurance financing) of 
the Agricultural Bank of China  (ABC) means that after exporting goods or providing servi ces and 
taking out short -term credit insurance policies from China Export and Credit Insurance Corporation, 
domestic exporters transfer their insurance interest to the ABC and have the latter provide them 
with short -term trade financing service. The servic e does not target any particular industry or 
product; rather, it is a general export trade financing product of the ABC. So there is no such thing 
as export credit programme s in support of the export of agricultural products.  
Page 65, paragraph 3.90  
Questi on 
Does China agree that it is critical to finalize export credit guidelines in the International Working 
Group on Export Credits soon so as to help level the playing field and provide a "safe harbour " from 
WTO liability for export credit financing made in accordance with those guidelines that would 
otherwise be considered an export subsidy prohibited by the Agreement on Subsidies and 
Countervailing Measures?  
Reply  
Since the inception of the Internation al Working Group on Export Credit, all parties support the 
working group to formulate a new set of international rules on export credit that takes the interest 
and national conditions  of different countries into account in an effort to promote fair competi tion 
among different exporting countries. The working group is now still working and the timing for all 
parties to reach consensus on relevant subjects depends on the progress of negotiations.  
3.3 Measures Affecting Production and Trade , 3.3.1 Incentives , page 67, paragraph 3.100  
The Secretariat 's report discusses the Interim Measures for the Administration of Central Budget 
Investment Subsidy and Interest Discount Projects, issued by the National Development and Reform 
Commission (NDRC) in December 2016. A ccording to the Secretariat's  report, this measure provides WT/TPR/M/3 75/Add.1  
 
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  "investment subsidies and interest discounts [that] can be granted to industries and sectors in social 
and public services, and public infrastructure; agriculture and rural areas; ecological envir onment 
protection and restoration; major scientific and technological areas; and social management and 
national security. " 
Question  
a. Can China explain which industries and sectors of major scientific and technological areas are 
included in this measure?  
Reply  
The Interim Measures contains mainly procedural provisions.  
Question  
b. Can China confirm that this measure will be included in its next subsidy notification under 
Article 25 of the Agreement on Subsidies and Countervailing Measures?  
Reply  
The Interim Measures  provides mainly procedures and involves no specific allocation and use of 
funds. It is therefore not specific subsidy programme  subject to the notification obligation of the 
SCM Agreement.  
Page 67, paragraph 3.101  
Question  
Will China notify the I nterim Measures for the Administration of Central Budget Investment (Subsidy) 
on High -tech Industry Development Projects in its next subsidy notification under Article 25 of the 
Agreement of Subsidies and Countervailing Measures?  
Reply  
China will study whe ther this specific Measures is related to the notification obligation of the SCM 
Agreement.  
Page 68, paragraph 3.104  
China provided a partial notification of its subsidy programme s at the sub -central level of 
government during the period 2001 to 2014. Its notification contains 100 programme s from 
19 provinces. However, most of these programme s relate to the central governments Famous Export 
Brand subsidy programme  and were terminated pursuant to a memorandum of understanding with 
the United States, which ha d brought a WTO dispute settlement case challenging these subsidy 
programme s as prohibited export subsidies.  
Question  
a. When will China submit a complete notification of sub -central government subsidy 
programme s under Article 25 of the Agreement on Subsidies  and Countervailing Measures?  
Reply  
Over the past year, China has been striving to update its subsidies notification to the period 
2015-2016 as required by the SCM Committee. Presently, the onerous work is coming to an end. 
China will try to submit a new n otification covering both the central and local governments at the 
time of this TPR.  WT/TPR/M/3 75/Add.1  
 
- 102 - 
 
  Question  
b. When will China notify all subsidy programme s, including in industries such as fishing (see 
G/SCM/Q2/CHN/59) and steel (see G/SCM/Q2/CHN/70)?  
Reply  
China has made  clarifications on the issues raised by the United States at regular meetings of the 
SCM Committee. The information verified and confirmed by far involving fishery and steel industries 
will be reflected in  China's subsidy notifications of the central and s ub-central governments to be 
submitted. China submits the notifications in accordance with specific policies, while information 
provided by the United States is collected on an enterprise -by-enterprise basis. It is therefore difficult 
to match. In other wo rds, one enterprise may receive various subsidies according to different subsidy 
policies or programme s, and one single subsidy programme  may also benefit many different 
enterprises. As far as China sees, many subsidies received by steel enterprises are ac tually from 
non-specific programmes such as funds for prevention and control of atmospheric pollution. However, 
for purpose of transparency, China has included such non -specific programmes in the subsidy 
notifications so that members may understand better that subsidies received by steel sector are 
largely those programmes for pollution control and environment protection which are provided to all 
sectors rather than only to the steel sec tor. 
Page 69, paragraph 3.108  
Question  
The Secretariat's  report states that China refused to provide any information to the Secretariat on 
subsidy programme s that had not previously been notified by China to the Committee on Subsidies 
and Countervailing Measures pursuant to Article 25 of the Agreement on Subsid ies and 
Countervailing Measures, even though the Secretariat's  report notes that other subsidy programme s 
are in place to support different industries and attract foreign investment. Can China explain why it 
refused to provide this information to the Secre tariat?  
Reply  
China did not refuse to provide the Secretariat with information on its subsidy programme s. At the 
time of the Secretariat's  visit, China was still preparing the notification of subsidies at central and 
local government levels (2015 -2016). As  information was still being collected and verified, China 
was unable to provide the Secretariat with the information . 
Page 69, paragraph 3.109  
Question  
The Secretariat's  report refers to financial subsidies provided to projects in the photovoltaic industr y 
by more than 15 sub -central governments in China. Please provide detailed information on these 
subsidies. Please also explain why China did not include any of these subsides in its notification of 
sub-central government subsidy programme s under Article 2 5 of the Agreement on Subsidies and 
Countervailing Measures.  
Reply  
At the regular meeting of the SCM Committee, China has made clarifications on the issues raised by 
the US Information verified will be reflected in the notification of subsidies to be submi tted by China. 
China's  notification will be updated to the years of 2015 -2016. China will also continue its efforts in 
respect of the notification obligation under the SCM agreement.  
Page 69, paragraph 3.113  
The Secretariat's  report states that, during the review period, China continued to provide financial 
support to the fisheries sector and that outlays appear to be considerable. It cites an academic 
source estimating that China's  annual expenditure for fisheries subsidies w as RMB 40.4 billion in WT/TPR/M/3 75/Add.1  
 
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  2013. However, it notes that official expenditure figures for these subsidies programme s were not 
made available to the Secretariat by the Chinese government. The United States notes that this lack 
of cooperation and transparency on China 's part is not new. Despite multiple international 
statements calling for increased transparency of fisheries subsidies, including most recently the 2017 
MC11 Ministerial Decision re -committing Members to implementation of existing notification 
obliga tions under Article 25.3 of the Agreement on Subsidies and Countervailing Measures, and 
repeated promises by China to provide relevant information, China has only notified three marginal 
fishery subsidy programme s in its 17 years of WTO Membership. As is w ell-documented, in 
connection with the 2012 trade policy review of China, the United States cited a 2003 study with a 
similarly large estimate of the total value of support provided by China; China responded that it 
would provide a fisheries subsidies noti fication after agreement on strengthened notification 
requirements in the context of the Doha Round.  
In connection with the 2014 trade policy review of China, the Secretariat's  report uncovered 
33 fisheries subsidy measures; China responded that it needed  more time to respond "given the 
ambiguous descriptions of support projects for fisheries, various sources of information, and 
unidentified competent authorities, executors and scope of these support projects. " In April 2016, 
the United States counter -notified 44 fisheries subsidies measures under Article 25.10 of the 
Agreement on Subsidies and Countervailing Measures; China responded that it had notified three of 
these measures and continued to argue for more time.  
In July 2016, China submitted its first -ever sub -central government subsidy notification, yet no 
fisheries subsidies were included, even though the majority of the measures uncovered by the 
Secretariat and counter -notified by the United States were sub -central government measures. In 
connection with the 2016 trade policy review of China, the United States again asked China when it 
would notify all of its fisheries subsidies; China responded that it "is reviewing fishery subsidy and 
will deliberate on the notification issue based on the review res ults and the working progress. " 
Question  
a. China is the world's  largest wild fish harvester, and mounting evidence indicates that its 
fisheries subsidies programme s are substantial. Given China 's longstanding obligation to notify all 
of its fisheries subsidies under Article 25 of the Agreement  on Subsidies and Countervailing Measures , 
when will China finally provide a full accounting of all of its fisheries subsidies at all levels of 
government?  
Reply  
At the regular meeting of the SCM Committee, China has made clarifications on the issues raised by 
the US Information verified will be reflected in the notification of subsidies to be submitted by China. 
China's  notification will be updated to the years of 2015 -2016. China will also continue its efforts in  
respect of the notification obligation under the SCM agreement.  
Question   
b. What steps is China taking to be able to meet its commitment under Sustainable Development 
Goal 14.6 to prohibit, by 2020, fisheries subsidies that contribute to overcapacity and ov erfishing, 
eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing, and refrain 
from introducing new such subsidies?  
Reply  
China has the largest number of fishing boats and fishermen in the world. Sustainable development 
of the fishing industry is of great significance to the economic development, social and fishing 
industry stability, poverty reduction and building of a moderately prosperous society in all respects 
across the coastal areas of the country. China is conductin g effective cooperation with the 
international community through bilateral mechanisms, regional fishery governing bodies and the 
FAO to promote the protection, management and reasonable exploitation of fishery resources, 
thereby effectively containing ille gal fishing and realizing sustainable fishery.  WT/TPR/M/3 75/Add.1  
 
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  Question  
c. What steps is China taking or planning to take to stop subsidizing vessels engaged in IUU 
fishing?  
Reply  
China undertakes relevant work according to provisions of the Fishery Law of the People 's Republic 
of China.  
Page 70, T ables 3.13 and 3.14  
Question  
Table 3.13 lists support measures to projects for industrial transformation and upgrading. Table 3.14 
lists various support measures in 2015 -2017. Can China confirm that the support measures list ed in 
these tables will be included in its next subsidy notification under Article 25 of the Agreement on 
Subsidies and Countervailing Measures? If not, why not?  
Reply  
At the regular meeting of the SCM Committee, China has made clarifications on the issues  raised by 
the US Information verified will be reflected in the notification of subsidies to be submitted by China. 
China's  notification will be updated to the years of 2015 -2016. China will also continue its efforts in 
respect of the notification obligati on under the SCM agreement.  
Page 70, T able 3.14  
Table 3.14 lists support measures specific to new energy vehicles (NEVs), including the Notice on 
2016-2020 Fiscal Support Policies for Promoting Use of New Energy Vehicles, Cai Jian [2015] No.  134, 
issued on  22 April 2015. This table does not also list another NEV support measure, the Notice on 
Adjusting and Optimizing Fiscal Subsidy Policies for Promoting Use of New Energy Vehicles, Cai Jian 
[2018] No. 18, issued on 12 February 2018. This "promoted use " subsidy programme , originally 
introduced in or about 2010, currently is effective through 2020, unless it is extended yet again. 
Under this programme , China disburses subsidies to certain NEV manufacturers in connection with 
their sales of NEVs manufactur ed in China.  
Question  
a. It appears subsidies under this programme  are not available in connection with the purchase 
of imported NEVs. Is this understanding correct?  
Reply  
Please refer to the Catalogue.  
Question  
b. Is inclusion of an NEV manufacturers NEV model in the Catalogue of Promoted Use NEV Models 
an eligibility requirement for the subsidies provided under the promoted use subsidy programme ? If 
so, is inclusion in this Catalogue the only  basis for such eligibility? Please specify any additional 
eligibility  requirements, if applicable?  
Reply   
Enterprises listed in the Catalogue are eligible.  WT/TPR/M/3 75/Add.1  
 
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  Question  
c. It appears that NEV models produced by Sino -foreign joint ventures in China account for only 
a small percentage of the NEV models listed in China's  Catalogue of Promoted Use NEV Models. How 
many NEV models produced by Sino -foreign joint ventures in China have been the subject of 
applications for inclusion in this Catalogue? How many NEV models produced by Sino -foreign joint 
ventures in China have bee n included in this Catalogue?  
Reply  
Please refer to the released Catalogue.  
Question  
d. How are enterprises that unsuccessfully applied for inclusion of an NEV model in the Catalogue 
of Promoted Use NEV Models notified of the rejection of their applications? Do the regulatory 
authorities provide a written explanation of the reasons for the rejection of those enterprises 
applications? If not, why not?  
Reply  
China studies and releases key technical thresholds based on various factors such as the progress 
of NEV technology, development of the industry as well as its application and promotion.  
Question  
e. What are the most common reasons for rejecting an enterprises application for inclusion of an 
NEV model in the Catalogue of Promoted Use NEV Models?  
Reply  
Failure to  meet relevant technical thresholds.  
Question  
f. A Bloomberg article dated 1 February 2018 Bloomberg and a Financial Times article dated 
26 April 2018 quote the chief executive of Volkswagen Group China as indicating that subsidies 
under the promoted use programme  are only available in connection with purchases of NEV models 
using Chinese -made batteries. Is that correct? Does China apply this limitation pursuant to a formal, 
published measure or an unpublished measure?  
Reply  
We are not sure about the informati on source.  
Page 70, T able 3.14  
Table 3.14 lists support measures specific to new energy vehicles (NEVs) . This table does not list 
China's  NEV licen ce plate programme s, introduced in or about 2016, which have established special 
licence plates for NEVs that  confer a number of benefits for vehicle owners, such as under the Pilot 
Program for Special License Plates for New Energy Vehicles to Start in Five Cities, issued by the 
Ministry of Public Security on 21 November 2016, and a document entitled "Ministry of  Public Security 
Will Progressively Promote Special License Plates for New Energy Vehicles Nation -Wide, " issued by 
the Ministry of Public Security on 13 August 2017.  
Question  
a. Based on the Ministry of Public Security's  explanation in a document entitled "Relevant 
Responsible Figure at the Ministry of Public Security Traffic Management Bureau Explains the Pilot 
New Energy Vehicle License Plate, " issued 25 November 2016, that imported vehicles are subject to WT/TPR/M/3 75/Add.1  
 
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  a different eligibility mechanism for NEV licen ce plates than domestically manufactured vehicles, 
with imported vehicles needing to be individually certified as NEVs upon import on the Imported 
Motor Vehicle Inspection Form, while domestically manufactured vehicles must be listed in the 
Catalogue of Promo ted Use NEV Models. Can China confirm that imported vehicles are not eligible 
for inclusion in the Catalogue of Promoted Use NEV Models? If so, can China clarify the criteria and 
process by which imported vehicles are certified as NEVs on the Imported Moto r Vehicle Inspection 
Form?  
Reply  
The bases on which to identify imported new energy vehicles include the Catalogue of Imported New 
Energy Vehicles approved by the commodity inspection department of customs (the Inspection 
Supervision and Administration Dep artment of the former State Administration of Quality 
Supervision, Inspection and Quarantine) and the designation of new energy vehicles on the Imported 
Motor Vehicle Inspection Form issued by the port commodity inspection authority.  
Question  
b. Does China co llect data on the number of owners of domestically produced NEVs, NEVs 
produced by Sino -foreign joint ventures and imported vehicles who have applied for NEV licen ce 
plates? If so, please provide that data for each category for 2016 and 2017.  
Reply  
The roa d and transport department of the public security authority has piloted the use of special 
licence plates for new energy vehicles (including domestic and imported) since 1 December  2016 
and rolled it out across the country in the first half of 2018. For al l new energy vehicles manufactured 
by Chinese or sino -foreign joint ventures and those imported, a special licen ce plate will be issued 
when they are registered. New energy vehicles manufactured by sino -foreign joint ventures are seen 
as home -made NEVs for  the registration purpose. So it is impossible to provide broken -down 
information on the number of owners of NEVs made by Chinese or sino -foreign joint ventures or 
imported from foreign countries . 
Question  
c. How are vehicle owners whose applications for NEV licence plates are rejected notified of the 
rejection? Does the Ministry of Public Security or some other administering authority provide written 
notice explaining the reason(s) for the rejection? What are the most common reasons for a rejection 
of an application for an NEV licen ce plate . 
Reply  
In registering new motor vehicles, the road and transport department of the public security authority 
will inform the owners who apply for the NEV licen ce plates of the reasons why they are not eligible 
for that.  With respect to domestically manufactured vehicles that are rejected, the owners will be 
informed of the Announcement on Road Motor Vehicle Manufacturers and Products to which their 
vehicles correspond or of the fact that the certificates of conformity  of their vehicles have no such 
note as This vehicle is of the NEV category and therefore denied the special licen ce plates for NEVs. 
In this case, the owners can consult with the manufacturer of their vehicles if they have any query 
about that. With respect to imported vehicles denied the issuance of the NEV special licen ce plate, 
the owners will be informed of the fact that their vehicles are not on the Catalogue of Imported New 
Energy Vehicles approved by the commodity inspection department of customs or th at the Motor 
Vehicle Inspection Form of their vehicles has no such note as This vehicle is of the NEV category. 
They can consult with the dealer of their imported vehicles if they have any query about that.  
Page 70, T able 3.14  
Table 3.14 includes a measure  that provides for exemptions from purchase taxes applicable to NEVs, 
i.e., the Announcement Vehicle Purchase Tax Exemption, Cai Jian [2017] No. 172, issued on 
26 December 2017. The initial 2014 version of this measure and the updated 2017 measure govern 
NEV purchase tax exemptions during the periods 2014 -2017 and 2018 -2020, respectively, both WT/TPR/M/3 75/Add.1  
 
- 107 - 
 
  indicate that domestic Chinese NEV manufacturing enterprises and imported NEV dealers may apply 
for purchase tax exemptions.  
Question  
a. It appears that importers of NEVs and Sino -foreign joint ventures producing NEVs account for 
only a small percentage of the automakers that qualify for NEV purchase tax exemptions. How many 
NEV importers and Sino -foreign joint ventures have applied for purchase tax exemptions since 20 14? 
How many of them received purchase tax exemptions?  
Reply  
In December 2017, the Ministry of Finance, in collaboration with the State Administration of Taxation, 
the Ministry of Industry and Information Technology and the Ministry of Science and Technolo gy, 
made an Announcement on Exempting New Energy Vehicles of the Vehicle Purchase Tax ([2017] 
No. 172), specifying the conditions for tax exemption for NEVs. Those conditions are applicable to 
both home -made and imported cars, hence the absence of differen t policies in that regard.  
Question  
b. How were enterprises that unsuccessfully applied for purchase tax exemptions notified of the 
rejection of their applications? Did the administering authorities provide written notice explaining 
the reasons for the rejection of those enterprises ' applications? If not, why not?   
Reply  
The Ministry of Industry and Information Technology and the State Administration of Taxation will 
organize expert review over the NEV models. Those that have passed the review are listed  in the 
Catalogue of NEV Models Exempted from the Vehicle Purchase Tax.  
Question   
c. What are the most common reasons for rejecting applications for purchase tax exemptions?   
Reply  
According to currently effective policies, entities to enjoy the vehicle purchase tax exemption policy 
for NEVs must comply with relevant provisions of the Announcement on Exempting New Energy 
Vehicles from the Vehicle Purchase Tax ([2017] No.172).  
Question   
a. Can China provide the amount of revenue forgone as a result of purchas e tax exemptions 
since 2014?   
Reply  
No statistical data on such tax reduction/exemption are available now.  
3.3.2 Standards and other technical requirements , 3.3.2.1 Overview , page 73, T able 3.15  
Table 3.15 indicates that China approved 3,811 national standards and 3,990 sectoral standards 
in 2017. 
Question  
a. How many of the national and sectoral standards approved by China in 2017 solely applied to 
imported goods?  WT/TPR/M/3 75/Add.1  
 
- 108 - 
 
  Reply  
 
A total of 11 standards have been approved for that purpose.  
 Names of Standards  Reference Number of 
Standards  Time of Approval  
Environmental protection control standard for imported 
solid wastes as raw materials  smelt s lags GB 16487.2 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw material s wood and wood articles 
wastes  GB 16487.3 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste and scrap of paper or 
paperboard  GB 16487.4 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste and scrap of iron and 
steel GB 16487.6 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste of ferrous metals  GB 16487.7 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste electric motors  GB 16487.8 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste cables and wires  GB 16487.9 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  metal and electric appliance 
scraps  GB 6487.10 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  vessels and other flo ating 
structures for breaking up  GB 6487.11 -2017 2017/12/29  
Environmental protection control standard for imported 
solid wastes as raw materials  waste and scrap of plastics  GB 6487.12 -2017 2017/12/29  
Environmental protection control standard for imported  
solid wastes as raw materials  compressed piece of scrap 
automobile  GB 6487.13 -2017 2017/12/29  
 
Question  
 
b. In 2017, China notified 11 standards to the TBT Committee entitled Environmental Protection 
Control Standard for Imported Solid Wastes as Raw Materials (G/TBT/N/CHN/1224 -1234). These 
standards apply only to imported goods. Please identify the standards tha t apply to each of the 
corresponding domestic goods. Are these standards less restrictive than the standards that apply to 
the imported goods? If so, why?  
 
Reply   
 
Revising the Environmental Protection Control Standard for Imported Solid Wastes as Raw Materials  
is one of a series of measures adopted by the Chinese government to strengthen the prevention and 
control of solid waste pollution. It aims at minimizing the environmental pollution and human health 
risks caused by imported solid waste. This seri es of standards are border measures are applicable 
to the import, and do not affect the domestic sales or disposal of legally imported solid waste. China 
strictly abides by the principle of national treatment, treats the already imported and domestically 
produced solid wastes equally, and implements unified environmental protection requirements and 
administration for disposal.  
 
Page 73, paragraph 3.121  
Question  
In 2018, the National People 's Congress dismantled the State Administration of Work Safety (SAWS) , 
which oversaw occupational safety and health. The United States notes that SAWS had played an 
important role in improving China's  work safety record and increased worker participation. Which 
government agency now oversees occupational safety and health ? Does this change signal that 
China is pursuing a new regulatory approach to labour safety and to the development of technical 
regulations relating to labour conditions? Please explain.  WT/TPR/M/3 75/Add.1  
 
- 109 - 
 
  Reply  
The National Health Commission of the People 's Republic of China is now responsible for this matter.  
Page 74, p aragraph 3.124   
Members have raised serious concerns about China's  numerous draft and final cybersecurity 
measures several times in the WTO Committee on Technical Barriers to Trade (TBT Committee), 
among other venues, since 2016.  
Question  
a. Among other things, the United States is concerned that many of the measures appear to 
require a process for conformity assessment of "secure and controllable " products. Can China explain 
how this conformity assessment process will be consistent with China's  commitments under the 
Agreement on Technical Barriers to Trade (TBT Agreement)? Can China clarify whether secure and 
controllable requires only domestic tec hnology?  
 
Reply  
 
Law on Cybersecurity of the People 's Republic of China  puts forward requirements for promoting the 
cyber products and services that are secure and credible, rather than secure and controllable. 
According to our understanding, secure and cr edible includes at least the following three aspects: 
First, product or service providers should not illegally obtain important data of the users and damage 
their right to control their own data by taking advantage of providing products or services; Second , 
product or service providers should not illegally control and manipulate the users devices through 
the internet, which impairs the users control over the devices owned and used by them; Third, 
product and service providers should not profiteer and monopo lize by taking advantage of the users 
dependence on the products and services, including the cessation of providing reasonable security 
and technical support, which forces the users to upgrade. There is no national or regional difference 
in terms of secure  and credible , and both domestic and foreign enterprises and their products should 
meet the secure and credible  requirements.  
 
Question  
 
b. We understand China will promulgate additional sector -specific implementing measures while 
not having notified existing draft sector -specific rules to this Committee, such as aviation measures 
and Internet  of vehicle measures. Can China explain how it plan s to follow its TBT Agreement 
transparency commitments in the development of these implementing measures?   
 
Reply  
 
The Guide on Network Security Protection of Internet of Vehicles  is voluntary. According to the TBT 
Agreement transparency principle, there i s no need to notify the WTO. The Civil Aviation Network 
Security Information Regulation  is still being formulated.  
 
3.3.3 Sanitary and phytosanitary requirements , page 76, paragraph 3.138  
For several years,  China has maintained that its regulatory authorities will use science -based 
assessments in evaluating the safety of agricultural biotechnology products and that it will base its 
decision on an application for approval of a particular biotechnology product solely on its intended 
use, i.e., for food, feed and processing. However, in conducting their review and approval process, 
China's  regulatory authorities continue to ask questions that are unrelated to the intended use of 
the product. China's  regulatory au thorities also regularly exceed by years the 270 -day time deadline 
set forth in the regulations governing the review and approval of agricultural biotechnology product 
applications. Currently, the ten applications that have made it to the final stage of China's review 
and approval process have been pending for an average of 58 months.  WT/TPR/M/3 75/Add.1  
 
- 110 - 
 
  Question  
a. When will China limit its evaluation of agricultural biotechnology products to science -based 
assessments?  
Reply  
China 's review and approval processes of biotechnology  products are law-based, scientific, 
standardized and transparent. Based on the international practices and national conditions, China 
has established a set of strict and standardized agricultural GMOs safety assessment systems. China 
has formulated the Guidelines for the Safety Assessment of Genetically Modified Plants , Guidelines 
for the Safety Assessment of Genetically Modified Animals  and Guidelines for the Safety Assessment 
of Genetically Modified Microorganisms for Animals . China has also issued more than 200 safety 
measures on safety assessment, testing and regulation of agricultural GMOs, covering food safety, 
environmental safety, product composition, safety control measures, facility conditions, standard 
substance prepa ration, entry and exit inspection, etc. China follows the scientific principles of 
comparative analysis, prevention , case-by-case study, science base and transparency and familiarity. 
China's  agricultural genetically modified safety assessment is scientifi c and rigorous.  
Question  
b. When will China base its evaluations of the safety of agricultural biotechnology products solely 
on its intended use?   
Reply  
China 's review and approval of biotechnology products have always adhered to the principles of 
legality, science -based, standardization and transparency. China conducts safety assessment strictly 
in accordance with the laws and regulations. Safety evaluation is required for research, testing, 
production, processi ng, operation and import of agricultural GMOs in China, and all the safety 
evaluations are carried out according to the intended use.  
Safety evaluation of biotechnology products belongs to risk assessment. The safety assessment 
factors and safety precautio ns of agricultural GMOs as raw materials for processing are related to 
the potential risks when import, transport and process the products. Agricultural GMOs often have 
life activity, and these products may be unintentionally released into the environment during import 
transportation, processing, etc. Therefore, it is necessary to conduct an environmental  safety 
assessment for biotechnology products for import purposes to ensure adequate scientific evidence  
to prove the environmental safety of the imported GMOs.  
Question  
c. What steps is China taking to ensure that its regulatory authorities adhere to the 27 -day 
regulatory time deadline ? 
 
Reply  
 
China 's GMO safety regulatory authorities strictly follow the regulations on the approval and 
supervision progress of  agricultural GMOs, and strictly abide by the time limit of approval.  
 
Page 76, paragraph 3.138   
The Secretariat's  report refers to complaints raised by Members regarding China 's avian influenza -
related import restrictions. China continues to impose an unwarranted and unscientific avian 
influenza -related import ban on US poultry due to an outbreak of high pathogenicity avian influenza 
(HPAI), which has been eliminated in the Unit ed States. When will China lift this import ban?  
Reply  
China and the US have conducted technical exchanges on the lifting of the ban on avian influenza -
related import from the US. In July 2017, the Chinese expert team made on -the-spot visits to the WT/TPR/M/3 75/Add.1  
 
- 111 - 
 
  US. In September 2017, China gave feedback to the US about the problems discovered during the 
inspection. It is hoped that the technical departments of both sides will continue to strengthen 
technical exchanges.  
Page 76, paragraph 3.138  
The Secretariat's  report r efers to complaints raised by Members regarding China's  measures on 
bovine meat.  
Question  
a. The United States is recognized as negligible  risk for bovine spongiform encephalopathy (BSE) 
by the World Organization for Animal Health (OIE). However, China maintains age and product scope 
restrictions that do not comport with the United States negligible risk BSE status. Why does China 
maintain t hese restrictions when international guidance indicates that they are not necessary given 
the United States BSE status? When will China remove these restrictions?  
 
b. China prohibits US beef and beef products exports in which veterinary drugs, including beta -
agonists and hormones, are detected. This prohibition is inconsistent with Codex Alimentarius 
guidelines. Given the desirability of basing SPS measures on international standards, why does China 
refuse to base its position regarding veterinary drugs on Cod ex Alimentarius guidelines? When will 
China remove these restrictions?  
 
Reply to a-b 
China is willing to maintain technical communication with the US on lifting the ban on importing BSB 
related products. If the US intends to export products within the curr ent ban scope to China, it is 
suggested to make the application to the Chinese side. China will conduct risk evaluation based on 
the principle of science base and transparency. If the risk is acceptable, China will lift the relevant 
ban. 
Page 76, paragraph  3.140  
The Secretariat's  report discusses China's  Food Safety Law. In June 2017, China issued the draft 
Measures for the Administration of Certificates Attached to Foods Exported to China as part of its 
implementation of the Food Safety Law.  
Questions  
a. Can China provide a scientific rationale for requiring food safety certificates for processed, 
shelf-stable foods that ordinarily pose little food safety risk?  
b. How does China justify requiring food safety certificates for such low -risk foods in light of 
Codex Alimentarius standards and guidelines?  
c. Does China intend to apply this same certificate requirement to domestically produced 
processed, shelf -stable foods? If not, why not?  
 
Reply to a -c  
 
The Chinese government attaches great importance to food safety. W ith the increasing of food 
production and processing chains internationalization, factors of food safety risks are becoming more 
and more complex. Even the  Codex Alimentarius Commission hasn't  yet provided an authoritative  
interpretation for defining the food risk levels.  
 
In order to ensure the safety of imported food and improve the tracing system of imported food, the 
former General Administration of Quality Supervision, Inspection and Quarantine drafted the 
Measures for the Administration of Certificate s Attached to Foods Exported to China  (hereinafter 
referred to as the Measures) in 2017, and made the notification to the WTO in June 2017. After 
sending the notice, China attached great importance to the comments f rom all members. In 
particular, China not ed that the differences in the regulatory systems of the exporting WT/TPR/M/3 75/Add.1  
 
- 112 - 
 
  countries/regions require multi -agencies coordination for the issuing procedures. In order to provide 
sufficient time to the exporters, China decided to postpone the proposed implementation  date of the 
Measures from October 2017 to October 2019, and notified this decision to the WTO in 
September  2017.  
 
In March 2018, the First Session of the 13th National People 's Congress of China reviewed and 
approved the institutional reform plan of the State Council. The session made it clear that the 
responsibilities and divisions for the entry and exit inspection and quarantine of the General 
Administration of Quality Superv ision, Inspection and Quarantine shall be included in the General 
Administration of Customs. The Measures hasn't  been officially announced. China welcomes all 
members to continue to put forward useful suggestions and recommendations on the 
implementation o f the Measures, so as to ensure the steady advancement of such measures while 
avoiding adverse effects on bilateral trade.  
 
3.3.4.1 Competition policy , 3.3.4.1.1 Legislative and institutional framework , page 77, 
paragraph 3.145   
Question  
The Secretariat's  report notes that the Anti -Monopoly Law stipulates that state -owned enterprises 
with a controlling stake in industries that "affect the lifeline of the national economy and are of 
importance to national security " will have their legitimate business intere sts protected by the state. 
Which industries qualify for this protection? What specific protection is afforded to these industries?  
Reply  
The Anti -Monopoly Law did not clarify the specific content of industries  concerning the lifeline of 
national  economy and national security, while the concept of this term is defined in relevant opinions 
of the Chinese government on strengthening the supervision of state -owned capitals. In law 
enforcement practices, Chinese anti -monopoly authorities treat all dom estic and foreign enterprises, 
including state -owned enterprises equally without discrimination. Article 7 of the Anti -Monopoly Law 
stipulates that the business operators in the industries controlled by the State -owned economy and 
concerning the lifeline o f national economy and national security or the industries implementing 
exclusive operation and sales according to law shall lawfully operate, be honest and faithful, be 
strictly self -disciplined, accept social supervision, shall not damage the interests o f consumers by 
virtue of their dominant or exclusive positions, and Article 17 contains prohibitive provisions on 
relevant abusive conducts of enterprises with a dominant market position. Therefore, the enterprises 
with a dominant market position in the in dustries controlled by the State -owned economy and 
concerning the lifeline of national  economy and national security or the industries implementing 
exclusive operation and sales according to law also shall not abuse their dominant market positions, 
or elim inate or restrict market competition.  
Page  77, paragraph 3.145   
According to Chinese statistics, between 2008 and 2016, China's  Ministry of Commerce (MOFCOM) 
either blocked or conditionally approved 32 transactions over competition concerns; only one of 
those 32 transactions involved a state -owned enterprise. During the same period, the National 
Development and Reform Commission (NDRC) imposed fines on more than 60 private enterprises 
under its authority to investigate price -based, anti -competitive behaviou r, while imposing minimal 
fines on two state -owned liquor companies, two state -owned telecommunications companies, and 
four subsidiaries of state -owned power companies. In addition, during this same period, the State 
Administration of Industry and Commerce  (SAIC) did not initiate enforcement actions against any 
national -level state -owned enterprises for non -price-based, anticompetitive behaviour . 
Question  
a. Given the size of the economic footprint of China's  state-owned enterprises, please explain 
why enforce ment of the Anti -Monopoly Law against them has been so minimal.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China 's anti -monopoly review has treated domestic and foreign investments equally so as to create 
a fair and transparent environment for law enforcement and a market environment for fair  
competition. The enterprises involved in the review include both domestic and foreign -funded 
enterprises, and both private and state -owned enterprises. In 2017, among the concluded cases of 
concentration  of undertakings, 85 cases (nearly 30%) involved sta te-owned enterprises. Among the 
monopoly cases investigated by the industrial and commercial authorities, the number of cases 
involving state -owned enterprises was the highest (41.07% of all cases), and cases involving 
foreign -funded enterprises only accou nted for 10.71%.  
Question  
b. Are Anti -Monopoly Law regulators normally outranked in the Communist Party structure by 
the heads of the state -owned enterprises that they can investigate? If so, please describe the impact 
of this situation on their ability to en force the Anti -Monopoly Law against state -owned enterprises.  
Reply  
Anti-monopoly enforcement authorities exercise the power of administrative penalty according to 
law, and everyone is equal before the law. There is no correlation between the positions of the heads 
of Chinese anti -monopoly enforcement authorities and the heads of the state -owned enterprises, 
and the law enforcement ability of the authorities is not affected.  
Page 78, paragraph 3.149  
The Secretariat's  report discusses the responsibilities of  China's  various Anti -Monopoly Law 
regulators. In 2018, the National People 's Congress adjusted these responsibilities when it created 
the State Administration for Market Regulation (SAMR).  
Question  
a. Please explain why the Chinese government replaced three State Council -level ministries 
(MOFCOM, NDRC and SAIC) with an administrative department (SAMR) for purposes of Anti -
Monopoly Law enforcement. Will other Chinese agencies take Anti -Monopoly Law enforcement 
seriously if SAMR is perceived as a weaker agency?  
Reply  
In 2018, in accordance with the requirements of the State Councils institutional reform on 
strengthening and optimizing the government's  anti-monopoly functions, the responsibilities of 
National Development and Reform Commission in price supervision  and inspection and anti -
monopoly law enforcement, the responsibilities of the Ministry of Commerce in anti -monopoly law 
enforcement over concentration  of undertakings and the responsibilities of the Office of the 
Anti-monopoly Committee of the State Counc il have been integrated into State Administration for 
Market Regulation which will be in charge of uniform anti -monopoly law enforcement. This 
institutional reform is conducive to promoting the unity and authority of anti -monopoly law 
enforcement. State Ad ministration for Market Regulation will strengthen anti -monopoly law 
enforcement, protect fair market competition, safeguard the rights and interests of consumer , and 
promote sustained and healthy economic development.  
Question  
b. Prior to this reorganization, MOFCOM was required to consult with other government agencies 
when reviewing M&A transactions. This requirement operated to allow these agencies to introduce 
non-competition -related concerns into MOFCOMs review. Please indicate whether SAMR  similarly will 
be required to consult with other government agencies when reviewing M&A transactions.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China 's anti -monopoly enforcement authorities seeking the opinions of relevant departments on 
matters related to the review over concentration  of undertakings is a usual practice of the 
competition law enforcement agencies in various countries around the world. Chinese anti -monopoly 
enforcement authorities have not added non -competitive concerns in the review because of the 
opinions . 
Question  
c. Will SA MR only oversee Anti -Monopoly Law enforcement, or will it also oversee the 
development of competition policy?  
Reply  
According to the national institutional reform plan, State Administration for Market Regulation will 
uniformly undertake anti -monopoly law e nforcement, supervise administrative monopoly according 
to law, and take the lead in conducting fair competition review. According to the Anti -Monopoly Law, 
the Anti -monopoly Committee of the State Council is responsible for studying and formulating 
releva nt competition policies.  
Page 78, paragraph 3.150  
The Secretariat's  report notes that the State Council Opinions on Establishing a Fair Competition 
Review System require all policies and measures related to market economic activities to go through 
fair com petition review before being issued.  
Questions  
a. How does this review mechanism apply to industrial plans like Made in China 2025, which aim 
to enhance the Chinese governments involvement in certain industries economic activities in order 
to influence market  outcomes?  
b. What restrictions on competition are allowed under this review mechanism ? 
Reply  to a-b 
In accordance with the relevant requirements on the system of fair competition review, for the 
administrative regulations and other policy measures formulated  by the State Council and local 
regulations, the drafting departments shall, in the drafting process, conduct self -review against the 
review criteria. Those having not received self -review shall not be submitted for review. The 
document Guiding Opinions of  the State Council on Establishing a Review System for Fair 
Competition in the Course of Building the Market System Guo Fa [2016] No. 34  stipulates that the 
policy measures that eliminate or restrict competition, under the following circumstances, may be 
implemented with certain conditions: 1. to protect national economic safety, cultural safety or 
related to national defence  construction; 2. to achieve social security goals such as poverty 
alleviation and development, disaster relief and assistance; 3. to achieve public interest goals such 
as saving energy and resources and protecting the environment; and 4. other circumstances 
provided by laws and regulations. Meanwhile, the policy -making organs shall explain the goals and 
necessity of relevant policy meas ures, and ensure that the policies will not significantly eliminate or 
restrict market competition, as well as the duration of such policies. The policy -making organs shall 
evaluate the implementation effects of relevant policies every year. When the imple mentation period 
expires or if the expected effects are not achieved, relevant policy measures shall be terminated or 
revised in a timely manner.  
3.3.4.1.6  Enforcement , page 83, paragraph 3.167  
Question  
The Secretariat's  report discusses China's  record of Anti-Monopoly Law enforcement.  Please explain 
whether or how SAMR will enforce the Anti -Monopoly Law against Chinese enterprises in industries WT/TPR/M/3 75/Add.1  
 
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  promoted and supported by Made in China 2025 and other industrial plans, given that these 
industrial plans are cl early intended to favour  Chinese enterprises and to ensure that their products 
and services displace the products and services of foreign enterprises in China's  market.  
Reply   
China 's Anti -Monopoly Law is designed to maintain market competition, promote and safeguard the 
legitimate rights of all enterprises regardless of their types of ownership or size, including 
state-owned enterprises, private enterprises and foreign -invested enterprises, enable all types of 
enterprises to engage in fair competition in  the market economy, and standardize the market order. 
Under the regulation of this law, the Chinese market will create a better market competition 
environment for Chinese and foreign companies, which will facilitate the investment  of foreign 
companies in China, rather than negatively affecting China's  policies of attracting and using foreign 
capital. The enforcement of this law is the responsibility of the State Market Regulatory 
Administration, and this is also true for the implementation of the Made in C hina 2025 and other 
industrial plans. Meanwhile, anti -monopoly law enforcement itself is a part of the implementation of 
the Made in China 2025. The Made in China 2025 states that: to further break down various forms 
of industry monopoly, cancel unreasonab le restrictions on the non -public sectors of the economy, 
strictly punish market monopoly and unfair competition, and create a good production and operation 
environment for enterprises.  
3.3.5 State trading, state -owned enterprises, and privatization , page 87, paragraph 3.182  
Question  
Please provide the justification for the Chinese government not reporting data on the magnitude, 
frequency and terms and conditions of capital injections into state -owned enterprises from all state 
and state -linked entities at  both the central and sub -central government level.  
Reply  
According to relevant requirements of the Government Information Disclosure Regulations , the 
information related to the central state -owned capital operation budget and actual budget is 
disclosed on  the website of the Ministry of Finance, including the capital injection of state -owned 
enterprises. Relevant information can be found on relevant websites.  
Page 87, paragraph 3.184   
The Secretariat's  report discusses China's  ongoing state -owned enterprise reforms.  
Question  
a. Please explain how the Communist Party of China intends to make state -owned enterprises 
"front-runners " in key sectors, as stated in Premier Li Keqiangs 2017 government work report.  
Reply  
The Chinese govern ment will continue to promote the optimization and restructuring of state -owned 
enterprises and advance the shareholding system reform of the central owned enterprise. China will 
also step up to form an effectively checked and balanced corporate governance  structure and flexible 
and efficient market -oriented operating mechanisms. These efforts aim at continuing to offload the 
burdens and strengthen the wellness of the state and central owned enterprises, increase the core 
competitiveness of the main busines ses and make them become forerunners of high quality 
development.  
Question  
b. Please explain how the Communist Party of China is using mergers and mixed ownership to 
create "national champions ". Please also explain how the Communist Party of China views the 
creation of "national champions " as creating competition at home to benefit domestic consumers, WT/TPR/M/3 75/Add.1  
 
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  given that a number of Chinese state -owned enterprises that had been split up in previous rounds 
of reforms in order to foster competition are now being re -conso lidated.  
Reply  
On the one hand, restructuring of state -owned enterprises follows the laws of market economy and 
the development of enterprises. On the other hand, it adheres to law -based measures to fulfil each 
legal procedure such as anti -monopoly review.  
Question  
c. Please explain why foreign companies involved in joint ventures with Chinese state -owned 
enterprises are being asked by the Communist Party of China to give Communist Party cells a role 
in business management decisions, such as approving decision s regarding investment plans and 
personnel changes.  
Reply  
The Chinese government has always attached great importance to improving property right 
protection system to provide equal protection based on law, and safeguarding the legitimate rights 
and interes ts of the investors of various kinds, including foreign investors, based on law. Grassroots 
organizations of the Communist Party of China in enterprises conduct activities within the scope of 
the Constitution and laws, and support the Board of Directors, t he Board of Supervisors and the 
managerial level to perform their duties according to law.  
Page 88, paragraph 3.186  
Question  
The systemic over -allocation of credit to state -owned enterprises in China is well -researched and 
documented. If this over -allocati on is not policy driven, as the Chinese government maintains, then 
what, in the Chinese government's  view, drives it?  
Reply  
State -owned enterprises, private enterprises, foreign -invested enterprises, Sino -foreign joint 
ventures, etc. are all clients of commercial banks. Under the premise of legal compliance, commercial 
banks independently choose their clients and issue loans according to their strategic planning, 
development orientation, risk pre ference and management ability. Decision -making of the 
comm ercial banks is a market -oriented behaviour  based on their own development.  
Page 88, paragraph 3.187  
Question  
The Secretariat's  report indicates that, by one measurement, Chinese government support for 
state-owned enterprises increased significantly in 2016 as compared to 2014. Does the Chinese 
government agree with this assessment? Is this increased support part of state -owned enterprise 
reform , or do China's  state-owned enterprises need additional government  support because of lower 
cash flows resulting from higher debt burdens, such as with state -owned banks?  
Reply   
From the perspective of state -owned commercial banks, on the one hand, state -owned commercial 
banks have become market competition players after  the reforms of the company  system and 
shareholding system. In terms of access to funds, the rules and laws are the same as 
non-state-owned enterprises, and state -owned commercial banks do not enjoy privileges. On the 
other hand, capital injection from the  government as the shareholder to state -owned commercial 
banks is a market behaviour  that increases the registered capital of the enterprise. It is not the 
special support from the government  due to its state -owned status, thus there is no government 
suppo rt. WT/TPR/M/3 75/Add.1  
 
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  3.3.6 Government procurement , 3.3.6.1 Overview , page 89, T able 3.22  
Question  
Table 3.22 provides the overall level of government procurement in China as reported by the Chinese 
government. Do these statistics include procurement by the Ministry of National Defenc e and the 
People 's Liberation Army?  
Reply  
Military procurement data is  not included.  
3.3.6.2 Legal and institutional framework , page 91, paragraph 3.191  
Question   
Public hospitals dominate China's  medical devices market. In 2016, China had approximately 
27,360  hospitals, of which 23,900 were public hospitals. Because of the way in which the Chinese 
government operates its procurement system for medical devices, foreign medical device companies 
must manufacture their products in China if they want Chinese public hospitals and patients to be 
able to access their medical devices. If China were to change its procurement system and no longer 
require foreign medical device companies to manufacture their products in China, it would  allow 
public hospitals and their patie nts full access to foreign medical devices. Does China have any plans 
to make this change? Why won't  China permit foreign medical device companies to base their 
decisions on the establishment of manufacturing facilities in China solely on health and busine ss 
factors?  
Reply  
Current procurement practices are carried out in accordance with the law.  
Page 91, paragraph 3.196  
The Secretariat's  report states that, "according to relevant legislation ", the Ministry of Finance and 
the finance departments at different  sub-central levels of government are the authorities responsible 
for supervising government procurement at their respective levels, including making relevant 
implementation rules, supervising procurement activities and handling suppliers complaints. Pleas e 
identify "the relevant legislation " that governs these activities.  
Reply  
Government Procurement Law  and its Implementing Regulations.  
3.3.6.3 Procurement methods and procedures , page 91, paragraph 3.197  
The Secretariat's  report notes that purchases of items listed in Centralized Procurement Catalogues 
must be carried out by designated agencies. Further, the Secretariat's  report notes that the 
Government Procurement Law mandates that these agencies procure quality goods an d services at 
a "lower -than-average -for-the-market price ". 
Questions  
a. Please identify all the "designated agencies. " 
b. Please explain how these agencies ensure that goods and services are available at a "lower -
than-average -for-the-market price. " How is it determined that a price is lower than average for the 
market? Does the requirement to procure goods and services at a lower -than-average -for-the-
market price apply only to Centralized Procurement Catalogues?  WT/TPR/M/3 75/Add.1  
 
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  Reply to a -b 
 
Designated agencies in this context may refer to centralized procurement agencies. According to 
Article 12 of the Implementing Regulations of the Government Procurement Law , centralized 
procurement agencies are non -profit legal persons of public institutions established by the people 's 
government at or above the city (with districts) level. The Government Procurement Law does not 
define procuring quality goods and services at a lower than average market price. This provision is 
only a fundamental requirement and applies only to centralized procurement agencies.  
 
Page 92, paragraph 3.198  
 
The Secretariat's  report notes that the Government Procurement Law retained its "buy-domestic " 
provision when it was amended in 2014. The Secretariat's  report also notes  that while there have 
not been official criteria for defining domestic products, the Chinese government maintains that it 
provides non -discriminatory treatment for products manufactured in China regardless of the degree 
of foreign affiliation or ownership of producers. Additionall y, the Secretariat's  report notes that the 
Administrative Measures on Government Procurement of Imported Products require pre -approval for 
procurement of imported products.  
 
Question  
a. Please describe the process through which a procuring entity applies for pre-approval for 
procurement of imported products and the process through which a decision is made to grant or 
deny such a pre -approval request.  
Reply  
 
Please refer to the Administrative Measures for Government Procurement of Imported Products  
(Cai Ku [2007] No. 119).  
 
Question  
b. Please provide data on how frequently pre -approval is requested for imported products and, 
when requested, how frequently pre -approval is granted.  
Reply  
 
There is no such data.  
 
Question  
c. Does China have any plan to develop official criteria for defining a domestic product?   
Reply  
At present, the Ministry of Finance is working with relevant departments to speed up this work and 
strive to introduce it as soon as possible.  
3.3.6.4  Other policy considerations in government procurement , page 95, 
paragraph  3.213  
Question  
China notes that it provides more favourable  treatment to energy -saving products and 
environmentally friendly products in government procurement. What are the criteria by which China 
evaluates the energy -saving and environmental performance characteristics of products to which it 
provides more favourable  treatment in government procurement?  WT/TPR/M/3 75/Add.1  
 
- 119 - 
 
  Reply  
Relevant policies and mechanisms are formulated by the Ministry of Finance and other departments. 
As the yardstick f or green products, China's  environmental labelling  standards (technical 
requirements for environmental labelling  products) focus on the environment related issues of 
consumer goods. With the whole -life-cycle concept as the core, the labelling  standards mak e 
quantitative  assessment covering product eco -design, clean production, pollutant discharge, toxic 
and hazardous substances restriction, advanced manufacturing technology and recycling and reuse. 
The standards cover five major industries, including manufa cturing, construction, accommodation 
and catering and residential services, with more than 300 categories of products such as televisions, 
clothing, automobiles, computers, furniture, doors and windows. Currently, more than 120 standards 
have been issued i n accumulative terms and 99 standards are currently  effective.  
3.3.6.6 Accession to the GPA and other international cooperation , page 96, 
paragraph  3.218  
The Secretariat's  report notes that China initiated Government Procurement Agreement (GPA) 
accession negotiations in 2007 and that China's  most recent revised offer, which was made in 2014, 
retains significant gaps between that offer and what certain GPA Parties expect of China. T he 
Secretariat's  report also notes that China has indicated that it will resume its GPA accession 
negotiations.  
Question  
a. When will China submit another revised offer?  
Reply  
 
The Ministry of Finance is working with relevant parties to comprehensively improv e the offers which 
will be submitted  to the WTO as soon as possible.  
 
Question  
b. What steps will China take in its next revised offer to meet the expectations of the GPA Parties?  
Reply  
China has been committed to joining the GPA as soon as possible. Six offers have been submitted, 
and the range of offer has been expanding. The offers in some areas are at the same level as those 
of the participants. China is comprehensively improving its offers in accordance with the principle of 
reciprocity. It is not eno ugh for China to join the GPA solely by its unilateral efforts, which depends 
to a large extent on the participants positions and expectations.  
3.3.7 Intellectual property rights , 3.3.7.2 Industry property , 3.3.7.2.1 Patents , page 98, 
paragraph 3.227  
Quest ion 
The Secretariat's  report discusses patent applications that were examined by the State Intellectual 
Property Office (SIPO). Please provide data on the number of patent applications that were not 
granted due to materials being considered to have been obtained in violation o f laws and regulations 
during the past two years. In addition, how would China describe its practical experience with this 
provision of China's  patent law?  
Reply  
No specific statistics have been conducted with respect to the application of the article.  WT/TPR/M/3 75/Add.1  
 
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  Page 99, T able 3.26  
Question  
According to Table 3.26, SIPO revised the Provisions on Regulating Patent Application Activities by 
increasing the types of behaviour  classified as non -normal patent applications and strengthening 
non-normal patent application act ion measures. Please explain in more detail the types of behaviour  
now classified as non -normal patent applications and the action  measures undertaken to deal with 
them.  
Reply   
In 2017, SIPO promulgated the Decision of the State Intellectual Property Offic e on Amending the 
Several Provisions on Regulating Patent Application Activities (Order No.75). Major amendments 
intensified the administrative investigation and punishment of non -normal patent application actions 
that are obviously contrary to the princip le of good faith, including various patent applications that 
do not aim at protecting innovation, in which, for example, experimental data and technical effects 
are obviously contrary to common sense, the materials, ingredients, ratios and components in 
technical contents are falsely fabricated, made -up or replaced, and the patterns, shapes, and colours  
of products are casually generated.  
Page 99, T able 3.26   
In June 2018, China 's Supreme People 's Court issued a draft Judicial Interpretation (JI) on Several 
Issues Concerning the Trial of Patent Grant and Invalidation of Administrative Cases. Article 13 of 
the JI implies that supplemental data will be considered only when "the technical results can  be 
confirmed directly and undoubtedly by the person skilled in the art. " The other four largest patent 
offices (in Europe, the United States, South Korea and Japan) do not impose such a heavy burden 
of proof. Those offices accept supplemental data as long  as the to -be-proven technical effect is 
"implied or related to, " "can be inferred from, " "inherently flows " from or is capable of "being 
recognized [based on] " a disclosed technical effect in the original application. China's  unnecessarily 
burdensome and high threshold of "directly and undoubtedly " has the potential of practically 
requiring an explicit basis for supplemental data, thereby making it very difficult to obtain patents 
on new biopharmaceutical compounds discovered through tremendous investments  in searching for 
new medicine. Why is China considering a supplemental data rule that is inconsistent with 
international consensus? Will China consider input from stakeholders and revise Article 13 in order 
to be consistent with international  consensus in  the final version of the JI?  
Reply  
According to Article 9 of the Patent Law of the People 's Republic of China , if two or more applicants 
apply for a patent for the same invention, the patent right shall be granted to the first applicant. 
Therefore, the fi rst filing system is one of the basic systems of the Patent Law in China . For the 
supplemental data submitted after the filing date, there is a need to consider the consequences of 
accepting such data and its impact on the first filing system. In July 2018, the Supreme People 's 
Court solicited public opinions on the Supreme People 's Court Provisions on Several Issues 
Concerning the Trial of Administrative Cases for Patent Authorization and Confirmation (I) , and 
received comments from different instituti ons from the EU, the US and Japan. The Supreme People 's 
Court will fully consider the suggestions and law enforcement practices of all relevant parties and 
further improve relevant provisions of judicial interpretation.  
3.3.7.2.2 Trademark , page 101 , parag raph  3.235  
Question  
Could China explain its plan and timeline for revising its Trademark Law?  
Reply  
The Preparation for the fourth revision of the Trademark Law has been launched. In March 2018, 
the Trademark Office and the Trademark Association opened a c hannel in their websites to solicit WT/TPR/M/3 75/Add.1  
 
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  opinions from the public for the fourth revision. The Trademark Office is expected to submit a draft 
to the Ministry of Justice by the end of 2020.  
Page 101 , paragraph  3.236   
Question  
The Secretariat's  report indicates that prior rights holders or relevant stakeholders have a 5 -year 
period in which to request revocation of a trademark registration, but that this time limitation does 
not apply to abusive registrations. Does this exception apply to all ab usive registrations, or only to 
abusive registrations involving well -known marks?  
Reply  
This question is about the application of Article 45 of the Trademark Law. The exception mentioned 
in the Report by the Secretariat that is not subject to a five -year t ime limit is not comprehensive. 
According to Article 45 of the Trademark Law, an application for invalidation of a registered 
trademark of another person on a relative basis shall be filed within five years from the date of 
registration of the trademark. F or trademarks that are registered in bad faith, well -known trademark 
owners are not subject to such five -year time limit. In this article, the provision for trademarks that 
are registered in bad faith, the owner of a well -known trademark shall not be subje ct to such 
five-year time limit specifies the pre -conditions based on which the owner can claim for invalidation 
of a registered trademark while not being subject to the time limit, namely, 1) the trademark is 
registered in bad faith; 2) the claimed tradem ark is a well -known trademark; 3) the person who 
claims for invalidation is the owner of the well -known trademark. This exception shall apply only if 
all the three conditions have been satisfied, but not just the one bad -faith registration. According to 
the above explanation, this exception applies only to the protection of well -known trademarks.  
Page 102, paragraph 3.242  
Question  
The Secretariat's  report summarizes the efforts that China has made to facilitate the filing and 
registration of trademarks. Given the historically very large volume of trademark applications 
received, what specific changes, including procedural and structural changes, has China made to the 
trademark examination process and trademark examining bodies to ensure that the quality of 
examination does not suffer as a result of the even greater number of trademark applications that 
are likely to result from China's  efforts?  
Reply  
In order to maintain the stable growth of the quality and efficiency of trademark examination,  SIPO 
has taken several measures to expand its examination team, optimize its examination process, and 
enhance its management ability . Namely: 1) Establishing three trademark examination cooperation 
centres  outside Beijing, to expand the examination team; 2) La unching the examination by a single 
examiner system, to train more examiners engaged in single  examination; and 3) Enhancing 
management ability, and coordinating examination standards, work systems and quality assessment. 
In this process, SIPO revised the Rules and Procedures for Substantive Examination of Trademarks, 
and promulgated the Quality Management and Supervision Measures for Substantive Examination 
of Trademark Registration Applications (Trial) and other systems, strengthened the quality 
supervisi on capacity, and improved the quality and efficiency of examination.  
Page 102, paragraph 3.243  
Question  
The Secretariat's  report states that China's  Trademark Office "published 45 applications for sound 
marks since the sound mark was introduced into the Tr ademark Law in 2014. " 
a. Please identify approximately how many of the published applications were filed by foreign 
applicants.  WT/TPR/M/3 75/Add.1  
 
- 122 - 
 
  Reply   
Since 1 May 2014, a total of 25 (according to class count) sound trademarks applications have been 
approved for registration. Among them, 15 foreign applicants applied for registration in China, and 
four applications were registered through the Madrid system.  
Ques tion 
b. Please provide information on the number of three -dimensional trademarks that have been 
published since 2014 and indicate the number of applications for these trademarks that were filed 
by foreign applicants.  
Reply  
Since 1 January 2014, the Tradem ark Office has accepted a total of 5,066 three -dimensional 
trademark applications. Among them, 1,058 applications are filed by foreign applicants in China, 
and 478 are filed under the Madrid system.  
3.3.7.2.3  Geographical indications , page 103, paragraph 3 .245 
The Secretariat's  report describes the Measures for the Protection of Foreign Geographical 
Indications.  
Question  
a. Can China confirm whether procedures exist for revoking a Geographical Indication after the 
conclusion of the 60 -day period provided under  Article 12 of the Measures for the Protection of 
Foreign Geographical Indications?  
 
Reply  
 
According to Article 33 of the Measures for the Protection of Foreign Geographical Indications, where 
a foreign geographical indication product granted protection in China falls into any of the three 
circumstances, the AQSIQ shall issue an announcement of revocation: (1) Where the protection in 
the originating country or region is revoked; (2) Where the protection in China is revoked by a 
decision of the judiciary; or (3) Where the product is in grave violation of China's  laws, regulations 
or other provisio ns. 
 
Question  
 
b. Are geographical indications granted on the basis of reciprocity subject to the same 
registration criteria, such as distinctiveness, that govern other trademarks?   
 
Reply  
 
The protection of GI product is different from trademark protection, and does not take distinctiveness 
as a registration requirement.  
 
Question  
 
c. Can China explain how it ensures that prior trademark rights are respected when a term is 
later registered as a Geographical Indication on the basis of reciprocity?   
 
Reply  
 
Accord ing to Article 4 of the Measures for the Protection of Foreign Geographical Indications, Names 
of a foreign geographical indication product that are protectable in China include its Chinese name 
and its original name: (1) The Chinese name consists of the n ame that is indicative of the 
geographical region and the genetic name reflecting the actual nature of the product; it may also be 
the generally agreed name of the product. (2) The original name refers to the name under which 
the product is registered and protected in the originating country or region. (3) The above names WT/TPR/M/3 75/Add.1  
 
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  may not be a genetic name in China, nor may it be in conflict with a Chinese geographical indication 
name. A name that is a genetic  name in China may not be registered as geographical  indication. In 
addition, China handles the matters relating to the relationship between a trademark and a 
geographical indication in accordance with Article 22.3 of the Agreement on Trade -Related Aspects 
of Intellectual Property Rights.  
 
3.3.7.3 Copyright and related rights , page 103, paragraph 3.247  
The Secretariat's  report notes that, "[d]uring the period under review, some notices were introduced 
regarding copyright protection of online works; these include the Notice on Strengthening the 
Administration of Copyrights in Online Literature, which entered into force on 11 November 2016. 
In Septemb er 2017, the NCAC issued an Action Plan on IPR Protection in Foreign -Funded 
Enterprises. " In a footnote, the Secretariat's  report adds that, "in July 2015, the Notice on Prohibiting 
the Dissemination of Unlicensed Music Work by Internet Music Service Provi ders entered into force. " 
Question  
a. What results have been achieved since the Notice on Strengthening the Administration of 
Copyrights in Online Literature was issued?   
 
Reply  
 
On 4 November 2016, the General Office of the National Copyright Administration issued the Notice 
on Strengthening the Copyright Administration of Online Literature Works . Firstly, further increase 
the investigation and punishment of the cases regarding infring ement of the copyright of online 
literature works. National Copyright Administration have organized local law enforcement 
departments to investigate cases regarding online literature copyrights on websites such as 
www.43 xs.com  in Suzhou, Jiangsu Province. Secondly, National Copyright Administration have 
requested and guided online literature service providers to improve their copyright management 
ability, establish working mechanisms such as infringement handling mechanis m, copyright 
complaining mechanism and notification and deletion mechanism.  
 
Question  
 
b. Please describe the content of the Action Plan on IPR Protection in Foreign -Funded Enterprises. 
What results have been achieved? Is this Action Plan still being pursued?   
 
Reply  
 
The Action Plan on IPR Protection in Foreign -Funded Enterprises  was implemented by the 
12 departments led by the former Office of the National Leading Group on Fight against IPR 
Infringement and Counterfeiting. The Action Plan proposes 11 tasks, clarifying the division of 
responsibilities of relevant departments, and requires strict crackdown on violations of trade secrets, 
patent rights, new plant variety rights, bad -faith trademark registration and taking advantage of 
well-known trademarks, as w ell as infringement and piracy and other illegal and criminal acts on the 
internet field. China have also strengthened the supervision in important nodes such as import and 
export and delivery, and focused on investigating a number of criminal cases of inf ringement and 
counterfeiting crimes with serious circumstances and bad influence while effectively protect the 
interests of right holders . 
 
Question   
 
c. What results have been achieved since the Notice on Prohibiting the Dissemination of 
Unlicensed Music Wor k by Internet Music Service Providers was issued?   
 
Reply  
On 8 July 2015, the National Copyright Administration issued the Notice on Prohibiting the 
Dissemination of Unlicensed Music Work by Internet Music Service Providers , requiring all online 
music serv ice providers to remove unauthorized music works before 31 July. On 15 July, National 
Copyright Administration held a symposium on the protection of online music copyrights. Declaration 
on Self -discipline of Online Music Copyright Protection was signed by representatives of major online WT/TPR/M/3 75/Add.1  
 
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  music service providers, record companies and copyright companies in this symposium. As of 31 July, 
16 online music service providers directly providing content actively removed more than 2.2  million 
unauthorized music works . 
Page 103, paragraph 3.248  
Question  
The Secretariat's  report states that while the National Copyright Administration of China (NCAC) 
administers copyright on a national scale, "copyright registration and administration is also carried 
out by the respective local copyright administration offices at the provincial level. " Do provincial -
level copyright administration offices share registration records with the Copyright Protection Center 
of China (CCPC), so that there is a single online database of a ll registered copyrights in China 
available to provincial -level copyright administration offices from CCPC?  
Reply   
The National Copyright Administration has established a national copyright supervision platform to 
supervise copyright registration information across the country. It has also entrusted the Copyright 
Protection Center of China to establish a national works registration information statistics database 
to count the categories and quantities of works registration in China.  
Page 104, parag raph 3.251  
Question  
The Secretariat's  report notes that copyright registration is voluntary, and that it is not a requirement 
for copyright protection. Does China collect data on the number of registration claims received and 
processed? If so, please provi de this data for the review period. Have any trends in copyright 
registration been noted by the responsible agencies (e.g., NCAC and CCPC)?  
Reply  
In 2017, the total number of copyright registrations reached 2,747,652, including 2,001,966 for 
works, 745,387  for computer software copyright, and 299 for copyright pledges, representing a 
year-on-year increase of 36.86%.  
Page 104, paragraph 3.252  
The Secretariat's  report states: "The 2010 Interim Measures for the Payment of Remuneration by 
Radio and Television S tations for Broadcasting Sound Recordings continue to mandate that 
broadcasting organizations pay remuneration to copyright owners for broadcasting musical works. 
With the support and coordination offered by NCAC, the Music Copyright Society of China carri es out 
actions intended to safeguard its legal rights against the radio and television stations that have failed 
to pay remunerations for the works broadcast. " 
Question  
a. Does China collect data on the amounts of remuneration collected and distributed? If so , 
please provide this data for the review period.  
Reply  
As of the end of 2017, the Music Copyright Society of China collected RMB 292 million in broadcasting 
rights; finished 11 allocations of broadcasting right utilization fee with the amount being about 
RMB 264 million, involving 13,123 person -times of songwriters and 55 overseas peer associations.  WT/TPR/M/3 75/Add.1  
 
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  Question  
b. Does China collect data on the number of radio and television stations that failed to pay 
remunerations for works broadcast? If so, please provide this data for the review period, including 
the estimated amounts of remuneration that were due but not paid.  
Reply  
The large -scale provincial and municipal TV stations have signed licensing contracts with the Music 
Copyright Society of China and realized p ayment. As of May 2018, there were 47 TV stations and 
63 radio stations having singed music copyright licensing payment contracts with the Music 
Copyright Society of China.  
Page 104, paragraph 3.253  
The Secretariat's  report provides certain data relating t o copyright management organizations in 
China. It states: "As of January 2018, there were five collective copyright management organizations 
in China, among which the Images Copyright Society of China is the largest one (by number  of 
members) with more tha n 14,000 members. In 2017, the Music Copyright Society of China, with 
8,907 members, received the highest annual income (licensing revenue) of RMB 200 million, followed 
by China Audio -Visual Copyright Association, with 177 members, which collected about 
RMB 186 million. The China Written Works Copyright Society, with more than 9,260 members, 
received RMB 5.2 million of royalties for written works in 2017, and the China Film Copyright 
Association has 86  members, with an annual income of RMB 160,000 in 2016. " 
Question  
a. The data provided by the Secretariat's  report only reflect remuneration collected and does not 
indicate any data regarding distribution. How much of the revenue did these collective management 
organizations distribute to their members in 2016 and 2017?  
Reply  
In 2016, the Music Copyright Societ y of China made 10 allocations, involving an amount of about 
RMB 121.7 million, and 12 allocations in 2017, involving an amount of about RMB 148 million.  
In 2016, China Audio -Visual Copyright Association charged RMB 164.46 million, and allocated 
RMB 78.68 million to the right holders (including RMB 31.47 million through the Music Copyright 
Society of China), and the lawsuit related RMB 27.01 million was pending. In 2017, the association 
charged RMB 186.3 million, and allocated RMB 87.3 million to the right holders (including 
RMB 34.92  million through the Music Copyright Society of China), and the lawsuit related 
RMB 30.35  million was pending.  
In 2017, China Written Works Copyright Society received RMB 5.2 million on copyright royalties for 
written works. It allocated RMB 3,365,500 to its members and other rights holders in 38 times.  
Question  
b. Do these collective management organizations retain any fee for their services to their 
members? In the industry, this fee is sometimes called a "management fee " and is o ften stated in 
terms of a percentage of annual revenue. If so, please identify the fees retained by these collective 
management organizations.  
Reply  
The management fee of the Music Copyright Society of China is about 17.5% of the revenue.  The 
management fe e of China Audio -Visual Copyright Association in 2017 accounted for about 24% of 
the total charged fees.  
China Written Works Copyright Society has a management fee of 15% in the transfer of legally 
licensed copyright royalties.  WT/TPR/M/3 75/Add.1  
 
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  The management fee of China Film Copyright Association does not exceed 30% of the charges 
according to its charter.  
The proportion of the management fees of China Film Copyright Association is generally 10% -20% of 
its revenue.  
The amount or proportion of the above -mentioned managemen t fees are in line with the relevant 
provisions of the Regulations on the Collective Administration of Copyrights as well as the charters 
of the above -mentioned copyright collective management associations.  
Question  
c. The United States understands that the M usic Copyright Society of China (MCSC) has 
reciprocal agreements with foreign collective management organizations in the music industry. 
Please provide a breakdown of the collections MCSC received from, and distributed to, foreign 
collective management o rganizations for 2016 and 2017.  
Reply  
As of the end of 2017, the Music Copyright Society of China had signed rights representative 
agreements with 74 peer overseas associations. From 2016 to 2017, a total of 50 overseas 
associations allocated to the Music Copyright Society of China, and it allocated to 54 overseas 
associations.  
In 2016, overseas associations allocated about RMB 6.22 million to the Music Copyright Society of 
China; in 2017, the number was about RMB 8.49 million.  
In 2016, the Music Copyright Society of China allocated about RMB 3 1 million to overseas 
associations; in 2017, the number was about RMB 37.57 million.  
3.3.7.4 Other IPRs , 3.3.7.4.2 New plant varieties , page 105, paragraph 3.255  
Question  
There have been reports that the Ministry of Agriculture and Rural Affairs will suspe nd fees for the 
registration of new plant varieties. Please provide information about any changes in fees relating to 
the registration process, including the reasons for the changes.  
Reply   
According to the Notice of the Ministry of Finance and the National Development and Reform 
Commission on Clearing and Regulating a Group of Policies Concerning Administrative Charges  
(Cai Shui [2017] No. 20), the agricultural departments have suspended the charge of protection 
rights for new plant varieties since 1 April 2017. It aims at effectively reducing the burden on 
enterprises and individuals and promoting the development of the real economy.  
3.3.7.4.3 Undisclosed information and trade secrets , page 106, paragraph 3.257  
The Secretariat's  report indicates tha t under China's  Regulations for the Implementation of the Law 
on Drug Control, undisclosed test data and other data is protected for six years from the approval 
to manufacture or sale of the drug. During this six -year period, the regulatory authorities den y 
approval to other applications using the same data. In May 2018, China's  State Drug Administration 
(SDA) issued draft Implementing Measures for the Protection of Drug Trial Data, which propose a 
system in which companies that first file for marketing app roval outside of China or conduct initial 
clinical trials outside of China would receive less than six years of regulatory data protection (RDP).  WT/TPR/M/3 75/Add.1  
 
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  Question  
a. Given that Chinese companies are more likely than foreign companies to conduct clinical trials 
in China and apply for marketing first in China, can China explain how the draft Implementing 
Measures for the Protection of Drug Trial Data will not unfairly disadvantage foreign companies?  
Reply  
The same clinical trial standards and technical requirements o f the drugs are applied to both 
domestic and foreign companies in China. We welcome foreign companies to conduct clinical trials 
and apply for access to the Chinese markets  and other countries simultaneously.  
Question  
b. Could China explain how the proposed location - and time -based conditions and limitations on 
the RDP terms for innovative drugs and biologics comport with China's  WTO commitment to provide 
at least six years of RDP and China's  national treatment obligations  under WTO agreements, 
including the Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS)?   
Reply  
Implementing Measures for the Protection of Drug Trial Data (Provisional) (Draft for Comment)  
provides for a data protection period of n ot less than six years for innovative drugs, and does not 
require the locations of clinical trials. Foreign companies are equally binding and there is no non -
national treatment for foreign companies.  
Question  
c. Does SDA plan to make amendments to the May 201 8 draft of the Implementing Measures 
for the Protection of Drug Trial Data in order to address the significant concerns raised by the 
United  States and other stakeholders?  
Reply  
At present, we have finished soliciting public opinions regarding the Implemen ting Measures for the 
Protection of Drug Trial Data  (Implementation ), and received feedbacks  and suggestions from 
domestic and foreign parties including the U S. At present, we are adjusting and perfecting the draft 
in combination with feedback and actual w ork, and follow -up work in accordance with the legislative 
procedures.  
Question  
d.  Will SDA provide another opportunity to provide comments on the draft  Implementing 
Measures for the Protection of Drug Trial Data before they are finalized?  
Reply  
In the pr ocess of adjusting and perfecting the draft, we will continue to promote the formulation and 
introduction of the Implementing Measures for the Protection of Drug Trial Data (Provisional)  in 
accordance with legal procedures.  
Question  
e.  Could China clarify  how proprietary test data (e.g., clinical trial data) submitted to the SDA 
will be treated for a medicine that has been first registered in a country other than China and has 
been granted data exclusivity in that country?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The eligibility for data protection depends on whether the drug is filed in China and the time of 
application, not the test data itself.  
Question  
f.  Similarly, could a non -originator applicant (e.g., generic or biosimilar manufacturer) pursue 
an abbreviated approval in China by r elying on the originator applicants clinical trial data submitted 
in a country of prior approval? If so, please explain how this process protects the data against "unfair 
commercial use " within the meaning of TRIPS Article 39.3.  
Reply  
We attach great impor tance to the protection of IPR of patented drugs, but we also oppose the abuse 
of IPR to affect the accessibility of drugs. It should be emphasized that the approval of generic drugs 
to come into the market in China has always been carried out in accordanc e with internationally 
accepted practices and the relevant laws and regulations of China. For the protection of drug trial 
data, China will protect eligible trial data based on law and its international commitments.  
Question  
g.  Could China clarify the rea son for excluding safety data from RDP in the draft Implementing 
Measures for the Protection of Drug Trial Data?  
Reply  
In the drafting process of the Drug Clinical Trial Protection Implementation Measures (Provisional), 
considering that safety data is not the main basis for supporting the approval of generic drugs, and 
drug safety data has an important impact on the public interest, so we have not yet consider 
including data related to drug safety in the scope of trial data protection . 
Question s 
h. Could Ch ina explain how it will treat the publication of safety and efficacy data in academic 
journals or the release of partial datasets as required by other health regulators around the world 
when SDA assesses RDP?  
i.  Could China explain why it is proposing to "proactively " disclose protected data without 
limitation or mechanisms to protect the data from unfair commercial use after RDP is granted? Would 
not this approach undermine RDP protection in other countries that require the data to be 
undisclosed to be el igible for RDP? How would the proposed proactive disclosure comport with 
protection  of the data against unfair commercial use within the meaning of TRIPS Article 39.3?   
Reply to h -i 
Clinical trial data is an important evidence for the approval of drugs for  marketing, and is the main 
basis for drugs and safety and effectiveness. Clinical trial data has long been protected by companies 
as trade secrets, making it difficult for the public to obtain public clinical trial information.  
Article 39.3 of the TRIPS A greement specifies situations in which relevant information can be 
disclosed for public interest. The clinical trial data disclosure based on drug trial data protection is a 
solution to the balance between interests of pharmaceutical companies and the publ ic interest, which 
is also adopted by de veloped members including the U S and the EU. At present, we are adjusting 
and perfecting the draft based on the feedbacks. After the formal implementation of the measures, 
we will continue to discuss and improve spec ific issues in the implementation of data protection.  WT/TPR/M/3 75/Add.1  
 
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  Page 106, paragraph 3.257  
Question  
China 's 2017 draft Drug Registration Regulations denies "new" drug status to drugs approved outside 
of China before being submitted for approval in China. In China, if  a drug is not treated as "new", 
the product will be treated as "generic, " thus robbing a drug of regulatory data protection and 
prematurely allowing other makers of the same drug to begin sales. Will China provide another 
opportunity to provide comments o n the draft Drug Registration Regulations before it is finalized? 
Will China take into account the comments received from the United States and multiple other 
stakeholders about the negative impacts of this unfair and unfounded approach to granting 
regulat ory data protection?  
Reply  
Whether in developed members or developing members, the protection relates to New Chemical 
Entities (NCE) is not identical. If NCE is defined as the first chemical medicine approved for Chinese 
markets without restricting its ini tial market access time abroad, it may lead to the contraction that 
the generic drug which has been on the foreign markets for many years to become NCE in China; 
or the domestically copied foreign product will become NCE, but the real innovative product ca nnot 
become NCE. Moreover, the Implementing Measures for the Protection of Drug Trial Data (Provisional) 
(Draft for Comment)  as already considered the corresponding data protection period for certain 
drugs that have come into foreign instead of domestic ma rkets.  
Page 106, paragraph 3.257  
Question  
Under China 's draft Measures on the Security Assessment of Personal Information and Important 
Data, data generated by medical devices will be subject to localization requirements and cross -
border data restrictions. How does China plan to address the global nature of medical  devices 
industry and the basic need for data to be transferred across border  in order to deliver important 
medical and patient information?  
Reply  
Measures on the Security Assessment of Personal Information and Important Data (Draft)  is still 
being refined and improved.  
Page 106, paragraph 3.257   
China 's Measures for the Administration  of Scientific Data impose broad grounds for restricting cross -
border data transfers. These measures are vague and potentially very problematic, with particular 
regard to joint research by Chinese and foreign partners. In addition, China did not provide an  
opportunity for public comment on a draft of this measure, as the announcement date and the 
implementation date for this measure were the same, i.e., 17 March 2018.  
Questions  
a. Will China consider suspending this measure and providing a notice -and-comment p eriod, 
given its broad implications?  
b. How does China define "societal and public interests " under Article 5 of the measure?  
Reply  for questions a-b 
Please refer to the Circular of the State Council General Office on Printing and Distributing the 
Measures for the Administration of Scientific Data (Guo Ban Fa [2018] No.17).  WT/TPR/M/3 75/Add.1  
 
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  Page 106, paragraph 3.257  
In 2016, the State Intellectual property Office (SIPO) issued the Guidelines for Patent Examination, 
which included a revised standard for reviewing "sufficiency  of disclosure ".  
The State Intellectual Property Office (SIPO) issued its decision on 28 February  2017 regarding  
Guidance for Patent Review  (No. 74), which came into effect 1 April 2017.  
The revision on Section 3.4 in Chapter X in the second part of the Guidance is a replacement of the 
wording the experiment case and the data submitted after date of application will not be reviewed 
with the wording the experiment data submitted after the date of application shall be reviewed; the 
technical effect proved b y such data shall be the one that can be gained by technician from the 
contents revealed in patent application. This revision clarifies the misunderstanding on the wording 
not be reviewed as mentioned above, and specifies the review principle for the data submitted after 
the date of application.  
Question   
a. It is difficult to patent specific therapeutic methods in China, including new dosage regimens 
and new routes of administration of existing medicines. Could China explain how these restrictions 
comply with  TRIPS Article 27.1?  
Reply:  
According to article 27.2 in Agreement on Trade -Related Aspects of Intellectual Property Rights 
(TRIPS), Members may exclude from patentability inventions, the prevention within their territory 
of the commercial exploitation of which is necessary to protect ordre public  or morality, including to 
the protect human, animal, or plant life or health or t o avoid serious prejudice to the environment. 
Doctors shall have the freedom to choose the method or condition during diagnosis or treatment 
due to humanist consideration or social ethics. The treatment to disease shall be subject to Article  25 
in the Patent Law and not be given the patent.  
In addition, for the medical -purposed invention of chemical products, section 5.4 in Chapter X in the 
second part in Guidance on Patent Review specifies that the examination for novelty shall take into 
account whether th e usage -related features including medication user, method, approach, dose and 
time interval will restrain the pharmaceutical process. The distinctive features that can only be 
spotted in meditation  process are not regarded as the evidence for novelty.  
Therefore,  the relevant provisions in the Patent Law  and Guidance for Patent Review  are not 
incompliant  with Article 27 in TRIPS.  
3.3.7.5 Enforcement , 3.3.7.5.1 Overview , page 106, T able 3 .30 
Table 3.30  provides data on intellectual property rights enforcemen t in China from 2014 
through  2017.  
Question  
a. The Secretariat's  report states that the number of administrative enforcement actions for 
copyright decreased from 4,728 in 2014, to 4,377 in 2015, to 3,065 in 2016. At the same time, the 
level of fines increased from RMB 13.49 million (2014) to RMB 134.1 million (2016), a nd the number 
of copyright cases accepted by the courts increased from 51,351 (2014) to 86,989 (2016).  Please 
explain why China 's copyright authorities have decreased their administrative enforcement activities 
during the period under review, while increas ing the administrative fines assessed. Are right holders 
increasingly relying on the court system instead of administrative enforcement for the resolution of 
copyright disputes?  
Reply  
First of all, it needs  to be connected that during the current review pe riod, it is the number of 
copyright administrative penalty cases, rather than the number of copyright administrative WT/TPR/M/3 75/Add.1  
 
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  enforcement actions that decreased. The number of copyright administrative penalty cases in 2017 
was less than that in 2014, for the follow ing reasons:  
1. According to the  Copyright Law , the parties can only solve the general copyright or 
infringement disputes through civil channels. Only for the infringements described in Article  48 
which impair the public interest at the same time, relevant pa rties can make administrative 
complaints to the copyright administrative departments, and the administrative law 
enforcement departments will investigate. The decrease in the number of administrative 
penalty cases just indicates that the fact that the seri ous violations that harm public interests 
have decreased.  
2. The number of copyright administrative law enforcement cases is counted according to the 
number of cases in which administrative penalties are imposed. With the development of 
digital network techno logy, on the one hand, traditional infringement and piracy activities are 
moving to the internet. On the other hand, online infringement and piracy are increasingly 
becoming cross -border behaviours . For cases where the infringer is not in China, the copyri ght 
administrative law enforcement departments cannot make administrative penalties and can 
only curb piracy by removing infringing links and closing infringing websites. As a result, the 
number of administrative penalty cases has decreased, but the number  of the actions taken 
to delete infringing links and websites has greatly increased. However, this part of the data is 
not counted in the number of the cases.  
3. In fact, a large number of infringing and pirated websites currently have servers in the U S. 
The National Copyright Administration of China  has repeatedly requested the U S to take 
effective measures to solve the problems in multiple bil ateral occasions. We urge the U S to 
effectively strengthen international cooperation on copyright protection with China and other 
countries and regions, and double its efforts to crack down on such servers and websites to 
jointly maintain a sound online copyright environment.  
Question  
b. Can China provide data on the number of trade secrets cases accepted and closed in 2 015, 
2016 and 2017?  
Reply  
The industrial and commercial bureaus and market regulation bodies in China investigated 
20 commercial secret cases in 2015, and 52 cases in 2016 and 46 cases in 2017.  
3.3.7.5.2 Administrative enforcement , page 107, paragraph 3.26 1 
Question  
SIPO issued the Opinions on Strict Protection of Patents in 2016 to strengthen China's  capacity to 
enforce patents. What results have been achieved since the implementation of this measure?  
Reply  
1. Efforts have been intensified to enforce patent laws. Substantial progress has been seen in 
the implementation of special campaigns to protect patent rights such as Huhang  Campaign 
and Leiting Campaign. Patent protection mechanisms in key areas and links h ave been 
gradually improved. Cross -regional and inter -departmental law enforcement cooperation 
mechanisms have been running smoothly. And increased law enforcement efforts have been 
made to crack down on patent infringements and counterfeiting. In 2017, a total of 
67,000  patent administrative enforcement cases have been handled with a year -on-year 
increase of 36.3%, showing improvements in the efficiency of law enforcement. The closing 
rate of various patent cases in 2017 reached 98.5%, which greatly booste d the confidence of 
market and innovation entities.  
2. speedy coordinated efforts to protect IPR and aid work for right protection are carried out in 
a deep -going way. A batch of IPR protection centres  and fast right protection centres  WT/TPR/M/3 75/Add.1  
 
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  integrating the works o f quick review, fast right affirmation and speedy right protection has 
been built. A chained mechanism has been established to facilitate IPR authorization, 
affirmation and protection so as to protect the ligitimate  rights and interests of domestic and 
foreign right holders more effectively. The public hotline 12330 and online service platform 
for IPR infringement report, complaints and rights protection have been launched, and 76 IPR 
protection assistance centres  have been established nationwide.  
3. The build ing of a social credit system in the IPR area has been proceeds orderly. Information 
related to patent  application, right protection and service will be included in the social credit 
information catalogue . Part of the information will be disclosed to the p ublic through Credit 
China website. Efforts to build the platform for credit information sharing and mechanisms for 
joint punishment against seriously dishonest entities in patent field have been accelerated.  
With the implementation of the Opinions on Stri ct Protection of Patents, we have strengthened 
efforts to protect patents , improve efficiency and bring patent protection to a higher level, 
underpinning wider opening up and creation of a better business  environment.  
Page 107, paragraph 3.262  
Question  
The Secretariat's  report describes the Action Plan for the Protection of Intellectual Property Rights 
Owned by Foreign -Invested Enterprises, issued in September 2017 by the National Leading Group 
on the Fight against IPR Infringement and Counterfeiting. Do es China maintain data on enforcement 
resulting from this action plan? If so, please provide data for the review period, including the number 
of cases investigated and dealt with, the amount of product seized, the number of cases transferred 
to public secu rity organs, and the amount  of fines issued . 
In 2018, the State Administration for Market Regulation (SAMR) issued the system -wide Opinions 
on Further Strengthening the Enforcement of Anti -Unfair  Competition Law (SAMR Competition [2018] 
No. 48). From May t o October 2018, key actions against unfair competition will be carried out 
nationwide to protect property rights. These actions will focus on investigating and penalizing unfair 
competition practices that infringe upon IPR through  confusing the market and violating trade secrets. 
By the end of May, a total of 2,342 cases of key unfair competition practices listed in the Opinions 
have been investigated and punished with a value of RMB 440 million and an amount of confiscated 
money of more than RMB 80 million . Among them, 1,020 cases are related to commercial confusion 
with a value of more than RMB 64 million and a fine of over RMB 14 million while five related to 
violation of trade secrets with a value of over RMB 160,000 and a penalty of more than RMB 190,00 0. 
The public security organizations have learnt  from the Spring Thunder Campaign and optimized 
combat models against collective crimes with a focus on cracking down on infringement and 
counterfeiting crimes that foreign -invested enterprises are highly con cerned with. Over 1,000 cases 
involving 179 foreign brands from 14 countries have been investigated. The customs departments 
have ferreted out a total of 10,008 batches of products that infringe upon the IPR of foreign -invested 
enterprises, involving 5.69 million pieces of goods with a value of RMB 33.84 million. Local copyright 
administrative law enforcement agencies have investigated and handled 185 cases involving foreign -
invested enterprises with the amount of RMB 130 million.  
Page 107, paragraph 3.263  
In this paragraph, the Secretariat's  report describes the "Swordnet " campaigns carried out in 2016 
and 2017 by NCAC, the National Internet Network Information Office, the Ministry of Industry and 
Information Technology (MIIT) and the Ministry of Public Sec urity (MPS). In paragraph 3.265, the 
Secretariat's  states that NCAC continued to conduct the "Network Sword Campaign ", which, in 2017, 
"focused on maintaining the order of online copyright. " 
Questions  
a. Please clarify whether there are any differences between the "Swordnet " campaigns in which 
NCAC and other agencies participated in 2016 and 2017 and NCACs "Network Sword Campaign. " 
Are these the same or different campaigns? If they are different, p lease de scribe the differences.  WT/TPR/M/3 75/Add.1  
 
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  b. What results gave been achieved by these various campaigns?   
Reply  to a-b 
Paragraph 3.265 of the Secretariat's  report states that the National Copyright Administration 
continued to carry out the Network Sword Campaign which is a tra nslation error and should be 
corrected as the Swordnet campaign. Please correct.  
During the special Swordnet 2016 campaign, 514 administrative cases were investigated and 
handled; administrative fines were RMB 4.67 million; 33 cases were transferred to the  judicial organs; 
the amount involved was RMB 200 million; and 290 websites were closed.  
During the special Swordnet 2017 campaign, a total of 63,000 websites were investigated; 
2,554  infringing and pirated websites were closed; 710,000 infringing and pira ted links were deleted; 
2.76 million infringing and pirated products were seized; 543 online infringement and piracy cases 
were investigated; 57 criminal cases were investigated with public security organs; and the amount 
involved was RMB 107 million. The online copyright environment is further purified and the online 
copyright order is further regulated.  
Page 108, paragraph 3.264  
Question  
The Secretariat's  report states that SIPO has established the Collaborative Centre (Zhejiang) of 
Patent Law Enforcement in E -commerce, which is responsible for collaborating with law enforcement 
organizations in cases of patent protection complaints among e -commerce platfo rms in Zhejiang. 
Please provide more details about this Collaborative Centre and what results have been a chieved 
since its establishment.  
Reply  
The coordinating centre  for patent enforcement and right protection in e-commerce  area established 
in 2016 is in  operates efficiently. Based on the agreements signed with intellectual property offices 
at provincial  and municipal level, the centre  coordinates local law enforcement forces to help handle 
online patent infringement and counterfeiting cases and promote o nline and offline integrated 
management. Since its establishment, the centre  has provided a lot of advice on patent infringement 
identification for e -commerce platforms. In light of such advice, the platforms remove and block 
links of infringed and counter feit goods, effectively maintaining the good order in e -commerce 
platforms and are appreciated by domestic and foreign right holders and consumers.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.3 Policy instruments , 4.1.3.2 Inter nal 
measure s, 4.1.3.2.1 Support measures, p age 118, paragraph 4.21, Table 4.7   
Question  
Table 4.7 indicates that China provides an exemption or reduction from corporate income tax for 
enterprises engaged in the fisheries sector, among others. Please descri be the terms of this subsidy 
programme  and report the amount of corporate tax that was exempted or reduced for enterprises 
in the fisheries sector during the review period.  
Reply  
Please refer to the subsidy policy notification submitted by the Chinese side. WT/TPR/M/3 75/Add.1  
 
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  4.3 Manufacturing ,  
a. Page 140, paragraph 4.85 . The Secretariat's  report describes China 's Made in China 2025 
industrial plan, which targets ten broad, strategic industries in China for promotion and development, 
including advanced information techn ology, robotics and automated machine tools, new energy 
vehicles, advanced rail equipment, aircraft and aircraft components, agricultural machinery and 
equipment, maritime vessels and marine engineering equipment, new materials, pharmaceuticals 
and medical  devices, and electrical generation and transmission equipment. While this industrial 
plan ostensibly embraces market -oriented principles, an analysis of the industrial plans goals and 
the tools identified for achieving those goals makes clear that the Chi nese government views the 
state, rather than the market, as the more critical actor in China's  economy. For example, one key 
goal of this industrial plan is to substitute domestic products and services for foreign products and 
services in the China market.  Indeed, China even identifies specific market share goals in China by 
industry for 2020 and 2025. This industrial plan also calls for the targeted Chinese industries to 
secure increasing shares of global markets once they have achieved dominance in the Ch ina market. 
Among the tools identified for achieving these goals are policies that seek to secure advanced 
technologies, including from foreign companies, in the targeted industries. In addition, the Chinese 
government reportedly is making available more t han USD 300 billion in financial support to the 
targeted industries. How its call for import substitution pursuant to Made in China 2025 is consistent 
with market -oriented principles?  
Question   
b. Please explain how the industries targeted by Made in China  2025 can achieve the market 
share targets for their products and services without Chinese government intervention in the 
economy?  
Reply  
In essence, Made in China 2025 is a strategic plan, aiming to guide and promote industrial upgrading. 
It adheres to the  principle of fairness and justice in implementation, and treats domestic and 
foreign -invested enterprises equally, without restrictive, discriminatory and exclusive intentions. 
Made in China 2025 is designed to guide China's  manufacturing industry to achi eve better quality, 
greater efficiency, and accelerated transformation and upgrading, and its targets are predictive, 
directive and not mandatory. The current situation is that in some key industries, we are facing 
international technical blockades and pro duct export restrictions, which bring major risks of 
unplanned outages to China's  key industrial chains.  
Question  
c. How will the Chinese government avoid creating severe excess capacity in the industries 
targeted by Made in China 2025?  
Reply  
The implemen tation of Made in China 2025 is market -oriented, though guided by the government, 
and aims to comprehensively deepen reform, highlight the dominant position of the enterprise, and 
give full play to the decisive role of the market in resource allocation.  
Question  
d. When will China notify all subsides provided pursuant to Made in China 2025 to the Committee 
on Subsidies and Countervailing Measures pursuant to Article 25 of the Agreement on Subsidies and 
Countervailing Measures?  
Reply   
China will notify the s ubsidies based on our understanding of the Agreement.  WT/TPR/M/3 75/Add.1  
 
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  Page 141, paragraph 4.93  
The Secretariat's  report notes that, on 27 September 2017, MIIT issued the Administrative Measures 
for Implementing Parallel Policies including Calculation of Passenger Vehicles ' Corporate Average 
Fuel Consumption and New Energy Vehicle Points. Under this measure, foreign and domestic 
automakers need to produce enough new energy vehicles (NEVs) in China to earn credits to meet 
an NEV credit target of 10 % in 2019, which would then  rise to 12 % in 2020. Missing a target would 
require an automaker to scale back total production to bring NEV production in line with a target, or 
to purchase credits from other automakers.  
Question  
a. Have post -2020 NEV credit targets been set? Has China con sulted domestic and foreign 
automakers to ensure that any post -2020 targets are feasible?   
Reply  
Immediately after the release of the Administrative Measures for Implementing Parallel Policies 
including Calculation of Passenger Vehicles Corporate Average F uel Consumption and New Energy 
Vehicle Points (hereinafter referred to as the Credit Measures) in September 2017, the Ministry of 
Industry and Information Technology (MIIT) and other relevant departments launched the research 
on the post-2020 corporate ave rage fuel consumption and NEV credit  system. In order to ensure 
that the post-2020 NEV credit targets  are fe asible, we have comprehensively analysed  the 
development trends from the perspectives of the market, technology, costs and supporting facilities, 
and investigated the future production and planning of traditional fuel vehicles and NEVs of 
automakers. We will also seek for the opinions of domestic and foreign automakers in the later stage.  
Question  
b. Can China explain how any major U S-China joint venture  auto enterprise that does not achieve 
more than 5,000 units of NEV sales in China could be compliant under the NEV credit system, other 
than by greatly reducing its production or importation of internal -combustion engine vehicles?  
Reply  
According to the C redit Measures, the negative credits of average fuel consumption and NEVs must 
be compensated to zero within 90 days after the release of the report on the calculation of such 
credits (except for the year of 2019). The negative credits of average fuel cons umption can be 
compensated by using the positive credits of average fuel consumption carried over from the 
previous period, or those assigned by other enterprises, or the positive credits  of NEVs yielded by 
the enterprise itself, or those purchased from ot her automakers, or by using these credits in 
combination. The negative credits of NEVs can be compensated to zero by purchasing the positive 
credits of the same.  
Question  
c. With regard to penalties for non -compliance with the NEV credit system, Article 36 of  the 
Administrative Measures for Implementing Parallel Policies including Calculation of Passenger 
Vehicles ' Corporate Average Fuel Consumption and New Energy Vehicle Points indicates that 
penalties may take the form of (1) exclusion from the Road Motor Ve hicle Manufacturer and Product 
Announcement, (2) denied issuance of compulsory product certifications, (3) penalties according to 
the Policy on Development of Automotive Industry, Regulations Concerning the Management of 
Compulsory Product Certification an d (4) other relevant provisions. Can China explain the 
circumstances in which each of these penalties would apply, either individually or in combination?   
Reply  
In the event that negative credits have not been compensated to zero within the specified time limit, 
the following penalties  shall apply before the negative credits have been compensated to zero: 
1) with respect to new vehicles of domestic passenger vehicle manufacturers that fail to reach the 
target fuel consumption values for specific vehicle mod el set forth in the Evaluation Methods and WT/TPR/M/3 75/Add.1  
 
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  Indicators for the Fuel Consumption of Passenger Vehicles (GB27999  - 2014), the penalty  shall be 
exclusion from the Road Motor Vehicle Manufacturer and Product Announcement ; 2) with respect to 
new vehicles of impo rted passenger vehicle suppliers that fail to reach the target fuel consumption 
values for specific vehicle model set forth in the Evaluation Methods and Indicators for the Fuel 
Consumption of Passenger Vehicles, the penalty  shall be  denied issuance of com pulsory product 
certifications ; 3) with respect to an automaker who fails to submit its adjusted passenger vehicle 
production or import plan in accordance with the Credit Measures (Article 35), or who has submitted 
its plan, but whose average fuel consumpt ion and NEV credits in the year do not meet the 
requirements, the penal ty shall be made  according to the Policy on Development of Automotive 
Industry, Regulations Concerning the Management of Compulsory Product Certification and other 
relevant provisions.  
Question   
d. For an enterprise previously determined to be non -compliant with the NEV credit system, will 
the enterprises new products that do meet fuel consumption target values under the Fuel 
Consumption Evaluation Methods and Targets for Passenger Cars be included in the Road Motor 
Vehicle Manufacturer and Product Announcement?  
Reply  
An enterprise whose negative credits are not compensated to zero within the specified time limit, or 
new vehicles that fail to reach the target fuel consumption values for spec ific vehicle model set forth 
in the Evaluation Methods and Indicators for the Fuel Consumption of Passenger Vehicles, the penalty  
shall be exclusion from the Road Motor Vehicle Manufacturer and Product Announcement , or denied 
issuance of compulsory product  certifications . New vehicles that have reached the target  fuel 
consumption values for specific vehicle model set forth in the Evaluation Methods and Indicators for 
the Fuel Consumption of Passenger Vehicles are not subject to restrictions.  
Question  
e. Are en terprises that generate surplus NEV credits required to sell those credits, or do these 
enterprises retain discretion not to do so?  
Reply   
The Credit Measures stipulates that the positive  credits for  NEVs can be freely traded. Passenger 
vehicle enterprises can decide whether to sell these credits according to their actual situation. Its 
noted that NEV credits that have not been sold in the year (except for the year of 2019) shall expire 
in the next accoun ting year.  
Question   
f. Are NEV credits transferrable between affiliated enterprises, as "affiliated enterprises " are 
defined in Article 23 of the Administrative Measures for Implementing Parallel Policies including 
Calculation of Passenger Vehicles ' 
g.  Corpora te Average Fuel Consumption and New Energy Vehicle Points?  
Reply  
According to the Credit Measures, NEV credits  can be freely sold to any transaction object, and are 
transferrable between affiliated enterprises . 
Page 142, paragraph 4.97  
The Secretariat's  report discusses Chinese investment restrictions in the automobile sector, including 
those on foreign investment. On 17 May 2018, China's  National Development and Reform 
Commission published the draft Regulations for the Administration of Investment in the A utomobile 
Industry. Under these draft regulations, China proposes prohibiting new construction of certain "fuel WT/TPR/M/3 75/Add.1  
 
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  vehicle " enterprises and would impose other restrictive requirements on investments in the 
automobile industry.  
Question  
a. Article 10 of the draft regulations proposes to prohibit investment projects in existing or new 
"independent " enterprises that would be constructing production capacity for fully assembled 
independent fuel vehicles in passenger car and commercial vehicle c ategories. Can China clarify 
whether the term "fuel vehicle " refers to traditional fuel vehicles, i.e., internal combustion engine 
vehicles? Could China also clarify the meaning of "independent " enterprises in this context, including 
whether it would inclu de wholly foreign -owned enterprises? If so, could China explain the purpose 
behind its plan to remove foreign equity caps on the manufacture of traditional fuel commercial 
vehicles by 2020 and traditional fuel passenger cars by 2022? Under what circumstanc es, if any, 
would it be possible under the draft regulations to establish a wholly foreign -owned enterprise 
manufacturing traditional fuel commercial vehicles in 2020 or a wholly foreign -owned enterprise 
manufacturing traditional fuel passenger cars in 202 2?  
Reply  
Foreign equity cap on manufacturing of special -purpose vehicles and new -energy vehicles (NEVs) 
has been removed, and that on the manufacturing of commercial vehicles and passenger vehicles 
will be lifted by 2020 and 2022 respectively. The restric tions on no more than two equity joint 
ventures by a foreign investor in mainland China to manufacture vehicles will also be abolished 
by 2022.  
Question s 
b. It appears that, under the draft regulations, existing  "fuel vehicle " enterprises would be 
subject to requirements relating to existing vehicle production, vehicle exports and new energy 
vehicle (NEV) output. Can China explain how these requirements would apply to foreign enterprises, 
given that all automobile enterprises are already subject to NEV output requirements and potential 
penalties under the NEV credit system?  Can China explain how it would calculate "industry averages " 
under Articles 11, 13, 15 and 19 of the draft regulations in order to enforce the proposed 
requirements?  
c. It appears that, under A rticles 12 -14 of the draft regulations, newly established "pure-electric 
vehicle " enterprises would be subject to a number of requirements, including historic vehicle output 
levels, which they would not be able to meet given their lack of previous production of automobiles 
in China. Can China clarify how this requirement would be appli ed? Under what circumstances, if 
any, would it be possible under the draft regulations to establish a wholly foreign -owned enterprise 
manufacturing pure -electric vehicles after China's  planned removal of foreign equity caps on the 
manufacture of NEVs in 20 18? 
d. It appears that existing "fuel vehicle " enterprises that seek to expand "pure-electric " vehicle 
production capacity and existing "pure-electric " vehicle enterprises that seek to expand pure -electric 
vehicle production capacity would be subject to a num ber of requirements under Articles 15 -16 of 
the draft regulations, including a requirement to have reached a "domestically advanced level ". Can 
China explain the criteria and process by which the products of these enterprises would be 
determined to have re ached a "domestically advanced level "? 
Reply to b-d 
The draft is currently in the process of soliciting public comments.  
4.3.2.2 Electronics and information technology (IT) , page 142, paragraph 4.101  
The Secretariat's  report notes that the National Integra ted Circuit Industry Investment Fund was 
established on 24 September 2014 to finance the integrated circuit industry. According to the 
Chinese government, this fund is a private equity fund, and the goal of the fund is to deliver profits 
for shareholders a nd that investment decisions are accountable to shareholders.  WT/TPR/M/3 75/Add.1  
 
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  Question  
a. Please list all central and sub -central Integrated Circuit Industry Investment Fund Funds and 
identify the amounts of funds that have been placed in each of these central and sub-central 
Integrated Circuit Industry Investment Funds to date.  
b. Please provide the amount of funds that have been invested into the integrated circuit industry 
by each of the central and sub -central Integrated Circuit Industry Investment Funds to date. P lease 
also provide the number of enterprises that have received investment funds from each of these 
central and sub -central Integrated Circuit Industry Investment Funds to date.  
c. Please provide the return on investment that has been realized by each of the se central and 
sub-central Integrated Circuit Industry Investment Funds to date.  
d. Please describe the criteria used to make and to evaluate investment decisions by these 
central and sub -central Integrated Circuit Industry Investment Funds. Are China's  indus trial plans 
considered when creating Integrated Circuit Industry Investment Funds or when making or 
evaluating investment decisions?  
e. Chinese and foreign media reports suggest that a second fundraising round is underway to 
boost the National Integrated Circ uit Industry Investment Funds total paid -in capital. Could China 
identify the targeted level of paid -in investment for the phase -two fundraising round? Are there any 
plans for a further fundraising round?  
f. Are foreign companies being solicited for funds as part of the phase -two fundraising round? If 
so, will they be eligible for board seats or any other formal oversight over the National Integrated 
Circuit Industry Investment Fund based on the size of their investments?  
Reply to a-f 
As indicated in the Secretariat's  report, the n ational integrated circuit industry investment fund is a 
private equity investment fund. Like other private equity investment funds, all of its investment 
decisions are only accountable to its shareholders. Therefore, the amounts  of funds  (a), the amount 
of funds that have been invested into the integrated circuit industry  (b), the return on investment 
that has been realized  (c), the criteria used to make and to evaluate investment decisions  (d), the 
plan for the phase -two fundrai sing round  (e, f) and the other issues are internal information about 
the operation and management of the fund.  
Page 143, paragraph 4.100  
Question  
The Secretariat's  report includes this sentence: "The authorities state that the Government provides 
no subsidies specific to the electronics and IT sector. " This statement by the Chinese government 
seems to contradict China's  past subsidy notifications. Can China clarify this statement?  
Reply   
China does not know the exact source of the above statement.  
Page 143, paragraph 4.102  
The Secretariat's  report notes the State Council has put forward a number of guidelines to support 
the development of the Internet Plus initiative for 11 industries including manufacturing. On 
22 January 2017, the Cyberspace Administ ration of China (CAC) and the Ministry of Finance 
announced the launch of a RMB 100 billion China Internet Investment Fund to promote the Strategy 
to Build China into a Strong Cyber Country. Following this announcement, the People 's Daily reported 
that six  strategic partners (including the Industrial and Commercial Bank of China (ICBC), CITIC 
Guoan Group, China Post Life Insurance Corporation and China's  three major state -owned 
telecommunications enterprises) funded the first USD 4.4 billion, while three st ate-owned banks WT/TPR/M/3 75/Add.1  
 
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  (ICBC, China Development Bank and Agricultural Bank of China) were providing financial services 
and USD 21.8 billion in credit for enterprises raising money for the China Internet Investment Fund.  
Question  
a. Who is responsible for operating t he China Internet Investment Fund?  
Reply 
China Internet Investment Fund  Management  Co., Ltd.  
Question  
b. Please describe the primary goals and investment strategy of the China Internet Investment 
Fund. Is its investment strategy solely market -based?  
Reply  
The primary goal  of the Fund  is to facilitate the Internet enterprises to achieve innovative  
development through market -based investment approaches, thus seeking good economic returns. 
Its investment strategy is to seize the historical opportunity of high -speed growth of Internet 
enterprises, and to invest in high -quality Internet companies with great potential and stable growth 
through market -based approaches. The Fund is managed by professionals according to market rules. 
It conducts market feasibility an alysis on investment projects, participate in market competition and 
carry out investment operations according to capital operation rules.  
Question  
c. Can China identify any foreign -invested enterprises that have received financial support from 
the China Inte rnet Investment Fund?  
Reply  
The Fund  operates according to Chinese laws and market rules, as well as the company's  internal 
market -based decision -making procedures and standards. Up to now, the Fund has completed 
investment in only one enterprise, which is  a non -foreign -funded enterprise.  
Page 143, paragraph 4.10 3  
The Secretariat's  report notes that the State Council 's Outline of the National Informatization 
Development Strategy aims to build China into an Internet power, in part through promoting 
investme nts into the development of indigenous core technologies.  
Question s 
a. Please identify the total funding that is available under the National Informatization 
Development Strategy and the core technologies targeted by it.  
b. Are the National Informatization Development Strategy funds separate from and in addition 
to those funds made available under Made in China 2025 and/or Internet Plus?  
c. What is expected of funding recipients in exchange for receiving an investment?  
d. Are investments pursuant to the National I nformatization Development Strategy open to 
foreign -invested enterprises?  
Reply to a-d 
The Outline of the National Informatization Development Strategy is a document of guiding nature, 
which equally applies to all kinds of enterprises and does not involve specific subsidy policies.  WT/TPR/M/3 75/Add.1  
 
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  4.3.2 Selected subsectors , 4.3.2.4 Iron and steel , page 147, paragraph 4.115  
Question  
The Secretariat's  report notes that China plans to achieve a steel production capacity of 
approximately 1,000 million tonnes  by 2020 in an effo rt to bring steel production capacity "closer to 
consumption. " According to the World Steel Association, steel consumption in China is approximately 
700 million tonnes . World Steel Association and other market observers project that China's  steel 
consumpti on will remain flat in 2018 and then contract in subsequent years. China's  own iron and 
steel association has similarly projected declining domestic steel demand. Given the large, continuing 
gap between China's  consumption and production capacity (i.e., at least 300 million tonnes ), and 
given the projections of diminishing future consumption in China, what steps does China intend to 
take to accelerate steel production capacity reduction?  
Reply   
Since 2016, the C hinese government has conducted nationwide inspections and random checks to 
urge and supervise local governments to fully implement the  tasks of cutting overcapacity, in 
particular , eliminating those illegal and outdated production capacities.  
4.4 Services , 4.4.1 Telecommunications , 4.4.1.1 Statistical overview , page 148, B ox 4.1  
Box 4.1, " Economic characteristics and evolution of the telecommunications sector ", only identifies 
SOEs as participating in the basic telecommunications sector. It also identifies  the number of foreign 
companies approved to provide value -added telecommunications services. According to those 
statistics, of the 30,547 companies providing value -added telecom services, only 78 foreign -invested 
companies have obtained a "business certif icate for telecommunications business, with foreign 
investment ranging from 7 -100%." 
Question  
a. Apart from mobile virtual network operators (which China treats as suppliers of value -added 
telecommunications services), are there any private operators in the b asic telecommunications 
sector? If not, what are the legal and policy bases prohibiting private operators from obtaining 
licences to operate in China's  basic telecommunications sector?  
Reply  
The Chinese government encourages private operators to participate in the basic 
telecommunications services in accordance with relevant laws and regulations, so as to promote 
market competition and modality innovation in China's  telecommunications sector. Currently, apart 
from mobile virtual network operators, there are already private operators in the basic 
telecommunications sector.  
Question  
b. Why is the number of foreign -invested value -added telecommunications companies so low in 
a well -developed telecommu nications market such as China?  
Reply  
In recent years, China's  telecommunications market has attracted growing attention from foreign 
capital, with an increasing number of foreign -invested enterprises applying to conduct value -added 
telecommunications business in China. However, compared with more mature telecommunic ations 
markets, China's  telecommunications market has received fewer applications from the foreign 
investors. For the eligible companies that have submitted all the required application materials, their 
applications are accepted in accordance with the exam ination and approval procedures of 
administrative licensing by the Chinese regulatory authorities. Relevant licen ces are issued once the 
applications are examined and approved.  WT/TPR/M/3 75/Add.1  
 
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  Question  
c. How many of the foreign -invested value -added telecommunications compan ies are wholly 
foreign -owned and for what types of value -added telecommunications services?  
Reply  
By the end of 2017, there are 24 wholly foreign -owned enterprises providing value -added 
telecommunications services, mainly for E -commerce and call centre  business.  
4.4.1.2 Regulatory framework , page 149, paragraph 4.119  
Question  
It is the United States understanding that a new Telecommunications Law, whose first draft dates 
back to 2004, is still being re -drafted and reviewed within the Chinese Government. When will an 
updated draft of the Telecommunications Law be circulated for public comment?  
Reply  
At present, China is still revising and improving the draft Telecommunications Law , and once that 
work is completed, public comme nt will be sought in due cours e. 
Page 149, T able 4.24  
Question  
Table 4.24 , "Telecom services opened to foreign investment ," includes a list of telecommunications 
sub-sectors that have been liberalized in the Shanghai Free Trade Zone. However, there does not 
appear to be significant ind ustry interest in any of these sub -sectors, while there are many other 
telecommunications sub -sectors that are of high interest to industry but still face significant market 
access barriers. How many foreign companies have requested and been approved for l icences to 
provide services in each of the liberalized telecommunications sub -sectors in the Shanghai Free 
Trade Zone?  
Reply  
By the end of 2017, 34 pilot projects have been approved in the Shanghai Free Trade Zone; among 
which four are for information ser vices, 22 for online data processing and transaction processing, 
four for domestic call centre s, one for Internet access services, two for Internet protocol virtual 
private network (IP -VPN), and one for domestic multi -party communication services.  
Page 150, T able 4.25  
This table provides a helpful listing of certain of China's  GATS commitments by category and their 
correspondence with China's  2015 telecommunications catalogue.  This correspondence covers only 
a subset of the 2015 telecommunications catalo gue, however.  
Question  
a. Since China's  GATS commitments in value -added telecommunications services sub -sectors 
are not based on a closed list (i.e., China's  GATS commitments state that they include, and thus are 
not limited to, the specifically enumerated services), can China confirm that all of the value -added 
telecommunications services sub -sectors listed in the 2015 telecommunications catalogue are open 
to foreign investment?  
Reply 
All the value -added telecommunications services listed in China's  Schedule of Specific Commitments 
on Services have been open to f oreign investment as committed. The value -added WT/TPR/M/3 75/Add.1  
 
- 142 - 
 
  telecommunications services listed in the 2015 tel ecommunications catalogue are not all covered by 
China's  Schedules of Specific Commitments on Services.  
Question  
b. With regard to both basic and value -added telecommunications services, to the extent that 
China maintains that it has not made market access co mmitments, can China identify the domestic 
legal instrument that authorizes China's  regulatory authorities to discriminate against a foreign 
supplier seeking to obtain a licen ce for a particular service listed in the 2015 telecommunications 
catalogue?  
Reply  
No laws or regulations pose discrimination against foreign -funded telecommunications service 
providers. For the eligible companies that have submitted all the required application materials, their 
applications are accepted in accordance with the exam ination and approval procedures of 
administrative licensing by the Chinese regulatory authorities. Relevant licen ces are issued once the 
applications are examined and approved.  
Page 152, paragraph 4.129  
The Secretariat's  report discusses China's  pilot programme  regarding mobile virtual network 
operators (MVNOs), i.e., the mobile communications resale business, and notes that, "at present, 
42 private enterprises have obtained approval " to engage in the pilot programme . 
Question  
a. Is it accurate to assume that  none of those 42 private enterprises is a foreign -invested 
enterprise?  
Reply  
None of those 42 private enterprises is a foreign -invested enterprise. Chinese regulatory authorities 
initiated the pilot projects of mobile communications resale business in 20 13, with the view to 
channelling  private capital into the telecommunications services sector, and exploring and improving 
the relevant access and regulatory policies.  
Question  
b. Although the initial pilot project explicitly prevented foreign suppliers from participating in the 
project, can China confirm that foreign suppliers are now eligible to participate, both as pilot 
participants and as licensed MVNO operators? If so, can China confirm that foreign operators will be 
able to participate through joint ven tures with up to 50 % foreign equity, i.e., the level available for 
other suppliers of value -added telecommunications services?  
Reply  
On 28 April 2018, Chinese regulatory authorities published a Notice on the Formal Commercialization 
of Mobile Telecom Resal e Business (MIIT telecommunications [2018] No. 70). From 1 May 2018, the 
mobile telecommunications resale business has been formally commercialized from pilot projects 
and made open to foreign operators. This business is categorized as mobile cellular comm unications 
services provided by resale. According to China's  WTO commitments, the foreign equity cap is 49%.  
Question   
c. On 24 January 2018, MIIT published a draft Notice on the Formal Commercialization of Mobile 
Telecom Resale Business for public comment. T he draft Notice proposed to allow private enterprises, 
including foreign -invested enterprises, to apply to MIIT for approval to provide mobile 
telecommunications resale services. However, the draft Notice did not provide clear guidance on 
what specific obl igations or application procedures an applicant enterprise would need to comply 
with to be approved to provide these services. Can China explain the specific obligations or WT/TPR/M/3 75/Add.1  
 
- 143 - 
 
  application procedures that an applicant enterprise would need to comply with? In a ddition, can 
China explain whether any foreign equity caps, state -owned enterprise partnership requirements or 
minimum registered capital requirements would apply to an applicant enterprise and whether the 
same regulatory requirements would apply to both d omestic and foreign -invested companies?  
Reply  
Foreign -invested enterprises can apply for relevant licen ces of mobile telecommunications resale 
business in accordance with the Telecommunications Regulations of the People 's Republic of China , 
the Stipulations on the Administration of Foreign -Invested Telecommunications Enterprises , and the  
Administrative Measures for the Licensing of Telecommunication Business Operations . This business 
is categorized as mobile cellular communications services prov ided by resale. According to China's  
WTO commitments, the foreign equity cap is 49%. There is no requirement for partnership with 
state-owned enterprises, and the required minimum registered capital is subject to the  Stipulations 
on Administration of Forei gn-Invested Telecommunications Enterprises . Once approved, foreign -
invested enterprises enjoy national treatment and are subject to the same regulatory requirements 
as domestically -funded enterprises.  
Page 152, paragraphs 4.132 -4.133  
The Secretariat's  report discusses China 's approach to regulating and managing cloud computing 
services, including ongoing work to formulate a new legal framework for these services. Chinese 
cloud computing providers benefit from a great deal of openness from foreign marke ts and are 
already very active globally. In comparison, China severely restricts foreign enterprises seeking to 
provide cloud services in China 's own market. As the Secretariat's  report states, "foreign -funded 
enterprises will [be limited only to] technica l cooperation with Chinese enterprises with relevant 
licence qualifications. " China also forces these foreign enterprises to turn over their technologies and 
brands to their Chinese partners as the price for obtaining what amounts to minimal, uncertain 
access to China 's market.  
Question  
On what legal basis does China currently restrict foreign suppliers of cloud services? Is there any 
existing measure in China that prohibits foreign suppliers from offering cloud services and, if so, 
what specific measure ex plicitly prohibits a foreign supplier from offering cloud services? If it exists, 
is this measure publicly available? If so, please indicate where it is available.  
a. Can China explain the steps that it will take to rebalance access in this critical sector to  allow 
foreign suppliers the full access to which they are entitled?  
Reply  
According to the Classification Catalogue of Telecommunications Services (2015 Version), cloud 
service is a concrete form of Internet Data Center (IDC) services. China did not commi t to open IDC 
services to foreign investment when it acceded to the WTO. Based on its laws and regulations such 
as the Telecommunications Regulations, China's  cloud service administration is in line with 
international rules and commensurate with the development history of China's  cloud service industry. 
Out of consideration of the country 's cybersecurity, information security  and protection of privacy 
data of v ast number of internet users in China, China's  cloud service is not open to foreign 
investment, which is consistent with WTO rules and China 's commitments on its WTO accession. 
China is exploring joint cloud service provision through technical cooperation between Chinese and 
foreign enterprises, where the Chinese enterprise apply for cloud services licen ces, and conduct 
technical cooperation with the foreign -invested enterprises, without forcing the transfer of technical 
brands by foreign -invested e nterpris es. Current cooperation  of this kind includes  those of Amazon, 
Sinnet, and NWCD Cloud running cloud services in Ningxia Hui Autonomous Region, of Microsoft and 
21vianet, as well as of Apple and Guizhou -cloud Big Data.  WT/TPR/M/3 75/Add.1  
 
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  Question   
b. China has GATS commitments u nder the Computer and Relates Services sector, in particular 
for computer time -sharing services that overlap with cloud computing services. Computer time -
sharing services, by definition, are services provided over telecommunications networks, and China 
included no limitations for these services in its GATS schedule. Has China licensed any suppliers of 
computer time -sharing services? What regulatory category does China apply to these services? If 
China considers computer time -sharing services to be subject t o the 2015 telecommunications 
catalogue, please identify the applicable licensing category.  
Reply  
Cloud computing services were not part of China's  WTO commitments. China is willing to discuss 
with other member the categorization of cloud computing in the Committee on Specific Commitments.  
Page 152, paragraphs 4.134 -4.135  
The Secretariat's  report discusses MIITs Notice on Cleaning Up and Regulating the Internet Access 
Services Market, dated 17 January 2017.  
Question  
a. Some concerns have been expressed that de pending on how China implements this Notice, 
foreign trade and multinational enterprises based in China may face new impediments in terms of 
using virtual private networks or leased lines to communicate with their affiliates, including their 
providers of c loud computing services. While China has clarified that "normal " business operations 
will not be affected by this Notice, could China further clarify what it understands "normal " would 
cover? For example, in other contexts, China has explained its intention that "internal 
communications " would not be disrupted. However, that explanation still calls into question whether 
all necessary cross -border communications of foreign enterpri ses would be protected.  
Reply  
Drawing on the earlier Measures on Administration of International Communication Import and 
Export Board (Decree No. 22 of 2002 by the former Ministry of Information Industry), the stipulations 
on cross -border business activi ties in the Notice on Cleaning Up and Regulating the Internet Access 
Services Market (hereinafter referred to as the Notice) are mainly targeted at cross -border 
telecommunication services conducted by enterprises or individuals, who are unauthorized by the  
competent telecommunications regulators and with no business qualification for international 
telecommunications services, using leased lines or VPN. Regulations in the Notice will not affect 
normal cross -border internet access or legal and compliant busin ess operations of domestic and 
foreign enterprises as well as users. Foreign trade companies and transnational corporations, f or 
purposes of business -related self-use of cross -border communications, can apply to 
telecommunications business operators with a  legally set International Communication Import and 
Export Board, and their normal business operations will not be affected. Anyone who lives, engages 
in production and conducts other kinds of business operations in China shall abide by Chinese laws 
and re gulations. All legal activities are protected by law.  
Question   
b. The GATS Annex on Telecommunications ensures that all service suppliers covered by a  
Member 's specific commitments can use public telecommunications networks, including leased lines, 
for the movement of data domestically and cross -border. While this provision explicitly applies to 
intra-corporate communications, it is also not limited to such activity. MIITs Notice appears to 
preclude the use of virtual private networks and leased lines for al l but internal communications. Is 
that understanding correct?  Under the Notice, what is the scope of "internal communications " for 
which a virtual private network or leased line can be used? Would this scope include an enterprise 
using a virtual private ne twork or leased line to connect to another provider of cloud computing 
services established outside China? What, specifically, is excluded through this Notice?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Virtual private networks and leased lines can only be used for intra -corporate communicat ions, which 
include intra -corporate information exchange or update by using corporate internal network system, 
corporate internal email system and office automation system. In conducting intra -corporate cross -
border telecommunications, enterprises shall le ase cross -border virtual private network or specific 
lines from eligible lawful telecommunication business operators, and for internal use only.  
Question  
c. China describes certain services identified in the 2015 telecommunications catalogue as IDC 
services, ISP services and CDN services. Are foreign suppliers eligible to obtain licen ces to supply 
each of these services? If not, what domestic legal instrument gives a regulator the authority to 
discriminate against a foreign supplier seeking to obtain licen ces for these services? If it exists, is 
this measure publicly available? If so, please indicate where it is available.  
Reply  
The WTO Schedule of Specific Commitments on Services is a positive list. IDC services, ISP services 
and CDN services are not listed in  that Schedule of China as committed telecommunications services. 
Therefore, according to China 's WTO commitments, the above -mentioned three services are not 
open to foreign investment.  
Page 153, paragraph  4.136  
The Secretariat's  report discusses various aspects of China's  problematic Cybersecurity Law, which 
entered into force on 1 June 2017.  
Question  
a. The United States and other WTO members have expressed a high degree of concern, 
including during GATS Council meetings, regarding China's  policies affectin g cross -border data flows 
and China's  data localization policies, including various draft and final measures implementing 
China's  Cybersecurity Law, such as the Measures on the Security Assessment of Cross -Border 
Transfer of Personal Information and Import ant Data and the draft National Standard Information 
Security Technology Guidelines for Data Cross -border Transfer Security Assessment. China's  
measures would disrupt, deter and in many cases,  prohibit the cross -border transfers of information 
and data tha t are routine in the ordinary course of business. These measures also would apply to 
"network operators, " which could encompass a wide range of foreign companies, and would restrict 
"important data " and "personal information " unless a broad set of burdenso me conditions are 
satisfied. Apart from the severe policy implications, as a practical matter, it seems impossible for 
any business, whether Chinese or foreign, to be able to evaluate and apply these measures. These 
measures also would impose local data st orage requirements on operators in "critical information 
infrastructure sectors, " which are defined in broad and vague terms. Can China confirm that it 
intends to revise its approach to take into account the serious concerns that have been raised by 
intern ational stakeholders, including governments and industry?  
Reply  
China believes that the United States  high degree of concern about China's  policies regarding cross -
border data flows and data localization mainly derives from misunderstanding of China's  laws, 
regulations and policies related to cybersecurity. To accurately understand relevant policies, the 
following points should be noted. Firstly, the relevant requirements apply to operators of critical 
information infrastructure, instead of all network  operators. Secondly, relevant requirements apply 
only to important data, instead of all data; and only to data of importance to the country, but not in 
the sense of enterprises or individuals. Thirdly, cross -border transfer of data may be allowed 
accordin g to the institutional arrangement made by law, so long as such transfers are proved to be 
of no harm to national security or public interests after security assessment. In addition, the purpose 
for China to stipulate and implement the Cybersecurity Law an d relevant systems including cross -
border data transfer security assessment is not to prohibit cross -border data flows, but rather to 
safeguard cyberspace sovereignty and national security, maintain social public welfare, and protect WT/TPR/M/3 75/Add.1  
 
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  the rights and interes ts of Chinese citizens, legal persons and other organizations. It is neither 
targeted at certain countries or regions, nor discriminatory among various countries  or over foreign 
technologies and products. International trade won't  be restricted. Cross -border data flows have 
become a premise for economic globalization, and China is willing to broaden exchange and 
cooperation with other countries on this matter, jointly promote legal and orderly cross -border 
transfer of data, and adequately protect personal i nformation security  and national cybersecurity.  
Question   
b. On 17 March 2018, China's  State Council issued the Measures for Administration of Scientific 
Data, which took immediate effect. This measure includes basic rules for managing "scientific data " 
in Ch ina and would, inter alia , restrict cross -border transfers of this data. While the definition of 
"scientific data " is not clear, China does propose to prohibit the opening or sharing abroad of scientific 
data concerned with "state secrets, public interests , trade secrets and personal privacy. " Can China 
confirm that it will take into account any questions and concerns that international stakeholders 
have raised regarding this measure in determining how it will implement it going forward?  
Reply  
Please refer to the answer to question a.  
Page 153, paragraph 4.137  
The Secretariat's  report notes that Article 21 of the Cybersecurity Law institutes a "tiered system of 
network security protection " to protect certain networks. This tiered system also has been described 
as an update to the MPSs existing Multi -Level Protection Scheme (MLPS).  
Question  
a. When does China anticipate issuing draft measures for public comment detailing the terms of 
the update  to MLPS?  
Reply  
China is currently drafting the Multi -Level Protection Scheme (MLPS), and will released it in due time.  
Question  
b. Will any update to MLPS maintain existing requirements calling for the inclusion of indigenous 
intellectual property in systems  graded above MLPS Level 3?  
Reply  
Please refer to the answer to question a.  
Question  
c. Could China explain the links between MLPS and the Cybersecurity Review Regime 
assessments detailed under the Cybersecurity Law and related measures issued by CAC?  
Reply  
The Multi -Level Protection Scheme (MLPS) is implemented in accordance with the Cybersecurity Law, 
which clearly identifies basic requirements for implementing MLPS based on previous work on 
multi-level information security protection and new situations as well as new features of 
cybersecurity. It marks a new stage for multi -level protection scheme.  WT/TPR/M/3 75/Add.1  
 
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  Question  
d. Will either network operators or information and communications technology (ICT) suppliers 
be required to share copies of their source code or encryptio n keys as part of either the updated 
MLPS review and certification assessment process or the Cybersecuri ty Review Regime assessments?  
Reply  
Please refer to the answer to question a.  
Question  
e. A December 2017 report by China's  National People 's Congress on Cybersecurity Law 
implementation stated that 140,000 information systems used by the government, the Communist 
Party, and state -owned and other enterprises nationwide have been identified as subject to MLPS 
security restrictions related to the use of forei gn technology, with 123,000 of the institutions 
designated as Levels 1 -3. Can China explain where WTO Members can find a list of the 
123,000  institutions graded as MLPS Levels 1 -3? Is any other information available regarding these 
institutions or the rati onale for their level designation?  
Reply  
The information system identified as the tier -1 security protection shall be protected by its operator 
at its discretion; the information system identified as the tier -2 security protection shall be registered 
at th e public security bureau. The operator of information system and its protection tier and 
registration should not be open to unless the operator reveals it on a voluntary basis.  
Page 153, paragraph 4.138  
The Secretariat's  report notes that Article 23 of the Cybersecurity Law stipulates that certain "critical 
network equipment and specialized network security products " shall undergo security testing by a 
"qualified establishment " before being sold or provided.  
Question  
a. Which entities are considered to be "qualified establishments " for testing purposes?  
Reply  
According to the Announcement  on the Issuance of the Directory of Safety Certification and Safety 
Testing Tasks for Key Equipment and Network Security Products (First Batch) (CNAT 2018 
Announcement No.  12) by Certification and Accreditation Administration of China, Ministry of 
Industr y and Information Technology of China, Ministry of Public Security of China and Cyberspace 
Administration of China and the Announcement on the Implementation Requirements for the Safety 
Certification of Key Online Equipment and Special Products for Network  Security (CNAT 2018 
Announcement No.  24) by CNAT and Cyberspace Administration of China, qualified establishments 
have been made clear.  
Question  
b. Are foreign laboratories eligible to test to Chinese standards under this Article? If so, what 
must the foreig n laboratories do to be considered "qualified "? 
Reply  
The establishments that are compliant with the relevant provisions in the Directory of Safety 
Certification and Safety Testing Tasks for Key Equipment and Network Security Products (First Batch) 
(CNAT 2 018 Announcement No.12) by Certification and Accreditation Administration of China, 
Ministry of Industry and Information Technology of China, Ministry of Public Security of China and 
Cyberspace Administration of China, and relevant provisions in the Announ cement on the WT/TPR/M/3 75/Add.1  
 
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  Implementation Requirements for the Safety Certification of Key Online Equipment and Special 
Products for Network Security (CNAT 2018 Announcement No.  24) by CNAT and Cyberspace 
Administration of China can be regarded as the qualified establi shments.  
Question  
c. Does China have any plans to recognize foreign laboratories as "qualified " on the basis of a 
mutual recognition regime?  
Reply  
China carries out the qualification recognition according to the relevant provisions in the Directory 
of Safety Certification and Safety Testing Tasks for Key Equipment and Network Security Products 
(First Batch) (CNAT 2018 Announcement No.  12) by Certification and Accreditation Administration 
of China, Ministry of Industry and Information Technology of China, Ministry of Public Security of 
China and Cyberspace Administration of China, and relevant provisions in the Announcement on the 
Implem entation Requirements for the Safety Certification of Key Online Equipment and Special 
Products for Network Security (CNAT 2018 Announcement No.24)  by CNAT and Cyberspace 
Administration of China.  
Page 153, paragraphs 4.139 -4.140  
Article 31 of the Cybersec urity Law subjects network operators of "critical information infrastructure " 
to additional obligations. Critical information infrastructure is defined to include a broad scope of the 
economy, including "public communication and information services, power , traffic, water 
infrastructure, finance, public service, electronic governance and other critical information 
infrastructure that if destroyed, losing functions or leaking data might seriously endanger national 
security, national welfare and the people's livelihood, or the public interest, on the basis of their 
tiered protection system. " 
Question  
a. How will China ensure that foreign service suppliers have certainty regarding their inclusion 
or exclusion from the scope of this measure?  
Reply  
The purpose of  the critical information infrastructure protection system is to ensure the security of 
information systems and faci lities involving national security, national welfare and the people's 
livelihood, as well as public interests. Various countries experience has shown that to clearly identify 
critical information infrastructure is highly complicated and is a process calling for continuing 
improvement and adjustment in practice. Currently the Cyberspace Administration of China is 
working with relevant departmen ts to formulate  Regulations on Security Protection of Critical 
Information Infrastructure  based on the  Cybersecurity  Law of PRC, to guide related sectors to define 
the specific scope of critical information infrastructure.  
Question  
b. China has undertaken commitments for liberalization under the GATS in various sectors, 
including computer -related services and financial services. How will China ensure that its 
implementation of this measure will not interfere with its GATS commitments?  
Reply   
Every country is entitled to formulate relevant laws and administrative regulations according to its 
national conditions and by learning from international practices, and to manage its cyberspace 
according to law. The purpose for China to formulate and impl ement the Cybersecurity Law and 
accompanying regulations is to safeguard cyberspace sovereignty and national security, maintain 
social public welfare, and protect the rights and interests of Chinese citizens, legal persons and other 
organizations. It is no t to restrict market access of foreign enterprises, technologies  or product, not WT/TPR/M/3 75/Add.1  
 
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  to curb the legal and orderly flow of data, and will not affect China commitments under GATS 
framework.  
Page 154, paragraph 4.141  
The Secretariat's  report notes that Article 37 of the Cybersecurity Law requires "critical information 
infrastructure " operators to localize "personal information and important data " gathered or produced 
within mainland China and to conduct security assessments when transf erring this information and 
data abroad is "truly necessary. " 
Question  
a. What criteria does China use to determine whether an information infrastructure is "critical "? 
Are these criteria publicly available?  
Reply  
The purpose of the critical information infra structure protection system is to ensure the security of 
information systems and faci lities involving national security, national welfare and the people's 
livelihood, as well as public interests. Various countries experience has shown that to clearly ident ify 
critical information infrastructure is highly complicated and is a process calling for continuing 
improvement and adjustment in practice. Currently the Cyberspace Administration of China is 
working with relevant departments to formulate  Regulations on Security Protection of Critical 
Information Infrastructure  based on the  Cybersecurity  Law of PRC, to guide related sectors to define 
the specific scope of critical information infrastructure.  
Question  
b. What criteria does China use to determine whether data is "important "? Are these criteria 
publicly available?  
Reply  
In order to carry out the relevant provisions in the  Cybersecurity Law of PRC , China is now working 
on the Measures on the Security Assessme nt of Personal Information and Important Data . 
Question  
c. What criteria does China use to determine whether data is "necessary " for a company to 
export, particularly in the context of Mode 1 services, where the premise is that the foreign service 
supplier, w hose service may involve both personal or other information China may deem "important ", 
is by definition outside China? Are these criteria publicly available?  
Reply  
Please refer to the answer to question b.  
Question  
d. While it may be technically possible for a Mode 1 supplier also to localize data relevant to its 
service, it may not be economically feasible, particularly for small and medium -sized enterprises. 
How can the rights associated with Mode 1 services be reconc iled with China's  data localization 
requirements?  
Reply  
Please refer to the answer to question b.  WT/TPR/M/3 75/Add.1  
 
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  Question  
e. Please explain whether these data localization requirements apply only to original information 
and data or also to copies thereof.  
Reply  
Please refer  to the answer to question b.  
f. Can duplicate copies of information and data be stored overseas for redundancy or other 
business purposes? If so, under what conditions?  
Reply  
Please refer to the answer to question b.  
4.4.2 Financial services , page 154, B ox 4.2  
Question  
In order to provide a sense for whether foreign insurance companies have obtained meaningful 
penetration of China's  market, could China identify the market share for foreign -invested companies 
for life insurance and for property and casualt y insurance?  
Reply   
The market share of foreign property insurance companies in 2016 was 2.04%, and the share of 
foreign life insurance companies was 6.40%. The share of foreign property insurance companies in 
2017 was 1.96%, and that of foreign life insur ance companies was 7.43%.  
Page 156, paragraphs 4.147 -4.148   
Question  
The Secretariat's  report notes that China has not yet approved any applicants for the establishment 
of bank card clearing institutions seeking to provide electronic payment services for domestic 
currency payment card transactions in China. As China knows, a WTO panel ruled six years ago that 
China should have opened up this sector to foreign suppliers by 11 December 2006, or nearly 
12 years ago. When will China finally open up this sector  to all interested suppliers of electronic 
payment services?  
The United States notes that, in 2017, thr ee US suppliers of  electronic payment services submitted 
applications to begin preparatory work, which is the first stage of the two -stage process estab lished 
by the People 's Bank of China (PBOC) for securing a licen ce to provide electronic payment services 
for domestic currency payment card transactions in China. To date, however, not one of those 
applications has been granted.  
Reply  
By far, the three in ternational credit card companies  American Express, MasterCard and VISA have 
set up legal persons in the territory of China and submitted to the People 's Bank of China their 
applications for incorporating bank card settlement institutions. The People 's Bank of China has kept 
close communication with the companies regarding their applications and provided necessary 
guidance, and officially issued an acceptance sheet of administrative licensing item to American 
Express local applicant for its application  on 25 May 2018. The applications by MasterCard and VISA 
are now under primary review. The People 's Bank of China is not in a position to accept them for now 
due to the problems regarding completeness and compliance of the submitted materials. The People 's 
Bank of China will continue to follow the relevant regulations and systems on entry of bank card 
settlement organization, and the principles of transparency, fairness and impartiality to review the WT/TPR/M/3 75/Add.1  
 
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  accepted application, and keep communication with the rel evant company on matter related to its 
application.  
Page 156, paragraph 4.154  
The Secretariat's  report notes that, until recently, China limited foreign credit rating agencies to 
minority stakes in joint ventures. While China also has expanded the types of  rating services that 
can be offered by foreign credit rating agencies in China, restrictions remain.  
Question  
a. It appears that recently issued measures by China would only allow wholly foreign -owned 
enterprises to rate bonds issued by offshore entities (i.e., "Panda Bonds "). If this is correct, does 
China have any plans to enable wholly foreign -owned enterprises to  rate a full range of debt? Please 
explain.  
Reply  
In July 2017, the People 's Bank of China has issued the announcement on relevant matters regarding 
the opening -up of credit rating industry ( Announcement  of the People 's Bank of China [2017] No.  7). 
It specifies that eligible foreign credit rating agencies (CRAs), upon registration with National 
Association of Financial Market Institutional Investors (NAFMII), can provide inter -bank bond market 
rating services. When conducting such business, forei gn CRAs may choose to establish commercial 
presence in China or provide cross -border services via overseas entities. In March  2018, NAFMII 
issued the Rules for Registration Evaluation of Inter -Bank Bonds Market Credit Rating Agencies , and 
started registrat ion evaluation in early May. There is no restriction on the business scope of foreign 
CRAs, and they can choose to register for different rating businesses, including credit rating of 
financial institution bonds, debt financing instruments of non -financial  enterprises, structured 
products and bonds issued by overseas entities.  
Question  
b. Under China's  current regulatory approach, it appears that, in addition to the PBOC, other 
regulators also may have some responsibility for certain aspects of the licensing p rocess. Can China 
explain how it intends to operate its licensing process going forward? When will China fully liberalize 
the scope of services that foreign credit rating agencies can offer?  
Reply  
Please refer to the answer to question a.  
Page 157, paragra ph 4.155  
The Secretariat's  report refers to a November 2017 announcement that China will lift its equity caps 
on single and multiple foreign investors in Chinese -owned banks. In that same announcement, China 
indicated that it will apply the same set of rul es for investment in the banking sector to both domestic 
and foreign companies. The actual implementing measure, the China Banking Regulatory 
Commission (CBRC) Decision on Amending the Implementation Rules on Administrative Licensing 
for Foreign Banks, iss ued in February 2018, only applies to foreign investors. Consequently, it is not 
clear that this measure represents a unified set of rules that will apply equally to domestic and 
foreign investors.  
Question   
a. What is China's  intention with regard to the treatment of domestic and foreign companies in 
the banking sector? Does China intend to apply full national treatment, or only national treatment 
in certain circumstances?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In February 2018, the former China Banking Regu latory Commission (CBRC)  issued the Decision on 
Amending the CBRC Implementation Rules on Administrative Licensing for Foreign Banks , in which 
the following three amendments were made to the Implementation Rules : First, adding the 
provisions on the licensi ng conditions, procedures and application materials for the establishment of 
foreign -funded banks and their investment in domestic banking financial institutions. Second, 
removing the examination and approval of four items of services provided by foreign b anks, including 
overseas financial management for clients, overseas financial management and custody for clients, 
securities investment fund custody and withdrawal of interest -earning assets by liquidated foreign -
funded financial institutions. A reporting system has been adopted. Third, further unifying the market 
access standards for Chinese and foreign banks: combining the approval procedures for branch 
establishment preparation and opening while maintaining only the approval for branches opening; 
optimiz ing the conditions for foreign banks to raise and issue debts and for capital supplement tools; 
simplifying the procedures for reviewing senior management qualifications. The prior approval for 
lateral reassignment or transfer to lower positions among fore ign-funded banks of the same nature 
and kind has been changed to a filing system. It should be noted that the CBRC Implementation 
Rules on Administrative Licensing for Foreign Banks  are applicable to foreign banks established in 
China, including wholly for eign-funded banks, Chinese -foreign equity joint banks, foreign bank 
branches and foreign bank representative offices. The Rules mainly stipulate the conditions, 
procedures and time limit for administrative licensing issues for foreign -funded banks to estab lish, 
change and terminate the institutions and to get approval for business and senior management 
qualifications, etc., which does not involve the shareholding ratio cap of individual or multiple foreign 
investors in Chinese -funded banks.  
Question  
b. In addi tion, on 8 June 2018, the new China Banking and Insurance Regulatory Commission 
(CBIRC) published and started a public consultation on a proposal to abolish the same foreign equity 
caps described above. Can China clarify the purpose of this public consulta tion given that the 
February 2018 CBRC measure already appear s to have addressed this issue.  
Reply  
In the development of China's  economy and banking industry, the design of access policies for 
foreign -invested institutions used to focus more on catering to  China's  economic, financial and 
market development stages and the domestic legal environment and attracting foreign institutions 
with strength, international reputation and management experience that are familiar with the 
Chinese market, so as to ensure their sus tainable and sound development in China. The gradual 
replacement of quantitative limitation by institutionalized management as well as full implementation 
of pre -establishment national treatment and a negative list approach has been a major reform 
orientat ion in recent years and for a future period. In order to further implement the opening -up 
measures to lift the foreign equity caps in Chinese banks and financial asset management companies, 
the China Banking and Insurance Regulatory Commission has formulat ed the Decision on the 
Abolition and Amendments of Some Regulations (Draft for Comments)  (hereinafter referred to as 
the Decision). The Decision has been released for public comment until 8 July. After that, China 
Banking and Insurance Regulatory Commissio n will amend, improve and officially issue the Decision 
as soon as possible to implement the measures to eliminate foreign equity caps.  
Question  
c. In its November 2017 announcement, China stated that it will lift the foreign equity cap to 
allow wholly foreig n-owned enterprises to engage in financial asset management services (i.e., 
companies that buy the distressed assets of banks). When does China plan to issue a proposed 
measure for public comment implementing this promise?  
Reply  
Please refer to the answers  to Question b.  WT/TPR/M/3 75/Add.1  
 
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  Page 158, paragraph 4.160  
The Secretariat's  report discusses regulatory developments for insurance services.  
Question  
a. On 30 May 2018, CIRC published draft Administrative Regulations on Foreign -Invested 
Insurance Companies. It appears that this draft measure would remove the two -year representative 
office requirement currently applicable to fore ign companies. Is that correct?  
Reply  
Correct.  
Question  
b. The draft Administrative Regulations would maintain the requirement of "at least thirty years  
of prior experience. " Why does China believe that it is necessary to require so much prior experience 
for foreign companies, particularly in light of the fact that domestic companies are not likely to be 
able to satisfy, or be held to, the same standard? Can China's  regulatory objectives be met through 
other means?   
Reply  
The requirement that the investor shall be a foreign insurance company with more than 30 years of 
establishment experience in a WTO member is a condition clearly set in China's  WTO Schedule of 
Specific Commitments on Ser vices. This condition is a basic requirement  for a foreign insurance 
company' s comprehensive strength, operational capability and commitment to the Chinese market, 
which has played an important role in the openin g up of the Chinese insurance industry.  
Question  
c. China recently issued draft Implementation Rules for the draft Administrative Regulations on 
Foreign -Invested Insurance Companies. Do the draft Implementation Rules apply to life insurance, 
health insurance and pensions insurance?  
Reply  
Yes, they do.  
Page 159, paragraph 4.170  
The Secretariat's  report discusses regulatory developments in the area of pension funds, also known 
as enterprise annuities.  
Question   
a. It appears that, in order to provide a full scope of enterprise annuity services, an entity 
requires at least four separate types of licen ces from various Chinese regulatory authorities. At the 
same time, it appears that it has been several years since China's  regulatory authorities have been 
willing to a ccept applications for the relevant licen ces. When did China most recently accept 
applications for the relevant licen ces? Why doesn't  China accept these applications on a continuing 
basis for all qualified applicants?  
Reply  
China implements market access for enterprise annuity fund management institutions based on four 
qualifications: entrusted management, custody, account management and investment management. 
The establishment of four different manager qualifications is prim arily because the enterprise annuity 
fund is managed in the trust model. Each manager performs his/her own duties and keeps an eye WT/TPR/M/3 75/Add.1  
 
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  on the others. Strengthened risk control and isolation in the governance structure can ensure the 
operation and management security  of the annuity fund. The development of enterprise and 
occupational annuities in China is still in its infancy. In 2005 and 2007, Chinese regulators accredited 
two batches of enterprise annuity fund management institutions respectively upon expert r eviews. 
The qualification is valid for three  years and shall be subject to another review when the time limit 
expires. In recent years, some of the licen ces have been adjusted in accordance with the principle 
of balance between increase and cancellation. T he most recent application for relevant licen ces was 
accepted in May this year and the qualification was accredited in June.  
Question  
b. How many domestic companies have received all four types of licen ces relating to enterprise 
annuity services?  
Reply  
At present, there are 35 management institutions and 63 management qualifications in the Chinese 
enterprise annuity market, which include 13 entrusted management qualifications, 18 account 
management qualifications, 10 custody qualifications and 22 investment m anagement qualifications. 
At the same time, in accordance with relevant stipulations, the market management organization of 
the occupational annuity fund is selected from the institutions with enterprise annuity management 
qualifications.  
Question  
c. How many  foreign companies have received all four types of licen ces relating to enterprise 
annuity services?  
Reply  
According to the current policy, all financial institutions, including commercial banks, securities 
companies, securities investment fund management  companies and insurance institutions, etc., that 
have registered in China and been approved by the financial regulators may apply for enterprise 
annuity fund management qualification in accordance with the relevant stipulations on qualification 
recognitio n. China has imposed no restrictions on the application of foreign -invested financial 
institutions for annuity management. Quite a number of institutions currently with the qualifications 
for enterprise annuity fund management are foreign -invested ones.  
4.4.2.7 Regulatory developments concerning e -payments , page 160, 
paragraphs  4.171 -4.172  
Question  
The Secretariat's  report states that the PBOC currently is preparing regulations that will set out 
market access conditions and a licensing process for foreign companies seeking to supply 
e-payments, e.g., Internet -enabled and mobile payment services. Can China provide an update on 
any regulations or other measures that the PBOC has issued in this area recently?  
Reply   
On 21 March 2018, the People 's Bank of China issued the Announcement No. 7, stating explicitly the 
access (including conditions and procedures) and regulator y policies of foreign -invested payment 
institutions, and granting comprehensive national treatment to them. The Announcement No. 7 and 
the Administrative Measures for the Payment Services Provided by Non -Financial  Institutions (Order 
[2010] No. 2 of the People 's Bank of China) have together constituted the regulatory framework for 
domestic and foreign payment institutions, and realized the unification of access conditions and 
regulatory policies for domestic and foreign payment institutions.  WT/TPR/M/3 75/Add.1  
 
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  4.4.3 Legal s ervices , page 160, paragraph 4.173  
Question  
What is China's  policy rationale for imposing nationality requirements on the ability to supply legal 
advice on Chinese commercial law?  
Reply  
The Regulations on Administration of Foreign Law Firms Representative Offices in China  stipulates 
that A  representative office and its representatives may only conduct the following activities that 
does not encompass Chinese law practice: ...; Article 2 of the Provisions of the Ministry of Justice 
on the Implementation of th e Regulations on Administration of Foreign Law Firms Representative 
Offices in China  stipulates that foreign law firms shall refer to independent legal practising entities 
duly established outside China, composed of foreign practising lawyers, engaged in l egal services 
other than Chinese law practice... Moreover, in view of the differences between legal systems of 
different countries, it is an international practice that foreign law firms shall not provide legal services 
in their host country. Therefore, fo reign law firms are not allowed to engage in Chinese law practice, 
and this conforms to China's  WTO commitments.  
Page 160, paragraph 4.174  
Question  
The Secretariat's  report, in paragraph 4.174, suggests that permanent residents of the Hong Kong 
Special Ad ministrative Region and the Macao Special Administrative Region need not be Chinese 
nationals to take the national legal qualification exam. However, paragraph 4.180 seems to indicate 
that Chinese nationality is required for these residents. Which is corre ct? 
Reply  
According to Article 2 of Certain  Provisions on Hong Kong SAR and Macao SAR Permanent Residents' 
Taking of the National Uniform Judicial Examination  (Order No. 94 of 2005) , permanent residents of 
Hong Kong SAR and Macao SAR with Chinese nationali ty may sit for the National Uniform Judicial 
Examination.  
Page 160, paragraph 4.175  
Question  
Why does China continue to limit foreign law firms in China from employing Chinese qualified 
lawyers? There does not seem to be any sound regulatory reason for this restriction. Flexibility in 
this regard would significantly expand training and future employment opportunities for Chinese law 
students and would allow Chinese companies to expand more efficiently by enabling integration of 
their counsel in China wit h worldwide legal specialists.  
Reply  
According to the provisions of Lawyers Law of the People's Republic of China , those with Chinese 
lawyer qualifications are Chinese practicing lawyers only if they are employed in Chinese law firms. 
Once a Chinese practi cing lawyer leaves the Chinese law firm, he/she is no longer a Chinese 
practicing lawyer and shall not engage in any Chinese law practice in the name of a Chinese lawyer.  
Page 161, paragraph 4.181  
Question  
The Secretariat's  report references two liberaliza tion measures regarding legal services in Shanghai 
Pilot Free Trade Zone. The liberalization brought about by these measures does not seem to have 
any interest among foreign law firms, presumably because they still would require cooperation with WT/TPR/M/3 75/Add.1  
 
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  Chinese la w firms. Why did China not undertake more significant liberalization in the Shanghai Pilot 
Free Trade Zone?  
Reply  
Since China allowed foreign law firms with representative offices in the Shanghai Pilot Free Trade 
Zone to work with Chinese law firms by agreement to assign lawyers to each other as legal counsels 
and conduct joint operation, five law firms under China -foreign joint operation have been established 
and functioned well.  
Page 161, paragraph 4.184  
Question  
Why does China find it necessary to im pose a 3-year wait requirement for the establishment of each 
new representative office of a foreign law firm? Can China explain how it justifies this requirement 
in light of its WTO commitments?  
Reply  
According to the operating experience of the representa tive offices in China for over ten years, it 
takes an average of three years for a representative office to get a licen ce, start a business and 
operate normally, which indicates that there should be a time transition before the establishment of 
a new offic e. In regulating the lawyer profession as one with demanding requirements, the 
government authorities give high priority to the protection of  the public. Therefore, the three -year 
requirement aims to regulate the representative offices operations in the cu rrent circumstances. It 
is also a necessary measure for safeguarding the public interests. In the meantime , it is our 
understanding that the quantitative restrictions lifting committed in the schedule of concessions does 
not revoke the authorities  right to  regulate ex officio. The three -year requirement is an 
administrative behaviour , not a quantitative restriction on the establishment of a representative 
office.  
4.4.4 Accounting, auditing and bookkeeping services , page 162, paragraph 4.190  
Question  
Can a Certified Public Accountant licensed by the authorities of China provide cross -border 
accounting services without having a branch office in China?  
Reply  
In accordance with China's  WTO commitments, there are no restrictions on market access and 
national tre atment for cross -border supply of Accounting, Auditing and Bookkeeping services 
(CPC862). Meanwhile, according to the provisions of the Law of the People 's Republic of China on 
Certified Public Accountants , certified public accountants shall join an accoun ting firm to practice. 
The practicing of relevant operations stipulated in the above Law  shall be uniformly accepted by the 
accounting firm where the accountant works, with a commission contract signed by the firm and the 
client.  
4.4.6 Engineering and int egrated engineering services , page 165, paragraph 208  
Question  
What is China's  policy rationale for requiring Chinese nationality for survey and design engineers? 
Are survey and design engineering the only engineering disciplines for which China imposes 
nationality requirements?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Survey and design engineering is not the only en gineering discipline with nationality requirements. 
Practice engineering qualifications of practice nature for registered fire protection engineers, cost 
engineers, registered urban and rural planners, registered marine surveyors, registered equipment 
supervising engineers, registered meteorologists  and registered surveyors all require Chinese 
nationality. Documents on certified qualification system of survey, design and related types of 
engineers stipulate that with the consent of relevant departments of t he State Council, foreigners 
employed in China may apply for examination, registration and practice in accordance with 
prescribed procedures.  
Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.2 Creating more attractive investment environment , 3.2.4 Further opening up of the 
financial sector , page 7, paragraph 3.15  
The Governments report discusses China's  plans to further open up certain financial services sectors. 
In addition to annou ncing its plans to remove equity caps in certain financial services sectors, China 
has indicated that it will provide national treatment for foreign suppliers.  
Question  
a. Can China confirm that it will provide national treatment in all of these financial ser vices 
sectors and remove all explicit and implicit barriers that limit meaningful foreign participation in 
these sectors?  
Reply  
In the development of China 's economy and banking industry, the design of access policies for 
foreign -invested institutions focu ses on making them able to adapt to China 's economic, financial 
and market development stages and the domestic legal environment and capable of introducing 
foreign institutions with strength, international reputation and management experience and good 
experience in the Chinese market so as to ensure their sustainable and steady development in China. 
The gradual replacement of quantitative limitation by mechanism -based management and the full 
implementation of national treatment and a negative list before ac cess to the market mark China 's 
key reform directions in recent years and the near future.  
China strictly abides by its commitments upon WTO accession. Foreign investment in China has 
gained access to national treatment in most areas. In the recent process  of China's  finance opening 
to the outside world, China has further relaxed the conditions for foreign institution establishment, 
investment and scope of business in China. And China will speed up the implementation of relevant 
opening -up measures. China's  finance will continue its opening to the world without an end. China 
will actively and prudently promote a new round of high -level opening up and constantly optimize 
the business environment for foreign banks in China.  
Question  
b. In the securities sector specifically, will China revise its unreasonably high net asset value 
requirements and its limits on foreign suppliers forming partnerships with non -financial companies, 
so that foreign participation in this sector is not unreasona bly limited?  
Reply  
Making new ground in pursuing opening up on all fronts and implementing policies for high -level 
investment liberalization and facilitation are the  inherent  requirements for the Chinese government  
to implement its  fundamental national po licies of opening up and to establish new institutions of an 
open economy. In order to  enhance supervision over  the equity of securities companies, regulation 
of the behaviour  of securities company shareholders, and improvement of  the current regulation, WT/TPR/M/3 75/Add.1  
 
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  CSRC drafted the  Measures  on the Administration of Securities Companies Equity (Draft for 
Comments), which applies equally to domestic securities companies, equity joint venture securities 
companies as well as domestic and foreign shareholders. There are no  special requirements  only for  
equity joint venture companies or foreign shareholders in terms of net asset of major and controlling 
shareholders of integrated securities company, and the ratio  of shareholders when a non -financial 
enterprise actually contr ols a securities company.  
3.4 Strengthening the protection of intellectual property rights , 3.4.2 Steadily advancing 
legislations on IPR protection , page 9, paragraph 3.26  
The Governments report notes that China's  Copyright Law is currently undergoing amendment.  
Questions  
a. Please provide an update on the current timeline for China's  internal review of the Copyright 
Law amendments, including the priority level in relation to other pending legislation.  
b. Is China in a position to identify the topics that are currently under discussion as part of 
China's  internal review of the Copyright Law amendments?  
c. Will a draft of the Copyright Law amendments be made available for public comment?  
d. When does China expect  that a draft of the Copyright Law amendments will be submitted to 
the National People 's Congress?  
e. What are the anticipated dates for National People 's Congress approval of the Copyright Law 
amendments?  
Reply  to a-e 
In 2017, in order to promote full and i n-depth implementation of the Copyright Law  and facilitate 
the legislative work, a law enforcement inspection group formed by the NPC Standing Committee 
went to Guangdong, Fujian, Qinghai, Beijing, Shanghai and other places to inspect the enforcement 
the Copyright Law  in June. Later in September, the group worked out a report, which was adopted 
at the twenty -ninth meeting of the Standing Committee of the 12th National People 's Congress. At 
the end of 2017, the National Copyright Administration worked with the former Legislative Affairs 
Office of the State Council to revise the draft for review and conduct a full review of the draft. The 
General Office of the State Council issu ed the 2018 Legislative Work Plan of the State Council on 
2 March 2018, which clearly stated that the Copyright Law  amendments would be submitted to the 
NPC Standing Committee for deliberation in 2018. It is expected that the amendments of the 
Copyright La w will be accelerated.  
Page 9, paragraph 3.26  
The Governments report notes that the Patent Law is currently undergoing amendment.  
Question  
a. Please provide an update on the current timeline for China's  internal review of the Patent Law 
amendments, including the priority level in relation to other pending legislation.  
Reply  
In March 2018, Patent Law amendments were included in 2018 Legislative Work Plan of the State 
Council to be submitted to the Standing Committee of the National People 's Congress (NPC) for 
deliberation . The 2018 Legislative Work Plan of the NPC Standing Committee listed the draft into the 
laws to be deliberated within the year. At present, the Patent Law amendments proceed in an orderly 
manner.  WT/TPR/M/3 75/Add.1  
 
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  Question  
b. Is China in a position to identify the topics that are currently under discussion as part of 
China's  internal review of the Patent Law amendments?  
Reply  
The main suggestions of amendments to the Patent Law include the followings: first, improving the 
paten t authorization system, including optimizing the review system, adding domestic patent priority 
for appearance design, extending the appearance design patent protection term from 10 years to 
15 years and improving the patent evaluating and reporting system , etc. Second, strengthening 
patent protection, including raising the cost of infringement and illegal practices, increasing 
compensation, creating new punitive compensation systems and raising the ceiling of statutory 
compensation; reducing the burden of proof when right holders claim for compensation, enhancing 
punishment and improving patent administrative enforcement; strengthening patent protection in 
the network environment; upholding the principle of honesty and credibility while applying for and 
exercising patent rights, etc. Third, promoting the use of patents, including improving the service 
invention system, enhancing patent transfer services and creating new licensing systems for access 
to patents.  
Question  
c. Will a draft of the Patent Law amendments be made available for public comment?  
Reply  
In April 2015, SIPO developed a draft of Patent Law amendments (draft for comment) and solicited 
public comment on it. In July 2015, the SIPO submitted a draft of Patent Law amendments (draft 
for revie w) to the State Council. In December 2015, the former Legal Affairs Office of the State 
Council solicited public opinions on the draft for review.  
Question  
f. When does China expect that a draft of the Patent Law amendments will be submitted to the 
National P eople 's Congress?  
Reply  
The Patent Law amendments proceed in an orderly manner. But the time when a draft of the Patent 
Law amendments will be submitted to the National People 's Congress remains uncertain.  
Question  
g. What are the anticipated dates for National People 's Congress approval of the Patent Law 
amendments?  
Reply  
The exact time for the approval of Patent Law amendments is currently uncertain.  
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION AND 
BUILDING AN OPEN WORLD ECONOMY  
4.1 F irmly supporting economic globalization and building new platform for international 
cooperation , 4.1.2 Preparing vigorously for the first China International Import Expo , 
page 12, paragraph s 4.5-4.6 
The Governments report states that President Xi Jinping a nnounced the China International Import 
Expo at the Belt and Road Forum for International Cooperation in May 2017. It adds that, "as the 
world 's first large -scale expo focusing on import, the China International Import Expo is a major WT/TPR/M/3 75/Add.1  
 
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  policy initiative as well as a commitment taken of China's  own accord to open up further the Chinese 
market to the world. It will create new demands for and inject new impetus into the world 's economic 
growth. Through building a new platform that embraces inclusiveness, openne ss, and cooperation 
and providing public products that promote global inclusive and mutually beneficial development, 
the Expo will also start a new model of cooperation between China and international organizations. " 
Question  
a. Can China explain the relationship between the Belt and Road Initiative and the China 
International Import Expo?  
Reply  
In May 2017, President Xi Jinping announced at the first Belt and Road Forum for International 
Cooperation that China International Import Expo will be held fr om 2018 on. China International 
Import Expo will provide strong support for the construction of the Belt and Road, facilitate the 
exploration of the Chinese market by countries around the world and their sharing of the benefits of 
China's  rapid development . It will also help boost trade and economic exchanges among all countries 
and promote the common development and prosperity of the world.  
Question  
b. Can China explain why it characterizes a trade fair as a "major policy initiative "? 
Reply  
After the international financial crisis, economic globalization has experienced twists and turns, and 
the multilateral trading system has been challenged with rising trade protectionism. In this context, 
organizing such an expo is highly relevant. Holding  the China International Import Expo and open 
and share the Chinese market will develop the demonstration effect for promoting trade exchanges 
and wider market access between countries, driving economic globalization and building an open 
world economy, cre ating conditions for the building of a community with shared future for humanity. 
At the same time, it will underpin China's  new round of high -level opening up, which is conducive to 
the development of an open economy at a higher level and sustained and he althy development of 
the Chinese economy.  
Question  
c. China's  Belt and Road Initiative has been frequently criticized for its lack of openness, 
inclusiveness, transparency and adherence to international standards for infrastructure projects and 
financing. In what ways will the "new platform " represented by the China International Import Expo 
operate differently from the Belt and Road Initiative?  
Reply  
The criticizing of the Belt and Road Initiative in the question is groundless and irresponsible. It has 
been proved that the Belt and Road Initiative conforms to the trend of the times and the common 
aspiration of people of all nations. It has been highly praised and widely received by the international 
community. Over 100 countries and international organizati ons have actively responded to and 
participated in the  Belt and Road building. The China International Import Expo will build a public 
platform for countries at different levels of development to enhance national influence and deepen 
trade cooperation, whi ch also demonstrates openness and inclusiveness.  WT/TPR/M/3 75/Add.1  
 
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  5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , 5.1.3 Eliminating vigorously ineffective supply and pushing forward cutting 
excess and out -dated capacity , page 17, paragraph 5.4  
The Governments report states that China has taken a number of steps to eliminate excess capacity 
in the steel sector, including: th e issuance of policy guidelines; special operations against outdated 
facilities and against projects that violate laws and regulations; and encouragement of mergers and 
other forms of restructuring. It further states that China has dissolved steel producti on capacity by 
over 120 million tonnes  between 2016 and 2017.  
Question  
a. Please identify each of the "policy guidelines " that China has issued with regard to eliminating 
excess capacity in the steel sector. Through what specific mechanisms is China monitorin g and 
enforcing adherence to these policy guidelines?  
Reply  
Since 2016, the Chinese government has, for many times, conducted nationwide special supervision 
over capacity reduction, acceptance and spot check of cutting overcapacity and targeted supervision  
over the elimination of backward production capacity, etc. The Chinese government urges and guides 
local authorities to fully implement the capacity reduction tasks and retire illegal and outdated 
production capacity.  
Question  
b. Please describe the "special  operations " China has undertaken against outdated facilities and 
against projects that violate laws and regulations. How does China define "outdated facilities "? With 
regard to projects that "violate laws and regulations ", which particular laws and regulations have 
Chinese steel companies been found to be most in violation of?   
Reply  
The Guidance Catalogue of Industrial Restructuring (2013 Edition)  has clearly defined outdated 
facilities and requires strict implementation of relevant policies and eli mination of outdated 
production facilities nationwide.  
Question  
c. Through what specific mechanisms has China encouraged enterprises affected by overcapacity 
to merge, restructure, transform or otherwise alter their business operations? How does China define 
"enterprises affected by overcapacity "?  
Reply  
Improve the fair, open and transparent market rules, strengthen the market competition mechanism 
and forced mechanism, leverage the principal role of enterprises and safeguard independent 
decision -making right s of enterprises.  
Question  
d. With regard to the stated dissolution of 120 million tonnes  of steel production capacity, does 
this figure include illegal projects (i.e., "projects that violated laws and regulations "), or does it only 
include lawful capacity?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
The reduction in crude steel production capacity has exceeded 120 million tonnes  since 2016. This 
figure includes both lawful production capacity and illegal projects.  
Question  
e. China states that it dissolved steel production capacity by over 120 million tonnes  between 
2016 and 2017. What was China's  net reduction in steel production capacity during this same period?  
Reply  
China has dissolved crude steel production capacity by ove r 120 million tonnes  since 2016. This 
figure refers to the absolute and net reduction in steel production capacity. It is the actual amount 
of crude steel capacity that has been dissolved.  
5.1.4 Resolutely stepping up pollution prevention and control and c ommitting to building 
ecological civilization , page 17, paragraph 5.5  
The Governments report states that "China has fully realized that lucid waters and lush mountains 
are invaluable assets, and focused on pollution prevention and control with unprecedente d 
determination and efforts to strengthen ecological and environmental protection. Forceful measures 
have been taken to tackle air pollution. Encouraging progress has been made in establishing a 
national market for the trading of carbon emission rights. En ergy conservation and emission 
reduction in key industries have continued to make progress, and energy structures further 
optimized. China has strengthened the prevention and control of water pollution in key river basins 
and sea areas, and implemented maj or ecological protection and restoration projects. From 2013 to 
2017, 71% of all the coal -fired power generating units in China achieved ultra -low emissions, and 
the proportion of coal consumption dropped by 8.1 percentage points, while that of clean energ y 
consumption up by 6.3 percentage points. " 
Question  
a. Does China have plans to ratify the Kigali Amendment to the Montreal Protocol. If so, when?  
Reply  
China is currently making an internal assessment on accessing the Montreal Protocol, which will be 
added to the amendment after it is completed.  
Question s 
b. Does China have plans to increase monitoring and enforcement to ensure that companies are 
meeting relevant air quality and emissions standards? If so, please explain.  
c. As China prioritizes environmental protection, what are China's  plans, if any, for lowering trade 
and investment barriers to the environmental products and services that it needs to meet its various 
environmental targets (e.g., environmental monitoring, ai r pollution control, water treatment, waste 
and recycling, clean energy production, etc.)?  
Reply  to b-c 
China pays high attention to ecological environmental protection and establishes a marine 
environmental monitoring institution system covering instituti ons at national, provincial, municipal 
and county levels. At present, the number of marine environmental monitoring institutions in China 
has reached 235, forming a comprehensive monitoring system integrating pollution monitoring, 
ecological monitoring, re source monitoring and risk monitoring. The results of monitoring and 
evaluation of marine ecological environment will be made public every year via the Bulletin of China 
Ecological Environment Status  and Bulletin of China Marine Environmental Status . WT/TPR/M/3 75/Add.1  
 
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  Quest ion 
d. Please describe the actions that China is taking to combat marine debris, including actions to 
address land and sea -based waste management.  
Reply  
The Chinese government and related departments have attached great importance to and issued a 
series vital  measures against the problem of marine debris.  
1. Strictly prohibit dumping waste into the marine environment in accordance with the laws and 
regulations. China has been actively participating in international practices of marine debris 
(marine waste) manag ement, promulgated the Marine Environmental Protection Law , 
Regulations of the People's Republic of China on the Dumping of Wastes at Sea , Measures for 
the Implementation of the Regulations of the People's Republic of China on the Dumping of 
Wastes at Sea  and other regulations and established four major management mechanisms, 
including dumping permit, dumping ground selection, dumping monitoring and l aw 
enforcement on waste dumping;  
2. Constantly strengthen monitoring and evaluation of marine debris and relea se the results of 
monitoring and evaluation through the Bulletin of China Marine Environmental Status ; 
3. Conduct spec ial researches on marine debris;   
4. Actively participate in international cooperation and exchanges of marine  debris prevention 
and control;  
5. Enhance publicity and education and public participation and carry out a series of education 
campaigns on impacts by marine debris on the Environment Day, the World Ocean Day and 
the International Co astal Cleaning Day, etc. ; and   
6. Enhance the clearing and man agement of marine debris. Coastal local governments shall work 
actively to remove and manage marine debris.  
Question  
e. As a major consumer of wildlife and wildlife products, please describe how China is working 
to ensure that the products China is importing and exporting are not illegally harvested or taken. In 
particu lar, what actions is China taking or planning to take to curb the demand for endangered 
totoaba  bladder? What steps is China taking or planning to take to curb imports of shark fins from 
sharks included in Appendix 1 of the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora (CITES)? What steps is China taking or planning to take to enforce its 
31 December 2017 ban on ivory, both domestically and with respect to import s and exports?  
Reply  
China will abide by the relevant rules and requirements of the Law of the People 's Republic of China 
on the Protection of Wildlife.  
 
  WT/TPR/M/3 75/Add.1  
 
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  UNITED STATES  – FOLLOW -UP 
Report by the Secretariat - WT/TPR/S/375  
1 ECONOMIC ENVIRONMENT  
1.2 Recent  Economic Developments , page 18, paragraph 1.6   
1.  In questions addressing page 18, paragraph 1.6, of the Secretariat 's report, the United States  
asked China how it was working to ensure that Belt and Road Initiative -related projects upheld 
internationally accepted best practices in infrastructure development and financing so as not to 
cripple countries with unsustainable debt problems, as well as how China was working to enhance 
transparency and inclusivity in Belt and Road -related projects.  In its response, China stated, "each 
loan has specific infrastructure or social livelihood projects behind it, which helps to improve local 
productivity and bo ost economic growth. " In addition, China stated, "most of the BRI projects are 
commercial projects and are the market behaviors of enterprises.  The way of operation and how to 
publish the initial information of the projects are determined by the project ow ners and do not 
depend on the Chinese government. " 
Question  
a. Can China describe how projects are determined to "improve local productivity and boost 
economic growth "? Are feasibility studies conducted, and if so, how are they conducted?  How are 
problems ide ntified in feasibility studies taken into account and addressed?  
Reply   
China has always implemented the Belt and Road projects through consultation on an equal footing 
with host countries of the projects. Specific ways of infrastructure development and fi nancing must 
be in line with local national conditions and reality. We may learn from and respect existing 
examples, but we may not mechanically follow the best practices of developed countries. An absolute 
majority of the Belt and Road projects are commer cially operated. We are looking forward to the 
participation of a lot more international partners and investors.  
Question  
b. Can China clarify how it determines whether a commercial project falls under the Belt and 
Road umbrella?  
Reply  
The Belt and Road international cooperation projects follow the principles of consultation, 
contribution and shared benefits and respect international rules and corporate willingness. So long 
as a project strives for "policy connectivity, facilities connec tivity, trade connectivity, financial 
connectivity and people -to-people connectivity " proposed by the Belt and Road Initiative, it can be 
seen as a project under the Belt and Road umbrella. For this reason, these projects do not refer only 
to economic deve lopment projects. In fact, the Belt and Road Initiative is not a project programme , 
so we do not certify or determine whether a project falls under the Belt and Road umbrella.  
2 TRADE AND INVESTMENT REGIME S  
Question  
2. In addressing page 31, paragraph 2.5,  of the Secretariat 's report, the United States referenced 
China 's commitment in paragraph 334 of the Working Party Report accompanying China 's Protocol 
of Accession to the WTO to make available to WTO Members translations into one or more WTO 
languages of  all trade -related laws, regulations and other measures and to the maximum extent 
possible make these available before they are implemented or enforced, but in no event later than 
90 days after they are implemented or enforced.  The United States asked Chin a what plans it had 
for finally implementing this commitment.  China did not respond to this question.  Instead, China 
described certain measures currently in place that in some circumstances call for English translations WT/TPR/M/3 75/Add.1  
 
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  to be made.  However, these measures are largely hortatory, are far from comprehensive in coverage 
and do not require any translations to be made available before a trade -related measure is 
implemented or enforced or even within 90 days after it is implemented or enforced.  Can China 
explain w hen it will implement its commitment in paragraph 334 of the Working Party Report 
accompanying China 's Protocol of Accession to the WTO?  
Reply  
1. The Legal Affairs Working Committee under the National People 's Congress publishes, on a 
regular basis, English versions of Laws of the People 's Republic of China.  
2. The Legislative Affairs Office of the State Council publishes, on a regular basis, Chinese and 
English versions of Laws and Regulations of the People 's Republic of China Gove rning Foreign -related 
Matters. I n February 2003, the General Office of the State Council issued the Notice on the 
Examination and Approval of Official English Translation of Regulations, requiring the drafting 
departments of regulations be responsible for translating the reg ulations they draft and submitting 
the translated versions to the Legislative Affairs Office of the State Council for review. The 
translations will be made public as the official translated versions upon the examination and approval 
of the Legislative Affa irs Office of the State Council.  
3. On 23 March 2015, the General Office of the State Council issued the Notice on Enhancing the 
Work of Translating Trade -related Departmental Rules into English, requiring that, in principle, an 
English translation should be made publicly available by the issuing department under the State 
Council, through its official website or other channels before a relevant departmental rule is 
implemented, and no later than 90 days afterwards under special circumstances.  
Question  
3. In a question addressing page 31, paragraph 2.5,  of the Secretariat 's report, the United States 
asked China when it would publish in an official journal all trade -related measures at both the central 
and sub -central levels of government.  China did not directly  respond to this question.  Does China 
accept that its obligation under paragraph 2(C)(2) of Part I of its Protocol of Accession to the WTO 
to establish or designate an official journal dedicated to the publication of all laws, regulations and 
other measure s pertaining to or affecting trade in goods, services, TRIPS or the control of foreign 
exchange includes normative documents issued at the central and sub -central levels of government?  
If not, please explain.  
Reply  
In recent years, the Chinese government h as been strengthening institutional guarantee for the 
transparency of trade policies. According to the Legislation Law of China and other provisions 
governing the formulation procedures of rules and regulations, government communiqués are official 
platform s for governments at various levels to issue administrative regulations, rules and normative 
documents. In March 2018, the Chinese government issued a notice to make further arrangements 
with respect to the work on government communiqués with a view to giv ing more play to 
government communiqués in enhancing the transparency of government policies.  
Question  
4. In questions addressing page 35, paragraph 2.25, of the Secretariat 's report, the United States 
asked three questions regarding China 's establishment of courts to handle international commercial 
disputes arising from the Belt and Road Initiative. First, the United Stated asked whether project 
participants would be obligated to use the Belt and Road courts to resolve their disputes. Second, 
the United State s asked whether decisions of the Belt and Road courts would be subject to the 
direction of the Chinese Communist Party, or if they will be independent.  Third, the United States 
asked whether China intends to use the Belt and Road courts to replace dispute settlement 
arrangements in existing bilateral or multilateral agreements. China responded by citing the Opinions 
on Establishing the Belt and Road International Commercial Dispute Resolution Mechanism and 
Organizations, issued in January 2018, and the judi cial interpretation of the Supreme People 's Court 
on issues related to the establishment of courts for international commercial disputes. China also WT/TPR/M/3 75/Add.1  
 
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  provided a summary of the significance of establishing the Belt and Road courts.  However, China 
does not di rectly answer the questions posed by the United States.  
a. Please explain whether project participants will be obligated to use the Belt and Road courts 
to resolve their disputes.  
Reply  
No. The Belt and Road International Commercial Dispute Resolution Mechanism and Organizations 
only afford concerned parties an impartial, efficient, convenient and low-cost option for resolving 
international commercial disputes in addition to existing mech anisms. The international commercial 
court fully respects clients ' rights to select dispute settlement methods and to select governing courts 
through agreement.  
Question  
b. Please explain whether decisions of the Belt and Road courts will be subject to the di rection 
of the Chinese Communist Party.  
Reply  
Relevant arbitration is based on facts and legal bases; it is not affected by politics.  
Question   
c. Please explain whether China intends to use the Belt and Road courts to replace dispute 
settlement arrangements in existing bilateral or multilateral agreements.  
Reply  
No. The international commercial court mainly accepts disputes between equal commercial entities 
in trade and investment areas; it does not accept trade or investment disputes between states. So 
it does not make any change to existing international commercial dispute resolution mechanisms 
provided by international conventions.  
2.4 Investment Regime  
5. In questions referencing page 37, paragraph 2.31,  of the Secretariat 's report, the United 
States asked China whether recent reports about an increase in the activities of Communist Party 
cells in many wholly foreign -owned enterprises, foreign -invested enterprises and Sino -foreign joint 
ventures are accurate.  The United States also asked whether the envision ed activities of the 
Communist Party cells include a role in business management decisions affecting, for example, R&D, 
investment, hiring and firing personnel, expansion or reduction of manufacturing capacity, etc.  
However, in its response, China did not answer these questions.  Instead, it maintained that the 
establishment of Communist Party cells "conforms to the wishes of enterprise employees. " 
Questions  
a. Recent reports from foreign companies operating in China indicate that there has been an 
increase in the activities of Communist Party cells in many wholly foreign -owned enterprises, foreign -
invested enterprises and Sino -foreign joint ventures, especially over the past year, with the apparent 
objective of providing the Communist Party an increased role in  business management and decision -
making.  Please explain if these reports are accurate.  
b. Do the envisioned activities of the Communist Party cells include a role in business 
management decisions affecting, for example, R&D, investment, hiring and firing pe rsonnel, 
expansion or reduction of manufacturing capacity, etc.?  WT/TPR/M/3 75/Add.1  
 
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  Replies for a -b  
The Communist Party of China (CPC) is the leadership core for the cause of socialism with Chinese 
characteristics. It is, therefore, reasonable to establish Party organizati ons in social primary units 
including enterprises, which has been practiced for a long time. First, this is in line with Chinese laws 
and relevant regulations. The Constitution of the People 's Republic of China stipulates, "The 
leadership of the Communist Party of China is the most essential feature of socialism with Chinese 
characteristics. " "All foreign enterprises, other foreign economic organizations as well as Chinese -
foreign joint ventures within Chinese territory shall abide by the laws of the People 's Republic of 
China. " The Company Law of the People 's Republic of China specifies, "In a company, an organization 
of the Communist Party of China shall be established to carry out the activities of the Party in 
accordance with the Constitution of the Comm unist Party of China. The company shall provide the 
necessary conditions for the activities of the Party organization. " The Constitution of the Communist 
Party of China provides that, primary units including, inter alia , enterprises, villages and schools 
with more than three CPC members shall establish primary Party organizations. By the end of 2017, 
73.1% of non -public enterprises had established Party organizations, in which 71,000 foreign -funded 
enterprises established Party organizations, accounting for  74.7% of the total number of foreign -
funded enterprises in China. Second, it meets employees ' wishes and requirements. At present, 
there are more than 100 million employees in China 's non -public enterprises, and over 18 million 
working in foreign firms. P arty organizations pay attention to safeguarding the legitimate rights and 
interests of all parties, reflect the reasonable demands of the people, and help employees solve 
practical difficulties. The majority of employees want Party organizations to be est ablished in 
enterprises. Third, it is conducive to promoting the healthy development of enterprises. The main 
task of the Party organizations in enterprises is to spread and implement the Party 's principles and 
policies, guide and supervise enterprises to abide by Chinese laws and regulations, unite non -Party 
workers, safeguard the legitimate rights and interests of all parties, and promote the healthy 
development of enterprises. Foreign enterprises have a significant number of CPC members who are 
outstandi ng employees and the backbone of their business. They are hard -working, willing to 
contribute, and determined to tackle difficulties. They play a pioneering and exemplary role in 
performing duties and completing tasks and are an important force to promote the sustained and 
healthy development of enterprises.  
Since the 18th National Congress of the Communist Party of China, when guiding foreign enterprises 
to establish Party organizations, we have urged local officials to pay attention to enhancing 
communic ation with foreign executives, explain the purpose of and legal basis for the establishment 
of Party organizations, clarify their duties, tasks, and activities, and try to eliminate doubts and 
reach agreement. We guide Party organizations to strengthen int eraction with the board of directors, 
the Management and relevant shareholders of foreign -funded enterprises, actively spread CPC 's 
paths, principles and policies, effectively communicate and negotiate certain matters, and 
wholeheartedly help enterprises c oordinate and solve difficulties and problems encountered in 
business development. The Party members ' public commitment, members pioneer and 
demonstration posts, members ' responsibility areas, problem solving teams of Party members and 
other practices carr ied out by the Party organizations for the production and operation of the 
enterprise inject positive energy into its development. Facts have proved that the establishment of 
Party organizations in foreign enterprises did not hinder their development. Inst ead, because of the 
fruitful work of Party organizations and the role of Party members as the backbone of the business, 
they have optimized internal management, motivated employees, improved production and 
operation efficiency, and enhanced companies ' comp etitiveness, which has been well received by all 
parties in foreign companies. Some executives with foreign enterprises said that Party organizations 
can help them promptly understand China 's policies, improve their ability to integrate business into 
China , and play an irreplaceable role in resolving labour  disputes and building harmonious labor 
relations. Some foreign leaders of Sino -foreign joint ventures said that many outstanding employees 
at their companies are CPC members who are always at the forefro nt of tackling difficulties.  
A number of foreign executives in foreign enterprises such as Spectrum Brands (Xiamen) Industrial 
(US), Dalian Canon (Japan), Linde Forklift Trucks (German), Samsung Electronics (Korean), and 
those in Sino -foreign joint venture s such as Beijing Benz, BMW Brilliance, Shanghai GM, Guangqi 
Honda, and Changan Ford, all spoke highly of the creative work of the Party organization and the 
leading role of Party members, and actively supported in establishing Party organizations in 
enter prises.  
 WT/TPR/M/3 75/Add.1  
 
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  6. In questions referencing page 37, paragraph 2.31, of the Secretariat 's report, the United 
States asked China to explain the  mechanisms available to a foreign company under Chinese law to 
resolve any differences that it may have with an internal Communist Party cell or Communist Party 
member wishing to play a stronger role in business management decisions.  China responded in pa rt, 
"[f]oreign -invested enterprises may set up such organizations as shareholders meeting and board 
of directors, etc. according to relevant provisions and make operational decisions by the operation 
of law. " China 's response implies that Communist Party c ells participate at least to some extent in 
shareholders ' meetings and on the board of directors.  Otherwise, it is unclear how these mechanisms 
enable the foreign company to resolve any differences that it may have with Communist Party cells.  
Question   
a. Please further explain how Communist Party cells interact with shareholders and with the 
board of directors.  
 
Reply  
Please refer to reply for question 5.  
Question  
b. Under Chinese law, may foreign companies use Chinese courts to resolve their differences 
with a Communist Party cell or an  individual Communist Party member?  If so, please describe how.  
Reply  
Chinese courts accept  not only civil and commercial disputes between equal civil or commercial 
parties, but also criminal and administrative cases, according t o law. The answer to this question is 
the same as the answer to the question "may foreign companies use American courts to resolve 
their differences with a Democratic or Republic Party cell or an individual Democratic or Republican 
Party member? " 
Question  
c. Please describe how the Communist Party supervises Communist Party cells within foreign 
companies.  
Reply  
Please refer to reply for question 5.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
7. In a question addressing page 45, paragraph 3.1, 3.2 and 3.71,  of the Secretariat 's report, 
the United States asked about the reference to multiple single windows in China and compliance 
with Article 10.4 of the WTO Trade Facilitation Agreement, which requires that a Me mber provide a 
single window, enabling traders to submit documents for importation, exportation or transit of goods 
through a single point to the participating authorities or agencies. In response, China stated, "Based 
on the electronic port platforms at t he central and local government levels, the Single Windows 
jointly create a nationally unified environment for trade facilitation.  The local governments at the 
provincial, autonomous region and municipality level are responsible for developing, localizing and 
implementing provincial -wide Single Windows based on the nationally standardized versions, as well 
as for embedding locally distinctive services into the system. Traders have the discretion to choose 
between the central and local Single Window platform s to undergo the import or export 
declarations. " China also stated that its standardized single window system has already covered all 
ports in China as of the end of 2017.  WT/TPR/M/3 75/Add.1  
 
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  Question   
a. Could China clarify whether a trader is able to submit documents through a  national Single 
Window platform regardless of which provincial or local government electronic port platform also 
receives the information? What is the centralized online location to which traders may submit 
documentation?  
Reply  
China attaches importance t o the development of a standardized single window system. To date, it 
has achieved the goal of "unifying the single windows " by "unifying their interfaces, logos and domain 
rules". China International Trade Single Window, a portal website, is the only entrance for all "single 
windows " across the country. Traders can log onto the website http://www.singlewindow.cn  to 
submit their documents.  
Question   
b. Can China explain how the described "standardized single window platform " will integrate 
with, rather than run parallel to, current local government single window systems?  
Reply   
The central government has been developing and deepening basic fu nctions of the Single Windows 
in the standardization drive while supporting local governments to integrate local resources into the 
platform in an effort to develop distinctive local services/functions according to standard norms and 
in light of local need s. 
Question  
c. A recent State Council Information Office White Paper noted that China 's single window system 
currently is "connected to 11 authorities and agencies. " Is this the same system as the "standardized 
single window system " to which China refers in its response?  
Reply  
The single window system referred to in the white paper China and the World Trade Organization is 
the same as the single window system referred to herein.  
3.1.5 Import prohibitions, restrictions, and licensing  
Question  
8. In a question addressing page 52, paragraph 3.32, of the Secretariat 's report, the United 
States asked about measures China has been taking to ban or restrict various types of imported 
waste and recovered materials.  WTO Members have raised concer ns about these measures in various 
WTO committees and councils.  The United States asked when China would respond to questions 
submitted by the EU in the Committee on Import Licensing.  China responded that relevant 
competent authorities are now earnestly st udying and considering the comments and opinions 
already received and will reply according to the internal work procedures of the Chinese government.  
The United States also asked whether China plans to ban or further restrict the import of ferrous 
and non -ferrous scrap.  In response, China summarized a measure issued in April 2018, i.e., the 
Notice on Adjusting the Catalogue of Wastes Subject to Import Control, which China has failed to 
notify.  When will China notify the Notice on Adjusting the Catalogue of Wastes Subject to Import 
Control to the TBT Committee?  
Reply  
The Catalogue of Wastes Subject to Import Control does not belong to the "technical 
regulations/standards " under the TBT agreement , so China is not obligated to notify the TBT WT/TPR/M/3 75/Add.1  
 
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  Committee of that. China will perform her notification obligation in strict accordance with concerned 
WTO rules.  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Question  
9. In questions addressing page 54, paragraph 3.38, of the Secretariat 's report, the United States 
asked China to provide an update on the status of revisions to rules relating to new shipper reviews, 
refunds and price undertakings.  Additionally, the United States asked China to provide an update on 
when MOFCOM would notify the Provisional Rules for Implementing WTO Trade Remedy Rulings to 
the relevant committees.  In its response, China referenced three other sets of rules that have been 
notified to the WTO.  However, China provided no fur ther detail on the specific areas raised in the 
US questions.  Could China provide an update on the status of revisions of rules relating to new 
shipper reviews, refunds and price undertakings and when they will be notified to the appropriate 
WTO committees ? 
  
Reply  
 
The Ministry of Commerce released the Dumping and Dumping Margin Interim Review Rules, the 
Anti-dumping Questionnaire Survey Rules and the Anti -dumping and Countervailing Hearing Rules 
on 4 April 2018. The three rules have been notified to the WTO accordingly.  
3.2.5 Export finance, insurance, and guarantees  
Question  
10. In questions addressing page 65, paragraph 3.25, of the Secretariat 's report, the United States 
asked China whether any of the Agricultural Bank of China export credit programme s, such as the 
Export Credit Insurance Financing, are utilized to support the export of Chinese agricultural products.  
China responded that the Agricultural Bank of China 's export credit insurance financing did not target 
any particular industry or product and that it was a general export trade -financing product. Please 
explain whether China the Agricultural Bank of China 's export credit insurance financing supports 
any agricultural products.  The United States notes that the scope of the Ministerial Decision on 
Export Competition is not limited to agricultural -specific programme s, but rather includes general 
programme s that can benefit agricultural products.  
 
Reply  
 
The Agricultural Bank of China does have provided export credit insurance financing services for 
agricultural products according to commercial principles, but its export credit insurance financing 
services are applicable to all commodities including agricultural product consistent with its 
provisions. Agricultural products and other commodities are sub ject to the same financing conditions 
and requirements of the bank for export credit insurance financing; so they are within the scope of 
the bank 's normal commercial financing activities and therefore do not enjoy any special preferences 
and subsidy polic ies. 
3.3.1 Incentives  
11. In addressing page 70, Table 3.14, of the Secretariat 's report, the United States asked several 
questions regarding certain subsidies measures specific to new energy vehicles (NEVs), but China 
did not directly answer these questions.  
Question  
a. When asked whether  subsidies under this programme  are available in connection with the 
purchase of imported NEVs, China responded by  directing the United States to read the Catalogue 
of Promoted Use NEV Models. Can China answer for the United Stat es and all other interested WTO 
Members whether or not subsidies are available in connection with the purchase of imported NEVs? 
Can China confirm that no imported NEVs are included in this Catalogue?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please see the Catalogue.  
b. When asked whether  inclusion of an NEV manufacturer 's model in the Catalogue of Promoted 
Use NEV Models is an eligibility requirement for the promoted use subsidy programme , China 
responded only that enterprises listed in the Catalogue are eligible. However, the United States ' 
question was whether being listed in the Catalogue is a requirement to receive subsidies under the 
promoted use subsidy programme . Can NEV manufacturer 's models that are not included in the 
Catalogue receive subsidies under the promoted use subsidy progra mme? Are there any additional 
eligibility requirements?  
Reply  
Models included in the Catalogue are eligible for subsidies.  
Question  
c. When asked how many NEV models produced by Sino -foreign joint ventures in China have 
been the subject of applications for inclusion in the  Catalogue of Promoted Use NEV Models, China 
responded again by directing the United States to read the Catalogue. However, the Catalogue does 
not provide this information. Can China identify how many NEV models produced by Sino -foreign 
joint ventures in China have applied for inclusion in this Catalogue? Can China provide the total 
number of NEV models produced by Sino -foreign joint ventures in China that have been included in 
the Catalogue?  
Reply  
177 NEV models produced by Sino -foreign jo int ventures applied for inclusion in the Catalogue of 
Promoted Use NEV Models and 113 of them have been approved during the period of 2016 -2018.  
Question  
d. When asked how China 's regulatory authorities notified enterprises whose applications for 
inclusion o f an NEV model in the Catalogue of Promoted Use NEV Models were rejected, China did 
not answer the question. China responded that it studies and releases key technical thresholds based 
on various factors. How are enterprises notified of their rejection for  inclusion in the Catalogue? Do 
the regulatory authorities provide a written explanation of the reasons for the rejection of those 
applications?  
Reply  
Entrusted by the Ministry of Industry and Information Technology, technical service organizations 
undert ake the acceptance, review and feedback work with respect to the Catalogue of Promoted Use 
NEV Models. With regard to rejected models, the technical service organizations will inform the 
applicant of the rejection via the application system for inclusion i n the Catalogue of Promoted Use 
NEV Models.  
e. When asked for the most common reasons for rejecting an application for inclusion in the 
Catalogue, China responded that it was a f ailure to meet relevant technical thresholds. Can China 
provide a more detailed explanation of the specific technical thresholds that are commonly not met 
and therefore are the cause of rejections? Can China confirm whether any of these technical 
threshold s relate to batteries used in NEVs and, if so, identify all technical thresholds related to 
batteries?  
Reply  
Models applying for the Catalogue of Promoted Use NEV Models must meet the technical 
requirements provided in, among others, the Notice on Fiscal Support Policies for Promoted Use of 
NEV Models (2016 -2020).  WT/TPR/M/3 75/Add.1  
 
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  Question   
f. When asked whether subsidies under the promoted use programme  are only available in 
connection with purchases of NEV models using Chinese -made batteries, China responded that they  
are n ot sure about the information source. China 's response does not answer the question.  
Regardless of what information prompted the United States to ask its question, please explain 
whether the subsidies provided under the promoted use programme  are only avai lable in connection 
with the purchase of an NEV using Chinese -made batteries?  If so, can China identify a published 
measure or an unpublished measure that establishes this requirement?  
Reply  
The Catalogue of Promoted Use NEV Models has no such requirement  as it is applicable only to NEV 
models that have purchases and used batteries made in China. According to statistical data, 22 of 
the models on the Catalogue of Promoted Use NEV Models have used batteries made by foreign 
enterprises from 2017 to July 2018 , involving six foreign battery producers (A123 Systems, Maxwell 
Technologies, SANYO Electric Co., Ltd., Panasonic Group Automotive & Industrial System Company, 
Automotive Energy Supply Corporation and Ford Motor Company).  
12. In addressing page 70, Table 3.14, of the Secretariat 's report, the United States noted that 
this table does not list China's  NEV licen ce plate programme s. The United  States proceeded to ask 
three questions, but China did not directly answer these questions . 
Question  
a. When asked to confirm that imported vehicles are not eligible for inclusion in the Catalogue of 
Promoted Use NEV Models, China did not answer this question and instead referenced the Catalogue 
of Imported New Energy Vehicles, issued by the former State Administration of  Quality Supervision, 
Inspection and Quarantine.  Could China confirm that imported vehicles are not eligible for inclusion 
in the Catalogue of Promoted Use NEV Models?  Could China also explain the purpose of, and the 
criteria for inclusion in, the Catalogu e of Imported New Energy Vehicles?  Is this Catalogue publicly 
available?  
Reply  
Please see the Catalogue.  
Question   
b. When asked to clarify the criteria and process by which imported vehicles are certified as NEVs 
on the Imported Motor Vehicle Inspection Form, China did not answer the question.  Could China 
explain the criteria and process by which imported vehicles are certified as NEVs on the Imported 
Motor Vehicle Inspection Form?  
Reply  
The bases on which to identify imported new energy vehicles include  the Catalogue of Imported New 
Energy Vehicles approved by the commodity inspection department of customs (the Inspection 
Supervision and Administration Department of the former State Administration of Quality 
Supervision, Inspection and Quarantine) and th e designation of new energy vehicles on the Imported 
Motor Vehicle Inspection Form issued by the port commodity inspection authority.  
Question  
c. When asked whether China collects data on the number of owners of domestically produced 
NEVs, NEVs produced by Si no-foreign joint ventures and imported NEVs who have applied for NEV 
licence plates, China stated that NEVs manufactured by Sino -foreign joint ventures are viewed as 
domestically manufactured NEVs for registration purposes, but it did not provide the reque sted data.  
Could China provide data on the number of owners of domestically manufactured NEVs and imported 
NEVs who applied for NEV licen ce plates in 2016 and 2017?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The road and transport department of the public security authority has piloted the u se of special 
licence plates for new energy vehicles (including home -made and imported) since 1 December 2016 
and rolled it out across the country in the first half of 2018. For all new energy vehicles manufactured 
by Chinese or sino -foreign joint ventures  and those imported, a special licen ce plate will be issued 
when they are registered. New energy vehicles manufactured by sino -foreign joint ventures are seen 
as home -made NEVs for the registration purpose. So it is impossible to provide broken -down 
inform ation on the number of owners of NEVs made by Chinese or sino -foreign joint ventures or 
imported from foreign countries . 
13. In addressing page 70, Table 3.14, of the Secretariat 's report, the United States asked several 
questions regarding China 's NEV purchas e tax exemption programme , but China did not answer all 
of them.  
 
a. The United States asked how many NEV importers and Sino -foreign joint ventures have applied 
for, and how many of these enterprises have received, purchase tax exemptions since 2014, but 
China did not answer this question.  Could China provide the requested information?  
Reply  
According to statistical data, 8 importers and 21 sino -foreign joint ventures have applied for purchase 
tax exemptions since 2014. And four importers and 19 sino -foreign joint ventures have seen their 
applications approved. As a result, eight imported models and 73 models made by sino -foreign joint 
ventures have enjoyed the purchase tax exemption policy.  
Question   
b. When asked to explain how unsuccessful applicants for purchase tax exemptions are notified 
of the rejection of their applications, China stated only that successful applicants are notified via 
inclusion in the Catalogue of NEV Models Exempted from the Vehicle Purchase Tax. Could Ch ina 
confirm whether unsuccessful applicants receive any rejection notification and, if so, explain the 
form of that notification?  If not, could China explain why it does not provide rejection notifications?  
Reply  
With respect to enterprises failing in app lying for inclusion in the Catalogue of NEV Models Exempted 
from the Vehicle Purchase Tax, we have notified them of the rejection either through telephone calls 
or through the application system for the catalogue of energy -saving and NEV models eligible fo r 
fiscal and tax preferences.  
Question   
c. When asked to identify the most common reasons for rejecting purchase tax exemption 
applications, China did not answer the question.  Could China provide reasons for rejecting 
applications and explain how those reason s may correspond to provisions of the Announcement on 
Exempting New Energy Vehicles from the Vehicle Purchase Tax ([2017] No.172)?  
Reply  
The Announcement on Exempting New Energy Vehicles from the Vehicle Purchase Tax ([2017] 
No. 172) poses technical requi rements for enterprises included in the Catalogue of NEV Models 
Exempted from the Vehicle Purchase Tax in terms of their competences and technical parameters, 
etc. Enterprises and vehicle models applying for inclusion in the Catalogue must meet established  
technical requirements.   WT/TPR/M/3 75/Add.1  
 
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  3.3.2 Standards and other technical requirements  
Question  
14. In a question addressing page 73, T able 3.15, of the Secretariat 's report, the United States 
noted that the 11 standards that China notified to the TBT Committee, entitled Environmental 
Protection Control Standard for Imported Solid Wastes as Raw Materials (G/TBT/N/CHN/1224 -1234), 
only apply to imported goods. The United States asked China to identify the domestic standards that 
apply to each of the corresponding domestic go ods, but it did not do so.  China only stated that the 
measure addressing imported goods is one measure out of a series of measures.  Does China have 
standards for domestic goods corresponding to the list of 11 import standards notified to the TBT 
Committee?  If there are domestic standards that are applied, please identify them.  Are they less 
restrictive than the standards applied to imported goods?  If so, why?  Please explain.  
Reply  
According to principles widely recognized in the international community, eve ry country is obligated 
to take good care of their own solid wastes. The 11 Environmental Protection Control Standards for 
Imported Solid Wastes as Raw Materials, which are applicable only to the import process, aim to 
control the environmental pollution a nd human health risks posed by imported solid wastes to the 
highest extent. With respect to the circulation or disposal in China of legally imported goods, China 
practices uniform environmental protection requirements and management in strict accordance wi th 
the national treatment principle.  
3.3.3 Sanitary and phytosanitary requirements   
15. In addressing page 76, paragraph 3.138, of the Secretariat 's report, the United States asked 
several questions relating to substantive requirements used by China 's regulat ory authorities when 
reviewing and approving agricultural biotechnology product applications.  The United States seeks 
certain clarifications.  
a. How does China ensure its safety evaluations of agricultural biotechnology products are 
science -based when it continues to require (i) in -country rat feeding study, (ii) acute oral toxicity 
testing and (iii) prior product approval in a country of origin be fore beginning regulatory review – 
none of which are required by any other country?  
Reply   
 
China 's examination and approval of biotechnology products has always followed the principles of 
legality, scientificness, standardization and transparency, strictly complied with concerned laws and 
regulations, and observed the comparative analysis, prevention, case analysis, scientificness and 
transparency, and familiarity principles according to international standards. The genetically 
modified food safety evaluation standards issued by the Codex Alimentarius Commission clearly 
point out that the safety evaluation of genetically modified food must ensure that such food is 
completely the same as traditional non -genetically modified food in terms of its nutrie nts, toxicity 
and allergization, etc. The rat feeding study and oral toxicity testing are exactly scientific experiment 
identifying whether genetically modified food is toxic or has unintended effect. Such experiment is 
also the subject matter of safety ev aluation conducted by many countries in the world with respect 
to genetically modified food.  
  
The Safety Control Regulation for Agricultural Genetically Modified Organisms, as well as its 
evaluation methods, stipulates that when exporting agricultural gen etically modified organisms to 
China, foreign companies must ensure that their products have been permitted to be used for the 
same purpose as they are intended to in China and have been put on sale on the market in the 
exporting country or region before t hey apply for safety evaluation by China. This is an institutional 
arrangement for the purpose of preventing risks of genetic modification technologies and ensuring 
the safety of imported genetically modified products and also a policy provision formulated  on the 
basis of the development and management status quo of genetically modified organisms in China. 
In recent years, China 's import of biotechnology products has been growing fast and steadily. 
Rigorous examination and approval of such products can effe ctively boost public confidence in the WT/TPR/M/3 75/Add.1  
 
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  safety of genetically modified products and therefore objectively facilitate smooth conduct of the 
international trade concerned.  
 
Question  
  
b. How does China ensure that its evaluation of the safety of agricultural bio technology products 
is based solely on their intended use when it requires up to two -year, in -country environmental field 
studies for products intended for import, not cultivation?  
Reply  
The safety evaluation of biotechnology products is an evaluation of r isks. The factors to be considered 
in safety evaluation, as well as the measures taken to prevent risks accordingly, are relevant with 
potential risks that may arise in the import, transport and processing of the products. China imports 
a large quantity of  biotechnology products every year. It is true that they are imported for processing 
purposes, but agricultural genetically modified organisms often have bioactivity and may be 
inadvertently released into environment in the process of their import, transpo rt or processing in 
China. So there is the need to conduct environmental safety evaluation over biotechnology products 
to be imported in order to ensure that there is a sufficient body of scientific evidence to pr ove their 
environmental safety.  
16. In response  to a question from the United States regarding page 76, paragraph 3.138, of the 
Secretariat 's report,  China responded that China 's regulatory authorities adhere to the 270 -day 
timeline set forth in China 's regulations governing the review and approval of agricultural 
biotechnology product applications.  However, as mentioned in the United States ' original question, 
ten applications that have made it to the final stage of China 's review and approval process have 
been pending for an average of 58 months.  
Ques tion 
a. Can China explain when those ten products will receive their final review?   
Reply  
Relevant products are under review right now.  
Question   
b. What steps is China taking to ensure adherence to the regulatory timeline of 270 days in the 
future?  
Reply  
Chinese regulatory authorities for the safety of agricultural genetically modified organisms have 
always undertaken their review, approval and supervision work related to agricultural genetically 
modified organisms in strict accordance with Chinese laws an d regulations and adhered to the 
timeline set forth in China 's regulations governing the review and approval of agricultural 
biotechnology product applications. In fact, the American side has a misunderstanding of the 
examination and approval time limit se t by Chinese regulations: the 270 -day time frame does not 
include the time for technical review; furthermore, each application has to be timed separately, and 
the time spent on each application cannot  be added up.  
According to provisions of China 's Safety  Control Regulation for Agricultural Genetically Modified 
Organisms, the examination and approval of agricultural biotechnology products to be imported 
requires a safety test over the products ' transformants that have been permitted to enter the country 
by a technical testing organization entrusted by the Ministry of Agricultural and Rural Affairs and a 
safety evaluation by the National Commission for the Safety of Agricultural Genetically Modified 
Organisms. Only when the products are found qualified by th e test and the evaluation will the 
Ministry of Agriculture and Rural Affairs approve the products accordingly. All applications found 
unqualified by the test or failing to pass the safety evaluation will be rejected by the Ministry of 
Agriculture and Rural  Affairs. If China informs an applicant of the review result, it means the closure WT/TPR/M/3 75/Add.1  
 
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  of a review process. Subsequently, if the applicant supplements or revises its application materials 
according to opinions of the National Commission for the Safety of Agric ultural Genetically Modified 
Organisms and files its application again, then a new process of application begins. Some products 
have been filed several times due to the defects of their application materials. In these 
circumstances, the time spent in the r eview process shall not be simply added up. Moreover, 
according to provisions of China 's Administrative Licensing Law, if inspection, testing or expert 
review is required for licensing according to law, the time spent on such inspection, testing or expert 
review shall not be reckoned in the time limit set for the licensing process.  
Question  
17. In response to a question related to page 76, paragraph 3.138, of  the Secretariat 's report , 
China responded that it has provided the United States with feedback about it s July 2017 inspection 
related to the lifting of China 's ban on imports of US poultry related to avian influenza (AI) and that 
it hopes to continue technical exchanges with the United States.  However, the United States has 
already provided China with all o f the information needed in order for China to confirm that it can 
lift the AI -related ban on imports of US poultry, consistent with international practice guidance of 
the OIE, which eliminates the need for further technical exchanges.  Can China inform the  United 
States when it will lift this ban?  
 
Reply  
 
When demanding information on the specific time for China to lift the AI -related ban, the United 
States shall in the first place inform China of the timeline for itself to lift its ban on the import of 
cooked poultry meat made in China. Since 2000, the United States has been prohibiting the import 
of poultry meat from China. After several rounds of exchanges between the two sides, the United 
States agreed to remove the ban on the import of cooked poultry m eat made in China at a meeting 
of the 15th China -US Joint Commission on Commerce and Trade in 2014. The United States further 
stated in April 2005 that there had been no technical problems for the export of cooked poultry meat 
made in China to the United S tates and all that is needed is to perform relevant legal procedures. 
However, the United States repeatedly refused to lift the ban on grounds of fiscal appropriation bills, 
reviews or field investigations, etc. In consequence, the export of cooked poultry  meat made in 
China to the United States saw no substantial progress all the while. A United States expert group 
conducted the 7th field investigations in China in May 2015 and reaffirmed in its investigation report 
that the Chinese and American poultry sl aughtering supervision and thermal processing systems are 
equivalent and advised the United States to start a legislative process with respect to the equivalence 
between the Chinese and American poultry slaughtering supervision and thermal processing 
systems. However, the United States have not yet permitted the import of cooked poultry meat 
made in China to date.  
3.3.4.1.1  Legislative and institutional framework  
 
18. In a question addressing page 77, paragraph 3.145, of the Secretariat 's report, the United 
States referenced the Anti -Monopoly Law and asked China to identify industries that qualify for 
protection by the state of their legitimate business interests, and what specific protection is afforded 
to these industries.  China responded that the Anti-Monopoly Law did not clarify the specific content 
of industries concerning the lifeline of the national economy and national security.  China also 
responded that enterprises in these industries shall not abuse their dominant market positions or 
elimina te or restrict market competition.  These statements are not responsive to the United States ' 
question, which asks China to identify the specific protection afforded to these industries.  
Question   
a. Please identify the criteria by which the anti -monopoly regu latory authorities identify 
industries that affect the lifeline of the national economy.  If there is no such criteria, which 
government or Communist Party entity provides guidance to the anti -monopoly regulatory 
authorities on which industries affect the l ifeline of the national economy?   
b. Do the anti -monopoly authorities have the discretion to determine these industries on their 
own?  WT/TPR/M/3 75/Add.1  
 
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  c. What specific protection is afforded to these industries?  
Reply to questions a -c 
The Anti -monopoly Law provides in Article 7  that "With respect to industries which are under the 
control of the State -owned economic sector and have a bearing on the lifeline of the national 
economy or national security and to industries which exercise monopoly over the production and 
sale of certa in commodities according to law, the State shall protect the lawful business operations 
of undertakings in these industries, and shall, in accordance with law, supervise and regulate their 
business operations and the prices of the commodities and services provided by them, in order to 
protect consumers' interests and facilitate technological advance. " However, this is just a principled 
provision; answers to the question of which specific protections have been afforded to which 
industries lie in such industr y-specific laws and regulations as the Civil Aviation Law, the Postal 
Service Law, the Tobacco Monopoly Law, the Table Salt Monopoly Measures and the 
Telecommunications Regulation, etc. Moreover, both the Anti -monopoly Law and the foregoing 
industry laws a nd regulations provide that relevant enterprises shall not abuse their dominant 
market positions or otherwise eliminate or restrict market competition.  
Question   
19. In a question addressing page 78, paragraph 3.150, of the Secretariat 's report, the 
United  States asked China to explain how its competition review mechanism applies to industrial 
plans like Made in China 2025, which aim to enhance the Chinese government 's involvement in 
certain industries ' economic activities in order to influence market outcom es. In its response, China 
explained generally the processes for conducting the fair competition review.  However, China did 
not directly address the question asked by the United States.  Please explain how the review 
mechanism will apply to industrial plans  like Made in China 2025.   
Reply  
The State Council issued Opinions on Establishing Fair Competition Review Systems amid Market 
System Development on 1 June 2016. The State Council 's departments and the provincial people 's 
governments as well as their subor dinate departments have begun to conduct fair competition 
review since July 2016. Meanwhile, provincial people 's governments began to roll out the mechanism 
across their respective administrative territories and provided guidance for county -level people 's 
governments in undertaking the competition review in 2017. After the review was put into operation, 
all policy makers must perform fair competition review in formulating rules and regulations, 
normative documents or other policy measures involving the econ omic activities of market players.  
Question   
20. In questions addressing page 87, paragraph 3.182, of the Secretariat 's report, the United 
States asked China to provide justification for the Chinese government not reporting data on the 
magnitude, frequency and  terms and conditions of capital injections into state -owned enterprises 
from all state and state -linked entities at both the central and sub -central government levels.  In its 
response, China stated that the information related to the central state -owned c apital operation 
budget and actual budget is disclosed on the website of the Ministry of Finance, including the capital 
injection of state -owned enterprises, and that relevant information could be found on relevant 
websites.  Can China please provide a list  of all the relevant websites where this information can be 
found?  
Reply  
According to relevant requirements of the Government Information Disclosure Regulations, the 
information related to the central state -owned capital operation budget and actual budget  is 
disclosed on the website of the Ministry of Finance, including the capital injection of state -owned 
enterprises. Relevant information can be found on relevant websites.  WT/TPR/M/3 75/Add.1  
 
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  3.3.6 Government procurement  
Question  
21. In addressing page 91, paragraph 3.191, of the Secretariat 's Report, the United States asked 
China whether it planned to revise its procurement system to no longer require foreign medical 
devices companies to manufacture their products in China in order to be eligible to offer their 
products to pub lic hospitals and their patients in China. The United States also asked China why it 
will not permit foreign medical devices companies to base their decision on the location of 
manufacturing facilities solely on health and business factors.  China responded  only "current 
procurement practices are carried out in accordance with the law. " However, this statement does 
not provide a response to either question from the United States. Can China respond to the two 
questions that the United States asked regarding p aragraph 3.191?  
Reply  
Current procurement practices are carried out in accordance with the law . 
3.3.7 Intellectual property rights  
22. In addressing page 106, paragraph 3.257, of the Secretariat 's report, the United States asked 
several questions, but not all  of them were directly answered.  
Question   
a. In its first question, the United States asked China to explain how the draft Implementing 
Measures for the Protection of Drug Trial Data would not unfairly disadvantage foreign companies 
given that Chinese compan ies are more likely than foreign companies to conduct clinical trials in 
China and apply for marketing first in China, and the penalties for not meeting those two criteria 
proposed in the draft Implementing Measures. China 's response states only that the s tandards are 
applied equally to both foreign and domestic companies.  Could China respond to the question asked 
by the United States?   
Reply  
From an empirical point of view, national enterprises will, under an absolute majority of 
circumstances, opt to launch the drugs they have developed first in their domestic markets. So apart 
from the subjective choice of enterprises, whether the review and  approval standards see domestic 
and foreign enterprises as equals is the key to establishing a fair market competition mechanism. 
Currently, the drug clinical trial standards, relevant technical requirements and a series of drug 
review and approval provis ions, including the measures for the protection of drug trial data being 
drafted, of China have the same requirements for domestic and foreign enterprises and give them 
the same treatment on an equal footing.  
b. In its next question, the United States asked China how the location and time -based conditions 
and limitations on regulatory data protection (RDP) terms comport with China 's WTO commitment 
to provide at least six years of RDP and China 's national treatment obligations under WTO 
agreements.  China respo nded that data protection of not less than six years is provided for under 
the draft Implementing Measures for the Protection of Drug Trial Data and that there are no location 
requirements for clinical trials. However, based on Article 5 of this draft meas ure, it appears that 
China is proposing one to five years of RDP if the application for marketing in China takes place after 
it has been filed in another country. It also appears that companies that provide foreign data with 
no Chinese patients will receiv e a quarter of the base RDP.  If the foreign data is supplemented with 
Chinese clinical trial data, the company will receive one -half of the base RDP. Lastly, it appears that 
China would provide no RDP to a company that files its application in China six ye ars after filing its 
application in another market.  This appears to mean that China would provide for as little as three 
months of RDP in the case of a new pharmaceutical product that was originally applied for outside 
of China and subjected to clinical studies outside of China. This proposed treatment is in contradiction 
to China 's response that it provides no less than six years of RDP. Can China explain this 
contradiction?  In addition, given that Chinese companies are more likely than foreign companies  to WT/TPR/M/3 75/Add.1  
 
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  conduct their clinical trials in China, can China explain how these proposed provisions comport with 
China 's national treatment obligations?  
Reply  
China is now studying the issue and making improvement based on opinions solicited in the previous 
stage . The United States may heed developments of the issue in the later stage.  
Question   
23. In addressing page 106, paragraph 3.257, of the Secretariat 's report, the United States asked 
China if it would consider suspending the Measures for the Administration of Scientific Data so that 
it could provide a public notice -and-comment period.  China did not respond to this question.  Will 
China consider providing a notice -and-comment period, especially given the measure 's broad 
implications?  
Reply  
The Measures for the A dministration of Scientific Data has been promulgated and put into effect on 
17 March 2018. The measures attach importance to the protection of intellectual property , clearly 
regulate the behaviour  of scientific data users and therefore manifest respect to  the scientific data 
as intellectual property.  
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing  
24. In a question addressing page 141, paragraph 4.93, of the Secretariat 's report, the United 
States asked about China 's Administrative Measures for Implementing Parallel Policies including 
Calculation of Passenger Vehicles Corporate Average Fuel Consumption and New Energy Vehicle 
Points.  The United States seeks clarifications regarding certain aspects of China 's responses.  
Question   
a. When asked to confirm whether p ost-2020 NEV credit targets been set, China did not answer 
the question.  Could China confirm whether post -2020 NEV credit targets have been set?  If so, can 
China provide any target values that have been determined?  
Reply  
This question actually has been answered last time, but we 'd like to reaffirm that after the 
Administrative Measures for Implementing Parallel Policies including Calculation of Passenger 
Vehicles Corporate Average Fuel Consumption and New Energy Vehicle Points (hereinafter referred 
to as  "Measures ") was released in September 2017, the Ministry of Industry and Information 
Technology, in collaboration with other departments, have started to study systems administering 
the Calculation of Passenger Vehicles Corporate Average Fuel Consumption and New Energy Vehicle 
Points; and the work is still under way right now.  
Question   
b. When asked to explain whether enterprises that generate surplus NEV credits are required to 
sell their credits, China did not answer the question.  Could China clarify whether there is a 
requirement that all surplus NEV credits be sold, or alternatively whether enterprises that hold 
surplus NEV credits have discretion to sell or retain those credits?  
Reply  
This question actually has been answered las t time, but we 'd like to reaffirm that the Measures 
provide that positive NEV points can be freely traded and passenger vehicle enterprises can opt to WT/TPR/M/3 75/Add.1  
 
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  sell their NEV points or not in light of their own circumstances. It needs to be noted, however, that 
the untraded NEV points will be nullified in the next calculation year except in 2019.  
  
25. In addressing page 142, paragraph 4.97, of the Secretariat 's report, the United States asked 
about Chinese investment restrictions in the automobile sector.  The United St ates included several 
questions regarding whether Article 10 of the draft Regulations for the Administration of Investment 
in the Automobile Industry (issued by NDRC on 17 May 2018, and re -posted for public comment on 
4 July 2018), which proposes to prohib it investment projects in existing or new "independent " 
enterprises that would be constructing production capacity for fully assembled independent fuel 
vehicles in passenger car and commercial vehicle categories, might negatively impact the ability of 
wholly foreign -owned enterprises to take advantage of China 's plan to lift foreign equity caps for the 
manufacturing of commercial vehicles by 2020 and for passenger vehicles by 2022.  Recognizing that 
China has confirmed that it is still in the process of soli citing public comments on this draft measure, 
the United States seeks further clarification about Article 10.  
Question  
  
a. Could China clarify whether the term "fuel vehicle " would refer to traditional fuel vehicles, i.e., 
internal combustion engine vehicles ?  
Reply  
Please see the Regulations.  
b. Could China clarify how it would interpret the meaning of "independent enterprises " in this 
context, including whether it would include wholly foreign -owned enterprises?  
Reply  
Yes. It is applicable to wholly foreign -owned enterprises.  
Question   
c. Could China clarify under what circumstances, if any, would it be possible under the draft 
measure to establish a wholly foreign -owned enterprise manufacturing traditional fuel commercial 
vehicles in 2020 or a wholly fo reign-owned enterprise manufacturing traditional fuel passenger cars 
in 2022?  
Reply  
The Notice of the State Council on Issuing a 2016 Catalogue of Investment Projects Approved by 
the Government (Guo Fa [2016] No.  72) dated December 2016 expressly required  authorities to 
"strictly control the increase in the production capacity of traditional fuel -driven vehicles and in 
principle not approve the construction of new enterprises manufacturing traditional fuel -driven 
vehicles ". In order to carry out this decis ion of the State Council, we have drafted the Regulations 
for the Administration of Investment in the Automobile Industry (for public comment), which is 
applicable to all enterprises across the country.  
4.4.1 Telecommunications  
Question  
26. In a question addressing page 148, B ox 4.1, of the Secretariat 's report, the United States 
asked a question about private enterprise (not state -owned enterprise) participation in China 's basic 
telecommunications sector.  In its response, China confirmed that th ere are some private operators 
in the basic telecommunications sector.  How many of these "private operators " in the basic 
telecommunications sector are foreign -invested companies?  Which services are they providing?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
All the three basic telecommunicat ions operators as well as several private operators in the 
telecommunications sector have investment from foreign investors. They provide multiple services 
in fixed communication, mobile communication and data communication, etc.  
Question   
27. In a question ad dressing page 148, B ox 4.1, of the Secretariat 's report, the United States 
asked for information on the number and type of wholly foreign -owned value -added 
telecommunications services providers.  In its response, China stated that there are 24 wholly 
foreig n-owned enterprises, mainly providing e -commerce and call centre  business services.  
a. How does China define "e-commerce services " in practice?  What if any connection does it have 
with the provision of telecommunications services?   
Reply  
The E -commerce Law is right now being drafted. And there is no universally applicable definition for 
"e-commerce " nowadays. With respect to the relationship between telecommunications services and 
e-commerce, e -commerce services consistent with the definit ions of relevant businesses in the 
Telecommunication Services Classification Catalogue (2015) are administered as telecommunication 
services.  
Question   
b.  Are there any wholly foreign -owned value -added telecommunications services providers 
supplying services other than e -commerce and call centre  business?  If so, for what type of services?  
Reply  
Apart from the two services mentioned above, several wholly for eign-owned value -added 
telecommunications services providers are providing multi -party communication and internet access 
services in China.  
Question   
28. In a question addressing page 150, T able 4.25, of the Secretariat 's report, the United States 
asked about the domestic legal basis for China 's denying market access for and thus discriminating 
against foreign suppliers of services not specifically listed in its GATS schedule.  China 's response 
appears contradictory.  On the one hand, China states that not all se rvices in the 2015 
telecommunications catalogue correspond to its GATS commitments, implying that foreign 
companies may not be licensed for the supply of certain services.  On the other hand, China states 
that "no laws or regulations pose discrimination aga inst foreign funded telecommunications 
suppliers " and that "[f]or eligible companies . . . applications are accepted . . . and licen ces issued. " 
a. Does China agree that its schedule of GATS commitments with respect to value -added services 
is not limited to a  closed list of services?   
Reply  
The Schedule of GATS commitments is a positive list so that members of the WTO have obligations 
only with respect to services included on the schedule and have right to not open up services 
excluded from the schedule. Given  the fact that China did not make any commitment to opening up 
other value -added telecommunication services, the schedule of China is therefore a closed list. China 
has made several instances of communication with the US with respect to this issue.  WT/TPR/M/3 75/Add.1  
 
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  Questio n  
b. Are foreign companies eligible to obtain licen ces for services not specifically listed in China 's 
GATS schedule?  If not, does China agree that, for those services, it discriminates against foreign -
funded suppliers?  If so, what is the domestic legal basis (separate from China 's GATS commitments) 
that authorizes China 's regulator to engage in this discrimination?   
Reply  
The foundation and primary basis of China 's opening -up efforts in the telecommunication area are 
its specific commitments made in the GATS schedule. The schedule of GATS commitments is a 
positive list so that foreign companies cannot  engage in other telecommunication services than 
provided in the schedule. The domestic document for China to carry out the schedule of GATS 
commitments is t he Telecommunication Services Classification Catalogue, which includes all the 
telecommunication services China has undertaken to open up in its GATS schedule. In fact, China 
has opened up all the services it has undertaken to do so; there is no such thing  that "foreign 
companies are not able to obtain licen ces for them to provide certain services ". Moreover, China has 
taken the initiative to pilot a new measure of opening up several value -added telecommunication 
services in its free trade zones, thus widen ing the scope of opening -up. 
Question   
29. In a question addressing page 152,  paragraphs 4.132 -4.133, of the Secretariat 's report, the 
United States asked about the domestic legal basis for China 's practice of restricting market access 
for foreign suppliers of cloud computing services, which China implements by, inter alia , denying 
foreign service suppliers the ability to obtain Internet Data Center (IDC) licen ces. China 
acknowledged the practice, stating:  "China 's cloud service is not open to foreign investment. " 
However, the question on the domestic legal basis for engaging in this discrimination remains 
unanswered.  Can China identify the domestic legal basis that prevents the regulator from accep ting 
an application and issuing a licen ce for a foreign -invested company to supply IDC and other cloud -
related services?  On what domestic legal basis is the regulator authorized to refuse such an 
application?  
Reply  
As the GATS schedule is a positive list,  services not included in the schedule are not to be opened 
up to foreign investors and there is no need for domestic laws to account for that. Furthermore, the 
Special Administrative Measures (Negative List) for the Access of Foreign Investors (2018) rele ased 
by China recently also explicitly requires that the scope of opening -up is limited only to the 
telecommunication services China has promised to open up upon its accession to the WTO.  
Question  
30. In another question addressing page 152, paragraphs 4.132 -4.133, of the Secretariat 's report, 
the United States asked about computer time sharing services (a form of cloud computing, 
specifically listed in China 's GATS schedule).  China 's responded only that "[c]loud computing services 
were not part of China 's WTO commitments. " 
Question   
a. Has China licensed any supplier of computer time sharing services?  
Reply   
According to the Telecommunication Services Classification Catalogue (2015) of China, computer 
time sharing services are not part of the telecommunication services. With respect to the 
classification of cloud computing, the two sides may discuss and communicate at the CSC committee.  
Question   
b. What regulatory category does China apply to these services?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please see the reply to questio n a.  
Question  
c. If China considers computer time sharing services to be subject to the 
2015 telecommunications catalogue, please identify the applicable licensing category.  
Reply  
Please see the reply to question a.  
31. In addressing page 152, paragraphs 4.134 -4.135, of the Secretariat 's report, the United 
States posed several questions regarding restrictions on the use of virtual private networks (VPNs) 
and leased lines.  While China helpfully responded that "[r]egulations in the Notice [on Cleaning up 
and Regulating the Internet Access Services Market] will not affect normal cross -border internet 
access " questions of what constitute "normal " and "legal compliant business operations " remains, 
as does the scope of what constitutes "business self -use" of lease d lines and VPNs.  
 
Question   
a. Can China confirm that any enterprise in China seeking to purchase cloud computing services 
from a foreign supplier located outside of China (e.g., Haier seeking to purchase cloud computing 
services from Alicloud in San Jose) could utilize VPNs or leased l ines to access the foreign data 
centre ?  
b. To phrase the same question differently, is one company 's purchase of a service from another 
company outside of China, which requires linking to that third -party with either a leased line or a 
VPN, considered "self-use".  
Reply to a -b 
According to provisions of Article 19, the Measures for Administration of International 
Communications Entry and Exit Bureaus, dedicated transmission channels for international 
communications can only be used for P2P communication purpo ses within the scope of business 
approved and by the users themselves and shall not be used for the purpose of operating 
telecommunication services.  
Question   
32. In a question addressing page 153, paragraphs 4.136, of the Secretariat 's report, the United 
States noted the high degree of concern expressed by the United States, other WTO members and 
international stakeholders regarding China 's policies, including in connection with its Cybersecurity 
Law, affecting cross -border data flows and data localization  and asked for China 's confirmation that 
it would revise its approach to take into account these concerns.  China did not directly respond to 
this question except to state that it "is willing to broaden exchange and cooperation with other 
countries on this matter. " 
a. Can China provide any further assurances regarding its willingness to revise its approach to 
take into account concerns that have been raised by the international community?  
Reply  
It is an internationally accepted practice to tighten the managemen t of cross -border data flows. 
Many countries have made laws or applied administrative measures in this regard. For example, the 
Safe Habor and Privacy Shield agreements between the United States and the EU are signed for the 
very purpose of regulating the transfer of personal information across the Atlantic Ocean. While 
posing the requirement that critical information infrastructure operators should retain their data 
within the country, the Cybersecurity Law of China also gives full consideration to the dem and of 
economic globalization for cross -border data flows.  WT/TPR/M/3 75/Add.1  
 
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  Question   
b. In its response, China stated that its policies on cross -border data flows and data localization 
apply to operators of "critical information infrastructure, " not to all network operators.  However, it 
is our understanding that China 's draft implementing measures relating to cross -border data flows, 
including the draft Measures on the Security Assessment of Cross -Border Transfer of Personal 
Information and Important Data and the draft Nation al Standards ‒ Information Security Technology 
‒ Guidelines for Data Cross -Border Transfer Security Assessment, would apply to all network 
operators.  Has China released a later draft that revises that particular aspect of its policies?   
Reply  
The critical information infrastructure protection system aims to ensure the security of information 
systems and facilities that bear on the national security, national livelihood or public interest. 
According to national practices, the identification of the scope of c ritical information infrastructure is 
a rather complicated issue and in fact a process of making improvements and adjustments on an 
ongoing basis. Right now, Chinese regulatory authorities are stepping up efforts to study and 
formulate a Security Protectio n Regulation for Critical Information Infrastructure according to 
requirements of the Cybersecurity Law, with a view to identifying the scope of critical information 
infrastructure for related industries.  
Question   
c. In its response, China further stated that, with respect to its policies on cross -border data 
flows and data localization, "relevant requirements apply only to important data, instead of all data. " 
Who decides what data is considered "important "? The enterprise?  A sector -specific regulator?  The 
Cyber Administration of China?  What if they disagree among themselves?  Given the use of such a 
vague term, how is it possible to apply this standard in a manner that is not arbitrary?   
Reply  
The scope of critica l infrastructure is rather small; and important data refer to data that have direct 
or indirect effect on national security. So the review of important data to be sent abroad will not 
restrict or adversely affect the cross -border flow of data. With respect  to data that really need to 
cross the border of the country, Chinese laws have made institutional arrangement and such data 
will be provided after a security evaluation.  
Question   
d. Given China 's broad, vague and self -referencing ( "…and other critical infor mation 
infrastructure ") definition of  "critical information infrastructure " under Article 31 of its Cybersecurity 
Law, how would any connection between that definition and any intended scope of restrictions on 
cross-border data flows address any of the con cerns raised by the international community?  
Reply  
The administration of cross -border data flow will not restrict information flow. In an attempt to 
deliver provisions of the Cybersecurity Law, China is now drafting Measures on the Security 
Assessment of Cross -Border Transfer of Personal Information and Important Data, which aims to 
protect national network security and public interest, rather than obstruct the cross -border transfer 
of data, not to mention restrict international trade.  
Question  
33. In address ing page 153, paragraphs 4.138, of the Secretariat 's report, the United States asked 
questions regarding the ability of foreign laboratories to test to Chinese standards under Article 23 
of the Cybersecurity Law.  China did not directly respond to this ques tion except to reference two 
2018 announcements, indicating "qualified establishments have been made clear. " Neither of these 
two measures were notified to the WTO TBT Committee.  WT/TPR/M/3 75/Add.1  
 
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  a. Can China provide a specific response as to recognition of foreign laboratori es under Article  23 
of the Cybersecurity Law and the two 2018 announcements (CNAT 2018 Announcement No. 12 and 
CNAT 2018 Announcement No. 24)?  
Reply  
China performs certification in accordance with related provisions of (1) the Announcement on 
Issuing a Catalogue of Organizations (Batch 1) Designated to Undertake Security Certification and 
Security Testing for Critical Network Devices and Dedicated Network Security Products (CNAT 2018 
Announcement No. 12) made jointly by the National Internet Information Office, the Ministry of 
Industry and Information Technology, the Ministry of Public Security and the National Certification 
and Accreditation Administration and (2) the Announcement on Implementing Requirements for 
Security Certification of Critical Networ k Devices and Dedicated Network Security Products (CNAT 
2018 Announcement No. 24).  
Question  
b. Will China notify these two CNAT Announcements to the WTO TBT Committee?  
Reply  
 
CNAT 2018 Announcement No. 12 and CNAT 2018 Announcement No. 24 are both made with a view 
to fulfilling the requirements of Article 23 of the Cybersecurity Law and the Announcement on Issuing 
a Catalogue of Critical Network Devices and Dedicated Network Security Products (Batch 1). The 
organizations used are all the ones used by existing  network security testing and certification 
systems of China. Article 23 of the Cybersecurity Law does not set up new testing and certification 
systems, either.   
 
34. In addressing page 154, paragraph 4.141, of the Secretariat 's report, the United States asked  
questions regarding Article 37 of China 's Cybersecurity Law and its relationship to China 's policy to 
restrict cross -border data flows.  In its response, China stated that it is now working on the draft 
Measures on the Security Assessment of Personal Infor mation and Important Data.  
Question   
a. How does the referenced draft Measures on the Security Assessment of Personal Information 
and Important Data relate to China 's previously released draft Measures on the Security Assessment 
of Cross -Border Transfer of Pe rsonal Information and Important Data and the draft National 
Standard ‒ Information Security Technology – Guidelines for Data Cross -Border Transfer Security 
Assessment?  Would referenced draft Measures on the Security Assessment of Personal Information 
and Important Data replace either or both of these two draft measures? Will the Measures replace 
either or both of the two previous draft measures?  
Reply  
The Measures are being formulated right now. The regulatory bodies of China are making revisions 
and impro vements to the Measures now according to results of the public comment process.  
Question   
b. Can China confirm that it intends to provide an opportunity for the public to provide comments 
on any new draft measures in this area?  
Reply  
In fact, the regulatory bodies of China have already solicited public opinions with respect to the 
Measures on the Security Assessment of Cross -Border Transfer of Personal Information and 
Important Data (for public comments) during the period spanning from  11 April to 11 May 2017.  WT/TPR/M/3 75/Add.1  
 
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  4.4.2 Financial services  
Question  
35. In addressing page 156, paragraph 4.154, of the Secretariat 's report, the United States asked 
for information regarding China 's regulation of wholly foreign -owned credit rating agencies (CRAs).  
In its response, China clarified that it does not intend to impose any restriction on the business scope 
of foreign CRAs and made reference to a July 2017 announcement by the People 's Bank of China 
(PBOC) and March 2018 National Association of Financial Mark et Institutional Investors (NAFMII) 
rules.  It is not clear how the July 2017 PBOC announcement in concert with the March 2018 NAFMII 
rules (or any other relevant measures) would guarantee such access.  Can China clarify which 
particular provisions of the id entified measures (or any other relevant measures) are most relevant 
in understanding that China does intend any restrictions on the business scope of foreign CRAs?  
Reply  
In July 2017, the People 's Bank of China issued an Announcement on Matters Relating to the Credit 
Rating Industry (PBOC [2017] No.7) to clarify matters regarding domestic and foreign credit rating 
agencies providing credit rating services on the interbank bond market. In March 2018, the National 
Association of Financial Market Institution al Investors issued the Rules for Registration and 
Evaluation of Credit Rating Agencies on the Interbank Bond Market to elaborate on the registration 
and evaluation mechanisms for credit rating agencies.  
36. In addressing page 159, paragraph 4.170, of the Sec retariat 's report, the United States asked 
several questions regarding China 's licensing process for enterprise annuity services, including 
whether China has approved any licen ces for foreign -invested companies.  In its response, China 
referenced a May 2018  opening of its licensing window.  China also asserted that "[q]uite a number 
of" institutions with the qualifications for enterprise annuity fund management are foreign -invested 
ones.  
Question   
a. Which Chinese regulator or regulators oversaw the May 2018 licensing process? Were any 
foreign -invested companies granted licen ces as part of the May 2018 opening of the licen ce window?  
If so, for which components of enterprise annuity services were licen ces issued (i.e., administrator, 
custodian, trust services, asset manager)?  
Reply  
According to existing policies, the licensing process is undergone on an irregular basis and licen ces 
are increased appropriately only when the size of the enterprise annuity fund market expands. 
Before the certification process, the  Department of Human Resources and Social Security will 
announce to the public the number of licen ces to be granted, the conditions for application, the 
content and format of application materials and the time and place of submission, etc, informing 
financ ial institutions intending to apply for the licen ces. In response to the needs of enterprise 
annuity fund management, China has adjusted the qualifications of four managers already eligible 
for managing enterprise annuity funds in 2018. For details, please  see the Notice of the Department 
of Human Resources and Social Security on Announcing Adjustment to Qualifications of Enterprise 
Annuity Fund Management Organizations (Ren She Bu Han [2018] No.  64). 
Question   
b. How many foreign -invested companies in total (since China started licensing enterprise 
annuities providers) have been able to obtain licen ces and for which components of enterprise 
annuity services?   
Reply  
No licen ces have been granted to wholly foreign -owned enterprises or those reg istered overseas so 
far. WT/TPR/M/3 75/Add.1  
 
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  Question  
c. China 's original answer seems to suggest that licen ces have been granted only for asset 
management services.  Is this a correct understanding and if so, how many foreign -invested 
companies have obtained this type of licen ce? Why is it not p ossible for qualified foreign -invested 
companies to obtain licen ces for all components of enterprise annuities services?  
Reply  
To date, 35 organizations have obtained eligibility for managing enterprise annuity funds; and 
around 20 of them have foreign investors holding their equities.  
4.4.3. Legal services  
Question  
37. In questions addressing page 160, paragraphs 4.173 and 4.175, of the Secretariat 's report, 
the United States asked for the policy rationale for imposing nationality requirements on the ability 
to supply legal advice on Chinese commercial law and simultaneously forbidding foreign law firms 
from hiring Chinese qualified l awyers.  The United States was seeking to go beyond the issue of what 
practices, laws and GATS commitments were in place in order to understand what public purpose 
China viewed these restrictions as achieving.  The only explanation that was provided was that  "it is 
an international practice that foreign law firms shall not provide legal services in their host country. " 
This did not answer the question, nor is it accurate.  The vast majority of countries permit foreign 
firms to advise on domestic commercial law  through the hiring of domestic qualified lawyers.  In 
China 's view, how is the quality of service provided to Chinese businesses or consumers, protection 
of the public or any other public policy rationale improved by not allowing international firms to 
employ domestically qualified lawyers?  
Reply  
 
According to provisions of the Administrative Regulation for Representative Offices of Foreign Legal 
Firms in China, "representative offices and their representatives can only engage in the following 
activities o ther than Chinese law affairs… ".The Provisions of the Ministry of Justice on Implementing 
the Administrative Regulation for Representative Offices of Foreign Legal Firms in China expressly 
stipulate in Article 2 that "the foreign legal firms referred to in  these provisions mean [legal firms] 
duly incorporated in foreign countries, composed of foreign lawyers practicing laws and engaged in 
other legal services than Chinese law affairs… " In accordance with the foregoing provisions, China 
imposes a nationality  requirement with respect to advisory services relating to the commercial law 
of China. Moreover, such imposition is in line with China 's commitments upon its accession to 
the WTO.  
 
According to provisions of the Lawyers ' Law of China, furthermore, persons  qualified as Chinese 
lawyers are "practicing Chinese lawyers " only when they actually practice laws in Chinese legal firms. 
Once they leave Chinese legal firms, they are no longer practicing Chinese lawyers and shall not 
engage in Chinese law affairs in t he name of Chinese lawyers.  
38. In a question addressing page 161, paragraph 4.184, of the Secretariat 's report, the United 
States asked China to explain why it imposes 3 -year wait requirements for establishing additional 
representative offices of foreign law  firms.  China explained that the rationale is based on the 
experience that it typically takes a representative office three years to "operate normally " and is 
necessary to protect the public interest.  
Question s 
a. Given that, in many countries, it takes less than one month for a law firm to obtain necessary 
permissions and to begin operations, why does the process typically take three  years in China?   
b. How does imposing a 3 -year wait requirement protect the public interest? Does China view 
the concept of "public interest " as including consideration of market conditions?   WT/TPR/M/3 75/Add.1  
 
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  Reply to a -b 
The 3 -year limit covers not only the time required for obtaining necess ary licen ces and starting 
operations, but also the time required for foreign legal firms to achieve normal operations. The legal 
practice experience of foreign legal firms 'representative offices in China over the past decades 
indicates that the 3 -year req uirement is quite reasonable and in the interest of foreign representative 
offices. The 3 -year condition is an administrative requirement, not a restriction on the number of 
representative offices to be established. The concept of "public interest " is not a consideration of 
market conditions, either.  
Question   
39. China 's response to the US question addressing page 162, paragraph 4.190, of the 
Secretariat 's report, which deals with on accounting, auditing and bookkeeping, ends with "This 
stipulatio n….." Can China provide the remainder of its response to this question?   
Reply   
According to China 's commitments to the WTO, China poses no market access and national 
treatment restrictions on the cross -border supply mode of services  under the accounting, auditing 
and bookkeeping (CPC862) heading. Moreover, according to provisions of the Registered Public 
Accountant Law of the People 's Republic of China, registered public accountants must join accounting 
firms to practice their profession; and in conducting businesse s provided for in the Registered Public 
Accountant Law, they must have the services uniformly accepted by the accounting firm s they serve 
and sign commission contracts with their clients. This provision is a domestic rule, which is consistent 
with the WTO rules.  
Report by China  - WT/TPR/G/375  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , 5.1.3 Eliminating vigorously ineffective supply and pushing forward cutting 
excess and out -dated capacity  
40. In a question addressing page 17, paragraph 5.4, of the Government 's report, the United 
States asked China to explain various aspects of its steel production and, speci fically, if the 
dissolution of 120 million metric tonnes  of steel production included illegal products.  China responded 
that it included both lawful production and illegal projects.  
Question   
a. Given China 's oversight of capacity reduction targets, please ex plain how much of the 
120 million metric tonnes  of closed steel production was lawful capacity reduction and how much of 
this 120 million metric tonnes  was attributed to illegal projects?   
Reply  
The steel industry of China cut 120 million tonnes  of steel production capacity in the year of 
2016-2017. An Absolute majority of the cut capacity was legal capacity of steel enterprises reported 
by local governments and founded upon examination and approval in accordance with law. Such cut 
capacity accou nts for more than 85% of the overcapacity already dissolved.  
Question   
b. The United States also asked China to provide information on the net reduction in steel 
production capacity in China between 2016 and 2017.  China responded that the 120 million metric 
ton figure refers to the absolute and net reduction in steel production capacity.  However, if this 
figure is both an absolute and a net capacity reduction figure, that would mean that China added no WT/TPR/M/3 75/Add.1  
 
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  additional steel capacity during this time period.  Can Chi na please clarify its response?  How does 
China define a net reduction in steel production capacity?  
 
Reply  
 
China has accumulatively reduced legal steel production capacity by more than 120mm tonnes  
during the year of 2016 -2017. As China implemented a stri ct ban on developing new steel production 
capacity, the incremental steel capacity ended up as zero during the same year.  So the net reduction 
of steel capacity during the year of 2016 -2017 stood at more than 120  million metric tonnes . 
 WT/TPR/M/3 75/Add.1  
 
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  MEXI CO 
Informe de la Secretar ía - WT/TPR/S/375  
RESUMEN  
Pg. 13, párrafo 28  
La estrat egia agropecuaria m ás reciente de China tiene por objeto profundizar la reforma estructural 
del lado de la oferta mediante la mejora de las estructuras, la promoci ón de una producci ón 
respetuosa con el medio ambiente, la ampliaci ón de la cadena industrial y de valor del sector, el 
fomento de la innovaci ón y la consolidaci ón del desarrollo rural. China tambi én tiene previsto 
intensificar la reforma de los mecanismos de fi jación de precios de los principales productos 
agropecuarios para fortalecer el papel que desempe ñan los mecanismos del mercado y para 
reformar, con car ácter experimental, el sistema de gesti ón de la tierra a fin de reducir el control 
sobre los derecho s de explotaci ón mientras se mantiene el principio de la propiedad colectiva de la 
tierra. No ha habido cambios en los reg ímenes de importaci ón y exportaci ón de productos 
agropecuarios durante el per íodo objeto de examen. No ocurre lo mismo con el r égimen de ayuda 
directa, que est á siendo objeto de una compleja reforma estructural. China a ún no ha terminado de 
reagrupar los programas de apoyo en megaprogramas, ni de modificar y descentralizar sus 
procedimientos de desembolso (el modelo denominado "d e grandes programas especiales y gesti ón 
de listas de tareas"); se est án poniendo a prueba numerosos programas espec íficos en varias 
regiones, con car ácter experimental. Tambi én se est án reformando los mecanismos de 
sostenimiento de los precios en Ch ina; algunos sistemas se han suprimido o reducido, ya sea en 
términos de alcance geogr áfico o en t érminos de precios de sostenimiento. Se han empezado a 
reducir las reservas constituidas de algunos productos. El nivel general de ayuda a la agricultura e n 
China sigui ó aumentando durante el per íodo objeto de examen.  
Question  
1. Could the Government of China be more specific in how it will carry out the strategy indicated 
in the summary: "The last agricultural strategy China ...", since in the subject in 4.1.2 "Policy, 
objectives and administration" in paragraph 4.5, it refers to how  it is going to be done, but it does 
not refer to how this approach will be carried out .1 
Reply  
The new agricultural strategy of China, which is under the framework of the rura l revitalization 
strategy and mainly based on agricultural supply -side structural reform by optimizing agricultural 
element allocation, productivity layout and industrial structure, intends to improve the agricultural 
product supply quality and industrial operation quality, and to promote the high -quality development 
of agriculture. Policy measures adopted can be concluded mainly as follows:  
Firstly, we will consolidate the agricultural productivity foundation. We will c omprehensively 
implement the permane nt basic farmland special protection system, promote rural land 
consolidation and improvement and enhance the quality of cultivated land. We will e stablish 
the national agricultural science and technology innovation system and deepen the reform 
regarding t he conversion of scientific and technological achievements in agriculture and 
promotion of their application.  
Secondly, we will implement the strategy of revitalizing agriculture through quality. We will 
promote agricultural restructuring, focusing on cor n for the planting industry and live pigs and 
herbivorous animal husbandry for the animal husbandry, and carry out restructuring of the 
fishery industry with an aim of the protection of resources, the reduction of amount and the 
increase of output. We will  strengthen the management  of the production process and promote 
the standardized production of agriculture.  
Thirdly, we will establish a system for the combined development of the primary, secondary 
and tertiary sectors in the rural area. We will m ake gr eat efforts to develop multiple functions 
                                                
1 Since in the subject in 4.1.2 "Policy, objectives and administration" in paragraph 4.5.  WT/TPR/M/3 75/Add.1  
 
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  of agriculture and extend the industrial chain. We will i mplement measures to improve the 
agricultural product processing industry and support local processing of agricultural product s 
in main producing areas to increase the added value. We will improve  the practice of post-
production grading, packing and marketing of the agricultural product s and build a modern 
warehousing and logistics system. We will e stablish leisure and sightseeing  parks and small 
featured towns and develop leisure agriculture and rural tourism.  
Fourthly, we will promote an organic combination between small peasant households and 
modern agricultural development.  We will c ultivate various kinds of specialized and marketized 
service organizations and improve  socialized service of the entire process of agricultural 
production. We will develop  diversified combination and cooperation and increase  the 
organized degree of small peasant households. We will i mprove production  facility conditions 
of small peasant households and enhance their anti -risk capacity.  
Fifthly, we will improve the agricultural support system. We will expand the implementation 
scope and scale of the Green Box Policies and establish a new agricultural p olicy support 
system. We will d eepen the reform in the agricultural product purchasing and storage system 
and price forming mechanism , and implement and promote  the subsidy system of direct ly 
paying to farmers . We will a ccelerate the establishment of the m ulti-level agricultural 
insurance system.  
1 ENTORNO ECON ÓMICO  
1.2 Evoluci ón econ ómica  reciente , pg. 19, párrafo 1.5  
Según un informe del FMI, China tiene el potencial para continuar creciendo a buen ritmo a medio 
plazo, pero tiene que acelerar el proceso de reformas para reequilibrar el crecimiento de modo que 
no dependa tanto del cr édito en el futuro, empleando al mi smo tiempo sus a ún considerables 
reservas para suavizar la transici ón. En el informe se sugiere que las autoridades China's  deben: 
impulsar m ás el consumo por medio del incremento del gasto social y de un c ódigo fiscal m ás 
progresivo; dotar de mayor pr otagonismo a las fuerzas del mercado mediante la reducci ón de las 
subvenciones impl ícitas a las empresas estatales y la apertura de m ás sectores fundamentales a la 
inversi ón privada; y desapalancar m ás el sector privado con el reforzamiento continuado  de la 
reglamentaci ón y la supervisi ón, un mayor reconocimiento de los activos t óxicos y una asignaci ón 
de cr éditos que se base m ás en el mercado. El Gobierno no est á de acuerdo con esa opini ón y 
sostiene que la ley ofrece protecci ón y trato igual itarios a todos los agentes del mercado. Adem ás, 
por lo que respecta a los programas de subvenciones, las autoridades afirman que todas las 
empresas, independientemente del tipo de propiedad, reciben un trato igualitario y que no se 
conceden subvenciones espec íficas a las empresas propiedad del Estado; todas las empresas tienen 
derecho a recibir subvenciones si cumplen ciertos requisitos. Asimismo, China ha tomado una serie 
de medidas para favorecer el desapalancamiento de las empresas, como la adopci ón de un marco 
legal para las quiebras, las fusiones y reestructuraciones, la optimizaci ón de la estructura de la 
deuda de las empresas y la conversi ón de deuda en capital, entre otras.  
Question  
2. ¿Puede China ampliar sobre las medidas que favorecen el desapa lancamiento de las empresas 
como la adopci ón de un marco legal para las quiebras, fusiones y reestructuraciones, optmizaci ón 
de la estructura de la deuda de las empresas y la convers óin de deuda en capital?   
Reply  
Reducing the leverage ratios of enterprise s is one of the key tasks of the supply -side structural 
reform. In accordance with the requirements of the Opinions on Vigorously, Steadily and Properly 
Reducing Corporate Leverage Ratios  issued in 2016, relevant departments and market entities have 
taken seven major comprehensive measures to vigorously, steadily and properly promote the work 
related to reducing corporate leverage ratios and preventing potential debt risks, including 
promoting mergers and acquisitions, improving modern enterprise systems to  strengthen self -
discipline, revitalizing stock assets, optimizing debt structure, developing market -oriented banking 
debt-for-equity swap in an orderly manner, legal bankruptcy and developing equity financing.  WT/TPR/M/3 75/Add.1  
 
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  2 REG ÍMENES DE COMERCIO E INVERSI ÓN 
2.2 Marco  y objetivos de la pol ítica comercial , 2.4.12 Marco institucional , pg. 35, 
párrafo  2.8 
El 17 de marzo de 2018, el 13o Congreso Nacional del Pueblo adopt ó una decisi ón sobre el plan de 
reestructuraci ón nacional del Consejo de Estado. El plan prev é, entr e otras cosas, la creaci ón del 
Ministerio de Recursos Naturales, el Ministerio de Ecolog ía, el Ministerio de Agricultura y Asuntos 
Rurales, el Ministerio de Cultura y Turismo y la Comisi ón Nacional de Salud, as í como la 
reestructuraci ón del Ministerio  de Ciencia y Tecnolog ía y del Ministerio de Justicia. Tambi én se 
reestructurar án otros organismos y atribuciones del Consejo de Estado, como la Oficina Estatal de 
la Propiedad Intelectual y los sistemas impositivos nacionales y locales, y se establecer án los 
organismos siguientes: Administraci ón Estatal de Reglamentaci ón del Mercado, Administraci ón 
Estatal de Radio y Televisi ón, Comisi ón de Reglamentaci ón Bancaria y de Seguros de China, Agencia 
Estatal de Cooperaci ón Internacional para el Desarr ollo, Administraci ón Estatal del Seguro M édico, 
Administraci ón Estatal de Cereales y Reservas y Administraci ón Estatal de Inmigraci ón.  
Question  
3. ¿En qué fecha se establecerá el Ministerio de Recursos Naturales y el Ministerio de Medio 
Ambiente Ecológico?  
Reply  
On 13 March 2018, the first session of the 13th National People's Congress passed the institutional 
reform plan by the State Council. On 10 April 2018, the Ministry of Natural Resources of the People's 
Republic of China was formally establ ished. On 16 April 2018, the newly formed Ministry of Ecology 
and Environment was officially listed.  
2.4 Régimen de Invers ión, 2.4.1 Marco reglamentarios y acceso a los mercados, pg. 35, 
párrafo  2.32 
El Cat álogo de Sectores para la Orientaci ón de la Inve rsión Extranjera (Cat álogo de Inversiones) 
sigue siendo el principal instrumento de orientaci ón de la IED en China. Su última revisi ón tuvo lugar 
en 2017. El Cat álogo de 2017 contiene: 1) una lista de sectores en los que se alienta la IED; y 2) la 
lista negativa para la inversi ón, en la que se enumeran los sectores en los que se restringe o proh íbe 
la IED, entre otras medidas .(23) Los proyectos de la categor ía de sectores en los que se alienta la 
inversi ón pueden ser objeto de un trato preferencial, por ejemplo, la exenci ón de derechos de aduana 
para la importaci ón de equipo.  
Question  
4. ¿Para qué industrias ambientales se promueve la Inversión Extranjera Directa? Qué industrias 
considera China que afectan el medio ambiente y se encuentra n dentro de la lista negativa?  
Reply  
The Government of China encourages foreign direct investment in industries geared to energy -
saving and eco -friendly orientations. On 28 June 2018, National Development and Reform 
Commission and the Ministry of Commerce of the People's Republic of China jointly released Special 
Administrative Measures (Negative List) on Foreign Investment Access (2018 Edition) . Please check  
the list for inf ormation concerned.  
Pg. 41, párrafo  2.34 
En el recuadro 2.1 y en los cuadros A2.3 y A2.4 se ponen de relieve las principales diferencias entre 
el Cat álogo de 2017 y el de 2015. En el Cat álogo de 2017 se elimin ó el requisito de que los accionistas 
chinos  gozaran de una posici ón dominante en sectores como la contabilidad y la auditor ía, el 
recuento para el transporte mar ítimo extranjero, la fabricaci ón de bater ías para veh ículos 
                                                
2 2.2.1.  WT/TPR/M/3 75/Add.1  
 
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  propulsados por energ ías alternativas, la transformaci ón de aceites y grasas comestibles, y la 
producci ón de combustibles l íquidos de origen biol ógico. Algunas actividades que se hab ían 
clasificado en 2015 en la categor ía de sectores en los que se alienta la inversi ón, con determinados 
requisitos de composici ón del ac cionariado y la alta direcci ón, se han reclasificado en la lista negativa 
en el Cat álogo de 2017. Con el Cat álogo de 2017 se busca fomentar la IED en sectores tales como 
la industria manufacturera avanzada, la alta tecnolog ía, el ahorro energ ético y l a protecci ón del 
medio ambiente y los servicios modernos. Las autoridades se ñalan que las actividades restringidas 
o prohibidas para la inversi ón extranjera y nacional ya no aparecen en el Cat álogo de Inversiones 
de 2017; su eliminaci ón no significa q ue est én abiertas a la inversi ón extranjera  
Question  
5. El Cat álogo de Inversi ón fue modificado en 2017, ciertas actividades han sido clasificadas 
entre alentadas y restrictivas. Los servicios de transmisi ón de video ( on demand ) y servicios de 
instalaci ón de equipos receptores de se ñales fueron reclasificados como actividades restrictivas. 
México quisiera conocer los motivos de este cambio en la clasificaci ón. 
Reply  
According to GATS, members are entitled to carry out management and adopt new regulations 
regarding the provision of service in their respective territories in order to realize their national policy 
objectives and this is the legitimate right vested by WTO. Installation service of radio and television 
VOD and satellite television broadcasting gro und reception facilities belongs to radio and television 
related service and the GATS commitment of China does not include the radio and television related 
service. China  will determine the direction and measures for the opening of the future market 
accord ing to its domestic market development needs.  
2.4.2 Procedimientos de examen y aprobaci ón, pg. 44, párrafo  2.41 
Como se ha descrito anteriormente, el establecimiento o la modificaci ón de empresas con inversi ón 
extranjera que invierten en proyectos con inversi ón extranjera32 que no figuran en la lista negativa 
para la inversi ón están sujetos a un procedimiento de registro a trav és de un sistema integrado de 
informaci ón para la gesti ón de la inversi ón extranjera.33 Las empresas colectivas con inver sión 
extranjera deben registrarse en el Departamento de Industria y Comercio; no se requiere aprobaci ón 
previa. Los requisitos impuestos por la Administraci ón Estatal de Industria y Comercio (SAIC) en 
materia de registro son los mismos que rigen para la s empresas nacionales, pero pueden variar 
ligeramente en funci ón de la actividad. Las sociedades an ónimas se registran de conformidad con la 
Ley de Sociedades, y las sociedades colectivas de conformidad con la Ley de Sociedades Colectivas.34 
Las disposic iones sobre los requisitos relativos al capital en el marco de la Ley de Sociedades, 
modificada por última vez en 2013, no han experimentado grandes cambios desde el anterior 
examen de China.  
Pg. 45, párrafo  2.43 
Para que se pueda llevar a cabo el registr o, el solicitante debe establecer una empresa; solicitar una 
licencia comercial; registrarse ante las autoridades competentes en materia fiscal, aduanera o de 
control de divisas, entre otros ámbitos, y ante los organismos de reglamentaci ón pertinentes; y  
presentar los documentos exigidos a las autoridades locales.37 El registro lo gestionan las 
autoridades locales competentes. Si las autoridades locales consideran que un proyecto con 
inversi ón extranjera no es apto para el registro, la autoridad pertinen te deber á emitir un dictamen 
por escrito sobre las razones en que basa su decisi ón en un plazo de siete d ías hábiles.38 Según las 
autoridades, el registro de proyectos con inversi ón extranjera est á sujeto b ásicamente a los mismos 
requisitos que el de proyectos de inversores nacionales  
Question  
6. De acuerdo al 2.41 y 2.43 se hace referencia al requisito de un registro (record -filing) para el 
establecimiento de empresas con inversi ón extranjera que no est én abarcados en la lista negativa 
de inversiones.  Al respecto, se menciona en el 2.43 que el requisito de registro se cubre mediante 
el mismo establecimiento de la empresa.  México desea conocer detalladamente la raz ón para 
solicitar el establecimiento como requisito cuando este es el fin.  WT/TPR/M/3 75/Add.1  
 
- 194 - 
 
  Reply  
Since 1 October 2016, the negative list administration system on access to foreign investment has 
been carried out nationwide. For those foreign -invested enterprises (FIEs) not subject to the special 
administrative measures on access to foreign investment, their e stablishment and changes are now 
administered by a filing for record approach instead of the examination and approval system. The 
MOFCOM promulgated the Interim Measures for the Filing system of the Establishment and Changes 
of Foreign -Invested Enterprises , identifying the filing objects, filing procedures, supervisory 
administration and legal liabilities. The FIEs shall report the relevant information on investment and 
investors to the foreign investment competent department when filing for record.  
From 30 June 2018, business filing and industrial and commercial registration shall be handled 
through one window for the establishment of foreign enterprises and the enterprises can fill out a 
single form online and go through business filing and industrial an d commercial registration so as to 
increase the level of convenience.  
Pg. 45, párrafo  2.42 
Los procedimientos y requisitos para la aprobaci ón y el registro de proyectos con inversi ón extranjera 
están estipulados en un documento de 2014 de la NDRC.35 Además de los requisitos del Cat álogo 
de Inversiones, los proyectos sujetos a aprobaci ón son los que figuran en el Cat álogo de Proyectos 
de Inversi ón sujetos a Aprobaci ón Gubernamental.36 Para obtener la aprobaci ón, un proyecto de 
inversi ón debe some terse a examen y cumplir varias condiciones, incluidas las relacionadas con el 
impacto del proyecto en el medio ambiente y la utilizaci ón de los terrenos.  
Question  
7. ¿Cómo se analiza el impacto ambiental de los proyectos propuestos? ¿Qué caracter ísticas 
ambientales debe contener un proyecto propuesto para que sea aprobado?  
Reply  
Competent authorities will review the environmental impact of projects to be approved according to 
the Environmental Impact Assessment Law of the People 's Republic of China , and d omestic and 
foreign enterprises will be treated equally without discrimination when being applied this law.  
2.4.3 Incentivos a la inversi ón extranjera , párrafo 2.51  
La mayor parte de los bienes de capital importados para su uso en proyectos en los sectore s en que 
se alienta la inversi ón conforme al Cat álogo de Inversiones pueden quedar exentos de derechos de 
aduana. No se benefician de ese trato los productos que figuran en el Cat álogo de Productos 
Importados para Proyectos de Inversi ón Extranjera sin Exenci ón de Derechos o en el Cat álogo de 
Equipos y Productos T écnicos Fundamentales sin Derecho a Exenciones Fiscales ( última revisi ón en 
2017, en vigor desde el 1o de enero de 2018).49 Según las autoridades, los incentivos fiscales que 
ofrece el Gobierno est án encaminados a fomentar la modernizaci ón de la industria mediante la 
innovaci ón tecnol ógica, impulsar el desarrollo regional coordinado, mejorar la protecci ón del medio 
ambie nte, alentar la conservaci ón de la energ ía y la reducci ón de emisiones, apoyar el desarrollo de 
las pymes y lograr un desarrollo sostenible.  
Question  
8. ¿Qué tipo de incentivo fiscal ha demostrado mejorar la protecci ón del medio ambiente?  
Reply  
Please see China's  subsidy notifica tions for details.  WT/TPR/M/3 75/Add.1  
 
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  3 POL ÍTICAS Y PR ÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones , 3.1.3 Aranceles , 
3.1.3.1  Aranceles NMF aplicados , pg. 52, párrafo 3.13  
El Arancel de China comprende tipos  NMF, tipos arancelarios "de acuerdo", tipos arancelarios 
preferenciales especiales, tipos arancelarios generales y tipos aplicados dentro de contingentes 
arancelarios. Adem ás, se aplican tipos arancelarios provisionales, que suelen ser inferiores a los 
tipos NMF, durante un per íodo especificado (normalmente un a ño). 
Question  
9. Podría el gobierno de China indicar: Cu áles son los criterios que utilizan para aplicar estos 
derechos provisionales? A qu é tipo de productos los aplican? De qu é depende el per íodo de aplicaci ón? 
Reply  
The provisional customs tariff rate is the tax rate formulated by Customs Tariff Commission of the 
State Council in accordance with the state's foreign trade and economic policies and applicable for a 
certain period of time. The provisional tax rate is lower than the most favo ured nation tariff rate and 
is generally applicable from 1 January to 31 December of each year.  
3.1.3. 2 Contingentes arancelarios , pg. 54, párrafo 3.1 7 
Desde el examen anterior de China no se han producido cambios en la lista de productos sujetos a 
contingentes arancelarios, ni en los tipos aplicados dentro y fuera de los contingentes, ni en el 
sistema de asignaci ón. En 2017 se aplicaban contingentes arancelarios respecto de 47 l íneas 
arancelarias de los sig uientes cap ítulos del SA: 10 (trigo y morcajo (tranquill ón), maz y arroz), 
11 (harina de cereales, excepto de trigo o de morcajo (tranquill ón), y gra ñones de cereales), 
17 (azúcar de ca ña o de remolacha), 31 (abonos minerales o qu ímicos), 51 (lana cardada o peinada) 
y 52 (algod ón). Todos los tipos aplicados dentro de los contingentes son ad valorem . Los tipos 
aplicables fuera de los contingentes son, en la mayor ía de los casos, iguales a los tipos consolidados. 
La notificaci ón más reciente de utilizaci ón de contingentes arancelarios es de 2014.12 Las tasas de 
utilizaci ón de los contingentes arancelarios de China var ían considerablemente de un producto a otro 
(secci ón 4.1.3.1.1).  
Question  
10. ¿Puede citar la legislaci ón y el procedimiento completo para la asignaci ón de contingentes 
(cupos) de importaci ón para productos agr ícolas hacia China?  
Reply  
The relevant authority carries out management on import tariff quotas of important agricultural 
products according to the  Interim  Measures  for the Administration  of Import Tariff Quotas  of 
Agricultural Products, and annually issues rules for implementation of administration on import tariff 
quotas of relevant  products, specifying the specific process of application for quotas. See the  Terms 
and Allocation Principl es for Import Tariff Quotas for Grains in 2018 . (Website: 
http://www.ndrc.gov.cn/zcfb/zcfbgg/201710/W020171026582885468655.pdf .)  
3.1.4 Otras cargas que afectan a las importaciones , pg. 56, párrafo 3. 25 
Las importaciones, al igual que los productos fabricados en el pa ís, est án sujetas al impuesto sobre 
el valor a ñadido (IVA). La Administraci ón de Aduanas recauda el IVA sobre las importaciones en 
nombre de la Adminis tración Estatal de Impuestos y sobre la base del precio c.i.f. m ás el derecho 
de importaci ón. Si las mercanc ías est án sujetas adem ás al impuesto (especial) sobre el consumo, el 
IVA se calcula incluyendo el importe de dicho impuesto. El IVA que se apl ica a las mercanc ías tiene 
dos tipos: el 11% (frente al 13% antes de julio de 2017) y el 17%. El tipo m ás bajo se aplica a 
diversos productos de alimentaci ón, maquinaria agr ícola y libros. Desde el examen anterior no ha 
cambiado la lista de los product os exentos del IVA. Siguen estando exentos del IVA los productos 
agropecuarios de producci ón nacional vendidos directamente por los productores, pero no los WT/TPR/M/3 75/Add.1  
 
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  importados. Seg ún indican las autoridades, los principales beneficiarios de esta disposici ón son  los 
peque ños agricultores.  
Question  
11. Could China confirm whether the benefit granted by its products to domestic companies does 
not affect the principle of the most favored nation of the WTO, "Non -discrimination among trading 
partners, or if it is a way of subsidizing domestic production?  
Reply 
"Self-produced agricultural products sold by agricultural producers" refers to agricultural products 
that are produced by units and individuals within specific scope and such units and individuals are 
directly engaged in plant cultivation, harvesting a nd animal feeding and catching. For enterprises 
selling outsourced agricultural products, regardless of whether the purchased agricultural products 
are imported or domestically produced, such products are not subject to tax exemption and VAT 
shall be levie d at the prescribed rate. This regulation is consistent for domestic and foreign 
companies and does not involve the "non -discrimination principle".  
3.1.6 Medidas antidumping, compensatorias y de salvaguardia , 3.1.6.1 Medidas 
antidumping , pg. 61, párrafo 3. 40 
La iniciaci ón de las investigaciones antidumping se rige por las Normas Provisionales del Ministerio 
de Comercio Exterior y Cooperaci ón Econ ómica sobre la Iniciaci ón de una Investigaci ón Antidumping. 
Las investigaciones antidumping se pueden iniciar a petici ón de una parte interesada. Cuando las 
investigaciones se van a realizar en nombre de una rama de producci ón nacional, pueden presentar 
peticiones por escrito ante el MOFCOM personas  físicas o jur ídicas o cualquier organizaci ón 
competente que represe nte a dicha rama de producci ón. El MOFCOM debe decidir, dentro de los 
60 días siguientes a la fecha de recepci ón de la solicitud, si hay razones v álidas para iniciar una 
investigaci ón. El MOFCOM tambi én puede iniciar una investigaci ón antidumping por inici ativa propia 
si tiene pruebas suficientes de la existencia de dumping, del da ño causado y de la relaci ón causal 
entre ambos.  
Question  
12. ¿Podría China indicar si durante el periodo de 60 días referido en el párrafo citado, el MOFCOM 
puede realizar requerimien tos de información adicional al solicitante(s)? En caso afirmativo, el plazo 
de 60 días permanece o es posible prorrogarlo?  
Reply  
The Ministry of Commerce of P. R. China may require the applicant to provide additional information 
after submitting an anti-dumping application. After supplementary information is provided, the 
deadline for filing a review remains unchanged (60 days).  
Question  
13. ¿Podría China indicar aproximadamente  qué porcentaje de sus investigaciones antidumping 
se inicia por iniciativa p ropia?  
Reply  
According to the statistics method of the WTO, from 1997 to now, China has initiated 
269 anti-dumping investigations, of which the Ministry of Commerce initiated 1 independently. The 
proportion of independent anti -dumping investigations is 0. 37%.  
Pg. 61, párrafo 3.41  
El MOFCOM permite a las partes interesadas acceder a informaci ón. De conformidad con las Normas 
Provisionales sobre el Acceso a la Informaci ón No Confidencial, todas las partes interesadas pueden 
acceder a la informaci ón no confidencial que se presente, y se les permite hacer b úsquedas en los WT/TPR/M/3 75/Add.1  
 
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  documentos, leerlos, transcribirlos y copiarlos. De conformidad con las Normas Provisionales sobre 
la Divulgaci ón de Informaci íon en Investigaciones Antidumping, el MOFCOM notifica a las  partes 
pertinentes de una investigaci ón antidumping los datos y la informaci ón esenciales, las pruebas y 
las razones en que se basa la determinaci ón de la existencia de dumping y el c álculo del margen de 
dumping, en un plazo de 20 d ías desde la fecha en q ue se anuncia la determinaci ón preliminar.  
Question  
14. ¿Podría China aclarar qu é documentaci ón se adjunta a la notificaci ón a la que se refiere el 
párrafo citado?  
Reply  
In the preliminary disclosure, the investigation authority will disclose the data, information and 
relevant evidence based on which the dumping margin is calculated to the exporter or producer, the 
reasons for the investigation authority to accept and reject the relevant information or evidence, the 
dumping margin calculation process and  calculation results, etc.  
Question  
15. Es frecuente que las autoridades investigadoras enfrenten casos en los que las partes 
interesadas presenten información que pertenece a una publicación especializada y esa información 
no está disponible de manera gratuit a. Cuando eso sucede, y la publicación no otorga su 
consentimiento para que la información se pueda revelar ¿qué tratamiento se le da a esa información?  
Reply  
Regarding the issue of professional publications, the Chinese investigation authority will accep t the 
information and ask the interested parties who provide the information so as to provide a 
non-confidential summary of the information.  
Pg. 61, párrafo 3. 42 
El MOFCOM tiene que hacer una determinaci ón preliminar de la existencia de dumping, da ño y 
relaci ón causal entre ambos. Si la determinaci ón preliminar es afirmativa, se pueden aplicar medidas 
antidumping provisionales, por lo general, en forma de derechos antidumping provisionales, o se 
puede solicitar la constituci ón de un dep ósito, una fianza u otro tipo de garant ía. La decisi ón de 
aplicar derechos antidumping provisionales corresponde a la Comisi ón Arancelaria del Consejo de 
Estado (SCTC), por recomendaci ón del MOFCOM, pero si se trata de medidas de otro tipo 
(constituci ón de un dep ósito, una fianza u otro tipo de garant ía), la decisi ón la toma directamente 
el MOFCOM. Las medidas provisionales no se pueden adoptar antes de que transcurran 60 d ías desde 
la fecha de publicaci ón de la decisi ón de inicio de la investigaci ón, y no pueden prolongarse  más de 
cuatro meses, aunque en "circunstancias especiales" se pueden prorrogar hasta los nueve meses. 
Según informaci ón proporcionada por las autoridades, las "circunstancias especiales" se refieren a 
casos en los que las autoridades investigadoras examin an si un derecho inferior al margen de 
dumping bastara para eliminar el da ño a la rama de producci ón nacional.  
Question  
16. ¿Podría China indicar los criterios que utiliza el MOFCOM y en su caso la SCTC para determinar 
qué tipo de medidas provisionales se aplicar án (derechos antidumping provisionales, dep ósitos, 
bonos u otro tipo de garant ía)?  
Reply  
At present, China's anti -dumping interim measures are implemented in the form of provisional 
deposits.  WT/TPR/M/3 75/Add.1  
 
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  Question  
According to the authorities, "special circumstances" refer to cases where the investigating 
authorities are examining whether a duty lower than the margin of dumping would be sufficient to 
remove the injury to the domestic industry. (30) Direct errata: the last sentenc e of paragraph 3.42 
of the report of the Secretariat (According to the authorities, "special circumstances" refer to cases 
where the investigating authorities are examining whether a duty lower than the margin of dumping 
would be sufficient to remove the i njury to the domestic industry.) There is an error here. The 
content is not a quote from relevant laws and regulations. In recent years, there has been no such 
situation in our practice (referring to the situation of "implementing interim measures for more  than 
four months").  
Question  
17. ¿Podría China explicar en qu é consiste la metodolog ía que utiliza para determinar si un 
derecho inferior al margen bastar ía para eliminar el da ño a la rama de producci ón nacional?  
Reply  
The report of the Secretariat is incorrect. China has no provisions and practices for Less -Duty 
Principle. During the period under review, there is no such situation where China has implemented 
interim measures for more than four months.  
Question  
18. Según el párrafo 3.42, las medidas provisionales pueden estar vigentes hasta 9 meses cuando 
hay "circunstancias especiales", y esas "circunstancias especiales " se refieren a casos en los que las 
autoridades investigadoras examinan si un derecho inferior al margen d e dumping bastar ía para 
eliminar el da ño a la rama de producci ón nacional. No obstante, observamos que en el p árrafo 3.47 
se menciona que China no cuenta con disposiciones sobre la aplicaci ón de ese derecho inferior. 
¿Podria explicar entonces c ómo funciona el mecanismo de las "circunstancias especiales "? Es decir, 
si se permite prorrogar la duraci ón de los derechos provisionales cuando se examina la posibilidad 
de aplicar un derecho inferior al margen, pero no hay reglas aplicables para hacer ese  examen, c ómo 
se eval uan las circunstancias especiales?  
Reply  
The report of the Secretariat is incorrect. China has no provisions and practices for Less -Duty 
Principle. During the period under review, there is no such situation where China has implemented 
interim measures for more than four months.  
Pg. 61, párrafo 3. 42 
De conformidad con las Normas Provisionales sobre la Utilizaci ón de Muestras (Normas sobre la 
utilizaci ón de Muestras), el MOFCOM debe determinar por separado el margen de dumping 
correspondiente a cada exportador o productor individual declarante. Sin embargo, el MOFCOM 
puede utilizar muestras. El MOFCOM est á facultado para seleccionar a los exportadores y productores 
que se incluir án en la muestra y determina por separado el margen de dumping que corresponde a 
cada exportador y productor individual sel eccionado. El margen de dumping correspondiente a los 
exportadores y productores declarantes que no sean objeto de un examen por separado se 
determina sobre la base del promedio ponderado del margen de dumping establecido para los 
exportadores y productore s incluidos en la muestra, que se calcula excluyendo los m árgenes de 
dumping nulos o de minimis  (inferiores al 2%). Las autoridades investigadoras generalmente toman 
muestras de forma aleatoria, atendiendo a los vol úmenes de exportaci ón. Las normas sobre l as 
muestras tambi én autorizan al MOFCOM a recurrir a la toma de muestras de productos si hay 
demasiados tipos de productos objeto de investigaci ón. Los procedimientos y formas de determinar 
la existencia de dumping son similares a los empleados para selecc ionar la muestra de exportadores 
y productores.  WT/TPR/M/3 75/Add.1  
 
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  Question  
19. De acuerdo con ese párrafo, si en la misma investigación comparece un determinado número 
de exportadores y un determinado número de productores, ¿la autoridad china tiene la obligación 
de calcular un  margen de dumping individual a todos esos exportadores y, además, a todos esos 
productores?  
Reply  
According to the  Interim Rules on Sampling of Anti -Dumping Investigations , the Ministry of 
Commerce shall, in principle, determine the dumping margin for each of the investigated exporters 
or producers. However, if there are too many exporters and producers, which creates a huge 
workload and hinder the timely completion of the investigation, the Ministry of Commerce may 
conduct the investigation by sampling  and will not calculate the dumping margin for each exporter 
and each producer separately.  
Pg. 62, párrafo 3. 47 
Los derechos antidumping no pueden exceder del margen de dumping establecido en la 
determinaci on. China no cuenta con disposiciones sobre la nor ma del derecho inferior. Aunque el 
Reglamento Antidumping de China no impide la imposici ón de un derecho inferior al margen de 
dumping, la autoridad investigadora no examina si un derecho inferior al margen de dumping 
bastar ía para eliminar el da ño. 
Questi on 
20. Según el párrafo 3.42, las medidas provisionales pueden estar vigentes hasta 9  meses cuando 
hay "circunstancias especiales", y esas "circunstancias especiales " se refieren a casos en los que las 
autoridades investigadoras examinan si un derecho inferior  al margen de dumping bastaría para 
eliminar el daño a la rama de producción nacional. No obstante, observamos que en el párrafo 3.47 
se menciona que China no cuenta con disposiciones sobre la aplicación de ese derecho inferior. Al 
respecto, ¿podría China aclarar si realiza o no dicho examen y, en caso afirmativo, en qué casos y 
qué criterios se aplican?  
Reply  
The report of the Secretariat is incorrect. China has no provisions and practices for Less -Duty 
Principle. During the period under revi ew, there is no such situation where China has implemented 
interim measures for more than four months.  
Question  
21. ¿Podría China aclarar si ha habido casos en los que alguna de las partes interesadas solicite a 
la autoridad examinar si un derecho inferior al margen de dumping bastar ía para eliminar el da ño? 
En caso afirmativo, y tomando en cuenta que el Reglamento Antidumping no impide la imposici ón 
de un derecho inferior al margen de dumping, ¿Cuál es el fundamento legal de la autoridad para 
rechazar realizar  dicho examen?  
Reply  
The report of the Secretariat is incorrect. China has no provisions and practices for Less -Duty 
Principle. During the period under review, there is no such situation where China has implemented 
interim measures for more than four month s. 
Pg. 62, párrafo 3. 48 
La determinaci ón definitiva puede ser objeto de recurso por las partes interesadas, que, si no quedan 
satisfechas, pueden solicitar un reexamen administrativo por el Departamento de Tratados y 
Legislaci ón o llevar el caso directamente a los tribunales. La decisi ón resultante de un reexamen 
administrativo tambi én puede ser sometida a los tribunales. Las autoridades indicaron que, desde 
2015, hab ía habido un recurso de revisi ón administrativa y un caso ante los tribunales. El  producto WT/TPR/M/3 75/Add.1  
 
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  en cuesti ón era el acero magn ético laminado plano de grano orientado importado del Jap ón, Corea 
del Sur y la Uni ón Europea. En enero de 2017 el MOFCOM puso en marcha una revisi ón 
administrativa y mantuvo la decisi ón original. En febrero de 2017, el solicitante present ó una 
demanda contra la determinaci ón y la decisi ón de la revisi ón administrativa. En enero de 2018 el 
caso a ún se encontraba pendiente ante los tribunales.  
Question  
22. ¿Podría China indicar si a la fecha ha habido avances en el estatus del caso referido en el 
párrafo anterior y, en caso afirmativo, indicar de manera general en qu consisten esos avances?   
Reply  
For now , the plaintiff in the case has revoked the administrative lawsuit . 
3.1.6.2 Medidas compensatorias , pg. 66, párrafo 3. 58 
Las investigaciones en materia de derechos compensatorios est án sujetas a un procedimiento similar 
al de las investigaciones antidumping. La principal diferencia es que el Gobierno del pa ís o territorio 
exportador interviene en la investigaci ón, ya sea a participando en consultas con el MOFCOM antes 
de su inicio o respondiendo a cuestionarios. Si se llega a una soluci ón mutuamente aceptable, el 
MOFCOM puede decidir no iniciar una investigaci ón. Otras diferencias son la ausencia de normas 
publicadas sobre l a utilizaci ón de muestras y compromisos relativos a los precios y la ausencia de 
normas sobre reex ámenes intermedios o revisiones judiciales.  
Question  
23. Tomando en cuenta la ausencia de normas publicadas sobre la utilizaci ón de muestras y 
compromisos relativ os a los precios y la ausencia de normas sobre reex ámenes intermedios o 
revisiones judiciales, referida en el p árrafo anterior, ¿podría China indicar cuales disposiciones y/o 
directrices aplica o aplicar ía en los casos de utilizaci ón de muestras y compromi sos relativos o a los 
precios y en caso de los reex ámenes intermedios o revisiones judiciales?  
Reply  
Regarding the judicial review, the current legal provisions on anti -dumping and countervailing 
judicial review in China are consistent. Regarding the sampl ing method, price commitment and 
period review, there are provisions in the Countervailing Regulations , but there are no specific rules 
for countervailing investigations. The current applicable methods are similar to the rules applicable 
to anti -dumping investigations.  
3.2.1 Procedimientos y requisitos aduaneros , pg. 68, párrafo 3. 70 
Los exportadores deben cumplir los requisitos establecidos en el Cat álogo de Mercanc ías de 
Importaci ón y Exportaci ón sujetas a Inspecci ón Obligatoria, que se modifica ca da año. Las 
exportaciones de determinados art ículos -como los productos qu ímicos peligrosos, los art ículos para 
fuegos artificiales, los encendedores, los juguetes y los cochecitos para ni ños, los productos 
alimenticios, y las tierras raras - están sujetas a inspecci ón. Esos productos deben ser inspeccionados 
en su lugar de producci ón. El embalaje de los productos qu ímicos peligrosos y otros productos 
peligrosos de exportaci ón tambi én debe someterse a pruebas e inspecci ón. 
Question  
24. With regard to  the requirements stipulated in the Catalogue of Import and Export, which are 
the objectives and criteria used to determine the compliance of the regulations? Considering that 
compulsory inspections must be made at the place of production, are the requirem ents stipulated in 
the Catalogue of Import and Export Commodities associated with the extraction or manufacture of 
the goods under certain conditions?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The toy and baby cart mentioned in the question have been removed from the  Entry and Exit 
Commodity Catalogue for Inspection and Quarantine by Entry and Exit Inspection and Quarantine 
Institutions (hereinafter referred to as "the Catalogue") in September 2016. Other commodities such 
as import and export commodities of hazardous chemicals, fireworks, lighters, food and rare earth 
listed in the Catalogue shall be subject to entry and exit inspection according to Law of the People 's 
Republic of China on Import and Export Commodity Inspection and the following principles of 
protectio n of human health and safety, protection of life and health of animals or plants, protection 
of the environment, prevention of fraudulent conduct and maintenance of national security. Among 
them, any import commodity is not allowed to be sold or used witho ut inspection. Any export 
commodity is not allowed to be exported if it is conforming after inspection.  Import and export 
commodities  listed in the Catalogue shall be inspected in accordance with the mandatory 
requirements specified in the technical specif ications of China.   
3.2.3 Prohibici ones, restricciones y licencias de exportaci ón, pg. 70, párrafo 3. 76 
El Estado puede restringir o prohibir las exportaciones para mantener la seguridad nacional y la 
moralidad p ública; proteger la salud de las personas y  de los animales o preservar los vegetales; 
proteger el medio ambiente; proteger recursos naturales agotables que escasean o que requieren 
una "protecci ón eficaz"; organizar la "gesti ón de las actividades de exportaci ón"; cumplir los 
compromisos interna cionales de China; o en cualquier otra circunstancia establecida en una ley o en 
un reglamento administrativo.  
Question  
25. ¿Qué bienes ha prohibido China exportar para proteger el medio ambiente?  
Reply  
The relevant Chinese authorities have issued a series of  catalog ues of prohibited exports, including 
rare animal and plant products, ozone depleting substances and some toxic chemicals. Specific 
products include tiger bones, rhinoceros horns, bezoar, musk, ephedra, nostoc flagelliforme, carbon 
tetrachloride, 1, 1,1-trichloroethane, trichlorotrifluoroethane, logs, platinum, charcoal, and blue 
asbestos 1,2 -dibromoethane, dibromochloropropane, aldrin, polychlorinated biphenyls, 
polybrominated biphenyl, dinoseb, dieldrin, sodium fluoroacetate, 2,4,5 -T, triphosphate, benzidine, 
fluoroacetamide, chlordimeform, dioxins, furan, natural sand, forest litter and peat.  
3.2.4 Apoyo y promoci ón de las exportaciones , pg. 71, párrafo 3. 82 
Las autoridades indicaron que China no concedi ó ni mantuvo ninguna subvenci ón a la exportaci ón 
de productos agropecuarios durante los a ños 2013 y 2014. No se ha facilitado informaci ón a la OMC 
sobre los a ños 2015 y 2016.  
Question  
26. ¿Podría China indicar si ya est á en posibilidad de proporcionar informaci ón sobre la 
subvenciones a la exportaci ón de productos agropecuarios durante 2015 y 2016 y, en su caso, 
proporcionar dicha informaci ón de manera general?  
Reply  
When China joined the WTO, we made a commitment not to use export subsidies for agricultural 
products and has always abide by this commitment . Information for 2015 -2016 will be available as 
soon as possible.  
Pg. 71, párrafo 3.83  
Los exportadores tienen derecho a desgravaciones del IVA. Las tasas de desgravaci ón var ían en 
función de los productos, si bien suelen ser inferiores al IVA pagado. Act ualmente esas tasas son del 
17%, 15%, 13%, 11%, 9%, 5% y 0%. Las dos tasas de desgravaci ón más frecuentes son la del WT/TPR/M/3 75/Add.1  
 
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  17%, que se aplica aproximadamente al 29% de todas las l íneas arancelarias, y la del 0%, que se 
aplica al 22% de las l íneas. Ciertas mercan cías no pueden beneficiarse de desgravaci ón. Si se 
considera el valor de las exportaciones, m ás del 70% de las mercancas exportadas se benefician de 
tasas de desgravaci ón del 17% y del 15%. En general, las frutas y los frutos de c áscara est án sujetos 
a la tasa de desgravaci ón del 5%, mientras que las especies amenazadas de animales y plantas no 
se benefician de desgravaci ón. Seg ún las autoridades, la distribuci ón de las tasas de desgravaci ón 
del IVA se utiliza para contribuir a la protecci ón del medio ambiente, el ahorro de energ ía y la 
reducci ón de emisiones. As í pues, las desgravaciones se utilizan para desincentivar la producci ón y 
la exportaci ón de productos contaminantes. Las modificaciones realizadas en el sistema de 
desgravaciones desde el último examen de las pol íticas comerciales comprenden la reintroducci ón 
de la desgravaci ón del 13% del IVA para las exportaciones de productos a base de ma íz (incluidos 
el almid ón y el etanol), que anteriormente era del 11%, y el aumento del 11% al 13% del IVA p ara 
las exportaciones de productos electr ónicos y mec ánicos y de petr óleo elaborado.  
Question  
27. ¿Podría China indicar si las tasas de desgravaci ón del IVA est án sujetas a un periodo de 
vigencia o las mismas se otorgan de manera indefinida?  
Reply  
At present, China has not set a period of validity for the export product tax rebate rate  
Question  
28. ¿Qué productos ha considerado China como contaminantes del medio ambiente?  
Reply  
Please refer to the Comprehensive Directory of Environmental Protection  for details.  
3.3 Medidas que afectan a la producci ón y al comercio , 3.3.1 Incentivos , pg. 76, 
párrafo  3.104 
En julio de 2016 China notific los programas de ayuda que haba mantenido a nivel subcentral durante 
el perodo comprendido entre 2001 y 2014. La notificacin contiene 100 programas distintos 
correspondientes a 19 administraciones provinciales. Estos programas concedan incentivos a: 
industrias especficas; productos y empresas de "marcas famosas"; pymes; empresas de comercio 
exterior; empresas con par ticipacin extranjera; regiones menos desarrolladas; y zonas rurales 
(cuadro A3.3). Esta notificacin no incluye los programas de ayuda mantenidos por 13 provincias. 
Las autoridades sealaron que estos programas iban a figurar en una futura notificacin que ab arcara 
los aos 2015 y 2016.  
Question  
29. ¿Puede China especificar el plazo de tiempo en el que las notificaciones de subvenciones a los 
niveles centrales, provinciales y municipales estarán disponibles de manera continua y opotuna?  
Reply  
China will submit the  2015-2016 central and local subsidy  notifications  before the review. The 
previously submitted subsidy bulletins can be found on the WTO website.  
3.3.2 Normas y otras prescripciones t écnicas , 3.3.2.1 Panorama general , pg. 80, 
párrafo  3.114 
En China hay cinco tipos de normas: nacionales, de ramas de producci ón/sectoriales, locales, 
empresariales y de asociaciones. Las normas de los tres primeros tipos pueden ser voluntarias u 
obligatorias (reglamentos t écnicos). Las normas nacionales se elaboran para su  adopci ón a nivel 
nacional; mientras que las normas de ramas de producci ón/sectoriales, que tambi én son aplicables 
a nivel nacional, se elaboran cuando no existe una norma nacional pero es necesario cumplir WT/TPR/M/3 75/Add.1  
 
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  condiciones espec íficas en determinado ámbito profesional a nivel nacional. Las normas tambi én se 
pueden elaborar a nivel local (normas locales) cuando no existen normas nacionales o de ramas de 
producci ón/sectoriales. No obstante, si se elaboran normas nacionales equivalentes, estas 
sustituyen a las normas locales y a las normas de ramas de producci ón/sectoriales, salvo cuando las 
normas locales son m ás estrictas que las nacionales. Se pueden elaborar normas empresariales para 
una empresa cuando no existen normas nacionales, de ramas de producci ón/sectoriales o locales. 
Una enmienda de 2017 a la Ley de Normalizaci ón introdujo la nueva categor ía correspondiente a las 
normas de asociaciones. Estas normas pueden ser adoptadas, por ejemplo, por c ámaras de comercio 
o asociaciones tecnol ógicas.  
Question  
30. ¿Podrían proporcionar mayor informaci ón y caracter ísticas referentes a las normas de tipo 
asociativo utilizadas por las c ámaras de la industria y asociaciones tecnol ógicas?  
Reply  
For nature of organization standard: the  Standardization Law of the People's Republic of China 
stipulates that the State encourages society, association, chamber of commerce, federation, 
industrial technology alliance and other social organizations to coordinate with the relevant market 
entities  to jointly formulate organization standards (that meet the needs of market and innovation) 
for voluntary adoption by the social people, as specified by the organization members or as stipulated 
by such organization. The organization standard is made by so ciety, association, chamber of 
commerce, federation, industrial technology alliance and other social organizations. Social 
organizations shall be established in accordance with the Regulation on Registration and 
Administration of Social Organizations of th e People's Republic of China . 
Pg. 81, párrafo  3.117 
La AQSIQ se ocupa en el ámbito nacional de cuestiones de calidad, metrolog ía, inspecci ón de entrada 
y salida, cuarentena de fauna y flora, certificaci ón, acreditaci ón, normalizaci ón y medidas 
admini strativas de observancia de la ley. Adem ás, vela por que tanto las importaciones como las 
exportaciones cumplan los reglamentos t écnicos y las prescripciones de certificaci ón.76 La AQSIQ 
tiene a su cargo la Administraci ón Nacional de Certificaci ón y Acreditaci ón de China (CNCA), al igual 
que el servicio de informaci ón OTC de China. Es tambi én el organismo responsable de presentar las 
notificaciones OTC.  
Question  
31. Con respecto  a la reestructuraci ón administrativa que actualmente se lleva a cabo en el 
gobierno Chino, ¿qué organismo tendr á las facultades y atribuciones en materia de obst áculos 
técnicos al comercio, que correspondan a la AQSIQ?  
Reply  
The duty of the State Administration for Industry and Commerce, the duty of the General 
Administration of Quality Supervision, Inspection and Quarantine, the duty of the State 
Administration of Food and Drug Administration, the duty of price supervision an d inspection and 
anti-monopoly law enforcement of the National Development and Reform Commission, the duty of 
operators centralized anti -monopoly law enforcement of the Ministry of Commerce, the duty of the 
office of the State Council Anti -Monopoly Commiss ion will be integrated to set up the State 
Administration for Market Regulation as a department affiliated to the State Council according to 
reform programme  of the State Council in 2018.  
The duties of the National Standardization Management Committee are assigned to the State 
Administration for Market Regulation, but its previous name is still kept. The National 
Standardization Management Committee carries out unified administration on standardization work.  WT/TPR/M/3 75/Add.1  
 
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  Pg. 81, párrafo  3.120 
Las normas de ramas de producci ón/sectoriales son formuladas por los comit és técnicos pertinentes. 
Los órganos de normalizaci ón de los Ministerios competentes, con el apoyo de los institutos de 
normalizaci ón y los comit és técnicos del sector, se en cargan de establecer los planes de elaboraci ón 
de normas de ramas de producci ón/sectoriales y de aprobar las normas correspondientes. La mayor 
parte de las normas nacionales de ramas de producci ón/sectoriales son archivadas y guardadas en 
el Archivo Nac ional de Normas. Los organismos de normalizaci ón de las provincias, regiones 
autónomas y t érminos municipales, bajo la responsabilidad directa del Gobierno central, formulan 
las normas locales, de conformidad con las Medidas Administrativas relativas a las Normas Locales. 
Las normas de ramas de producci ón/sectoriales y locales tambi én deben examinarse dentro de los 
cinco a ños siguientes a su puesta en aplicaci ón. En cuanto a las normas empresariales, las empresas 
determinan el procedimiento para su f ormulaci ón.  
Question  
32. Which are the main characteristics of the interaction between the Standardization 
Administration of China and private entities developing enterprise standards? (Guidance, support, 
assistance of any type).  
Reply  
the State encourages e nterprises to carry out or participate in standardization activities. The State 
encourages enterprises to formulate enterprises standards higher than the relevant technical 
requirements of recommended standards. The State executes disclosure and supervisio n system of 
self-declaration of enterprise standards. The State encourages enterprises standards to be disclosed 
to the public through the public service platform of standard information. If the enterprise fails to 
disclose its executed standard or fails t o have such standard numbered in accordance with the 
Standardization Law , then the competent administrative authority for Standardization will order the 
enterprise to take correction measures within the specified time limit. Otherwise, the enterprise will 
be disclosed on the public service platform of standard information.  
Pg. 81, párrafo  3.121 
Las normas chinas se dividen en "normas obligatorias" (reglamentos t écnicos) y normas voluntarias. 
Los reglamentos t écnicos se refieren principalmente a la protecci ón de la salud y los bienes de las 
personas y su seguridad, y generalmente son aplicables a los medicamentos, la inocuidad de los 
alimentos, los medicamentos veterinarios y los plaguicidas; la seguridad en el trabajo y en el 
transporte; la constru cción; las emisiones en el medio ambiente; y la terminolog ía técnica. Cuando 
se elabora un reglamento t écnico, debe establecerse que este constituir á una norma obligatoria. A 
tal fin, en el caso de las normas nacionales, en la etapa de iniciaci ón del proyecto, el organismo de 
normalizaci ón recurre a expertos para que dictaminen sobre la necesidad y viabilidad del car ácter 
obligatorio de la norma propuesta y se determina de qu é tipo de norma se tratar á. Luego, el 
procedimiento de elaboraci ón y pub licación de una norma difiere un poco del de un reglamento 
técnico: en la etapa del examen t écnico, las normas obligatorias deben someterse a un examen 
público mediante la celebraci ón de reuniones, y el plazo para la presentaci ón de observaciones no 
puede durar menos de dos meses. Asimismo, seg ún las autoridades, antes de su aprobaci ón, las 
normas obligatorias que afectan al comercio y no derivan de la adopci ón (sin modificaciones) de una 
norma internacional, deben notificarse a la OMC. En principi o, las normas voluntarias no pueden 
convertirse en obligatorias, ya que el car ácter de la norma se habr á determinado al inicio del proceso 
de elaboraci ón. No obstante, en un reglamento t écnico se puede hacer referencia a una norma 
(voluntaria), lo que da a esta car ácter obligatorio. Los organismos gubernamentales, como la NDRC 
y el MIIT, tienen la facultad de aprobar y promulgar reglamentos t écnicos que pueden hacer 
referencia a normas voluntarias, confiriendo as í a estas car ácter obligatorio.  
Quest ion 
33. Is there a periodic thematic prioritization of fields/industries in which further regulation will be 
executed? If so, how is it structured and who are the main stakeholders in such process?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to Clause 4 of the new Standardization Law, pr iority for project setup shall be given to 
the standard projects urgently needed for safeguarding of personal health and property safety, 
national security, ecological environment safety and economic and social development, and such 
standard projects shall  be completed in time. Relevant enterprises, social organizations, educational 
and scientific research institutions are stakeholders in this process.  
Question  
34. Is consensus prompted throughout standardization processes? Whether national, sectoral, 
local, enterprise or association.  
Reply  
All the entire standardization processes of the State standard, industrial standard, local standard or 
organization standard sh all reach consensus within the corresponding scope. Any enterprise may 
formulate the enterprises standard according to its demands, or jointly formulate the enterprises 
standard with other enterprises.  
Question  
35. How was the duration for the public review period determined? Is it variable? If so, on what 
does it depend?  
Reply  
According to the regulations of the State Standard Administration  Method , the State standards shall 
be consulted widely in the process of pr eparation, and the time limit for consultation is two months.  
Pg. 82, párrafo  3.122  
A finales de 2017, hab ía un total de 35.081 normas nacionales (2.118 obligatorias y 
32.597  voluntarias). Seg ún las autoridades, al t érmino del citado a ño, el 74,3% de las normas 
obligatorias y el 85,9% de las voluntarias eran adopciones o adaptaciones de normas 
internacionales, frente al 74,3% y el 75,2%, respectivamente, a finales de 2014. El 2,2% de las 
normas nacionales aprobadas en 2017 eran obligatorias, mientras q ue en 2015 lo eran el 5,9% 
(cuadro 3.15).79 Las autoridades tambi én señalan que, desde enero de 2016, se han eliminado 
1.301  normas que se consideraron innecesarias (entre ellas, 414 normas obligatorias), y que 
1.077  normas obligatorias han pasado a ser voluntarias.  
Question  
36. How do national standards interact with international regulatory frameworks and 
standardization schemes?  
Reply  
the new Standardization Law  requires applying international standard according to national 
conditions. China is actively participating in international standardization activities, carrying out 
foreign cooperation and exchange of standardization, promoting the use of international standards, 
and constantly improving the consistency between Chinese standards and international standards.  
Question  
37. Do the Standardization Law or the Regulations for the Implementation of the Standardization 
Law contemplate harmonization between national and international standards?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Clause 8 of Standardization Law  stipulates "the State actively promotes participation in 
international standardization activities, carries out foreign cooperation and exchange of 
standardization, participates in formulating international standards, adopts international standards 
in comb ination with national conditions, and promotes the transformation and application of Chinese 
standards and foreign standards", and has taken the coordination between national standards and 
international standards into consideration.  
Question  
38. Is there a str ategy to further increase percentages with regards to harmonization among 
national and international standards?  
Reply  
The National Standardization Committee actively promotes the coordination of national standards 
and international standards, and gives project -setup priorities to those projects that are proposed 
according to national standards and international standards.  
3.3.2.2  Certificaci ón de productos , pg. 83, párrafo  3.128 
El sistema de certificaci ón obligatoria de productos de China, que se aplica tanto a los productos 
nacionales como a las importaciones, se estableci ó en 2001 para asegurar la conformidad de los 
productos con las prescripciones t écnicas. Los productos sujetos a certificaci ón obligatoria figuran 
en el Cat álogo para la Cert ificaci ón Obligatoria de Productos (Cat álogo CCC); estos no se pueden 
vender o importar en China sin la Certificaci ón Obligatoria de China (CCC) y la correspondiente 
marca CCC.83 El sistema de CCC se basa principalmente en las normas nacionales obligato rias. Los 
productos enumerados en el Cat álogo solo pueden salir de la f ábrica o ser vendidos, importados o 
utilizados en otras actividades comerciales una vez certificados y etiquetados  
Question  
39. Las normas nacionales que son partes del CCC , ¿están refere nciadas en normas 
internacionales?  
Reply  
CCC certification is the market access system established by the Chinese government in accordance 
with the WTO rules. It follows the WTO rules. Most of them are equal or equivalent to the adoption 
of international standards.  
Pg. 83, párrafo  3.129 
El Cat álogo CCC lo aprueban y publican conjuntamente la AQSIQ y la CNCA, adem ás de los 
departamentos administrativos industriales pertinentes si se necesita la aprobaci ón del organismo 
regulador del sector. La CNCA se en carga de la administraci ón general y la aplicaci ón del sistema de 
certificaci ón obligatoria de productos. Esto incluye la actualizaci ón del Cat álogo CCC; la redacci ón y 
la promulgaci ón del reglamento de aplicaci ón de la certificaci ón obligatoria d e los productos que 
figuran en el Cat álogo CCC; el dise ño y la aprobaci ón de las marcas de certificaci ón; el 
establecimiento de las prescripciones para la CCC; la designaci ón de los organismos de certificaci ón, 
los laboratorios de ensayo y los organi smos de inspecci ón; la evaluaci ón de la conformidad para 
la CCC; la designaci ón del organismo que expide las marcas CCC; y la tramitaci ón de las 
reclamaciones y los recursos relacionados con la certificaci ón obligatoria de productos. La CNCA 
tambi én puede autorizar a las Oficinas de Calidad y Supervisi ón Técnica y las Oficinas de Inspecci ón 
y Cuarentena de Entrada y Salida a nivel local a actuar como organismos locales de supervisi ón de 
la certificaci ón para los productos enumerados en el Cat álogo CCC en las zonas bajo su jurisdicci ón. 
Las importaciones que ya han obtenido la marca CCC son objeto de un muestreo aleatorio para 
verificar la conformidad.  WT/TPR/M/3 75/Add.1  
 
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  Question  
40. Considerando la reestructuraci ón administrativa del gobierno Chino y las modificacione s que 
podrán afectar a la AQSIQ y la CNCA , qué organismo tendr á las atribuciones referentes a la 
publicacin y aprobacin del Catlogo CCC?   
Reply  
In this organization reform, the CNCA duty is assigned to the State Administration for Market 
Regulation. The approval and release of the CCC catalogue can only be undertaken by the newly 
established State Administration for Market Regulation.  
Question  
41. El CNCA reconoce la aceptación de resultados de evaluación de la conformidad para obtener 
la certificaci ón del CC C proveniente de organismos ubicados fuera del territorio chino? Qu é 
organismo/laboratorios de pruebas/organismos de inspecci ón, son reconocidos por el gobierno chino 
para obtener dicha certificación?   
Reply  
China has consistently advocated mutual recognition of certification / inspection results on the basis 
of equality, so a s to avoid repeated certification / inspection; in addition, informs WTO of any change 
of CCC system promptly, and actively carries out multi -lateral international cooperation and mutual 
recognition to eliminate technical trade barriers.  
1.  In the field of multi -lateral mutual recognition, China has joined and tracked 
37 international/regional accreditation organizations and has signed 15 multi -lateral mutual 
recognition agreements to enhance mutual trust and friendly cooperation. For example, mutual 
recognition is realized among 54 members in the mutual recognition system of IEC electrical 
products qualification assessment system (IECEE -CB). China 's accredited member cert ificates have 
been ranked first over the years since China has joined this mutual recognition agreement.  
2. In the field of bilateral mutual recognition, China has signed 119 cooperation and mutual 
recognition agreements relating to CCC certification with more than 30 countries/regions, most of 
which involve cooperation in CCC field, such as entrusting the factory to inspect.  
3.3.3 Prescripciones sanitarias y fitosanitarias , pg. 85, párrafo  3.136 
El principal texto legislativo por el que se rigen las prescr ipciones sanitarias y fitosanitarias de China 
no ha sido modificado desde el anterior examen. La última revisi ón de la Ley de Inocuidad de los 
Alimentos entr ó en vigor el 1o de octubre de 2015, y en ella se destacaban las siguientes cuestiones: 
1) la ge stión de los riesgos relativos a la inocuidad alimentaria; 2) la gesti ón de la inocuidad de los 
alimentos en el origen; 3) la responsabilidad principal que tienen los productores y operadores 
alimentarios de garantizar la inocuidad de los alimentos; 4) l a responsabilidad que tienen los 
gobiernos locales de garantizar la inocuidad alimentaria; 5) la supervisi ón y gesti ón de la inocuidad 
alimentaria; 6) la gobernanza social de la inocuidad alimentaria; y 7) la sanci ón de las infracciones 
graves de la Ley  de Inocuidad de los Alimentos.  
Question  
42. How does the Chinese legislation governing the country 's sanitary and phytosanitary 
requirements incorporate the principles contained in the World Trade Organizations Agreement on 
the application of SPS measures? Namely, harmonization, equivalence, adaptation to regional 
conditions, transparency.  
Reply  
China has kept complying with principles concerned in the SPS Agreement in its sanitary and 
phytosanitary legislation, made positive effort to fulfill its transparen cy obligation and notified 
the WTO.  WT/TPR/M/3 75/Add.1  
 
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  Question  
43. "La principal legislaci ón que rige los requisitos sanitarios y fitosanitarios (SPS) de China se 
mantuvo sin cambios desde su revisi ón anterior. La última revisi ón de la Ley de seguridad alimentaria 
entró en vigo r el 1 de octubre de 2015. " ¿Por qu é no se consider ó ningún cambio a la legislaci ón 
que rige los requisitos sanitarios y fitosanitarios del 1 de octubre de 2015 a la fecha?  
Reply  
The newly revised Food Safety Law of the People's Republic of China  was implemented on 
1 October  2015. During the revision of the law, we have reported the revised draft to WTO as 
unrequired; after the implementation of the law, all the relevant parties strictly enforce all systems 
of the law. Mexico party said there is n o change in the main laws in China 's hygiene and plant 
hygiene field; we do not know exactly what Mexico party means.  
Pg. 85, párrafo  3.137 
Sin embargo, durante el per íodo examinado China introdujo diversas reglamentaciones relacionadas 
con las prescripci ones sanitarias y fitosanitarias que adoptaron la forma, entre otras, de Decretos 
de la AQSIQ. Algunas de ellas son: las Medidas sobre la Supervisi ón y Administraci ón de la 
Inspecci ón y Cuarentena para la Entrada y Salida de Cereales (Decreto No 177, de  2016, de la 
AQSIQ); las Medidas para la Administraci ón de Unidades y Personal dedicados a la Cuarentena de 
Entrada y Salida (Decreto No 181, de 2016, de la AQSIQ); las Medidas Administrativas sobre las 
Licencias Sanitarias en Frontera (Decreto No 182, de  2016, de la AQSIQ); las Medidas sobre la 
Supervisi ón y Administraci ón de la Inspecci ón y Cuarentena para la Entrada de Animales Acu áticos 
(Decreto No 183, de 2016, de la AQSIQ); y las Medidas Administrativas sobre la Cuarentena para la 
Entrada y Salid a de Cruceros (Decreto No 185, de 2016, de la AQSIQ).  
Question  
44. "China introdujo diversas reglamentaciones a los requisitos sanitarios y fitosanitarios. " ¿Dónde 
se puede consultar esta información?  
Reply  
The relevant laws and regulations can be available from communique the Standing Committee of 
the National People's Congress, website of the National People's Congress ( http://www.npc.gov.cn/ ), 
the State Council Communique, website of the Chinese Government, website of  legal information of 
the Chinese government and  the Collected Edition of Laws and Regulations published by China Legal 
Publishing House.  
Pg. 85, párrafo  3.140 
Las empresas extranjeras que fabrican, importan, elaboran y almacenan alimentos deben estar 
registradas en la CNCA para que sus productos alimenticios puedan ser importados en China.88 
Adem ás, en la Ley de Inocuidad de los Alimentos, de  2015, se establece una reglamentaci ón especial 
para determinados alimentos o productos relacionados con la al imentaci ón (por ejemplo, los 
suplementos  (89), los "preparados alimenticios para usos medicinales especiales", y los preparados 
para lactantes y preparados complementarios y dem ás alimentos especiales), que est án sujetos a 
supervisi ón y administraci ón. Las empresas que fabrican estos productos deben cumplir tr ámites de 
registro o solicitud especiales, establecer un sistema de gesti ón de la calidad de la producci ón, y 
presentar un informe de "autoinspecci ón" a la administraci ón de productos aliment icios y 
farmac éuticos del Gobierno local. Adem ás, la Ley de Inocuidad de los Alimentos establece que los 
importadores de productos alimenticios deben crear un sistema de registro de la importaci ón y venta 
de los alimentos y aditivos alimentarios que inc luya, entre otros datos: el nombre del producto, sus 
especificaciones, la cantidad, la fecha de producci ón, y el n úmero de lote de la producci ón y la 
importaci ón; el tiempo de conservaci ón del producto o los aditivos alimentarios; y el nombre, la 
dirección y los datos de contacto del exportador. Los tr ámites de registro y solicitud var ían en funci ón 
del producto.  WT/TPR/M/3 75/Add.1  
 
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  Question  
45. Producir estos productos debe cumplir formalidades especiales de registro, establecer un 
sistema de gesti ón de calidad de produ cción, y presentar un informe de "autoinspecci ón" a los 
alimentos y medicamentos administraci ón del gobierno local. Se toma en cuenta algn criterio o 
lineamiento para llevar a cabo la "autoinspecci ón"? ¿Y de ser as í, cuáles son y en d ónde se puede 
encontrar esta información?  
Reply  
Since different products are involved, they differ from each other in registration and filing 
procedures. Hence, Mexico is advised to give a description to specific products. Meanwhile, it is 
necessary to spe cify that both the intention and objective of requirements related to registration 
and filing procedures raised are for ensuring food safety, boosting consumer confidence, reducing 
trading costs and facilitating trade.  
3.3.4 Pol ítica de competencia y cont roles de precios , 3.3.4.1 Pol ítica de competencia , 
3.3.4.1.1 Marco legislativo e institucional , pg. 87, párrafo  3.147 
Con arreglo al art ículo 9 de la Ley Antimonopolio, el Consejo de Estado cre ó una Comisi ón 
Antimonopolio con el fin de que organizara, coordinara y orientara la labor antimonopolio y de que 
realizara tareas tales como: i) analizar y elaborar pol íticas s obre competencia; ii) organizar 
actividades de investigaci ón y an álisis de la competencia en el conjunto del mercado y publicar 
informes de evaluaci ón; iii) formular y publicar directrices antimonopolio; y iv) coordinar la aplicaci ón 
administrativa de la Ley Antimonopolio. El Comit é está presidido por un Viceprimer Ministro e 
integrado por Ministros o altos funcionarios de los Ministerios y las comisiones reglamentarias 
competentes del Consejo de Estado. El Ministerio de Comercio sirve de Oficina Gene ral de la 
Comisi ón y se encarga del trabajo cotidiano.  
Question  
46. How is autonomy encouraged by the Anti -Monopoly Committee when organizing, coordinating, 
guiding and fostering competition?  
Reply  
China's anti -monopoly law enforcement agencies always treat the domestic and foreign investment 
equally, and strive to create a fair and transparent law enforcement environment and a fair market 
environment so as to safeguard consumer rights and promote sustained and healthy economic 
development.  
Pg. 87, párrafo  3.148 
Algunos miembros de instituciones acad émicas consideran que el actual marco institucional para la 
aplicaci ón de la pol ítica de competencia de China no puede garantizar plenamente el funcionamiento 
de dicha pol ítica, ya que: i) el reparto de compete ncias que establece la Ley Antimonopolio entre 
tres organismos menoscaba la coherencia legislativa y pol ítica; y ii) la falta de autonom ía de los tres 
organismos hace que la pol ítica de competencia pueda verse influida por las pol íticas industriales, 
que en ocasiones pueden entrar en conflicto con la pol ítica de competencia.  
Question  
47. Some academics are of the view that the current institutional framework of competition policy 
enforcement in China is not fully able to ensure the full functioning of com petition policy, since: 
(i) the AML's division of authority across three agencies diminishes coherence in law and policy; and 
(ii) the lack of autonomy of the three agencies creates the potential that competition policy may be 
influenced by industrial policies which sometimes conflict with competition policy. Will the new 
authority have full autonomy?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to Scheme of the State Council on Institutional Reform and Description on Scheme of the 
State Council on Institutional Reform  disclosed in 2018, reforming market regulation system and 
adopting centralized market regulation are a crucial link to building a centralized, open, competitive 
and orderly modern market system. In order to improve the market regulation mechanism, create 
a market environment for fair competition and further boost integrated law enforcement in market 
regulation, the State Council has decided to integrate responsibilities of three anti -monopoly law 
enforcement institutions and Office of the Anti -Monopoly  Committee of the State Council to 
undertake centralized anti -monopoly law enforcement work. The merged State Administration for 
Market Regulation shall continue to carry out the anti -monopoly law enforcement work with effort 
in accordance with A nti-Monopoly  Law. 
Pg. 87, párrafo  3.149  
El Ministerio de Comercio, la Comisi ón Nacional de Desarrollo y Reforma (NDRC) y la Administraci ón 
Estatal de Industria y Comercio (SAIC) asumen, en sus respectivos ámbitos de competencia, 
diferentes aspectos de la labor de reg lamentaci ón antimonopolio. Concretamente, la Oficina 
Antimonopolio del Ministerio de Comercio tiene a su cargo la realizaci ón de ex ámenes antimonopolio 
en caso de concentraci ón de empresas. La NDRC y la SAIC se ocupan de cuestiones espec íficas 
relacio nadas con la vigilancia de los acuerdos monopol ísticos, el abuso de posici ón dominante en el 
mercado y el abuso de facultades administrativas. La Oficina de Supervisi ón de los Precios y Lucha 
contra los Monopolios de la NDRC se encarga de investigar y s ancionar las infracciones de las normas 
en la materia relacionadas con los precios, en tanto que la Oficina de Observancia de las 
Disposiciones contra los Monopolios y la Competencia Desleal de la SAIC se ocupa de las cuestiones 
relativas a los acuerdos de  monopolio, el abuso de posici ón dominante en el mercado y el abuso de 
facultades administrativas para eliminar o restringir la competencia . 
Question  
48. Different aspects of antimonopoly regulatory work fall under respective responsibilities of 
MOFCOM, the NDRC and the SAIC. The creation of a new competition regulator was announced in 
April 2018. What powers will this authority have? Will a new regulatory framework be designed and 
put in place? If yes, is there a timeframe for these changes? Will the new competition regulator have 
sectorial powers?  
Reply 
According to Scheme on Deepening Party and State Institution Reform , the State Administration for 
Market  Regulation undertakes the centralized anti -monopoly law enforcement work by integrating 
the anti -monopoly law enforcement responsibility of the State Administration for Industry and 
Commerce, price regulation and inspection and anti -monopoly law enforceme nt responsibility of the 
National Development and Reform Commission, centralized anti -monopoly law enforcement on 
operators of the Ministry of Commerce of the People's Republic of China and responsibility of Office 
of the Anti -monopoly Committee of the Sta te Council.  
Pg. 88, párrafo  3.150 
La Comisi ón Antimonopolio del Consejo de Estado est á elaborando unas Directrices Antimonopolio 
relativas al Ejercicio Abusivo de los Derechos de Propiedad Intelectual. El 23 de marzo de 2017 se 
public ó en línea el borrador de estas Directrices para rec abar observaciones del p úblico. El objetivo 
de estas Directrices es orientar acerca de c ómo se puede aplicar la Ley Antimonopolio a las 
infracciones de los derechos de propiedad intelectual, as í como mejorar la transparencia en la 
aplicaci ón de las nor mas antimonopolio. Seg ún las autoridades, la redacci ón de las Directrices ya ha 
finalizado; el documento resultante fue remitido a la Oficina Antimonopolio del Consejo de Estado y 
está abierto a la formulaci ón de observaciones p úblicas. Las infraccion es de la Ley Antimonopolio 
están sujetas a sanciones administrativas, con inclusi ón de multas, decomiso de ganancias ilegales 
y órdenes de cese y desistimiento, que pueden ser impuestas por el MOFCOM, la SAIC o la NDRC, 
según la naturaleza de cada caso . La NDRC puede delegar su competencia a las comisiones de 
desarrollo y reforma provinciales correspondientes, y estas pueden delegar los casos a un nivel 
inferior. La SAIC puede abrir ella misma una investigaci ón en casos de monopolio, o autorizar para WT/TPR/M/3 75/Add.1  
 
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  ello a las administraciones de industria y comercio provinciales. La SAIC puede asumir la 
investigaci ón de los casos que ha abierto, o bien delegar esa investigaci ón a las correspondientes 
administraciones de industria y comercio provinciales o subprovinc iales, o a las administraciones 
homólogas de los municipios con planificaci ón autónoma. En los casos de investigaciones iniciadas 
por una administraci ón de industria y comercio, la administraci ón de industria y comercio provincial 
puede delegar la inv estigaci ón y los trabajos pertinentes a determinados organismos, entre ellos las 
administraciones de industria y comercio municipales. Adem ás de esas medidas administrativas, las 
partes perjudicadas por infracciones de disposiciones antimonopolio pueden recurrir a los tribunales. 
A fin de crear un entorno m ás favorable a la competencia, el 1o de junio de 2016 el Consejo de 
Estado public ó los Dict ámenes sobre el Establecimiento de un Sistema de Examen de la Competencia 
Leal en el marco del Desarrollo de  Sistemas Orientados al Mercado (Guo Fa No 34, de 2016). En 
estos Dict ámenes se establece un plan integral para crear y aplicar un sistema de examen de la 
competencia leal. Estos Dict ámenes disponen que todas las pol íticas y medidas relacionadas con 
actividades econ ómicas orientadas al mercado se someter án a un examen de competencia leal antes 
de su publicaci ón. La NDRC y la SAIC han ido adoptando iniciativas conjuntas en colaboraci ón con 
los departamentos pertinentes para impulsar la puesta en pr áctica de los Dict ámenes.  
Question  
49. Según las autoridades, el proceso de redacci ón de las directrices se ha completado, y se han 
presentado a la oficina antimonopolio del Consejo de Estado y est án abiertas a los comentarios del 
público. Las violaciones de l a AML est án sujetas a sanciones administrativas que incluyen multas, 
confiscaci ón de ganancias ilegales y órdenes de cese y desistimiento. Estos pueden ser aplicados 
por el MOFCOM, el SAIC o el NDRC, seg ún la naturaleza del caso. ¿Cuál es el destino que se  le da a 
estas confiscaciones y multas? ¿Cuáles son los factores para las sanciones aqu í mencionadas?  
Reply  
China is still putting into practice the scheme on state institution reform in all respects. New details 
of rights and responsibilities will be disclosed upon completion of the reform, by which, please access 
the official website of SAMR for details: http://samr.saic.gov.cn/index.html .  
Pg. 88, Recuadro  3.1 
Principales reglamentaciones y directrices sobre cuestiones relativas a la pol ítica de competencia.  
Question  
50. Who will enforce these regulations? What ar e the expected changes with a new competition 
authority?  
Reply  
According to the national institutional reform plan, State Administration for Market Supervision will 
uniformly undertake anti -monopoly law enforcement; supervise administrative monopoly according 
to law, and take the lead in conducting fair competition review. According to the Anti -Monopoly Law, 
the Anti -Monopoly Committee of the State Council is responsible for studying and formulating 
relevant competition policies.  
3.3.4.1.2 Acuerdos monopol ísticos , pg. 90, párrafo  3.152 
La Ley Antimonopolio prev é la imposici ón de sanciones administrativas por concertar y aplicar un 
acuerdo monopol ístico, incluidas las siguientes: dictado de una orden para poner fin a la actividad 
infractora; decomi so de toda ganancia ilegal; e imposici ón de una multa no inferior al 1% ni superior 
al 10% de las ventas realizadas el a ño anterior. Si ese acuerdo monopol ístico a ún no se ha aplicado, 
la multa no podr á exceder de 500.000 yuan. La colaboraci ón volunt aria con la autoridad 
investigadora o la aportaci ón de pruebas materiales durante la investigaci ón podr án dar lugar a la 
reducci ón o al levantamiento de la sanci ón.  WT/TPR/M/3 75/Add.1  
 
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  Question  
51. Mitigation or exemption from the penalty may be obtained in cases of voluntary collaboration 
with the investigating authority or by providing material evidence during the investigation. Please 
provide more details on mitigation or exemption of sanctions.Is  there a programme  in place?  
Reply  
China is still putting into practice the scheme on state institution reform in all respects. New details 
of rights and responsibilities will be disclosed upon completion of the reform, by which, please access 
the officia l website of SAMR for details: http://samr.saic.gov.cn/index.html .  
3.3.4.1.3 Posiciones dominantes en el mercado , pg. 90, párrafo  3.153 
La Ley Antimonopolio y sus normas de aplicaci ón proh íben que las empresas que ocupan posiciones 
dominantes en el mercado abusen de ellas para adoptar determinadas conductas. Por ejemplo, estas 
empresas tienen prohibido: vender productos a precios injustificadamente elevados o comprar 
productos a precios injustificadamen te bajos; sin razones v álidas, vender productos a precios 
inferiores al costo o aplicar precios distintos a diversas contrapartes en igualdad de condiciones; sin 
razones v álidas, negarse a realizar transacciones con sus contrapartes o realizar compras o ventas 
vinculantes de productos; negar a las contrapartes el acceso a las instalaciones esenciales en 
condiciones razonables; e imponer condiciones de comercio poco razonables. Si bien la existencia 
de una posici ón dominante en el mercado se determina sob re la base de una serie de factores, como 
las cuotas de mercado, la competitividad, la capacidad financiera y las condiciones t écnicas, tambi én 
se puede determinar que existe una posici ón dominante cuando: una sola empresa cuenta con la 
mitad del mercad o pertinente total; la cuota de mercado conjunta de dos empresas alcanza dos 
tercios del mercado total; o la cuota de mercado conjunta de tres empresas equivale a tres cuartas 
partes del total. Todas las decisiones se toman caso por caso.  
Question  
52. The AML and its implementation rules prohibit firms holding dominant market positions from 
certain types of conduct by abusing their dominant position. For instance, these firms are prohibited 
from: selling products at unreasonably high prices or purchasing produc ts at unreasonably low prices; 
without valid reasons. What are the criteria for determining that prices are unreasonably high or low?  
Reply  
China is still putting into practice the scheme on state institution reform in all respects. New details 
of rights and responsibilities will be disclosed upon completion of the reform, by which, please access 
the official website of SAMR for details: http://samr.saic.gov.cn/index.html . 
3.3.4.1.4 Fusiones y adquisiciones , pg. 91, párrafo  3.159 
Según se prev é en las Disposiciones del Consejo de Estado de 2008 y en las Disposiciones 
Provisionales sobre la Investigaci ón de Concentraciones de Empresas No Notificadas (Orden N o.  6 
[2011] del Ministerio de Comercio), el Ministerio de Comercio puede iniciar investigaciones para 
determinar si las actividades de concentraci ón no notificadas deberan haberse notificado y haber 
sido objeto de un examen antimonopolio. Las partes en la concentraci ón consideradas inf ractoras 
pueden ser sancionadas con una multa no superior a 500.000 yuan si la investigaci ón determina 
que la concentraci ón no notificada deber ía haberse autorizado mediante un examen antimonopolio. 
El Ministerio de Comercio puede tambi én ordenar la revoca ción de la concentraci ón. 
Question  
53. Puede explicar China el motivo por el cual el criterio para definir las actividades de fusi ón que 
deben notificarse y ser objeto de un examen antimonopolio, de acuerdo a las Disposiciones del 
Consejo de Estado (Decreto No. 529 [2008] del Consejo de Estado) y las Medidas del MOFCOM 
Relativas a la Notificaci ón de la Concentraci ón de Empresas (Orden N o. 11 [2009] del MOFCOM) se 
basa en el monto de la operaci ón y no de participaci ón en el mercado?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China is still puttin g into practice the scheme on state institution reform in all respects. New details 
of rights and re sponsibilities will be disclosed upon completion of the reform, by which, please access 
the official website of SAMR for details: http://samr.saic.gov.cn/index.html . 
Pg. 91, párrafo  3.160 
La documentaci ón de notificaci ón debe incluir la propia notificaci ón, una explicaci ón del impacto de 
la concentraci ón sobre la competencia en el mercado pertinente, el acuerdo de concentraci ón, el 
informe financiero de todas las empresas implicadas correspondiente al a ño previo, as í como otros 
documentos requeridos por las autoridades. Tras recibir la notificaci ón y la documentaci ón 
justificante, el MOFCOM realiza u n examen preliminar de la notificaci ón y, en un plazo de 30 d ías, 
decide si es necesario realizar un nuevo examen. Se debe informar por escrito del resultado del 
examen preliminar a las empresas interesadas. Si el MOFCOM decide realizar otro examen, este  
debe finalizase en un plazo de 90 d ías, contado a partir de la fecha de adopci ón de esa decisi ón. El 
MOFCOM puede aprobar la concentraci ón, rechazarla o autorizarla con condiciones. La decisi ón 
definitiva tambi én se debe remitir por escrito a las em presas involucradas. En los casos en que no 
se apruebe la concentraci ón propuesta, esta decisi ón se debe justificar a las partes afectadas. En 
determinadas circunstancias, el Ministerio de Comercio puede prorrogar el plazo para realizar el 
examen, pero n o por m ás de 60 d ías. 
Question  
54. Cuando el MOFCOM decida realizar una nueva revisi ón, debe concluir dentro de los 90 d ías a 
partir de la fecha en que se adopte dicha decisi ón. El MOFCOM puede aprobar la concentraci ón, 
rechazarla o aprobarla con condiciones . La decisi ón final tambi én se enviar á por escrito a las 
empresas interesadas. En los casos en que se decida no aprobar la concentraci ón propuesta, los 
motivos de dicha decisi ón deben ser proporcionados a las partes pertinentes. En algunas 
circunstancias, el MOFCOM puede ampliar el per iodo para la revisi ón. Sin embargo, el per íodo de 
extensi ón no debe exceder los 60 d ías. ¿En qu é casos este plazo puede extenderse?  
Reply  
China is still putting into practice the scheme on state institution reform in all respects. New details 
of rights and responsibilities will be disclosed upon completion of the reform, by which, please access 
the official website of SAMR for details: http://samr.saic.gov.cn/index.html . 
Pg. 92, párrafo  3.164 
Adem ás, la Ley Antimonopolio dispone que, en los casos de adquisici ón de una empresa nacional 
por un inversor extranjero o de participaci ón de un inversor extranjero en concentraciones por otros 
medios, tambi én deber á llevarse a cabo un examen sobre la seguridad nacional si las autoridades 
consideran que esta se ve afectada por la operaci ón. Las autoridades se ñalan que el examen de la 
concentrac ión de empresas y el de la seguridad nacional se realizan conforme a dos procedimientos 
distintos. El MOFCOM se encarga de examinar la concentraci ón, y las autoridades responsables de 
la seguridad nacional se ocupan de los aspectos relacionados la seguri dad nacional.  
Question  
55. ¿Puede China explicar cuales son los criterios para implementar la disposici ón de la Ley 
Antimonopolio de llevar a cabo un examen sobre seguridad nacional para las adquisiciones de 
empresa nacionales por inversionistas extranjeros o de participacin extranjera en fusiones?  
Reply  
So far, China has not conducted an anti -monopoly examination on foreign investors acquiring 
domestic enterprises or participating in M&A in other ways out of national security.  WT/TPR/M/3 75/Add.1  
 
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  Question  
56. ¿Puede China explicar s i esta disposici ón aplica para todas las operaciones de adquisici ón de 
empresas nacionales y fusiones por inversionistas extranjeros?  
Reply 
Please  see the following for details.  
Question  
57. The AML also provides that, in cases of acquisition of a domestic enterprise by a foreign 
investor or when a foreign investor participates in concentrations by other means, a national security 
review must also be conducted if the authorities consider that the  acquisition involves state security. 
The authorities note that review of the concentration of undertakings and the national security review 
are two different review systems. MOFCOM is responsible for concentration review, while the national 
security autho rities take care of factors related to national security. In this case, how do both 
authorities reach a consistent outcome? If any, how do conflicts are resolved?   
Reply  
China 's Anti -Monopoly Law is designed to maintain market competition, promote and safe guard the 
legitimate rights of all enterprises regardless of their types of ownership or size, including state -
owned enterprises, private enterprises and foreign -invested enterprises, enable all types of 
enterprises to engage in fair competition in the mar ket economy, and standardize the market order. 
Under the regulation of this law, the Chinese market will create a better market competition 
environment for Chinese and foreign companies, which will facilitate foreign companies to invest in 
China, while wit hout negatively affecting China 's policies of attracting and using foreign capital.  
3.3.4.1.7 Cooperaci ón internacional , pg. 94, párrafo  3.171 
China participa en actividades relacionadas con la pol ítica de competencia en el marco del APEC, la 
OCDE y la UNCTAD. Mantiene su labor de cooperaci ón internacional sobre cuestiones de pol ítica de 
competencia con las autoridades responsables de esta materia de otros pa íses o grupos de pa íses. 
Las autoridades se ñalaron que, desde 2016, China ha firmado un memo rando de entendimiento 
sobre cooperaci ón bilateral antimonopolio con el Reino Unido, el Brasil y Espa ña. China tambi én ha 
firmado los memorandos de entendimiento sobre cooperaci ón en materia de legislaci ón y pol ítica de 
competencia con los pa íses BR ICS. En el marco del ALC entre China y Corea ambos pa íses acordaron 
cooperar y coordinarse de forma exhaustiva para aplicar las pol íticas de competencia. En el ALC 
entre China y Australia se reconoce la importancia de la pol ítica de competencia y se acu erda 
intensificar la cooperaci ón técnica en este ámbito. Adem ás, en el ALC entre China e Islandia y el ALC 
entre China y Suiza tambi én se acuerda llevar a cabo, en la medida necesaria, consultas, 
intercambios de informaci ón y actividades de cooperaci ón técnica sobre la observancia de las 
políticas de competencia. Seg ún las autoridades, en los últimos a ños la SAIC tambi én ha participado 
en las negociaciones entre China, el Jap ón y Corea, China y la Uni ón Econ ómica Euroasi ática, China 
y Singa pur (actualizaci ón), China y Nueva Zelandia (actualizaci ón), China y Chile, China y el Per ú 
(actualizaci ón) y China y Noruega, as í como en relaci ón con el Acuerdo de Inversi ón entre China y 
la UE. China no pertenece a la Red Internacional de Compete ncia y, tal como se indicaba en el 
examen anterior, no hay un plazo preciso para que China considere la posibilidad de incorporarse a 
la red . 
Question  
58. The authorities stated that since 2016, China has signed a memorandum of understanding on 
bilateral anti -monopoly cooperation with the United Kingdom, Brazil, and Spain. Additionally, China 
has also signed the Memoranda of Understanding on Competition Laws and Policy Cooperation with 
BRICS countries. Which is the main objective for China by signing these MoUs ?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
To strengthen anti -monopoly law enforcement, protect fair market competition, safeguard the rights 
and interests of consumer, and promote sustained and healthy economic development.  
3.3.5 Comercio de Estado, empresas  propiedad del Estado y privatizaci ón, pg. 98, 
párrafo  3.178 
Las empresas comerciales del Estado de China tienen el derecho exclusivo de importar o exportar 
los siguientes productos: cereales, az úcar, tabaco, arroz, ma íz, algod ón, carb ón, petr óleo crudo, 
petróleo elaborado,  abonos qu ímicos, tungsteno, t é, seda, antimonio y plata (secci ón 4.2). Las 
autoridades se ñalan que el funcionamiento de las empresas comerciales del Estado se rige por el 
mecanismo del mercado, sin injerencia del Gobierno.  
Question  
59. ¿Cuál es el porcentaje de participación de las empresas comerciales del Estado en el comercio 
internacional de bienes y servicios de China? En los Tratados de Libre Comercio suscritos por China 
¿existen disciplinas para regular el comercio de sus empresas es tatales? En caso afirmativo ¿en 
cuál/cuáles de ellos?  
Reply 
First of all, China has suspended the state -owned trading administration on export of tea and silk in 
2004 and 2005 respectively. Second, China has not yet formulated separate measures for the 
administration of state -owned trading. For the relevant provisi ons, please refer to Article 11 of the 
Foreign Trade Law , Articles 47, 48, 51 and 52 of the Regulation on the Administration of the Import 
and Export of Goods.  Third, before the end of each year, the relevant Chinese departments will issue 
announcements on  the management of some state -owned trading commodities. For example, at the 
end of 2017, an announcement was issued on the declaration conditions and declaration procedures 
for exporting state -owned trading enterprises of tungsten, antimony and silver.  
Pg. 98, párrafo  3.179 
Durante el per íodo examinado, China respondi ó a las preguntas que le formularon en el Grupo de 
Trabajo sobre las Empresas Comerciales del Estado. Las preguntas fueron planteadas por Australia, 
la Uni ón Europea y los Estados Unidos. En diciembre de 2017 un Miembro present ó una 
contranotificaci ón en el Grupo de Trabajo sobre las empresas comerciales del Estado de China, en 
la que enumer ó siete compa ñías que en su opini ón deb ían figurar en esa categor ía.  
Question  
60. ¿China podría explicar los criterio s que consideró en su notificación de empresas comerciales 
de 2015, para NO clasificar en ella las siete empresas sugeridas en la mencionada contra -notificación 
presentada por uno de los miembros en diciembre de  2017?  
Reply  
The above seven companies have all been included in the list of state -owned trading companies. 
The current names are as follows: China Tobacco International Inc., China National Offshore Oil 
Corporation, Sinochem Group Co., Ltd., China Petrochemical Corporation, China National Agricultu ral 
Means of Production Group Corporation, Chinatex Corporation, Xinjiang Yinlong International 
Agricultural Cooperation Co., Ltd.  
Pg. 98, párrafo  3.180 
En la econom ía china, la propiedad p ública coexiste con diversas modalidades de propiedad privada. 
La participaci ón del Estado va de la propiedad total, y la propiedad mayoritaria a la propiedad como 
un accionista m ás. El sector privado es dominante en industrias tales como la del vestido, los 
alimentos y el montaje para la exportaci ón, mientras que la s empresas p úblicas predominan en 
sectores como la energ ía; los servicios p úblicos; y los servicios de transporte, financieros, de WT/TPR/M/3 75/Add.1  
 
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  telecomunicaciones, de ense ñanza y de atenci ón sanitaria. Las empresas p úblicas pueden ser de dos 
tipos: entidades come rciales y entidades de protecci ón social.  
Question  
El párrafo hace mención de dos formas en las que el gobierno chino puede ser propietario de una 
empresa comercial:  
61. ¿Puede China explicar las formas en las que el gobierno podra ejercer control sobre una 
empresa estatal, adems de los casos en los que es considerado como socio mayoritario de una 
empresa comercial?  
Reply  
Please see below for details.  
Question  
62. ¿En qué sectores operan las empresas comerciales del Estado en las que el gobierno chino no 
es considerado como un socio mayoritario?  
Reply  
Please see below for details.  
Question  
63. ¿Cuál es el porcentaje de participación de comercio y producción de las empre sas estatales 
del sector industrial (manufacturero) en China?  
Reply  
Since the accession to the WTO, the proportion of state -owned enterprises in China's import and 
export has been declining and the proportion of private enterprises has been rising. In 2017, the 
import and export of state -owned enterprises accounted for 16.3% of the total value of China's 
import and export of goods, decreased by 26.2% compared with that in 2001; the import and export 
of private enterprises accounted for 38.9% of the tota l volume of imports and exports, increased by 
32.3% compared with that 2001.  
Pg. 92, párrafo  3.182 
En su calidad de representante del Gobierno, la Comisi ón de Supervisi ón y Administraci ón de Activos 
Estatales (SASAC) se encarga de aportar capital a las empresas p úblicas que gestiona y de nombrar 
a sus altos directivos. En enero de 2018 la SASAC ten ía 98 empresas p úblicas a su cargo (frente a 
las 106 que ten ía en enero de 2016), de las cuales 82 cotizaban en bolsas nacionales o 
internacionales. La reducci ón del n úmero de empresas supervisadas por la SASAC se debe a la actual 
reestructuraci ón de las empresas p úblicas. A mediados de 2017, las empresas controladas por la 
SASAC contaban con alrededor de 11 millones de empleados, y en 2016 sus activos ten ían un valor 
total aproximado de 50 billones de yuan. No se dispone de informaci ón sobre el imp orte total de las 
inyecciones de capital.  
Question  
64. ¿Cuáles son los elementos que la SASAC considera en un plan de reestructura de sus empresas 
comerciales? ¿Existe algún plan de reestructura para más empresas comerciales del Estado? 
Identificar sectores.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
State Council issued the Opinions on the Development of Diversified Ownership of State -Owned 
Enterprises  in 2015 and encouraged to adjust the proportion of state -owned shares by means of 
overall listing, acquisition and reorganization and issuance of convertible bonds, actively introduce 
various types of investors to form an efficient & flexible operational mechanism with diversified 
shareholding structure.  
The Opinions specified that it is necessary to absorb foreign capital in an orderly manner for the 
reform of diversified ownership of state -owned enterprises and introduce foreign capital for 
restructuring , reorganization and establishing joint -venture cooperation of state -owned enterprises. 
Foreign capital can be involved in the relevant industries in accordance with the relevant provisions 
of the current Catalog ue for the Guidance of Foreign Investment . 
Pg. 100, párrafo  3.186 
Las autoridades se ñalan que las empresas p úblicas est án sujetas a los mismos tipos impositivos que 
las empresas privadas. Tambi én indican que estas empresas no gozan de acceso preferencial a 
determinados insumos, tales como la ele ctricidad, la tierra, las materias primas o el cr édito.  
65. ¿Cuál es el marco regulatorio aplicable a las empresas comerciales del Estado en China?  
Reply  
China is still putting into practice the scheme on state institution reform in all respects. New details 
of rights and responsibilities will be disclosed upon completion of the reform.  
Pg. 100, párrafo  3.187 
Muchas empresas p úblicas siguen recibiendo ayu da financiera. En 2016, alrededor de 
3.000  empresas cotizadas en las bolsas de Shangh ái y Shenzhen recibieron ayuda gubernamental 
por valor de 123.215 millones de yuan111 (en comparaci ón con los 89.421 millones de yuan de 
2014). Siete de las diez empresa s que m ás ayuda recibieron en 2016 eran p úblicas, frente a las 
nueve de  2014 (cuadro 3.21). Las empresas que recibieron ayuda financiera pertenecen 
principalmente a los sectores de los productos qu ímicos, los autom óviles, la excavaci ón y el acero. 
La ayuda destinada a las compa ñías de fabricaci ón de autom óviles se increment ó, mientras que la 
destinada a las empresas del sector del acero se redujo.  
Question  
66. Many SOEs continue to receive financial support. Companies that received financial support 
are mainly from chemical, automobile, excavation, and steel industries. Companies in the car 
manufacturing industry received an increasing amount of support, while the amount received by 
companies in steel industries decreased. It is planned to reduce in t he future this financial support?  
Reply  
Please refer to China 's subsidy notifications for details . 
Question  
67. Qué tipo de apoyos gubernamentales y financieros reciben las empresas comerciales del 
Estado, en general y en espec ífico las empresas comerciales del sector sider úrgico?  
Reply  
Please refer to China 's subsidy notifications for details . WT/TPR/M/3 75/Add.1  
 
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  3.3.6 Contrataci ón pública , 3.3.6.1 Panorama general , pg. 100, párrafo  3.190 
Según los datos facilitados por las autoridades chinas, el valor total de la contrataci ón pública en 
China fue de 2,11 billones de yuan en 2015 y de 3,11 billones de yuan en 2016 ( último a ño sobre 
el que se dispone de datos), lo que equivale al 3,1% y al 4,2% del PIB, respectivamente 
(cuadro  3.22). Este porcentaje relativamente  bajo puede reflejar el hecho de que importantes 
proyectos de infraestructura ejecutados por empresas estatales no est án sujetos a la Ley de 
Contrataci ón Pública. La mayor parte de la contrataci ón pública tiene lugar a nivel de los gobiernos 
subcentra les. La contrataci ón de las entidades locales represent ó en 2016 un 95% del valor total de 
la contrataci ón pública china; ese mismo a ño, la contrataci ón del Gobierno central represent ó un 5%.  
Question  
68. According to data from the WTO, countries alloc ate 15% of their GDP to government 
procurement, China allocate in 2015 and 2016 the 3.1% and 4.2% respectively, of its GDP for 
government procurement, which type of procurement entities are considered in those  percentages?  
Reply  
According to Article II in Government Procurement Law , the procuring entities of government are 
the national authorities, public institutions and organizations at all levels.  
Question  
69. Why the majority procurement takes place at sub central government level  and where does 
the sub central entities obtain the resources for the procurement?  
Reply  
Procurement by Chinese government is carried out separately at the central and local government 
levels. From the statistical data, the scale of procurement by local g overnment is higher than that 
of the central government. This is mainly because the scale of expenditure by local government is 
higher than that of the central government.  
Question  
70. When referring to: "This relatively low ratio may reflect the fact that imp ortant infrastructure 
projects implemented by SOEs are not covered by the Government Procurement Law. The majority 
of procurement takes place at the sub -central government level () ", could you please inform to us, 
which are the Laws that regulated the gove rnment procurement for SOEs and each sub -central entity?  
Reply  
Procurement by state -owned enterprises is not covered by the Government Procurement Law . Local 
government entities need to implement the relevant legal systems on government procurement.  
3.3.6 .2 Marco jur ídico e institucional , pg. 101, párrafo  3.191 
Desde el anterior examen no se han producido cambios importantes en el r égimen legislativo y la 
reglamentaci ón de la contrataci ón pública en China. La Ley de Contrataci ón Pública (modificada por 
última vez en 2014113) y su Reglamento de Aplicaci ón (promulgado el 1o de marzo de 2015) siguen 
siendo las disposiciones legislativas b ásicas que regulan las actividades de contrataci ón pública en 
China. En la legislaci ón se establecen los princi pios generales de la contrataci ón pública, las funciones 
de las partes que intervienen en las actividades de contrataci ón, los m étodos y procedimientos de 
contrataci ón, las normas de contrataci ón, el mecanismo de licitaciones competitivas, la supervi sión 
de la contrataci ón y los deberes de vigilancia de los órganos p úblicos competentes, as í como las 
correspondientes responsabilidades jur ídicas. La Ley se aplica a los contratos enumerados en el 
Catálogo de Contrataci ón Centralizada y a los de u n valor superior al valor de umbral. La Ley y su 
Reglamento conexo se aplican a los órganos estatales, las instituciones p úblicas y las organizaciones 
sociales financiadas a trav és de recursos fiscales ordinarios; por consiguiente, los contratos que 
adjudiquen las empresas p úblicas no est án incluidos. La Ley tambi én establece que sus disposiciones WT/TPR/M/3 75/Add.1  
 
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  no se aplican a lo siguiente: a la contrataci ón realizada con pr éstamos de Gobiernos extranjeros u 
organizaciones internacionales; a la contrataci ón de e mergencia motivada por desastres naturales 
o a la relacionada con la seguridad nacional; a la contrataci ón en el marco de un acuerdo con el 
prestatario y/o proveedor de fondos que no contenga ninguna disposici ón especial respecto de la 
contrataci ón; y a  la contrataci ón militar.  
Pg. 101, párrafo  3.192  
La Ley de Licitaciones (que entr ó en vigor el 1o de enero de 2000, tres a ños antes de la promulgaci ón 
de la Ley de Contrataci ón Pública) es, de hecho, el instrumento legislativo que regula el r égimen  de 
contrataci ón de las empresas p úblicas. En concreto, establece que todos los contratos de proyectos 
de construcci ón de un valor inferior al valor de umbral (incluidos los grandes proyectos de 
infraestructura, los proyectos de servicios p úblicos, los  proyectos financiados total o parcialmente 
por el Estado o por un programa estatal de financiaci ón y los proyectos financiados por 
organizaciones internacionales y gobiernos extranjeros por medio de pr éstamos y fondos de ayuda) 
deben regirse por sus dis posiciones. En el Reglamento de Aplicaci ón de la Ley de Contrataci ón Pública 
se reafirma que si se utiliza la licitaci ón para la contrataci ón de proyectos de construcci ón, en los 
procedimientos de litaci ón se aplicar á la Ley de Licitaci ón. El Regl amento de Aplicaci ón de la Ley de 
Licitaciones, que entr ó en vigor el 1o de febrero de 2012, est á actualmente en curso de modificaci ón 
para facilitar la utilizaci ón de la licitaci ón electr ónica y tener en cuenta la evoluci ón de las pr ácticas 
de licitación. Las modificaciones propuestas fueron publicadas por la NDRC el 29 de agosto de 2017 
para recibir comentarios.115 Otros instrumentos legislativos que pueden repercutir en la contrataci ón 
pública son la Ley de Presupuesto, la Ley de Contratos, l a Ley de Calidad de los Productos, la Ley 
de Precios y la Ley Antimonopolio.  
Question  
71. What are the differences between the Government Procurement Law and the Tendering and 
Bidding Law and the aim of having two different laws?  
Reply  
Government Procurement  Law is a special regulation for government procurement, in which the 
bidding and tendering of procurement must comply with the provisions of the Laws on Tenders and 
Bids. Laws on Tenders and Bids  is a special regulation for bidding and tendering, includin g 
procurement activities by government procurement. As long as the tendering and bidding is carried 
out, the Laws on Tenders and Bids  must be implemented.  
Question  
72. According to paragraph 3.192, could you please clarify why the Tendering and Bidding Law is 
de facto the law that regulats the government procurement by SOEs and explain the criteria to apply 
at the same time two different laws for the same matter (the tendering and bidding law and 
Government Procurement Law)?  
Reply  
The entities of the Laws on Te nders and Bids  are not limited to state -owned enterprises. Any entities 
in China, including private enterprises and other unincorporated organizations shall apply to the 
Laws on Tenders and Bids when they hold any bidding activities (mandatory or voluntary ). 
Question  
73. The last part of paragraph 3.192 mentions that: "[t]he Implementing Regulations of the 
Tendering and Bidding Law, which came into effect on 1 February 2012, are currently under 
amendment with a view to facilitating the use of e -tendering and re flecting other developments in 
tendering practices. The proposed amendments were published by the NDRC for public comments 
on 29 August 2017 ". Could you please share if this amendment came into force?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the provisions of the Legislation L aw, the Laws on Tenders and Bids , Enforcement 
Regulations of Laws on Tenders and Bids  will be open to the public for comments during the revision 
process. The revised full text will be published to the public after the promulgation and can be 
accessed via State Council Bulletin, Chinese government homepage, Chinese Government legal 
system Information websites and the Laws and Regulations of the PRC in Common Use published by 
the China Legal Publishing House.  
Pg. 101, párrafo  3.192  
Las autoridades han promovido tambi én en los últimos a ños la utilizaci ón de alianzas p úblico-
privadas en la esfera de la contrataci ón pública para incentivar la intervenci ón de fondos privados 
en el suministro de bienes y servicios p úblicos por el  Estado. El 31 de diciembre de 2014, el Ministerio 
de Hacienda public ó las Medidas Administrativas sobre la Contrataci ón Pública de Proyectos de 
Alianzas P úblico-Privadas (Circular del MOF, Caiku No 215, de 2014). Seg ún las autoridades, estas 
Medidas Administrativas se aplican principalmente al proceso de selecci ón de socios privados por las 
entidades contratantes. La reglamentaci ón se basa en las mejores pr ácticas internacionales, en 
particular, las Disposiciones Legales Modelo de la CNUDMI sobre P royectos de Infraestructura con 
Financiaci ón Privada. Las normas concretas aplicables a los proyectos en los que intervienen alianzas 
público-privadas son semejantes a las aplicables a la contrataci ón pública convencional. No obstante, 
introducen unos requisitos m ás exigentes de transparencia y de vigilancia en el proceso de 
contrataci ón.  
Question  
74. Related to this paragraph does China have a specific law to apply these Administrative 
Measures and could it be explained how does the mechanism for privat e investors to be partners 
work?  
Reply  
The current legal basis of Public -Private -Partnership (PPP) in China includes Budget law , Government 
Procurement Law , and Contract Law . China is currently promoting legislation of public -private -
partnership to regulate PPP activities.  
Fiscal Affordability  Special Purpose Vehicle  The main purpose of promoting the PPP mode is to 
introduce market entities to participate in the provision of public services via open competition and 
promote the quality and efficiency of public services. The operation mechanism of China's PPP project 
draws on the best international practices. The operation process of PPP project mainly includes 
five stages: identification, preparation, procurement, execution and handover. To be specific , firstly, 
the government or social capital makes the project proposal. Secondly, project implementation plan 
will be prepared and feasibility and financial affordability (Fiscal Affordability) of adoption of the PPP 
mode in the project will be demonstrate d. The projects that have passed the demonstration will be 
included in the nation project library for unified management. The full life cycle information of such 
projects will be published and social supervision will be accepted. Third, via open competitiv e 
procurement, cooperative partners will be selected on the government procurement platform and 
cooperative agreements will be signed. Fourth, a project company as per the cooperation agreement 
(Special Purpose Vehicle) will be established. It shall be res ponsible for investment construction and 
operation of the project and obtain corresponding returns according to output performance. Fifth, 
after the cooperation period expires,  the project company shall hand  over the project to the 
government as per the co ntract.  
Uniform rules, standardized operations, openness and transparency and performance orientation are 
the key words for promoting PPP in China.  
3.3.6.3 M étodos y procedimientos de contrataci ón pública , pg. 10 3, párrafo  3.197 
La contrataci ón pública puede estar centralizada o descentralizada, dependiendo de si est á incluida, 
o no, en los Cat álogos de Contrataci ón Centralizada. La contrataci ón centralizada es obligatoria si 
su objeto son bienes, servicios o proyectos de construcci ón enumerados en los Cat álogos de WT/TPR/M/3 75/Add.1  
 
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  Contrataci ón Centralizada. Los art ículos incluidos en los Cat álogos son habitualmente bienes o 
servicios sujetos a normas tecnol ógicas unificadas. La finalidad de la contrataci ón centralizada es 
reducir los costos gracias a la realiz ación de adquisiciones en gran escala. No existe un cat álogo ni 
umbrales uniformes para todo el pa ís. El Consejo de Estado publica y actualiza un Cat álogo de 
Contrataci ón Centralizada único para la contrataci ón a escala del Gobierno central, mientra s que los 
gobiernos a escala provincial publican sus propios Cat álogos de Contrataci ón Centralizada para la 
contrataci ón a escala provincial y local. Las adquisiciones de art ículos incluidos en los Cat álogos de 
Contrataci ón Centralizada deber án ser realizadas por los organismos competentes. La Ley de 
Contrataci ón Pública establece que estos organismos adquieran bienes y servicios de calidad a un 
precio inferior al precio medio de mercado. En lo que respecta a los bienes, servicios y proyectos de 
construcci ón no incluidos en los Cat álogos, las entidades contratantes pueden realizar la contrataci ón 
por s í mismas o a trav és de organismos profesionales de contrataci ón, respetando las normas 
establecidas en la Ley de Contrataci ón Pública o en la Ley de Licitaciones. En 2015, China adopt ó un 
sistema nacional de registro de los organismos profesionales de contrataci ón, que as í estarán 
incluidos en la lista que las entidades contratantes pueden utilizar para llevar a cabo un proceso de 
contrataci ón descentralizado. Bas ándose en las disposiciones de las Medidas Provisionales sobre los 
Organismos de Gesti ón de la Contrataci ón Pública (Cai Ku No 2 [2018]), para ser incluidos en la 
lista, los organismos de contrataci ón deben facilitar la informa ción requerida en el portal provincial 
(de la provincia en que hayan realizado el procedimiento de registro comercial e industrial) del sitio 
web dedicado a la contrataci ón pública de China. A finales de noviembre de 2017, estaban 
registrados en l ínea más de 9.800 organismos de contrataci ón. Seg ún la informaci ón de los 
departamentos pertinentes, entre 2015 y 2016 el 52,3% de la contrataci ón se realiz ó de forma 
centralizada.  
Question  
75. Could you explain the mechanism to determine "the lower price -than-average -for-the-market 
price" and why is it mandatory exclusively for these type of agencies?  
Reply  
Government Procurement Law  does not define "purchasing quality goods and services at a price 
below the market average". This provision is only a fundamen tal requirement. According to Article  17 
of the Government Procurement Law , this requirement applies only to centralized procurement 
agencies.  
Question  
76. What is the aim of having different government procurement thresholds across the country? 
What is the criteria to determine the threshold value?   
Reply  
There may be huge differences between economic development and scale of government 
procurement in different places. Specific standards shall be determined by the central and local 
governments.  
Pg. 10 3, párr afo 3.198 
La Ley de Contrataci ón Pública conserva la disposici ón relativa a la compra de productos nacionales 
(artículo 10), a la que no afect ó la modificaci ón de 2014. La disposici ón establece que las entidades 
deben contratar bienes, proyectos de construcci ón y servicios nacionales, con las excepciones 
siguientes: i) cuando los bienes, los proyectos de construcci ón o los servicios requeridos no est én 
disponibles en China o, si lo est án, no puedan adquirirse en condiciones comerciales razonables ; 
ii) cuando los bienes, los proyectos de construcci ón y los servicios se adquieran para su uso en el 
extranjero; o iii) cuando se disponga otra cosa en otras leyes o reglamentos administrativos. No se 
han establecido criterios para determinar lo que son productos nacionales, pero las autoridades 
indican que el Gobierno aplica las mismas normas a las empresas nacionales y a las empresas con 
inversi ón extranjera, y en la pr áctica China aplica un r égimen no discriminatorio e igual a todos los 
productos fa bricados en China con independencia del grado de vinculaci ón con el extranjero o de 
participaci ón de capital extranjero de los fabricantes. LasMedidas Administraciones relativas a la WT/TPR/M/3 75/Add.1  
 
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  Contrataci ón Pública de Productos Importados (promulgadas por el Mini sterio de Hacienda el 27 de 
diciembre de 2017) exige la aprobaci ón previa de la contrataci ón de productos importados.119 Las 
autoridades indican que no se dispone de informaci ón sobre la contrataci ón pública efectiva que 
incluya los bienes, los servic ios y los proyectos de construcci ón de origen nacional.  
Question  
77. According to this paragraph, could you clarify if any foreign supplier can participate in any 
tender with the same treatment like a domestic supplier?  
Reply  
Suppliers that meet the require ments of Article 22 of the Government Procurement Law  may 
participate in government procurement activities in accordance with the law.  
Pg. 10 6, párrafo  3.209 
Para aumentar la transparencia y conseguir que el p úblico tenga una mayor informaci ón sobre la 
contrataci ón pública, adem ás de las Medidas Administrativas sobre la Publicaci ón de Informaci ón 
respecto de la Contrataci ón Pública (Orden, N o 19, de 2004, del MOF), el Ministerio de Hacienda ha 
publicado la Circular sobre las Medidas para Promover la Divu lgación de la Informaci ón sobre la 
Contrataci ón Pública (Circular del MOF, Cai Ku N o 135, de 2015,). En la Circular se exige que las 
entidades contratantes publiquen informaci ón sobre la contrataci ón pública y las licitaciones en los 
medios de comunicaci ón que designe el Ministerio de Hacienda de manera oportuna, exhaustiva y 
uniforme.122 En la Circular se establece el alcance, el contenido y los requisitos de la informaci ón 
que se publique. La informaci ón publicada ha de incluir: i) las leyes, reglamentos,  medidas 
administrativas y normas relativas a la contrataci ón pública; ii) la informaci ón relativa a los 
procedimientos concretos de contrataci ón pública, por ejemplo, los anuncios de contratos, los pliegos 
de condiciones, el valor presupuestario de un pro cedimiento concreto de contrataci ón, los anuncios 
de adjudicaci ón de contratos, los contratos, etc.; y iii) informaci ón relativa a la vigilancia y las 
sanciones, por ejemplo, decisiones sobre las impugnaciones de licitaciones, decisiones sobre las 
sancione s derivadas de la vigilancia y supervisi ón de los contratos, resultados de la evaluaci ón de la 
actuaci ón de los organismos autorizados para realizar la contrataci ón centralizada, los antecedentes 
de comportamientos ilegales o deshonestos, etc. Las decision es sobre la adjudicaci ón de contratos 
deben publicarse en los medios designados antes de que transcurran dos d ías hábiles desde que 
fueron adoptadas.   
122. Los medios de comunicaci ón designados por el Ministerio de Hacienda para publicar informaci ón 
sobre contrataci ón pública son, entre otros: el China Finance and Economic News, el China 
Government Procurement Newspaper, el China Government Procurement Magazine y el China State 
Finance Magazine. No obstante, para facilitar el acceso a informaci ón sobre  la contrataci ón pública 
por las partes interesadas, toda la informaci ón publicada en los medios de comunicaci ón debe 
publicarse simult áneamente en el sitio web dedicado a la contrataci ón pública de China. Los 
gobiernos a escala subcentral pueden el egir por s í mismos los medios de comunicaci ón en que 
publicar án informaci ón sobre la contrataci ón pública. Cuando se trate de contratos a escala de 
gobiernos subcentrales por un valor superior a 5 millones de yuan, la informaci ón sobre el contrato 
debe publicarse simult áneamente en la parte principal del sitio web dedicado a la contrataci ón 
pública de China.  
Question  
78. According to this information, is it possible to have statistics related with government 
procurement at sub -central level at least for procurement above RMB  5 million?  
Reply  
It is possible.  WT/TPR/M/3 75/Add.1  
 
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  3.3.6.5 Mecanismo de reclamaci ón por los proveedores , pg. 10 7, párrafo  3.217 
En 2015 ( último a ño sobre el que se dispone de datos), los departamentos de hacienda de los 
diversos niveles de toda China admitieron a tr ámite 2.629 reclamaciones planteadas por proveedores 
en la esfera de la contrataci ón pública. Las aut oridades han se ñalado que los departamentos de 
hacienda de los distintos niveles han seguido mejorando el sistema de tramitaci ón de las 
reclamaciones desde el examen anterior y han establecido un mecanismo de cooperaci ón y 
coordinaci ón multidepartament al y de notificaci ón de las infracciones.  
Question  
79. Is any system or disclosing mechanism to maintain a "black list " of the suppliers that commit 
a fraud or other type of misconduct or crime?  
Reply  
Information records on illegal and dishonest act of government procurement have been published in 
the Chinese government procurement website. Financial department shall publish information 
announcements on media designated by government procurement in acco rdance with the 
Government Procurement Law of People's Republic of China  and its implementation regulations.  
3.3.7 Derechos de propiedad intelectual , 3.3.7.1 Panorama general , pg. 109, párrafo  3.222 
Adem ás, el 15 de marzo de 2017 la Quinta Sesi ón Plenaria del 12o Congreso Nacional del Pueblo 
adopt ó las Disposiciones Generales del C ódigo Civil, que desarrollan los Principios Generales del 
Código Civil de la Rep ública Popular China promulgados en 1986. Las Disposiciones entraron en vigor 
el 1o de  octubre de 2017 y, seg ún las autoridades, constituyen el primer texto legislativo chino en 
el que se mencionan expl ícitamente las indicaciones geogr áficas y otras materias de propiedad 
intelectual.  
Question  
80. ¿Qué tipo de disposiciones contiene la secci ón de IGs? ¿Cuál fue el objetivo/raz ón para legislar 
en materia de IGs?  
Reply  
According to the institutional reform scheme of the State Council in March 2018, the State 
Intellectual Property Office takes charge of trademarks, patents, a geographical indica tion of origin 
registration and administrative adjudication and other works, which lays the foundation of systems 
and mechanisms to further protect geographical indication protection. In accordance with the 
Decision of Institutional Reform of the State Cou ncil Involving Administrative Rules and Regulations 
of Administrative Organ Responsibility Adjustment Problems , the Geographical Indication Product 
Protection Regulation shall be executed by the state continuously. The protection of geographical 
indication  can be achieved by applying the geographical indication of origin, or the applications or 
certification marks or collective marks. In addition, foreign producers of agricultural products can 
apply for registration of geographical indications of agricultur al products in accordance with the 
Censorship Rules of Foreign Registration of Geographical Indication of Agricultural Products .  
Pg. 111, cuadro 3.26  
Modificaciones recientes de la reglamentaci ón relativa a las patentes, 2017. Disposiciones sobre la 
Reglamentaci ón de las Actividades relacionadas con la Solicitud de Patentes.  
Question  
81. ¿A qué se refieren con "non -normal" patent ("patentes atípicas")?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In this rule, "the abnormal behavio ur of applying for a patent" refers to the applying behavio ur 
obviously contrary to the principle of good faith, including all kinds of situations of patent application 
not for the purpose of protecting the innovation, such as repeat submission, copying, carrying out 
simple replacement or cohere of different material s, constituents, matching, parts, fabricating 
experimental data or technical effect and the shape, pattern and colo ur of the products randomly 
generated.  
3.3.7.2 Propiedad industrial , 3.3.7.2.3 Indicaciones geogr áficas , pg. 115, párrafo  3.244 
Adem ás de l as Disposiciones Generales del C ódigo Civil, la Administraci ón Estatal de Industria y 
Comercio (SAIC), la Administraci ón Estatal General de Supervisi ón de la Calidad, Inspecci ón y 
Cuarentena (AQSIQ) y el Ministerio de Agricultura (MOA) otorgan protecc ión a indicaciones 
geogr áficas de diferentes tipos en virtud de sus respectivas leyes y reglamentos.145 La SAIC protege 
las indicaciones geogr áficas como marcas colectivas y marcas de certificaci ón de conformidad con 
la Ley de Marcas de F ábrica o de Comercio, su Reglamento de Aplicaci ón y los Procedimientos para 
el Registro y la Administraci ón de Marca s Colectivas y de Certificaci ón.146 La AQSIQ protege las 
indicaciones geogr áficas de productos con arreglo a las Disposiciones relativas a la Protecci ón de las 
Indicaciones Geogr áficas de Productos147 y las Normas de Aplicaci ón relativas a la Protecci ón de las 
Indicaciones Geogr áficas de Productos.148 Las indicaciones geogr áficas de productos agr ícolas 
pueden registrarse en el Ministerio de Agricultura con arreglo a las Medidas relativas a la 
Administraci ón de las Indicaciones Geogr áficas de Prod uctos Agr ícolas.  
Question  
82. ¿Cuál es el criterio para determinar si una indicaci ón geogr áfica se protege a trav és de la 
figura de marca colectiva, marca de certificaci ón o como indicaci ón geogr áfica? ¿Es debido a la 
naturaleza del bien (agr ícola y no agr ícola) y la autoridad ante la cual se presenta la solicitud o es a 
elecci ón del solicitante?  
Reply  
At present, applicants can choose to register the geographical indication as certification mark, 
collective trademark or product of geographical indication for  protection. The geographical 
indications of agricultural products are only able to protect geographical indications of agricultural 
products, not the non -farm products. Meanwhile, China's ongoing institutional reform at present, 
the geographical indicatio n protection mode can be changed upon the completion of institutional 
reform, please be subject to the final  results of the  institution al reform.  
Pg. 116, párrafo  3.245 
El 28 de marzo de 2016, la AQSIQ promulg ó las Medidas relativas a la Protecci ón de las Indicaciones 
Geogr áficas Extranjeras (Medidas)150, con miras a fortalecer la protecci ón y la administraci ón de las 
indicaciones geogr áficas extranjeras. Esas Medidas regulan, entre otras cosas, la solicitud de 
registro, el examen y la anulaci ón de las indicaciones geogr áficas extranjeras para las que se trate 
de obtener protecci ón en China. La protecci ón de las indicaciones geogr áficas se otorga sobre la 
base de reciprocidad, es decir, a productos originarios de pa íses que hayan establecido la s 
correspondientes relaciones de comunicaci ón y cooperaci ón con China.151 La AQSIQ public ó tambi én 
Planes de Acci ón Especiales para la Protecci ón y la Mejora de la Calidad de las Indicaciones 
Geogr áficas Nacionales, con el fin de mejorar la protecci ón de las indicaciones geogr áficas y de 
promover la cooperaci ón interregional e internacional.  
Question  
83. ¿Cómo se protegen las IGs extranjeras? ¿A fin de determinar que son IGs se debe llevar a 
cabo algún tipo de procedimiento de oposición o únicamente una solicitud por parte del otro 
Miembro?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Foreign geographical indications which conform to the requirements of relevant laws and regulations  
are allowed to apply for registrations which can act as certification marks and collective marks, 
product of geographical indication, and geographical indications of agricultural products.  
Regardless of the forms of geographical indication registration, the process must go through the 
announcement and dissent procedure.  
3.3.7.4 Otros derechos de propiedad intelectual , 3.3.7.4.3 Informaci ón no divulgada y 
secretos comerciales , pg. 118, párrafo  3.256 
No existen leyes o reglamentos espec íficos por los que se rija la protecci ón de la informaci ón no 
divulgada y los secretos comerciales. En varias leyes y reglamentos, como la Ley de Represi ón de 
la Competencia Desleal, el C ódigo Penal, la Ley del Trabajo, el Reglamento de Aplicaci ón de la Ley 
de Administr ación de Productos Farmac éuticos y el Reglamento sobre la Administraci ón de Productos 
Químicos Agr ícolas, se establecen disposiciones conexas para la protecci ón de la informaci ón no 
divulgada y los secretos comerciales. El 4 de noviembre de 2017, el  Comit é Permanente del Congreso 
Nacional del Pueblo public ó una modificaci ón de la Ley de Represi ón de la Competencia Desleal que 
entró en vigor el 1o de enero de 2018. Con el fin de fortalecer la protecci ón de los secretos 
comerciales, la Ley fue ob jeto de varias modificaciones: por ejemplo, se redefinieron los secretos 
comerciales, se identificaron m ás comportamientos infractores y se aumentaron las sanciones por 
infracci ón de secretos comerciales. Seg ún las autoridades, en virtud de la modificac ión se mejor ó la 
definici ón de secretos comerciales; se a ñadió el concepto de "fraude" al acceso indebido a secretos 
comerciales; se a ñadió una disposici ón seg ún la cual los departamentos de inspecci ón y supervisi ón 
y sus empleados tendr án la o bligaci ón de mantener la confidencialidad de los secretos comerciales 
de que tengan conocimiento en sus investigaciones; y se fortalecieron las sanciones administrativas 
por infracci ón de secretos comerciales y otros actos de competencia desleal mediante , por ejemplo, 
el aumento del importe de las multas.  
Question  
84. ¿Qué leyes regulan las condiciones laborales en China? ¿Qué tipo de información confidencial 
protegen las leyes laborales?  
Reply  
Labour conditions are basic issues involved in all forms of employment for all workers, such as 
working hours, rest periods, minimum wages, working age, labo ur security and labo ur protection. 
The Labour  Law is the most important law of China's labo ur security la w system. Labour  Contract 
Law, Employment Promotion Law and Social Insurance Law  are supporting structural laws and those 
laws all stipulate basic labo ur conditions. Additionally, the Rules of the State Council on Working 
Hours of Workers and Staff Members , Prohibition of the Use of Child Labour , Special Provisions on 
Labour  Protection for Female Employees Tentative Provisions on  Payment of Wages and other 
administrative regulations and departmental regulations also stipulate labo ur conditions.  
The Labour  Law clarifies that the parties to a labo ur contract may stipulate in the labo ur contract 
matters related to the trade secrets of the employer. Labour  Contract Law  stipulates that the 
employer and the employee may stipulate in the labo ur contract the trade  secrets of the employer 
and the confidential matters related to intellectual property rights. For workers who are obligated to 
keep confidential, the employer can agree with the employee in the labo ur contract or the 
confidentiality agreement about provis ions on competitive restriction. The personnel under 
competitive restriction shall be limited to senior man agers, senior technicians and other personnel 
who are obligated to keep confidential.  
Question  
85. ¿Cuáles son las sanciones en las diferentes leyes que se mencionan por revelar un secreto 
comercial, sin autorizaci ón del titular?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
As per General Provisions of Civil Law of the People's Republic of China , the possible liabilities for 
infringing commercial secrets contains the cessation of infringement,  removal of obstacles, and 
compensation for losses etc. In accordance with the Anti-unfair Competition Law of the People's 
Republic of China , operators infringing others' commercial secrets shall be sentenced to render the 
obligee indemnity of no more than  RMB 3 million if the obligee suffered the actual loss and the profits 
gained by infringer cannot be determined. Meanwhile, operators infringing others' commercial 
secrets shall be ordered to stop the unlawful act by the supervision and inspection departme nt and 
fined RMB of more than 500,000 while no less than 100,000. In cases of gross violation, the fine 
shall be more than RMB 500,000 while no more than 3 million. As for staffs in supervision and 
inspection department abusing power, being dereliction of duty, committing illegalities for personal 
gains or revealing commercial secrets known in investigative procedure, they shall be given 
sanctions in accordance with the law.  
And according to the Criminal Law of the People's Republic of China , infringing commercial secret 
and causing significant loss to the holders of the commercial secrets, the outlaw shall be sentenced 
to fixed -term imprisonment of not more than three years or criminal detention, and concurrently or 
independently be subjected to a fine . When the consequences are particularly serious, the sentence 
shall be not less than three years and not more than seven years of fixed -term imprisonment, and 
a fine shall be given.  
3.3.7.5 Observancia , 3.3.7.5.2  Observancia por v ía administrativa , pg. 121, párrafo  3.262 
En septiembre de 2017, el Grupo Director Nacional de Lucha contra la Infracci ón de los DPI y los 
Productos Falsificados public ó el Plan de Acci ón relativo a la Protecci ón de los Derechos de Propiedad 
Intelectual de Empresas con Inversi ón Extranjera, centrado, entre otras cosas, en la lucha contra 
las infracciones de los secretos comerciales de empresas con inversi ón extranjera, la protecci ón de 
las marcas de f ábrica o de comercio extranjeras y la lucha contra la pirater ía en Interne t y otras 
infracciones del derecho de autor.  
Question  
86. ¿En qu é consiste el plan de acci ón que se menciona en este p árrafo? ¿Qué medidas se han 
llevado a cabo para implementar dicho plan de acci ón?  
Reply  
The Action Plan for Protection of Intellectual Property Rights of Foreign -funded Enterprises 
(hereinafter referred to as Action Plan)  decided to collectively fight against the infringement of 
intellectual property rights of foreign -funded enterprises illegal and criminal behavio urs during 
September 2017 to Dec ember 2017, which was the first time that Chinese government carried out 
the special action for the sake of the protection of intellectual property rights of foreign -funded 
enterprises in recent years.  
The Action Plan put forward 11 work tasks, wh ich pinpointed related department division of duties, 
requiring cracking down on infringement of commercial secrets, patent rights, new plant varieties, 
and the malicious registered trademark and "free -ride", and illegal and criminal behavio urs about 
infringing internet piracy shall be cracked down and deterred. Plus, strengthen the supervision and 
regulation on key links of import and export and delivery, investigate and deal with accordingly a 
group of serious, bad effect of infringing counterfeit crimes and protect the interests of the obliges 
effectively.  
The Action Plan required relevant administrative enforcement and criminal justice departments to 
cooperate closely, improve coordination mechanism and case handling efficiency, and accept and 
hear a ca se timely for relevant cases and quickly handle in accordance with the law, thus further 
creating a fair market environment and a favo urable investment environment.  WT/TPR/M/3 75/Add.1  
 
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  Pg. 122, párrafo  3.265 
Por lo que se refiere al derecho de autor, la NCAC es el organismo responsable de la observancia 
por v ía administrativa. En 2015 public ó el Plan Nacional de Trabajo 2015 para Combatir las 
Infracciones del Derecho de Autor y la Falsificaci ón en el Sector de la Prensa y la Edici ón (Derecho 
de Autor), que contiene dispos iciones para luchar contra la falsificaci ón y contra las violaciones de 
la privacidad y del derecho de autor.173 La NCAC ha continuado la campa ña "Network Sword", en 
cuyo marco las autoridades locales encargadas del derecho de autor han investigado asunt os 
relacionados con infracciones en l ínea del derecho de autor y actos de pirater ía. Seg ún las 
autoridades, la campa ña "Network Sword" 2017 se centr ó en mantener la reglamentaci ón del 
derecho de autor en l ínea. 
Question  
87. ¿Qué facultad tiene NCAC para  prevenir y/o sancionar la conducta de grabaci ón no autorizada 
de obras audiovisuales en salas de cine (camcording)? ¿Cómo est á regulada dicha conducta en la 
legislaci ón de China?  
Reply  
In accordance with the  Copyright Law of the People's Republic of China , films are works, and under 
the protection of the Copyright Law . 
Film copyright enjoys the personal rights and property rights regulated in the Copyright Law, when 
other parties infringe film copyright durin g the right protection term, the copyright owner can ask 
others to undertake corresponding civil liabilities.  
National Copyright Administration, together with the state Internet information office, Ministry of 
Industry and Information Technology, Ministry  of Public Security carried out the specific operation 
"Sword Net 2017 (Jian Wang 2017)" to fight against Internet and copyright infringement. During 
the special campaign, copyright law enforcement supervision departments at all levels, together with 
the N ational Internet Information Office, the Ministry of Industry and Ministry of Information, and 
the Ministry of Public Security and other departments, checked 63,000 websites, closed 
2,554  pirated websites, deleted 710,000 links to pirated products, confisc ated 2.76 million pirated 
products, filed 543 cases for investigation, investigated 57 criminal cases with the Public Security 
Department, involving a total amount of 107 million yuan. The internet copyright environment was 
further purified, the internet c opyright order was further standardized, and the special campaign 
achieved remarkable results.  
Pg. 122, párrafo  3.267 
El 20 de septiembre de 2017, la TMO puso en marcha una campa ña de "trazabilidad" para combatir 
las infracciones de marcas de f ábrica o de comercio. La campa ña se centr ó en la protecci ón de las 
marcas de f ábrica o de comercio notoriamente conocidas, las indicaciones geogr áficas, las marcas 
de fábrica o de comercio extranjeras y las marcas de f ábrica o de comercio consagradas. Las 
autoridades consideran que la campa ña ha prevenido y contenido efectivamente los riesgos de 
infracci ón de marcas de f ábrica o de comercio a nivel regional e industrial.  
Question  
88. ¿En qué consiste la campaña "Traceability"? ¿Únicamente es para marcas conocidas?   
Reply  
According to the unified deployment of the former Administration of Industry and Commerce, from 
the end of September 2017 to March 2018, the former administration of industry and commerce 
carried out a special system -wide "tracing" campai gn against trademark infringement. The main aim 
of the special campaign is "to be adhere to the problem orientation, actively deal with the new 
situation of cracking down on trademark infringement in the current market, effectively strengthen 
communication  and coordination within and outside the system, information sharing and law 
enforcement cooperation, focus on famous trademarks, geographical signs, foreign -related WT/TPR/M/3 75/Add.1  
 
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  trademarks and time -honoured trademarks, effectively carry out cooperation with relevant p arties 
such as rights holders, trade associations, e -commerce platforms, etc., intensify efforts to trace the 
source of trademark infringement cases, and carry out a full -chain attack on the production, sale, 
manufacture and other parts of trademark infrin gement products. Giving priority to resolving the 
focus of exclusive trademark rights protection, effectively preventing and containing the regional 
and industrial risks of trademark infringement, effectively improving the efficiency of administrative 
trademark law enforcement and striving to create a fair competitive market and a safe and secure 
consumption environment as well.''  
The main protection target of this campaign is trademarks vulnerable to trademark infringement 
cases on the market, including f amous trademarks, geographical signs, foreign -related trademarks 
and time -honoured trademarks etc.  
3.3.7.5.4 Observancia a nivel de las autoridades aduaneras , párrafo  3.271 
Las autoridades aduaneras est án encargadas de la observancia de los DPI en la frontera, de 
conformidad con la Ley de Aduanas, el Reglamento sobre la Protecci ón en Aduana de los Derechos 
de Propiedad Intelectual y las Normas de la Administraci ón de Aduan as de Aplicaci ón del Reglamento 
sobre la Protecci ón en Aduana de los Derechos de Propiedad Intelectual. Los titulares de marcas de 
fábrica o de comercio, derechos de autor, derechos conexos y derechos de patente que reciben 
protecci ón en virtud de las leyes y reglamentos y que guardan relaci ón con la importaci ón o 
exportaci ón de mercanc ías pueden solicitar a las autoridades aduaneras la retenci ón de mercanc ías 
sospechosas de infracci ón. En los casos en que los derechos no est én registrados en la  
Administraci ón General de Aduanas (GAC), las autoridades aduaneras est án facultadas para 
suspender el despacho de las mercanc ías infractoras de esos derechos mediante actuaciones de 
oficio.  
Question  
89. ¿Cómo se lleva a cabo el registro de mercancías sujetas a derechos de propiedad intelectual 
para que la autoridad aduanera pueda suspender la circulación de mercancías supuestamente 
infractoras ejerciendo su facultad "ex oficio "? ¿Existe una base de datos p ara cada derecho de 
propiedad intelectual?  
Reply  
Intellectual property rights holders may apply to the general administration of customs for filing 
their intellectual property rights in accordance with the regulations of the Regulations on the 
Customs Protection of Intellectual Property of People's Repub lic of China, and the following 
information is provided:  
(I) The title or name, place of registration or nationality of the intellectual property owner;  
(II) The title, content and related information of the intellectual property rights;  
(III) The exerc isability of intellectual property rights licen ce;  
(IV) The title, place of origin, customs at the place of entry and exit, importer and exporter, 
main characteristics, price, etc. of the goods legally exercising intellectual property 
rights by the owner of intellectual property rights;  
(V) Manufacturers, importers and exporters customs offices of entry and exit places, main 
  characteristics, prices, etc. of goods that infringe on intellectual property rights.  
The rights holders shall complete the appli cation through the online application, and the Chinese 
customs shall conduct an online review of all information. All the basic information on the record 
approved by the audit is open to the public and can be queried online.  WT/TPR/M/3 75/Add.1  
 
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  4 POL ÍTICAS COMERCIALES, POR S ECTORES  
4.1 Agricultura, silvicultura y pesca , 4.1.3  Instrumentos de política, 4.1.3.2 Medidas 
internas , 4.1.3.2.1 Medidas de ayuda , pg. 133, párrafo  4.223 
En 2017 se combinaron 19 "programas de pagos especiales por transferencia" en 10 programas. Se 
estudiar á y aplicar á un modelo de ordenaci ón denominado "grandes programas especiales + lista 
de tareas". Seg ún las autoridades, los objetivos de la reforma son reagrupar programas en grandes 
programas generales, distribuir los fondos de una vez en lug ar de a plazos y delegar la ejecuci ón en 
los gobiernos locales mediante el establecimiento de "listas de tareas", permitiendo a dichos 
gobiernos adaptar las pol íticas a las condiciones locales y mejorando al mismo tiempo los 
mecanismos de gesti ón de la ejecuci ón del presupuesto, as í como modificar las modalidades de 
determinadas pol íticas para transferirlas, desde la perspectiva de la OMC, del compartimento ámbar 
al compartimento verde. No se ha facilitado informaci ón sobre c ómo se transformar ían y 
reagrupar ían en esos nuevos programas los programas de subvenciones notificados a la OMC 
(descritos en el cuadro 4.7 supra). No obstante, sobre la base de las sucesivas asignaciones 
presupuestarias a programas agr ícolas durante el per íodo 2014 -2017, l a Secretar ía ha reunido 
informaci ón sobre la evoluci ón de los programas y la cuant ía asignada a cada uno de ellos. Ahora 
bien, esos datos pueden no estar completos. En el cuadro 4.8 se detalla esa informaci ón. 
Question  
90. ¿Podría el Gobierno de China pro porcionar información sobre cómo los esquemas de subsidios 
notificados con anterioridad a la OMC se reagruparon en los nuevos programas y cómo las 
modalidades de ciertas políticas han cambiado para pasar del apoyo ámbar al verde?  
Reply  
The reform aims at streamlining and combining fiscal expenditures on agriculture at the stage of 
making budget plan, so as to enhance the efficiency of subsidies for agriculture. The reorganization 
of the special programme s is a complex process. An example  can be given to help Members to 
understand this reform. Among the original 19 special programme s, comprehensive subsidies for 
agricultural inputs, subsidy for promoting superior strains and seed and direct subsidy to farmers (a 
sub-programme  supported by the fund for  reservation of grain and oil -seeds) are combined into the 
subsidy for the preservation of farmland fertility, a sub -programme  under the special programme  of 
Fund for the Development of Agricultural Production. In this case, the two programme s of amber 
box (comprehensive subsidies for agricultural inputs, subsidy for promoting superior strains and 
seed) are changed into green box subsidy, since the subsidy for the preservation of farmland fertility 
is decoupled a direct payment only based on t he area of contract farmland of the eligible farmer. 
For other cases, the adjustment in the budgetary management system does not change the manners 
in which subsidy programme s contained in each of the "large special programme s" are implemented, 
i.e., the programme s that used to be categorized as amber box  support will remain to be the amber 
box support, while the green box  supports will remain green.  
4.3 Manufacturas , 4.3.2 Subsectores seleccionados , 4.3.2.4 Hierro y acero , pg. 163, 
párrafo  4.110  
Según los datos facilitados por las autoridades, en 2016, China export ó 108 millones de toneladas 
de materiales de acero (incluidas palanquillas de acero) e import ó 13,5 millones de toneladas; las 
exportaciones netas de acero en bruto alcanzaron un volumen de 98, 55 millones de toneladas, 
equivalentes al 12,2% de la producci ón total de acero en bruto de China.  
Question  
91. ¿Cuál es el porcentaje de participaci ón de las empresas comerciales del Estado en la 
producci ón nacional de la industria siderr úgica?  
Reply  
As for  crude steel output, the steel output of state -owned steel enterprises accounted for about 45% 
of the total output in China in 2017.  WT/TPR/M/3 75/Add.1  
 
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  Question  
92. ¿Cuál es el porcentaje de participaci ón de las empresas comerciales del Estado en el comercio 
internacional de pro ductos siderr úgicos en China?  
Reply  
In 2017, China exported a total of 75.74 million tonnes  of steel, among which, 29.26 million tonnes  
were exported by state -owned enterprises, accounting for 38.8%; China imported a total of 
13.45  million tonnes  of steel.  
Question  
93. ¿Cuáles son las empresas comerciales del Estado del sector siderúrgico chino que tiene 
inversión en otros países? ¿En qué países?  
Reply  
The Chinese government will continue to strictly control the new capacity in industries with 
overcapacity, strengthen supervision and inspection, and consolidate the fruits made in de -capacity. 
China encourages enterprises to step up to phase out the capacity lacking competitiveness through 
market oriented methods based on law, such as mergers and  acquisitions, so as to promote stable 
operation of the industries.  
Pg. 164, párrafo  4.112 
Las principales medidas adoptadas por China han tenido los fines siguientes: 1) establecer objetivos 
claros para reducir el exceso de capacidad, es decir, reducir en  una cantidad de 100 a 150 millones 
de toneladas la capacidad de producci ón de acero en bruto entre 2016 y 2020; 2) utilizar medios 
legales y basados en el mercado para reducir la capacidad facilitando el abandono de las 
instalaciones de producci ón que n o cumplan las prescripciones legales y administrativas sobre 
protecci ón ambiental, consumo de energ ía, calidad, seguridad y nivel tecnol ógico y alentar el 
abandono de las instalaciones de producci ón ineficaces sobre la base de los principios del mercad o; 
y 3) tomar una serie de medidas de pol ítica, tales como: establecer un mecanismo conjunto 
interministerial integrado por 25 ministerios y organismos, eliminar las instalaciones de producci ón 
y los proyectos obsoletos que no cumplan las leyes y los reg lamentos, destinar 100.000 millones de 
yuan a un fondo especial para reasignar a los trabajadores afectados por la reducci ón de la capacidad 
en los sectores del acero (y del carb ón), reforzar la supervisi ón y la inspecci ón para impedir la 
reapertura de  instalaciones de producci ón cerradas y prohibir las inversiones en nuevas instalaciones 
de producci ón que infrinjan las leyes y los reglamentos vigentes.  
Question  
94. Como parte de los objetivos del trabajo de cooperación del Foro Global de Exceso de Capacidad 
de acero está el de eliminar subsidios y programas de apoyo gubernamental que pudieran generar 
efectos distorsionantes en el mercado, con el fin de hacer frente a  los retos de esta problemática: 
¿China identifica en sus planes de reestructura del sector, la eliminación de subsidios o programas 
gubernamentales ejercidos por el gobierno o por sus empresas comerciales del Estado para evitar 
el resurgimiento de este problema?  
Reply  
Regarding subsidies, China has been working to limit the growth of steel production capacity. 
Subsidies or other supporting measures contributing to overcapacity of steel or market distortions 
are not provided.  
Question  
95. ¿Cómo es que China p lanea cumplir su objetivo de reducir sus montos de capacidad de acero 
(de 100 a 150 millones de toneladas) en el periodo de 2016 -2020?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Chinese government will continue to strictly control the new capacity of overcapacity industries, 
increase supervi sion and inspection efforts and consolidate the results of de -capacity. Encourage 
enterprises to accelerate the exit of capacity with poor competitiveness in a marketized and legalized 
manner, such as merging and reorganization, so as to ensure the stable operation of the whole 
industry.  
Pg. 165, párrafo  4.114 
Según las autoridades, China trata de aplicar el concepto pr áctico de "reducci ón de la capacidad, en 
lugar de reducci ón de la producci ón, siendo el mercado el que determina la producci ón". De acuerdo 
con un informe del GFSEC, el 94% de la actual capacidad de producci ón de China se basa en 
tecnolog ía de altos hornos y de hornos de ox ígeno b ásico. Dentro del conjunto de econom ías del 
GFSEC, la capacidad de altos hornos y hornos de ox ígeno b ásico se concentra principalmente en 
China: en 2016, China represent ó el 67% de la capacidad instalada total de altos hornos y hornos 
de ox ígeno b ásico del conjunto de miembros del GFSEC, mientras que la capacidad de producci ón 
de acero en bruto de Ch ina represent ó el 52,8% de la capacidad total de las econom ías miembros 
del GFSEC. En cuanto al proceso de hornos de arco el éctrico, en 2016, China represent ó el 13,7% 
de todas las instalaciones de ese tipo existentes en el conjunto de econom ías miemb ros del GFSEC  
Question  
96. ¿Puede explicar China los mecanismos a trav és de los cuales la reducci ón de la capacidad de 
producci ón en el sector del acero reducir á la sobreoferta del mismo en el mercado?  
Reply  
Supply -side structural reform is an inevitable requ irement for adapting to the new normal state of 
China's economic development. Steel production capacity is an important part for the supply -side 
structural reform and the implementation of three to eliminate, one to reduce and one to improve. 
The Chinese g overnment attaches great importance to this issue. In February 2016, the State 
Council issued the Opinions on Resolving Excessive Capacity in the Iron and Steel Industry and 
Realizing the Development of Deprivation  (GF [2016] No. 6), proposing to reduce crude steel with a 
target of 1 -150 million tonnes  of production capacity during the 13th Five-Year Plan period. Through 
the joint efforts of all parties, by the end of 2017, China has reduced the crude steel producti on 
capacity by more than 120 million tonnes . In 2018, the Chinese government proposed to reduce the 
capacity of crude steel production by 30 million tonnes  and actively carried out special inspections 
for the steel industry to eliminate the excessive capac ity and prevent the recovery of the 
"substandard steel", supervising and inspecting local de -capacity to ensure the work of de -capacity 
has been implemented.  
Pg. 165, párrafo  4.115 
En octubre de 2013, el Consejo de Estado public ó las Directrices para la E liminaci ón del Exceso de 
Capacidad de Producci ón (Guo Fa No . 41 [2013]). En las Directrices se indica que China debe frenar 
la expansi ón arbitraria de los sectores con capacidad excesiva (entre ellos, la industria sider úrgica) 
y eliminar la capacidad d e producci ón contraria a las normas, as í como suprimir gradualmente la 
capacidad obsoleta. En el caso de los nuevos proyectos sider úrgicos, debe establecerse un plan de 
reconversi ón de la capacidad para asegurar que la capacidad total no aumente. En fe brero de 2016, 
el Consejo de Estado public ó los Dict ámenes sobre la Reducci ón del Exceso de Capacidad en el Sector 
del Acero para Impulsar el Desarrollo mediante la Soluci ón de Dificultades (Guo Fa No . 6 [2016]). 
En los Dict ámenes se proh íbe crear nu eva capacidad de producci ón de acero y se establece el 
objetivo de seguir eliminando el exceso de capacidad. Al mismo tiempo, las autoridades se proponen 
aplicar estrictamente todas las leyes, reglamentaciones y pol íticas industriales sobre protecci ón 
ambiental, consumo de energ ía, calidad, seguridad y tecnolog ía; la capacidad de producci ón de acero 
que no cumpla las normas o prescripciones se eliminar á de conformidad con las leyes o 
reglamentaciones pertinentes. China se propone tambi én instar a la s empresas a que eliminen parte 
de su capacidad de producci ón de acero a trav és de las medidas siguientes, entre otras: eliminaci ón 
activa de la capacidad; fusiones y adquisiciones y restructuraci ón; transformaci ón y conversi ón de 
las líneas de prod ucción; reubicaci ón y reconstrucci ón; y cooperaci ón global en la capacidad de WT/TPR/M/3 75/Add.1  
 
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  producci ón. China tiene previsto recortar la capacidad adicional de producci ón de acero en bruto en 
una cantidad de 100 a 150 millones de toneladas entre 2016 y 2020; con e llo se reducir á la 
producci ón entre un 9% y un 13% hasta situarla en un intervalo de 977 millones a 1.027 millones 
de toneladas; supondr á asimismo la recolocaci ón de unos 500.000 trabajadores y la adaptaci ón de 
la capacidad al consumo.  
Pg. 166, párrafo  4.116  
Con miras a facilitar la reestructuraci ón, China ha adoptado pol íticas para facilitar a las empresas el 
cumplimiento de sus obligaciones sociales en caso de cierre de f ábricas, conceder incentivos para 
ayudar a los trabajadores del sector del acero y promover el reempleo. En cuanto a las pol íticas y 
medidas relacionadas con la reestructuraci ón empresarial espec ífica del sector del acero, China ha 
adoptado medidas para facilitar los cambios en la estructura de la propiedad.86 Asimismo, Ch ina ha 
adoptado tambi én medidas de pol ítica relacionadas con la modernizaci ón y la reforma del sector, 
por ejemplo para promover la especializaci ón de la producci ón y las iniciativas destinadas a mejorar 
las aptitudes de los trabajadores.  
Question  
97. ¿Cuáles son los mecanismos e incentivos para mantener el consumo interno de acero 
implementados en los últimos años?  
Reply  
Steel consumption is determined by the market.  
Question  
98. ¿Sobre las medidas que China ha adoptado a este respecto, estas se aplican tanto a nivel 
central como a nivel sub -central? ¿De no ser el caso cu ál es el marco regulatorio  aplicable a nivel 
sub-central?  
Reply  
Steel consumption is determined by the market.  
4.4 Servicios , 4.4.1 Telecomunicaciones , 4.4.1.2 Marco normativo , pg. 172, párrafo  4.138 
Otra disposici ón fundamental de la Ley es su art ículo 23, seg ún el cual "los equipos de red esenciales 
y los productos especializados de seguridad de las redes deben  cumplir las normas y 
reglamentaciones t écnicas nacionales y haber obtenido el certificado de seguridad o superado las 
pruebas de seguridad de un establecimiento calificado, antes de su venta o suministro". El art ículo 23 
tambi én estipula que "los depar tamentos de informaci ón de las redes estatales, junto con los 
departamentos pertinentes del Consejo de Estado, elaborar án y publicar án un cat álogo de equipos 
de red esenciales y productos especializados de seguridad de las redes para promover el 
recono cimiento rec íproco de las certificaciones de seguridad y los resultados de las inspecciones de 
seguridad y para evitar la duplicaci ón de certificaciones e inspecciones". Ese cat álogo se public ó en 
junio de 2017.  
Question  
99. En este párrafo se hace referen cia a disposiciones en la Ley de Ciberseguridad donde se solicita 
lacertificaci ón de seguridad de equipos de red cr íticos y productos especializados de seguridad de 
redes. M éxico quisiera saber el objeto de esta medida ya que podr ía ser discriminatoria par a los 
operadores de red extranjeros.  
Reply  
In June 2017, China's National Internet Information Office, Ministry of Industry and Information, 
Ministry of Public Security, Certification Committee and other four departments released the 
first batch of Catalogue of Key Network Equipment and Special Products for Network Security . The WT/TPR/M/3 75/Add.1  
 
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  purpose of issuing ''the Catalogue'' is to reduce the problems of repeated monitoring and certification 
of key network equipment and special products for network security. Th e aim is to reduce the 
burdens on enterprises and create a good environment for industrial development which is neither 
to restrict the sale of products nor to set up trade barriers.  
4.4.2 Servicios financieros , 4.4.2.2 Cambios en la reglamentaci ón de los  servicios 
bancarios , pg. 177, párrafo  4.155  
En noviembre de 2017, China anunci ó que los organismos de reglamentaci ón suprimir ían las 
restricciones que limitaban la participaci ón de un inversor extranjero en un mismo banco chino al 
20% del capital y la  participaci ón extranjera agregada en las instituciones bancarias al 25% como 
máximo. Sin embargo, no se indic ó ningún calendario al respecto.  
Question  
100.  Dado que no se indicó ninguna pauta de tiempo, México quisiera conocer a partir de cuándo 
aplicará esta medida de liberalización.  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special  Administrative Measures for Foreign Investment Access (Negative List) 
(2018 edition) , which implements consistent management of domestic and foreign investment. The 
restriction on foreign equity ratio in the banking sector has been cancel led and will be i mplemented 
since 28 July 2018.  
Pg. 177, párrafo  4.159  
Recientemente, el PBOC y los miembros de la Conferencia Interministerial Conjunta para la 
Prevenci ón del Blanqueo de Dinero redactaron el "Dictamen para Mejorar el Sistema de Vigilancia y 
el Mecanismo  de Prevenci ón del Blanqueo de Dinero, la Financiaci ón del Terrorismo y la Evasi ón 
Fiscal", que fue aprobado por los ministerios y organismos interesados y se publicar á y promulgar á 
en forma de reglamentaci ón conjunta. El Dictamen contiene importante s orientaciones para el 
establecimiento de mecanismos de prevenci ón del blanqueo de dinero, la financiaci ón del terrorismo 
y la evasi ón fiscal en China.   
Question  
101.  Mexico requests further information regarding the "Opinion on Improving the Supervision 
System and Mechanism of Anti -money Laundering, Anti -terrorist Financing, and Anti -tax Evasion", 
since this topic is important for Mexico, we would like to develop in this subject.  
Reply  
On 29 August 2017, the General Office of the State Council issued the Opinions on Improving 
Regulatory System and Mechanism of Anti -Money -Laundering, Anti -Terrorist Financing and Anti -Tax 
Evasion . It stated that the supervision scope of anti -money -laundering and anti -terrorist financing 
shall be expanded properly to contribu te to achieving key supervision on the whole financial sector 
and specific areas of non -financial sectors with high risk.  
The construction of supervision system and mechanism for "Three Anti" in the China has achieved 
remarkable results since the release o f the document. The Report on the Risk Assessment of Money -
Laundering and Terrorist Financing in China  has been finished and supervision system for anti -
money -laundering and anti -terrorist financing has been built in such specific non -financial sectors 
with high risks as real estate, precious metal trading and accounting firms. According to the Opinion, 
by 2020, China will initially form a law and regulation system that meets the requirements of the 
socialist market economy, suits China's national condition s and conforms to international standards; 
establish a cooperative system for "Three Anti" supervision and coordination characterized by clear 
responsibilities, equal rights and liabilities to effectively prevent and control money -laundering, 
terrorist fin ancing as well as risk of tax evasion.  WT/TPR/M/3 75/Add.1  
 
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  4.4.2.7 Cambios en la reglamentaci ón de los pagos electr ónicos , pg. 180, párrafo  4.171 
La primera reglamentaci ón relativa a los pagos por medios electr ónicos en China fueron las 
Directrices sobre Pagos Electr ónicos (Anuncio No 1/23 del PBOC), publicadas el 26 de octubre de 
2005. En esas Directrices se define el concepto de pago electr ónico y se establecen las normas sobre 
la iniciaci ón y aceptaci ón de las órdenes de pago electr ónico, los controles de seguridad y la gesti ón 
de errores. A las Directrices siguieron las "Medidas Administrativas sobre los Servicios de Pago en 
Línea de Instituciones de Pago No Bancarias" (Anuncio No 4/43 del PBOC, publicado el 28 de 
diciembre de 2015). En esas Medidas se establecen normas sobre la gesti ón de clientes, actividades 
y riesgos; la protecci ón de los derechos de los consumidores; la supervisi ón de las instituciones de 
pago no bancarias que ofrecen servicios de pago en l ínea; y la responsabilidad legal de esas 
instituci ones.  
Pg. 180, párrafo  4.172  
Ninguna de estas reglamentaciones establece condiciones de acceso al mercado para las empresas 
extranjeras. A ese respecto, las Medidas Administrativas relativas a los Servicios de Pago Prestados 
por Instituciones No Financiera s indican que "el PBOC determinar á por separado, y presentar á al 
Consejo de Estado para su aprobaci ón, el ámbito de actividad de las instituciones de pago con 
inversi ón extranjera y los requisitos y niveles de inversi ón aplicables a los inversores ex tranjeros". 
El PBOC est á preparando actualmente la reglamentaci ón pertinente.  
Question  
102.  Las medidas que se mencionan en el punto 4.171 no estipulan las condiciones de acceso a 
mercado para operadores extranjeros. En el reporte se hace menci ón a que éstas se estipular án por 
separado por el Banco Popular de China,y ser án presentadas al Consejo de Estado para su 
aprobaci ón. México desea conocer ¿en qu é instrumento se estipular án dichas condiciones de acceso 
a mercado para operadores extranjeros y a partir de cuándo podr án consultarse dichas regulaciones?  
Reply  
On 21 March 2018, the People 's Bank of China issued announcement No.7 to clarify the access and 
supervision policies of foreign -funded payment institutions, and grant the comprehensive national 
treatmen t to foreign -funded institutions. Announcement No.  7 and Administration Measures for the 
Payment Service Provided by Non -Financial  Institutions (Decree of the People 's Bank of China [2010] 
No. 2, hereinafter referred to as Decree No.  2) jointly constitute the regulatory framework of 
domestic and foreign -funded payment institutions, and realize the unification of access conditions 
and regulatory polices of domestic and foreign -funded institutions.  
Announcement No.  7 stipulates that if a foreign institution intends to provide electronic payment 
service for domestic transactions and cross -border transactions within the territory of People 's 
Republic of China, it shall have the corresponding qualifications and access conditions, enjoy the 
national treatment and  obtain the payment business licen ce according to the conditions stipulated 
in Decree No. 2. The main conditions that should be provided include:  
1. Commercial  presence. Foreign institutions shall establish a foreign -funded enterprise in China 
as the main body for the applicatio n for payment of business licenc es.  
2. Payment service facilities. Foreign -funded payment institutions shall have a safe, standardized 
business system and a disaster recovery system that can independently complete the payment 
busine ss within the territory.  
3. Information storage requirements. Foreign -funded payment institutions shall abide by the 
laws of the People 's Republic of China, and personal and financial information collected and 
generated within the territory shall be store d in the territory.  
4. In addition to meeting the above requirements, foreign -funded payment institutions should 
also meet the requirements of capital strength, main investor and anti -laundering in 
Decree  No. 2. WT/TPR/M/3 75/Add.1  
 
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  Question  
103.  ¿Puede China compartir un estimado  de tiempo en el que se publicar á la reglamentaci ón para 
la participaci ón de instituciones de pago con inversi ón extranjera ?  
Reply  
Please refer to the answer of the previous question.  
Informe de China  - WT/TPR/G/375  
 
1 INTRODUCCI ÓN 
Pg. 3, párrafo  1.3 
China seguir á intensificando ampliamente el proceso de reforma, impulsando una gobernanza 
basada en las leyes en todos los ámbitos y promoviendo la modernizaci ón del sistema de gobernanza 
del pa ís y la mejora de su capacidad. Establecer á las reformas estructurales relacionadas con la 
oferta como su tarea primordial, pondr á en pr áctica la estrategia del desarrollo impulsado por la 
innovaci ón y trabajar á con tes ón para que los factores impulsores del crecimiento econ ómico sean 
de mejor calidad, m ás eficientes y m ás sólidos. Al tiempo que redobla los esfuerzos por mejorar la 
econom ía de mercado socialista, China seguir á perfeccionando el ordenamiento jur ídico socialista 
chino, en cuyo centro se encuentra la Constituci ón de China, y construir á un pa ís socialista basado 
en el imperio de la ley.   
Question  
1. ¿Podría el gobierno de China explicar de manera m ás detallada el concepto de reforma 
estructural "supply -side"?  
Reply  
The ultimate purpose of supply -side structural reform is to meet demands. Its main direction is 
improving supply quality and the fundamental method is to deepen the reform. The emphasis of 
supply -side structural reform is to liberate and develop social productive forces; to promote structure 
adjustment by means of reform; to red uce ineffective and low -end supply; to expand effective and 
middle -high end supply; to enhance the adaptability and flexibility of supply structure to changes in 
demand and increase productivity of total factors. "Eliminate overcapacity, stocking and lever age, 
reduce costs and improve weak links" are five major tasks of supply -side structural reform.  
2 NUEVA ERA, NUEVO PENSAMIENTO Y NUEVA VISI ÓN 
Pg. 4, párrafo  2.6 
China se mantendr á en la v ía del desarrollo pac ífico y tratar á de forjar un nuevo tipo de relaciones 
internacionales caracterizadas por el respeto mutuo, la equidad, la justicia y la cooperaci ón en 
beneficio de todos. Asimismo, seguir á participando de forma activa en los sistemas mundiales de 
gobernanza econ ómica y trabajando para promover u na econom ía mundial abierta y crear una 
comunidad con un futuro com ún para la humanidad. China respaldar á firmemente el sistema 
multilateral de comercio, impulsar á sin vacilar la mundializaci ón econ ómica y la liberalizaci ón y 
facilitaci ón del comer cio y las inversiones y promover á la creaci ón de zonas de libre comercio. 
Tambi én adoptar á una postura clara de oposici ón al unilateralismo y el proteccionismo. Guiada por 
el principio de defender la justicia y al mismo tiempo luchar por intereses com unes, y por los 
principios de sinceridad, honradez, afinidad y buena fe, China seguir á fortaleciendo la cooperaci ón 
con otros pa íses en desarrollo .  
Question  
2. China describe que continuar á fortaleciendo sus lazos de cooperaci ón con pa íses en v ías de 
desarrollo, ¿cuál es la posici ón que tiene M éxico frente a este inter és de China?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Chinese government has always supported competitive and reputable enterprises to go abroad, carry 
out foreign investment and participate in international cooperation and competition.  
China and Mexico are highly complementary in economy and therefore great potential of investment 
cooperation between both parties  exists . We would continue to encourage competitive and reputable 
enterprises to go abroad, actively expand Mexico  market and carry out transnational operation. 
Based on the initiative of "the Belt and Road", we would expand infrastructure cooperation and 
establish overseas economic and trade cooperation by deepening productivity cooperation so as to 
promote the devel opment of trade and industry. We require Chinese enterprises in Mexico to abide 
by the laws and regulations of Mexico and actively fulfill their social responsibilities to achieve mutual 
benefit and development.  
3 APLICACI ÓN DE UNA NUEVA VISI ÓN DEL DESARRO LLO Y ESTABLECIMIENTO DE LAS 
NUEVAS INSTITUCIONES DE UNA ECONOM ÍA ABIERTA   
Pg. 4, párrafo  3.1 
Sobre la base de la nueva visi ón del desarrollo, China est á trabajando en el desarrollo de una 
econom ía abierta en sentido m ás amplio y en m ás esferas, a un nivel  más profundo y con est ándares 
más altos, y est á agilizando la transici ón para pasar de su propia apertura a la promoci ón de la 
apertura del mundo. En 2015 China public ó directrices sobre el establecimiento de las nuevas 
instituciones de una econom ía abier ta. El objetivo general es crear nuevos mecanismos para la 
asignaci ón de los recursos del mercado, desarrollar nuevos modelos para la gesti ón de la actividad 
económica, crear un nuevo modelo de apertura completa y generar nuevas ventajas en el ámbito 
de la competencia y la cooperacin internacionales.  
Question  
3. ¿Cuáles son los avances que China ha logrado para alcanzar una economía abierta y cuándo 
espera que su economía se abra completamente a fin de ser considerada como una economía con 
características de l ibre mercado?  
Reply  
Lately, National Development and Reform Commission and Ministry of Commerce of the People's 
Republic of China jointly released Special Administrative Measures (Negative List) on Foreign 
Investment Access (2018 Edition) , greatly lifting market access and adapting its opening -up 
measures to all the foreign investors. Furthermore, the Government of China has held firm to legal 
administration of the Internet and welcomed Internet -based enterprises all over the world to make  
open and practical communications on Internet security so long as they abide by China's laws without 
prejudice to China's national interests and interests of China's consumers. All the above efforts 
indicate that China will not close its door or slow down  its opening -up.  
Question  
4. En este nuevo proceso de desarrollo de nuevas instituciones ¿cuáles son las premisas del 
gobierno Chino sobre el principio de Transparencia?  
Reply  
In recent years, China  has make efforts to strengthen the policy transparency gradually among 
governments at all levels. In March 2018, the Chinese government published a notice, indicating it 
has made further arrangement for the improvement of government bulletin in order to furthe r 
improve the government bulletin's functions on improving policy transparency.  
The notification obligation applicable to China under the WTO Agreement has been fully 
implemented. As the largest developing country, China has also made positive progress on 
information collection in the most difficult subsidy bulletin. In 2016, subsidy bulletins that China 
submitted to the WTO have achieved a major breakthrough from involving only the central subsidy WT/TPR/M/3 75/Add.1  
 
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  policies to adding local subsidy policies in. Local subsidy  policy bulletins from 2015 -2017 that would 
be submitted by this year will, for the first time, cover the whole provincial administrative areas.  
3.1 Establecimiento de nuevos mecanismos para el desarrollo del comercio sostenible , 
3.1.1 Aplicaci ón de pol íticas de importaci ón más proactivas , pg. 5, párrafo  3.3 
Desde el último examen, China ha simplificado todav ía más los procedimientos de administraci ón de 
las importaciones y ha reducido los aranceles de importaci ón. En noviembre de 2017 se hab ían 
aplicado tipos arancelarios provisionales a 152 l íneas arancelarias de art ículos de consumo, con un 
descenso medio del 50% con respecto a los tipos NMF, lo cual ha supuesto un valor de importaci ón 
anual de 10.900 millones de d ólares EE.UU. Desde el 1o de diciembre de 2017 China ha reducido 
más aún los aranceles de importaci ón de 187 l íneas arancelarias correspondientes a productos de 
consumo al nivel de ocho d ígitos del SA. Los tipos arancelarios han bajado por t érmino medio del 
17,3% al 7,7% en el c aso de los alimentos y suplementos, medicamentos, productos qu ímicos de 
uso cotidiano, ropa y calzado, sombreros y gorras, electrodom ésticos, productos culturales y 
recreativos, etc. Esta es la cuarta vez en tres a ños que China recorta los aranceles de importaci ón, 
y el n úmero de l íneas arancelarias afectadas es superior al total de los tres recortes anteriores. 
En 2017, las importaciones de China impulsaron el crecimiento de las importaciones mundiales en 
casi 2 puntos porcentuales y representaron m ás del 15% del aumento de las importaciones en todo 
el mundo. La participaci ón del pa ís en las importaciones mundiales alcanz ó el 11,1%, lo cual supone 
un nivel r écord.  
Question  
5. Para China, ¿cuál es la importancia de los Tratados de Libre Comercio en este objetivo de 
mejorar las políticas a favor de la importación en su país?  
Reply  
Up to now, China has signed 16 free trade agreements with 24 countries and regions, with an 
average zero tariff rate of more than 90%. Since China joint WTO, the service sector promised to 
open has increased from 100 to nearly 120. By reducing tariffs and mutually opening up markets, 
China and its free trade partners have reduced trade barriers and basically realized the free flow of 
products. At the same time, by the sign ing of the free trade agreement, China 's trade and investment 
policies have been consciously improved, market access has been continuously expanded, customs 
formalities have been continuously simplified, policy transparency has been obviously improved, and  
rules of origin have been further optimized, which have strongly promoted the liberalization and 
facilitation of trade and investment.  
3.1.2 Promoci ón constante de la facilitaci ón del comercio , pg. 5, párrafo  3.5 
China cumple diligentemente las obligacion es que le impone el Acuerdo. Solamente tiene 
cuatro  medidas de categor ía B, y las de categor ía A representan el 94,6% del total. China cumplir á 
su promesa de aplicar todas las medidas de categor ía B durante el per íodo de transici ón de tres 
años. 
Question  
6. Which are the Category B measures retained by China so far and which is the particular reason 
why they need more time to be implemented?  
Reply  
China's Class B Article include: Article 7 Section 6 "confirm and release average clearance time", 
Article 10 Section 4 "single window", Article 12 Section 2 "information exchange" and Article 12 
Section 6 "information offer". Relevant provisions need to be implemented under certain conditions. 
Therefore, they would be implemented after the transition period.  WT/TPR/M/3 75/Add.1  
 
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  Pg. 6, párrafo  3.6 
El 1o de julio de 2017 se empez ó a aplicar en todo el pa ís la reforma del despacho de aduana 
integrado. Se han establecido centros nacionales de prevenci ón y control del riesgo aduanero y de 
cobro y administraci ón de aranceles, y se ha empezado a aplicar a las operaciones de despacho de 
aduana un enfoque de declaraci ón única y tramitaci ón por etapas. Asimismo, se ha seguido 
avanzando en el establecimiento de la ventanilla única para el comercio internacional. Actualmente 
se encuen tra en funcionamiento una ventanilla única de formato uniforme en todos los puertos de 
entrada al pa ís. Para reforzar la transparencia, todas las aduanas chinas han introducido la 
versión 1.1 de la plataforma integrada en l ínea para empresas. En 2017, el tiempo necesario para 
el despacho de las importaciones era por t érmino medio de 15,87 horas a nivel nacional, lo cual 
supone una reducci ón del 36,85% con respecto a 2016, y el tiempo medio necesario para el 
despacho de las exportaciones era de 1,11 ho ras, esto es, un 38,24% menos que en el a ño anterior.  
Question  
7. Mexico would like to ask for further elaboration and detail on the 1.1 online platform for 
businesses is encouraged. Does it communicate somehow to the Single Window format? If so, how?  
Reply  
According to the construction goal of "single window" of China's international trade, i.e. to enable 
the applicants to access the electronic port platform by one click and submit standard documents 
and electronic information that meet all the requirements  of port management and all the 
departments related to international trade. Related department can therefore share data and 
information, implement function management through the platform and feedback the handling state 
(result) to the applicants via "sing le window". In the above -mentioned goal, China Customs is the 
most relevant department concerning port management. Business functions including customs 
declaration and transport declaration have been developed on the "single window" platform. Such 
function s can satisfy the demands of enterprises in customs declaration.  
+  About "Internet+Customs" . 
1. ++  Promoting the construction of "Internet+Customs" is the result of implementing the 
State Council's Guiding Opinions on Speeding up the Work of "Internet+Gov ernment 
Services"  and also an important part of the new generation of customs information 
system.  
2.++ As the Work Scheme of the Customs Head Office to Promote the Construction of 
"Internet+Customs" , "Internet+Customs" adopts Internet thinking. It aims to achieve 
"one account application, one window acceptance, one network handling" in customs 
services by "setting up a series of standards and constructing a platform" that covers 
all the customs businesses that the enterprises and individuals require.  
3.+++  According to the requirement of "Internet + government affairs service" by the State 
Council, all present government affairs service matters of the Customs (including goods 
declaration) shall be all handled in "Internet + Customs". Meanwhile, according to the 
requirement of international trade "single window" construction about implementing the 
State Council's "three -mutual" promotion for simplified Customs clearance construction, 
businesses involving international trade section (such as goods declaration) shall be 
incorporated into international trade "single window" to realize "one -time entry" of the 
enterprises so that they declare to administrative departments of the port respectively. 
The governments affairs service matters handled by "Internet + Custom s" are apt to 
take the advantages of In ternet technology to optimize ways and means of handling 
affairs and improve the work efficiency.  
Question  
8. Does China 's Single Window allow for interoperability between SW of trading parthers? And if 
so, which are the areas and documents allowed to interoperate?  WT/TPR/M/3 75/Add.1  
 
- 239 - 
 
  Reply  
The domestic construction of China's "single window" of international trade has developed to a 
certain stage. One of the important tasks at present is to align with the international advanced level 
to explore the interconnection, mutual communication and i nformation sharing of "single window" 
with the trade partners, especially the communication and collaboration of single windows field with 
the countries along the "the Belt and Road", and actively study the interoperability development of 
China's "single w indow" of international trade in accordance with the relevant contents of UN Center 
for Trade Facilitation and E -business (UN/CEFACT) No. 36 proposal on Single Window 
Interoperability . Therefore, interoperability of the "single window" with trade partners has always 
been an important factor to consider in the development of China's international trade "single 
window".  
3.2 Creación de un entorno de inversión más atractivo, 3.2.1 Mejora del sistema de 
inscripción en el registro para el establecimiento y la mo dificación de las empresas con 
inversión extranjera, p g. 6, párrafo  3.11 
En su 22 per íodo de sesiones, celebrado en septiembre de 2016, el Comit é Permanente del 
12 Congreso Nacional del Pueblo adopt ó la decisi ón de revisar cuatro leyes relacionadas con las  
inversiones, entre ellas, la Ley de Empresas con Inversi ón Extranjera. La decisi ón dispone que el 
establecimiento y la modificaci ón de las empresas con inversi ón extranjera que no est án sujetas a 
un procedimiento de acceso a la inversi ón extranjera se lle varán a cabo tan solo mediante la 
inscripci ón en un registro, sin necesidad de examen y aprobaci ón. Se trata de un cambio 
considerable con respecto al sistema de examen y aprobaci ón individualizados aplicado a las 
empresas con inversi ón extranjera durante más de 30 a ños. En octubre de 2016 el Ministerio de 
Comercio (MOFCOM) public medidas administrativas detalladas para su aplicaci ón, que 
posteriormente, en julio de 2017, se modificaron. En las medidas administrativas se precisa que el 
trámite de inscripci ón en el registro se aplica tambi én a las fusiones y adquisiciones de empresas 
que no tienen inversi ón extranjera, y a las inversiones estrat égicas en empresas cotizadas en China 
en sectores que no est án sujetos al procedimiento de acceso a la inversi ón y q ue no impliquen 
operaciones entre partes relacionadas. Actualmente m ás del 96% de las solicitudes de 
establecimiento y modificaci ón de empresas con inversi ón extranjera se tramitan mediante el 
sistema de inscripci ón en el registro.  
Question  
9. Con respecto a las medidas administrativas para inscripción en el registro de fusiones y 
adquisiciones de empresas, ¿podría China explicar por qué estas medidas no aplican a las fusiones 
o adquisiciones de empresas por parte de empresas extranjeras?  
Reply  
In July 2017, in order to promote the reform of foreign investment management system, and reflect 
the reform direction of decentralization, integration and optimization of service, China has made 
amendments to the Interim Measures on Modification Registration Foreign -funded Enterprises. It will 
not involve special management measures and related foreign mergers and acquisitions activities, 
and will be included in the management record.  
3.2.2 Mejora del procedimiento de aprobaci ón e inscripci ón en el registro de los proye ctos 
de inversión, p g. 6, párrafo  3.12 
En diciembre de 2016, China revis ó el Cat álogo de Proyectos de Inversi ón Sujetos a Verificaci ón y 
Aprobaci ón Gubernamental, que abarcaba 17 elementos. De los 17 elementos, 2 se asignaron a la 
tramitaci ón mediante inscripci ón en el registro, y 15 se sometieron a la verificaci ón y aprobaci ón por 
gobiernos locales. Esa era la tercera revisi ón del Cat álogo, tras las realizadas en 2013 y 2014. Como 
consecuencia de las tres revisiones, el n úmero total de proyectos sujeto s a verificaci ón y aprobaci ón 
por el Gobierno central se ha reducido considerablemente, en un 90%. Despu és de esta última 
revisi ón, en lo que se refiere a la inversi ón extranjera (aparte de los sectores en los que la inversi ón 
extranjera est á prohibida y a quellos en los que se aplica el mismo procedimiento de verificaci ón y 
aprobaci ón, ya se trate de proyectos de inversi ón nacional o extranjera), los proyectos est án sujetos 
a trámites de verificaci ón y aprobaci ón con arreglo a distintas categor ías. Los proy ectos incluidos en WT/TPR/M/3 75/Add.1  
 
- 240 - 
 
  la categor ía restringida del Cat álogo de Sectores para la Orientaci ón de la Inversi ón Extranjera, a 
los que corresponde una inversi ón total de 300 millones o m ás, se deben someter a verificaci ón y 
aprobaci ón al nivel del Gobierno central ; de ellos, los que representen una inversi ón total, igual o 
superior a 2.000 millones se deben someter al Consejo de Estado. Los proyectos incluidos en la 
categor ía restringida del Cat álogo de Sectores para la Orientaci ón de la Inversi ón Extranjera a los 
que corresponde una inversi ón total de menos de 300 millones se deben someter a verificaci ón y 
aprobaci ón al nivel del gobierno provincial. Los dem ás proyectos con inversi ón extranjera est án 
sujetos al tr ámite de inscripci ón en el registro. En febrero y abril de 2017 entraron en vigor medidas 
de reglamentaci ón y de aplicaci ón relativas a los tr ámites de aprobaci ón e inscripci ón en el registro 
de los proyectos de inversi ón de empresas.  
Question  
10. Con respecto a los proyectos con inversión extranjera, ¿puede explicar China si los montos de 
inversión definidos para el nivel de verificación y aprobación obedecen a algún lineamiento o 
estándar internacional o si estos se modifican por el sector al que pertenecen los proyectos?  
Reply  
At present, foreign investmen t projects are approved and managed by foreign investment in the 
area of non -prohibited investment. Among them, projects above than 300 million dollars are 
approved by the investment department of the State Council, and the projects below 300 million 
dollars are approved by the provincial government. China continuously pushes forward the reform 
of foreign investment management system, and the general trend is to decentralize the approval 
authority to the local governments, and narrow the scope of approval.  
Question  
11. Non-preferential rules of origin are used to: apply the MFN tariff rate; ensure the origin of 
goods subject to anti -dumping, countervailing and safeguard measures; ensure that import quotas 
and tariff quota limits are imposed on specific countries; and det ermine the origin of imported goods 
purchased by the Government.Which are the origin criteria used?  
Reply  
The applied origin criteria include: wholly -obtained criterion, TFN change criterion, value -added 
criterion and processing procedures criterion.  
3.3 Apoyo a la cooperaci ón en materia de salidas de inversión directa  para conseguir  
beneficios  mutuos y resultados  ventajosos  para todos en los pa íses y regiones  receptors , 
3.3.1 Impulso de la reforma  del sistema de administraci ón de la inversi ón en el extran jero, 
pg. 9, párrafo  3.21 
En agosto de 2017, la Comisi ón Nacional de Desarrollo y Reforma (NDRC), el MOFCOM, el Banco 
Popular de China y el Ministerio de Relaciones Exteriores publicaron directrices conjuntas sobre c ómo 
invertir en el extranjero, con lo que indicaron al mercado cu áles son las actividades de inversi ón en 
el extranjero que se alientan, se restringen y se proh íben. En diciembre de 2017, la NDRC revis ó y 
public ó las medidas para la administraci ón de proyectos de inversi ón de empresas en el ex tranjero, 
en las que se estableca que los proyectos de inversi ón en el extranjero de car ácter sensible estaban 
sujetos a la verificaci ón y aprobaci ón de la NDRC y los proyectos no sensibles quedaban sujetos al 
requisito de inscripci ón en el registro. Los p royectos de las empresas que dependen directamente 
del Gobierno central y los proyectos con una inversi ón china no inferior a 300 millones de 
dólares EE.UU. tienen que inscribirse ante la NDRC. Los proyectos con una inversi ón china de menos 
de 300 millones  de dólares han de inscribirse ante la Comisi ón Nacional de Desarrollo y Reforma del 
gobierno provincial del lugar donde est registrada la empresa. En febrero de 2018, la NDRC public ó 
el cat álogo de proyectos sensibles. Adem ás, en diciembre de 2017 la NDRC  y el MOFCOM publicaron 
conjuntamente el c ódigo de conducta para la inversi ón y la actividad de las empresas privadas en el 
extranjero.  WT/TPR/M/3 75/Add.1  
 
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  Question  
12. ¿Podría explicar China cuáles son los criterios para alentar, restringir y prohibir las actividades 
de inversión en el extranjero de empresas privadas?  
Reply  
For the enterprises to invest abroad, the Chinese government adheres to the principle of enterpris e 
entity, market orientation, business principles and international practices, and will not treat them 
differently for the nature of business.  
China actively promotes the construction of an open world economy and encourages private 
enterprises to conduct mutually beneficial overseas activities. At the same time, in accordance with 
international practice, it also provides necessary hints about the security risks of foreign investment 
destinations to the relevant enterprises.  
In 2017, the General Office of the State Council forwarded the guiding opinions of the National 
Development and Reform Commission, the Ministry of Commerce, the People's Bank of China and 
the Ministry of Foreign Affairs on Further Directing and Regulating the Direction of Overseas 
Inves tments (State Office [2017] No. 74). The guiding opinions were made clear in the direction of 
"encouraging development plus negative list" to guide and standardize the direction of investment 
abroad, clarify to encourage, restrict and prohibit three types of overseas investment activities. It 
aims to promote the rational and orderly development of foreign investment activities, prevent and 
respond to risks, and promote the sustainable and healthy development of foreign investment, and 
realize mutual benefit  and common development with the host country.  
With regard to encouraging foreign investment, it is mainly to support domestic and qualified 
enterprises to actively and steadily carry out foreign investment activities, promote the construction 
of "one bel t, one road", deepen international cooperation and promote upgrading of industrial quality.  
With regard to the restrictions on foreign investment , it is mainly to restrict domestic enterprises 
from carrying out overseas investment which is inconsistent wit h the national foreign policy of 
peaceful development, mutual benefit and win -win opening up strategy and macro control policies.  
With regard to the prohibition of overseas investment, it is mainly to prohibit domestic enterprises 
from participating in ove rseas investments, which may endanger or may jeopardize national interests 
and national security.  
3.4 Refuerzo de la protecci ón de los derechos de propiedad intelectual (DPI) , 3.4.2 Mejora 
constante de la legislaci ón destinada a proteger los DPI , pg. 10, párrafo  3.26 
En marzo de 2017, la primera sesi ón del 13o Congreso Nacional del Pueblo aprob ó las disposiciones 
generales del C ódigo Civil, en virtud de las cuales los secretos comerciales se consideran objetos de 
propiedad intelectual que deben ser prot egidos. En la Ley de Represi ón de la Competencia Desleal 
enmendada en noviembre de 2017 se redefinen los secretos comerciales, se ampl ía el alcance del 
concepto de infracci ón de secretos comerciales y se endurecen las sanciones administrativas para 
los infractores. Tambi én se est án modificando la Ley de Patentes y la Ley de Derecho de Autor.  
Question  
13. ¿Existe en alguna de las disposiciones que se mencionan en este p árrafo "The General 
Provisions of the Civil Law " o en "The Law against Unfair Competitio n" excepciones a la obligaci ón 
de no revelar secretos comerciales? De ser el caso, ¿Cuáles son dichas excepciones?  
Reply  
General Provisions of Civil Law stipulates the basic principles of civil activities for civil subjects. The 
main civil subjects should  follow the principle of fairness, the principle of honesty, uphold honesty, 
abide by promises, should not violate the law, and should not violate the public order and good 
customs. If there is a conflict between the rights of the obligee in the trade secr ets and the basic 
principles of the general principles of civil law, there may be exceptions to the disclosure.  WT/TPR/M/3 75/Add.1  
 
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  3.4.3 Fortalecimiento constante de la protecci ón jur ídica de los DPI , pg. 10, párrafo  3.28 
Ha proseguido la reforma relativa a la sustanciaci ón de las causas relacionadas con los DPI. Desde 
el establecimiento de los Tribunales de Derechos de Propiedad Intelectual en Beijing, Shangh ái y 
Guangzhou en 2014, se han tramitado m ás de 60.000 causas relacionadas con los DPI. En julio de 
2016, el Tribun al Supremo del Pueblo inici ó la reforma de la sustanciaci ón de las causas relacionadas 
con los DPI para que todos los tipos de causas referentes a DPI -civiles, administrativas y penales - 
fueran tramitadas por una misma divisi ón de un tribunal. Desde 20 17, el Tribunal Supremo del 
Pueblo ha aprobado el establecimiento de divisiones especiales encargadas de las causas 
relacionadas con DPI en los Tribunales del Pueblo de Nanjing, Suzhou, Wuhan, Chengdu, Hefei y 
Ningbo. En febrero de 2018, el Tribunal Suprem o del Pueblo indic ó adem ás que se ten ían que agilizar 
las gestiones para modernizar tanto el sistema de sustanciaci ón como la capacidad en relaci ón con 
los casos referentes a los DPI.  
Question  
14. ¿El tribunal competente que revisa todos los casos de prop iedad intelectual (civil, 
administrativo y penal) puede determinar tanto si hubo o no una violaci ón a un derecho de propiedad 
intelectual y determinar el monto de daos y perjuicios en un mismo procedimiento judicial? 
Agradeceremos mayores detalles sobre la  reforma y las facultades de los tribunales en materia de 
propiedad intelectual.  
Reply  
Courts at all levels having jurisdiction over intellectual property cases can make provisions on 
whether infringement on intellectual property rights is involved or not and the amount of 
infringement.   
On 6 June 2014, General Secretary Xi Jinping chaired the third meeting of the Central Committee 
for the comprehensively deepening reform, reviewed and approved the Proposal on the 
Establishment of an Intellectual Property C ourt. On 31 August 2014, the tenth session of the 
Standing Committee of the 12th National People's Congress adopted the decision on the 
Establishment of Intellectual Property Courts in Beijing, Shanghai, and Guangzhou. On 
6 November  2014, the intellectual property court of Beijing was formally established, and the 
intellectual property court of Shanghai was e stablished on 28 December 2014. On 
16 December  2014, the Guangzhou intellectual property court was established . 
4 LOGRAR UN CRECIMIENTO COMPARTIDO MEDI ANTE EL DEBATE Y LA COLABORACI ÓN Y 
CONSTRUIR UNA EXONOM ÍA MUNDIAL ABIERTA  
4.1 Apoyo firme a la mundializaci ón econ ómica y creaci ón de una nueva plataforma para 
la cooperaci ón internacional , 4.1.1  Promoci ón activa de la cooperaci ón internacional con 
la Iniciativa "Un Cintur ón, una Ruta" , pg. 13, párrafo  4.2 
En el oto ño de 2013, el Presidente Xi Jinping propuso establecer en Kazajstn e Indonesia, 
respectivamente, el Cintur ón Econ ómico de la Ruta de la Seda y la Ruta Martima de la Seda del 
Siglo XXI, lo qu e se conoce como Iniciativa "Un Cintur ón, una Ruta". M ás tarde, China public ó un 
plan de acci ón sobre la iniciativa propuesta, con el t ítulo Visi ón y Medidas Propuestas para el 
Establecimiento Conjunto del Cintur ón Econ ómico de la Ruta de la Seda y la Ruta  Martima de la Seda 
del Siglo XXI, y en mayo de 2017 celebr ó el primer Foro de Cooperaci ón Internacional para la 
Iniciativa "Un Cintur ón, una Ruta". En la actualidad, la puesta en pr áctica de "Un Cintur ón, una Ruta" 
cuenta con el fuerte apoyo y la particip ación activa de m ás de 100 pa íses y organizaciones 
internacionales de todo el mundo. La Iniciativa tiene su origen en China, pero ofrece oportunidades 
y beneficios al mundo entero.  
Question  
15. Sobre la participaci ón de m ás de 100 pa íses en la iniciativa One B elt One Road ¿podría China 
explicar el mecanismo de participaci ón, es decir, se cuenta con un acuerdo marco para adherirse a 
la iniciativa o cu ál es el documento que permite a un pa ís beneficiarse de la misma?  WT/TPR/M/3 75/Add.1  
 
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  Reply 
Jointly constructing "the Belt and Road" imitative and adhering to the principles of consultation, joint 
development and sharing either are the China's Plan maintaining and facilitating the open world 
economic prosperity, and is also the cooperation platform that various countries build new  pattern 
of global economic development and governance. Since "the Belt and Road" initiative has been 
proposed, China has signed over 100 cooperation documents with more than 90 countries and 
international organizations through equal negotiation. with the growing passion for recognizing, 
supporting and participating in "the Belt and Road" and the consensuses by the international 
community.  
Jointly constructing "the Belt and Road" is an open and inclusive cooperation initiative without 
country limitation and  closed mechanism and all countries or economic entities with willingness can 
joint it to become the supports, constructors and beneficiaries of "the Belt and Road". We welcome 
more countries, international and local organizations to consecutively enrich a nd perfect the 
cooperation content and methods of "the Belt and Road", jointly develop the schedule and road map 
for achieving win -win development by means of policy alignment (signing cooperation documents), 
planning alignment (developing cooperation plan s), platform alignment (building cooperation 
platforms) and project alignment (carrying out cooperation projects).  
4.1.2 Preparaci ón activa de la Primera Exposici ón Internacional de Importaci ón de China , 
pg. 14, párrafo  4.6 
La Exposici ón Internacional de I mportaci ón de China, primera exposici ón del mundo a gran escala 
centrada en la importaci ón, constituye una importante iniciativa de pol ítica y refleja el compromiso 
adoptado espont áneamente por China, de continuar abriendo su mercado al mundo. El evento cr ear 
una nueva demanda de crecimiento econ ómico mundial y dar a este un nuevo impulso. Al crear una 
plataforma que propugna la inclusividad, la apertura y la cooperaci ón y ofrecer productos p úblicos 
que promueven un desarrollo mundial inclusivo y beneficios o para todos, la Exposici ón tambi én 
pondr á en marcha un nuevo modelo de cooperaci ón entre China y las organizaciones internacionales. 
China espera con entusiasmo la participaci ón activa de los Miembros y de la Secretar ía de la OMC 
en la Expo y en el Foro Internacional sobre Comercio de Hongqiao.  
Question  
16. ¿Cuáles son las características del "nuevo modelo de cooperación entre China y las 
organizaciones internacionales " que pondrá en marcha la CIIE?  
Reply  
The international trade fair held in 2018 invited int ernational organizations such as the World Trade 
Organization, United Nations Conference on Trade and Development, and the United Nations 
Industrial Development Organization as the cooperative unit. The International Trade Center, as a 
supporting unit, par ticipated in the exhibition and the Hongqiao Economic and Trade Forum. 
International organizations will focus on the three topics of the forum "trade and openness", "trade 
and innovation", "trade and investment", and discuss the topics about the liberaliza tion and 
facilitation of trade and investment, the construction of an open world economy, the promotion of 
the growth of trade innovation and the sustainable development of trade and investment, and 
provide intelligence and technology support for the forum . 
In addition, the relevant international agencies also actively build up platforms for the participation 
of global SMEs in China's international import Expo. The international trade center will organize and 
support 100 SMEs from worldwide to participate i n the exhibition, to help them access the overseas 
market and enhance their competitiveness.  
The WTO, UNCTAD and UNIDO have confirmed their participation as cooperation agencies for the 
China International Import Expo (CIIE) and the Hongqiao International Economic and Trade Forum 
to be held in 2018. The International Trade Centre (ITC) will also p lay an important role as a 
supporting agency. All these international organizations will offer their expertise and technical 
supports for the Forum, whose topics will focus on trade and opening, trade and innovation and 
trade and investment. They will also  be involved in the discussions on trade and investment WT/TPR/M/3 75/Add.1  
 
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  liberalization and facilitation, building an open world economy, boosting trade innovation and growth 
and the acceleration of sustainable development of trade and investment.  
Besides, some internatio nal organizations will also serve as platforms to encourage world -wide SMEs 
to participate in the CIIE. For example, ITC will organize and support 100 SMEs globally to attend 
CIIE, to help them access overseas markets and enhance their competitiveness.  
4.2 Firme defensa del sistema multilateral de comercio y esfuerzos por transmitir la 
sabidur ía y la fortaleza de China , 4.2.3 Cumplimiento riguroso de las obligaciones y los 
compromisos y apoyo a las actividades cotidianas de la OMC , pg. 16, párrafo  4.18 
En general, las obligaciones de notificaci ón en el marco de diversos Acuerdos de la OMC aplicables 
a China se han cumplido. Tambi én se ha logrado progresar positivamente en la notificaci ón de 
subvenciones, en la que la recopilaci ón de informaci ón ha sido duran te mucho tiempo un tremendo 
obstáculo para China, el mayor pa ís en desarrollo. Si bien antes la notificaci ón abarcaba solamente 
las subvenciones al nivel del Gobierno central, ahora se incluyen las subvenciones locales. Est á 
previsto que, m ás adelante, aba rque todas las regiones administrativas a nivel provincial.  
Question  
17. ¿Nos podría informar si cuenta con un sitio web que exhiba los reportes sobre subsidios 
vigentes a nivel nacional y local y si el mismo puede ser consultado en cualquiera de los idiomas 
oficiales de la OMC?  
Reply  
Please go to  the WTO official website for China's subsidy notifications for details . 
5 PROFUNDIZACI ÓN DE LA REFORMA EN TODOS SUS ASPECTOS, DEFENSA DEL IMPERIO 
DE LA LEY Y DESARROLLO DE UNA ECONOM ÍA MODERNIZADA  
5.1 Continuaci ón de la reforma estructural del lado de la oferta y fortalecimiento de la 
capacidad de innovaci ón de la econom ía, 5.1.4 Intensificaci ón decidida de la prevenci ón y 
el control de la contaminaci ón y compromiso a favor de una civilizaci ón ecol ógico, pg. 19, 
párrafo  5.5 
China ha comprendido perfectamente que unas aguas cristalinas y  unas monta ñas frondosas son 
activos de valor incalculable y se ha centrado en la prevenci ón y el control de la contaminaci ón con 
una determinaci ón sin precedentes y grandes esfuerzos por fortalecer la protecci ón ecol ógica y 
ambiental. Se han adoptad o medidas en érgicas para hacer frente a la contaminaci ón atmosf érica. 
Se han logrado progresos alentadores en el establecimiento de un mercado nacional para la 
compraventa de derechos de emisi ón de carbono. Se han seguido haciendo progresos en la 
conse rvación de la energ ía y la reducci ón de las emisiones en industrias clave y se han optimizado 
más aún las estructuras energ éticas. China ha reforzado la prevenci ón y el control de la 
contaminaci ón de las aguas en las cuencas fluviales y las zonas m arítimas m ás importantes y ha 
puesto en marcha proyectos importantes de protecci ón y restauraci ón del medio ambiente. Entre 
2013 y 2017, el 71% de todas las centrales de generaci ón de energ ía a partir de carb ón de China 
consiguieron un nivel de emis iones ultrabajo y la proporci ón de consumo de carb ón se redujo en 
8,1 puntos porcentuales, mientras que la de consumo de energ ía limpia aument ó en 6,3 puntos 
porcentuales.  
Question  
18. In which ways has China progressed regarding the establishment of a nat ional market for the 
trading of carbon emission rights? What forceful measures have been taken to tackle air pollution?  
Reply  
China has explored carbon emission right trading pilot in many provinces and cities. The 
State department in charge of climate change response has printed and distributed Interim Measures WT/TPR/M/3 75/Add.1  
 
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  for the Administration of Carbon Emission Right Trading and issued guides for emission accounting 
report of multiple industries and enterprises.  
Under the effect o f carbon market mechanism, enterprises improve energy utilization efficiency and 
reduce carbon emission by optimizing energy structure, adopting technologies of energy saving and 
low carbon and new energy, carrying out delicacy management. Meanwhile, they will certainly 
reduce pollutant emission from the sources effectively. Compared to administrative means, carbon 
trading is a market -based mechanism providing enterprises with more options, which enables 
enterprises to practically control the pollutant emis sion and effectively decrease the cost of emission 
reduction and stimulate the internal motivation of emission reduction at the same time so that 
pollution control will be more efficient and sustainable.  
Ten Measures for the Prevention and Control of Air P ollution  has been issued to determine key tasks 
and complete the proposed air quality improvement goals. In addition, specialized personnel are 
assigned to intensify supervision and inspection of air pollution control in key cities.  
5.2 Aplicaci ón de una  estrategia  coordinada  para el desarrollo regional y la revitalizaci ón 
del medio rural y mitigaci ón focalizada de la pobreza , 5.2.3 Aceleraci ón de la 
modernizaci ón de la agricultura y las  zonas  rurales y promoci ón de nuevos  motores de 
crecimiento  para el des arrollo rural , pg. 20, párrafo  5.9 
Las cuestiones relacionadas con la agricultura, las zonas rurales y la poblaci ón rural han sido siempre 
el elemento central de la labor del Gobierno chino. En enero de 2018, China public ó directrices para 
la aplicaci ón de la estrategia de revitalizaci ón del medio rural. Se propone impulsar la reforma 
estructural de la agricultura del lado de la oferta y ajustar el esquema de desarrollo orientado a la 
producci ón para que est é más centrado en la calidad y el desarrollo respetuoso con el medio 
ambiente.  Se deben mejorar la ciencia y la tecnolog ía agropecuarias, promover m ás aún la 
mecanizaci ón integral y fortalecer las infraestructuras y servicios p úblicos en las zonas rurales. China 
profundizar á más aún la reforma rural, incluyendo el sistema de  tierras rurales en un enfoque global. 
Se seguir án perfeccionando las pol íticas y medidas de apoyo a la agricultura para establecer un 
mecanismo que cuente tanto con incentivos como con restricciones, que est é orientado a la 
protecci ón del medio ambien te y promueva el uso racional de los recursos agr ícolas y la protecci ón 
del medio ambiente.  
Question  
19. What green -oriented agricultural measures would be applied for the protection of the 
environment, given the deepening of China 's rural reform?  
Reply  
In combination with the structural reform of agricultural supply side, the Chinese government has 
made adjustments to the mode of agricultural development, changing from the pursuit of the 
quantity to the pursuit of quality, optimizing the distribution of ag riculture, concentrating the 
production into the dominant areas, reducing the environmental pressure on the non -dominant 
producing areas, saving the resources by vigorously promoting the water saving farmers, 
strengthening the disposal and recycling the ag ricultural wastes such as garbage and excrement, 
reducing environment pollution, and promoting green production and lifestyle.  
5.3 Promoci ón de la modernizaci ón del sistema y la capacidad de gobernanza , 
5.3.1  Adopci ón de las enmiendas de la Constituci ón, pg. 21, párrafo  5.10 
El 11 de marzo de 2018, la primera sesi ón del 13 Congreso Nacional del Pueblo aprob ó las Enmiendas 
a la Constituci ón de la Rep ública Popular China. Esas Enmiendas introdujeron en la Constituci ón el 
pensamiento de Xi Jinping sobre el soc ialismo con caracter ísticas chinas para una nueva era, junto 
con expresiones como "hacer de China un gran pas socialista moderno que sea pr óspero, poderoso, 
democr ático, civilizado, armonioso o bello" y "promover la construcci ón de una comunidad con un 
futuro comn para la humanidad". En virtud de las Enmiendas tambi én se confiri ó la condici ón jurídica 
de órgano estatal a la Comisi ón Nacional de Supervisi ón. Esta enmienda constitucional es un paso 
importante de China hacia una gobernanza basada en las leyes en todos los ámbitos, que fortalecer WT/TPR/M/3 75/Add.1  
 
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  más aún la autoridad de la Constituci ón, har á que las personas la conozcan mejor, garantizar su 
observancia eficaz y le dar á una mayor dimensi ón como ley fundamental de gobernanza.  
Question  
20. Sobre el concepto de socialismo con características chinas ¿podría referir una ley o reglamento 
en materia económica que defina el concepto de características chinas? De no existir ¿podría definir 
o enunciar un listado que describa "las características chi nas" que impactan en materia económica?  
Reply  
The Constitution clearly states that the leadership of the Communist Party of China is the most 
intrinsic feature of socialism with Chinese characteristics. The Company Law stipulates that according 
to the pro visions of the Constitution of the Communist Party of China, party organizations should be 
established in enterprises and carry out party activities. Strengthening party leadership and 
improving corporate governance integrate with each other. Party organiz ations of the enterprises 
support the board of shareholders, the board of directors, the board of supervisors and the 
executives to perform their duties according to law. Pre -study and discussion on major issues in 
state-owned enterprises by party organiza tions are held not to replace the board of directors or the 
executives to exercise their functions, but to promote the enterprises to operate in compliance with 
the laws and ensure that business decisions meet national laws and regulations. Party organizat ions 
play their role in state -owned enterprises with the aim to improve the effectiveness and 
competitiveness of state -owned enterprises, which is consistent with the value orientations of 
corporate governance bodies and shareholders.  
5.3.4 Creaci ón de un entorno de mercado propicio a la competencia leal para todos los 
tipos de entidades , pg. 22, párrafo  5.15 
Actualmente China est á introduciendo la lista negativa de acceso al mercado para todo el pa ís. En 
marzo de 2016, la NDRC y el MOFCOM publicaron el Proyecto de Lista Negativa para el Acceso a los 
Mercados (versi ón provisional), en el que se especificaban los sectores, ámbitos y actividades 
empresariales respecto de los cuales la inversi ón y la actividad comercial en China estaban 
prohibidas (96 casos)  o restringidas (232 casos). La aplicaci ón experimental de la lista negativa para 
el acceso a los mercados se puso en marcha en cuatro municipios y provincias de Tianjin, Shanghi, 
Fujian y Guangdong. En 2017 se ampli ó la aplicaci ón experimental a otros 11 municipios y provincias 
que dependen directamente del Gobierno central: Liaoning, Jilin, Heilongjiang, Zhejiang, Henan, 
Hubei, Hunan, Chongqing, Shichun, Guizhou y Shaanxi. En 2018 la lista negativa de acceso al 
mercado se aplicar en todo el pa ís. En este momento es objeto de una revisi ón intensiva.  
Question 
21. ¿Se tiene previsto un periodo de transici ón para la entrada en vigor de la lista negativa de 
acceso a mercado o su vigencia ser autom ática a nivel nacional una vez que se publique?  
Reply  
In 28 June 2018, the State Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Management Measures for Foreign Investment Access (the Negative List) 
(2018 Edition ), which was implemented since 28 J uly 2018.  
Question  
22. Las listas ne gativas para el acceso nacional de la inversión extranjera, ¿en qué sectores se 
enfocan? y ¿cuáles son las consecuencias esperadas derivadas de su implementación?  
Reply  
On 28 June 2018, the State Development and Reform Commission and the Ministry of Comme rce 
jointly issued the Special Management Measures for Foreign Investment Access (the Negative List) 
(2018 Edition). The negative list was mainly aimed at agriculture, forestry, animal husbandry, 
fisheries, mining, manufacturing, electricity, heat, gas and  water production and supply, wholesale WT/TPR/M/3 75/Add.1  
 
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  and retail, transportation, warehousing and postal services, information transmission, software and 
information technology services, finance, leasing and business services, science and technology 
services, water, env ironmental and public facilities management, education, health and social work, 
culture, sports and entertainment industries. In 2018, the negative list of foreign investment was 
launched in 22 fields. The number of restrictive measures was reduced from 63  to 48, decreasing 
by about 1/4.  
Pg. 22, párrafo  5.16 
Se ha seguido progresando en la reforma de las empresas estatales. Se ha acelerado la reforma de 
las empresas de propiedad mixta, se ha perfeccionado la estructura de la gobernanza empresarial 
de las empresas estatales, se ha establecido el sistema para informar al Comit é Permanente del 
Congreso Nacional del Pueblo sobre las situaciones de gesti ón de los activos pblicos y se ha mejorado 
la transparencia en la gesti ón de los activos p úblicos. A fines de  2016 m ás del 68% de las filiales de 
las empresas supervisadas por la Comisi ón de Supervisi ón y Administraci ón de Activos Estatales 
(SASAC) ya eran de propiedad mixta. Entre 2013 y 2017 se reorganizaron 34 empresas supervisadas 
por la SASAC.   
Question  
23. ¿Cuántas empresas pueden clasificarse como "empresas estatales", de "propiedad mixta y 
privadas"?  
Reply  
Deepen State -owned enterprises reform. Accelerate the reform of diversified ownership, further 
improve legal person governance structure of state -owned enterprises, establish the system that 
reports on management of state -owned assets to Standing Committee of the National People's 
Congress and increase the transparency of state -owned assets management. At the end of 2016, 
more than 68% of the subsidiary e nterprises in the central enterprises supervised by State -owned 
Assets Supervision and Administration Commission of the State Council had realized diversified 
ownership. From 2013 to 2017, 34 central enterprises supervised by State -owned Assets Supervision  
and Administration Commission of the State Council had been restructured.  
Pg. 22, párrafo  5.20 
China ha seguido esforz ándose por mantener un sistema de mercado equitativo y competitivo. En 
junio de 2016 China public ó directrices sobre el establecimiento  de un mecanismo de examen de la 
competencia leal para el sistema de mercado. Este mecanismo exige que las autoridades y sus 
instituciones lleven a cabo ex ámenes de la competencia leal al formular pol íticas y medidas y eviten 
adoptar pol íticas o medidas  que eliminen u obstaculicen la competencia, con el fin de que el sistema 
de mercado en todo el pa ís esté unificado y sea abierto y competitivo.  
Question  
24. ¿Cómo se ha llevado a cabo la implementación de las directrices emitidas para establecer un 
mecanis mo de revisión de la competencia leal para el sistema de mercado? ¿Cuáles han sido sus 
resultados después de casi dos años de que fueron emitidas?  
Reply  
In order to standardize relevant government actions and prevent policies and measures eliminating 
or restricting competition from being issued, the State Council issued Opinions on  Establishing Fair 
Competition Inspection System in the Construction of Mark et System (GF [2016] No. 34) in 
June 2016 to require local governments and their subordinate departments to review the competition 
fairness of relevant policies and measures during the process of development so as to avoid problems 
of exclusion and imitati on of competition, comparing fair competition standards. China's 
anti-monopoly law enforcement agency has investigated more than 200 administrative monopoly 
cases.  WT/TPR/M/3 75/Add.1  
 
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  Pg. 23, párrafo  5.21 
En noviembre de 2016 se publicaron las directrices para la mejora del s istema de protecci ón de los 
derechos de propiedad y la protecci ón de esos derechos en consonancia con las leyes. Hay que 
seguir mejorando el sistema de protecci ón de los derechos de propiedad con la equidad como 
principio fundamental, a fin de proteger jurídicamente los derechos e intereses de las entidades 
económicas, cualquiera que sea su r égimen de propiedad, en igualdad de condiciones. En 2017 se 
enmend ó la Ley de Represi ón de la Competencia Desleal para incluir en ella nuevas disposiciones de 
lucha contra los comportamientos contrarios a la competencia por medios t écnicos en Internet, y 
redefinir el concepto de secreto comercial.  
Question  
25. En relación con las modificaciones realizadas a la Ley contra la Competencia desleal en 
noviembre de 2017,  en donde se incluyeron nuevas disposiciones contra los comportamientos 
anticompetitivos a través de medios técnicos en Internet, ¿podrían brindar mayor información sobre 
dichas modificaciones?   
Reply  
Law of the PRC against Unfair Competition  has been revised and passed by Standing Committee of 
the National People's Congress on 4 November 2017 and has been implemented since 
1 January  2018. In terms of unfair competition on the Internet, Article 12 has been added, which 
stipulates that the busi ness operators shall abide by the provisions of this law when they use Internet 
to engage in production and business operations. The business operators shall not use technical 
means to perform acts that obstruct or disrupt the normal operation of network p roducts or services 
lawfully provided by other business operators through affecting user selection or other ways and 
three specific acts are listed.  WT/TPR/M/3 75/Add.1  
 
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  JAPAN  
Report by China  - WT/TPR/G/375  
2 NEW ERA, NEW THOUGHT AND NEW VISION  
Page 3, paragraph 2.4  
Question 1  
According to the report by the Government, China described that the core issue of deepening reform 
is to "properly handle the relationship between the government and the market, so that the market 
plays the decisive role in resourc e allocation, and the government plays its role better". What is 
China's view of how the government should play its role with regard to the resource allocation? Does 
China plan to change the manner and the extent of its government involvement in the resour ce 
allocation via various industry plans etc. by central and provincial governments?  
Reply  
After forty years of China 's adoption of reform and opening up policy, Chinese market economy with 
socialist characteristics has been improved continuously and our p ositioning of markets role has also 
changed from subordinate to basic to decisive now. This shows that the Chinese government stays 
committed to the reform of the socialist market economy and attaches greater importance to the 
role of the market in resourc e allocation. On the 19th CPC National Congress, China made it clear 
the priorities of perfecting socialist economic institutions. We require that the economic reform must 
focus on improving the property right system and market -oriented allocation of facto rs to allow the 
property right institution to serve as an effective incentive, promote free flow of production factors, 
establish a flexible price reaction system, encourage fair and orderly competition and survival of the 
fittest for enterprises.  
The annual plan of national economy and social development is the annual work plan to implement 
the national development strategy. The annual plan focuses on developmental goals, orientation of 
macroeconomic policies and main tasks of the year. In particular, indicators related to people 's life, 
public services and environmental protection are binding while most of the other indicators in the 
annual plan are expectational. With these indicators, policies including the government budget can 
better guide and coor dinate efforts in different fields.  
Page 4, paragraph 2.4  
Question 2  
The report by the Government states "reform of the government administration system and the 
judicial system will be advanced, and systems for applying checks and oversight over the exerci se 
of power will be further improved." Could China provide information on details of such reform and 
improvement planned by the Government of China?  
Reply  
Since the 19th CPC National Congress, China  has been consistently deepening reforms to streamline 
administration, delegate powers, improve regulation, and optimize  services. We have sped up efforts 
to transform government functions, reduce micromanagement and direct intervention, and focus 
more on improv ing macro regulation, market regulation, and public services. Over the past five 
years, the number of items subject to approval by State Council offices and departments has been 
slashed by 44 %, the practice of non -administrative approval has been completely put to a stop, the 
number of business investment i tems subject to central government approval has been cut by 90 %, 
intermediary services needed for obtaining government approval have been cut by 74 %, and the 
requirements for professional qualification approval and accreditation have been significantly 
reduced. The number of items for which central government sets the prices has been cut back by 
80%, and local government -priced items have been cut down by over 50 %. Comprehensive reforms 
have swept the business system, including business and capital registra tion, reducing the time it 
takes to start a business by over a third. We have developed new and better ways of conducting WT/TPR/M/3 75/Add.1  
 
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  compliance oversight, and introduced a new model of oversight combining randomly selected 
inspectors who inspect randomly selected ent ities and the prompt release of results. These efforts 
have made regulation more effective and impartial. We have rolled out the Internet Plus Government 
Services model and adopted measures such as the one -stop service model. Thanks to the above 
reforms, t he business environment has consistently improved, the market is more energized, and 
people can access government services more easily.  
Page 4, paragraph 2.4  
Question 3  
According to the report by the Government, China described that it will "improve the Constitution -
centred Chinese socialist system of laws". What is China's understanding of the characteristics of 
"socialist system of laws" in comparison with law systems of non -socialist countries? How does China 
specifically plan to improve the "Constitut ion-centered Chinese socialist system of laws"?  
Reply   
1.  The characteristics of the Chinese socialist system of laws. (1) The socialist system of laws 
shows that the leadership of CPC, people 's being masters of the country and law -based governance 
are in herently compatible. (2) China is and will be for a long time in the primary stage of socialist 
society. Based on that, the socialist system of laws helps to solve practical problems China faces in 
this stage. (3) The socialist system of laws is the produc t of combining Chinese tradition of rule of 
law, the best practices of other civilizations and institutional innovation. (4) The socialist system of 
laws is formed by translating experience gained after the founding of the People 's Republic of China 
and es pecially after the reform and opening up into laws and institutions through legislative work. 
And the system will be constantly updated to respond to new developments in the reform and 
opening up and meet the need for economic and social development and la w-based governance.  
2.  How to improve the Constitution -centered Chinese socialist system of laws. We will implement 
the legislative plan and legislative work plan of the standing committee of the NPC and the legislative 
work plan of the State Council. We will continue improving the Constitution and its related laws, civil 
and business laws, administration laws, economic laws, social laws, criminal laws, litigation and 
non-litigation procedure laws to make the system more complete, scientific, rule -based an d effective.  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1 Setting new mechanism for sustainable trade development , page 5, paragraph 3.6   
Question 4  
With regard to customs clearance and quarantine, there is regional difference at a system level and 
in setting. Delays caused by system bugs also occur frequently, which is the obstacle for the 
application process. In addition, companies suffer damage as each customs office makes different 
decisions on tariff cla ssification numbers some offices delay their procedure apparently arbitral. 
Could China share with us the list of things to do for improving the system and ensuring transparency 
and consistency in customs procedures and the schedule for their implementatio n? 
Reply 
1.  Before the team of exit -entry inspection and quarantine was incorporated into Chinese 
customs, Chinese customs had already adopted a centralized and unified national system for 
customs clearance. After the institutional reform in April 2018, the General Administration of 
Customs is now designing a new customs clearance management system to integrate the former 
customs system and the customs clearance system of the inspection and quarantine authorities so 
that the customs can use one sys tem for law enforcement and standardized customs clearance. As 
for problems caused by system bugs mentioned by Japan, because there is no specific description 
of the problem, China cannot trace or check the problem and suggests Japan provide specific cases  
for further verification.  WT/TPR/M/3 75/Add.1  
 
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  2.  Currently, Chinese Customs is implementing reform to ensure that customs districts in 
different regions adopt the same system. We are setting up tariff collection and management centres 
categorized for different commodities a nd industries. We are conducting a review at the national 
level of classification elements to ensure the consistency of law enforcement. Administrative acts of 
the customs (including pre -ruling) have clear time limits for action.  
3.2 Creating more attractive investment environment , page 7, paragraph 3.15  
Question 5  
China decided in November 2017 to allow foreign ownership of up to 51% in securities firms, fund 
management companies and future companies. Could China elaborate current status of consult ation 
and expected timeframe of publishing draft regulation, inviting public comments and its entry into 
force? Furthermore, would China rectify its SOC after the implementation?  
Reply  
On 28 June 2018, the National Development and Reform Commission and the  Ministry of Commerce 
jointly issued the Special Administrative Measures for Foreign Investment Access (Negative List) 
(2018 Version). The list expands access to the Chinese market for foreign investment. The measures 
apply to all foreign investors. The 20 18 version of the negative list includes opening measures in 
22 areas and the number of restrictive measures decreased from 63 to 48, a near 25% cut. In the 
financial sector, China has abolished restrictions on foreign ownership in the banking sector and 
allowed foreign ownership of up to 51% in securities firms, fund management companies and future 
companies. By 2021, all restrictions on foreign ownership in companies of the financial sector will 
be lifted.  
Besides, could Japan please clarify the meaning o f SOC?  
Page 7, paragraph 3.18  
Question 6  
The signing of agreement on social credit or data transfer, which is ought to be done to participate 
government projects, is said to be optional. Companies, however, see it compulsory to sign such 
agreement and to disclose data because it is unclear whether there is no disadvantage if they decide 
not to sign such agreement. In addition, some companies experienced disadvantages in practice in 
the course of approval procedure as they did not disclose technical data th ough there are no legal 
bases for such requirement. Could China confirm that refusal of signing this kind of optional 
agreement and of requirements without legal basis do not result in any disadvantages?  
Reply  
China has no idea of this agreement on data tr ansfer. Could Japan please provide further information?  
Page 7, paragraph 3.18  
Question 7  
Japan recognizes that, in certain occasion, foreign enterprises are de facto required to transfer their 
technologies in order to obtain administrative approval. Woul d not these requirements contradict 
with China's commitment (and paragraph 3.18  of the report by the government) not to impose any 
technology transfer requirements as a condition for administrate approval of investment?  
Reply  
There is no law in China that requires foreign enterprises to transfer their technologies to Chinese 
partners. Since China's reform and opening up, enterprises from other countries and regions have 
chosen to cooperate with Chinese enterprises to enter the Chinese market. These enterpri ses from 
other countries and regions provide technology and experience, while the Chinese side provides 
labour and other resources. This is a contract behaviour  implemented at the enterprise level. In fact, WT/TPR/M/3 75/Add.1  
 
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  many of these enterprises have made huge profits by setting up joint ventures in China, and the 
profits have even exceeded those made in their home countries or regions.  
China's requirement on joint venture and equity ratio restrictions in specific areas is a matter of 
market access that complies with WT O rules and China's WTO commitments. It is an approach 
adopted by most WTO members and has nothing to do with technology transfer. China is currently 
abolishing the joint venture requirements in some sectors through independent liberalization 
measures and bilateral investment agreement negotiations. As China will continue to deepen reforms 
and open wider to the outside world in the future, the door of opening up will open wider.  
3.4 Strengthening the protection of intellectual property rights , page 8, parag raph 3.24  
Question 8  
On 9 October 2017, the General Office of the State Council issued "the Opinion on Deepening the 
Reform of the Review and Approval System and Encouraging the Innovation of Drugs and Medical 
Devices, " which include (16) Exploring and establishing a drug patent linkage system and 
(17) Launching pilot programme s with respect to drug patent term compensation system.  
1. When will China introduce and start to implement the drug patent linkage system and/or the 
drug patent term compensation system?  
Reply  
The drug patent linkage system and the drug patent term compensation system are institutions that 
encourage drug R&D. The systems need to be put in place through legislation. Currently, China is 
actively work ing on that.  
Question  
2. Does China plan to publish draft law or regulation of the drug patent linkage system and/or 
the drug patent term compensation system for public comments?  
Reply  
Before launching the drug patent linkage system and the drug patent term compensation system, 
China Food and Drug Administration will publish the draft for public comment according to the legal 
procedure. We welcome constructive suggestion from organizations and enterprises from home and 
abroad.  
Page 8, paragraph 3.25  
Ques tion 9  
According to the report by the Government, China has continued to strengthen the protection of 
intellectual property rights. Does China consider amending laws and taking measures,  which prohibit 
goods the imitation of the configuration of another pe rson's goods?  
Reply  
The issue is under consideration.  
Page 9, paragraph 3.26  
Question 10  
According to the report by the Government, the Anti -Unfair Competition Law of China protects trade 
secrets of companies.  Could China provide information on mechanism to assure the protection of 
data owned by companies, including ID, passwords and other data that require to be technically 
managed?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the Law of the People's Republic of China on Unfair Competition, trade secrets refer to 
technical informa tion and business information that are not known to the public, have commercial 
value, and are subject to appropriate secrecy measures by the right holder.  
Meanwhile, a business owner may not adopt the following means to infringe trade secrets:  
1.  obtaini ng trade secrets from the right holder by stealing, bribery, fraud, coercion or other 
improper means;  
2.  disclosing, using, or allowing others to use trade secrets of the right holder obtained by the 
means mentioned in the preceding item;  
3.  disclosing, using or allowing others to use trade secrets obtained by breaking an engagement 
or disregarding the requirement of the right holder to maintain the trade secrets in confidence.  
Where a third party obtains, uses or discloses trade secrets when he/she obvio usly has or should 
have full awareness of the illegal acts mentioned in the preceding item, he shall be deemed to have 
infringed the trade secrets of others.  
Besides, supervising authorities and their employees have the obligation to keep trade secrets the y 
learn during investigation.  
Meanwhile, supervising authorities should stop violation of rules against infringement of trade 
secrets and impose a fine of 100000 -500000 yuan on the violator. For serious misconduct, a fine of 
over 500000 and less than three  million yuan can be imposed. Employees of supervising authorities 
abusing their power, negligent of their duty, playing favouritism  or disclosing trade secrets they 
learn during investigation will be punished according to the law.  
In the Criminal Law of t he People 's Republic of China, there is clear rules on the punishment for 
infringing trade secrets and causing major loss to the holder of the secrets.  
Page 9, paragraph 3.26  
Question 11  
The extent to which laws and regulations on IPR protection are enforced, especially with regard to 
robots and automobiles, differs significantly from region to region in China. Could China assure that, 
in addition to rule -making, enforcement by local gover nments should be levelled  and well managed?  
Reply  
China attaches great importance to IPR protection, and pays close attention to the enforcement and 
implementation of IPR rules and regulations. Regarding the IPR protection of robots and automobiles, 
China has not found any significant differences between its provinces and municipalities. At present, 
China is undergoing institutional reforms. We have re -established the SIPO; the central and local IP 
enforcement agencies will be further improved and law enfor cement will be further strengthened. 
These will help to better protect the legitimate rights and interests of IP holders.  
Page 9, paragraph 3.26  
Question 12  
Standard of evidence adoption in IPR lawsuit in China is stricter than international practices (e.g. 
company's internal documents, documents by parties to the lawsuit or documents issued overseas 
are very rarely adopted as evidence). Could China explain reasons that these documents cannot be 
adopted as evidence?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China's rules in IPR lawsuit ar e set in accordance with internationally accepted rules and China's  
development reality. The reasons why internal documents of some companies and documents issued 
overseas have not been identified as evidence may be that the documents are not adopted by th e 
judge as they are questioned in authenticity or only faintly related to the relevant cases.  
Page 9, paragraph 3.26  
Question 13  
Could China explain the progress of amending the Patent Law and the Copyright Law?  
Reply  
As for the amendment of the Patent Law, the fourth amendment was initiated in the second half of 
2014. The amendment draft for the patent law (for approval) was submitted to the State Council in 
July 2015. In March  2018, the amendment of the Patent law was  included into the 2018 legislative 
plan of the State Council which was submitted for review and discussion by the standing committee 
of the National People 's Congress. The 2018 legislative plan of the standing committee of the NPC 
has made it clear that t he amendment draft of the Patent Law will be reviewed and discussed this 
year. 
As for the amendment of the Copyright Law, in March 2018, General Office of the State Council 
issued the 2018 legislative plan of the State Council which states that in 2018, th e amendment draft 
of the Copyright Law will be submitted for review and discussion by the standing committee of the 
NPC. We expect the amendment of the Copyright Law to speed up.  
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION AND 
BUILDING A N OPEN WORLD ECONOMY  
4.2 Firmly safeguarding the multilateral trading system and striving to contribute Chinese 
wisdom and strength , page 14, paragraph 4.14  
Question 14  
The report by the Government gives "grave concern over the unilateral and protectionist  practices." 
Japan would like to be informed of China's view on retaliatory actions against another country's 
unilateral/protectionist trade practices? Could China provide information on legal basis of some 
aspect of i ts trade measures against the US 's Section 232/301 measures (e.g. Could China inform 
us of legal basis under the WTO Agreement of China's retaliatory tariff increases against the U S's 
Section 301 measures)?  
Reply  
In response to aluminium Section 232 measures that has been conducted since 23  March, China has 
decided to place duties on some products imported from the US because a delay would cause 
irreversible damage, to offset the losses incurred by the 232 measures on the part of the US to 
China, in accordance with Article VIII of the Agreem ent on Safeguards and Article 19.3 of the 
GATT  1994. China notified the Council for Trade in Goods of the suspension of concessions on 
29 March and start the implementation as of 2 April.  
It is the legitimate right of China to suspend the fulfilment of som e obligations to the US, as a 
member of WTO. China strictly follows the provisions of Article 8.2 of the Agreement on Safeguards 
that the suspension of concessions should be "substantially equivalent" to safeguard measures. The 
measures China took are symm etrical and restrained.  
At the same time, regarding the inconsistency between the steel and aluminium Section 232 
measures by the US and WTO rules, China appealed to the WTO dispute settlement system to 
address the steel and aluminium Section 232 measures adopted by the US.  WT/TPR/M/3 75/Add.1  
 
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  About the countermeasures against the Section 301 investigation: With respect to the emergency 
incurred by the violation of international obligations of the US to China, in order to defend our 
legitimate rights, China imposed tariff meas ures on some goods imported from the US, under the 
laws and regulations including Foreign Trade Law of the People's Republic of China and basic 
principles of international law.  
Page 14, paragraphs 4.15, 4.17 and 4.18  
Question 15  
Although the Chinese govern ment states that positive progress has been made with regard to their 
compliance of the notification obligations, China has not notified their subsidies since 2015. When 
will China notify them? Besides, while China described that both of the central govern ment and local 
governments have introduced and are carrying out public comments procedure for draft laws and 
regulations, it seems that China has not necessarily disclose the result of public comments (in 
particular how the governments took into account of  the submitted comments). Does China legally 
obligate the central and local governments to disclose the result of public comments, and if so, how 
does China ensure such obligation is implemented by them?  
Reply   
Over the last year, China has been working on  updating the notification of subsidies to 2015 -2016, 
as requested by notification rules. At present, the strenuous task has largely been completed. China 
endeavours  to submit the notification of central and local subsidies of the next phase before the 
review meeting is held.  
The Regulations on the Procedure of Making the Administrative Laws and Regulations and the 
Regulations on the Procedure of Making Regulations and Rules amended in May 2018 have put 
forward explicit regulations. The 2nd clause of Article XIII of the Procedure of Making the 
Administrative Laws and Regulations stipulated: For the formulation of administrative laws and 
regulations, the responsible d epartment shall make public the draft of the administrative law and 
regulation concerned and relevant illustration to solicit public opinions, except for administrative 
laws and regulations that the State Council has decided otherwise. The period of opinio n solicitation 
shall be no less than 30 days. Under the 2nd clause of Article XV of the Regulations on the Procedure 
of Making Regulations and Rules: For the formulation of regulations and rules, except for those that 
should be kept confidential by law, th e draft and illustration of regulations and rules concerned shall 
be made public to solicit public opinions. The period of opinion solicitation shall be no less than 
30 days.  
In practice, the responsible department will in general solicit public opinions a bout the drafts of 
administrative laws and regulations and other regulations and rules via government websites in no 
less than 30 days. During the period of opinion solicitation, foreign enterprises and governments 
may put forward opinions via e -mail or co rrespondence as designated by the responsible department.  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , page 17, paragraph 5.4  
Question 16  
With regard to the excess capacity in steel and coal industries, China clearly states in the report that 
it has recognized and focused on the key issue of "zombie enterprises", and has taken the "market -
oriented, law -based measures" to scale down the overcapacity accordingly. Considering the current 
circumstances where the excess capacity issues have been spread to other industrial sectors 
including aluminium , semi -conductor etc., could China elaborate how it analysed  the causes of its 
key issue of "zombie enterprises" and what kind of specific measures taken are effective to tackle 
such causes?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
One of the priority tasks of advancing the industrial supply -side reform is addressing overcapacity 
and supporting the devel opment of industries in strained conditions. In this process, the market 
should serve as a check; enterprises should be the major actors, local governments should play a 
coordinating role, and the central government should provide due support, to advance o vercapacity 
cut in steel and coal industries and other key industries.  
Firstly, China will formulate general plans for industrial reorganization and the settlement of zombie 
enterprises and put forward measures for the resettlement of workers, financing an d debt disposal. 
Secondly, China will condense stock and optimize structure and proceed with the cut of inefficient 
overcapacity. China will guide and encourage enterprises to work on game -changing strategic 
merging and reorganization. Relevant authorities  will review new capacity expansion projects in 
relevant fields under the Catalogue of Investment Projects Subject to Governmental Verifications 
and Implementation Measures for Investment Projects Subject to Governmental Verifications.  
Page 17, paragraph 5.4 
Question 17  
China states in the report that, in tackling excess capacity in steel and coal industries, China 
(a) "organized special operations against outdated facilities and projects that violated laws and 
regulations", (b) "made tremendous efforts to  ensure ... that enterprise debts were properly 
handled", and (c) encouraged enterprises affected by overcapacity to merge, restructure, transform, 
upgrade, or optimize business distribution."  
Japan is aware that the details of these measures are partly de scribed in Section 4.3.2.4 of the 
report by the Secretariat. Could China provide further the details with clarity of these measures, 
including (a) whether "special operations" are limited to the ones described in paragraph 4.115 of 
the report by the Secret ariat, (b) what have been done to "properly handle" the debt of enterprises, 
and (c) what specific measures are taken to encourage the enterprises to proceed to merger, 
restructure, transform etc.?  
Reply  
About coal, the special action refers to the action mentioned in Clause 4.115 of the report by the 
Secretariat.  
With respect to merging and reorganization and industrial transformation, on the one hand, China 
will encourage large coal enterprises to join hands to prioritize the development of coal -and-power , 
coal-and-steel and coal -and-chemicals projects, foster large cross -industry, cross -region and trans -
ownership business groups and achieve the integration of upstream and downstream industries. On 
the other hand, China will make full use of market -based t ools, such as capacity replacement, to 
work faster on forging a batch of refined and environmentally -friendly capacity featuring advanced 
techniques with a high rate of resource utilization and low energy consumption per item. Moreover, 
China will guide co al enterprises to lay greater emphasis on clean, efficient, safe and green 
development and raise the level of the mechanization, automation, information and intelligence of 
coal mines.  
About steel, the special action largely refers to the action mentioned in Clause 4.115 of the report 
by the Secretariat. Measures for the reasonable settlement of corporate debts include: implement 
policies for the settlement of financial claim and monetary liabilities in sectors with de -capacity tasks 
and improve the settlem ent mechanism for the sharing of debts by all parties by law. Measures for 
promoting the merging and reorganization of enterprises and industrial transformation include: 
improve the policy environment; follow the principle of enterprises being the major ac tors, the 
government staying at the helm and upholding market -oriented operation; and encourage capable 
enterprises to carry out merging and reorganization.  WT/TPR/M/3 75/Add.1  
 
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  Page 17, paragraph 5.4  
Question 18  
While China has made efforts to eliminate excess capacity in the  steel industry, it is reported that a 
number of Chinese steel companies plan to build steel production facilities oversea. Is China aware 
of such situation, and does China plan to address such situation?  
Reply  
With regard to overseas investment by domesti c steel enterprises, China upholds the principle of 
making enterprises the main actor with market orientation and abides by business principles. 
Enterprises will make decisions independently and undertake relevant risks accordingly. Meanwhile, 
China urges Chinese enterprises to abide by relevant laws and regulations and relevant standards 
and requirements put forward by the host countries for environment, energy consumption and safety, 
etc. and fulfil social responsibilities in foreign investment activities , to achieve common development 
with the host countries.  
5.3 Advancing modernization of the system and capacity for governance , page 19, 
paragraph 5.15  
Question 19  
In the cyber space in China, it is widely acknowledged that censorship and access restriction are 
systematically conducted through the Great Firewall, and access to foreign services (e.g. Google and 
Facebook) are blocked. This is the severe disadvantage for foreign companies including cyber -related 
companies. In addition, broad censorsh ip gives serious anxiety in terms of confidentiality of trade 
secrets. Could China provide its view on the proposition that this should be improved as it amounts 
to the protection of domestic industries and the impediment of fair competition even if its pr imary 
official objective was security?  
Reply  
China will not close the door of opening up, nor will not slow down the pace of opening up. The 
Chinese government has abided by law -based administration of the Internet. We welcome Internet 
enterprises from all  over the world to engage in frank and pragmatic exchanges on Internet security 
so long as they abide by Chinese laws and do harm to neither China's national interests nor the 
interests of Chinese consumers. Meanwhile, Internet enterprises from various cou ntries should also 
take practical measures to prove their willingness and capability to comply with Chinese laws and 
regulations and provide Chinese netizens with safe, controllable and assured products and services.  
Page 19, paragraph 5.15  
Question 20  
Foreign companies participating in government projects are de facto required to sign an (optional) 
agreement on data transfer. However, these companies have hesitation for signing such agreement 
on data transfer because data acquired during the project is req uired to be localized and its cross -
border transfer is prohibited. As a result, Chinese companies, which do not face such concern, seem 
to have advantages in the competition for project participation. Along with data localization 
requirement, a level playi ng field seems not secured in the field of data access. Could China provide 
its view on this matter?  
Reply  
China has no idea of this agreement on data transfer. Could Japan please provide further information?  WT/TPR/M/3 75/Add.1  
 
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  Page 19, paragraph 5.15  
Question 21  
It is widel y acknowledged that the Communist Party of China recently decided to strengthen the 
requirement for companies to develop in -house party organization. This may deter further 
investment to China or business there by foreign companies as it increases burden o n them. Could 
China provide its views on this matter?  
Reply  
1. This practice is in line with China's  laws and relevant regulations.  
2.  The establishment of party organizations conforms to the wishes of enterprise employees.  
3.  It is conducive to promoting the development of production and management of enterprises.  
4.  In practice, the enterprise -based Party organizations organically integrate their activities with 
the production and operation of their enterprises, thus offering strong support for  the healthy 
development of the enterprises.  
Page 20, paragraph 5.16  
Question 22  
In the report by the Government, China states that "[m]ixed -ownership reform has been 
accelerated" to further advance the reform of state -owned enterprises. Meanwhile, the rep ort by the 
Secretariat states that "the number of state -owned industrial enterprises has roughly remained 
constant during past years"(paragraph 3.181), and "the State remains a majority shareholder in all 
but one of the 100 largest publicly listed Chinese companies" (paragraph 3.183). The report by the 
Secretariat also states that, pursuant to the Guiding Opinion on Deepening the Reform of SOEs 
issued by the Central Government and State Council in August 2015, "the Government shall promote 
a shareholding sy stem of commercial SOEs and encourage private investment, while at the same 
time maintaining the leadership in SOE governance."(Paragraph 3.184).  
Could China elaborate specific policies or guidelines regarding how China conducts the mixed -
ownership reform with regard to (a) the final shareholding ratio of the State in SOEs, (ii) what kind 
of leadership in governance or what kind of control the State are supposed to maintain in SOEs, 
(iii) how independent the SOEs' decision making are supposed to be from the  State?  
Reply  
On the final shareholding ratio of the State in SOEs . According to the provisions of the Guiding 
Opinions of the CPC Central Committee and the State Council on Deepening the Reform of State -
owned Enterprises, the principle of making progress in a classified manner shall be adhered to in 
deepening SOE reform . For commercial SOEs whose core business belongs to industries and fields 
with sufficient competition , State -owned capital may be the absolute or relative controlling 
shareholder, or be merely a shareholder . Commercial SOEs whose core business belongs to major 
industries and key fields concerning national security or national economic lifeline, or that are mainly 
responsible for major special project tasks shall maintain the position of State -owned capital as the 
controlling shareholder, while support non -State -owned capital to become shareholders.  For SOEs 
in public welfare nature , non-State -owned enterprises may also be encouraged to participate in the 
operations of such enterprises by purchase of services, franchise operations, entrustment and 
agency, et c. Therefore, there is no unified quantitative requirement for the shareholding ratio of the 
State in SOEs. I n light of the role of different SOEs in economic and social development, as well as 
their current situations and development needs, SOEs shall be  se subject to separate regulations.  
On what kind of leadership in governance or what kind of control the State are supposed to maintain 
in SOEs . The State fulfils  the responsibilities and supervision and management functions of 
contributors through the representatives of State -owned capital contributors and State -owned asset 
supervision and management agencies. It optimizes the overall arrangement of State -owned ca pital WT/TPR/M/3 75/Add.1  
 
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  mainly through the management of capital, and promotes the reasonable flow, value preservation 
and appreciation of State -owned capital through market -based professional platforms such as 
state-owned capital investment and operating companies. Meanwhi le, through strengthening the 
supervision of contributors and assigning regulatory powers to conduct supervision and auditing on 
the supervisory boards, the State improves the State -owned asset information disclosure system 
and prevents the loss of State -owned assets.  
Deepening SOE reform adheres to and follows the laws of market economy and the laws of enterprise 
development, and adheres to the principles of separating government functions from enterprise 
management, separating government functions from as set management and separating of 
ownership and management. SOEs are independent market players characterized by self -restraint 
and self -development with full autonomy and full responsibility for their own risks, profits and losses, 
and their management dec isions are all made by internal governance bodies such as the 
shareholders' meeting and the board of directors. The State does not interfere with the independent 
management decisions of SOEs, and exercises corresponding shareholder rights through the 
repre sentative agencies of contributors in accordance with the Company Law and other legal norms.  
6 THE WAY FORWARD  
Page 22, paragraph 6.4  
Question 23  
China announced the easing of foreign ownership ratio of life insurance companies to 51% and is 
currently work ing on modification of its regulations on foreign -funded insurance companies.  While 
foreign ownership in non -life insurance sector is already committed to 51%, why was life insurance 
sector more restricted than non -life insurance sector? What is the ration ale behind of those 
restrictions? Furthermore, would China rectify its SOC after the implementation?  
Reply  
Upon accession to the WTO, we committed the share of foreign enterprises in non -life insurance 
companies and life insurance companies would account for 51% and 50% respectively. China has 
earnestly acted on the commitment and never imposed new restrictive measures. When the National 
Development and Reform Commission and the Ministry of Commerce issued Special Administrative 
Measures for Foreign Invest ment Access (investment negative list) (2017) on 28 June 2018, market 
access was greatly relaxed and open measures became applicable to all foreign investors. In the 
financial sector, China has abolished restrictions on foreign ownership in the banking sec tor and 
allowed foreign ownership of up to 51% in securities firms, fund management companies and future 
companies. By 2021, all restrictions on foreign ownership in companies of the financial sector will 
be lifted.  
Please clarify the meaning of the safety  management platform.  
Report by the Secretariat - WT/TPR/S/375  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments , page 17, paragraph 1.5  
Question 24  
According to the report by the Secretariat, China has taken a series of measures to help enterprises 
deleverage including law -based bankruptcy, merger and restructuring, optimization of enterprises' 
debt structure, and debt -to-equity swaps. Could China provide the information on how many 
state-owned enterprises (SOEs) and private enterprises went bankrupt  in 2016 and 2017? How many 
debt-to-equity swaps were carried out by private enterprises and SOEs in 2016 and 2017?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In terms of enterprise bankruptcy, according to statistics released by the Supreme People's Court, 
it concluded 3,373 and 6,257 bankru ptcy cases as per the law in 2016 and 2017, respectively. 
However, we do not have the statistics of the proportions of SOEs and private enterprises.  
According to the Guidelines on Proactively Yet Prudently Lowering Enterprise Leverage Ratios 
(Guo Fa No. 54 , 2016), the debt -to-equity swaps are carried out following the market -based and 
law-based principles: the debt -to-equity swap institutions determine target enterprises, raise funds, 
and price equities and debts through market -based measures, and exercise shareholder rights in 
accordance with law -based principles. The State will not intervene in the debt -to-equity swaps of 
market entities, without practicing any administrative approvals or interventions when the market -
based debt -to-equity swaps are carried  out. The Government runs statistics of market -based debt -
to-equity swaps on a regular basis, but does not separate debt -to-equity swaps carried out by SOEs 
from those by private enterprises. Hence, we only know about the market -based debt -to-equity 
swaps in general, and have no detailed statistics concerning those carried out by SOEs and private 
enterprises.  
Page 23, paragraphs 1.30 and 1.31  
Question 25  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph s 1.30. and 1.31, it is generally considered that subsidies to the 
shipbuilding industry would impede structural adjustment and lead to maintaining capacity which 
should have been removed based on market mechanism.  
Could China i dentify all the financial support programme s extended by the Government of China, 
any entity controlled by the government or any entity that carries out public policies in China 
(collectively, "governmental body ") to the shipbuilding industry and buyers of  vessels, and give their 
outline, including the relevant legislation and governmental entity, of each programme ? 
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
Page 23, paragraphs 1.30 and 1.31  
Question 26  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph s 1.30. and 1.31, it was reported by the press that state -owned 
banks in China concluded credit agreements with shipbuilding co mpanies in China. Such press 
reports include the following:  
• In August 2013, China Export Import Bank (CEXIM) concluded a credit agreement of up 
to CNY 100 billion with China State Shipbuilding Corporation (CSSC).  
• In September 2016, the Industrial and Comme rcial Bank of China Limited (ICBC) 
concluded a credit agreement of up to CNY 50 billion with China State Shipbuilding 
Corporation (CSSC).  
• In March 2017, China Export Import Bank (CEXIM) agreed to provide up to CNY 30 billion 
in upcoming three years to COSC O Shipping Heavy Industry.  
For each credit agreement concluded, could China provide the information on the dates of loan 
execution, the amount of loan actually executed under these credit agreements, and the applicable 
interest rates of these loans provided?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The information involves trade secrets in enterprises trading activities, and the Chinese government 
has no access to such information.  
Page 23, paragraphs 1.30 and 1.31  
Questi on 27  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph s 1.30. and 1.31, it was reported by the press that Guotou Advanced 
Manufacturing Industry Investment Fund established in June 2016 invested CNY 1.0 billion to CIMC 
Offshore Holdings Li mited.  
Could China provide the information on the dates of the equity acquired by the fund, the value per 
share, the amount of stocks actually acquired by the fund?  
Reply  
The information involves trade secrets in enterprises trading activities and the Chin ese government 
has no access to such information.  
Page 23, paragraph s 1.30 and 1.31  
Question 28  
With regard to overcapacity and structural adjustments in the shipbuilding sector mentioned in the 
Secretariat report paragraph s 1.30. and 1.31, it was reported  by the press that state -owned 
investors in China decided to execute Debt -to-Equity Swap with shipbuilding companies in Ch ina. 
Such press reports include  the following:  
• In August 2017, Chinese state -owned investors which holds claim of Dalian Shipbuilding 
Industry Company and Wuchuang Shipbuilding Heavy Industry Group executed the Debt -
to-Equity Swap which involves CNY 21.8 billion in amount of equity undertaken.  
• In December 2017, Chinese state -owned enterprises which holds claim of China State 
Shipbuilding  Corporation (CSSC) executed the Debt -to-Equity Swap which involves 
CNY 24.0 billion i n amount of equity undertaken.  
• In January 2018, Chinese state -owned enterprises which holds claim of China State 
Shipbuilding Corporation (CSSC) executed the Debt-to-Equity Swap which involves 
CNY 10.2 billion in amount of equity undertaken.  
For each Debt -to-Equity Swap, could China provide the information on the names of investors 
involved in the DES transaction, the dates of DES execution, the amount of loan actually executed 
under these credit agreements, the value per share, and the amount of stocks actually acquired by 
the state -owned investors?  
Reply  
The information involves trade secrets in enterprises trading activities and the Chinese government 
has no access to such information.  WT/TPR/M/3 75/Add.1  
 
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  Page 23, paragraph s 1.30 and 1.31  
Question 29  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph s 1.30. and 1.31, it was reported by the press that state -owned 
banks in China concluded loan agreements with shipbuilding companies in China, inter alia : 
• In January 2015, China Export Import Bank (CEXIM) concluded a loan agreement of up to 
CNY 10.8 billion  with China COSCO.  
• In August 2016, China Export Import Bank (CEXIM) concluded a loan agreement of up to 
CNY 120 billion with China COSCO.  
• In October 2016, China Export Import Bank (CEXIM) concluded a buyer's  credit agreement 
of up to CNY 10.8 billion with MSC. The order in connection with this buyer's  agreement 
was placed to Jinhai Heavy Industry.  
• In October 2016, China Export Import Bank (CEXIM) concluded a loan agreement totalling  
CNY 240 billion with Chinese and foreign buyers including Petrobras and Maersk. 
• In November 2017, China Export Import Bank (CEXIM) concluded a loan agreement for 
14 large LNG vessels.  
For each credit agreement, could China provide the information on the dates of loan execution, the 
amount of loan actually executed under these credit agreements, and the applicable interest rates 
of these loans provided?  
Reply  
The information involves trade secrets in enterprises trading activities; hence, the Chinese 
government has no access to such information.  
Could China provide the names of shipbuilding companies with which the recipients of subsidies 
placed orders for a new vessel(s)?  
Reply  
The information involves trade secrets in enterprises trading activities; hence, the Chinese 
government has no access to such information.  
Page 23, parag raph s 1.30 and 1.31  
Question 30  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph s 1.30 and 1.31, it was reported by the press that the scrap and 
build subsidies, which had bee n provided since 2010, was terminated at the end of 2017.  
Could China confirm whether or not the press information above is correct?  
Could China provide the information on the amount of subsidy provided each year since 2010?  
Under the scheme, in order to b e eligible for the subsidy, are vessel owners required or encouraged 
(a) to place an order for a new vessel with a domestic vessel manufacturer, or (b) to use a certain 
amount or proportion of domestic materials or components in a new vessel that they orde r? 
Could China provide the information on the provisions in laws, regulations, guidelines, instructions 
and notes, if any, that are relevant to the requirement or encouragement of (a) and (b) above?  WT/TPR/M/3 75/Add.1  
 
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  Could China provide the information on the names of shipb uilding companies with which the 
recipients of the subsidy placed orders for a new vessel(s)?  
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
Page 23, paragraph s 1.30 and 1.31  
Question 31  
With regard to the so-called "white list" policy, which aims at reducing overcapacity of Chinese 
shipbuilding industry mentioned in the Secretariat report paragraph s 1.30. and 1.31 and launched 
in 2013, is there any financial support extended by a governmental body to the sh ipbuilding industry, 
such as loans to white list companies, which is extended to companies satisfying certain criteria? If 
yes; could China provide the detailed information on the financial support (i.e. type of measure, 
overview of the financial support, and eligibility of the support measures) provided only to companies 
listed in the "white list"?  
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
Page 23, paragraph 1.30  
Question 32  
According to the report by the Secretariat, there appears to be overcapacity in at least ten sectors 
including coal, steel, cement, plated glass, aluminium , chemicals, paper, solar power, shipbuilding, 
and coal fuelled  power. Could China provide the annual data on production, import s and exports of 
these industries from 2001 to 2017?  
Reply  
China does not accept the statement that there appears to be overcapacity in at least ten sectors in 
China. We have already communicated with the Secretariat of the WTO on China's  position when 
the report was being drafted. There is overcapacity in a few sectors such as steel and coal in China, 
and we have been working hard to effectively eliminate excess capacity.  
From 2016 to 2020, China plans to dissolve production capacity by 1 00-150 million tonnes  of crude 
steel. While adhering to the market -based principle and the rule of law, we have actively and steadily 
resolved excess steel production capacity by the exit of outdated production capacity according to 
laws and regulations an d guiding the voluntary exit of production capacity. Meanwhile, China has 
strictly controlled new production capacity, strictly implemented the policies on production capacity, 
and prohibited illegal new production capacity. With the joint efforts of all p arties, we reduced the 
production capacity of crude steel by more than 65 million tonnes  and more than 55 million tonnes  
in 2016 and 2017 respectively, achieving the 5 -year lower threshold limit ahead of schedule. This 
year, China has decided to cut the pr oduction capacity of crude steel by another 30 million tonnes  
or so.  
Electrolytic aluminium : The electrolytic aluminium  industry addresses overcapacity mainly through 
the means of market orientation and rule of law. The key is to strictly put the newly inc reased 
capacity under control, require the new electrolytic aluminium  projects to implement capacity 
replacement and prohibit illegal expansion of the existing capacity. There is no capacity reduction 
goal for this industry.  
The Chinese government attache s great importance to the work of addressing the overcapacity in 
the coal industry. The Opinions of the State Council on the Coal Industry Addressing Overcapacity 
to Get out of Difficulty for Further Development issued in 2016 made overall deployment and 
arrangement for the coal industry to cut down on its overcapacity for the purpose of alleviating 
difficulty and seeking further development. That document specified that since 2016, the coal WT/TPR/M/3 75/Add.1  
 
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  industry had to reduce a 500m ton or so capacity and restructure a  500m ton or so capacity within 
a period of three -five years, with a view to considerably squeezing on that industry 's capacity and 
moderately downsizing the number of coal mines. As a result, the overcapacity of that industry has 
been effectively dealt wi th, leading to a basic balance between supply and demand, optimization of 
the industrial structure and substantial progress in the industry transformation and upgrading. The 
last two years have seen the coal industry reduce a 540m ton capacity, including 2 90m tonnes  in 
2016 and 250m tonnes  in 2017.  
Ship: In an attempt to effectively deal with the overcapacity in the ship industry, the State Council 
promulgated Guiding Opinions on Resolving the Severe Overcapacity Contradiction (Guo Fa [2013] 
No. 41) in 2013 , laying down explicit requirements for the ship industry to address its overcapacity 
problem. That document strictly  prohibits the development of any new projects that increase the 
capacity of the ship industry, any local government or authority shall not  approve or file  any capacity 
expansion projects in any name or in any way.  
Petrochemical: the petrochemical industry in China is not confronted with a structure issue rather 
than the overcapacity problem overall. On the one hand, there is some excess cap acity in the 
low-end basic chemical products; on the other hand, there is a serious shortage of many high -end 
petrochemical products, which are currently dependent on large import. So the description that the 
petrochemical industry suffers overcapacity is not correct.  
Papermaking: We are highly aware of the healthy development of the papermaking industry. 
Currently, the industry sees a basic balance between supply and demand. So the statement that the 
papermaking industry suffers overcapacity is not accura te, in fact.  
Coal-fired power generation: 16 ministries and commissions of the central government, including 
the National Development and Reform Commission and the State Administration of Energy, jointly 
promulgated a document entitled Opinions on Promoti ng the Supply  Side Structural Reform to 
Prevent and Mitigate Overcapacity Risks in the Coal -fired Power Generation Industry (Fa Gai Neng 
Yuan [2017] No.  1404) in August 2017. The document mentions that the installed power generation 
capacity of the coal -fired power industry across the country shall be capped at 1100MW by 2020.  
2 TRADE AND INVESTMENT REGIME S 
2.2 Trade Policy Framework and Objectives , page 33, paragraph 2.13  
Question 33  
With regard to environment protection -related laws and regulations, could  China assure that such 
laws and regulations are administered in a uniform, impartial and reasonable manner regardless of 
whether they are applied to Chinese companies in conformity of the national treatment obligation 
and Article X:3 of the GATT? Also, ex changes of views with relevant sectors including foreign 
companies and inter -agency coordination within China would contribute to enhancing the 
effectiveness and reasonableness of laws and regulations. Does China intend to engage in such 
process in time to  come?  
Reply  
China believe s that strict law enforcement is a fundamental requirement for China to build a socialist 
country based on the rule of law. China is committed to ensuring that environment protection -related 
laws and regulations are administered i n a uniform, impartial and reasonable manner. Any party 
considering law enforcement as unfair can seek legal remedies via judicial reviews, lawsuits and 
other approaches.  
2.4 Investment Regime , page 37, paragraph 2.32  
Question 34  
Regarding the Catalogue of Industries for the Guidance of Foreign Investment, Japan would like to 
know which industries China intends to remove from the restricted and prohibited categories and 
add to the encouraged category in the future.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In June 20 18, China released the Special Administrative Measures for Foreign Investment Access 
(investment negative list) (2018 Version), significantly widening market access for foreign 
investment and cutting the total number of restricted items from 63 to 48. For specific opening -up 
measures, please refer to the Notes on Revisions of Special Administrative Measures for Foreign 
Investment Access (investment negative list) (2018 Version).  
Page 39, Box 2.1  
Question 35  
According to the Secretariat report, in 2017, Chin a added editing of books, newspapers, periodicals, 
audio -visual products and electronic publications, broadcast (TV) video on demand services, 
installation services of signal -receiving facilities, digital news and information services and Internet 
public r elease information service in the list of prohibited categories. Could China provide the 
reason(s) for adding such a broad exception, which is contrary to the liberalization? Also, Japan 
would appreciate it if China could provide information on whether it has any plan to remove or loosen 
the import quota on revenue -sharing motion pictures or films.  
Reply  
According to the regulations in the General Agreement on Trade in Services (GATS), the WTO 
members have the right to regulate, and to introduce new regulat ions, on the supply of services 
within their territories in order to meet national policy objectives. Thus,  this is China's  legitimate 
right allowed by the WTO. Broadcast (TV) video on demand services and installation services of 
signal -receiving facilitie s are part of broadcasting and television services which are nevertheless not 
included in China's  GATS commitments. China is not imposing new restrictions, but making clear the 
nature of its broadcasting and television services. In addition, the other proh ibited services 
mentioned by Japan are not included in China's WTO commitments, either. China will, in line with 
the development needs of the domestic market, determine the areas and measures regarding 
market openness. China is willing to discuss the furth er opening -up of telecommunications services 
with Japan within the WTO negotiation framework.  
Page 41, paragraph 2.42  
Question 36  
According to the report by the Secretariat, foreign invested projects (FIPs) subject to approval by 
the government are listed in the Catalogue of Investment Projects Subject to Government Approval. 
Could China provide information on whether the Access Administration of New Energy Vehicle 
Manufactures and Products (enacted in 2017) is also listed in the Catalogue?  
Reply  
Please refer to the Catalogue of Investment Projects Subject to Government Approval.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , page 45, paragraph 3.1  
Question 37  
When rules and regulations related customs procedures are to  be changed or amended, the timing 
and method of publication and implementation of such changes and amendments are significant for 
companies to prepare for the implementation of new rules and regulations, allowing them to adapt 
to them. Has China considere d such factors in issuing new announcements and decrees referred to 
in paragraph 3.1 of the report by the Secretariat, taking into consideration, and if so, will China plan 
to take any action for further improvements in the near future?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the requirements of Article 21, 22, and 23 of the Regulations on the Procedure of 
Making Regulations and Rules and Provisions of the Customs of the People 's Republic of China on 
Administration of Legislative Affairs (Decree No.  180 of the General Administr ation of Customs), 
public opinions on the customs regulations are currently solicited on the website of the General 
Administration of Customs (GACC) within a 30 -day period, and solicitation of opinions is also taking 
other forms such as forums, appraisal m eetings, hearings, etc.  
Page 45, paragraph 3.2  
Question 38  
According to Japanese companies operating in China, they appreciate the enhanced efficiency in 
customs procedures through reform and harmonization, but they still face difficulty caused by the 
inconsistency in customs process regarding the implementation a nd interpretation of relevant 
regulations (such as HS code and rule -of-origin certification), which allegedly differ from officer to 
officer and from region to region within China. Is China aware of such difficulty companies face in 
practice? Also, how doe s China plan to handle such situation and improve the operational aspect of 
customs procedures?  
Reply  
China does not know about the situation mentioned by Japan. Please give concrete examples to 
illustrate the inconsistency in customs process regarding the  implementation and interpretation of 
relevant regulations.  
Page 45, paragraph 3.2  
Question 39  
According to the report by the Secretariat, China has made efforts to reform and harmonize customs 
procedures across its 42 customs areas with a total of more th an 200 individual offices. In this 
context, could China provide any examples on how to communicate or share information among 
regional customs? In particular, we are aware of a press release by China Customs in February 2018 
that, under the Golden Customs Project, it set up a central organization called Control and Command 
Center" to conducts monitoring, teleconference etc. with regional customs. Could China provide 
more details about the Control and Command Center such as its organization structure, role a nd 
responsibility?  
Reply  
China Customs has established national unified, centralized IT systems for customs clearance 
management. For example, the H2010 Customs clearance management system can enable the 
centralized storage management of and tiered authori zed access to customs clearance information 
in Customs across the country.  
As an important component of the Golden Customs Project  Phase II, the GACC Control and Command 
Center  is under construction and put into operation. The National Control and Command Center for 
Customs Clearance Integration has been established, temporarily exercising the operational 
command of the GACC Control and Command Center . The relevant management responsibilities are 
undertaken by the GACC Department of Customs Control and Insp ection, and its operation has been 
regularized.  
The role and responsibilities of the GACC Control and Command Center  are: inspecting law 
enforcement in customs clearance supervision sites, regulation and examination of cargos, logistics 
monitoring, spot ch ecks on customs control premises, and other businesses by using video 
surveillance systems; conducting the monitoring and analysis of clearance times in Customs across 
the country, and promptly coordinating and handling customs declaration forms with unusu al 
clearance times; and exercising the emergency command to deal with emergencies in the operation 
of customs clearance integration.  WT/TPR/M/3 75/Add.1  
 
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  Page 46, paragraph 3.6  
Question 40  
According to the report by the Secretariat, there are six different types of "special cu stoms 
supervision areas"; bonded zones, export processing zones, bonded logistics parks, bonded ports, 
comprehensive bonded zones, and cross -border industrial zones.  
1. Could China explain the differences among these types of areas?  
2. Do cargos have to be  carried into these areas before obtaining permission of import/export 
from Customs?  
3. In these areas, is there any inspection for security? If so, how would it be conducted, for 
example, X -ray instrument?  
According to the report, these areas "are approve d by the State Council."  
4. Could China provide information regarding the requirements for such approval and how to 
apply for approval?  
Reply  
1. At present, there are six types of special customs supervision areas in China, all of which are 
established to satisfy the development needs of different time periods. After a series of 
integration and improvement efforts, the six types of areas now have basically the same policy 
functions.  
  
2. Special customs supervision areas are undertaking special economic functions, and not all 
kinds of imported and exported goods are requir ed to be carried into the areas.  
 
3. Special customs supervision areas which are not located in ports are usually not equipped with 
facilities for security inspection.  
  
4. The establishment o f special customs supervision areas is approved by the State Council. Local 
governments can file applications based on their own needs and industrial development. The 
applications should conform to the States regional development plans and be supported by 
appropriate overseas -oriented projects.  
Page 46, paragraph 3.9  
Question 41  
According to the report by the Secretariat, there were 486 administrative review cases and 
142 lawsuits between 2015 and 2017, involving issues such as classification, valuation, an d the 
country of origin.  
Could China explain the procedure of appealing system? Does China have any special sections which 
only deal with court cases or specialists in law such as lawyers and jurists within the Customs 
authorities?  
Reply  
According to the regulations in the Administrative Reconsideration Law of the People's Republic of 
China, when citizens, legal persons and any other organizations consider that certain specific 
administrative acts of a Customs organ infringe upon their lawful rights or inte rests, they can apply 
to the Customs organ at the next higher level for administrative reconsideration. According to the 
regulations in the Administrative Procedure Law of the People's Republic of China, when citizens, 
legal persons and any other organizat ions consider that certain specific administrative acts of a 
Customs organ infringe upon their lawful rights or interests, they have the right to bring a lawsuit 
to the people's  court. According to the regulations in the Customs Law of the People 's Republic of WT/TPR/M/3 75/Add.1  
 
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  China, citizens, legal persons and any other organizations in taxation disputes must apply for 
administrative reconsideration before bringing a lawsuit.  
The regulatory authorities in the Customs take the lead in responding to lawsuits. The Cust oms has 
a team of government lawyers who can cooperate with the regulatory authorities  on responding to 
lawsuits. Meanwhile, the Customs also recruits specialist lawyers and legal experts as legal advisors, 
so that they can provide specialized advice on le gal issues and assist with relevant affairs.  
Page 54, paragraph s 3.37 and 3.52  
Question 42  
We note that, from September 2015 to May 2017, the durations of anti -dumping duties on three 
products (polyvinyl chloride, dispersion upshifted single -model optical fibre, and chloroprene rubber) 
were extended to total of more than ten years by the second sunset review. and currently the 
second  sunset reviews of another three cases (electrolytic capacitor paper, nonylphenol and potato 
starch) are pending.  
What kind of  standards does China apply to such second sunset reviews? Are such standards stricter 
than those applied to first sunset reviews?  
Reply  
There are no differences between the standards for first sunset reviews and those for second sunset 
reviews. The invest igation organ needs to analyse  whether the termination of AD duty may result in 
relevant factors of the continuation or recurrence of dumping or damages and give a ruling 
accordingly.  
Page 56, paragraph 3.45  
Question 43  
Are there any updates on sampling -related regulations?  
Reply  
There is no update on sampling -related rules.  
Page 56, paragraph 3.45  
Question 44  
According to paragraph 3.45 in the report by the Secretariat, the dumping margin of the parties 
other than parties subject to investigation is to be determined from weighted average of the dumping 
margin of the sampled exporters and producers. In such calc ulation, the margin of dumping that is 
determined as de minimis  or negligible will be excluded from the calculation. If the authority uses 
such means of calculation and determines de minimis  or negligible margin of dumping from certain 
subjects of investig ation, it will result in the dumping margin of other subjects to be determined 
higher than normal rate. How does China think of consistency of its practices with the relevant 
agreements with respect to this calculation method?  
Reply  
The relevant regulation s and practices of China conform to Article 6.10 and Article 9.4 of the WTO 
Anti-Dumping Agreement. China has not encountered cases where the means of calculation causes 
dumping margin of other subjects higher than normal rate.  WT/TPR/M/3 75/Add.1  
 
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  Page 56, paragraph 3.48  
Ques tion 45  
According to paragraph 3.48 in the report by the Secretariat, the result of final determination of 
AD investigation may be reconsidered by the Chinese administrative authority or may be referred to 
the court. Is there any case in which the result of investigation is dismissed by the authority through 
its reconsideration?  
Reply  
There has been an application for administrative reconsideration since 2015, which involves imported 
grain-oriented electrical steel originating in Japan, South Korea and the  European Union. The result 
of that reconsideration was to uphold the original anti -dumping decision.  
Page 57, paragraph 3.52  
Question 46  
According to paragraph 3.52 in the report by the Secretariat, China has no specific rules concerning 
sunset review. Co uld China provide us what elements are being considered by the authority when 
determining continuation or elimination of AD measures?  
Reply  
The investigation organ needs to consider whether the elimination of AD duty would lead to 
continuation or recurrenc e of dumping and damages, for example, whether there are dumping 
practices as exporters and producers involved in the case export to China or whether business 
conditions and related indicators in China continue to suffer damages.  
Page 57, paragraph 3.54  
Question 47  
During the review period, the panel found that China acted inconsistently with the AD Agreement in 
the panel report of China Anti -Dumping Measures on Imports of Cellulose Pulp from Canada 
(WT/DS483/R) and the Article 21.5 panel report of China An ti-Dumping and Countervailing Duty 
Measures on Broiler Products from the United States (WT/DS427/RW) with respect to the 
consideration of the price suppression, non -attribution of domestic industry overexpansion and 
overproduction to the dumped imports, an d the rejection of cost allocation methodology submitted 
by the respondents. How has China improved, or plans to improve, its AD practices to ensure the 
consistency with the AD Agreement with respect to these points?  
Reply  
There are two specific anti -dumpi ng cases involved in the question. In both cases, China has 
faithfully implemented relevant suggestions of the panel report of WTO experts.  
3.2 Measures Directly Affecting Exports , page 62, paragraph 3.78  
Question 48  
Could China explain the expected schedule for the legislation of the Export Control Law, and the 
possible amendments to the draft Law, which was published for the public comment procedure in 
June 2017?  
How are the comments submitted during the public comment procedure taken into considera tion? 
In particular, how are the following comments are considered?  (i) The subject goods should be within 
the coverage of international export control regime, (ii) the provision of retaliatory measure should WT/TPR/M/3 75/Add.1  
 
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  be deleted, and (iii) unnecessary technology di sclosure should not be required at the application for 
export licen ce etc.  
Reply  
The Export Control Law  is a project included in the 2018 Legislative Work Plans of the Standing 
Committee of the NPC and the State Council. In line with China's  WTO commitments concerning 
legislation transparency, China has released the draft Law to solicit public opinions in July 2017, and, 
based on advice and suggestions from various parties, submitted the Export Control Law  of the 
People 's Republic of China (D raft for Review) to the State Council. Currently, the draft Law is 
reviewed and revised in accordance with legislative procedures.  
Page 64, paragraph 3.83  
Question 49   
The report by the Secretariat states that "according to the authorities, the management of the VAT 
rebate is used to contribute to environmental protection, energy saving and emission reduction", 
and "Thus, rebates are used to discourage the production and export of environment -polluting 
products."  
With regard to the 2016 TPR report by the Se cretariat, China answered questions raised by Japan 
regarding the VAT rebates, stating that "China has been gradually forming an integrated layout of 
higher VAT rebate rates for high -tech products, higher value -added products and labour intensive 
products,  lower VAT rebate rates for low technology products and lower value -added products and 
abolishing VAT rebate for products with high -energy consumption, high pollution and resource -
intensity, reflecting efforts to meet the requirements of environmental prot ection, energy 
conservation and emissions reduction." (Q18: p age 76, paragraph 3.109)  
While higher rebate rates may tend to promote exports of the products that are subject to such 
rates, high -tech products and high -value added products that are subject to  higher rebate rates may 
not be necessarily less polluting than low -tech products and low -value added products. Could China 
elaborate its view on why assigning higher rates for high -tech products, high -value added products 
and labour -intensive  products can  be relevant to or contribute to energy conservation and 
environmental protection?  
Reply  
Some high -tech products and high -value added products  are also environment -polluting , such as 
mercury -laden engine batteries and some chemical materials, and there are  no tax rebates for these 
products.  
Page 64, paragraph 3.83  
Question 50   
Could China explain how the recent increase in VAT rebate rates of processed corn products, 
electronic and mechanical products and processed oil (described in the report by the Secret ariat 
paragraph 3.83) is relevant to discouraging the production and export of environment -polluting 
products? In other words, are the rates increased because these products are considered to become 
less likely to pollute the environment and, if so, why th ey can be considered so in comparison with 
the other products?  
Reply  
The decision to increase  the rebate rates of processed corn products, electronic and mechanical 
products and processed oil  is made based on the views of relevant industries. If the assessment of 
industry associations and environmental authorities points to the considerably decreased pollution 
and energy consumption caused by some products,  the State would gradually resume and  increase 
their rebate rates.  WT/TPR/M/3 75/Add.1  
 
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  Page 64, paragraph 3.83  
Question 51  
With regard to the 2016 TPR report by the Secretariat, China answered questions raised by Japan 
regarding the VAT rebates, stating that "China adjusts rebates mainly in the principle of redu cing 
trade frictions and controlling the export of highly energy -consuming, highly polluting and resource -
intensive products" (Q17: p . 76, paragraphs 3.108 and 3.109)  
How does the element of "reducing trade frictions", which was included in China's answer to Japan's 
question in 2016 above but not in the Secretariat report, work in adjusting the VAT rebates?  
Reply  
Instead of providing full rebates on all exports, China is adopting differentiated tax rates according 
to the nature of goods without exceeding th e VAT rates stipulated in laws and regulations. In this 
way, the cost of exports will reflect the impacts of the manufacturing of some exports on 
environment and energy consumption, and t he export of highly energy -consuming, highly polluting 
and resource -intensive products  can be restricted. This not only demonstrates China's  commitment 
to the international obligation of energy conservation and environmental protection, but also serves 
to effectively decrease trade frictions.  
Page 65, paragraph 3.91  
Question 52  
According to the report by the Secretariat, loans by China Eximbank are granted at commercial 
interest rates. How are such interest rates determined in practice? Does it refer to the People's Bank 
of China's "benchmark lending interest rate" po licy when setting the interest rates?  
If yes, how is the "benchmark lending interest rate " considered? Is there any case in which the loan 
was granted with the interest rates lower than the benchmark lending interest rate?  
Reply  
China Eximbank sets its int erest rates with overall consideration of macroeconomic policy direction, 
supply and demand for funds, cost of loan funds, cost of capital occupancy, project risk 
compensation, operational and administration expenses and quoted prices in the industry. Chin a is 
not a Member of OECD, but the loan interest rates are set by referring to the Arrangement on 
Officially Supported Export Credits.  
3.3 Measures Affecting Production and Trade , page 71, paragraph s 3.114  and 3.118  
Question 53  
The report by the Secretariat refers to a "2017 amendment" (e.g. paragraph 3.114) and a "2018 
amendment" (e.g. paragraph 3.118) to the Standardization Law. Was the law amended in 
both years?  
Reply  
The newly amended Standardization Law was officially released on 4 November 2017 and 
implemented on 1 January 2018.  
Page 72, paragraph 3.119  
Questi on 54   
Are there any differences between the roles of domestic industry and foreign industry in the 
formulation process of standards in China? We would like to confirm that the re are no differences WT/TPR/M/3 75/Add.1  
 
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  between domestic and foreign industries with regard to conditions for participating in national 
standards development process.  
Reply  
According to relevant requirements in the Guidelines on Foreign -invested Enterprises Participation 
in China's Standardization Work jointly issued by the Standardization Administration of China, the 
National Development and Reform Commission and the Ministry of Commerce, foreign -invested 
enterprises will enjoy the same treatment as domestic enterprises whe n they participate in China's 
standardization work.  
Page 72, paragraph s 3.119  and 3.120   
Question 55  
What is the role of the Standardization Administration of China (SAC) in the formulation process of 
industry/sectoral standards and local standards? While paragraph 3.119 states the role of SAC in 
the formulation process of national standards, no explanation is made in paragraph 3.120 on its role 
in formulation of industry, sectoral and local standards.  
Reply  
Article 12(2) of the Standardization Law stipulat es that industrial standards shall be formulated by 
relevant competent administrative departments of the State Council and reported to the 
administrative department for standardization under the State Council for the record. Article 13 (2) 
stipulates that local standards shall be reported to the administrative department for standardization 
under the State Council for the record by relevant competent administrative departments of the 
people's governments of provinces, autonomous regions and municipalities a nd the administrative 
department for standardization shall report to competent administrative departments under the 
State Council. Article 18 of the Standardization Law stipulates that the administrative department 
for standardization under the State Counc il, based on feedback, assessment and review of the 
implementation of the standards, shall work with competent administrative departments to deal with 
problems or handle them with the standardization coordination mechanism of the State Council as 
relevant standards overlapping or not conforming with each other.  
Page 73, paragraph 3.121  
Question 56   
In case where a voluntary standard becomes mandatory as it is referenced in a technical regulation, 
will it be subject to public comments as in the case of the development process of mandatory 
standard?  
Reply  
Yes. Article 15 of the Standardization Law stipulates that while formulating mandatory and voluntary 
standards, efforts should be made in multiple ways to solicit comments according to the principle of 
conve nience and effectiveness.  
Page 74, paragraph 3.124  
Question 57   
Japan has raised concerns at the TBT Committee regarding the rules on New Energy Vehicle (NEV) 
credit. Could China provide information on plans to update this rule including credit requirement  to 
be applied in and after 2021?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Measures for the Parallel Administration of the Average Fuel Consumption and New Energy Vehicle 
Credits of Passenger Vehicle Enterprises. The Measures puts forward an innovative parallel 
administration mechanism for the average fuel consumption and NEV credits of passenger vehicle 
enterprises. The mechanism is in line with the development of China's  automobile industry at the 
current stage, and takes into account both the energy conservation of traditional automobiles  and 
the innovative development of NEVs. The goal is to establish a market -based long -effect mechanism 
for the development of the energy saving and new energy vehicle industry.  
As regards the time for the examination of the NEV credit proportion referred t o in the Measures, 
the departments, based on the extensive opinions of various parties both at home and abroad, and 
taking into consideration the status quo of the industrial development and concerns of different 
parties, decide to start examination since 2019. Such arrangement allows time for relevant 
enterprises to conduct product RD and production layout. The Measures treats domestic and foreign 
funded enterprises equally and has thus obtained the active support of major automobile production 
enterprises  since its issue.  
Page 74, paragraph 3.124  
Question 58  
With regard to the Cybersecurity Law, which entered into force on 1 June 2017, what is the definition 
of the terms "secure and controllable " and "secure and trustworthy " in the law?  
Reply  
The Cybersecurity Law of the People's Republic of China puts forward requirements concerning 
popularizing secure and trustworthy  network products and services. The term secure and 
trustworthy  is a professional description to decrease the technical risks, o utsourcing risks, and supply 
chain risks of software products and IT services from the perspective of quality. Thus,  it is a 
technology -neutral term without excluding foreign technological products or services.  
The meaning of secure and trustworthy  includ es at least three aspects: Firstly, product and service 
providers shall not leverage their products and services to improperly obtain users important data 
and damage users control of their own data; secondly, product and service providers shall not 
imprope rly control or manipulate users devices via the Internet to damage users control of devices 
owned and used by themselves; thirdly, product and service providers shall not leverage users 
reliance on products and services to seek unlawful profits or monopoli ze the industry, such as 
stopping providing reasonable security technical support and forcing users to update devices. This 
term is not subject to any national boundaries or regional differences, and enterprises and products 
both at home and abroad must co nform to the requirement.  
Page 74, paragraph 3.124  
Question 59  
At the TBT Committee, China explained that the Multi -Level Protection Scheme (MLPS) and the 
Regulation on the Administration of Commercial Cipher Codes (OSCCA) would be revised under the 
Cybers ecurity Law, which came into effect in June 2017. Could China update the situation of the 
revision of these regulations and also provide the information on the date of entry into force of the 
Encryption Law.  
In particular, regarding the OSCCA, does China a pply it in  accordance with the ' clarification letter' 
issued in 2000? Japan expects China to respect the clarification letter issued in 2000. Furthermore, 
in which article does China reflect public comments from Japan in the ongoing process of the revision  
of the OSCCA?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Administration of Commercial Cipher Codes is being revised. Further revisions will be made in 
accordance with the Encryption Law  of the People 's Republic of China after its introduction.  
Page 74 , paragraph 3.124,  
Question 60  
China 's cosmetics regulations have been raised as a topic of discussion in the several TBT Committee 
sessions. Japan recognizes that the "Cosmetics Supervision and Management Ordinance" is included 
in the legislation plan for 2018 by the State Council and CFDA (China Food and Drug Administration). 
Could China provide information on the schedule for the amendment to this ordinance and its 
subordinate regulations, such as the "Provisions for the Administration of Cosmetics Application 
Acceptance" and the "Administ rative Measures on Cosmetic Labelling"?  
Reply  
Given that the existing regulations on cosmetics have been implemented for nearly 30 years, some 
regulations have fallen far short of the current development of the cosmetic industry and regulatory 
practices. B ased on opinions solicited from various parties, the former China Food and Drug 
Administration drafted the Regulations on the Supervision and Administration of Cosmetics (Revised 
Draft for Review). The draft Law is being revised and adjusted in accordance with legal procedures. 
At present, the work is carried out in a proactive and orderly manner.  
Page 74, paragraph 3.128  
Question 61  
Japan is aware that China is a signatory of the International Laboratory Accreditation Conference 
Mutual Recognition Arrangement (ILAC MRA ). Does China accept test reports based on international 
standards such as IEC/ISO, and test reports issued by a testi ng laboratory accredited according to 
relevant and recognized international standards, guides and recommendations (including ISO/IEC) 
by an accreditation body signatory to the ILAC MRA? If not, could China explain the reason?  
Reply  
China actively develops bilateral and multilateral international cooperation and carries out mutual 
recognition in the field of accreditation, playing an important role in boosting the development of 
relevant international organizations. CNAS is now a full member of IAF, PAC, ILA C and APLAC and it 
has signed a number of relevant multilateral agreements.  
Page 74, paragraph 3.128  
Question 62  
China has not accepted test reports that apply the Electromagnetic Compatibility (EMC) standard of 
the International Electro -technical Commissi on (IEC), of which China is a member. However, for 
companies that participate in global value chains GVCs and produce single item for global market, it 
is laborious to meet specific requirements or retest in the local market. Japan believes that promoting 
the acceptance of test reports based on international standards would also enable Chinese 
companies to reduce their burdens on business. Does China plan to accept test reports that comply 
with the EMC standard of the IEC in the near future?  
Reply  
China has  achieved mutual recognition with 54 members since it joined IECEE -CB. China boasts the 
most recognition certificates for many years after joining the Agreement. China has not yet joined 
EMC of the IECEE CB Scheme. China will start the feasibility assessme nt in due course in light of the 
mutual recognition of EMC.  WT/TPR/M/3 75/Add.1  
 
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  Page 74, paragraph 3. 129 
Question 63   
What is the rationale for random CCC conformity tests to be conducted only on imported products? 
If the rationale is to protect consumers, it seems that the tests also ought to be conducted on 
domestically produced products to ensure safety of all consumers.  
Reply  
The CCC conformity tests are NOT conducted only on imported products. The CCC certification 
system conforms to the WTO National Treatment Principle and treats imported products and 
domestic products equally.  
Page 77, paragraph 3.141  
Question 64  
According to the report by the Secretariat, the General Administration of Quality Supervision, 
Inspection, and Quarantine (AQSIQ) is China's national SPS enqui ry point. However, Japan is aware 
that the administrative structure in China was reformed this April and some functions of AQSIQ 
related to importation/exportation have transferred to the General Administration of Customs 
(GACC). Could China provide detail ed information on the recent reform in AQSIQ and GACC? Is 
GACC the current SPS enquiry point instead of AQSIQ? Does GACC conduct quarantine inspection 
as well as customs inspection?  
Reply  
Japan 's understanding is correct.  
Page 77, paragraph 3.146  
Question  65 
The amendment to the Anti -Unfair Competition Law in November 2017 revised the provisions on 
commercial bribery, Could China explain whether there exists a law or regulation that prohibits the 
provision of wrongful gains to foreign public officials.  
With regard to the revision of the provision on confusion acts to include domain name protection in 
the Anti -Unfair Competition Law, could China explain whether there is any law or regulation for 
prohibition of wrongful registration of the domain name?  
Reply  
There is no such penalty in China's  Anti-Unfair Competition Law  as prohibiting the provision of 
wrongful gains to foreign public officials. Article 6 of the Anti-Unfair Competition Law  stipulates that 
operators shall not commit the following confusing acts , which may be misunderstood as being a 
product of another person or having a specific connection with others: (3) Unauthorized use of the 
main body of others domain names, website names and web pages that have certain influence.  
Page 87, paragraph 3.184  
Question 66  
According to the report by the Secretariat, China shall promote the shareholding system for 
commercial SOEs and encourage private investment, while simultaneously maintaining its leadership 
in SOE governance. How does China plan to maintain such  leadership by the government? Does it 
involve the intervention by the Communist Party in the personnel managements of SOEs? How will 
China strike a balance between the maintenance of leadership and the independence of the 
operations of SOEs?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Chi nese government attaches great importance to the fair and equitable participation of state -
owned enterprises in market competition. After more than 30 years of reform, profound changes 
have taken place in the management system and operating mechanism of China's state-owned 
enterprises. State -owned enterprises have been integrated into the market economy and become 
the main independent body participating in market competition. State -owned enterprises do not 
enjoy privileges and comply with the same laws and regulations as other companies in terms of 
obtaining fund, filing bankruptcy and preparing competition legislation.  
Since 2015, the Chinese government has accelerated mixed ownership reform and actively 
developed mixed -ownership economy in accordance with the requirements of improving governance, 
strengthening incentives, highlighting the main business and improving efficiency. We have  first 
carried out pilot demonstrations of mixed -ownership reform in important areas of power, oil, natural 
gas, railways, c ivil aviation, telecommunications and  war industry. We will, and encourage 
companies to establish an effective corporate governance structure for corporate checks and 
balances and a flexible and efficient market -based operating mechanism, accelerating the formation 
of an effective corporate governance structure and flexible and efficient market -oriented 
management mechanism. More than two -thirds of subsidiaries at all levels of the central enterprises 
realizing mixed ownership. At the end of 2017, China est ablished the system that the State Council 
report to the NPC Standing Committee on state -owned asset management, which improved the 
transparency of state -owned asset management.  
State -owned enterprises, listed companies, private companies and foreign -invested enterprises are 
equal market players. The Chinese government has been persisting equal treatment and protection 
for all types of market players.  
Besides  please refer to the replies to Question 21.  
Page 87, paragraphs 3.184 and 3.185  
Question 67  
The notices of the General Office of the State Council (No. 36 [2017] issued on 24 April 2017 and 
No. 69 [2017] issued on 18 July 2017 set a target that a SOEs  corporate system reform was 
scheduled to be completed by the end of 2017. Has the reform already bee n completed? If no, when 
is it expected to be completed?  
Reply  
In July 2017, the Notice of the General Office of the State Council on Printing and Distributing the 
Implementing Plan for Corporate -style Restructuring of Central Enterprises (Guo Ban Fa [2017 ] 
No. 69) was printed and distributed, laying a foundation for the full completion of corporate -style 
restructu ring of central enterprises. In end-2017, the corporate -style restructuring of central 
enterprises was largely completed.  
Page 89, paragraph 3.187  
Question 68   
According to the report by the Secretariat, around 3,000 listed companies received government 
support in 2016 and seven of the top ten companies among them were SOEs. What are the criteria 
for granting such governmental support? Is there  any system to monitor whether the granted 
governmental support has been used for the purpose intended by such governmental support?  
Reply  
SOEs, listed companies, private enterprises and foreign -funded enterprises compete in the market 
on an equal footing.  The Chinese government will always stick to the policy of treating each and 
every one of the market entities equally and fairly and providing them with the same protection. WT/TPR/M/3 75/Add.1  
 
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  There are no subsidies specifically offered to state -owned enterprises. Enterprise s under all kinds of 
ownership will enjoy subsidies equally as long as they are eligible.  
Page 89, paragraph s 3.191  and 3.192  
Question 69  
The report by the Secretariat states that the Tendering and Bidding Law is de fact, the law governing 
procurement by SOEs. However, Japan recognizes that the Tendering and Bidding Law is applied 
only to construction works below the threshold and related facilities or materials. How has China set 
the rules regulating SOEs' procurement which is not covered by the Tendering  and Bidding Law?  
Reply  
All the tendering or bidding activities conducted in China shall be subject to the Tendering and 
Bidding Law . China treats all enterprises equally in this regard.  
Page 91, paragraph 3.195  
Question 70   
According to the report by the Secretariat, China is promoting the use of public -private partnership 
in the area of government procurement. Japan would like to know whether foreign enterprises are 
treated on an equal basis with Chinese domestic enterprises in the process of selection of  
PPP partners.  
Reply  
The current legal basis for China's  government and social capital cooperation (PPP) includes the 
budget law, the government procurement law, and the contract law. China is advancing legislation 
for government and social capital cooperation to regulate PPP activities.  
The main purpose of pro moting the PPP model is to invite market entities, through open competition, 
to participate in the provision of public services, so as to enhance the quality and efficiency of public 
services. The operation mechanism of China's  PPP project has drawn on int ernational best practices, 
dividing the project operation process into five stages: identification, preparation, procurement, 
execution, and handover.  In short, first, project proposals are put forward by the government or 
social capital; second, project i mplementation plans are prepared, the feasibility and financial 
affordability (Fiscal Affordability) of the projects adopting the PPP model are discussed and examined, 
and eligible projects are included in the national project library which will later be s ubject to unified 
management, full life -cycle information disclosure, and social supervision; third, through open 
competition, cooperation partners are selected on the government procurement platform, and 
cooperation agreements are signed; fourth, project companies (Special Purpose Vehicle) will be 
established according to the cooperation agreement, responsible for the project investment, 
construction and operation, and obtaining corresponding returns based on project output 
performance; fifth, as the coope ration period expires, projects will be handed over to government 
departments according to the contract.  
Uniform rules, standardized operation, openness and transparency, and performance orientation are 
the key words for promoting PPP in China.  
Page 92, paragraph  3.198  
Question 71  
According to the report by the Secretariat, while the Government Procurement Law retains its 
"buy-domestic" provision, in practice, China provides non -discriminatory and equal treatment to all 
products manufactured in China regard less of the degree of foreign affiliation or ownership of 
producers. If this is the case, Japan would like to know the rationale for the necessity for China to 
retain the "buy -domestic" provision in the Law and to be informed on whether China has an intens ion 
to delete such provision in the near future.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
It is a globally accepted practice to leverage government procurement to protect domestic industries 
and facilitate domestic development. China has no intention to delete such provision at present.  
Page 95, paragraph 3.213  
Question 72  
According to the report by the Secretariat, with regard to environmental protection, China has issued 
lists of energy -saving products and environment -friendly products to provide more favourable  
treatment to the products on the lists in government procurement. Japan would like to ask the lists 
contain products manufactured overseas and to confirm if China treats products manufactured 
overseas and domestic products equally in the process of making  the lists.  
Reply  
The lists include products manufactured overseas, without specifying the origins of products.  
Page 96, paragraph 3.217  
Question 73  
The report by the Secretariat states that 2,629 complaints raised by suppliers were accepted 
in 2015. If a complaint is accepted, what kind of procedures would be taken by the procuring 
organizations?  
Reply  
The financial authorities will handle complaints in accordance with procedures stipulated in the 
Government Procurement Law of the People 's Republic of China, the Implementing Regulations of 
the Government Procurement Law of the People 's Republic of China, and the Regulations on 
Procurement Questioning and Complaining Mechanism (MOF Order No. 94).  
Page 96, paragraph 3.218  
Question 74   
There has been no pr ogress on the process of GPA accession since China tabled its sixth offer 
in 2014. What steps does China intend to take to reinvigorate its accession process? What is a major 
barrier to the submission of new offer?  
Reply  
China 's Ministry of Finance is work ing together with the departments concerned to comprehensively 
improve its bid, and will submit it to the WTO as soon as possible.  
Page 96, paragraph 3.219  
Quest ion 75  
According to the report by the Secretariat, it remains China's  priority to conclude its GPA accession 
before liberalizing its government procurement market through bilateral/regional tracks. Could China 
explain reasons for prioritizing the GPA accession before the negotiation of market access terms on 
government proc urement in EPA/FTA regardless of the stagnation of the GPA accession process since 
2014? Could China provide the schedule for the conclusion of its GPA accession?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China 's GPA accession  is impossible to be achieved by the country alone. It, to a large  extent, 
depends on the positions and expectations of all participating parties.  
Page 96, paragraph 3.220  
Question 78  
Japan recognizes that the "Regulations on Technology Import and Export Administration" is still 
effective, although Japan has been raising  its concern about the regulation, e.g. in the previous 
Trade Policy Review of China held in 2016. As President Xi Jinping stated at the Boao forum held 
in April this year that China would strengthens IP protection for foreign and domestic enterprises, 
Japan is of the view that China has been engaging in improving the protection and utilization of IPR 
for both Chinese and non -Chinese right holders. Taking into account the above, Japan considers that 
the regulation should be amended because it accords less favourable  treatment to foreign 
IPR holders. Does China plan to amend the regulation, and, if not, could China explain a reason(s) 
that China cannot amend this regulation?  
Reply  
The Regulations on Technology Import and Export Administration  is designed to maintain the 
equality between both sides of trade. It promotes market competition by protecting the receiving 
party that in disadvantage from unequal treatment, rather than discriminates non -Chinese right 
holders. As known to all, this regu lation has been in effect for 16 years. As the domestic and abroad 
environment for technology trade has changed a lot, China is willing to estimate the amendment of 
the regulation carefully and comprehensively. In addition, considering the amendment is rel ative to 
the business regulation and rights and interests protection of many companies, China will keep being 
active in dialogue and hearing demands and suggestions and advices from all aspects in the whole 
process, in order to promote healthy development of technology tread.  
Page 96, paragraph 3.22 0 
Question 79   
Article 24(3) of the "Regulations on Technology Import and Export Administration" provides that 
[w]here the receiving party to a technology import contract infringes another person's lawful rights 
and interests by using the technology supplied by the supplying party, the supplying party shall bear 
the liability therefore. " On the other hand, Article 353 of the Contract Law of China provides that the 
liability for compensation in the case of infringe ment of a third party 's rights and interests may be 
separately provided for by a contract between the parties. Japan believes that this difference appears 
to accord less favourable  treatment with regard to the "protection " of intellectual property to 
non-Chinese nationals compared to Chinese nationals, and thus is inconsistent with Article 3 of the 
TRIPS Agreement. Japan would appreciate it if China could provide its view on this matter.  
Reply  
Firstly, Article 24(3) does not violate the Contract Law of China. Article 353 of the Contract Law of 
China provides that where the relevant laws or administrative regulations provide otherwise in 
respect of technology import or export contracts, such provisions shall prevail, Article 24(3) is such 
a special regula tion, which is in consistent to the Contract Law of China.  
Secondly, Article 24(3) is designed to stipulate the guarantee liability of defects of the giving party, 
not to undermine IPR protection. It is reasonable that the giving party guarantees the legit imacy of 
the technology, because they know more about the contents and ownership of the technology.  
Meanwhile, Article 24(3) is helpful to protect the IPR rights of the third party or non -Chinese 
nationals rather than undermine such protection.  WT/TPR/M/3 75/Add.1  
 
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  Page 96, p aragraph 3.220  
Question 80   
Article 27 of the "Regulations on Technology Import and Export Administration" states that 
improvements in the licensed technology belong to the improving party. In contrast, for domestic 
technology transfer or licensing contrac ts, Article 354 of the Contract Law of China stipulates that 
parties may provide in their contract for the method of sharing technological achievements resulting 
from improvements. Japan believes that this difference appears to accord less favourable  treatment 
with regard to the protection of intellectual property to non -Chinese nationals compared to Chinese 
nationals, and thus is inconsistent with Article 3 of the TRIPS Agreement. Japan would appreciate it 
if China could provide its view on this matter.  
Reply 
Firstly, Article 27 does not violate the Contract Law of China. The Contract Law of China also prohibits 
one party requires the improving party to provide the improved technology freely or transfer the 
improved technology without mutual -beneficial inte ntions, or acquire and share the intellectual 
property right of the improved technology freely.  
Secondly, Article 27 is designed to guarantee the improving party to enjoy the IPR of the improved 
technology properly, whether it is the receiving party or th e giving party.  
Thirdly, Article 27 does not prohibit the improving party to deal with its IPR according to law or to 
share with or transfer the IPR of the improved technology to the other party with mutual -beneficial 
intentions or certain compensation.  
Page 97, paragraph 3.221  
Quest ion 76  
According to the "China Manufacturing 2025", China will encourage Chinese enterprises to grant 
licence to foreign enterprises. Japan would like to know the details of the plan, if any, China is 
considering in this regard.  
Reply  
The China Manufacturing 2025 is an instructive, transparent and open guideline. China encourages 
Chinese enterprises to conduct proper technological cooperation and exchange with foreign 
enterprises. Meanwhile, China welcomes foreign investor s and enterprises to participate into the 
China Manufacturing 2025.  
Page 97, paragraph 3.224  
Question 77   
Japan would like to know whether China has plan of or at least considering ratifying or acceding to 
the UPOV 1991, the Marrakesh VIP Treaty, the Trade mark Law Treaty (TLT) and the Singapore 
Treaty on the Law of Trademarks (STLT) in the near future, and, if so, the state of play of such plan 
or consideration.  
Reply  
China pays attention to the development of the Patent Law Treaty, the Singapore Treaty on the Law 
of Trademarks (STLT) and the Marrakesh  VIP Treaty and conducts related research. The ratification 
of the Patent Law Treaty, the Singapore Treaty on the Law of Trademarks (STLT), the Marrakesh  
VIP Treaty and the UPOV 1991 is still under consideratio n. WT/TPR/M/3 75/Add.1  
 
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  Page 98, paragraph 3.226  
Question 81   
We understand that the protection of employee invention is already provided in China's Patent Law 
and the Rules for Implementation of the law. Could China elaborate reasons for establishing a new 
regulation regardin g employee invention?  
Reply  
There are two purposes for establishing the Regulation on Service Inventions. Firstly, to solve the 
problem that the original laws and regulations on service inventions are too general and not practical. 
Secondly, to improve the  situation that inventors'  enthusiasm are damped as their rights and 
interests are neglected or infringed. The Regulation on Service Inventions further specified the 
related rules in the Patent Law and the Rules for Implementation of the law to make them m ore 
practical. In addition, procedural rules are supplied, measures and ways for remedying the rights 
and interests of investors are defined to make sure their reasonable rights and interests are fully 
protected.  
Page 98, paragraph 3.226  
Question 82   
In various countries, an applicant is allowed to submit an application (for patents and others) in 
foreign languages, especially in English, and to correct mistranslation of the translated sentences 
when necessary. Could China explain whether China plan to ad opt such system?  
Reply  
According to Article 3 in the Rules for the implementation of the Patent Law, any document submitted 
in accordance with the provisions of the Patent Law and these Rules shall be in Chinese; where any 
certificate(s) or certifying docu ment(s) submitted in accordance with the provisions of the  Patent 
Law and these Rules is in a foreign language, the patent administration department under the State 
Council may, when it deems necessary, request a Chinese translation of the certificate(s) o r the 
certifying document(s) be submitted within a specified time limit. For the time being, China has no 
plan to adopt such system to allow the applicant to submit application in multiple languages.  
Page 99, paragraph 3.230  
Question 83  
According to China' s revised patent examination guidelines, examiners have to examine the 
supplemental data submitted after the application date. Japan would like to know whether, in 
practice, examiners never fail to examine such supplemental data in the process or not.  
Reply 
According to the Decision of the State Intellectual Property Office on Amending the Guidelines for 
Patent Examination issued on 28 February 2017, Section 3.4, Chapter 10, Part II was revised. The 
expression shall not be taken into consideration in the sentence any embodiment and experimental 
data submitted after the date of filing shall not be taken into consideration was deleted, and the new 
sentence is any experimental data submitted after the date of filing an application shall be examined 
by the exa miner. The technical effects demonstrated by the complementary experimental data shall 
be available to the technicians in the corresponding technical fields from the disclosure in patent 
applications. It clarified the misunderstanding that any embodiment a nd experimental data 
submitted after the date of filing application shall not be taken into consideration and clearing the 
principle that any experiment data supplied during examination shall be examined.  WT/TPR/M/3 75/Add.1  
 
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  Page 102, paragraph 3.246  
Question 84  
The report by  the Secretariat states the State Administration for Industry and Commerce (SAIC) has 
consulted with other competent authorities including the Ministry of Agriculture and the AQSIQ to 
discuss and to establish a joint GI certification mechanism since 2016. Could China provide 
information on how trademark certification system and sui generis GI system will be integrated? 
Also, Japan recognizes China has reformed its administrative structure and the jurisdiction over GI 
is integrated into the Intellectual Depa rtment this year. After the administrative reform, how is the 
situation of consideration about the revision of the GI system and consideration on the schedule by 
the Intellectual Department?  
Reply  
The structural reform is still in process, the reform plan states that the duties of the State Intellectual 
Property Office, the duties of trademark administration of the State Administration for Industry and 
Commerce, and the administrative duties relating to geographical indications of places of origin of 
the Ge neral Administration of Quality Supervision, Inspection and Quarantine shall be consolidated 
to reorganize the State Intellectual Property Office, the specific works are to be specified when the 
function allocation and internal organs of the restructured S tate Intellectual Property Office are set.  
Page 103, paragraph 3.246  
Question 85  
The report by the Secretariat states that SAIC has consulted with other competent authorities 
including the Ministry of Agriculture and the AQSIQ to discuss and to establish a  joint GI certification 
mechanism. Japan would like to know the difference between the current GI system and the joint 
GI mechanism. Japan would also like to ask China to provide the detailed schedule for launching the 
new mechanism.  
Reply  
According to the  Structural Reform Plan of the State Council issued in March  2018, the restructured 
State Intellectual Property Office will take care of the registration and administrative adjudication 
works of trademark, patent, geographical indications of places of orig in. The State Intellectual 
Property Office is responsible for the protection of GI.  
Page 106, paragraph 3.2 59 
Question 86  
It is important for judges to sufficiently understand the details of technical issues in IPR litigations 
and, to this end, technical researchers play an important role. Could China elaborate to what extent 
such technical researchers are involved and whether China has planned to reinforce their 
involvement in the IPR litigations?  
Reply  
China believes it is very important for judges to su fficiently understand the details of technical issues 
in IPR litigations and technical researchers'  involvement in IPR litigations plays an active role in 
promoting scientific and fair judgment of IPR litigation. China will consider reinforcing the importa nce 
of technical researchers in IPR litigations.  WT/TPR/M/3 75/Add.1  
 
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  Page 106, paragraph 3.259  
Question 87  
According to the report by the Secretariat, all public security authorities above the prefecture and 
city levels in China have IPR crime coordinating activities to crack  down counterfeiting activities. 
Japan would like to ask China to provide the details about the activities or initiatives which enable 
local governments in China achieve the same level of enforcement as the central government.  
Reply  
The Chinese government attaches great importance on the protection of intellectual property, 
regarding it as the biggest driver to promote China's  economic competitiveness, we, therefore, have 
taken various measures to implement and promote the work from the perspective of natio nal 
development strategy. First, authorities have been established to combat IPR infringements and 
counterfeits from the central level to sub -central level, responsible for lead and coordinate all regions 
and relevant authorities to combat IPR infringement s and counterfeits. 27 governmental 
departments on intellectual property are member units of this leadership authority. Second, IPP has 
been included in the assessment system on the social security governance. Every year, the 
leadership authority organizes  annual assessment on national combating counterfeits, increasing 
sub-central governments attention on and support for the counterfeited work. Third, the public 
security department is vigorously promoting the implementation of big data, establishing a plat form 
of data judgment and coordination in the public security department. As for key clues, the public 
security department will organize, lead and coordinate all local public security authorities involved 
in this case from the production, supply to distrib ution of counterfeits, to examine those clues and 
track for more information to form a new pattern of information -led detection, regional coordination 
and targeted combat.  
Page 106, paragraph 3.259  
Question 88  
According to table 3.30, while the number of t he cases handled by the Customs at the border and 
that of the trademark disputes dealt with by the Government are decreasing, the numbers of other 
cases are on a rising trend. How does China evaluate these recent trends?  
Reply  
Chinese government has constantly strengthened protection on intellectual property rights over the 
recent years and the environment for protecting intellectual property rights has been further 
improved. The decrease of the number of the cases of the trademark disputes is closely  related with 
the measures above.  
Page 108, paragraph 3.267  
Question 89  
According to the report by the Secretariat, the Trademark Office (TMO) launched a campaign of 
"Traceability", which focuses on the protection of well -known trademarks, and foreign -related 
trademarks, aiming at combating trademark infringement. Japan would like to ask China whether 
well-known trademarks include marks which are well known in other countries but not well known 
in China.  
Reply  
For the time being, the well -known trademarks t hat protected by the Trademark Law of China do 
not include the marks which are well known in other countries but not well known in China.  WT/TPR/M/3 75/Add.1  
 
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  Page 109, paragraph 3.271  
Question 90   
According to the report by the Secretariat, China Customs is in charge of IPR e nforcement at the 
border in accordance with the Customs Law. Do the Customs Law or other laws or regulations 
prohibit from importing/exporting counterfeit or pirated goods for personal use?  
Does China Customs have an authority to seize and destroy such cou nterfeit goods for personal use?  
If answers for the above questions are "yes", could China provide us with English scripts of the 
related articles?  
Reply  
Regulations of the People 's Republic of China on Customs Protection of Intellectual Property Rights 
Article 31: The articles carried on a person, or posted, into or out of the territory of China shall be 
disposed of by the Customs as infringing goods if the quantity of such articles exceeds the reasonable 
limit for personal use and such articles have infri nged any intellectual property right prescribed by 
Article 2 of these Regulations.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , page 114, paragraph 4.9  
Ques tion 91  
Japan would like to double -check whether the dat a of in -quota imports shown in T able 4.4 is really 
that for years 2015 and 2016. Is not that for years 2013 and 2014?  
Reply  
As we double -checked, the data of in -quota imports of agricultural goods shown in T able 4.4 is for 
years 2013 and 2014, and that for years 2015 an d 2016 will be disclosed as soon as possible.  
Page 123, paragraph 4.26  
Question 92  
The report by the Secretariat states: "the State (China) continues to hold the monopoly for 
administering the right to produce, manufacture, sell, transport, and import and export tobacco and 
tobacco products." Does China have an intention to take any liberalization measures in the future 
especially with regard to tobacco retailing?  
Reply  
China adopts a tobacco monopoly management system. The Law of the People 's Republic of C hina 
on Tobacco Monopoly stipulates that the state performs monopoly management on the production, 
sale, import and export of tobacco products and implements a tobacco monopoly permission system. 
The Special Administrative Measures (Negative List) for Fore ign Investment Access (Edition 2018) 
stipulates that investments in all wholesale and retail activities of tobacco, cigarettes, re -dried 
tobacco and other tobacco products are prohibited. The time for cancelling  or relaxing access 
restrictions is not expli citly stated in the List.  
Page 124, paragraph 4.31  
Question 93  
According to the report by the Secretariat, the wheat stockpile and the milled rice stockpile in 
2017/2018 reached in 111 million tonnes  and 86.5 million tonnes  respectively. Would China WT/TPR/M/3 75/Add.1  
 
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  elabor ate its idea on how much would be the proper volume of these stockpiles? In addition, if China 
intends to reduce the volume of these stockpiles, how does China achieve it without distorting 
market? If China intends to use these stockpiles for industrial pr oducts such as starch and ethanol, 
would China provide information on the current situation of such usage?  
Reply  
According to relevant rules, all stocked food should be auctioned on a grain trading platform. The 
government will choose to auction the stocke d food according to factors such as production and 
demand and market prices, and ensure that the relevant auctions will not have a negative impact 
on the market and will not harm the interests of Chinese farmers and exporting countries. The 
specific use of  the reserve grain is determined by companies participating in the auction and the 
government will not intervene.  
4.3 Manufacturing , page 141, paragraph 4.87  
Question 94  
MCO (multi -component semiconductors) is one of the products covered by the ITA (Information 
Technology Agreement) expansion. As a member of the ITA expansion, Japan is aware that China 
has committed to eliminate tariffs on all MCOs products (some products with staging).  
(a) In HS2017 nomenclature change for MCOs, could China explain why China chose to apply 
arithmetic average of the previous rates of duty for calculating the new duty rate rather than the 
other three methodologies recognized by the WTO document WT/L/995?  
(b) Japan is aware that IGBT  (Insulated Gate Bipolar Transistor) -IPM Intelligent Power Module, 
which is a MCOs product, should be classified into HS854239 through HS2017 transposition 
according to the WCO Classification Opinions on power module. However, China continues to impose 
tariffs 5% on IGBT -IPM assuming that it  falls under HS850440. Could China explain why China 
classifies IGBT -IPM under HS850440?  
Reply 
Question (a): the calculation method we adopted is in line with international rules and is determined 
according to the needs of China's transfer work. For questi on (b), the IGBT module corresponds to 
different positions according to the product characteristics in the tariff classification. If it is a MCO 
with controller and processor functions, it is classified as HS8542.3111 and the MFN tariff rate is 5%; 
if it is a MCO with functions other than a controller, processor, memory, or amplifier, it is classified 
as HS8542.3910, and the current MFN rate is 2.1%. IGBTs are often resi stant to high voltages, 
which, i f not composed of MCO, are classified as HS8504.4091 and  the current MFN tariff rate is 5%. 
HS8542.3111, HS8542.3910, HS8504.4091 are all ITA expansion products, and China is also 
reducing tariffs on related products year by year.  
Page 141, paragraph 4.87  
Question 95   
According to WTO document G/IT/W/40/Suppl.2, China's comment on ITA item 200 in Attachment 
B refers to the classification of projector falling under 852841ex and 852851ex in HS2007. Japan 
would like to confirm where China classifies ITA item 200 under each HS sub -heading in HS1996,  
2002, 2007, 2012 and 2017.  
Reply  
The ITA item 200 is Projection Display Parts, China's  WTO commitments are based on the 
1996 version of the Tax Code, which has been approved by all parties including Japan. Currently, 
the taxes for relevant products have a ll been reduced to zero.  WT/TPR/M/3 75/Add.1  
 
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  Page 141, paragraph 4.93  
Question 96   
According to the Access Administration of New Energy Vehicle Manufactures and Products, 
manufactures are requiring to "mastering" the requested technologies. Could China explain what the 
term "master" exactly means?  
Reply  
In regard to master the technologies necessary for the development and manufacture of new energy 
vehicles, master means a deep understanding. As long as enterprises can provide required evidence 
regarding the capability, numbe r and positions of R&D personnel, R&D process, design 
specifications/calibration matching/test verification specifications, product information database, 
development tools/software and equipment, trial/test/debug ability, test verification capability, and 
design output, they would be deemed as mastering the technologies. For detailed review 
requirements, please refer to the seven  requirements on the design and development capability 
clearly stipulated in the Market Access Review Requirements.  
Page 145, paragraph 4.110  
Question 97   
What does China consider the causes of excess capacity issues in industrial sectors other than steel, 
in particular aluminium  and semi -conductor sectors, and what kind of measures has China taken to 
tackle the causes?  
Reply  
Overcapacity is a global problem;  other parties should also put forward specific de -capacity goals 
and measures to cope with the challenge of global overcapacity.  
There are overcapacity problems in China's  electrolytic aluminium  industry, but not in the alumi nium 
industry in the broad sense. The root cause of overcapacity in global aluminium  industry is the 
slowing global economic growth and the decreasing demand for electrolytic aluminium . To address 
overcapacity in electrolytic aluminium  industry, China stri ctly controls the growth of electrolytic 
aluminium  capacity and requires all electrolytic aluminium  construction programme s conduct 
capacity swap. China eliminated backward productivities that cannot  meet the requirement of related 
laws and regulations and  actively promote the consumption of aluminium  in fields of electricity, 
construction and transportation in order to broaden the domestic market for aluminium . 
The semi -conductor industry in China has no overcapacity problem.  
Page 145, paragraph 4.112  
Question 98  
According to the report by the Secretariat, RMB100 billion has been allocated to a special fund to 
relocate workers affected by capacity reduction in the steel (and coal) sectors. How does China 
monitor the use of such fund?  
Reply  
In May 2016, the Ministry of Finance issued the Measures for the Management of the Special Funds 
for Structural Adjustment of Industrial Enterprises (Cai Jian [2016] No. 253, see annex), and 
arranged 100 billion special award and subsidy funds to support the resolution  of excess capacity. 
The relevant provincial people 's governments and the State -owned Assets Supervision and 
Administration Commission of the State Council are responsible for formulating the implementation 
plans for the regional and central enterprises re spectively to resolve the excess capacity in the steel 
and coal industries and submitting them to the State Council for filing. After the Development and 
Reform Commission and other departments comprehensively balance and determine the tasks of all WT/TPR/M/3 75/Add.1  
 
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  regiona l and central enterprises to resolve steel and coal excess capacity, the Ministry of Finance 
will allocate the award and subsidy funds according to the relevant requirements of the fund 
management measures.  
4.4 Services , page 149, paragraph 4.120  
Question 99  
According to the Table 4.24 of the report by the Secretariat, "For value -added telecom services 
(VATS), foreign shareholding cannot exceed 50%, except for electronic commerce, Japan would like 
to know the reasons for such restriction and whether China plans to deregulate it in the near future.  
Reply  
Upon China's  accession to the WTO in 2001, it committed  to open part of its value -added telecom 
services, with foreign shareholding ratio less than 50%. It was a big accession commitment made 
in telecom by C hina as a developing country. In recent years, China has been actively promoting 
the opening up of the telecommunications, including relaxing foreign shareholding ratio limits in 
operational electronic commerce business across China, opening eight value -added telecom services 
in the Shanghai Free Trade Zone, six of which do not set shareholding ratio limits. Under the recently 
released Special Administrative Measures (Negative List) for Foreign Investment Access to Pilot Free 
Trade Zones (2018 Revision), th e policies for the opening up of telecom in the Shanghai Free Trade 
Zone will be introduced in other free trade zones. China will remain committed to the continuous 
opening up of telecom, and is willing to consult with its trading partners on multilateral and regional 
free trade arrangements on the basis of mutually beneficial and win -win cooperation.  
Page 152, paragraph 4.129  
Question 100  
What are the regulations for Mobile Virtual Network Operators (MVNOs)? Also, how are they different 
from the regulation s for Mobile Network Operators (MNOs)?  
Reply  
For the relevant regulations for Mobile Virtual Network Operators (MVNOs), please refer to the 
Catalogue of Telecommunications Services and the Notice on the Mobile Communication Resale 
Business for Commercial Use (MIIT Telecom. Dept. Doc. No. [2018] 70) released on 28 April 2018. 
According to the Catalogue of Telecommunications Services, the mobile communication resale 
business is cellular mobile communication service provided in a resale way. Private firms can  buy 
mobile telecom services from basic telecom services operators with mobile networks, repackage 
those services into their own brands and sell them to end users. Mobile communication resale 
enterprises do not build themselves mobile communication network  infrastructure such as wireless 
network, core network, and transmission network.  
Page 152, paragraph 4.129  
Questio n 101  
Could China elaborate the progress of preparatory work for official and nation -wide implementation 
of scheme for MVNO reflecting the results of the pilot scheme and expected time frame of that 
implementation?  
Reply  
On 28 April 2018, the Notice on the Mobile Communication Resale Business for Commercial Use 
(MIIT Telecom. Dept. Doc. No. [2018] 70) was released, stipulating that starting f rom 1 May, the 
scheme of mobile communication resale business will be officially introduced across China and 
opened to foreign investment, putting an end to its pilot stage.  WT/TPR/M/3 75/Add.1  
 
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  Page 152, paragraph 4.131  
Question 102   
What international agreements, arrangement , and documents such as MoU, regarding international 
mobile roaming does China have?  
Reply  
Telecom service fees including international mobile roaming fees in China are charged at market -
regulated prices, determined by enterprises themselves. In recent yea rs, China's telecom enterprises 
have continuously reduced the internet transit settlement fees by increasing negotiations with 
overseas operators. The international roaming fees, therefore, have been reduced year by year. 
Under the free trade agreement bet ween China and South Korea, the two sides have agreed to 
encourage telecom service providers to reduce the international roaming settlement prices between 
these two parties and promote the reduction of international roaming fees. In May  this year , at the 
China-Japan -Korea Information and Communication Ministerial Meeting held in Tokyo, the ministers 
from these three countries reached an agreement on the reduction of international roaming fees, 
and will cooperate to reduce charges for mobile phone calls and data traffic between China, Japan 
and Korea.  
Page 152, paragraph s 4.134  and 4.135  
Question 103   
According to the Ministry of Industry and Information Technology Notice No. 32 of 2017, the purpose 
of using a private line including VPN is limited to internal use, and the connection to domestic and 
overseas data centres  or business platforms is prohibit ed. Japan would like to know the laws and 
regulations which stipulate the measures above.  
Among the service areas where China committed to liberalizing fully or partially under the GATS, 
there are service businesses that routinely send and receive data wit h data centre  (such as data 
processing service, travel agency and tour operator service, lawyer and accountant), and routinely 
use private lines as a reliable means for that. Restrictions on the use of the private lines may impede 
the provision of the serv ice areas committed by China.  
Reply  
The provisions of the Notice on Cleaning Up and Regulating the Internet Access Service Market (the 
Notice) on cross -border operation activities are mainly based on the Measures on Administration of 
International Communic ation Import and Export Board (Order No. 22 of the former Ministry of 
Information Industry). The target of those provisions is enterprises or individuals that rent 
international private lines or VPN and carry out cross -border telecommunications business ac tivities 
without the authorization or the approval of the Chinese telecommunications authorities and without 
the qualifications for practicing international telecommunications business. The relevant provisions 
of the Notice will not affect the normal cross -border access of the Internet by domestic and foreign 
companies and users, or affect business activities that are in accordance with laws and regulations. 
Foreign trade enterprises and multinational enterprises, due to their demands for special lines for 
cross-border networking, may rent from a telecommunications services operator recognized by law 
by the International Communication Import and Export Board, which will not be affected by relevant 
provisions. Any activities carried out in China including pro duction shall be in accordance with 
Chinese laws and regulations. All legal operations and activities will be protected by the law.  
Page 153, paragraph 4.136  
Question 104   
With regard to the Cybersecurity Law, could China assure that implementing rules, regulations and 
standards as well as the actual implementation of the law are and will be in conformity with the 
national treatment obligation under the WTO Agreement?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
It is totally within each country's  sovereignty to learn the international practic es and formulate 
related laws and administrative regulations based on the national conditions to administrate the 
Internet accordingly. The purpose of formulating and carrying out the Cybersecurity Law of People 's 
Republic of China is to safeguard the nati onal sovereignty and security in cyber space and the public 
interests, and to protect the rights and interests of citizens, law persons and other organizations. It 
is not meant to limit the foreign enterprises, technologies and products entering Chinese ma rket or 
the free transaction of data legally.  
Page 153, paragraph 4.13 6 
Question 105   
In the process of formulating detailed rules, regulations and standards of the Cybersecurity Law, did 
and will China reflect the opinions submitted by foreign companies? If so, could China share with us 
specific examples?  
Reply  
During the development of the Regulations on the Security Protection of Critical Information 
Infrastructure (Proposed Draft), Catalogue of Network Critical Equipment and Network Security 
Special Pro ducts, Guidelines for Data Cross -Border Transfer Security Assessment and other laws and 
regulations, we have sought public comments from both domestic and foreign enterprises and 
associations. Some of those laws and regulations are currently being further improved based on 
various opinions.  
In addition, the development of the standards is transparent, we sought for public comments and 
adopted advice from all walks of life as well as advice from foreigners. We welcome and support 
more companies, universities, research institutes and other parties to participate in setting the 
standard.  
Page 153, paragraph 4.139  
Question 106   
Based on the definition in Article 31 of the Cybersecurity Law, Japan understands that the term "the 
important data" refers to those of importance for the nation. However, as for "critical data," Annex 
A of the Guidelines for Data Cross -Border Transfer Security Assessment lists a lot of data that are 
usually indispensable in doing business, including information on production, sales, research and 
development by electronics information enterprises (A6c), information on credit research on 
enterprises (A20), and registration information on e -commerce platforms (A27b). Japan would like 
to know the reason for which those data are sub ject to the security assessment as in the case of 
important information which can seriously harm national security or economy.  
Reply  
In May and August 2017, the Guidelines for Data Cross -Border Transfer Security Assessment 
(Proposed Draft) was published by  the National Information Security Standardization Technical 
Committee (NISSTC) for public comments. Currently, the NISSTC is making the effort to develop 
the Guidelines for Data Cross -Border Transfer Security Assessment and further improving it based 
on various opinions.  
Page 153, paragraph 4.139  
Question 107  
As the scope of "critical information infrastructure ", written in Article 31 of China's Cybersecurity 
Law, is vague and can be broad, it seems to be very difficult for foreign companies to judge wheth er 
or not they are classified as critical information infrastructure operators that are required to store 
data within China. This lack of clarity could generate uncertainty for business operations in China. WT/TPR/M/3 75/Add.1  
 
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  Japan would appreciate if China could let us know  about the exact scope of "critical information 
infrastructure ", which will be formulated by the State Council according to the Article 31.  
Reply  
At present, the Cyberspace Administration of China is working with relevant departments to study 
and develop t he Regulations on the Security Protection of Critical Information Infrastructure based 
on the requirements of the Cybersecurity Law of the People 's Republic of China, to give guidance to 
relevant areas and to identify the scope of critical information infrastructure.  
Page 153, paragraph 4.139  
Question 108   
Articles 21 and 31 of the Cyber Security Law provide the introduction of the grading of classified 
cybersecurity protection system regarding network system and important information infrastructure. 
In order to implement this protection system, the draft of the "Information Security Technology -
Guidelines for grading of classified cybersecurity protection" (hereinafter referred to as "the draft 
guidelines") was made public in January 2018.  
There is a des cription in the preamble of the draft guideline that "this standard is a substitute for 
GB/T 22240 -2008" Information Security Technology -Guidelines for grading of classified 
cybersecurity protection." Is the understanding correct that the "Multi -Level Prot ection Scheme 
(MLPS)" is applied to the target of classified information which is subject to the draft guidelines, 
instead of GB/T 22240 -2008" Information Security technology -Guidelines for grading of classified 
cybersecurity protection"?  
Reply  
This guidel ine is not issued officially and most of the contents are still under discussion.  
Page 154, paragraph 4.141  
Question 109  
Article 37 of the Cybersecurity Law stipulates the obligations of storing personal information and 
important data within China and of conducting security assessments in transferring such information 
and data abroad. However, the obligations are not clear enough to be rational in light of the purposes 
of the Law to maintain national security or public interests. Additionally, if foreign c ompanies which 
provide the services in the sectors where China commits liberalization are to be exposed to "virtually" 
less competitive situation than the local companies by owing additional costs, for example, installing 
of new servers or conducting secur ity assessment, or by losing of immediacy of settlement, it may 
violate the national treatment obligation under Article 17 of the GATS.  What does China's  understand 
regarding the consistency of Article 37 of the Cybersecurity Law with Article 17 of the GAT S? 
In regard  to the obligation of security assessment, the "Information Security Technology -Guidelines 
for Data Cross -Border Transfer Security Assessment" lists wide range of "important data" which is 
subject to security assessment. Among these important d ata, there are a lot of data that are usually 
indispensable in doing business, including information on production and sales by electronic 
information companies and information on credit assessment of companies. However, the 
relationship between the restri ction to these business data and the purpose of the law to maintain 
national security and public interests is unclear. Could China elaborate the rationale for including 
such business data as important data and provide the legislative fact?  
Reply  
According to rul es of GATS, each member country  is entitled to administrate or employ new 
regulations on the services provided within its territory in order to fulfil the national policy goals. 
This is a proper right granted by the WTO. The purpose of formulating th e Cybersecurity Law is to 
safeguard national cybersecurity, protect people 's interests and promote Internet information spread WT/TPR/M/3 75/Add.1  
 
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  legally and orderly. Besides, this law applies  to Chinese and foreign service providers equally, which 
will not affect China to fulfil its commitments that made before entering the WTO.  
Page 154, paragraph 4.141  
Question 110   
With regards to the security assessment requirements, Article 37 of the Cybersecurity Law provides 
that it targets "critical information infrastructure operators," but, in Article 2 of the "Measures on 
the Security Assessment of Cross -Border Transfer of Personal Information and Important Data," the 
scope of the law is extended to "network operators." Japan would like to know the difference between 
critica l information infrastructure operators and network operators and the reason for the difference 
of the scope.  
Reply  
The provisions of the Cyber Security  Law of the People's Republic of China on data storage within 
Mainland China and security assessment of c ross-border transfer are requirements for critical 
information infrastructure operators, not for all network operators. These restrictions apply not to 
all data but only to important data that have great significance to China, but are not necessarily 
impor tant to enterprises and individuals. As for data that must be transferred overseas, the law 
stipulates that, cross -border transfer of data is allowed, as long as the security assessment believes 
that the data do not harm the public interest of the country and society. The Chinese government 
formulates and implements the Cybersecurity Law of the People's Republic of China and its 
supporting regulations, with the aim to safeguard national sovereignty in cyberspace, national 
security, and the interests of the public, as well as protect the rights of civilians, legal persons and 
other organizations. The purpose is not to restrict foreign enterprises, technologies and products 
from entering the Chinese market, or restrict the orderly and lawful flow of network da ta. Those 
laws and regulations do not target at certain countries or regions, or restrict international trade, but 
apply equally to all countries and regions. In order to implement the relevant provisions of the 
Cybersecurity Law of the People's Republic o f China, the Chinese government is formulating the 
Measures on the Security Assessment of Cross -Border Transfer of Personal Information and 
Important Data.  
Page 164, paragraph 4.204  
Question 111   
Regarding construction services, China has made a reservatio n in its GATS commitments that wholly -
owned foreign enterprises are restricted from conducting businesses in four types of construction 
projects. Could China elaborate the reasons behind these reservations? In addition, does China 
consider withdrawing such  reservation?  
Reply  
As per China 's GATS commitments, the construction service categories listed in China 's schedules of 
concessions on services and trade has been opened up for foreign investment. In the Shanghai Free 
Trade Zone, we have lifted restriction s on foreign -invested construction enterprises who could 
previously only undertake construction projects with over 50% foreign ownership ratio. In the future, 
China will assess the implementation of relevant measures in the Shanghai Free Trade Zone where 
appropriate and make further decisions based on the assessment results. China is willing to consult 
with its trading partners in terms of multilateral and regional free trade arrangements on the basis 
of mutually beneficial and win -win cooperation.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  JAPAN – FOLLOW -UP 
Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.2 Creating more attractive investment environment , page 7, paragraph 3.15  
Question 5   
China decided in November 2017 to allow foreign ownership of up to 51% in securities firms, fund 
management companies and future companies. Could China elaborate current status of consultation 
and expected timeframe of publishing draft regulation, inviting  public comments and its entry into 
force? Furthermore, would China rectify its SOC after the implementation?  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Administrative Meas ures for Foreign Investment Access (Negative List) 
(2018 Version). The list expands access to the Chinese market for foreign investment. The measures 
apply to all foreign investors. The 2018 version of the negative list includes opening measures in 
22 areas and the number of restrictive measures decreased from 63 to 48, a near 25% cut. In the 
financial sector, China has abolished restrictions on foreign ownership in the banking sector and 
allowed foreign ownership of up to 51% in securities firms, fund mana gement companies and future 
companies. By 2021, all restrictions on foreign ownership in companies of the financial sector will 
be lifted.   
Besides, could Japan please clarify the meaning of SOC?   
Follow -up question  
SOC means Schedule of (Specific) Commitm ents. We welcome China's  recent actions to expand 
access to the Chinese market for foreign investment.  Could you clarify whether China has an 
intention to improve its Schedule of Commitments ?  
Reply  
The Chinese government has been earnestly carrying out its WTO commitments. China is willing to 
discuss with Members on the inclusion of opening up measures in China's  Schedule of Commitments 
at the Doha round of service market access talks.  
Page 7, paragr aph 3.18  
Question 6   
The signing of agreement on social credit or data transfer, which is ought to be done to participate 
government projects, is said to be optional. Companies, however, see it compulsory to sign such 
agreement and to disclose data because  it is unclear whether there is no disadvantage if they decide 
not to sign such agreement. In addition, some companies experienced disadvantages in practice in 
the course of approval procedure as they did not disclose technical data though there are no leg al 
bases for such requirement. Could China confirm that refusal of signing this kind of optional 
agreement and of requirements without legal basis do not result in any disadvantages?  
Reply  
China has no idea of this agreement on data transfer. Could Japan please provide further information?  WT/TPR/M/3 75/Add.1  
 
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  Follow -up question  
For example, a "Memorandum of Cooperation " (MOC) was signed between Ant Financial and the 
NDRC. The document is not publicly available, but the NDRC websites article 
(http://www.ndrc.gov.cn/gzdt/201608/t20160803_813985.html ) about the August 2016 signing of 
the MOC on Implementing Joint Rewards and Punishments declared that:  
"Ant Financial Groups CEO  Jing Xiandong stated that Sesame Credit Management Co. Ltd., under 
the banner of Ant Financial, will share information collected on trustworthiness and 
untrustworthiness with the State Credit Information -Sharing Platform in a timely manner and in 
accordan ce with the relevant laws, regulations, and supervisory requirements. Ant Financial will rely 
on its own rich scenarios to promote joint encouragements for trustworthiness and joint punishments 
for untrustworthiness, and will use its cloud computing and bi g data capabilities to actively cooperate 
with the NDRCs promotion and development of big data technology, monitoring developments in 
municipalities credit statuses. Ant Financial will become a benchmark of Internet firms using credit 
information to enact joint reward and punishment mechanisms, and will contribute some of its power 
to the construction of an honest society.  
Reply  
China has no knowledge of this agreement on data transfer.  
3.4 Strengthening the protection of intellectual property rights , page 8, paragraph 3.25  
Question 9  
 
According to the report by the Government, China has continued to strengthen the protection of 
intellectual property rights. Does China consider amending laws and taking measures,  which prohibit 
goods the imitation of the configuration of another person's goods?  
Reply  
The issue is under consideration.   
Follow -up question   
We would like to know whether China shares the necessity to prohibit the imitation of configuration 
of another  persons ' goods. We would also like to know more details of current status of consideration 
of this issue within Chinese government.   
Reply  
Currently, no further consideration is given to this issue.  
Page 9, paragraph 3.26  
Question 10  
According to the report by the Government, the Anti -Unfair Competition Law of China protects trade 
secrets of companies.  Could China provide information on mechanism to assure the protection of 
data owned by companies, including ID, passwords and other data that require to  be technically 
managed?   
Reply  
According to the Law of the People's Republic of China on Unfair Competition, trade secrets refer to 
technical information and business information that are not known to the public, have commercial 
value, and are subject to appropriate secrecy measures by the right holder.   
Meanwhile, a business owner may not adopt the following means to infringe trade secrets:   WT/TPR/M/3 75/Add.1  
 
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  1.  obtaining trade secrets from the right holder by stealing, bribery, fraud, coercion or other 
improper means;   
2.  disclosing, using, or allowing others to use trade secrets of the right holder obtained by 
the means mentioned in the preceding item;   
3.  disclosing, using or allowing others to use trade secrets obtained by breaking an 
engagement or disregarding the r equirement of the right holder to maintain the trade 
secrets in confidence.   
Where a third party obtains, uses or discloses trade secrets when he/she obviously has or should 
have full awareness of the illegal acts mentioned in the preceding item, he shall be deemed to have 
infringed the trade secrets of others.   
Besides, supervising authorities and their employees have the obligation to keep trade secrets they 
learn during investigation.   
Meanwhile, supervising authorities should stop violation of rules against infringement of trade 
secrets and impose a fine of 100000 -500000 yuan on the violator. For serious misconduct, a fine of 
over 500000 and less than three million yuan can be imposed. Employees of supervising authorities 
abusing their power, negligent of their duty, playing favouritism  or disclosing trade secrets they 
learn during investigation will be punished according to the law.   
In the Criminal Law of the People 's Republic of China , there is clear rules on the punishment for 
infringing trade secrets and causing major loss to the holder of the secrets.   
Follow -up question  
It is difficult to prevent illegal circulation of valuable data in cases where (1) data does not fall under 
the copyright law, or (2) it does not fall under "Trade Secret ". Could China explain whether there is 
any law or regulation for protection of data?   
Reply  
According to the provision of the Anti -Unfair Competition Law, Trade secrets refers to any technology 
information or business operation information which is unknown to the public, can bring about 
economic benefits to the obligee, has practical utility and about which the obligee has adopted 
secret -keeping measures. Data with the above characteristics are p rotected by the Anti -Unfair 
Competition Law.  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.3 Advancing modernization of the system and capacity for governance , page 19 , 
paragraph 5. 15 
Question 20  
Foreig n companies participating in government projects are de facto required to sign an (optional) 
agreement on data transfer. However, these companies have hesitation for signing such agreement 
on data transfer because data acquired during the project is requir ed to be localized and its cross -
border transfer is prohibited. As a result, Chinese companies, which do not face such concern, seem 
to have advantages in the competition for project participation. Along with data localization 
requirement, a level playing field seems not secured in the field of data access. Could China provide 
its view on this matter?  
Reply  
China has no idea of this agreement on data transfer. Could Japan please provide further 
information?   WT/TPR/M/3 75/Add.1  
 
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  Follow-up question   
For example, a "Memorandum of Cooperation " (MOC) was signed between Ant Financial and the 
NDRC. The document is not publicly available, but the NDRC websites article 
(http://www.ndrc.gov.cn/gzdt/201608/t2016080 3_813985.html ) about the August 2016 signing of 
the MOC on "Implementing Joint Rewards and Punishments " declared that:  
"Ant Financial Groups CEO Jing Xiandong stated that Sesame Credit Management Co. Ltd., under 
the banner of Ant Financial, will share info rmation collected on trustworthiness and 
untrustworthiness with the State Credit Information -Sharing Platform in a timely manner and in 
accordance with the relevant laws, regulations, and supervisory requirements. Ant Financial will rely 
on its own rich sc enarios to promote joint encouragements for trustworthiness and joint punishments 
for untrustworthiness, and will use its cloud computing and big data capabilities to actively cooperate 
with the NDRCs promotion and development of big data technology, monit oring developments in 
municipalities credit statuses. Ant Financial will become a benchmark of Internet firms using credit 
information to enact joint reward and punishment mechanisms, and will contribute some of its power 
to the construction of an honest s ociety.  
Reply  
China has no knowledge of this agreement on data transfer.  
Page 19, paragraph 5.15  
Question 21  
It is widely acknowledged that the Communist Party of China recently decided to strengthen the 
requirement for companies to develop in -house party organization. This may deter further 
investment to China or business there by foreign companies as it increases burden on them.  Could 
China provide its views on this matter?  
Reply  
1. This practice is in line with China's  laws and relevant regulations.  
2.  The establishment of party organizations conforms to the wishes of enterprise employees.  
3.  It is conducive to promoting the development of production and management of enterprises.  
4.  In practice, the enterprise -based Party organizations organicall y integrate their activities with 
the production and operation of their enterprises, thus offering strong support for the healthy 
development of the enterprises.   
Follow -up question   
To realize a free and fair competition environment, it is ideal not to po litically intervene in business 
decision -makings. Many foreign companies hesitate to input further investments and continue their 
business, unless they are confident that there is no risk of intervention. Foreign companies recognize 
that the requirement of  the establishment of party organisations is the first step of further political 
interventions, how does China cast aside this concern among foreign companies?   
Reply   
The Communist Party of China (CPC) is the leadership core for the cause of socialism with Chinese 
characteristics. It is, therefore, reasonable to establish Party organizations in social primary units 
including enterprises, which has been practiced for a long time. First, this is in line with Chinese laws 
and relevant regulations. The Cons titution of the People 's Republic of China stipulates, "The 
leadership of the Communist Party of China is the most essential feature of socialism with Chinese 
characteristics. " "All foreign enterprises, other foreign economic organizations as well as Chine se-
foreign joint ventures within Chinese territory shall abide by the laws of the People 's Republic of 
China. " The Company Law of the People 's Republic of China specifies, "In a company, an organization WT/TPR/M/3 75/Add.1  
 
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  of the Communist Party of China shall be established to carry out the activities of the Party in 
accordance with the Constitution of the Communist Party of China. The company shall provide the 
necessary conditions for the activities of the Party organization. " The Constitution of the Communist 
Party of China  provides that, primary units including, inter alia , enterprises, villages and schools 
with more than three CPC members shall establish primary Party organizations. By the end of 2017, 
73.1% of non -public enterprises had established Party organizations, in  which 71,000 foreign -funded 
enterprises established Party organizations, accounting for 74.7% of the total number of foreign -
funded enterprises in China. Second, it meets employees ' wishes and requirements. At present, 
there are more than 100 million empl oyees in China 's non -public enterprises, and over 18 million 
working in foreign firms. Party organizations pay attention to safeguarding the legitimate rights and 
interests of all parties, reflect the reasonable demands of the people, and help employees so lve 
practical difficulties. The majority of employees want Party organizations to be established in 
enterprises. Third, it is conducive to promoting the healthy development of enterprises. The main 
task of the Party organizations in enterprises is to sprea d and implement the Party 's principles and 
policies, guide and supervise enterprises to abide by Chinese laws and regulations, unite non -Party 
workers, safeguard the legitimate rights and interests of all parties, and promote the healthy 
development of ent erprises. Foreign enterprises have a significant number of CPC members who are 
outstanding employees and the backbone of their business. They are hard -working, willing to 
contribute, and determined to tackle difficulties. They play a pioneering and exempla ry role in 
performing duties and completing tasks and are an important force to promote the sustained and 
healthy development of enterprises.  
Since the 18th National Congress of the Communist Party of China, when guiding foreign enterprises 
to establish P arty organizations, we have urged local officials to pay attention to enhancing 
communication with foreign executives, explain the purpose of and legal basis for the establishment 
of Party organizations, clarify their duties, tasks, and activities, and try  to eliminate doubts and 
reach agreement. We guide Party organizations to strengthen interaction with the board of directors, 
the Management and relevant shareholders of foreign -funded enterprises, actively spread CPC 's 
paths, principles and policies, effe ctively communicate and negotiate certain matters, and 
wholeheartedly help enterprises coordinate and solve difficulties and problems encountered in 
business development. The Party members ' public commitment, members pioneer and 
demonstration posts, member s' responsibility areas, problem solving teams of Party members and 
other practices carried out by the Party organizations for the production and operation of the 
enterprise inject positive energy into its development. Facts have proved that the establishm ent of 
Party organizations in foreign enterprises did not hinder their development. Instead, because of the 
fruitful work of Party organizations and the role of Party members as the backbone of the business, 
they have optimized internal management, motivat ed employees, improved production and 
operation efficiency, and enhanced companies ' competitiveness, which has been well received by all 
parties in foreign companies. Some executives with foreign enterprises said that Party organizations 
can help them prom ptly understand China 's policies, improve their ability to integrate business into 
China, and play an irreplaceable role in resolving labour  disputes and building harmonious labor 
relations. Some foreign leaders of Sino -foreign joint ventures said that man y outstanding employees 
at their companies are CPC members who are always at the forefront of tackling difficulties.  
A number of foreign executives in foreign enterprises such as Spectrum Brands (Xiamen) Industrial 
(US), Dalian Canon (Japan), Linde Forklif t Trucks (German), Samsung Electronics (Korean), and 
those in Sino -foreign joint ventures such as Beijing Benz, BMW Brilliance, Shanghai GM, Guangqi 
Honda, and Changan Ford, all spoke highly of the creative work of the Party organization and the 
leading ro le of Party members, and actively supported in establishing Party organizations in 
enterprises.  
6 THE WAY FORWARD  
Page 22, paragraph 6.4  
Question 23  
China announced the easing of foreign ownership ratio of life insurance companies to 51% and is 
currently working on modification of its regulations on foreign -funded insurance companies.  While 
foreign ownership in non -life insurance sector is already committed to 51%, why was life insurance 
sector more restricted than non -life insurance sector? What is the ra tionale behind of those 
restrictions? Furthermore, would China rectify its SOC after the implementation?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Upon accession to the WTO, we committed the share of foreign enterprises in non -life insurance 
companies and life insurance companies would acco unt for 51% and 50% respectively. China has 
earnestly acted on the commitment and never imposed new restrictive measures. When the National 
Development and Reform Commission and the Ministry of Commerce issued Special Administrative 
Measures for Foreign In vestment Access (investment negative list) (2017) on 28 June 2018, market 
access was greatly relaxed and open measures became applicable to all foreign investors. In the 
financial sector, China has abolished restrictions on foreign ownership in the banking  sector and 
allowed foreign ownership of up to 51% in securities firms, fund management companies and future 
companies. By 2021, all restrictions on foreign ownership in companies of the financial sector will 
be lifted.   
Please clarify the meaning of the S OC.  
Follow -up question   
SOC means Schedule of (Specific) Commitments. Would China clarify whether to improve its 
Schedule of Specific Commitments in accordance with the recent actions of expanding access for 
foreign investment?  
Reply  
The Chinese government has been earnestly carrying out its WTO commitments. China is willing to 
discuss with Members on the inclusion of opening up measures in China's  Schedule of Commitments 
at the Doha round of service market access talks.  
Report by the Secretariat - WT/TPR/S/375  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments , page 23, paragraphs 1.30 and 1.31  
Question 26  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph 1.30 and 1.31, it was reported by the press that state -owned banks 
in China concluded credit agreements with shipbuilding comp anies in China. Such press reports 
include the following:  
• In August 2013, China Export Import Bank (CEXIM) concluded a credit agreement of up 
to CNY 100 billion with China State Shipbuilding Corporation (CSSC).  
• In September 2016, the Industrial and Comme rcial Bank of China Limited (ICBC) 
concluded a credit agreement of up to CNY 50 billion with China State Shipbuilding 
Corporation (CSSC).  
• In March 2017, China Export Import Bank (CEXIM) agreed to provide up to CNY 30 billion 
in upcoming three years to  COSCO Shipping Heavy Industry.  
For each credit agreement concluded, could China provide the information on the dates of loan 
execution, the amount of loan actually executed under these credit agreements, and the applicable 
interest rates of these loans provid ed?  
Reply  
The information involves trade secrets in enterprises trading activities, and the Chinese government 
has no access to such information.   WT/TPR/M/3 75/Add.1  
 
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  Follow -up question   
With regards to overcapacity and structural adjustments in the shipbuilding sector menti oned in the 
report by the Secretariat, please provide the Government of China's thoughts on how the 
government agencies' subsidies, such as subsidies by the CEXIM and ICBC to the ship -building 
related -SOEs, will affect the ship -building industries.  
Reply  
The loans provided by financial institutions are not government subsidies. The credit agreements 
between financial institutions such as the CEXIM and the ship -building related -enterprises are 
corporate market behaviours . 
Do the CEXIM and ICBC make financial information available to the public? If so, please provide the 
address of the website.   
Reply  
The ICBC periodic financial reports are published on the website of the Shanghai Stock Exchange 
(www.sse.com.cn ), the website of the HKEX news ( www.hkexnews.hk ) and the Investor Relations 
of the ICBC website ( www.icbc -ltd.com ). 
The CEXIM published its annual reports containing relevant fina ncial information on its official 
website: http://www.eximbank.gov.cn/tm/report/index_27_30010.html . 
Page 23, paragraph s 1.30 and 1.31  
Question 27  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph 1.30 and 1.31, it was reported by the press that Guotou Advanced 
Manufacturing Industry Investment Fund established in June 20 16 invested CNY 1.0 billion to CIMC 
Offshore Holdings Limited.  
Could China provide the information on the dates of the equity acquired by the fund, the value per 
share, the amount of stocks actually acquired by the fund?  
Reply  
The information involves trade secrets in enterprises trading activities and the Chinese government 
has no access to such information.   
Follow -up question   
With regards to overcapacity and structural adjustments in the shipbuilding sector mentioned in the 
report by the Secretariat , please provide the Government of China's thoughts on how the 
government agencies subsidies, such as subsidies  from Guotou Advanced Manufacturing Industry 
Investment Fund's on ship -building related -SOEs, will affect the ship -building industries.  
Reply  
The Chinese government has not provided subsidies for the shipbuilding sector. The cooperation 
between the Guotou Advanced Manufacturing Industry Investment Fund and ship -building related 
enterprises is corporate market behaviour , does not involve government subsidies.  
Does the Guotou Advanced Manufacturing Industry Investment Fund make investment information 
available to the public? If so, please provide the address of the website.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please consult the State Development & I nvestment Corp. for specific investment information.  
Page 23, paragraphs 1.30 and 1.31  
Question 28  
With regard to overcapacity and structural adjustments in the shipbuilding sector mentioned in the 
Secretariat report paragraph 1.30. and 1.31, it was report ed by the press that state -owned investors 
in China decided to execute Debt -to-Equity Swap with shipbuilding companies in China. Such press 
reports include  the following:  
• In August 2017, Chinese state -owned investors which holds claim of Dalian Shipbuildi ng 
Industry Company and Wuchuang Shipbuilding Heavy Industry Group executed the 
Debt-to-Equity Swap which involves CNY 21.8 billion in amount of equity undertaken.  
• In December 2017, Chinese state -owned enterprises which holds claim of China State 
Shipbuil ding Corporation (CSSC) executed the Debt -to-Equity Swap which involves 
CNY 24.0 billion i n amount of equity undertaken.  
• In January 2018, Chinese state -owned enterprises which holds claim of China State 
Shipbuilding Corporation (CSSC) executed the Debt -to-Equity Swap which involves 
CNY 10.2 billion in amount of equity undertaken.  
For each Debt -to-Equity Swap, could China provide the information on the names of investors 
involved in the DES transaction, the dates of DES execution, the amount of loan actuall y executed 
under these credit agreements, the value per share, and the amount of stocks actually acquired by 
the state -owned investors?  
Reply  
The information involves trade secrets in enterprises trading activities and the Chinese government 
has no access to such information.   
Follow -up question  
With regards to overcapacity and structural adjustments in the shipbuilding sector mentioned in the 
report by the Secretariat, please provide the Government of China's thoughts on how the 
government -related financia l institutions , such as China Construction Bank and other SOEs, 
Debt-to Equity Swap practice (on ship -building industries) will affect the ship -building industries.  
Reply  
Financial institutions including  banks Debt -to-Equity Swap practice in ship -building  industries is 
market behaviour . Banking debt -to-equity swaps in the shipbuilding industry are carried out in 
accordance with the principles of rule of law and marketization, giving full play to the decisive role 
of the market in resource allocation. The g overnment does not force enterprises, banks and other 
institutions to participate in debt -to-equity swaps. This market -based option is conducive to 
maintaining a fair market order and promoting market clearing. It can effectively reduce corporate 
leverage,  enhance corporate capital strength, and prevent corporate debt risks, at the same time, it 
can promote the improvement of modern enterprise systems and enhance the development 
resilience of China's economy in the medium and long term. Market -based debt -to-equity swaps for 
qualified enterprises are an important means of stabilizing growth, promoting reform, restructuring, 
and preventing risks. At present, there are not many shipbuilding related enterprises that carry out 
debt-to-equity swaps, which have not  yet had a major impact on the shipbuilding industry.  WT/TPR/M/3 75/Add.1  
 
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  Follow -up question  
Does China Construction Bank make the Debt -to-Equity Swap information open to the public? If so, 
please provide the address of the website.   
Reply  
China Construction Bank disclosed information on debt -to-equity swaps on page 50 of the Annual 
Report 2017. For a full Report, please visit: 
http://www.hkexnews.h k/listedco/listconews/SEHK/2018/0426/LTN201804262028.pdf   
Page 23, paragraphs 1.30 and 1.31  
Question 29  
With regard to overcapacity and structural adjustments in the shipbuilding industry mentioned in 
the Secretariat report paragraph 1.30. and 1.31, it was reported by the press that state -owned 
banks in China concluded loan agreements with shipbuilding compa nies in China, inter alia : 
• In January 2015, China Export Import Bank (CEXIM) concluded a loan agreement of up to 
CNY 10.8 billion with China COSCO.  
• In August 2016, China Export Import Bank (CEXIM) concluded a loan agreement of up to 
CNY 120 billion with C hina COSCO.  
• In October 2016, China Export Import Bank (CEXIM) concluded a buyer's  credit agreement 
of up to CNY 10.8 billion with MSC. The order in connection with this buyer's  agreement 
was placed to Jinhai Heavy Industry.  
• In October 2016, China Export Im port Bank (CEXIM) concluded a loan agreement totalling  
CNY 240 billion with Chinese and foreign buyers including Petrobras and Maersk . 
• In November 2017, China Export Import Bank (CEXIM) concluded a loan agreement for 
14 large LNG vessels.  
For each credit a greement, could China provide the information on the dates of loan execution, the 
amount of loan actually executed under these credit agreements, and the applicable interest rates 
of these loans provided?  
Reply  
The information involves trade secrets in enterprises trading activities; hence, the Chinese 
government has no access to such information.  
Question  
Could China provide the names of shipbuilding companies with which the recipients of subsidies 
placed orders for a new vessel(s)?  
Reply  
The informati on involves trade secrets in enterprises trading activities; hence, the Chinese 
government has no access to such information.   
Follow -up question   
With regard  to overcapacity and structural adjustments in the shipbuilding sector mentioned in the 
report by the Secretariat, please provide the Government of China's thoughts on how CEXIMs Buyers 
Credit practice (on ship -building industries) will affect the ship -building industries.  WT/TPR/M/3 75/Add.1  
 
- 301 - 
 
  Does the CEXIM make Buyers' Credits information available to the public? If so,  please provide the 
address of the website.   
Reply  
The Buyers' Credit of the CEXIM is market behaviour . The bank's annual reports disclose the balance 
of the export buyer's credit business. Since the specific information on export buyer's credit projects 
involves trade secrets, it is inappropriate to disclose such information.   
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime , page 39, Box 2.1  
Question 35  
According to the Secretariat report, in 2017, China added editing of books, newspapers, periodicals, 
audio -visual products and electronic publications, broadcast (TV) video on demand services, 
installation services of signal -receiving facilities, digital news and information services and Internet 
public release information service in the list  of prohibited categories. Could China provide the 
reason(s) for adding such a broad exception, which is contrary to the liberalization?  Also, Japan 
would appreciate it if China could provide information on whether it has any plan to remove or loosen 
the import quota on revenue -sharing motion pictures or films.  
Reply  
According to the regulations in the General Agreement on Trade in Services (GATS), the WTO 
members have the right to regulate, and to introduce new regulations, on the supply of services 
within their territories in order to meet national policy objectives. Thus,  this is China 's legitimate 
right allowed by the WTO. Broadcast (TV) video on demand services and installation services of 
signal -receiving facilities are part of broadcasting and televi sion services which are nevertheless not 
included in China's  GATS commitments. China is not imposing new restrictions, but making clear the 
nature of its broadcasting and television services. In addition, the other prohibited services 
mentioned by Japan ar e not included in China's WTO commitments, either. China will, in line with 
the development needs of the domestic market, determine the areas and measures regarding 
market openness. China is willing to discuss the further opening -up of telecommunications s ervices 
with Japan within the WTO negotiation framework.   
Follow -up question   
Japan understands that GATS recognizes the right of the Members, within their territories, to 
regulate and introduce new regulations on the supply of services to meet their national policy 
objectives. We would like to know China's exact national policy objectives (in addition to the 
development needs) and rationale behind prohibition of  foreign investment access to broadcasting 
services, television services and other services  which Japan mentioned in the question 35.   
Reply  
Broadcasting and television services are related to national security. Many WTO members prohibit 
the access of foreign investment to domestic or regional broadcasting and television services. Japan 
also has  such prohibition regulations, for example, the Radio Law of Japan provides that, No radio 
station shall be granted to a person not holding Japanese nationality, a foreign government or its 
representative, a foreign judicial person or organization, and a j udicial person or organization which 
is represented by any person ref erred to in the preceding three  items, or one third or more officers  
of which are such persons, or one third or mor e voting rights of which are mad e up of the aggregate 
of voting rights h eld by such persons.  
China has never promised to open up the broadcasting and television sector since its accession to 
the WTO, prohibiting the access  of foreign investment to this industry, therefore, does not violate 
China's  WTO commitments. The inclusio n of relevant content in the Catalogue of Industries for the 
Guidance of Foreign Investment (2017 version) is not a new adjustment. The added content aims 
to inform foreign  investors about the nature of the broadcasting and television related services.  WT/TPR/M/3 75/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , page 45, paragraph 3.2  
Question 38  
According to Japanese companies operating in China, they appreciate the enhanced efficiency in 
customs procedures through reform and harmonization, but they still face difficulty caused by the 
inconsistency in customs process regarding the implementation a nd interpretation of relevant 
regulations (such as HS code and rule -of-origin certification), which allegedly differ from officer to 
officer and from region to region within China. Is China aware of such difficulty companies face in 
practice? Also, how doe s China plan to handle such situation and improve the operational aspect of 
customs procedures?  
Reply  
China does not know about the situation mentioned by Japan. Please give concrete examples to 
illustrate the inconsistency in customs process regarding th e implementation and interpretation of 
relevant regulations.  
Follow -up question  
The Japanese Chamber of Commerce and Industry in China will hold the meeting with the General 
Administration of Customs  People 's Republic of China to explain the contents of i ts 2018 white book 
on Chinese Economy and Japanese Companies. It will explain the concrete cases at the meeting.  
3.3 Measures Affecting Production and Trade , page 74, paragraph 3.124  
Question 59   
At the TBT Committee, China explained that the Multi -Level Protection Scheme (MLPS) and the 
Regulation on the Administration of Commercial Cipher Codes (OSCCA) would be revised under the 
Cybersecurity Law, which came into effect in June 2017. Could China update the situation of the 
revision of these regulations an d also provide the information on the date of entry into force of the 
Encry ption Law.  
In particular, regarding the OSCCA, does China apply it in accordance with the `clarification letter' 
issued in 2000? Japan expects China to respect the clarification let ter issued in 2000. Furthermore, 
in which article does China reflect public comments from Japan in the ongoing process of the revision 
of the OSCCA?  
Reply  
The Administration of Commercial Cipher Codes is being revised. Further revisions will be made in 
accordance with the Encryption Law  of the People 's Republic of China after its introduction.  
Follow -up question   
Japan appreciates China for answering the first question; "at the TBT Committee, China explained 
that the Multi -Level Protection Scheme (MLPS) and the Regulation on the Administration of 
Commercial Cipher Codes (OSCCA) would be revised under the Cybersecur ity Law, which came into 
effect in June 2017. Could China update the situation of the revision of these regulations and also 
provide the information on the date of entry into force of the Encryption Law."  
Could China also give us an answer to the second q uestion; "in particular, regarding the OSCCA, 
does China apply it in accordance with the `clarification letter' issued in 2000? Japan expects China 
to respect the clarification letter issued in 2000. Furthermore, in which article has China actually 
reflect ed public comments from Japan in the ongoing process of the revision of the OSCCA?"  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Regulation on the Administration of Commercial Cipher Codes is currently being revised by the 
State Cryptography Administration, and further revisions will be ma de in accordance with the 
Encryption Law of the People 's Republic of China after its introduction.  
Page 74, paragraph 3.128  
Question 61  
Japan is aware that China is a signatory of the International Laboratory Accreditation Conference 
Mutual Recognition Arr angement ILAC MRA. Does China accept test reports based on international 
standards such as IEC/ISO, and test reports issued by a testing laboratory accredited according to 
relevant and recognized international standards, guides and recommendations (includi ng ISO/IEC) 
by an accreditation body signatory to the ILAC MRA? If not, could China explain the reason?  
Reply  
China actively develops bilateral and multilateral international cooperation and carries out mutual 
recognition in the field of accreditation, playing an important role in boosting the development of 
relevant international organizations. CNAS is now a full member of IAF, PAC, ILAC and APLAC and it 
has signed a number of relevant multilateral agreements.   
Follow -up question  
In response to the que stion 61, China indicated that CNAS is now a full member of IAF, PAC, ILAC 
and APLAC and it has signed a number of relevant multilateral agreements. Does this mean that 
China has accepted test reports issued by testing laboratories which CNAS accredited? I f not, could 
China explain the reason?  
Reply  
China accepts test reports issued by testing laboratories which CNAS accredited.  
Page 74, paragraph 3.129  
Question 63  
What is the rationale for random CCC conformity tests to be conducted only on imported produc ts? 
If the rationale is to protect consumers, it seems that the tests also ought to be conducted on 
domestically produced products to ensure safety of all consumers.  
Reply  
The CCC conformity tests are NOT conducted only on imported products. The CCC certification 
system conforms to the WTO National Treatment Principle and treats imported products and 
domestic products equally.   
Follow -up Question   
We understood that CCC Random conformity sampling tests are conducted on both domestic and 
imported produ cts. We would like to know detailed procedures to understand how sampling tests 
are conducted in practice for both domestic and imported products.  
Reply  
Regarding CCC random conformity sampling tests, the requirements are equally applied to both 
domestic and foreign products. The usual process is: The certification body takes and seals samples 
during the factory inspection (post -certification supervision). Samples are sent by the manufacturer 
to the testing organization which completes the sampling test ac cording to relevant procedures.  WT/TPR/M/3 75/Add.1  
 
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  Page 77, paragraph 3.146  
Question 65   
The amendment to the Anti -Unfair Competition Law in November 2017 revised the provisions on 
commercial bribery, Could China explain whether there exists a law or regulation that prohibit s the 
provision of wrongful gai ns to foreign public officials.  
With regard to the revision of the provision on confusion acts to include domain name protection in 
the Anti -Unfair Competition Law, could China explain whether there is any law or regulation f or 
prohibition of wrongful registration of the domain name?  
Reply  
There is no such penalty in China's  Anti-Unfair Competition Law  as prohibiting the provision of 
wrongful gains to foreign public officials. Article 6 of the Anti-Unfair Competition Law  stipulates that 
operators shall not commit the following confusing acts, which may be misunderstood as being a 
product of another person or having a specific connection with others: (3) Unauthorized use of the 
main body of others domain names, website names an d web pages that have certain influence.  
There is no such penalty in China's  Anti-Unfair Competition Law as prohibiting the provision of 
wrongful gains to foreign public officials. Article 6 of the Anti -Unfair Competition Law stipulates that 
operators shall not commit the following confusing acts, which may be misunderstood as bei ng a 
product of another person or having a specific connection with others: (3) Unauthorized use of the 
main body of others domain names, website names and web pages that have certain influence.  
Follow -up question   
In general, with regard to bribery of for eign public officials, there are some cases where a person 
from importing country gives undue pecunia ry to a foreign public official  in exporting country, to 
gain fast -track in exports approval for the quicker imports. The act of bribing foreign officials to gain 
fast-track in exports is illegal in numerous countries. Since, there is no penalty in Anti -Unfair 
Competition  Law of China that prohibit the bribery of foreign public officials, Japan would appreciate 
if China could explain possible action China wo uld take when the above case occurs in China?  (Ex: A 
person in China  (including foreigners) bribes a foreign public official from another country, to gain 
fast-track export approval from that country, and then import goods faster into China.)  
Reply  
Accord ing to the Anti -Unfair Competition Law, commercial bribery occurring in China shall be 
penalized in accordance with articles concerning the prohibition of commercial bribery of the 
Anti-Unfair Competition Law.  
Follow -up question   
Does unauthorized use of the main body of others domain names in the Anti -Unfair Competition Law 
of China include the registration of the domain name as the domain?  
Reply  
The Anti -Unfair Competition Law stipulates that unauthorized use of, inter alia , the main body of 
others domain names having a certain influence, website names and pages, which makes people 
confuse this commodity to the others commodity or makes people deem that this commodity has a 
specific connection with others constitute unfair c ompetition behaviour . Registration of others 
domain names with a certain influence which makes people have such confusion will be penalized in 
according with the Anti -Unfair Competition Law.  WT/TPR/M/3 75/Add.1  
 
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  Page 91, paragraph 3.195  
Question 70   
According to the report by  the Secretariat, China is promoting the use of public -private partnership 
in the area of government procurement. Japan would like to know whether foreign enterprises are 
treated on an equal basis with Chinese domestic enterprises in the process of selecti on of 
PPP partners.  
Reply  
The current legal basis for China's  government and social capital cooperation (PPP) includes the 
budget law, the government procurement law, and the contract law. China is advancing legislation 
for government and social capital cooperation to regulate PPP activities.  
The main purpose of pro moting the PPP model is to invite market entities, through open competition, 
to participate in the provision of public services, so as to enhance the quality and efficiency of public 
services. The operation mechanism of China's  PPP project has drawn on int ernational best practices, 
dividing the project operation process into five stages: identification, preparation, procurement, 
execution, and handover.  In short, first, project proposals are put forward by the government or 
social capital; second, project i mplementation plans are prepared, the feasibility and financial 
affordability (Fiscal Affordability) of the projects adopting the PPP model are discussed and examined, 
and eligible projects are included in the national project library which will later be s ubject to unified 
management, full life -cycle information disclosure, and social supervision; third, through open 
competition, cooperation partners are selected on the government procurement platform, and 
cooperation agreements are signed; fourth, project companies (Special Purpose Vehicle) will be 
established according to the cooperation agreement, responsible for the project investment, 
construction and operation, and obtaining corresponding returns based on project output 
performance; fifth, as the coope ration period expires, projects will be handed over to government 
departments according to the contract.   
Uniform rules, standardized operation, openness and transparency, and performance orientation are 
the key words for promoting PPP in China.   
Follow -up question   
We understand the main purpose and operational process of China's PPP through China's reply. We 
would like to confirm whether foreign enterprises can participate in open competitions of China's 
PPP project under the same condition as domestic en terprises.   
Reply  
Under the premise of complying with the "Government Procurement Law" and related regulations, 
we treat foreign and domestic enterprises equally and do not set discriminatory provisions.  
Page 96, paragraph 3.220  
Question 78  
Japan recognizes that the "Regulations on Technology Import and Export Administration" is still 
effective, although Japan has been raising its concern about the regulation, e.g. in the previous 
Trade Policy Review of China held in 2016. As President Xi Jin ping stated at the Boao forum held in 
April this year that China would strengthens IP protection for foreign and domestic enterprises, Japan 
is of the view that China has been engaging in improving the protection and utilization of IPR for 
both Chinese and  non-Chinese right holders. Taking into account the above, Japan considers that 
the regulation should be amended because it accords less favourable  treatment to foreign IPR 
holders. Does China plan to amend the regulation, and, if not, could China explain a reason(s) that 
China cannot amend this regulation?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Regulations on Technology Import and Export Administration  is designed to maintain the 
equality between both sides of trade. It promotes market competition by protecting the receiving 
party th at in disadvantage from unequal treatment, rather than discriminates non -Chinese right 
holders. As known to all, this regulation has been in effect for 16 years. As the domestic and abroad 
environment for technology trade has changed a lot, China is willin g to estimate the amendment of 
the regulation carefully and comprehensively. In addition, considering the amendment is relative to 
the business regulation and rights and interests protection of many companies, China will keep being 
active in dialogue and h earing demands and suggestions and advices from all aspects in the whole 
process, in order to promote healthy development of technology tread.   
Follow -up question   
1. We would like China to identify which provision(s) of the Regulations possibly needs to be 
amended.   
Reply  
China will learn about interest demand in all aspects, listen to comments and suggestions, and 
estimate the amendment of the Regulation carefully and comprehensively, to promote the healthy 
development of technology trade.  
2. In its response to Japan's question, China explained that "China is willing to estimate the 
amendment of the regulation carefully and comprehensively." Please confirm  that the Regulation is 
under the process of amendment and explain the time schedule  for such future amendment.   
Reply  
China will learn about interest demand in all aspects, listen to comments and suggestions, and 
estimate the amendment of the Regulation carefully and comprehensively. After that, China will 
amend the Regulation following releva nt Chinese legislative procedure . 
Page 96, paragraph 3.220  
Question 80  
Article 27 of the "Regulations on Technology Import and Export Administration" states that 
improvements in the licen ced technology belong to the improving party. In contrast, for domest ic 
technology transfer or licensing contracts, Article 354 of the Contract Law of China stipulates that 
parties may provide in their contract for the method of sharing technological achievements resulting 
from improvements. Japan believes that this differe nce appears to accord less favourable  treatment 
with regard to the protection of intellectual property to non -Chinese nationals compared to Chinese 
nationals, and thus is inconsistent with Article 3 of the TRIPS Agreement. Japan would appreciate it 
if Chin a could provide its view on this matter.  
Reply  
Firstly, Article 27 does not violate the Contract Law of China. The Contract Law of China also prohibits 
one party requires the improving party to provide the improved technology freely or transfer the 
improv ed technology without mutual -beneficial intentions, or acquire and share the intellectual 
property right of the improved technology freely.   
Secondly, Article 27 is designed to guarantee the improving party to enjoy the IPR of the improved 
technology prope rly, whether it is the receiving party or the giving party.   
Thirdly, Article 27 does not prohibit the improving party to deal with its IPR according to law or to 
share with or transfer the IPR of the improved technology to the other party with mutual -beneficial 
intentions or certain compensation.  WT/TPR/M/3 75/Add.1  
 
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  Follow -up question  
We would like to know which article(s) of the Contract Law of China prohibits contracting party from 
providing, transferring  or sharing the improved technology to the other contracting party in free of 
charge and/or acquiring the improved technology by the contracting party who does not contribute 
to improve the technology.  
Reply  
Article 329 of the Contract Law of China stipul ates that A technology contract which illegally 
monopolizes technology, impairs technological advancement or infringes on the technology of a third 
person is invalid. The Interpretation of the Supreme People 's Court on Several Issues Concerning 
the Applica tion of Law in the Trial of Technical Contract Disputes points out that, the provision 
illegally monopolizes technology, impairs technological advancement mentioned in the Contract Law 
restricts the party to carry out research and development based on the memory  for the technology 
in the subject of contract or to use improved technology. It also restricts parties to exchange 
improved technology based on unequal conditions where one party requires the other party to 
provide its own improved technology free o f charge or transfer non -reciprocally, and where one 
party monopolizes or share intellectual property rights of the other party 's own improved technology.  
Page 102, paragraph 3.246  
Question 84   
The report by the Secretariat states the State Administration for Industry and Commerce (SAIC) has 
consulted with other competent authorities including the Ministry of Agriculture and the AQSIQ to 
discuss and to establish a joint GI certification mechanism since 2016. Could China provide 
information on how trademark certification system and sui generis GI system will be integrated? 
Also, Japan recognizes China has reformed its administrative structure and the jurisdiction over GI 
is integrated into the Intellectual Department this year. After the administrative reform , how is the 
situation of consideration about the revision of the GI system and consideration on the schedule by 
the Intellectual Department?  
Reply  
The structural reform is still in process, the reform plan states that the duties of the State Intellectual 
Property Office, the duties of trademark administration of the State Administration for Industry and 
Commerce, and the administrative duties relating to geographical indications of places of origin of 
the General Administration of Quality Supervision, Insp ection and Quarantine shall be consolidated 
to reorganize the State Intellectual Property Office, the specific works are to be specified when the 
function allocation and internal organs of the restructured State Intellectual Property Office are set.   
Follo w-up question   
Does "establish a joint GI certification mechanism ", stated in the Report by the Secretariat,  
paragraph  3.246, page 103, means that the GIs covered and protected by the SAICAQSIQ and 
Ministry of Agriculture will be integrated into single GI system? If the interpretation is incorrect, 
please provide detailed explanation of what "a joint GI certification mechanism"  is. 
Reply  
China is carrying out its institutional restructuring plan, which clearly requires that, The State 
Intellectual Property Office will be restructured, integrating the function of the State Intellectual 
Property Office, the function of brand names administration of the State Administration for Industry 
and Commerce, the function of geographical indications of origin administra tion of the General 
Administration of Quality Supervision, Inspection and Quarantine. China will provide detailed 
explanation  for the original joint recognition mechanism for GIs  after the function of the restructured 
State Intellectual Property Office is confirmed.  WT/TPR/M/3 75/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing , page 141, paragraph 4.87  
Question 94  
MCO (multi -component semiconductors) is one of the products covered by the ITA (Information 
Technology Agreement) expansion. As a member of the ITA expansion, Japan is aware that China 
has committed to eliminate tariffs on all MCOs products (some products with staging).  
a. In HS2017 nomenclature change for MCOs, could China explain why China chose to apply 
arithmetic average of the previous rates of duty for calculating the new duty rate rather than the 
other three methodologies recognize d by the WTO docum ent WT/L/995?  
b. Japan is aware that IGBT  (Insulated Gate Bipolar Transistor) -IPM Intelligent Power Module, 
which is a MCOs product, should be classified into HS854239 through HS2017 transposition 
according to the WCO Classification Opinions on power modu le. However, China continues to impose 
tariffs 5% on IGBT -IPM assuming that it falls under HS850440. Could China explain why China 
classifies IGBT -IPM under HS850440?  
Reply 
For question (a), the calculation method we adopted is in line with international r ules and is 
determined according to the needs of China's transfer work. For question (b), the IGBT module 
corresponds to different positions according to the product characteristics in the tariff classification. 
If it is a MCO with controller and processor  functions, it is classified as HS8542.3111 and the MFN 
tariff rate is 5%; if it is a MCO with functions other than a controller, processor, memory, or amplifier, 
it is classified as HS8542.3910, and the current MFN rate is 2.1%. IGBTs are often resi stant to high 
voltages, which, i f not composed of MCO, are classified as HS8504.4091 and the current MFN tariff 
rate is 5%. HS8542.3111, HS8542.3910, HS8504.4091 are all ITA expansion products, and China 
is also reducing tariffs on related products year by year.  
Follow -up question   
In response to the question 94, China noted that IGBTs are often resi stant to high voltages, which, 
if not composed of MCO, are classified as HS8504.4091. However, Japan is aware that IGBT  
(Insulated Gate Bipolar Transistor) -IPM (Intelligent Power Module), which is different from IGBTs 
and is equipment operating power conversion such as AC to DC and/or DC to AC and/or frequency 
conversion, is built in MCOs product having the function of on/off power operation.   
Therefore, could Ch ina explain why IGBT - IPM is not a semiconductor, but a equipment such as 
static converters classified under HS heading 8504.  
Reply   
China is a major trader of information technology products. It has fully participated in the WTO 
Information Technology A greement (ITA) expansion negotiations and is seriously fulfilling its 
relevant commitments. According to the World Customs Organization's 2017 Harmonized System 
Rules, China has reclassified multi -component semiconductor (MCO) tariff lines and determined t he 
relevant tariff rates based on the original tariff lines. This adjustment is in line with the relevant 
tariff conversion regulations and China's commitments in the WTO.  
Technically, applying arithmetic average of the previous rates of duty for calculati ng the new duty 
rate will inevitably increase the rate of some tariff lines and decrease that of other lines. Compared 
with the HS2012 version, although tariff rates of ten MCO tariff lines have increased, those of the 
remaining seven  MCO lines have droppe d significantly. For example, before HS2017 transposition, 
the tariff rate of MCO lines under HS8450.9090 was 10%, and the rate of those under HS8415.9010 
and HS8415.9090 was 5%, but after the transposition, those  lines tariff rate is only 2.7% , a drop of 
73% and 46% respectively.  WT/TPR/M/3 75/Add.1  
 
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  China has been earnestly fulfilling and will continue to fulfil its commitments to reduce the tariffs of 
products included in the expanded ITA, implementing a five -year linear tariff reduction for MCO tariff 
lines. According to China's ITA expansion commitments, the tariffs of the above items will be fully 
eliminated by July 2021.  
Page 141, paragraph 4.8 7 
Question 95  
According to WTO document G/IT/W/40/Suppl.2, China's comment on ITA item 200 in Attachment 
B refers to the classification of projector falling under 852841ex and 852851ex in HS2007. Japan 
would like to confirm where China classifies ITA item 200 under each  HS sub -heading in HS1996, 
2002, 2007, 2012 and 2017.  
Reply  
The ITA item 200 is Projection Display Parts, China's  WTO commitments are based on the 1996 
version of the Tax Code, which has been approved by all parties including Japan. Currently, the 
taxes f or relevant products have all been reduced to zero.  
Follow -up question   
Firstly, Japan will ask China again where does China classifies ITA item 200 under each 
HS sub-heading in HS1996, 2002, 2007, 2012 and 2017.  
Secondly, Japan understands that the ITA item No. 200 is covered under HS 8528.62, whose 
description is "Projectors; capable of directly connecting to and designed for use with an automatic 
data processing machine of heading 84.71"  in HS 2017. Accordingly, Japan exempts HS 8528.62 
from customs du ties under the ITA. On the other hand, China still levies 30% and 15% tariff on 
HS 8528.6220 and HS 8528.6290. In this regard, Japan would like to ask for China's explanation on 
why HS 8528.6220 and HS 8528.6290 were still not exempt from customs duties.  
Reply 
China is a major trader of information technology products. It has fully participated in the WTO 
Information Technology Agreement (ITA) expansion negotiations and is seriously fulfilling its 
relevant commitments. According to the World Customs Organiz ation's 2017 Harmonized System 
Rules, China has reclassified multi -component semiconductor (MCO) tariff lines and determined the 
relevant tariff rates based on the original tariff lines. This adjustment is in line with the relevant 
tariff conversion regula tions and China's commitments in the WTO.  
Technically, applying arithmetic average of the previous rates of duty for calculating the new duty 
rate will inevitably increase the rate of some tariff lines and decrease that of other lines. Compared 
with the HS 2012 version, although tariff rates of ten MCO tariff lines have increased, those of the 
remaining seven  MCO lines have dropped significantly. For example, before HS2017 transposition, 
the tariff rate of MCO lines under HS8450.9090 was 10%, and the rate of  those under HS8415.9010 
and HS8415.9090 was 5%, but after the transposition, those lines tariff rate is only 2.7%, a drop of 
73% and 46% respectively.  
China has been earnestly fulfilling and will continue to fulfil its commitments to reduce the tariffs of  
products included in the expanded ITA, implementing a five -year linear tariff reduction for MCO tariff 
lines. According to China's  ITA expansion commitments, the tariffs of the above items will be fully 
eliminated by July 2021.  
Page 141, paragraph 4.93 
Question 96   
According to the Access Administration of New Energy Vehicle Manufactures and Products, 
manufactures are requiring to "mastering" the requested technologies. Could China explain what the 
term "master" exactly means?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In regard to master the technologies necessary for the development and manufacture of new energy 
vehicles, master means a deep understanding. As long as enterprises can provide required evidence 
regarding the capability, number and positions of R&D personnel, R&D process, des ign 
specifications/calibration matching/test verification specifications, product information database, 
development tools/software and equipment, trial/test/debug ability, test verification capability, and 
design output, they would be deemed as mastering t he technologies. For detailed review 
requirements, please refer to the seven  requirements on the design and development capability 
clearly stipulated in the Market Access Review Requirements.  
Follow -up question   
In response to Japan's question, China expl ained that the meaning of the term "master" means deep 
understanding. Considering that deep understanding would be obtained only by providing knowhow, 
wouldn't this requirement impose technology transfer obligation in a manner inconsistent with 
China's WTO  commitments?   
Reply  
As long as an enterprise can provide evidence of conformity in various forms, it is regarded as master. 
Enterprises are not required to provide knowhow, and no mandatory technology transfer is involved.  
4 TRADE POLICIES BY SECTOR  
4.4 Services , page 152, paragraphs 4.134 and 4.135  
Question 103  
According to the Ministry of Industry and Information Technology Notice No. 32 of 2017, the purpose 
of using a private line including VPN is limited to internal use, and the connection to domestic  and 
overseas data centres  or business platforms is prohibited. Japan would like to know the laws and 
regulations which stipula te the measures above.  
Among the service areas where China committed to liberalizing fully or partially under the GATS, 
there are  service businesses that routinely send and receive data with data centre  (such as data 
processing service, travel agency and tour operator service, lawyer and accountant), and routinely 
use private lines as a reliable means for that. Restrictions on the u se of the private lines may impede 
the provision of the service areas committed by China.  
Reply  
The provisions of the Notice on Cleaning Up and Regulating the Internet Access Service Market (the 
Notice) on cross -border operation activities are mainly base d on the Measures on Administration of 
International Communication Import and Export Board (Order No. 22 of the former Ministry of 
Information Industry). The target of those provisions is enterprises or individuals that rent 
international private lines or VPN and carry out cross -border telecommunications business activities 
without the authorization or the approval of the Chinese telecommunications authorities and without 
the qualifications for practicing international telecommunications business. The relev ant provisions 
of the Notice will not affect the normal cross -border access of the Internet by domestic and foreign 
companies and users, or affect business activities that are in accordance with laws and regulations. 
Foreign trade enterprises and multinati onal enterprises, due to their demands for special lines for 
cross-border networking, may rent from a telecommunications services operator recognized by law 
by the International Communication Import and Export Board, which will not be affected by relevant 
provisions. Any activities carried out in China including production shall be in accordance with 
Chinese laws and regulations. All legal operations and activities will be protected by the law.  WT/TPR/M/3 75/Add.1  
 
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  Follow -up question  
Japan would like to ask why China limits th e purpose of using of leased lines rented from a lawful 
telecommunications services operator to internal use. It should be noted that data transmission to 
overseas data centres  using private line is a necessary and reliable means in current business.  
Reply  
According to Article 19 of the Measures on Administration of International Communication Import 
and Export Board, the international communication transmission channel line shall only be used for 
peer-to-peer communication within the specified service  scope, and is only for internal use. It shall 
not be used for telecommunication operations.  
Page 154, paragraph 4.141  
Question 109  
Article 37 of the Cybersecurity Law stipulates the obligations of storing personal information and 
important data within Chi na and of conducting security assessments in transferring such information 
and data abroad. However, the obligations are not clear enough to be rational in light of the purposes 
of the Law to maintain national security or public interests. Additionally, if  foreign companies which 
provide the services in the sectors where China commits liberalization are to be exposed to "virtually" 
less competitive situation than the local companies by owing additional costs, for example, installing 
of new servers or conduc ting security assessment, or by losing of immediacy of settlement, it may 
violate the national treatment obligation under Article 17 of the GATS.  What does China's  understand 
regarding the consistency of Article 37 of the Cybersecurity Law with Article 17 of the GATS?  
In regard  to the obligation of security assessment, the "Information Security Technology -Guidelines 
for Data Cross -Border Transfer Security Assessment" lists wide range of "important data" which is 
subject to security assessment. Among these important data, there are a lot of data that are usually 
indispensable in doing business, including information on production and sales by electronic 
information companies and information on credit assessment of companies. However, the 
relationship between  the restriction to these business data and the purpose of the law to maintain 
national security and public interests is unclear. Could China elaborate the rationale for including 
such business data as important data an d provide the legislative fact?  
Reply  
According to rul es of GATS, each member country  is entitled to administrate or employ new 
regulations on the services provided within its territory in order to fulfil the national policy goals. 
This is a proper right granted by the WTO. The purpose of formulating the Cybersecurity Law is to 
safeguard national cybersecurity, protect people's  interests and promote Internet information spread 
legally and orderly. Besides,  this law applies  to Chinese and foreign service providers equally, which 
will not affect China to fulfil its commitments that made before entering the WTO.  
Follow -up question   
1. GATS are prescribed on the premise of the regulatory rights of each Member, and it is obvious 
that the regulatory rights approved for each Member should not be in violation of GATS. Japan would 
like to ask again how China consider relationship between restriction to general business data and 
the purpose of the law to maintain nati onal security and public interests.   
And Japan may note that Article 17 of the GATS ensure no less favourable  treatment for foreign 
service providers than local service providers regardless of formally identical treatment.  
Reply  
The purpose of Article 37 of the Cyber Security Law is to safeguard national security and social public 
interests. Data has multiple attributes that need to be analysed  in specific situations. China hereby 
reiterates that, security assessment is not applied to all data that are tra nsferred abroad, but only WT/TPR/M/3 75/Add.1  
 
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  to personal information and data which are important to the Country but not necessarily  significant 
to enterprises and individuals collected and generated in China.  
2.  We understand that Article 37 is applied to Chinese and foreign service providers equally, and 
this was also reaffirmed by China's response. Our concern is, however, that foreign service providers 
may be exposed to "virtually" or de facto less competitive situation than Chinese companies by 
owing additional cos ts of installing new servers or conducting security assessment. Could China 
explain how this point could be justified in relations to the national treatment obligation under 
Article  17 of GATS?  
Reply  
China has always adhered to the principle of national t reatment of the WTO, and equally treat all 
domestic and foreign service providers in service areas where China has pledged its commitment. 
The requirements of the relevant mechanisms provided in Article 37 of the Cyber Security Law apply 
equally to both do mestic and foreign service providers. All the requirements applied to foreign 
service providers are not stricter than those applied to their domestic counterparts, which does not 
violate the principle of national treatment. Similarly, Chinese service provi ders will also comply with 
relevant laws and regulations of countries where they conduct overseas business, such as actively 
responding to the increased compliance costs of the General Data Protection Regulations (GDPR).  
Page 164, paragraph 4.204  
Question 111 
Regarding construction services, China has made a reservation in its GATS commitments that wholly -
owned foreign enterprises are restricted from conducting businesses in four types of construction 
projects. Could China elaborate the reasons behind these  reservations? In addition, does China 
consider withdrawing such reservation?  
Reply  
As per China's  GATS commitments, the construction service categories listed in China's  schedules of 
concessions on services and trade has been opened up for foreign invest ment. In the Shanghai Free 
Trade Zone, we have lifted restrictions on foreign -invested construction enterprises who could 
previously only undertake construction projects with over 50% foreign ownership ratio. In the future, 
China will assess the implementa tion of relevant measures in the Shanghai Free Trade Zone where 
appropriate and make further decisions based on the assessment results. China is willing to consult 
with its trading partners in terms of multilateral and regional free trade arrangements on t he basis 
of mutually beneficial and win -win cooperation.   
Follow -up question   
Japan appreciates China's effort to open up foreign investment access in the construction services. 
We understand that wholly foreign -owned enterprises are allowed to conduct businesses only in 
four types of construction projects, which China describes as construction projects with over 50% 
foreign ownership ratio, outside the Shanghai Free Trade Zone. Could China elaborate the rationale 
and the national policy objectives of th is restriction?  
In addition, China states, "China will assess the implementation of relevant measures in the 
Shanghai Free Trade Zone where appropriate and make further decisions based on the assessment 
results." Does this statement mean that China has an  intention to improve its Schedule of 
Commitments depending on the results of the assessment?  
Reply  
The Chinese government has been earnestly carrying out its WTO commitments and continuously 
working for its further opening up, which has always been China' s clear policy orientation. If Japan 
has doubts about the further opening up of specific service sectors, China is willing to negotiate with 
its trading partners about multilateral and regional free trade arrangements on the basis of mutually 
beneficial an d win -win cooperation.  WT/TPR/M/3 75/Add.1  
 
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  LAO PDR  
Question  
How would the "Belt and Road " Initiative enhance the multilateral trading system, especially the 
trade liberalization both in China and t hose participating WTO members?  
Reply  
The "Belt and Road" Initiative is proposed by China, but its opportunities and achievements belong 
to the whole world, which are of great significance to promote cooperation and common development 
among various countries and regions, and improve the level of trade liberalization and facili tation. 
It is also conducive to the healthy and stable development of the multilateral trading system.  
The backward infrastructure is the main barrier that hinders the participation of WTO's developing 
members in international trade. The "Belt and Road" In itiative focuses on strengthening the level of 
interconnection among the countries along the road, helps to enhance the ability of WTO members 
to participate in international trade and helps them better integrate into the multilateral trading 
system.  
The "Belt and Road" Initiative will further enhance the level of trade facilitation and make important 
contributions to the implementation of the WTO Trade Facilitation Agreement. At the parallel meeting 
Promoting Unimpeded Trade Cooperation at the Belt and Roa d Forum for International Cooperation 
held last year, Zhong Shan, Minister of Commerce, noted that China would like to strengthen trade 
facilitation cooperation with countries along the Belt and Road, and speed up the implementation of 
the WTO Trade Facili tation Agreement. Proactively promoting the co -construction of the "Belt and 
Road" is an important measure for China to expand its opening to the outside world. China will 
further strengthen its trade facilitation cooperation with the countries along the l ine, further simplify 
the customs clearance, inspection and quarantine, tax and other supervision procedures, and further 
expand China's trade exchanges with such countries.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  AUSTRALIA  
Report by the Secretariat  - WT/TPR/S/375  
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Framework and Objectives , 2.2.1 Institutional framework , page 32, 
paragraph 2.8  
The report states that the State Market Regulatory Administration will be established.  
Question 1  
What is the role of this new agency - the State Mark et Regulatory Administration?   
Reply  
It is responsible for overall market supervision and management. It will register market entities and 
establish the public notice and information sharing mechanism, organize market supervision and law 
enforcement, carry out anti -monopoly work, regulate and safe guard market order, organize the 
implementation of the "Strengthening the Nation through Quality Improvement" strategy, supervise 
industrial goods quality safety, food safety and special equipment safety, and administer the work 
on measuring standards, ins pection and testing, and certification and accreditation.  
2.3 Trade Agreements and Arrangements , 2.3.2 Regional trade agreements and unilateral 
measures , page 34, p aragraph 2.23  
The report states that since 2002 China has signed 16 FTAs with 24 countries o r regions.  
Question 2  
Which of these FTAs include provisions relating to e -commerce and which aspects of e -commerce 
are covered in China's  FTAs?   
Reply  
Among the 16 FTAs China has signed with its trading partners, China -Korea FTA and China -Australia 
FTA include a stand -alone chapter on e -commerce. The provisions of the e -commerce chapter mainly 
cover the topics of domestic regulatory frameworks, customs duties, electronic authentication and 
electronic signatures, consumer protection, personal information protection, paperless trading and 
e-commerce cooperation. Besides these two FTAs, some other FTAs China has signed also include 
e-commerce related provisions.  
2.4 Investment Regime , 2.4.1 Regulatory framework and market access , page 39, 
paragraph 2.36  
The report states that the State Council is developing a Market Access Negative List that will be 
applicable throughout the country sometime in 2018 and applies to both domestic and foreign 
companies. On 31 May 2018, Ministry of Commerce Spokesperson Gaofeng s aid China was "stepping 
up efforts " on two negative lists to be released and implemented by the end of June one for 
nationwide implementation and one for pilot FTZs.  
Question 3   
Could China provide an update on when this country -wide negative list will be available? Will this be 
applicable for trading nations such as Australia? Does it remove the requirement to operate in a Free 
Trade Zone (FTZ)?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
On 28 June 2018, NDRC and MOFCOM jointly issued the Special Administrative Measures for Foreign 
Investment Access (Negative List, 2018 version), which greatly eases the market access and the 
opening measures are applicable to all foreign investors. The 2018 version of the Negative List 
launched liberalization measures for 22 fields including banks, a utomobiles, railway trunk lines, 
power grids, gas stations, etc., and the restrictive measures have been reduced by about 1/4 from 
63 to 48. In the field of finance, the Negative List cancels the restriction on foreign capital 
participation in the banking sector, relaxes the foreign capital participation of securities companies, 
fund management companies, futures companies and life insurance companies to 51%, and will 
abolish restrictions on foreign capital participation in the field of fi nance in 2021. In the field of 
infrastructure, it abolishes restrictions on foreign investment in railway trunk roads and power grids. 
In the field of transportation, it abolishes restrictions on foreign capital of railway passenger 
transport company, international maritime  transport companies and international ship agents. In 
the field of business trade, it abolishes restrictions on foreign capital of gas stations and grain 
purchase wholesale agents. In the field of culture, it abolishes the provisions prohibiting the 
investment in Internet service premises. In the field of automobile, it abolishes restrictions on foreign 
capital participation of special vehicle and new energy automobiles, and will abolish restrictions on 
foreign capital participation of commercial vehicle i n 2020 and restrictions on foreign capital 
participation of passenger vehicles in 2022, as well as the restriction that the number of joint venture 
shall not exceed two. In the field of vessel, it abolishes restrictions on foreign capital, including all 
the links of design, manufacture and repair. In the field of aircraft, it abolishes restrictions on foreign 
capital, including trunk aircrafts, regional aircrafts, general -purpose aircrafts, helicopters, unmanned 
aerial vehicles, aerostats and other types. I n the field of agriculture, it abolishes restrictions on 
foreign capital in production of crop seeds other than wheat and corn. In the field of energy resources, 
it abolishes restrictions on foreign capital of mining of special scarce coals, graphite, smel ting 
separation of rare earth and tungsten smelting.  
Question 4   
Is the country -wide negative list referred to in this report one of those outlined by the Ministry of 
Commerce on 31 May, or doe s it represent a separate list?  
Reply  
Two lists are the same, i .e. Special Administrative Measures for Foreign Investment Access (Negative 
List, 2018 version) jointly issued by NDRC and MOFCOM on 28 June 2018.  
Question 5   
Could China explain the differences between the negative list in the Investment Catalogue that a 
foreign investor must first meet and the Market Access Negative List that is being updated this year?  
Reply  
According to the Opinions of the State Council on Implementing the Negative List for Market Access 
(Guofa (2015) No. 55), the Negative List for Mar ket Access is a consistent management measure 
applicable to domestic and foreign investors and a unified requirement for market access 
management of various market entities. Applicable to the investments and operations of foreign 
investors in China, Specia l Administrative Measures for Foreign Investment Access is a special 
management measure for foreign investment access. There will be no duplication between the two, 
and there will be no restriction that is included in two lists at the same time.  
Question 6  
Could China explain what the "opening measures " are for the following services sectors to be further 
liberalised as indicated in the report: manufacturing of vehicles, ships and aircrafts, resources and 
energy, infrastructure, transport, commercial distri bution, professional services etc?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
On 28 June 2018, NDRC and MOFCOM jointly issued the Special Administrative Measures for Foreign 
Investment Access (Negative List, 2018 version). The 2018 version of the Negative List launched 
liberalization measures  for 22 fields, and the restrictive measures have been reduced by about 1/4 
from 63 to 48. In the field of finance, the Negative List cancels the restriction on foreign capital 
participation in the banking sector, relaxes the foreign capital participation of securities companies, 
fund management companies, futures companies and life insurance companies to 51%, and will 
abolish restrictions on foreign capital participation in the field of fi nance in 2021. In the field of 
infrastructure, it abolishes restrict ions on foreign investment in railway trunk roads and power grids. 
In the field of transportation, it abolishes restrictions on foreign capital of railway passenger 
transport company, international maritime transport companies and international ship agents . In 
the field of business trade, it abolishes restrictions on foreign capital of gas stations and grain 
purchase wholesale agents. In the field of culture, it abolishes the provisions prohibiting the 
investment in Internet service premises. In the field o f automobile, it abolishes restrictions on foreign 
capital participation of special vehicle and new energy automobiles, and will abolish restrictions on 
foreign capital participation of commercial vehicle in 2020 and restrictions on foreign capital 
partici pation of passenger vehicles in 2022, as well as the restriction that the number of joint venture 
shall not exceed two. In the field of vessel, it abolishes restrictions on foreign capital, including all 
the links of design, manufacture and repair. In the field of aircraft, it abolishes restrictions on foreign 
capital, including trunk aircrafts, regional aircrafts, general -purpose aircrafts, helicopters, unmanned 
aerial vehicles, aerostats and other types. In the field of agriculture, it abolishes restricti ons on 
foreign capital in production of crop seeds other than wheat and corn. In the field of energy, it 
abolishes restrictions on foreign capital of mining of special scarce coals. In the field of resources, it 
abolishes restrictions on foreign capital of  graphite, smelting separation of rare earth and tungsten 
smelting.  
3 TRADE POLICES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , 3.1.1 Customs procedures, valuation and 
requirements , pages 45 -46, paragraph s 3.4 and  3.5 
The report states " Importers are required to comply with the inspection and quarantine requirements 
of Customs and the General Administration of Quality Supervision, Inspection and Quarantine 
(AQSIQ), as stipulated by law and by the Catalogue of Import and Export Com modities Subject to 
Compulsory Inspection. " We understand that the General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ) was incorporated as part of the General Administration of 
Customs of China (GACC) as the newly created State  Administration for Market Regulation (SAMR) 
following the Chinese government restructure announced in March 2018.  
Question 7   
Can China please confirm which body provides the inspection and quarantine requirements with 
which importers are required to comply?   
Reply  
It is clearly stated in decision on the institutional restructuring plan of the State Council that the 
responsibilities and teams of Customs and the General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ) for entry -exit inspection and quarantine management are 
incorporated into those of the General Administration of Customs of China (GACC).  
3.1.3 Tariffs , 3.1.3.2 Tariff rate quotas , page 49, p aragraph 3.17   
The report states that China 's most recent notification on tariff quota utilization dates from 2014, 
and that fill rates for China 's TRQs varied strongly by product (Section 4.1.3.1.1). Australia notes 
that in China 's most recent WTO notification of TRQ fill rates (MA:2 notification of 1 February 2016), 
the TRQ fi ll rates during 2014 varied from 31.2 % to 100 %.  WT/TPR/M/3 75/Add.1  
 
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  Question 8   
Could China indicate when it intends to submit notifications of TRQ fill rates for the years 2015 -2017?   
Reply  
China will submit the notification as soon as possible.  
Question 9  
Could China explain, for wheat, corn and rice, the reasons for the underfills [below 65%] in its 
notified tariff quotas for 2014, including, for each product, whether the underfill is due to market 
conditions, the existence of SPS measures for the product, or restrict ive tariff quota administration?  
Reply  
Tariff quotas are import management system permitted by the WTO rules and commonly used by 
its members to manage the import of agricultural products. During the negotiations on China's  
accession to the WTO, China comm itted to abolishing the tariff quotas for a series of agricultural 
products such as barley, soybeans and rapeseed, and greatly reducing the import tariffs on 
agricultural products. China also promised to adopt a huge amount of tariff quotas. The total amou nt 
of tariff quotas for three staple foods, namely wheat, corn and rice reached up to 22 million tonnes , 
with low in -quota and out -of-quota rates and a maximum of only 65% out -of-quota rates. All these 
efforts have made tremendous contributions to the libe ralization of international trade of agricultural 
products.  
In practice, the use of tariff quotas for agricultural products is dependent on a variety of factors. 
Importers use of tariff quotas for related products on imports is influenced by consumers pref erences 
on specific agricultural products, importers assessments and judgments on the supply and demand 
of the domestic market and other market factors.  
Reply  
China has always respected WTO rules and insisted on managing foreign trade of agricultural 
produ cts according to WTO rules. Since joining the WTO, China has been earnestly fulfilling its 
commitment to the tariff quota management of wheat, rice and corn, and has formulated clear and 
open laws and regulations and departmental regulations on allocating and reallocating tariff quotas 
for agricultural products. China has also been following the principle of fairness, transparency and 
non-discrimination to allocate and reallocate quotas.  
Question 10   
Could China explain what it is doing to increase utilisat ion of underfilled tariff quotas, as per the 
objective of the Review of the Bali Ministerial Decision on TRQ Administration?   
Reply  
China carries out tariff quota for agricultural products according to its commitment to the WTO. 
According to Provisional Me asures for the Administration of Import Tariff Quotas of Agriculture 
Products, details such as the total tariff quota, conditions for application, principles of allocation and 
term of implementation for the next year are released at the end of September ev ery year, and the 
annual quota is broken down to enterprises in the beginning of the year. Enterprises receiving the 
quota operate independently according to market situation and choose the country, time and amount 
of import independently too. They are req uired to write off the used quota in time. For those who 
neither use nor write off the quota, their quota for the next year will be reduced in order to raise the 
utilization rate.  
3.1.5 Import prohibitions, restrictions, and licensing , page 53, p aragraph 3.34 
The report states  "On 18 July 2017, China notified the Catalogue of Solid Wastes Forbidden to Import 
into China by end -2017, which included four classes and 24 kinds of solid wastes (Table 3.5). The WT/TPR/M/3 75/Add.1  
 
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  authorities consider that this import prohibition do es not influence the distribution of goods imported 
legally. " 
Question 11   
Can China please provide information about the technical and scientific analysis underpinning the 
standards it has adopted in relation to the importation of foreign waste, as well a s information on 
domestic Chinese standards for the same products?  
Reply  
China revised the Environmental Protection Standards for Imported Solid Waste that Can Be Used 
as Raw Materials, strictly observes the procedures for formulating environmental laws a nd 
regulations, and carries out the complete process of initiation, argumentation, opinion solicitation, 
official release and implementation. China's Environmental Protection Standards for Imported Solid 
Waste that Can Be Used as Raw Materials differs from  the US and EU standards in auxiliary laws, 
regulatory focus and concerned contents, and focuses on radioactive pollution and alien inclusions, 
the indicator of the latter being set from the perspective of environmental pollution control. The 
original Envi ronmental Protection Standards for Imported Solid Waste that Can Be Used as Raw 
Materials was revised and put into force in 2005, and the inclusion limit for waste plastics has always 
been 0.5%. More than decade's implementation and investigations by relev ant departments show 
that if the imported waste is properly classified or pro -processed at the overseas place of production, 
it can meet China's environmental standards for imported waste.  
The series of standards, as border measures applicable for import,  don't affect the circulation, sale 
or disposal of legally imported solid waste in China. China observes the national treatment principle 
and gives equal treatment to imported and locally produced solid waste, and applies the same 
environmental requirement  and administration on their disposal.  
3.3.2 Standards and other technical requirements , 3.3.2.1 Overview , page 71, 
paragraph  3.115  
The report advises that  "[t]he Standardization Administration of China (SAC), under the General 
Administration of Quality Su pervision, Inspection, and Quarantine (AQSIQ), administers China's 
standardization system.  
Question 12   
What is the role of the new State Administration for Market Regulation (SAMR) in relation to the 
Standardization Administration of China?   
Reply  
The duties of the Standardization Administration of China  are transferred to SAMR, but the title is 
kept. SAMR will be in overall charge of the standardization work.  
Question 13  
Are there any changes proposed for China 's standards and conformance infrastru cture system, in 
particular the Standardization Administration of China?  
Reply  
Standardization Administration of China 's duties in standardization administration are not changed.  WT/TPR/M/3 75/Add.1  
 
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  Page 72, paragraph  3.117  
Question 14  
Have the areas of responsibility of th e former General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ), now the State Administration for Market Regulation, as part of 
the General Administration of Customs of China (GACC), changed from those stated at this 
paragraph?  
Reply 
Currently, the institutional restructuring is not yet put in place. The Provisions of the State General 
Administration of Quality Supervision, Inspection and Quarantine on the Main Responsibilities, 
Internal Organizations and Staff Size has not yet been formally printed and distributed, so relevant 
functions cannot be clearly defined. China will report relevant situations to WTO Secretariat and 
relevant countries as per the procedures after the institutional restructuring is completed and 
responsibil ities are finally determined.  
Page 74, paragraph 3.124   
The paragraph notes that one of the specific trade concerns (STC) raised in the Committee of 
Technical Barriers to Trade between January 2016 and February 2018 concerns specific product 
regulations relating to coal. Australian facilities are equipped to accurately test for coal quality 
standards, and Australian test results are accepted by other coal importing countries. China 's 
acceptance of coal test results from independent laboratories in Austral ia would significantly reduce 
delays and costs for Australian exporters. Less duplication of testing will enable Chinese testing 
authorities to focus resourcing on other products that are likely to have a higher risk of 
non-compliance.  
Question 15   
Would C hina be willing to accept coal test results by independent laboratories in Australia?  
Reply  
According to the general principle of world trade, and considering the factors that may change the 
environmental indicators of coal and other goods during transpor tation, the inspection and 
quarantine results at the destination usually prevail regarding the environmental status of goods. 
Testing of coal environmental indicators is an official action of law enforcement carried out by the 
Chinese government for enviro nmental protection, which cannot be replaced by third -party testing. 
China welcomes Australian exporters to test their coal, either independently or through a third party, 
before exporting it to China, so as to reduce the non -conformance risks when the coa l arrives in 
China . 
3.3.2.2 Product certification , page 74, paragraph 3.127  
Question 16   
Have the areas of responsibility of the China National Certification and Accreditation Administration 
(CNCA), now under the State Administration for Market Regulation  as part of the General 
Administration of Customs of China (GACC), changed from those stated at this paragraph?   
Reply  
CNCA is allocated to SAMR with its duties basically unchanged. But SAMR and GACC are both 
organizations directly affiliated to the State Council. SMAR is not attached to GACC.  WT/TPR/M/3 75/Add.1  
 
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  Question 17  
Will China consider introducing alternative methods to animal testing, for approval of imported 
cosmetics?  
Reply  
Regarding the cosmetics safety evaluation, China always supports the "3R principle" on animal 
testing that's aimed to protect animal welfare, and it actively promotes alternative methods to animal 
testing in cosmetics safety evaluation. The former China Food and Drug Administration (CFDA) 
carried out research and demonstration of relatively mature alternative methods of cosmetics testing, 
and included some of them, such as 3T3 NRU PT of chemical materials, TER and Skin Photo  allergy, 
in the Technical Specifications for Cosmetics Safety (2015). At present, China is strengthening the 
management  of new cosmetics materials and establishing and using the database thereof, with a 
view to accumulating experience in the safe use of cosmetics materials and promoting product safety 
risk evaluation. Meanwhile, we have accelerated the formation of a Chine se organization specializing 
in the research and demonstration of alternative methods to animal testing for cosmetics through 
top-level design, overall planning and step -by-step implementation, so as to create the research and 
demonstration system for the alternative toxicology of cosmetics. In this  process, China is willing to 
tighten the technical exchange and cooperation with all parties in the world, and realize the extensive 
application of alternative methods for cosmetics material safety evaluation.  
3.3.3 Sanitary and phytosanitary requirements , 3.3.2.2 Product certification , page 76 , 
paragraph 3.138  
Question 18  
Has the responsibility of the agencies listed changed as a result of the 2018 restructure?  
Reply  
Currently, the institutional restructuring is not yet put in place. The Provisions of the State General 
Administration of Quality Supervision, Inspection and Quarantine on the Main Responsibilities, 
Internal Organizations and Staff Size has not yet been formally printed and distributed, so relevant  
functions cannot be clearly defined. China will report relevant situations to WTO Secretariat and 
relevant countries as per the procedures after the institutional restructuring is completed and 
responsibilities are finally determined.  
3.3.7 Intellectual property rights , 3.3.7.1 Overview , Table 3.25 , page 98, paragraph 3.224  
The table indicates that China is a member of a number of WIPO -administered treaties. Australia 
welcomes China's  accession to these treaties. We note that in the past, China has express ed interest 
in protecting international broadcasts under the Rome Convention. Australia would encourage that 
China also accede to the Rome Convention.   
Question 19  
Has China further considered acceding to the Rome Convention and protecting broadcasts of 
contracting states?  
Reply  
China hasn't considered acceding to the Rome Convention  yet, but we protect relevant broadcasts 
of contracting states according to international agreements or treaties we both joined, including the 
Agreement on Trade -Related Aspect s of Intellectual Property Rights.  
Question 20  
Does China intend to accede to, or comply with, the Patent Law Treaty and the Singapore Treaty on 
the Law of Trademarks?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
China has always attached great concern to the development of the Patent Law Trea ty and the 
Singapore Treaty on the Law of Trademarks, and conducted relevant researches. However, China 
has not yet temporarily determined whether to be a part of the Patent Law Treaty and the Singapore 
Treaty on the Law of Trademarks.  
Question 21  
Does China intend to accede to, or comply with, the International Convention for the Protection of 
New Varieties of Plants, as revised at Geneva, 19 March 1991 (UPOV 91)?   
Reply  
China is studying the 1991 edition of UPOV, and plans to launch the work of ac ceding to it in 
reference to our revision of the Regulations on Protection of New Varieties of Plants.  
3.3.7.2 Industry property , 3.3.7.2.2 Trademarks , page 101, paragraph 3.237  
The report states that decisions by the Trade Mark Office (TMO) to refuse to r egister a trademark 
must be appealed to the Trademark Review and Adjudication Board within 15 days of receipt of the 
notification of the decision. If the Board upholds the TMO's decision, the applicant may take the case 
to court within 30 days of notificat ion. Australia seeks to understand whether these timeframes are 
extendable, as anecdotal reports indicate that they may be an issue for some Australian b usinesses 
and IP professionals.  
Question 22  
Could China advise whether the time periods to appeal decisions by the Trade Mark Office referred 
to in paragraph 3.237 of the Secretariat's  report can be extended, and if so, under what 
circumstances?   
Reply  
The time period for appealing is the statutory period, and cannot be extended.  
Page 101, paragraph 3.240  
The report states that several amendments have been made to regulations and rules to further 
strengthen trademark protection and that further guidance through a Judicial Interpretation of the 
Supreme People 's Court entered into force on 1 March 2017. Australia seeks to further understand 
these trademark amendments.   
Question 23   
Could China provide more information about the measures available to businesses to oppose 
applications or cancel regi strations of trade marks not made in good faith?  
  
Reply   
 
If the priority right owner finds that the trademark has been preregistered, it may file an application 
with TMO during the announcement period for preliminary examination and approval, and claim t he 
rights through objection procedures. While raising an objection against trademark, TMO shall make 
the decision that the objected trademark shall not be registered according to relevant provisions of 
the Trademark Law and its implementing regulations, if  it considers that the objected trademark 
does indeed violate relevant provisions of the Trademark Law according to the facts stated and 
evidence materials provided by the parties.  
 
In recent years, the objection solving department of TMO has taken various  measures to crack down 
the malicious trademark preregistration, thus effectively curbing such acts as violation of the WT/TPR/M/3 75/Add.1  
 
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  principle of good faith, maliciously attaching to others trademark reputation or possession of public 
resources, and fully protecting th e rights and interests of the trademark owner.  
Question 24   
Could China provide further information about the Judicial Interpretation of the Supreme People 's 
Court and any guidance it provided in relation to the g ood faith requirement for trade marks?  
  
Reply  
 
Relevant  laws and regulations.  According  to Article  7 of the Trademark  Law of the People 's Republic  
of China:  Any application  or usage  of a trademark  shall abide  by principles  of good faith. As for the 
sincerity  of the trademark  agency,  it is stated  in Clause  1 of Article  19 that a trademark  agency  shall 
abide  by principles  of good faith, abide  by relevant  laws and administrative  regulations,  and handle  
trademark  registration  and other  trademark  matters  according  to the instructions  of its principals ; a 
trademark  agency  shall also be obliged  to keep secret  any confidential  information  and trade  or 
business  secrets  obtained  through  the performance  of its duties.  It is also stated  in Clause  3 of 
Article  68 that Where  a trademark  agency  organization  violates the principle  of good faith and 
infringes  the principals  legal interests,  such organization  shall assume  civil liability  according  to the 
law, and be punished  by the trademark  trade  organization  according  to the articles  of association.  
 
Relevant judi cial interpretations made by the Supreme People 's Court. The Regulations on Several 
Issues Concerning the Trial of Administrative Cases Involving the Granting and Confirmation of 
Trademark Rights (the Regulations) enacted in March 2017 also regulates the p rovisions for 
malicious registration of trademarks and other problems. It takes the principle of integrity and credit 
stated in Article 7 of the Trademark Law as an important guiding principle, and specifies regulations 
for malicious registration of tradem arks in many articles, which perfectly represents the judicial 
orientation in protecting the honest operation and curbing malicious registration of trademarks.  
  
Relevant guiding cases issued by the Supreme People 's Court. In guiding case No. 82 Wang Suyongs 
lawsuit vs. Shenzhen Guoliisi Garments Co., Ltd. and Hangzhou Yintai Century Department Store 
Co., Ltd. against the trademark infringement (2014 MTZ No. 24), the following judgment rules were 
determined: where a party violates the principle of good  faith, damages the legitimate rights and 
interests of others, disrupts the order of fair competition in the market, maliciously acquires, 
exercises trademark rights and claims infringement by others, the people 's court shall, on the 
grounds of abuse of su ch rights, render no support to its claims.  
3.3.7.2.3 Geographical Indications , page 102, paragraph 3.244  
The report notes that protection of geographical indications (GIs) is available through the General 
Provisions of Civil Law, and additionally through SAIC, AQSIQ and the Ministry of Agriculture. 
Australia seeks to understand more about the processes available for protection of GIs in China.   
Question 25  
What is the process that foreign applicants need to follow to obtain protection for their GIs in Chin a, 
either through a trade mark or other means?   
Reply  
We comply with the Regulations on Registration and Review of Geographical Indications of Foreign 
Agricultural Products (Nong Zhi An Fa [2017] 3) issued by the Agricultural Product Quality Safety 
Center of the Ministry of Agriculture on 1 March 2017.  
Question 26   
What information is made publicly  available during the process of Chinese authorities considering 
whether to protect a GI?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Name of the registered product, person of registration, quality and technical specifications of the 
product, etc.  
Question 27   
In respect of each of the different methods of GI protection, what is Chinese law and practice 
regarding an application to protect a GI which is similar to a prior registered trademark?   
Reply  
In dealing with the relationship between trademarks and geographical indications, China complies with the 
provisions of Article 22.3 of the Agreement on Trade -Related Aspects of Intellectual Property Rights. In 
practice, where the product name applying for  a geographical indication is identical to that of an ordinary 
trademark, the priority trademark holders written consent must be obtained. According to the Trademark 
Law and its supporting laws, geographical indications, as proof for trademarks or collecti ve trademarks 
applying for registration, shall be rejected if they are similar to those previously registered or applied for 
similar goods.  
Question 28   
How is information regarding the rules for certification trademarks  and the members of a collective 
trade mark made available to the public?   
Reply  
Relevant laws and regulations concerning certification trademarks and collective trademarks include 
the Trademark Law, the Implementing Regulations of the Trademark Law and Procedures for the 
Registration and Administration of Collective Marks and Certification Marks, which are all open laws, 
administrative regulations and departmental rules. The full texts of aforesaid legal provisions have 
been published on the official website of TMO  China Trademark Network at 
http://sbj.saic.gov.cn/zcfg/sbxzgz/ . 
Page 103, paragraph 3.245  
The report states "[t]he protection of GIs is granted on the basis of reciprocity, i.e. to products that 
originate from a country that has  established the corresponding communicative and cooperative 
relationship with China. " 
Question 29  
Could China elaborate on what is required to establish the mentioned reciprocity so that GIs are 
protected?   
Reply   
Taking bilateral agreements between China and the EU as an example, China and Europe recognize 
each other's  100 geographical indications, and the above -mentioned cooperative relations are 
mutually beneficial.  
Question 30   
Australia understands that China and the European Union are negotiating a bilateral agreement to 
recognise 100 of one another's GIs. Could China provide an update on the progress of this 
agreement, particularly the status of oppositions to the terms proposed for protection?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Since t he first round of negotiations in 2011, China and EU have held 16 rounds of negotiations, 
reaching consensus on most clauses of the text. In June 2017, China and EU signed the 
Memorandum of Agreement on Cooperation and Protection of Geographical Indication s, and formally 
launched the proclamation procedure for the first batch of lists. Each party announced 
100 geographical indications of red wine. Among them, some of the EU's 100 geographical 
indications are objected by relevant right owners, involving red wine, cheese and other products. At 
present, China is making all endeavours for research and solving.  
3.3.7.5 Enforcement , 3.3.7.5.2 Administrative e nforcement , page 108, paragraph 3.267  
The report notes that a "Traceability " campaign was launched by the T MO in September 2017, which 
was focussed on well -known trademarks , GIs, foreign -related trademarks  and time -honoured 
brands. Australia is interested to know about what was involved in this campaign.  
Question 31  
Could China provide further information about what activities were undertaken in the "Traceability " 
campaign and how they were effective?   
Reply  
According to the unified deployment of the former SAIC, from the end of September 2017 to 
March  2018, the forme r industrial and commercial system launched a campaign of Traceability in 
the whole system to combat trademark infringement. Focusing on well -known trademarks, 
geographical indications, foreign -related trademarks and time - honoured trademarks, the campaign  
intensifies its efforts to trace back to the source of trademark infringement cases, launches a full -
chain strike on trademark infringement commodity production, sales and manufacture of registered 
trademarks, effectively prevents and contains regional an d industrial risks of trademark infringement, 
and efficiently improves the effectiveness of trademark administrative law enforcement.  
To follow up the investigation of the cases and ensure the actual effect of the campaign, TMO held 
a national forum on adm inistrative law enforcement of trademarks of industrial, commercial and 
market supervision departments in Huangshi, Hubei Province on 20 December 2017 in a bid to 
coordinate with and solve the problems encountered in case investigation and handling, and to  make 
arrangements for the next phase of the campaign.  TMO also required all local departments 
proactively promoting the in -depth implementation of the campaign in accordance with the plan and 
timetable.  
During the campaign, the national market supervision  departments investigated 4,418 pieces of 
clues, investigated and dealt with 2,270 cases, with an illegal operation amount of over 
50 million  yuan. Up to the end of April, 1,975 cases have been completed in the campaign of 
Traceability, with the fine amoun ted to 253.33 million yuan. Meanwhile, 23 cases were transferred 
to the judicial organs, and 48 fake manufacturing and selling sites were destroyed. Some cases are 
still under investigation.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.2 Policy objectives and administration , 
page 113, paragraph 4.5  
Question 32   
Can China provide more information about the 2016 -2020 five -year plan and how it plans to reform 
the pricing mechanisms for major farm products while assuring farme rs sell their harvest at 
reasonable prices?   
Reply  
The price of farm products in China is fully liberalized and formed through the market.  WT/TPR/M/3 75/Add.1  
 
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  Page 113, p aragraph 4.6  
The WTO Secretariat report notes that the Government intends to increase fiscal spending, and loans 
for farmers and for the development of agriculture and the countryside.  
Question 33  
Can China please provide more information about this initiative, inclu ding a description of the 
eligibility criteria for the loans and the objective of the initiative?   
Reply  
According to the Commercial Bank Law, Chinese commercial banks operate independently, and are 
responsible for their own gains and losses. Commercial bank loan should not only take into account 
the single indicators such as return on net capital gains of  an enterprise, but also overall indicators 
such as debt payment capacities in the future, integrity and sustainable development.  
4.1.3 Policy instrumen ts, 4.1.3.1 Border measures , 4.1.3.1.1 Measures affecting imports , 
page 114 , paragraph 4.8  
The WTO Secretariat report states in 2017, the average tariff on agricultural products remained 
unchanged, at 14.8%. The product groups subject to higher -than-averag e tariff protection included 
sugars and confectionary (30.9%); cereals and preparations (23.3%); cotton (22.0%); beverages, 
spirits and tobacco (21.8%); and coffee and tea  (14.9%).   
Question 34   
Has China considered the impact the tariffs have on consumer prices and the economic cost on 
Chinese consumers?   
Reply  
China's average tariff on agricultural products is less than 15%, which is very low among WTO 
members, and most of them is ad valorem  tariff without complicated tariff, the highest being 65%. 
We don 't apply SSG measures and the bound tariff rate is the same as applied rate. China is one of 
the most open agricultural product markets in the world. As China signs more free trade agreements, 
the actual tariff on agricultural products has kept falling. Ch ina's agricultural product import has 
increased quickly since it acceded to the WTO and consumer demand for imported agricultural 
products kept rising. The tariff on agricultural products has little impact on consumer price and 
economic cost  
Question 35   
Is China considering further trade liberalisation of agricultural products?  
Reply  
China's average tariff on agricultural products is less than 15%, which is very low among WTO 
members, and most of them is ad valorem  tariff without complicated tariff, the h ighest being 65%. 
We don't apply SSG measures and the bound tariff rate is the same as applied rate. China is one of 
the most open agricultural product markets in the world. As China signs more free trade agreements, 
the actual tariff on agricultural produ cts has kept falling. Meanwhile, while the liberalized agricultural 
trade brings more benefits for Chinese consumers, it also exerts some negative impacts on China's 
agricultural development and the income or even livelihood of Chinese farmers, especially small rural 
households. As a developing country with nearly 1.4 billion people and a large amount of small rural 
households who live on farming, China has to keep a balance between agricultural trade liberalization 
and ensuring grain security, farmers' liv elihood security and countryside development. Within the 
multilateral trade system, China is willing to continue to promote the Doha agricultural talks on the 
basis of respecting development empowering and the consensuses reached during previous talks.  WT/TPR/M/3 75/Add.1  
 
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  4.1.3.2.2 Price controls and market price support systems , page 123 , paragraph 4.25  
The WTO Secretariat report states that from 1 January 2016, agricultural products (grains, cotton, 
edible vegetable oil, sugar, and silk) and tobacco leaf were removed from the list of products subject 
to price controls.  
Question 36   
What has been the effect of this change on production of these commodities? Are similar changes 
being considered for rice and wheat?   
Reply  
China's grain market and price was fully liberalized in  2004 and grain price was formed completely 
through the market.  
 
4.1.3.2 Internal measures , 4.1.3.2.3 Other measures , page 125, paragraph 4.32  
Question 37   
Can China please provide details of the insurance products available for primary producers in drought 
events. What are the triggers for claiming insurance and what are the types of payments for primary 
producers as a result of drought?   
Reply  
The insurance products are developed and sold by insurance companies directly to farmers, which 
may vary pr oduct by product. Some of the insurance products are provided on product basis, which 
may cover the damages caused by natural disasters that are beyond the control of the farmers, and 
the losses resulting from unfavourable  market conditions. Claims can be made when the agreed 
terms are met, and the payment will be directly provided to farmers by insurance companies. For 
details of the insurance product, please refer to the product provided by Sunlight Agricultural Mutual 
Insurance Company as an example ( http://www.samic.com.cn/products/show/7204 ). 
4.1.3.3 Levels of support , 4.1.3.3.1 WTO notifications , page 126 , paragraph 4.36  
The WTO Secretariat report states Support notified under the Amber Box (in cluding de minimis ) had 
continued to increase, reaching RMB 123 billion in 2010 . 
Question 38   
Australia notes the latest notification on domestic support is from 2010, when does China plan to 
notify their latest domestic support measures?   
Reply  
The notification is under preparation.  
Question 39  
Has China considered restructuring its domestic support programmes to shift away from trade -
distorting support (i.e. Amber Box) to achieve its desired policy outcomes through alternative 
measures that are  de-coupled from production, may be more effective and not distort trade (i.e. 
Green Box)?   
Reply  
China is carrying out the agricultural supply -side structural reform, which is aimed to let the market 
play the decisive role in resource allocation. The ongo ing agricultural reform observes the basic 
principles of market -based pricing and price -subsidy separation. China, in view of its own demand WT/TPR/M/3 75/Add.1  
 
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  for and actual situation of agricultural development, will formulate agricultural policies that suit the 
current st atus and stage of its agricultural development as well as the WTO rules.  
Question 40  
Does China consider that their domestic support policies have a significant impact on other 
agriculture exporters, particularly developing countries? What steps has China taken to minimise the 
possible harmful impacts on global agricultural markets from its agricultural support?   
Reply  
Agriculture support measures in China are intended to maintain domestic food security and sustain 
basic livelihoods of farmers rather than seeking commercial and export interests. Objects of support 
are large numbers of small farm households, not large profit -oriented farms. Supported products 
are largely bulk agricultural products concerning food security and the livelihood of the people, e. g. 
grain, cotton, oil, and sugar, for all of which, except some special products to be exported, China is 
a net importer, hence doing no harm to global agricultural markets. Such support is adopted to deal 
with the impact of international market fluctuatio ns on Chinese agriculture and the livelihood of 
farmers, and is quantitatively allowable and so small as to not encourage production expansion by 
farmers, but simply to play a role in easing the impact of global price fluctuations facing them.  
4.4 Services , 4.4.1 Telecommunications , 4.4.1.2 Regulatory framework , page 149, 
Table  4.24 
The report notes five sub -sectors which allow foreign capital participation rates up to 100 % within 
the China (Shanghai) Pilot Free Trade Zone (CSPFTZ).   
Question 41  
Does China have any plans to extend liberalised foreign capital participation in the China (Shanghai) 
Pilot Free Trade Zone (CSPFTZ) to other pilot free trade zones?   
Reply  
By the end of June 2018, NDRC and MOFCOM issued the 2018 version of the Special Administrative  
Measures for Foreign Investment Access and the Negative List/Catalogue for Pilot Free Trade Zones 
(pilot FTZs). The 2018 version of Negative List/Catalogue for Free Trade Zones still follows the mode 
of description + list, which is applicable to all the p ilot FTZs, and its articles are reduced from 95 of 
the 2017 version to 45. In terms of easing market access, in addition to the opening measures 
consistent with the Special Administrative Measures for Foreign Investment Access, the Negative 
List/Catalogue for Pilot Free Trade Zones has put forward new measures in such important fields as 
seed industry, oil and gas, mineral resources, value -added telecommunication, culture, etc.  
Page 150, T able 4.24  
The Report by the Secretariat refers to the development of the "E-commerce Law of China ".  
Question 42  
Could you please provide more information on what this law will cover? What is the status of its 
development and when it is expected to be promulgated? Will there be an opportunity to provide 
comments on any draft law?   
Reply  
The Electronic Commerce Law of the People 's Republic of China was formally legislated by the end 
of 2013, and its draft was submitted to NPC Standing Committee for initial deliberation in 
December  2016, for secondary deliberation in Octob er 2017, and third deliberation in June 2018. It 
will be enacted soon.  WT/TPR/M/3 75/Add.1  
 
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  In the formulation of the Electronic Commerce Law, China has always adhered to the principle of 
scientific, democratic, open and transparent legislation, and has fully listened to vario us views by 
such means as thematic investigation, colloquium and seminars, carefully studied and sorted out 
the experiences and practices of international organizations and major countries. The UNCITRA and 
experts from the United States, the European Union , Japan, Singapore and other countries were 
invited to conduct special discussions on the legislation of the Electronic Commerce Law, and to 
study and adopt the opinions and suggestions of the UNCITRA, the United States and the European 
Union. At the same time, during the deliberations of the NPC Standing Committee, the draft 
Electronic Commerce Law was published on the website of NPC ( www.npc.gov.cn ) and public 
comments were taken from the public. The specific content covered by the draft can be obtained 
from www.npc.gov.cn . 
Question 43   
What other permanent policies or laws does China plan to introduce to facilitate e -commerce to give 
both importers and exporters greater certainty when engaging in e -commerce?   
Reply  
The Electronic Commerce Law of the People 's Republic of China was formally legislated by the end 
of 2013, and its draft was submitted to  NPC Standing Committee for initial deliberation in 
December  2016, for secondary deliberation in October 2017, and third deliberation in June 2018. It 
will be enacted soon to form a transparent and foreseeable environment for the development of 
e-commerce.  
Page 153, paragraph 4.136  
The report describes the adoption of a new cybersecuri ty law.  
Question 44  
While the Secretariat report includes information on how the cybersecurity law may impact 
telecommunications services providers, its implementation could affect a much broader range of 
services providers, including financial services pr oviders.  Will financial services providers be subject 
to data flow restrictions under the cybersecurity law for reasons other than prudential reasons?   
Reply  
According to the Cyberspace Security Law of the PRC, the personal information and key data 
collect ed by the operator of critical information infrastructure within China shall be stored within the 
territory. There are several points to be taken into account in order to carry out the Law: Only key 
data rather than all data shall be subject to the above p rovision  the data that is key to the nation, 
not to business or individual. There are laws for data that needs to be transferred to foreign countries. 
The data that are reviewed in security evaluation and proved not to endanger the public interest of 
count ry or society is allowed to go abroad. Personal information, after approved by the information 
holder, is allowed to go aboard. In order to ensure prudent regulation including effective monitoring 
on financial institutions, maintain market operation and sy stem security and safeguard nations 
financial security, China requires that the data carried by critical information system of securities, 
funds or futures operators that connect to financial infrastructure shall be stored within China. Apart 
from this, da ta for general business purpose is allowed to flow, and no limit will be put on financial 
service providers.  
Question 45  
As governments grapple with the challenges and opportunities presented by increased digital trade 
and the growth of the digital economy, it is particularly important to look to harmonise regulation 
where it is deemed necessary, and use of international standards is a key part of that process.  To 
what extent did China consider and attempt to utilise international standards in the de velopment of 
its Cybersecurity Law, in particular ISO 27001 on Information Security?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the Cyberspace Security Law of the PRC, the personal information and key data 
collected by the operator of critical information infrastructure within C hina shall be stored within the 
territory. There are several points to be taken into account in order to carry out the Law: Only key 
data rather than all data shall be subject to the above provision  the data that is key to the nation, 
not to business or in dividual. There are laws for data that needs to be transferred to foreign countries. 
The data that are reviewed in security evaluation and proved not to endanger the public interest of 
country or society is allowed to go abroad.  
Page 154, paragraph 4.141  
China 's new Cybersecurity law (the law) .  
Regarding data localisation, we understand that only businesses providing Critical Information 
Infrastructure (CII) (as defined in Art 31 of China's  new Cybersecurity law) are obliged to meet the 
enhanced security requirements.   
Question 46  
We understand China is currently drafting regulations that define and classify CII. Could China 
provide guidance on its definition of CII? Is this a whole of Chinese government definition? Can we 
expect China to release an official list of nationwide CII? If so, when?   
Reply  
In July 2017, the Office of the Central Cyberspace Affairs Commission of China made public 
comments on the Regulations on Security Protection of Critical Information Infrastructure (Draft for 
Comments). At present, the Office of the Cen tral Cyberspace Affairs Commission is working together 
with relevant departments to study and formulate the Regulations on Security Protection of Critical 
Information Infrastructure in accordance with the Network Security Law, and will further improve 
the Regulations on Security Protection of Critical Information Infrastructure (Draft for Comments) 
according to the opinions of all parties, so as to facilitate the legislation and lay a legal foundation 
for the protection of critical information infrastructur e. 
Question 47  
Are there guidelines to assist business to understand if they are affected by the law? Or a portal for 
businesses to liaise with industry regulators and the Cyberspace Administration of China on 
cybersecurity issues?   
Reply  
Since the impleme ntation of the Network Security Law of the People 's Republic of China, China has 
organized a great number of exchanges with governments, enterprises and associations in various 
forms to interpret relevant provisions of the Network Security Law, sought advi ce on supporting 
policies and standards, and answered the concerns from foreign parties to increase their confidence.  
4.4.2 Financial services , 4.4.4.2 Regulatory developments for banking services , page 156, 
paragraph 4.146  
The report describes a "three -year pilot programme of the city of Beijing to further open up a number 
of services sectors " (approved in May 2015), including enabling foreign financial institutions to 
establish foreign banks and set up joint -venture banks with Chinese private capital.   
Question 48  
Is China able to provide any preliminary views on the success of the three -year services pilot 
programme of the city of Beijing to enable foreign financial institutions to establish foreign banks, 
and whether it has plans to expand this program me to other cities?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
It is stated in Notice of the MOFCOM and Beijing Municipal People 's Government on Printing and 
Distributing the Pilot Programme of the City of Beijing to further o pen up a number of Services 
Sectors (JZF [2015] No. 15) that suppo rt will be given to foreign banks to set up branches in Beijing, 
and private enterprises and foreign banks to jointly set up Sino -foreign joint ventures in Beijing, 
provided that relevant laws and regulations are followed. It does not involve prohibitions,  and can 
be implemented throughout China, mainly to support foreign financial institutions in providing 
financial services and participating in market competition in an equal market environment.  
Page 158, paragraph 4.162  
The report describes that in Octobe r 2015, a range of measures took effect aimed at allowing 
domestic and foreign insurance companies to engage in internet insurance business.  
Question 49  
Are insurance companies required to establish a presence in China in order to engage in the internet 
insurance business?   
Reply  
According to Interim Measures for Regulating the Internet Insurance Business: for the purpose of 
these Measures, Internet insurance business means the business under which insurance institutions 
conclude insurance contracts and provide insurance services v ia self -operated network platforms, 
and third -party network platforms, among others, by relying on the Internet, mobile communications, 
and other technologies. For the purpose of these Measures, insurance institutions mean  insurance 
companies and specializ ed insurance intermediary institutions formed with the approval of insurance 
regulatory authorities and registered in accordance with the law.  
4.4.3 Legal services , page 160, paragraph 4.174  
The report indicates that the national judicial examination is op en only to applicants with Chinese 
nationality and to permanent residents of the Hong Kong SAR and Macao SAR.   
Question 50  
Does China have any plans to open the national judicial examination to enable foreign lawyers to 
qualify as Chinese lawyers?   
Reply  
According to the Decision to Amend Eight Laws including the Judges Law of the People's Republic of 
China, adopted by the Standing Committee of the National People's Congress in September 2017, 
China enacted a national unified legal profession qualification system on 1 January 2018, which is 
derived from the national judicial examination system. To qualify as a judge, a prosecutor, a lawyer, 
a notary, a legal arbiter, or a public servant engaged in administrative punishment decisions 
approval, administrative review, administrative adjudication or legal consultation, one must pass the 
national unified legal profession qualification examination, in accordance with the Judges Law, the 
Prosecutors Law, the Public Servants Laws, etc. Based on the Judges Law, the Pr osecutors Law and 
the Public Servants Law explicitly specifying that the Chinese nationality is a must for one to qualify 
as such, the Method for the Implementation of the National Unified Legal Profession Qualification 
Examination, enacted by the Ministry  of Justice on 29 April 2018, provides that persons with the 
Chinese nationality may sign up to take the national unified legal profession qualification 
examination. It should be subject to the laws of China as to whether foreign nationals are allowed 
to take part in China's national unified legal profession qualification examination.  
Page 161, paragraph 4.179  
The report describes two liberalisation measures that have been applied in the Shanghai Pilot Free 
Trade Zone regarding the activities that foreign l egal firms are permitted to engage in.   WT/TPR/M/3 75/Add.1  
 
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  Question 51  
Is China able to share any preliminary experiences regarding the liberalisation measures 
implemented in the Shanghai Pilot Free Trade Zone relating to the activities of foreign legal services 
firms? Are t here any plans to expand these liberalisation measures more broadly?   
Reply  
Since China allowed the partnership, established through agreements and by sending lawyers to one 
another, between foreign laws firms with offices opened in the Shanghai Pilot Free  Trade Zone and 
Chinese law firms, there have been established five Chinese -foreign cooperative law firms, and they 
have been successful. They each could undertake hundreds of projects a year, involving many fields 
like mergers and acquisitions, regulatory  compliance, securities and capital, banking and finance, 
real estates, and taxation. In May of this year, China decided to apply those liberalization measures 
to the China (Tianjin) Pilot Free Trade Zone.  
Page 161, paragraph 4.181  
The report states that C hina has taken two liberalisation measures in January 2014 in the Shanghai 
FTZ to allow foreign and Chinese law firms to enter into an agreement to mutually exchange lawyers 
and to allow a foreign law firm to set up a joint operation in the FTZ with a Chin ese law firm where 
they provide legal services to Chinese and foreign clients.   
Question 52  
Have these liberalisation measures been used by foreign law firms? How many?  
Reply  
There have been five foreign law firms that operate in the Shanghai Pilot Free T rade Zone in 
partnership with Chinese law firms.  
Question 53  
Is the Chinese government considering extending this liberalisation (and any other liberalisation) to 
the other FTZs or throughout mainland China, as is the treatment extended to residents of 
Hong Kong, China  and Maca o, China ?  
Reply  
In May of this year, China decided to apply those liberalization measures to the China (Tianjin) Pilot 
Free Trade Zone.  
Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.4 Strengthening the protection of intellectual property rights , 3.4.2 Steadily advancing 
legislations on IPR protection , page 9, p aragraph 3.26  
The report states that the Copyright Law is currently undergoing ame ndment. Au stralia would 
welcome  amendments that help ensure China's  copyright legislation remain adaptive and technology 
neutral.  
Question 54  
What is the scope of the copyright amendment and which agency is leading the process?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The third amendment of China's  Copyright Law is primarily a response to the rapid development and 
wide application of digital technology, to solve major problems in real -world copyright protection in 
a way that is independent, b alanced, and give consideration  to the international clima te. The 
amendment work is mainly undertaken by the National Copyright Administration, the Ministry of 
Justice, the Legislative Affairs Commission of the NPC Standing Committee, etc. through the division 
of work.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  EUROPEAN UNION  
Report by the Secretariat  - WT/TPR/S/375  
SUMMARY  
Page 10, para graph  10 
Under the Investment Catalogue, foreign investment projects are classified into an encouraged 
category and a "negative list".  
Questions 1 -2 
• Could China clarify its understanding of "influence on national security ", "national security " 
and "sensitive sectors "?  
Reply  
According to the National Security Law of People's Republic of China , national security means that 
the national regime, sovereignty, unification and territorial integrity, people's welfare, sustainable 
economic and social development, and other major interests of the nation are in a status relatively 
free from danger and internal and external threats, and the nation is capable of guaranteeing the 
status of sustained security.  
Please refer to  the Notice on Establishment of Security Review System Pertaining to Mergers and 
Acquisitions of Domestic Enterprises by Foreign Investors (Guobanfa {2011} No. 6) and Trial 
Measures for the National Security Review of Foreign Investment in Pilot Free Trade Zones (Guobanfa 
{2015} No. 24) for the specific provisions of the national security review of foreign investment. 
China's foreign investment national security review always regards the relationship between opening 
to the outside world and national security  as an important principle, actively attracts foreign 
investment, and does not generalize the security review.  
• How does China justify its measure in light of the strict security exceptions provided under 
Articles XXI GATT and XIV -bis GATS?  
Reply  
China has never quoted article of security exception in dispute settlement cases.  
1 ECONOMIC ENVIRONMENT  
1.2 Recent economic developments , page 17, paragraph 1.3 and page 24, paragraph  1.31 
The report states that "according to the OECD, high enterprise investment was financed by debt, 
fuelled by interest subsidies and implicit guarantees for state -owned enterprises (SOEs) and other 
public entities; however, the authorities maintain that credit activities are indepe ndent and driven 
by market conditions and do not involve any government interference". Article 34 of China's Banking 
Law states that: "Commercial banks shall conduct their business of lending in accordance with the 
needs of the national economic and social  development and under the guidance of the industrial 
policies of the State."  
The report also states that the Chinese authorities "maintain that credit activities are independent 
and driven by market conditions and do not involve any government interferenc e". 
Questions 3 -4 
• Could China please explain how the independence of commercial banks in their activities is 
guaranteed in view of Article 34 of the Banking Law?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Article 34 of China's Banking Law states that "Commercial banks shall conduct their busi ness of 
lending in accordance with the needs of the national economic and social development and under 
the guidance of the industrial policies of the State". This is a guiding rather than mandatory provision 
for commercial banks. The Banking Law , or releva nt laws and rules, doesn't force commercial banks 
to grant loans or preferential rate to enterprises that meet the industrial policies. Meanwhile, 
Article  35 of the Banking Law states that "Before granting a loan, commercial banks shall strictly 
examine the borrowers purpose for the loan, ability to repay the loan, method of repayment, etc.", 
and Articles 41 states "No unit or individual may forcibly demand a commercial bank to grant a loan 
or to provide a guaranty. Commercial banks shall have the right t o refuse to grant a loan or to 
provide a guaranty forcibly demanded by any unit or individual." Therefore, even for enterprises that 
meet the industrial policies, commercial banks can independently decide whether to grant a loan 
and set the interest rate a nd conditions.  
• On page 24, paragraph 1.31 the report quotes the PBoC annual report in which banks were 
"encouraged and guided to provide support []". Could China elaborate how this practice of 
"window guidance" that encourages specific types of lending can  be consistent with the idea 
that borrowing and lending activities should be market driven or are purely commercial 
considerations (para graph  1.3)?  
Reply  
Due to factors such as ROI and payback period, private investment in weak links such as small and 
micro enterprises, farmer, agriculture and countryside, and social undertakings is limited. On the 
premise of well controlling the aggregate, our monetary policies properly use structural tools such 
as targeted RRR cut, re -lending and re -discount to provide co mmercial banks with cost and return 
incentives commensurate with the external benefits of those areas, as a way to encourage and guide 
the banks to provide loans to those key areas and weak links out of commercial considerations. We 
must note that such enc ouragement is different from the administrative "window guidance". It is a 
market -oriented incentive, and commercial bank's borrowing and lending activities remain market 
driven or are purely commercial considerations.  
Page 18, paragraph 1.5 and page 89, p aragraph 3.187  
The paragraph 1.5 states that according to the authorities "all enterprises, regardless of ownership, 
are treated equally and that there are no specific subsidies to SOEs; all enterprises are entitled to 
receive subsidies if certain requirem ents are met" . In contrast, details of financial support to SOEs 
are given on page 89, paragraph 3.187, stating that " In 2016, around 3,000 companies [] received 
government support, totalling billon RMB 123.215 (up from RMB 89.421 billon in 2014). Seven of  
the top 10 companies that received support in 2016 were SOEs [] Companies that received financial 
support are mainly from chemical, automobile, excavation, and steel industries" . 
Questions 5 -8 
• Could China please explain the 'certain requirements' which the companies met in order to 
receive these payments?  
Reply  
We don't have special subsidies for SOEs. The subsidy isn't granted according to ownership, but is 
applicable for enterprises of all kinds of ownership. As for the conditions for subsidy applicati on, 
please refer to the subsidy notification submitted by the Chinese government.  
China submitted the notification according to subsidy policies, but the projects mentioned in the 
Secretariat report are mostly collected from individual enterprises, so they  don't match one by one. 
In other words, multiple subsidies for an enterprise may come from the same subsidy policy, and 
subsidies for different enterprises may also come from the same subsidy policy. Based on the 
information we have, the subsidies receive d by many iron and steel companies are mostly not 
specific, such as air pollution control subsidy. But to reflect transparency, China has included them 
in the subsidy notification we submitted.  WT/TPR/M/3 75/Add.1  
 
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  • Could China explain how the SOEs listed qualified for these su bsidies?   
Reply  
We don't have special subsidies for SOEs. The subsidy isn't granted according to ownership, but is 
applicable for enterprises of all kinds of ownership. As for the conditions for subsidy application, 
please refer to the subsidy notification  submitted by the Chinese government.  
China submitted the notification according to subsidy policies, but the projects mentioned in the 
Secretariat report are mostly collected from individual enterprises, so they don't match one by one. 
In other words, mul tiple subsidies for an enterprise may come from the same subsidy policy, and 
subsidies for different enterprises may also come from the same subsidy policy. Based on the 
information we have, the subsidies received by many iron and steel companies are mostl y not 
specific, such as air pollution control subsidy. But to reflect transparency, China has included them 
in the subsidy notification we submitted.  
Question  
• What was the nature and purpose of the payments made?  
Reply  
We don't have special subsidies for SOEs. The subsidy isn't granted according to ownership, but is 
applicable for enterprises of all kinds of ownership. As for the conditions for subsidy application, 
please refer to the subsidy notification submitted by the Chinese government.  
China submitte d the notification according to subsidy policies, but the projects mentioned in the 
Secretariat report are mostly collected from individual enterprises, so they don't match one by one. 
In other words, multiple subsidies for an enterprise may come from the same subsidy policy, and 
subsidies for different enterprises may also come from the same subsidy policy. Based on the 
information we have, the subsidies received by many iron and steel companies are mostly not 
specific, such as air pollution control subsid y. But to reflect transparency, China has included them 
in the subsidy notification we submitted.  
• Will China ensure that these subsidy payments to the companies will be included in its next 
subsidy notification to the WTO?  
Reply  
We do not have subsidies de dicated to state -owned companies. Subsidies granted to companies are 
not classified based on their ownership systems, with companies of all types of ownership being 
treated equally. For qualifications for subsidies, please see the notification on subsidies  submitted 
by China.  
China submits the notification based on its subsidy policies, whereas most of the items mentioned 
in the report from the Secretariat are collected by companies. There is no correspondence between 
both. In other words, multiple subsidie s received by one company might originate from the same 
subsidy policy and subsidies received by multiple companies might also originate from the same 
subsidy. From what we know, subsidies received by many steel companies are not for specific 
purpose as in  subsidies such as the fund for prevention of atmospheric pollution. However, China 
still notes such subsidies in the notification on subsidies it submits for transparency.  
Page 18, paragraph 1.6 and Box 1.1  
According to the Secretariat report, China considers that the benefits and the trade potential of the 
belt and road initiative (BRI) are enormous.  WT/TPR/M/3 75/Add.1  
 
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  Questions 9 -11 
• How does China plan to ensure a level -playing field and, in particular, fair access to the 
Chinese transport market based on transparency and the respect of basic international 
procurement rules?  
Reply  
Since China's  join in WTO, China has committed to always adhere to the principle of MFN treatment 
and national treatment to guarantee the fair acce ss of foreign capital to China's  transportation 
market.  
Question  
• Could China provide information on the share of BRI projects realised by SMEs?  
Reply  
The BRI is an open and inclusive initiative which acts in accordance with the laws of the market, and 
specific projects are implemented through enterprises. It follows market rules and established 
international rules, and we welcome equal participation by enterprises of all types. The Chinese 
government will focus on providing a fair and transparent busine ss environment, favourable  
investment policies and legal guarantee, support and guide more domestic and foreign enterprises 
to actively participate in the BRI, promote the smooth implementation of relevant projects, and 
enable more results of mutual benefi cial and win -win cooperation to benefit the people of all 
countries at an earlier date.  
Question  
• Does China intend to create dispute settlement system for commercial and investment 
disputes in the framework of the BRI? If so, please update on status, timel ine and modalities, 
in particular as regards legislation that would be applicable.  
Reply  
Currently, the Supreme People's Court is setting up a dispute settlement mechanism and institution 
for the "Belt and Road", adheres to the principle of co -construction  and sharing, encourages domestic 
arbitration agencies to cooperate with arbitration agencies of relevant countries in the construction 
of the "Belt and Road", establishes a diversified dispute settlement mechanism for effective 
connection of litigation, m ediation and arbitration, and properly resolve trade and investment 
disputes, protects the legitimate rights and interests of both Chinese and foreign parties equally, 
and creates a stable, fair and transparent legal business environment.  
1.2.2 Fiscal poli cy and reform , page 21, paragraph 1.20 2 
The report notes that local government financing vehicles continue to borrow heavily and that the 
Chinese authorities are increasingly setting up Government Guided Funds (GGFs) and Special 
Construction Funds (SCFs) t o fund public infrastructure.  
Question 12  
Could China provide a list of all existing central and provincial Government Guided Funds (GGFs) 
and Special Construction Funds (SCFs), indicating the legal basis/administrative measure by which 
they were set up, t he shareholders/contributors, as well as the size of the individual funds and the 
projects financed?  
Reply  
GGF refers to the private equity investment fund invested by the financial funds and established 
together with the social capital including the priva te enterprises. This kind of fund is managed by WT/TPR/M/3 75/Add.1  
 
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  the professional fund management team according to the articles of association, agreements, laws 
and regulations, with investments operated independently according to the market principles. The 
government dep artment does not participate in the day -to-day management affairs of the fund, and 
does not make statistics about the fund so far.  
1.2.3  Other structural measures , page 23, paragraph 1.30  
The report outlines China's efforts to address the issue of overcapacity and associated challenges.  
Question 13  
Can China outline any specific measures it intends to take to reduce overcapacity in sectors other 
than coal and steel?  
Reply  
There is overcapacity in a few sectors in China and China has been dedicated t o solving  this problem 
effectively.  
The electrolytic aluminium manufacturing sector: Mostly market -oriented and legalized approaches 
are used to settle overcapacity in this sector. The point is to strictly control newly added capacity, 
require capacity re placement in related projects, and prohibit adding of capacity in a way that 
violating laws and regulations. No target for capacity reduction is set for this sector.  
Ship manufacturing sector: In 2013, in order to effectively settle overcapacity in sector s such as 
ship manufacturing, the State Council issued and implemented the Guidance on Settling of Severe 
Overcapacity  (Guofa {2013} No. 41). In the Guidance, instructions on settling overcapacity in the 
ship manufacturing sector are stated clearly. No pro ject for adding capacity is allowed and no local 
government or any government body shall approve and register under any purpose and in any form 
any project for adding capacity.  
Coal power sector: In August 2017, 16 ministries including the National Develo pment and Reform 
Commission (NDRC) and the National Energy Administration issued the Opinions on Pushing Forward 
Structural Reform at the Supply Side and Preventing and Settling Overcapacity of the Coal Power 
Sector (Fagainengyuan {2017} No. 1404). It is s tated in the Opinions that the installed capacity of 
the entire coal power sector of China will be limited within 1.1 billion kilowatts by 2020.  
Page 24, paragraph 1.32  
The report mentions financial support to address overcapacity issues in the coal and steel sectors.  
Question 14  
Could China explain how these policies have been implemented, i.e. indicate what kind of financial 
support has been provided and quantify the financial support provided?  
Reply   
The Chinese government has been focusing on cutting capacity in difficulty -ridden sectors such as 
steel and coal. Out -dated capacity will be uncompromisingly eliminated and surplus capacity will be 
cut orderly. A special fund for award and subsidy with an amou nt of RMB100 billion is granted by 
the central finance department, which will be primarily used for re -employment of laid -off workers.  WT/TPR/M/3 75/Add.1  
 
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  2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements , 2.3.1 WTO , page 34, paragraph 2.21 and 
Table  A2.1 
Notifications under a number of WTO Agreements are outstanding.  In the Government report, China 
calls on all WTO Members to support the basic principles of the WTO including transparency and 
mentions that it has increased its own resources to ensure transparency and meet its obligations.  
Question 15  
Can China explain the reasons that have caused the delays and indicate when it will provide the 
outstanding notifications on state -trading enterprises, agriculture and subsidies?  
Reply  
China will strive t o submit the latest notifications on state -trading enterprises before the review . 
As for notification on agriculture since the disputes on domestic support and TRQ administ ration for 
wheat, rice and corn are still underway, it is not appropriate for China to submit the notifications at 
this critical juncture. The relevant notifications will be made as soon as possible.  
Regarding the notification on subsidies, in the last one year or so, China has been trying to provide 
updated notifications on subsidies for  2015 and 2016 which are required according to the rules of 
notifications. Currently this heavy work is close to completion. China will make its utmost effort to 
submit the latest notification on subsidies granted by both central and local governments befo re the 
review conference.  
2.3.2 Regional trade agreements and unilateral measures , page 35, paragraph 2.25  
The report talks about China's plans for establishing a high -standard FTA network opening up to the 
whole world.  
Question 16  
Could China elaborate on what it means by a "high -standard FTA network" and how this relates to 
China's existing FTAs, as well as ongoing FTA negotiations?  
Reply  
High standards are mainly manifested in expanding market access for trade in goods, trade in 
services and investment, in adopting negative list approach for negotiations on trade in services and 
investment, and in accelerating the negotiation on trade related rules, including intellectual property, 
environment, e -commerce and competition policy. B ased on the existing FTAs, China will continue 
to improve the level of liberalization and the standards of rules through negotiating new FTAs and 
upgrading existing ones.  
2.4 Investment Regime , 2.4.1  Regulatory framework and market access , pages 36-37, 
paragraph 2.30  
The report states that a new law on foreign investment is in the process of being drafted, according 
to the authorities.  
Questions 17 -18 
• Could China provide an update on the draft Foreign Investment Law, including its likely content 
and indicat ive timeline for finalisation?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Foreign Investment Law is the legislative work programme  for the Standing Committee of National 
People 's Congress and that for the State Council in 2018. In December 2015  the Ministry of 
Commerce submitted the Foreign Investment Law of People 's Republic of China  (for approval) to the 
State Council. At present, the Ministry of Justice is advancing some review and amendment work 
according to legislative procedures.  
Question  
• Could China explain how foreign enterprises can provide input to the preparation of this law?  
Reply  
On 19 January 2015, the Ministry of Commerce released the Foreign Investment Law of the People's 
Republic of China (Draft for Public Comments) and has been soliciting comments in public.  
Page 37, paragra ph 2.32  
The report states that projects in the encouraged category of the 2017 Investment Catalogue  are 
eligible for preferential treatment, for example, customs duty exemptions for the importation of 
equipment.  
Questions 19 -20 
• Could China please explain what are the 'projects in the encouraged category' that are eligible 
for customs duty exemptions for the importation of equipment?  
Reply  
Foreign investment enterprises engaging in projects under the encouraged category stated in  the 
Catalogue of Industries for Guiding Foreign Investment (2017 revision) and projects stated in the 
Catalogue of Priority Industries for Foreign Investment in Central and Western China in central and 
western China are exempted from customs duties when i mporting equipment to meet its own needs 
which is included in the total amount of investment.  
Question  
• Will China include the scheme concerned in its next subsidy notification to the WTO?  
Preferential tax policies on imported equipment have being stated i n all notifications on subsidies 
submitted by China. According to rules of the WTO subsidy committee, China is only required to 
notify subsidy policies in 2015 and 2016.  
For the detailed subsidy programme , please refer to China's  subsidy notifications sub mitted.  
Page 37, paragraph 2.34 and Box 2.1  
The 2017 Investment Category removed certain activities from the "encouraged" category of 
investments and added certain activities to the "prohibited" category.  
Question 21  
Can China explain these changes between the 2015 and 2017 Investment Catalogues, in particular 
why it removed the manufacturing and services activities listed in Box 2.1 from the "encouraged" 
category and why it added the activities mentioned to the "prohibited" category?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
With the implementation of the Special Management Measures (Negative List) for Foreign 
Investment Access  (2018), the negative list for foreign investment access in the Catalogue of 
Industries for Guiding Foreign Investment  (2017 revision) issued jointly by the Nati onal 
Development and Reform Commission and the Ministry of Commerce on 28 June 2017 was repealed 
simultaneously. 2018 negative list for foreign investment access states measures for liberalization 
in 22 areas and reduces number of restrictions to 48 or red uces by almost one quarter. Meanwhile, 
the Catalogue of Industries Encouraging Foreign Investment  in the Catalogue of Industries for 
Guiding Foreign Investment (2017 revision) still applies.  
Page 40, paragraph 2.39  
The report states that FDI involving investments in Chinese domestic enterprises may be subject to 
national security reviews if the FDI is related to defence.  
Questions 22 -23 
• Can China provide additional information on its FDI national security review, such as reference 
to laws, how the procedure works and which authorities are in charge?  
Reply  
In February 2011, the General Office of the State Council issued the Notice on Establishment of 
Security Review System Pertaining to Mergers and Acquisitions of Domestic Enterprises by Foreign 
Investors (Guofaban {2011} No. 6). In the Notification, aspects such as the scope and content of 
the review, the working mechanism and the procedures were stated and a unified and standardized 
security review system on mergers and acquisitions by foreign inves tors was established. In 
April 2015, the General Office of the State Council issued the Trial Measures for the National Security 
Review of Foreign Investment in Pilot Free Trade Zones (Guofaban {2015} No. 24). It is stated that, 
within pilot free trade zon es, the scope of the review will be extended from reviews on acquisition 
deals to new investments and to important cultural sectors, important IT products and services. It 
is also stated that the review will be performed based on the article 4 of Guofaban {2011} No. 6 
Notification. The review will be performed at the inter -ministerial conference for security reviews on 
mergers and acquisitions of domestic enterprises by foreign investors. The conference is led by the 
State Council and the review, led by the  National Development and Reform Commission and the 
Ministry of Commerce, is performed jointly with relevant government bodies based on the industries 
and areas involved in the mergers and acquisitions.  
Question  
• Can China indicate if a right to review the decision taken by the public authority exists?  
Reply  
The specific provisions and procedures of the national security review for foreign investment can be 
found in the Notice of the General Office of the State Council on Establishing a Security Review 
Syste m for Foreign Investors Acquiring Domestic Enterprises (Guo Ban Fa [2011] No. 6) and the 
Notice of the General Office of the State Council on Issuing the Trial National Security Review 
Measures for Foreign Investment in the Pilot Free Trade Zones (Guo Ban Fa [2015] No. 24).  
2.4.3  Incentives for foreign investment , page 43, paragraph 2.52  
The report states that investors, domestic or foreign, enjoy a reduced enterprise income tax (EIT) 
rate of 15% provided that they meet certain conditions and engage in encouraged projects in the 
applicable Central -Western regions of China.  WT/TPR/M/3 75/Add.1  
 
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  Question 24  
Could Chin a please specify what are the ' certain conditions' and 'encouraged projects in the 
applicable regions' that companies must meet in order to qualify for reduced im port tax on capital 
goods?   
Reply  
Foreign investment enterprises engaging in projects under the encouraged category stated in the 
Catalogue of Industries for Guiding Foreign Investment  (2017 revision) are exempted from customs 
duties when importing equipme nt to meet its own needs which is included in the total amount of 
investment. Foreign investment enterprises engaging in projects stated in the Catalogue of Priority 
Industries for Foreign Investment in Central and Western China in central and western Chin a are 
exempted from customs duties when importing equipment to meet its own needs which is included 
in the total amount of investment.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , 3.1.3  Tariffs , 3.1.3.5 Tariff exemptions and 
concessions , page 50, para graph  3.23 
The report states that "duty exemptions and reductions may apply in accordance with the relevant 
regulations by the State Council and on goods imported into designated areas, for specific 
enterprises or f or a specific use".  
Questions 25 -26 
• Could China please give details of what is meant by the "designated areas", the "specific 
enterprises" and/or the "specific use"?  
Reply  
In article 46 of the Regulations of the People's Republic of China on Import and Exp ort Duties , it is 
stated that the related laws of the State Council shall be followed in reducing or exempting import 
and export goods of special regions, enterprises or of special uses from paying customs duties either 
temporarily or otherwise. Since the tax policy is developed under the leadership of the Ministry of 
Finance, it is suggested that opinions from the Ministry of Finance shall be learned . {China Customs}  
• For the detailed subsidy programme , please refer to China's  subsidy notifications submitted.  
Question  
• Has this dut y exemption scheme been notified to the WTO and, if not, will it be notified by 
China in its next subsidy notification to the WTO?  
Reply  
For the detailed subsidy programme , please refer to China's  subsidy notifications submitted.  
3.1.5 Import prohibitions,  restrictions, and licensing , page 53, paragraph s 3.33-3.34 
The report describes recent changes regarding import prohibitions and restrictions for solid waste.  
Questions 27 -29 
• Could China provide clarification on the scope of the waste products subject to import 
restrictions adopted or announced in 2017 and 2018, as well as on the rationale for setting up 
these measures?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
With regard to the said scope, in July 2017, China's former Ministry of Environmental Protection, 
together with five ministries and/ or commissions like the Ministry of Commerce, issued the catalogue  
of Imported  Waste  Management  (2017), which took effect from 31 December 2017, additionally 
banning the import of solid wastes of 24 kinds under four categories, including waste plastics, 
unsorted waste paper, waste textiles, vanadium slag, and other wastes from domestic sources.  
In April 2018, China's  four ministries and/or commissions, including the Ministry of Ecology and 
Environment, jointly issued the Announcement on Adjustment of Catalo gue of Imported Waste 
Management,  which took effect from 31 December 2018, additionally banning the import of 16 kinds 
of solid wastes, such as scrap hardware, end -of-life vessels, scrap automobile press parts, smelting 
slag, waste plastics from industrial sources, and etc, and from 31 December 2019, additionally 
banning 16 types of solid waste, such as stainless steel scrap, titanium scrap, wood scrap, and etc.  
As for the said rationale , solid waste is different from the general raw material products, and has 
inherent pollution properties, which, if improperly trea ted, will pollute the atmosphere, water and 
soil, and further endanger ecological security and human health Solid waste is a common 
environmental problem faced by the world. According to the principle generally accepted by the 
international community, all countries should undertake the obligation to dispose and treat the solid 
waste produced in their own countries. As a developing country with the largest population in the 
world, China generates and accumulates a great amount of solid waste, and as a result , in China, 
the difficulty in pollution control is unprecedented. Meanwhile, China imports about 45 million tonnes  
of solid waste every year, and the virus, bacteria and other toxic and harmful substances carried by 
such solid wastes may directly infect th e practitioners; The waste gas and waste water produced in 
the process of treatment thereof, as well as the residues and inclusions after treatment all need to 
be finally disposed, which have occupied the limited environmental capacity of our country and 
significantly increase the environmental burden and up to now, has caused serious harm to the 
health of the people and the safety of the ecological environment. In this regard, China's  government 
attaches great importance to, and decided to take a series of  measures to strengthen solid waste 
pollution prevention and control. Among which, the policy of restricting and prohibiting the import 
of solid waste is one of a series of important measures taken by China's  government to implement 
the new development con cept, improve the quality of ecological environment, and guarantee the 
national ecological security and the health of the people.  
Question  
• Is China planning to expand the scope of products listed under the prohibited items list?  
Reply  
In April 2018, China's  four ministries and/or commissions, including the Ministry of Ecology and 
Environment, jointly issued the Announcement on Adjustment of Catalogue of Imported Waste 
Management,  which took effect from 31 December 2018, additionally banning the import of 16 kinds 
of solid wastes, such as scrap hardware, obsolete vessels, scrap automobile press parts, smelting 
slag, waste plastics from industrial sources, and etc, and from 31 December  2019, additionally 
banning 16 types of solid waste, such as stainless steel scrap, titanium scrap, wood scrap, and etc.  
Question  
• The EU is particularly interested to obtain information on the import ban for end -of-life vessels 
that China intends to put in place in 2019. This ban  is likely to undermine to undermine global 
efforts to upgrade ship recycling standards, as reflected in the 2009 Hong Kong Convention. 
The EU would be interested to hear China's view on the rationale for this measure, notably its 
links to the Hong Kong Co nvention, as well as if exempt ions to the ban are considered.  
Reply  
The dismantling of end-of-life vessels may  produce a large amount of pollutants and residues, which 
will do great harm to the environment and pose a high risk to health. Numerous studies  of the 
International Labour Organization  and other  related documents  like the Basel Convention on the WT/TPR/M/3 75/Add.1  
 
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  Control of Trans -boundary Movements of Hazardous Wastes and Their Disposal  show that end-of-
life vessels contain significant quantities of hazardous substances,  and thus the  ecological 
environment around ship -breaking yards, such as seawater, is seriously polluted by heavy metals 
and organic substances, which will significantly increas e the burden on the environment; The 
practitioners have to exposed t o many complex pollutants such as asbestos waste, soot, waste oil 
and the like, and thus their health and safety are seriously endangered. Accidents involving explosion 
and fire caused by improper dismantling of vessels have occurred from time to time.  Therefore, in 
April 2018, China adjusted the Catalogue  of Import ed Waste  Management  to add the end -of-life 
vessels into Catalogue of Import Ban on S olid Waste, which  will take effect at the end of 2018, and 
there will be no exemption for the  vessels as well a s the operation status and types of other floating 
structures that are imported for dismantling.  It is understood that the said Hong Kong Convention  
has not yet entered into force and thus it is not clear to us what the party of EU me ans by "the link 
to the Hong Kong Convention ". 
Page 53, paragraph 3.35  
Pursuant to the Foreign Trade Law, the authorities may restrict or prohibit imports in "infant 
industries".  
Question 30  
Could China please provide a list of 'infant industries' covered by this provision?  
Reply  
There is no expression of "'infant industr ies" in the F oreign Trade Law, which is referred to as 
"Particular I ndustries"  in Item 4 under Article 16 of the Foreign Trade Law . China has not invoked 
this such an article i n its legal practice, nor has it  drawn up a list.  
3.1.6 Anti -dumping, countervailing, and safeguard measures , 3.1.6.1 Anti-dumping 
measures , page 56, paragraph 3.50  
The report mentions that Article 56 of the AD Regulations allows for retaliatory measures when a 
trading partner ''discriminatorily'' imposes AD measures on exports from China. The authorities 
indicate that China has neither applied Article 56 during the period under review, nor planned to 
revise the provisions. Indeed, as per China basic Anti -Dumping Regulation of 2 004, 
Article  56:"Where any country (region) discriminatorily applies anti -dumping measures on the 
exports from the People 's Republic of China, the People 's Republic of China may, on the basis of the 
actual situations, take corresponding measures against th at country (region)."  
Question 31  
Could China elaborate about the WTO legal basis for this provision, and how it defines 
"discriminatorily"?"  
Reply  
China's  relevant provision complies with WTO 's Anti -Dumping Agreement. China has neither applied 
Article 56 so far.  
3.2 Measures Directly Affecting Exports , 3.2.3  Export prohibitions, restrictions, and 
licensing , page 62, paragraph 3.76  
The State may restrict or forbid exports to "organize 'export b usiness management'", inter alia .  
Question 32  
Can China please explain what is meant by 'organising export business management' in this context 
and how is it decided/enforced?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China's  export management measures are for the purpose of better promotin g and safeguarding the 
export control work, safeguarding national security and development interests, and fulfilling 
international obligations.  
Page 62, paragraph 3.78  
The report explains that China applies export licences to specific dual -use substances for the 
purposes of national security and obligations under international agreements. During the period 
under review, China published a draft law on export control law on which the EU submitted comments 
during the consultation period in July 2017.  
Question s 33-35 
• The EU would appreciate clarifications as regards the conformity with WTO trade rules of 
certain aspects of China's draft export control law, in particular the reference to the 
"development interests of the State" [Article 1] as an objective of Chi nese export controls and 
a basis for export control decisions (licences or denials); various references to economic 
development and industrial competitiveness factors (for instance technological development, 
international market supply, trade and industria l competitiveness in Articles 16 and 18 or 
"development interests" in Article 20) as well as  the reference to their use as retaliatory 
measures against "discriminatory export control measures".  
• The EU would also welcome a clarification of the scope of the draft law, in particular to what 
extent it includes items other than military and dual -use items, e.g. "strategic rare materials.  
• The EU would be grateful for an update on the legislative process for the draft law.  
Reply 33 -35 
Major countries and regions in the world have enacted and introduced the export control law. A basic 
law in export control field needs to be formulated, for the purpose of better promoting and 
safeguarding the export control work, safeguarding national security and development intere sts, and 
fulfilling international obligations. Our ministry put the Export Control Law (Draft) on the internet to 
solicit public opinions from 15 June to 15 July 2017, and received opinions and suggestions from 
domestic and foreign governments, enterprises , business associations, law firms, etc. Overall, they 
welcomed and supported our export control legislation. The law is currently under the legislative 
review of the Ministry of Justice of the State Council.  
Opening -up is a basic state policy of China. China's  opening -up policy will not change, and China will 
never close its open door to the outside world. China values the creation of a non -discriminatory and 
transparent business environment, observes the WHO principle of national treatment, and treats al l 
market players, including foreign -invested companies, fairly. The Export Control Law is enacted to 
better protect and promote free trade and maintain the legitimate rights and interests of the parties, 
and will not discriminate or treat foreign enterpris es differently. During the legislation of the Export 
Control Law, China will stick to open system of legislation and democratic legislation, and pay 
attention to learn and absorb international advance experience and universal practices. The EU can 
give any  advices on the Export Control Law to the relevant legislative body in the subsequent 
legislative procedure.  
3.2.4 Export support and promotion , page 64, paragraph 3.82  
While China did not have export subsidies on agricultural products during 2013 and 2014, it did not 
provide a notification to the WTO for the years 2015 and 2016 . 
Question 36  
Can China explain why no information regarding export subsidies on agricultural products has been 
notified to the WTO for the years 2015 and 2016 and when a notific ation will be forthcoming?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The information on export subsidies will be provided in both the ES notification and the response to 
the Export Competition Questionnaire to be submitted soon.  
3.2.5  Export finance, insurance, and guarantees , page 65, para graph 3.91  
The report states that "the authorities noted that loans are granted at commercial interest rates".  
Questions 37 -38 
• For the loans and export credits granted by Eximbank, could China explain how it defines 
commercial rates and could China elabora te further on which market benchmarks it applies in 
order to set those interest rates?  
Reply  
China Exim Bank determines the interest rates in the principle of breaking even while maki ng minor 
profits . China Eximbank sets its interest rates with overall consideration of macroeconomic policy 
direction, supply and demand for funds, cost of loan funds, cost of capital occupancy, project risk 
compensation, operational and administration expenses and quoted prices in the industry. China is 
not a Member of OECD , but the loan interest rates are set by referring to the Arrangement on 
Officially Supported Export Credits.  
Question  
Could China also explain on which basis premia  are determined when Sinosure issues guarantees 
and how it ensures that the premia charged is market reflective?  
Reply  
SINOSURE sets export credit insurance premium based upon a pricing matrix, where several 
parameters, such as country macro environment, insurance period, payment terms, buyers credit 
rating are included. We regularly monitor and  review those parameters and modify the pricing 
accordingly.  
3.3 Measures Affecting Production and Trade , 3.3.1 Incentives , page 69, paragraph  3.107  
The report notes China's intention to provide its outstanding subsidy notification for 2015 -17 which 
was due in June 2017. However, this notification was not available at the time of submitting these 
questions.  
Question 39  
When will China submit its outstanding subsidy notification for 2015 -17? 
Reply  
Over the past year or so, China has been working hard to up date the subsidy notification to the 
period of 2015-2016, as required by the notification rules, and this onerous task is now nearing 
completion. China will do its utmost to submit a new central and local subsid y notification before the 
Review Conference.  
Page 69, paragraphs 3.108 -3.113  
The report refers to various programmes in place to support different industries and attract foreign 
investment which are not covered in China's notifications.  WT/TPR/M/3 75/Add.1  
 
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  Questions  40-41 
Could China provide more detailed information about the subsidy programmes referred to in these 
paragraphs?  
Reply  
The subsidy notifications submitted by China contain a large number of preferential policies for 
attracting foreign investment. Please refer to them.  
From 1 January  2011 to 31 December  2020, in accordance with the Notice on the Tax Policy Issues 
Concerning Further I mplementation of the Western Development Strategy  (CAI-SHUI [2011] 
No. 58), the enterprise income tax rate  shall be reduced by 15% for encourag ing type industrial 
enterprises in the western region. The term "encouraging -type industrial enterprises" refers to the 
enterprises whose main business is the industrial items specified in the  Catalogue of Encouraging -
Type Industries in the Western  Region , and whose main business income acc ounts for 70% of the 
total income of the enterprise s. The Catalogue of Advantageous Industries with Foreign Investment 
in the Central and Western Regions  is a component part of the Catalogue of Encouraging -Type 
Industries in the Western region,  so the ente rprises i n the western region whose main business is 
the industrial items  specified in the Catalogue of Advantageous Industries with Foreign Investment 
in the Central and Western Regions  and whose main business income accounts for 70% of the total 
income of the enterprise s, according to the said policy, will enjoy a reduction by 15% of the on the 
enterprise income tax.  
Question  
Regarding the financial subsidies to projects in the photovoltaic  industry referred to in 
paragraph  3.109, while China's last Subsidy notification in 2015 mentions certain support to the 
photo -voltaic industry, that notification states that that scheme ended in 2012. Can China clarify if 
the schemes referred to in the W TO secretariat report are separate schemes to that already notified? 
If so, will China notify these particular schemes in its next subsidy notification?  
Reply  
China has clarified the relevant matters item by item at the regular subsidy meeting, and has 
reflected the information currently verified and available in the central and local subsidy notification 
submitted by the China. China's central and local subsidy notification has been updated to the period 
of 2015 -2016. For the detailed subsidy programme , please refer to China's  subsidy notifications 
submitted.  
China will continue to make efforts to fulfil its obligations for subsidy notification as stipulated by  SCM. 
Page 70, Table 3.13  
The table lists support measures to projects for industrial transformation and upgrading.  
Questions 42 -45 
• With regard to the funds listed in the table, could China please provide details of the amount 
of each of the funds in question and the criteria which enterprises must meet in order to obtain 
financing under th e schemes?  
Reply  
If we consider a fund to be subject to notification to the WTO, we will include it in the notification; 
if the fund is market -based, it will not fall within the scope of the subsidy agreement.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Concerning the National fund for Technology Transfer and Commercialisation, given that this was 
set up in 2011, could China indicate where this is included in any of its Subsidy Notifications to the 
WTO?  
Reply  
If we consider a fund to be subject to notification to the WTO, we will include  it in the notification; 
if the fund is market -based, it will not fall within the  scope of the subsidy agreement.  
For the detailed subsidy programme , please refer to China's  subsidy notifications submitted.  
Question  
Could China clarify when the National F und Valued RMB 60 trillion to support the Development of 
Small and Medium Enterprises was set up?  
Reply  
We will include it in the notification if we consider a fund needs to be notified to WTO; a fund will 
not fall within the jurisdiction of the Subsidies Agreement if it is a fund operated in the market -
oriented way. Please refer to the subsidy notifications submitted by the Chinese government for the 
specific subsidy policy.  
Question  
Given that the other funds appear to have been established in 2015 or la ter, will China confirm that 
these will be included in the next subsidy notification to the WTO?  
Reply  
If we consider a fund to be subject to notification to the WTO, we will include it in the notification; 
if the fund is market -based, it will not fall within the scope of the subsidy agreement.  
China has reflected the information currently verified and available in the central and local subsidy 
notification submitted by the China. China's central and local subs idy notification has been updated 
to the period of 2015 -2016. For the detailed subsidy programme , please refer to China's  subsidy 
notifications submitted.  
Page 70 -71, Table 3.14  
The table lists various support measures in 2015 -17. 
Question 46  
Given that a ll the support measures mentioned in Table 3.14 appear to have been established from 
2015 onwards, will China ensure that these are included in the next subsidy notification to the WTO 
which should cover the period 2015 and 2016?  
Reply  
The WTO Subsidy  Agreement  empowers its members to submit their notifications autonomously 
according to their understanding to the Agreement.  
China has clarified the relevant matters item by item at the regular subsidy meeting, and has 
reflected the information currently v erified and available in the central and local subsidy notification 
submitted by the China. China's central and local subsidy notification has been updated to the period 
of 2015 -2016. China will continue to make efforts to fulfil its obligations for subsid y notification as 
stipulated by SCM.  WT/TPR/M/3 75/Add.1  
 
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  3.3.2 Standards and other technical requirements , 3.3.2.1 Overview , page 71, 
paragraph  3.114  
The report states that association standards can be adopted by chambers of commerce,  for example.  
Question 47  
Can chambers whose members are not Chinese economic operators, such as the EU -China Chamber 
of Commerce, file association standards?  
Reply  
According to the Standardization  Law, "the State encourages societies, associations, chambers of 
commerce, federations and industrial and technological alliances and other social groups to 
coordinate relevant main market players to jointly formulate corporate standards to meet the needs 
of markets and innovation, for the members of the group to adopt as agreed or for the societies to 
voluntarily use in accordance with the provisions of the group". The main body formulating the group 
standards is society, association, chamber of commerce, fede ration, industrial technology alliance 
and other social groups. Social groups shall be established in accordance with the Regulations of the 
People's Republic of China on the Administration of Registration of Social Organizations  and other 
relevant provisi ons.  
Page 72, paragraph s 3.115 -3.116  
Despite assurances that the Chinese standardisation bodies are open to foreign companies, the key 
technical committees for information security (such as Technical Committee 260, Cryptography 
Industry Standardisation Technical Committee and Technical Committee 28 on Information 
Technology) still refuse access to some foreign invested enterprises in China.  
Questions 48 -50 
• Could China provide information on the specific eligibility conditions of the standardisation 
bodie s, and, in particular, as regards the Working Groups 2 and 3 of Technical Committee 
260?  
Reply  
The National Technical Committee for Standardization of Information Security (hereinafter referred 
to as the NTCSINS ) is committed to establishing an open and t ransparent working mechanism and 
an open participatory approach to the working group, encourag ing and absorb ing more enterprises, 
universities, scientific research institutes, testing and certification bodies and users to voluntarily 
join the working group  and participate in the formulation of national network security standards,  in 
order to improve the participation and universality of the formulation of standards,  and g ive full play 
to the main role of enterprises.  
The NTCSINS  consists of eight working groups including the Working Group on Information Security 
Standards Systems and Coordination (WG1), Working Group on Security and Privacy Standards for 
Confidential Information Systems (WG2), Working Group on Cryptographic Standards (WG3),  
Working  Group on Authentication and Authorization (WG4), Working Group on Information Security 
Assessment (WG5), and Working Group on Communications Security Standards  (WG6), Working 
Group on Information Security Management (WG7) and Special Working Group on B ig Data Security 
Standards  (SWG -BDS).  
Among which, WG1 is responsible for studying the system of information security standards, tracking 
the development trend of international information security standards, and researching and 
analy sing the application requ irements of domestic information security standards , without 
formulating specific standards ; WG2 is responsible for studying and proposing a system of security 
and confidentiality standards for confidential information systems, and for formulating and revi sing 
security and confidentiality standards for confidential information systems,  with the participation of 
the member units to be subject to the relevant provisions of the State on confidentiality. The 
six working groups of WG3, WG4, WG5, WG6, WG7 and SWG -BDS have long been open to society WT/TPR/M/3 75/Add.1  
 
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  for public solicitation of working group members.  In accordance with the Constitution  for the Working 
Group s of the National Technical Committee for Standardization of Information Security , the working 
group members should satisfy three basic requirements: 1. Enterprises, institutions of higher 
learning  colleges and universities, a nd scientific research institutes that have been registered in 
China with the status of legal person, etc .; 2. Voluntary participat ion in the working group,  abiding 
by the  Constitution for the Working Group of the National Technical Committee for Standardization 
of Information Security. 3. Engag ing in operations related to the technical field of the working group. 
All the basic condit ions shall be met to apply for membership in the working group.  
The application process for member units is as follows: 1. The applicant shall submit an Application 
Form of member unit to the secretariat of the NTCSINS; 2. The secretariat submits the appli cation 
materials to the working group concerned for qualification examination. 3. After the qualification 
examination by the working group has been passed through successfully, the secretariat shall notify 
the members for the relevant formalities. The appr oval process for participation in has been based 
on the principle of openness and transparency, with the relevant requirements for the members of 
the working group is consistent between domestic and foreign institutions that should be subject to 
the same a pproval process.  
Question  
Can China please clarify whether the China Association of Standards (CAS) can prescribe rules for 
the implementation of standards?  
Reply  
Article 18 of the Standardization Law  states that "the State encourages societies, associations, 
chambers of commerce, federations and industrial and technological alliances, and other social 
groups to coordinate with the relevant market players in the development of corporate standards to 
meet the needs of markets and innovation, for the members of the group to adopt as agreed or the 
communities to voluntarily use. CAS may, in accordance with the law, formulate corporate standards, 
and CAS may, provided that it does not violate laws and regul ations, formulate rules for the 
implementation of the corporate standards formulated by the CAS.  
Question  
Can China outline how it will ensure consistency in the regional implementation of standards 
regulations to ensure that foreign companies are not excl uded from local standards and processes?  
Reply  
Item 2 under Article 22 of the Standardization  Law states that "the use of standards for the purpose 
of excluding or restricting competition in markets, such as impeding the free flow of goods and 
services, shall be  prohibited."  Competition in the market cannot be excluded or restricted in the 
implementation of the standards at the local level.  Neither t he Standardization  Law nor the Local 
Standards  Management  Method  exclude s foreign companies from the scope of work of local 
standards.  On the contrary, local standard s should be set up in strict accordance with t he principles 
of openness, transparency and impartiality, with the door  kept opened  to enterprises in China, 
includin g foreign companies. In some places, foreign companies or technical institutions in the 
industry will also be invited to participate in the formulation of local standards.  
Page 72, paragraph  3.118 
The 2018 amendment to the Standardization Law should provid e for an easier preparation of market -
oriented standards, more proactive participation in international standardization activities, and 
improve the management of the standard -setting process .  
Question  51 
Can China please provide more details about concrete measures the authorities intend to undertake 
with a view to achieve the goals as stated in paragraph 3.118?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
After the promulgation and implementation of the new Standardization  Law, we will actively 
formulate the supporting regulations and n ormative documents  thereof , and refine the relevant 
contents of the legal provisions,  so as to ensure that all measures will be fully implemented in place.  
Page 73, paragraph  3.121  
Chinese standards are divided into voluntary and mandatory standards (technical regulations). 
Government agencies can approve and promulgate technical regulations that may make reference 
to voluntary standards, rendering them mandatory.  
Questions  52-54 
• Can China please explain if there is a table listing the mandatory standards per product, 
product group and regulated sector?  
Reply  
At present, the catalogue of national standards approved and issued by China can be inquired on 
the website of Standardization  Administration of the People's Republic of China (SAC). The texts of 
compulsory national standards have been opened to the society freely, but there is no special 
standard list or form for the supervision of some special product.  
Question  
How do governme ntal agencies/bodies coordinate in order to oversee which standards are targeting 
the same products?  
Reply  
According to the provisions in the new Standardization Law , the scopes of all kinds of standards are 
defined clearly. If the standards have some overlapping parts or not connected or matched, the 
administrative department in charge of standardization of the State Council will deal with these 
problems with relevan t administrative departments of the State Council or through the 
standardization coordination mechanism of the State Council.  
Question  
Is there a centralised monitoring or listing of standards that are referenced in technical regulations 
and thus rendered  "mandatory"?  
Reply  
There is no centralized standard listing for the mandatory standards referenced due to technical 
regulations.  
Page 73, paragraph 3.122  
"According to the authorities, at end -2017 some 74.3% of mandatory standards and some 85.9% 
of volun tary standards were adoptions or an adaptation of international standards, compared to 
74.3% and 75.2% at end -2014. " 
Question 55  
Can China please provide information on how and where the adaptations of international standards 
(differences) are made evident?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In accordance with Article 12 in the Adopt International Standard Management Approach , China's 
adoption of international standards is divided into the identical adoption and the modified adoption. 
Identical adoption is the same as the intern ational standards in the technical content and text 
structure with only a little of editorial modification; modified adoption has some technical differences 
from the international standards, in which these differences have been indicated and the causes 
have been explained, and the editorial modification is allowable. Modified adoption doesn't include 
but only reserve a small amount of or unimportant clauses of the international standards. When the 
modification is adopted, Chinese standards and the internati onal standards shall correspond in the 
text structure. The text structure is allowed to change only when the comparison of the content and 
text structure with the international standards is not affected.  
Page 74, paragraph 3.124  
In the TBT Committee, a number of specific trade concerns (STCs) have been raised related to  
standards and specific product regulations like cosmetics and medical devices.  
Questions 56 -60 
• Regarding cosmetics , could China indicate the planned timeframe for the adoption of the new 
approach on cosmetics ingredients and the state of play of the new draft on Cosmetics 
Supervision and Administration Regulation?  
Reply  
In view of that the current regulations on cosmetics have been issued and implemented for nearly 
30 years but there is a big gap between some supervisory systems and the development status and 
supervision of the cosmetics industry factually, the former China Food and Drug Administration 
(CFDA) drafted the Cosmetics Supervision and Administration Regulation  (Revised Draft) af ter 
collecting the advices extensively, and sent it to the State Council in 2015, in which some new 
supervision measures were put forward according to the concerns of all sectors of society from the 
point of view of streamlining government and delegating a uthorities, encouraging innovations and 
facilitation of import trade. For example, the same record system was adopted for the imported and 
domestic common products, and the registration and record systems were adopted for the new raw 
materials of cosmetics  according to the degree of risk. At present, new regulations are still in the 
legislative process.  
Question  
Is China taking any action to remove additional requirements applied to imported non -special 
cosmetics compared to domestic non -special cosmetics?  
Reply  
Because the safety supervision is implemented mainly for the final products of imported cosmetics, 
the whole -process management from R&D to production and circulation of the domestic cosmetics 
cannot  be used. At present, the imported cosmetics shall be examined and approved in China 
according to the existing laws and regulations on the cosmetics. It should be noted that although 
there are some differences in the management mode between the imported no n-special cosmetics 
and the domestic non -special cosmetics, they are completely consistent in the requirements for the 
relevant declaration materials and safety technical standards without disagreement. Since 2017, 
China has begun to start the pilot reform  of imported non -special cosmetics in Shanghai Pudong 
New Area and other ten free trade zones in accordance with the State Council's general plan for the 
reform of Separation of Business License from Operating Permit, and adjusted the examination and 
appro val of imported non -special cosmetics to the record management. Meanwhile, in the Cosmetics 
Supervision and Administration Regulation  (Revised Draft) which is being revered, a same 
management mode of imported and domestic cosmetics is put forward based on the principle of 
safety risk management, that is, the special cosmetics shall be registered and the common cosmetics 
shall be recorded.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Regarding  medical devices , could China please clarify: Instead of requesting duplicative clinical trials 
in China, does China intend to accept clinical trials conducted in foreign countries that are members 
of the International Medical Device Regulators Forum (IMDRF) and exempt low hazard medical 
devices from clinical trials?  
Reply  
The former CFDA has issued three  batches of medical device catalogues exempted from clinical trials, 
and is making the fourth batch of medical device catalogues to be exempted from clinical trials, in 
order to further expand the range of products exempted from clinical trials.  
The forme r CFDA has issued the Technical Guidelines Clinical Appraisal Medical Devices , in which it 
is specified that the clinical trials or clinical service data for clinical assessment may come from home 
or from aboard; if the clinical trials of the imported medi cal devices conducted abroad meet the 
relevant technical requirements in Chinese regulations and technical guidelines, such as sample size, 
selection of control group, assessment index and principle, and assessment index for curative effect, 
the applicant for registration may submit the clinical trial data submitted to the overseas competent 
department of medical devices for overseas listing when applying for registration.  
The former CFDA has issued the Technical Guidelines for Acceptance of Overseas Clinical Trials of 
Medical Devices , in which the ethical principles, legal principles and scientific principles for receiving 
the data of overseas clinical trials are put forward, and the requirements for the data and techniques 
of clinical trials data abr oad are clarified. Besides, in the Guidelines , the factors and technical 
requirements that shall be considered for the acceptance of data of overseas clinical trials are 
expounded from the requirements of technical review, the tested population, the differ ences in the 
clinical trial conditions, the specific examples of the clinical significance of different factors on the 
clinical data are given, and the above data of overseas clinical trials of medical devices include but 
are not limited to the data from t he member countries of IMDRF.  
Question   
• Moreover, could China clarify whether there is an obligation to perform clinical trials for class  II 
and III in -vitro diagnostic medical devices on Chinese populations living in a Chinese mainland 
environment?  
Reply  
There is no law and regulation on the clinical trials for class II and III in -vitro diagnostic medical 
devices on Chinese populations living in a Chinese mainland environment. For the medical devices 
applied for listing in China, the applicants for registr ation shall consider race differences according 
to specific product features. For example, on the in -vitro diagnostic reagents for the genetic 
detection of genetic diseases, if there are different genetic genes in different races, the genes of 
overseas pop ulation that are selected to be detected with overseas products may be different from 
the genetic genes of Chinese population, so the influence factors on the genetic genes of diseases 
in Chinese population such as mutation site and mutation frequency shal l be considered, and 
corresponding clinical researches shall be carried out.  
Question  
• Could China inform whether there is any ongoing revision of Chinese legislation so as to accept 
Electromagnetic Compatibility (EMC) test reports from foreign laboratories ? 
Reply  
The mutual recognition has been realized among 54 members since Chine joined the IEC System of 
Conformity Assessment Schemes for Electrotech nical Equipment and Components (IECEECB).  
 
China has not yet joined EMC of the international mutual recognition system of IECEECB, and will 
start the feasibility assessment at the right time in accordance with the mutual recognition of EMC.  WT/TPR/M/3 75/Add.1  
 
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  3.3.2.2 Product certification , page 74, paragraph s 3.127 -3.132  
The report describes the China Compulsory Certificat ion (CCC) system and notes that no changes 
have taken place since the last TPR. The EU would like to stress again the need for a comprehensive 
review of the CCC, in order to replace the current 'one size fits all' approach with one based on the 
considerati on of actual levels of risk to health and safety posed by the very diverse product groups 
coming under the CCC.  
Question 61  
Is China considering any measures to reduce the considerable costs that are associated with 
CCC certification for foreign manufactu rers located outside China, in particular SMEs?  
Reply  
In June 2018, the State Administration for Market Regulation and the Certification and Accreditation 
Administration issued the Announcement on Reform and Adjustment of Mandatory Product 
Certification Catalogue and Implementation Modes  (Joint Announcement No. 11 of 2018), which 
specifies that some products will not be subject to compulsory product certification any more, and 
some products will be subject to self -declaration evaluation, strengthens the r esponsibilities of the 
market main body and further reduces the institutional transaction costs.  
3.3.3 Sanitary and phytosanitary requirements , page 76, paragraphs 3.136 -3.142  
The section lacks information on how China applies international standards.  
Questions 62 -63 
• Could China provide information on how it applies international standards?  
Reply  
According to the provisions in Chapter 2 of OIE, China has carried out the risk analysis on the 
imported animals and animal products, lifted the ban on the epidemics timely according to the 
analysis results, and made the relevant risk management measures. Regarding the control of animal 
epidemics, especially the regional technology standards, China has applied them actively according 
to the relevant provisions of OIE. For example, on the aftosa, China has implemented regional 
management in accordance with t he regulations of OIE, lifted the ban on epidemics in whole or 
partial regions of Argentina, Columbia and Kazakhstan, and started the technical assessment of 
regional management measures for Laos, Burma, Mongolia and Kyrgyzstan. In order to minimize 
the im pact of the high pathogenic avian influenza on the trade, China has actively promoted the 
management measures for the compartmentalize ion, reached an agreement with the Russian 
Federation and Czech Republic on the technical requirements, and launched the technical 
consultations with the United States, Britain and Holland. On the bluetongue, China has been 
implementing the regional management measures. For example, there are nearly 100,000 live cattle 
imported to China from Australia, which are the importan t achievements of regional management.  
Question  
• Would China consider adopting regionalisation or compartmentalisation approaches in relation 
to assessing the implications of animal disease for continuation of trade?  
Reply  
For the management of animal epid emics, China has applied the regionalization, especially the 
regional technical standards actively according to the relevant regulations of OIE. On the aftosa, 
China has implemented regional management in accordance with the regulations of OIE, listed the 
ban on epidemics in whole or partial regions of Argentina, Columbia and Kazakhstan, and started 
the technical assessment of regional management measures for Laos, Burma, Mongolia and 
Kyrgyzstan. For the high -pathogenic bird flu, China has actively promoted  the management 
measures for the compartmentalize ion, reached an agreement with the Russian Federation and WT/TPR/M/3 75/Add.1  
 
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  Czech on the technical requirements, and launched the technical consultations with the United 
States, Britain and Holland.  
Page 77, paragraph 3.142  
The EU is among the WTO Members that raised in the SPS Committee some of the specific trade 
concerns mentioned in the report.  
Questions 64 -65 
• Can China provide further detail on plans to lift BSE restrictions on imports of European beef 
and lamb?  
Reply  
At present, 15-member  countries of EU have put forward an application to China for lifting the ban 
on the epidemic. The progress is as follows:  
The ban on the epidemic in six countries has been lifted.  
 
Country  Lifting time  Content  
Holland  June 2014  Veal under 12 months old  
Ireland  February 2015  Veal under 30 months old  
Denmark  October 2016  Veal under 30 months old  
France  March 2017  Veal under 30 months old  
Italy  December 2017  Veal under 30 months old  
Britain  June 2018  Veal under 30 months old  
 
The procedure to lift the ban has been launched in nine countries.  
 
Country  Progress  
Czech Republic  The field assessment was completed in April 2018, and the final assessment report is 
being completed.  
Finland  The risk analysis of the written materials has been completed, and the formalities for 
the experts to go abroad to conduct the field assessment is being handled.  
Spain  The risk analysis of the written materials has been completed, and the formalities for  
the experts to go abroad to conduct the field assessment is being handled.  
Belgium  The risk analysis of the written materials has been completed, and the formalities for 
the experts to go abroad to conduct the field assessment is being handled.  
Germany  The risk analysis of the reply materials is being conducted.  
Romania The risk analysis of the reply materials is being conducted.  
Poland  The risk analysis of the reply materials is being conducted.  
Slovakia  The questionnaires were sent out in November 2015, but there was no reply.  
Sweden  The questionnaires were sent out in September  2016, but there was no reply.  
Question  
• Can China confirm whether it will lift restrictions on European poultry products imposed as a 
result of incidents of high pathogenic avian influenza?  
Reply  
At present, China is actively promoting the lifting of restrictions imposed by relevant countries for 
the pathogenic avian influenza incidents, the progress is as follows:  
(1) The restrictions on the incidents in one country, specifically, Poland, has been lifted.  
(2) The procedure to lift the restrictions has been launched in nine countries : 
 WT/TPR/M/3 75/Add.1  
 
- 355 - 
 
  Country  Progress  
Germany  The field assessment was completed in January  2018.  
Hungary  The risk analysis of the written materials has been completed, and the formalities for 
the experts to go abroad to conduct the field assessment is being handled.  
Czech Republic  The questionnaires were sent out, but there was no reply. Both parties have reached 
consensus on introducing the compartmentalisat ion management.  
France  The risk analysis of the reply materials is being conducted. Both parties are negotiating 
on introducing the compartmentalisation management.  
Holland  The risk analysis of the reply materials is being conducted.  
Britain  The risk analysis of the reply materials is being conducted.  
Denmark  The risk analysis of the reply materials is being conducted.  
Spain  The risk analysis of the reply materials is being conducted.  
Sweden  The questionnaires were sent out, but there was no reply.  
 
In order to minimize the impact of the high pathogenic avian influenza on the trade, China has 
actively promoted the management me asures for the compartmentalizat ion, reached an agreement 
with the Russian Federation and Czech Republic on the technical re quirements, and launched the 
technical consultations with the United States, Britain and Holland.  
3.3.4 Competition policy and price controls , 3.3.4.1 Competition policy , 
3.3.4.1.1  Legislative and institutional framework , page 78, paragraph  3.148 and page 79, 
Box 3.1  
The report refers to a "lack of autonomy of the three agencies [which] creates the potential that 
competition policy may be influenced by industrial policies which sometimes conflict with competition 
policy.  In March 2018, China established the  State Administration for Market Regulation (SAMR) and 
consolidated the existing three antitrust bodies into one.  
Questions 66 -68 
• Could China explain whether measures are being established to safeguard the role and 
independence of the State Administration for Market Regulation (SAMR)as an enforcer of the 
Anti-Monopoly Law(AML) (and the fair competition review system) towards other ministries, 
bodies and policies?  
Reply  
In 2018, in accordance with the requirements of the State Council's institutional reform "on 
strengthening and optimizing the government's anti -monopoly functions", the responsibilities of 
National Development and Reform Commission in price supervision and inspection and 
anti-monopoly law enforcement, the responsibilities of the Ministry of Co mmerce in anti -monopoly 
law enforcement over concentration of undertakings and the responsibilities of the Office of the 
Anti-monopoly Committee of the State Council have been integrated into State Administration for 
Market Regulation which will be in char ge of uniform anti -monopoly law enforcement. This 
institutional reform is conducive to promoting the unity and authority of anti -monopoly law 
enforcement. This is beneficial to strengthen and optimize the anti -monopoly work, and promote the 
establishment o f the basic position of competition policies. China's anti -monopoly law enforcement 
organs will implement anti -monopoly law enforcement in strict accordance with the provisions of the 
Anti-Monopoly  Law and the State Council's Opinions on Establishing a Fair Competition Review 
System During the Development of Market -Oriented System  and promote the implementation of the 
fair competition review.  
Question  
• Please explain how SAMR interacts with ministries in charge of industrial policies and how 
coordination between AML policy and industrial policies are conducted, including how different 
policies are prioritised.  WT/TPR/M/3 75/Add.1  
 
- 356 - 
 
  Reply  
The Chinese Government will gradually establish the basic status of competition policies, give full 
play to the decisive role of the market in  the allocation of resources, and better play the role of the 
government. In 2016, the State Council issued the Opinions on Establishing a Fair Competition 
Review System During the Development of Market -Oriented System, and established the fair 
competition  review system, which provides an institutional mechanism for coordinating the 
competition policies and the industrial policies. Through fair competition review, we can ensure that 
the industrial policies can penetrate the concepts and requirements of fair  competition in formulation 
and implementation, reflect the basic status of competition policies, and enable competition policies 
and industrial policies to promote China's economic development cooperatively.  
Question  
• Does China foresee to consolidate the main regulations and guidelines dealing with 
competition issues (see Box 3.1) in order to ensure uniformity in substance and procedures, 
e.g. on leniency?  
Reply  
According to the national institutional reform plan, State Administration for Market Supervisio n will 
uniformly undertake anti -monopoly law enforcement, supervise administrative monopoly according 
to law, and take the lead in conducting fair competition review. According to the Anti -Monopoly  Law, 
the Anti -Monopoly Committee of the State Council is r esponsible for studying and formulating 
relevant competition policies.  
Page 78, paragraph 3.150  
This paragraph refers to provincial level enforcement of the Anti -Monopoly Law.  
Question 69  
Could China explain how this structure is constructed under the SAMR?  
Reply  
According to the relevant plan for reform of state institutions, functions of the State Administration 
for Industry & Commerce, functions of General Administration of Quality Supervision, Inspection and 
Quarantine, functions of China Food and D rug Administration, price supervision and inspection and 
anti-monopoly law enforcement functions of National Development and Reform Commission, 
anti-monopoly law enforcement work of the concentration of undertakings of the Ministry of 
Commerce, and functio ns of Office of Anti -Monopoly Commission of the State Council should be 
integrated to set up the SAMR as an institution directly under the State Council.  
3.3.4.1.4 Mergers and acquisitions , page 81, paragraph 3.160  
The report refers to deadlines for merge r review.  It appears that in a number of cases, parties have 
to withdraw their notification with a view to immediately refile.  
Questions 70 -71 
• Could China provide some explanation and statistics regarding this practice?  
Reply  
In accordance with the relevant Chinese anti -monopoly laws and regulations, after the Chinese 
anti-monopoly law enforcement agency files a concentration case on file, and before making a 
decision on review, the declarant shall submit a written application and explain the reason for 
withdrawing the concentration declaration of the operator. Except where the concentration 
transaction is abandoned, the withdrawal declaration shall be approved by the anti -monopoly law WT/TPR/M/3 75/Add.1  
 
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  enforcement agency. If the operator withdraws the concentration de claration, the review procedures 
shall be terminated. The anti -monopoly law enforcement agency agrees that the withdrawal of the 
declaration shall not be deemed as approval of concentration review of the operators.  
Question  
• If SAMR rejects an application f or merger review, will the parties have an opportunity to reply 
to a written statement of the reasons for the rejection prior to SAMR taking a final decision 
and on the basis of access to the file?  
Reply  
According to Article 10 of the Measures for Concentr ation Review of Operators, if the Chinese 
anti-monopoly law enforcement agency believes that the concentration of operators has or may have 
the effect of excluding the restriction of competition, it shall inform the operators participating in the 
concentra tion of its objections, and set a reasonable period for allowing them to submit written 
defences. If the defences are not submitted within the time limit, it shall be deemed as these 
operators have no objection. According to Article 6 of the Provisions on Restrictive Conditions for 
Concentration of Operators (Trial), if the declarant fails to submit the conditional proposal within the 
specified period, or the proposed proposal is insufficient to reduce the adverse effect of the 
transaction on the competitio n, it will be prohibited by the anti -monopoly law enforcement agency.  
Page 82, paragraph 3.164  
China's  Anti-Monopoly Law provides that, in cases of acquisition of a domestic enterprise by a foreign 
investor or when a foreign investor participates in concentrations by other means, a "national 
security review " must also be conducted if the acquisition involv es "state security ".  
Questions 72 -73 
• Which authority is in charge of conducting such review?  
Reply  
According to Notice on Establishment of Security Review System Pertaining to Mergers and 
Acquisitions of Domestic Enterprises by Foreign Investors (Guobanfa  {2011} No. 6), work of foreign 
investment security review shall be specifically undertaken by the joint ministerial meeting of foreign 
investors on merger and acquisition of domestic enterprises. Under the joint meeting mechanism, 
the NDRC and MOFCOM will  jointly conduct a security review with the relevant departments.  
Question  
• Is the notion of "state security " in the case of mergers and acquisitions different from the 
general notion of "national security "; if so, how?  
Reply  
The National Security Law of People's Republic of China defines the national security in a unified 
manner.  
3.3.4.1.5 Administrative monopoly , page 83, paragraph s 3.165 -3.166 
The report states that while administrative monopolies are generally prohibited, some commentators 
consider tha t this is still a problem in China.  
Question 74  
Could China indicate how many cases the AML enforcement authorities have conducted against 
administrative monopolies during the past five years and provide some detail on the cases?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Over the past five years , 129 cases of administrative monopoly have been investigated directly and 
directed by local price authorities.  
3.3.5 State trading, state -owned enterprises, and privatization , page 87, paragraph 3.183 
and page 88, Table 3.19  
Table 3.19 shows that the  number, assets and profits of SOEs in the industrial sector were higher in 
2016 than in 2014. Paragraph 3.183 states that "of the ten largest SOEs, five are under SASAC's 
supervision (Table 3.20). The State remains a majority shareholder in all but one of  the 100 largest 
publicly listed Chinese companies".  
Despite the announcements by China of the move towards greater market influence in the allocation 
of resources, this is not evident to date. On the contrary, the relevant institutional and legal 
framewor k surrounding SOEs in the Chinese economy effectively allow the government an 
exceptionally favourable platform to exert control over the country's economy.  
Question 75  
Could China please explain and reconcile how the market can play a decisive role in re source 
allocation while so much of the economy is served by enterprises which operate under the ownership, 
control or policy supervision or guidance of the Chinese authorities?  
Reply  
The implementation of trade policies is market -oriented, though guided by  the government, and 
aims to comprehensively deepen reform, highlight the dominant position of the enterprise, and give 
full play to the decisive role of the market in resource allocation.  
3.3.6 Government procurement , 3.3.6.6  Accession to the GPA and othe r international 
cooperation , page 96, paragraph 3.218  
The report summarises the state of play of China's accession negotiations to the GPA. The EU 
welcomes China's efforts to adhere to the GPA and encourages China to speedily submit a new 
revised offer tha t takes account of Parties requests. The EU hopes that the negotiations will lead to 
a successful conclusion of the accession process in the near future.  
Question 76  
In order to prepare for GPA accession, when does China intend to do the necessary revisio n of its 
current legal framework to allow for non -discriminatory access of foreign companies to the Chinese 
public procurement markets?  
Reply  
China will carry out the legal adjustment work after reaching an agreement with the participants in 
connection with the market access offers. China will ensure its laws and regulations to be consistent 
with the agreement requirements when joining the Government Procurement Agreement .  
3.3.7 Intellectual property rights , 3.3.7.1 Overview , page 97, paragraph 3.223  
The report states that China's IPR legislation has remained largely unchanged since its previous TPR.  
Question 77  
When does China expect the e ntry into force of its pending amendments to the patent law, to the 
copyright law, and to the e -commerce law?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Patent Law, the Copyright Law and the E -commerce Law are being revised reliably, and the time 
to take effect is not sure at present.  
Page 97, paragraph 3.224  
Reference is made to China's membership in international organisations and conventions related to 
IPR.  
Question 78  
Does China plan to become member of The Hague  Agreement concerning the international 
registration of industrial designs?  
Reply  
The Patent Law is being revised overall for the fourth time, and China will start the related work 
agreed in Hague at right time after completing the revision of the Patent L aw. 
3.3.7.2 Industry property , 3.3.7.2.1 Patents , page 98, paragraph 3.226  
Reference is made to China's framework of patent protection for inventions, utility models, and 
industrial designs.  
Questions  79-80 
• Does China consider putting in place a patent term extension system for pharmaceutical 
products in general, including biologics and small molecule drugs?  
Reply  
At present, China is drafting and demonstrating the patent term extension system. China will finally 
determine whether to bring all drugs incl uding the biologics and small molecules into the range of 
patent term extension system referring to the foreign mature practice after listening to domestic 
and overseas enterprises' advices.  
• As regards industrial designs, does China consider introducing a  grace period and extending 
the maximum protection beyond ten years, in line  with international standards?  
Reply  
The Patent Law is being revised overall for the fourth time at present, in which it is suggested to 
extend protection period of appearance desi gn to 15 years, but the final patent law passing the 
deliberation shall prevail.  
3.3.7.2.2 Trademarks , page 102, paragraph 3.241  
The report states that the holder of a trademark well known by the relevant public may file a request 
for its protection.  
Question 81  
Would China consider instructing its administration and courts to explain in their decisions the 
reasons, in some detail, why submitted evidence of a well -known trademark holder is regarded as 
insufficient?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In the judicial practice, the identification of well -known trademarks is based on the principle of Case 
Identification, Passive Identification and As -required Identification. The people's court will overall 
consider whether it is necessary to identify the trademark involved in the case  as a well -known 
trademark combined with the evidence submitted by the parties and the specific circumstances of 
the case. On the issue of putting to the proof and standard of proof in the civil actions, related 
regulations have been specified in Article 1 05 and 108 of Interpretation of the Supreme People's 
Court on Application of Civil Procedure Law of the People's Republic of China . In regard to the 
administrative litigation, relevant provisions have been made in the Provisions of the Supreme 
People's Cou rt on Several Issues on Evidences in Administrative Litigation . In June 2018, the 
Supreme People's Court issued the Guidance for Strengthening and Standardizing Reasoning in 
Judicial Documents , in order to further strengthen and standardize the reasoning t he judicial 
documents of the people's courts, and improve the reasoning level the quality of the judgment 
documents.  
3.3.7.2.3 Geographical indications , page 102, paragraph 3.244  
The report describes the types of GI protection under various laws and regulations.  
Questions  82-84 
• As SIPO takes over the competences of both SAIC and AQSIC in this regard, is it planned that 
the processes, registrations, and scopes of protection of those GIs will be aligned?  
Reply  
At present, China is implementing the insti tutional reform, and the management system of GIs will 
be determined after the institutional reform.  
Question  
• Could China elaborate on the joint GI certification mechanism that it plans to establish?  
Reply  
As one of the important types of intellectual prop erty, the protection of GIs has always been valued 
highly by the government of China. According to the institutional reform scheme of the State Council 
in March  2018, State Intellectual Property Office that was reorganized was responsible for the 
registrat ion and administrative adjudication of trademarks, patents and GIs in the source areas, 
which laid a system and mechanism foundation for the protection of GIs.  
Question  
• Could China provide information on rules governing coexistence of GIs and trademarks as well 
as on invalidation procedures for trademarks?  
Reply  
In Chinese legal system, the GIs can be protected by the Trademark Law according to the provisions 
in Article 16 of Trademark Law  and Article 4 of the Enforcement Regulations of Trademark Law . In 
Article 16 of Trademark Law , it is specified that if a product has a trademark with a GI, but the 
product is not from the area where the GI indicates and will mislead the  public, the trademark shall 
not be registered and shall be banned; however, the trademarks that has been registered in good 
faith shall remain in force. Meanwhile, in Article 4 of Enforcement Regulations of Trademark Law , it 
is specified that the GIs spec ified in Article 16 of Trademark Law may be applied for registration as 
the certification marks or the collective trademarks in accordance with the provisions of the 
Trademark Law and this provision. According to the provisions, GIs can be used and protect ed in 
the form of collective trademarks and certification trademarks by applying for the trademark 
registration. Both of GIs and trademarks belong to the scope of intellectual property, and all of them 
are commercial signs. If they are exactly same or high ly similar, they will be mixed or mistaken WT/TPR/M/3 75/Add.1  
 
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  inevitably in the market. From the point of view of protecting the GIs of public resources, the 
government of China takes a relatively loose judgment scale for the GIs for the application as the 
registration trade marks or collective trademarks when they are judged to be similar to the products 
or trademarks that have been registered or applied in advance. In addition, according to the practice 
of trademark examination, the GIs, certification marks or collective tra demarks that have been 
registered or applied can not only counteract the same or approximate trademarks of similar 
products that are applied later, but also counteract the same trademarks of any product or service 
applied later.  
The provisions on the inva lid registration of trademarks are specified in Article 44 and 45 of the 
Trademark Law , in which the Trademark Office can declare an invalid registered trademark 
initiatively in accordance with Item 1, Article 44. Other organizations or individuals can req uest the 
Trademark Review and Adjudication Board to declare that the trademarks registered by others are 
invalid with the absolute reasons according to Item 1, Article 44. The prior obligee or the interested 
party can request the Trademark Review and Adjud ication Board to declare that the trademarks 
registered by others are invalid with the absolute reasons according to Item 1, Article 45.  
3.3.7.3 Copyright and related rights , page 104, paragraph 3.252  
Reference is made to the copyright protection for music  producers and performers.  Unlike authors 
and broadcasters, music producers and performers  do not have the right to license the broadcasting 
or public performance of their sound recordings.  
Question 85  
Does China intend to allow music producers and perfor mers to license the broadcasting or public 
performance of their sound recordings?  
Reply  
There is no relevant provision in Chinese current laws and regulations on copyright, and we will 
research that whether stipulate them or not in the future.  
Page 104, paragraph 3.253  
The report states that there are five collective copyright management organizations in China.  
Question 86  
Does China plan to provide a governmental and procedural framework for copyright management 
organizations and to increase their number ?  
Reply  
The Collective Management of Copyright Regulations of People 's Republic of China , a code 
standardizing the collective management activities of copyright, specifically defines the 
establishment, structure, activity, supervision, etc. of collective management organization of 
copyright. Up to now, no Chinese citizens, legal persons or other organizations have filed an 
application about setting up a collective management organization of copyright.  
3.3.7.4 Other IPRs , page 105, paragraph  3.255  
The legal  basis for the protection of new plant remained largely unchanged.  
Question 87  
By when does China see it feasible to join the  International Union for the Protection of New Varieties 
of Plants (UPOV 1991)?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China is now actively studying UPOV Conventions 1991, and will timely start the work to join UPOV 
Conventions 1991 in combination with the revision of the Regulation on the Protection of New 
Varieties of Plants.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.3 Polic y instruments , 4.1.3.1 Border 
measures , 4.1.3.1.1 Measures affecting imports , page 114, paragraph 114 and Table 4.4   
China's most recent notification of tariff quota u tilisation dates from 2014.  
Question 88   
Can China indicate when it will provide a more u p to date notification?  
Reply  
Please refer to the response to question No. 15.  
4.1.3.2 Internal measures , 4.1.3.2.1 Support measures , page 117, paragraph 4.21 and 
Table 4.7  
China's most recent notification regarding domestic support covers the period 2009-10. 
Questions 89 -90 
• Can China explain why it has not notified the WTO Agriculture Committee about the support 
given to the agriculture sector since 2010?  
Reply  
China planned to submit the notifications in the second half of 2016, as promised in the last trade 
policy review. However, since the United States sued China's  support to wheat, rice and corn on 
13 September 2016, which made it inappropriate for China to provide the information closely linked 
to the case.  
Question  
• When will China provide the outstanding notification, which, in the interest of completeness, 
should include all subsidies given by both Central government as well as Regional or Local 
authoritie s? 
Reply  
China will provide the relevant notifications based on the progress of the case. Once the timing is 
appropriate, the notifications will be submitted as soon as possible.  
4.2.2 Energy , 4.2.2.5 Electricity , page 139, paragraph s 4.79-4.80 
The report outlines the reform for liberalising industrial electricity prices.  
Question  91 
Can China provide information about industrial electricity prices, including their development over 
the past ten years, and give an overview of the single price com ponents for electricity (taxes etc.)?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Before the formation of trading mechanism in the electricity market, the department in charge of 
pricing under the State Council shall formulate the pricing principles and overall level, and the 
department in charge of provincial prices shall formulate the details of various power users. The 
sales price is divided into four categories by user categories: large industry, general industry and 
commerce, agriculture and residents. Specific information on industrial  electricity prices can be found 
on the website of provincial price authorities.  
The single electricity price is a kind of electricity price system that calculates the electricity price 
according to the electricity consumption of the electric power users, and the calculation of the 
electricity cost is independent of the capacity of the electric power users.  
4.3 Manufacturing , 4.3.1 Recent developments , page 140, paragraph 4.85  
Few details are publicly available about the implementation of the "China Manufac turing 2025" plan 
outlined in this paragraph.  
Questions  92-94  
• Could China provide concrete information on all initiatives linked to the plan, such as support 
and subsidy programme s and the conditions for access to the different programme s, sector 
by sect or?  
• Does China have targets for domestic or global market shares in these sectors?  
Reply  
"China Manufacturing 2025" is a guiding strategic plan to promote industrial upgrading. It is 
implemented by adhering to the principle of fairness and justice without  distinction between 
domestic and foreign -funded enterprises as well as restrictive, discriminatory and exclusive content. 
China Manufacturing 2025 takes market -oriented as the primary principle of manufacturing 
development.  
The implementation of Made in China 2025 is a transparent, open and non -discriminatory process. 
It is applicable for all the enterprises in China. Currently, a number of foreign enterprises including 
some American companies have taken part in the implement ing programme s of Made in China 2025. 
With its development, China is willing to offer free ride to more countries so to achieve common 
development.  
Question  
• What steps is China undertaking to prevent overcapacities in the ten sectors covered by Made 
in China 2025?  
Reply  
"China Manufacturing 2025" clearly requests to strengthen industry standards and admittance 
management, strengthen the dynamic monitoring and analysis of industries with severe excess 
capacity, establish and improve early warning mechanis ms, guide enterprises to actively withdraw 
from industries with excess capacity and speed up the elimination of backward capacity.  
Page 140, paragraph 4.86  
The report refers to the Chinese authorities recognizing the issue of excess capacity in some 
manuf acturing sectors.  WT/TPR/M/3 75/Add.1  
 
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  Question 95   
Does China agree with the need to prevent overcapacity from emerging in sectors where it is not 
yet present?  
Reply  
Excess capacity is a global problem, but there is no uniform criterion for definition. The current global 
excess capacity is closely related to the international financial crisis in 2008. Resource exporting 
countries, producing countries, and consuming cou ntries shall bear corresponding responsibilities. 
In recent years, China has made great efforts to solve the problem and achieved remarkable results. 
China is willing to continue to work with the international community to cope with excess capacity.  
4.3.2  Selected subsectors , 4.3.2.1  Automobiles, automotive parts, and components , 
page 141, paragraph 4.93  
Reference is made to the rules on manufacturing new energy vehicles. The EU understands that 
China has included sales targets for new energy vehicles in C hina by 2025 as stated in the Made in 
China 2025 strategy. The EU appreciates the commitment of the Chinese Government to improve 
environmental standards by increasing the uptake of energy vehicles with relevant targets.  
Question 96  
Can China explain wheth er and how targets will develop after 2020, as well as any subsidies and 
relevant credits?  
Reply  
"China Manufacturing 2025" is a guiding strategic plan to promote industrial upgrading. It is 
implemented by adhering to the principle of fairness and justice  without distinction between 
domestic and foreign -funded enterprises as well as restrictive, discriminatory and exclusive content. 
China Manufacturing 2025 takes market -oriented as the primary principle of manufacturing 
development. The relevant changes wi ll be reflected in the relevant notification submitted by China 
to WTO in 2020.  
Page 142, paragraph 4.97  
Further to the developments described in the report, on 17 April 2018, NDRC announced it would 
remove foreign ownership caps for companies making fully  electric and plug -in hybrid vehicles still 
in 2018, for makers of commercial vehicles in 2020, and the wider car market by 2022.  
Question 97  
Can China provide further detail for the removal of foreign ownership caps and joint venture 
requirements in the Chinese automotive sector?  
Reply  
On 28 June 2018, the National Development and Reform Commission and Ministry of Commerce 
jointly issued the Special Management Measures (Negative List) for Foreign Investment Access 
(2018 Version).  In the manufacturing field, the limits for the proportions of share of foreign capital 
of special and new energy automobiles were cancelled for the automobile industry . We will cancel 
the limit for the proportion of share of foreign capital of commercial vehicle in 2020, and in 2022, 
we will cancel the limit for the proportion of share of foreign capital of passenger vehicle and the 
limit of no more than two joint ventu re enterprises.  
4.3.2.2 Electronics and information technology (IT) , page 142, paragraph 4.99  
The report refers to corporate tax exemptions in the semiconductor sector.  WT/TPR/M/3 75/Add.1  
 
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  Question 98  
Can China provide more information about the eligibility for exemptions and the list of companies 
exempted from corporate taxes?  
Reply  
Please refer to the subsidy notice submitted by the Chinese government.  
Page 143, paragraph s 4.100 -4.101  
Paragraph 4.100 refers to statements by Chinese authorities about not having provided any 
subsidies in the electronics and ICT sector. Paragraph 4.101 then refers to the National IC Fund as 
a private equity fund.  
Questions 99 -100 
• Does this imply that ther e is/was no government investment or involvement in the National 
IC Fund?  
Reply  
As told in the report of secretariat, the National IC Fund is a private equity investment fund. Just as 
other international private equity investment funds, all of its investm ent decisions are made, with 
the responsibilities for  the shareholders  taken , while the Chinese government cannot intervene in it.  
Question  
• Can China provide a list of subsidy funds in the semiconductor sector on national, provincial 
and municipal levels?  
Reply  
As told in the report of secretariat, the National IC Fund is a private equity investment fund. Just as 
other international private equity investment funds, all of its investment decisions are made, with 
the responsibilities for  the shareholders  taken, while the Chinese government cannot intervene in it.  
So, the scale of fund, the capital limit already input in the integrated circuit industry, etc. are related 
to the internal information about operation management of fund companies, which the Chinese  
government doesn't  know.  
4.3.2.3 Machinery and equipment , page 144, paragraph s 4.105 -4.106  
The report refers to the 13th Five-Year Plan for the Agricultural Mechanization Development and the 
Robotics Industry Development Plan for 2016 -2020.  
Questions 101-102 
• How will China ensure that these policies maintain a level -playing field for all companies, 
regardless of nationality, and will not curtail the position of foreign businesses, both as 
suppliers of key components and finished products?  
Reply  
The Chinese government has always been committed to creating a business environment with fair 
competition, and treating both domestic and foreign -funded enterprises equally.  WT/TPR/M/3 75/Add.1  
 
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  Question  
• How will China comply with WTO rules considering that the plan contains targe ts to raise the 
minimum domestic content of certain core components and materials to 50% by 2020 and 
70% by 2025?  
Reply  
Relevant indexes of the 13th Five-Year Plan for the Robotics Industry Development Plan are all 
expected and instructive, without substan tial binding force. China has always adhered to the concept 
of open development and win -win cooperation, conscientiously followed relevant provisions of the 
WTO, and actively participated in international cooperation through various bilateral and multilate ral 
mechanisms to create a good environment for pragmatic cooperation between enterprises.  
Page 145, paragraph 4.108  
The report refers to the Action Plans for High -End Smart Reman ufacturing (2018 -2020).  
Question 103  
How does China plan to ensure consistency between Chinese and international standards in order to 
avoid closing the country 's market to foreign companies?  
Reply  
The new Standardization Law  definitely requires that international standards are adopted in 
combination with the national s ituation. China is actively participating in international 
standardization activities, carrying out the foreign cooperation and exchange about standardization, 
enhancing the adoption of international standards, and constantly improving the degree of 
consis tency between Chinese and international standards.  
4.4 Services , 4.4.1  Telecommunications , 4.4.1.2 Regulatory framework , page 149, 
paragraph 4.120 and Table 4.24  
Question 104  
Can China clarify any potential equity cap requirements still applicable for value -added telecom 
services in the Shanghai Free Trade Zone?  
Page 152, paragraph  4.129  
This paragraph refers to Mobile Virtual Network Operators (MVNOs) as regards the related p ilot 
scheme initiated in 2013.  
Question 105  
Could China clarify whether the licensing of MVNOs is also open to foreign -invested companies?  
Page s 153-154, paragraph s 4.136 -4.139  
The following questions relate to the Cybersecurity Law which entered into fo rce on 1 June 2017.  
Questions 106 -107 
• Could China provide a list of related (legislative or non -legislative) rules and other 
implementing measures that are in force or in draft phase? For those that are in draft phase, 
could China elaborate on the timeline for adoption?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Cybersecurity Law of the People's Republic of China  has been formulated and executed by full 
use of advanced international practices. Using general international practices, formulating relevant 
laws as well as administrative laws and regulations according to the national situation and managing 
the network according to law completely fall in the scope of the sovereignty of all countries. Now 
the Critical Information Infrastructure Security Protection Regulations  and Provision on the Security 
Assessment for P ersonal Information and Important Data to Be Transmitted Abroad  are being 
formulated, and the Measures for Network Product and Service Security Review  (on Trial) and 
Catalogue of Key Network Equipment and Special Network Security Products have been publici zed. 
The national standardization department is paying close attention to organizing the formulation of 
such national standards as Guidelines for Cross -Border Data Transfer Security Assessment . In 
general, various tasks are being driven as planned.  
Questio n 
• Could China explain why it has not notified these measures to the WTO and if it intends to do 
so?  
Reply  
The Cybersecurity Law of the People's Republic of China  has been formulated and executed by full 
use of advanced and general international practices,  relevant laws as well as administrative laws 
and regulations have been formulated, and the network has been managed according to law. When 
relevant laws and regulations as well as technical standards were formulated, the contents of APEC 
Privacy Protectio n Framework , General Data Protection Regulation , international standards, etc. 
were fully used and absorbed, for maintaining the national network security and protecting the 
interests of people, without prohibiting the cross -border flowing of data or limit ing international trade.  
Question  
• Which impact does China expect these measures to have on traders in China?  
Reply  
China has adopted these measures to maintain the national network security and protect people's 
rights and interests, without prohibiting th e cross -border flowing of data or limiting international 
trade. These measures were not targeted at certain countries and regions, no foreign technologies 
and products were discriminated against in the review, and no limit was set for any foreign products 
entering the Chinese market. On the contrary, after the above -said measures were developed, the 
consumer's confidence in products and services would increase, personal information and consumer 
rights and interests would be protected, and the business marke t space would be expanded.  
• Could China elaborate on the definitions of "societal public interest" and "critical network 
equipment and specialised network products" of the Cybersecurity Law?  
Reply  
Relevant stipulations are written in the Notice on the Release of the Critical Network Equipment and 
Special Network Security Product Catalogue (First Batch).  
• Could China clarify the relationship between the Cybersecurity Multi -Level Protection Scheme 
and the existing Information Security Multi -Level Protectio n Administrative Measures 
(commonly referred to as MLPS)?  
Reply  
The Cybersecurity Law of the People's Republic of China  has been formulated and executed by full 
use of advanced international practices. Using general international practices, formulating re levant 
laws as well as administrative laws and regulations according to the national situation and managing 
the network according to law completely fall in the scope of the sovereignty of all countries. Now WT/TPR/M/3 75/Add.1  
 
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  the Critical Information Infrastructure Security Protection Regulations  and Provision on the Security 
Assessment for Personal Information and Important Data to Be Transmitted Abroad  are being 
formulated, and the Measures for Network Product and Service Security Review  (on Trial) and 
Catalogue of Key Netw ork Equipment and Special Network Security Products have been publicized. 
The national standardization department is paying close attention to organizing the formulation of 
such national standards as Guidelines for Cross -Border Data Transfer Security Asses sment . In 
general, various tasks are being driven as planned.  
When relevant laws and regulations as well as technical standards were formulated, the contents of 
APEC Privacy Protection Framework , General Data Protection Regulation , international standards,  
etc. were fully used and absorbed, for maintaining the national network security and protecting the 
interests of people, without prohibiting the cross -border flowing of data or limiting international trade.  
In June 2017, the National Internet Information Office, Ministry of Industry and Information, Ministry 
of Public Security as well as  Certification and Accreditation Administration of the People's Republic 
of China jointly issued the announcement of About Issuing the Catalogue of Key Network Equipment 
and Special Network Products (Batch I) , and published the catalogue list of the first batch of key 
network equipment and special network security products.  
Page 153, paragraph 4.140  
The report details how network operators of critical information infrastruct ure are subject to 
reinforced obligations.  
Question 111  
How does China ensure that intellectual property and commercially sensitive information (such as 
source code) will be treated with full confidentiality in the security review process?  
Reply  
Formulation of relevant laws and administrative regulations as per the practical conditions of the 
Country by reference to the international practice and management of the network by laws are 
within the scope of sovereignty of various countries. Safety rev iew on network aims at improving 
the controllable level for safety of network products and services, preventing safety risks in the 
supply chain and maintaining national safety and public benefits. The focuses of such review are the 
safety and controllabil ity of products and services, including the risks in illegal control, interference 
and interrupted operation of products and in illegal collection of the user information by the product 
provider etc. Since safety review is not carried out for any specific country and region, there is no 
difference in nationality. Considering that the Office of the Central Cyberspace Affairs Commission 
takes the lead in such review, it is recommended that the replies of the Office of the Central 
Cyberspace Affairs Commission  shall prevail.  
Page 154, paragraph s 4.141 -4.142  
Requirements stemming from China's Cybersecurity Law, in particular those in the pending 
"Measures on the Security Assessment of Cross -Border Transfer of Personal Information and 
Important Data" and the "Draft National Standard Guidelines for Data Cross -border Transfer Security 
Assessment", would require foreign companies to conduct security assessments when transferring 
"important data" abroad. The draft Measures extend the scope of the data localisation  and security 
assessment obligations beyond the Cybersecurity Law which only obliges critical information 
infrastructure to localise data in China. In addition, the draft guidelines contain an extensive and 
open-ended list of "important data" to be localis ed in China. Consequently, the rules would apply to 
network operators in services sectors in which China took full or partial GATS market access or 
national treatment commitments, and it will put foreign companies in a de facto less competitive 
situation w hen compared to domestic operators in China. Such foreign companies will need to bear 
an additional burden that domestic companies in China would not, since they would typically not 
need to transfer "important data" overseas.  WT/TPR/M/3 75/Add.1  
 
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  Question 112  
How does China re concile the effects of these measures with its GATS commitments, in particular 
concerning the dispositions in Article VI paragraph 5 and Article XXIII paragraph 3 of the GATS on 
measures causing the nullification or impairment of commitments?  
Reply  
The sup ervision made by the members of WTO on the cross -border information flow is the necessary 
guarantee for sustainable and health development of E -commerce, and is also a conventional 
practice for such members to realize national policy goals. Under full cons ideration of the demands 
of economic globalization for cross -border data flow, for balancing and maintaining network safety 
and for guaranteeing data flow and usage, such members have the right to formulate relevant laws 
and administrative regulations as p er the practical conditions of the Country by reference to the 
international practice and manage the network by laws. Formulation and implementation of 
Cybersecurity Law of the People's Republic of China and its supporting regulations aim at maintaining 
the sovereignty of the national cyberspace, national security and social public benefits, protecting 
the rights and interests of the citizens, legal persons and other organizations rather than limiting 
entry of foreign enterprises, techniques and products in  the Chinese market, or orderly and free flow 
of the data by laws, so the commitment under the framework of GATS will not be affected. China 
wishes to exchange and cooperate with such members, to promote orderly cross -border data flow 
by laws jointly, so a s to drive inclusive growth of the trade under the precondition of fully 
guaranteeing the safety of both the personal information and national network.  
4.4.2 Financial services , 4.4.2.2  Regulatory developments for banking services , page 157, 
paragraph 4.155  
The report notes the phased removal of foreign ownership caps in the securities sector.  
Question 113  
Can China provide further detail regarding the implementation of reforms for foreign equity caps in 
the financial sector which were announced in Nov ember 2017 and further stated in March 2018, 
especially for futures and asset management?  
Reply  
on 28 June 2018, Special Management Measures (Negative List) for the Access of Foreign Investment 
(2018) are announced jointly by the National Development and R eform Commission and the Ministry 
of Commerce of the People's Republic of China, and such Measures will take effect since 28 July 2018. 
In the field of finance, the restrictions on stock's proportion of foreign investment in the banking 
industry will be ca ncelled; the stock's proportion of foreign investment of the securities company, 
fund management companies, futures companies and life insurance companies will be broadened to 
51%; all the restrictions on the stock's proportion of foreign investment in the  field of finance will 
be cancelled in 2021.  
4.4.2.3 Regulatory developments for insurance services , p age 158, 
paragraph s 4.161 -4.162  
Reference is made to recent developments regarding insurance services.  
Question 114  
For the insurance sector, what is the  specific process foreign companies must follow for licensing? 
Are the licen ce requests evaluated on a first come, first served basis, with a maximum time for a 
justified answer (positive or negative) by Chinese authorities?  
Reply  
For the material and pro cedures for the application, please refer to the online service hall of the 
official website of China Banking and Insurance Regulatory Commission (CBIRC), namely Guidelines WT/TPR/M/3 75/Add.1  
 
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  on Administrative Licensing. The CBIRC implement preliminary examination on foreign  invested 
insurance companies. The decisions of either acceptation or rejection will be made within six months 
since complete files for the application are received.  
4.4.2.4 Regulatory developments for stock markets , p ages 158-159, 
paragraph s 4.164 -4.167  
In addition to the developments described in this section, reference is made to other recent 
announcements and developments.  
Questions 115 -119 
• What can be done to encourage increased participation by foreign institutional investors which 
can help to stabil ise the Chinese market and improve capital market efficiency? Can the China 
Securities Regulatory Commission (CSRC) offer Qualified Foreign Institutional Investor (QFII) 
and RMB Qualified Foreign Institutional Investor (RQFII) investors the option to buy a nd sell 
through more than a single broker for each exchange so as to better ensure best execution?  
• At the Boao Forum in April 2018, the Governor of the People 's Bank of China, Governor Yi 
Gang, committed to launch the London -Shanghai Stock Connect before the end of 2018. How 
will China ensure there won't  be any restrictions that lead to one -way cross -border capital 
flow? Will there be any quota limit on the dail y trading volume?  
• At the Boao Forum in April 2018, Governor Yi Gang of the People 's Bank of China announced 
that financial sector opening -up will go in tandem with the progress of exchange rate regime 
reform and capital account convertibility. Can China pr ovide further detail for progressing 
exchange rate regime reform and capital account convertibility?  
Reply  
The People's Bank of China will keep perfecting the formation mechanism for marketization of 
RMB exchange rate, enhancing the elasticity of RMB exchange rate and maintaining the basic 
stability of RMB exchange rate under a reasonable and balanced level. Two -way open of the foreign 
exchange market will be pushed forward, to enhance both the breadth and  depth of the foreign 
exchange market. Besides, the risk education for exchange rate of the enterprises and residents 
shall be intensified, to guide the microcosmic body to foster a neutral idea of finance. Moreover, the 
macro -prudent policy framework for cross-border capital flow shall be further optimized, for counter -
cyclical regulation of such flow, to improve the policy transparency, so as to tackle the possible risks 
in such flow in a more market -orientated manner, thus maintaining the financial stabi lity.  
Question  
• At the Boao Forum in April 2018, Governor Yi Gang of the People 's Bank of China announced 
that China will follow the principle of pre -establishment national treatment (PENT) and 
negative list for opening up in the financial services sector.  Can China clarify the implication 
of the principle of PENT and negative list to financial services opening -up? 
Reply  
Finance is in essence a competitive service industry. Competition is reflected in the fact that finance 
is diversified, and that many inst itutions provide financial services. Most of the financial services 
required in the market can be provided through market mechanisms, thus the introduction of 
competition is a must. Further, competition inevitably leads to the opening up, and it is necessa ry 
to open internally and externally. We believe that through competition, the financial industry in 
China can provide better services. The better the financial services, the better and more efficient 
the entire economy will be. Therefore, whether it be do mestic or foreign fund, as long as it can 
improve the financial services, we will encourage its introduction to China. We will adhere to the 
opening up principle of pre -establishment national treatment and negative list, and treat market 
players of various  kinds equally. They can enter the Chinese market based on law and compete with 
others under the same condition.  WT/TPR/M/3 75/Add.1  
 
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  Question  
• In July 2017, a Bond Connect scheme between China and Hong Kong , China  was launched. 
The scheme is designed to provide mutual market a ccess, however, only northbound trading 
commenced. It is said that southbound trading will be explored at a later stage. Can China 
disclose its timeline on when to commence southbound trading?  
Reply  
China is still working on it.  
4.4.4 Accounting, auditing and bookkeeping services , page 163, paragraph 4.192  
Question 120   
Can China confirm there are no market access restrictions on accounting, auditing and bookkeeping 
services provided by natural persons such as limitations on the number of persons employed, 
economic needs tests, labour market tests or quota other than those allowed by the horizontal 
commitments included in China's GATS schedule?  
Reply  
according to the commitment made by China during entering the WTO, under the accounting, 
auditing and bookke eping services (CPC862), no other commitment will be made for presence of 
natural persons except for those in horizontal commitments.  
Report by China  - WT/TPR/G/375  
2 NEW ERA, NEW THOUGHT AND NEW VISION   
Page 3, paragraph 2.2  
China states that its status as the world's largest developing country has not changed.  
Question 121   
Could China elaborate which provisions of Special and Differential Treatment throughout the WTO 
Agreements it makes use of and indicate the reasons?   
Reply  
China reserves the right to enjoy the special and differential treatment. Just like other developing 
countries, China is still confronted with unreasonable economic structure, unbalanced regional 
development, low social governance level and lagging s ocial security system etc., so the international 
position of China as the largest developing country in this world is unchanged. Consequently, it is 
impossible for China to shoulder the same or similar responsibilities as the developed members.  
However, China never shifts its international responsibilities which shall be performed. In fact, China 
is always shouldering the responsibilities in line with its development level and practical capabilities 
in negotiations of WTO and governance of the global econ omy. China plays a constructive role in 
reaching an agreement for topics such as trade convenience and export competition of agriculture 
etc. Meanwhile, China is actively pushing forward the progress of multilateral trade liberalization and 
is an important  contributor for enlarged negotiations on  Information Technology Agreement  (ITA).  
In the next stage, with the constant enhancement in the economic strength of China, China will keep 
playing its role as a responsible great power, to actively participate in  reform and construction of 
the global governance system, so as to make constant contributions by virtue of its wisdom and 
strength. China wishes to endeavour  to create a more favourable  policy environment and framework 
for development of developing member s with all other members, to make active contributions to 
achieve the goal for sustainable development formulated by UN.  WT/TPR/M/3 75/Add.1  
 
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  Page 3, paragraph 2.4  
China's  report confirms China's  commitment to deepening reform, including ensuring that the market 
plays the dec isive role in resource allocation. Further, it states that China is committed to advancing 
law-based governance and further reforming the judicial system.  
Questions  122-125  
• During the period under review, there are reports that state -owned enterprises in  China have 
become more consolidated and influential, and that the Chinese Communist Party (CCP) has 
increased its influence over the private sector through, for example, the development of Party 
cells in private enterprises. How does China consider this b eing conducive to allowing the 
market to play a decisive role and to creating an attractive, fair investment environment?  
Reply  
1. This practice is in line with China's laws and relevant regulations.  
 
2. The establishment of party organizations conforms to the w ishes of enterprise employees.  
  
3. It is conducive to promoting the development of production and management of enterprises.  
 
4. In practice, the enterprise -based Party organizations organically integrate their activities with 
the production and operation of th eir enterprises, thus offering strong support for the healthy 
development of the enterprises.  
Question  
• What role will the Fair Competition Review System (FCRS) play in the context of deepening 
reform and in particular with respect to enforcement of the An ti-Monopoly Law (AML) towards 
public undertakings and administrative monopolies?  
Reply  
In June  2016, China issued guidelines on establishing a fair competition review mechanism for the 
market system, which requires governments and their institutions to conduct fair competition review 
when formulating policies and measures and avoid adopting policies or measures that eliminate or 
stifle competition, so as to safeguard a unified, open and competitive market system nationwide.  
Question  
• Will this lead to the introduction of some form of control of subsidies and more transparency 
in the financial relations between the State and public undertakings as well as within such 
public undertakings with a view to 'properly handle the relationship b etween the government 
and the market '?  
Reply  
In recent years, the central government has continuously been promoting the integration of the 
sources of special transfer payment budgeting. We will explore from 2017 the implementation of the 
Major Special Pr ojects + Task List management method, to further increase the source integration 
of agriculture -related funds, and to reduce the number of special transfer payments related to 
agriculture.  
• After ten years of enforcement of the AML and a profound administr ative re -organisation, is 
China planning an update of its AML in the foreseeable future which would lead to further 
developing procedural fairness rules using best international practices as a yardstick?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In 2018, in accordance with the requirements o f the State Council's institutional reform "on 
strengthening and optimizing the government's anti -monopoly functions", the responsibilities of 
National Development and Reform Commission in price supervision and inspection and 
anti-monopoly law enforcement,  the responsibilities of the Ministry of Commerce in anti -monopoly 
law enforcement over concentration of undertakings and the responsibilities of the Office of the Anti -
monopoly Committee of the State Council have been integrated into State Administration for Market 
Regulation which will be in charge of uniform anti -monopoly law enforcement. This institutional 
reform is conducive to promoting the unity and authority of anti -monopoly law enforcement. State 
Administration for Market Regulation will strengthen  anti-monopoly law enforcement, protect fair 
market competition, safeguard the rights and interests of consumer, and promote sustained and 
healthy economic development.  
3.1 Setting new mechanisms for sustainable trade development , page 4, paragraph 3.3  
Since the last review, China states it has further simplified import administration procedures and 
lowered import tariffs.  
Question 126  
Can China provide more details about the simplification of import administration procedures on 
agricultural and food produ cts?  
Reply  
China is boosting the construction of Single Window to provide the facilitation services for the import 
enterprises, including the enterprises importing agricultural products, and to shorten the process 
and time for declaration and approval. At  the beginning, enterprises needed to apply to each 
competent  department for relevant items respectively, but now the one -stop internet examination 
and approval have been realized gradually.  
3.2 Creating more attractive investment environment , page 5, para graph 3.10  
China states that the State Council released two Circulars in 2017 with the objective, inter alia , to 
"promote domestic and foreign enterprises to compete on an equal footing".  
Question 127   
Could China provide more information on the measures it has put in place or intends to put in place 
following these Circulars in order to achieve the objective of fair competition between domestic and 
foreign enterprises?  
Reply  
Various departments attach great importance to the Circular  issued, and active pr ogress is achieved 
in the work implemented. With regard to promoting fair competition, numerous policies and 
measures are introduced. For instance, the Guidance for Capital of Industrial Transformation and 
Upgrading in 2017 (Made in China 2025)  is issued b y the Ministry of Industry and Information 
Technology of the People's Republic of China, to clearly specify that the enterprises incorporated in 
China have the right to declare; the Tentative Methods for Review and Approval and Supervision of 
Accounting Fi rms are actively modified by the Ministry of Finance of the People's Republic of China, 
and the foreigners are allowed to serve as the partners/shareholders of accounting firms in China; 
the Guidelines for Foreign -funded Enterprises Participation in Standa rdization Interaction in China  
are issued by Standardization Administration of the People's Republic of China.   
Page 6 -7, paragraph s 3.14 - 3.15 
Reference is made to the last revision of the Catalogue for the Guidance of Foreign Investment 
Industries.  WT/TPR/M/3 75/Add.1  
 
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  Question 128   
Could China indicate a timeline for further liberalising services and non -services sectors, in particular 
the manufacturing and financial sectors?  
Reply  
On 28 June 2018, Special Management Measures (Negative List) for the Access of Foreign 
Investment (2018)  are announced jointly by the National Development and Reform Commission and 
the Ministry of Commerce of the People's Republic of China, and such Measures will take effect from 
28 July 2018. In total, open measures are launched in 22 fields,  and the restrictive measures are 
reduced to 48, nearly one fourth. It is worth mentioning in particular that the restrictions of foreign 
investment are reduced significantly in some fields to which great importance is attached by the 
investor in combinati on with the development level of domestic industries. In the field of finance, 
the restrictions on stock's proportion of foreign investment in the banking industry are cancelled; 
the stock's proportion of foreign investment of the securities company, fund management 
companies, futures companies and life insurance companies is broadened to 51%; all the restrictions 
on the stock's proportion of foreign investment in the field of finance are cancelled in 2021.  In the 
field of manufacturing industry, the restri ctions on stock's proportion of foreign investment of special 
vehicles and new energy vehicles in the automobile industry are cancelled, and the restrictions on 
stock's proportion of foreign investment of commercial vehicles will be cancelled in 2020. More over, 
the restrictions on stock's proportion of foreign investment of passenger vehicles will be cancelled 
in 2022 as well as the restriction that at least two joint ventures. In addition, restrictions in fields 
such as ships, aircraft design, manufacturin g and maintenance etc. will be cancelled, basically 
forming a full open momentum in the whole industry.   
3.4 Strengthening the protection of intellectual property rights , page 8, paragraph 3.23  
China describes the coordination work of the National Leading Group on Fight against IPR 
Infringement and Counterfeiting.  
Questions 129 -130  
• Will the National Leading Group maintain the same functions after the creation of the new 
enforcement agency (the General Administration of Market Regulation, GAMR)?  
Reply  
Since the institutional restructuring in China is not completed yet, the functions cannot be 
determined finally.  
Question  
• Which resources will GAMR allocate to IPR enforcement?  
Reply  
This institutional restructuring is now under progress, and it is clearly specified in the restructuring 
scheme that the responsibilities of State Intellectual Property Office, the responsibilities for 
trademark management of the State Administration for In dustry & Commerce of the People's 
Republic of China and the responsibilities for management of geographic indications for the country 
of origin of the General Administration of Quality Supervision, Inspection and Quarantine of the 
People's Republic of Chin a shall be integrated, to re -built the State Intellectual Property Office. The 
more detailed restructuring scheme concerning institution, responsibilities, working coordination and 
local reform etc. is not issued yet, so the specific work needs to be furth er determined after the 
functional configuration and institution settings of the State Intellectual Property Office re -built are 
determined.  
Page 9, paragraph 3.26  
The paragraph  summarise s recent legislative developments.  WT/TPR/M/3 75/Add.1  
 
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  Questions  131-132  
• Does China consider that this amendment sufficiently covers the particularities of trade 
secrets?  
Reply  
The Law of the People's Republic of China Against Unfair Competition  is revised, and some of the 
contents concerning business secret are modified, thus  perfecting the protection system for business 
secret. Specifically, firstly, the concept of business secrete is re -defined.  
Secondly, as for the methods infringing business secrete, the method of fraud is added. Thirdly, the 
scope of main body infringing  business secrete is expanded; fourthly, the administrative punishment 
for those infringing business secrete is intensified.  
The Chinese government values the protection of business secrete, and will try hard to perfect the 
protection system for business secrete.  
Question  
• Does this amendment to the law against unfair competition exclude that China will adopt a 
stand -alone law on trade secrets in the future?  
Reply  
This possibility cannot be ruled out at present, and China will conduct an assessment based on future 
developments.  
Page 9, paragraph 3.30  
The paragraph summarises law enforcement efforts for IPR protection.   
Question 133  
In view of the significant differences of enforcement activities of administrative authorities at 
provincial level, does China  envisage to supervise closer and/or harmonise the approach to 
administrative enforcement at provincial level ?  
Reply  
The institutional restructuring is in progress. The plan states that the responsibilities of the State 
Intellectual Property Office(SIPO),  the responsibilities of trademark administration of the State 
Administration for Industry and Commerce(SAIC), the administrative responsibility of geographical 
indications for origins of the Administration of Quality Supervision, Inspection, and Quarantin e 
(AQSIQ) will be integrated and SIPO will be restructured. More detailed plans for institutions, 
responsibilities, work coordination, and local reforms have not yet been announced. The specific 
work needs to be further clarified after the re -establishment  of the functional configuration and 
internal institutions of SIPO.  
4.2 Firmly safeguarding the multilateral trading system and striving to contribute Chinese 
wisdom and strength , page 12, paragraph 4.7  
China calls on all WTO members to stay committed to the basic principles of the WTO, including 
transparency. The EU notes that the Working Party Report accompanying China's  Protocol of 
Accession to the WTO (WT/ACC/CHN/49 paragraph 334) includes a commitmen t by China to make 
available to WTO Members translations into one or more of the official languages of the WTO all 
laws, regulations and other measures pertaining to or affecting trade in goods, services, TRIPS or 
the control of forex, and to the maximum e xtent possible would make these laws, regulations and 
other measures available before they were implemented or enforced, but in no case later than 
90 days after they were implemented or enforced.   WT/TPR/M/3 75/Add.1  
 
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  Question 134   
Can China provide an update on implementation  of this commitment, including the institutional 
arrangements to facilitate implementation?   
Reply  
The National People's Congress publishes the English version of Laws of t he People's Republic of 
China. In February 2003, the General Office of the State Cou ncil issued the Notice on the 
Examination and Approval of English Translation of Regulations. The translations are made public 
upon examination and approval. In March 2015, the General Office of the State Council further 
issued the Notice on Enhancing the Work of Translating Trade -related Departmental Rules into 
English, requiring that English translation of Department Rules should be made publicly available to 
the extent possible through official website of government departments or other channels.  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , page 17, paragraph 5.3  
China states in the report that it is promoting innovation, new technologies and industries.  
Question 135   
Could China elaborate on the incentives it uses to implement these goals?  
Reply  
Please refer to the subsidy notification submitted by the Chinese government. China will further 
optimize the ecological environment for innovation and venture, focus on promoting the reforms to 
delegate p ower, streamline administration and optimize government services, construct a prudential 
supervision mechanism for inclusive innovation, and effectively promote the transformation of 
government functions; further expand the coverage of innovation and ventu re, strive to promote 
more diversified innovation and venture groups, give play to the leading role of large enterprises, 
research institutes and colleges and universities, and effectively promote the financing and 
development of various market entities; f urther enhance the scientific and technological contents of 
innovation and venture, focus on exerting the creative potential of professionals, technical talents 
and high -skilled talents, strengthen the organic linkage between fundamental research and appli ed 
technology research, accelerate the transformation of scientific and technological achievements into 
productivity, and effectively promote the vigorous development of innovative venture.  
Page 17, paragraph 5.4  
China states it has scaled down overcapacity through market -oriented, law -based measures in the 
steel and coal sectors.  China points to its "tremendous efforts [] that enterprise debts were properly 
handled".  
Questions 136 -138  
• Could China please explain how the debts of the enterprises in question were 'properly 
handled'? How was debt restructuring dealt with?  
Reply  
The Chinese government attaches great importance to the debt problems. In order to properly solve 
the debt problems of the enterprises, the Chinese government issued the Opinions of the State 
Council on Actively and Stably Reducing the Corporate Leverage Ratio  in 2016, proposing to actively 
and stably reduce the corporate leverage ratio by means of merger and restructuring, market -
oriented debt -to-equity swaps, revitalizin g stock assets, optimizing debt structure, strengthening 
self-control of the enterprises, developing equity financing and bankruptcy according to law. These 
measures are generally divided into three categories. One is that the zombie enterprises or ineffic ient 
entities exit mainly through legal bankruptcy, merger and acquisition to clear the debts; another is 
to reduce the leverage ratio for the enterprises having development prospects but encountering WT/TPR/M/3 75/Add.1  
 
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  difficulties temporarily by means of market -oriented de bt-to-equity swaps, optimizing debt structure 
and revitalizing stock assets; the last one refers to long -term measures for all enterprises, mainly 
to improve corporate governance, strengthen self -control and develop equity financing.  
In the process of gui ding relevant market entities to decrease the debt problems of the enterprise 
sector through the above measures, the most important thing is to abide by the market -oriented 
and legislation -based principle, let the market play a decisive role in resource al location, and 
negotiate between the market entities to achieve related transactions to reduce leverage and 
promote the survival of the fittest.  
Question  
• Could China explain how this scaling down has been effected in proportion between state 
owned enterpri ses and privately owned enterprises?  
Reply  
To solve the problem of excessive steel production, we should adhere to the principles of 
marketization and legalization. In the process, we have not distinguished the types of enterprises 
such as state -owned ent erprises, private enterprises and joint -stock enterprises.  
• What is the breakdown between capacity increases and capacity reductions during these 
periods?  
Reply  
China has overcapacity in a few industries such as steel and coal, and has been working hard to 
effectively resolve overcapacity.  
From 2016 to 2020, China plans to reduce the crude steel production capacity by 
100-150 million  tonnes. Adhering to the principles of marketization and rule of law, it actively and 
steadily resolves excess steel production  capacity by withdrawing backward production capacity and 
guiding the initiative to withdraw production capacity according to relevant laws and regulations. At 
the same time, new capacity is strictly controlled, and the capacity swap policy is strictly enf orced. 
It is strictly forbidden to increase production capacity due to violations of laws and regulations. With 
the joint efforts of all parties in the country, in 2016, it reduced the crude steel production capacity 
by more than 65 million tonnes. In 2017 , the crude steel production capacity was reduced by more 
than 55 million tonnes. The lower limit of five years was exceeded in advance, and it decides to 
reduce the crude steel production capacity by about 30 million tonnes this year.  
Electrolytic alumini um. The electrolytic aluminium industry mainly relies on the approaches of 
marketization and rule of law to resolve overcapacity. The key point is to strictly control the newly 
added production capacity. It is required to implement capacity swap for the co nstruction of 
electrolytic aluminium projects, and it is strictly forbidden to add new capacity due to violations of 
laws and regulations. The electrolytic aluminium industry has not set a target for reducing production 
capacity.  
Coal. The Chinese governme nt attaches great importance to the work of resolving the excess 
capacity of coal. In 2016, the State Council formulated and issued the Guidelines on Addressing 
Overcapacity in the Coal Industry , and made comprehensive arrangements for resolving the 
overca pacity of coal. The guidelines clearly specify that, from 2016, with three  to five years, the 
production capacity will be reduced by approximately 500 million tonnes, further reductions of 
500 million tonnes will be achieved through a restructuring and mer gers process. The coal production 
capacity will be compressed to a large extent, and the number of coal mines will be reduced 
moderately. The overcapacity in the coal industry will be effectively resolved, and the market supply 
and demand will be basically  balanced. The industrial structure will be optimized, and substantial 
progress will be made in transformation and upgrading. In the past two years, the total coal 
production capacity has been reduced by 540 million tonnes, including 290 million tonnes in 2016 
and 250 million tonnes in 2017.  WT/TPR/M/3 75/Add.1  
 
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  Shipbuilding. In order to actively and effectively resolve the contradiction of overcapacity in 
shipbuilding and other industries, in 2013, the State Council issued the Guidance Opinions on 
Resolving Serious Production Overcapacity Conflicts  (GF [2013] No. 41), which set clear 
requirements for the shipbuilding industry to resolve overcapacity. It is strictly forbidden to build 
new capacity projects. All local governments and all departments shall not approve or record ne w 
capacity projects in any name or in any way.  
Coal-fired power. In August 2017, 16 ministries including the National Development and Reform 
Commission(NDRC) and the National Energy Administration jointly issued the Guidelines on 
Promoting the Supply -side Restructuring to Prevent and Resolve the Risk of Overcapacity of Coal -
fired Power Production  (FGNY  [2017] No. 1404). It is proposed that by 2020, the total installed 
capacity of coal -fired generators will be controlled within 1.1 billion kW.  
Page 17, parag raph 5.4  
China has pressed ahead with restructuring its government institutions.  
Question 139   
Could China please explain the role of the newly established State Market Regulatory Administration 
set up by the State Council?  
Reply  
The main duties of the State Administration for Market Regulation are to take charge of 
comprehensive market supervision and management, to uniformly register market entities and 
establish an information publication and sharing mechanism, to organize compr ehensive law 
enforcement of market supervision, to undertake unified anti -monopoly law enforcement, to 
standardize and maintain market order, and to organize and implement quality power strategies, 
and to take charge of industrial product quality and safet y, food safety, special equipment safety 
supervision, unified management measurement standard, inspection and testing, certification and 
recognition.  
5.3 Advancing modernization of the system and capacity for governance , page 20, 
paragraph 5.20 
In 2016, China issued guidelines on establishing a fair competition review mechanism for the market 
system, which requires governments and their institutions to conduct fair competition review when 
formulating policies.  
Questions  140-142  
• Following the reorganisation referred to in 5.11 -5.12, what will the enforcement structure 
responsible for the FCRS look like?  
• Will the FCRS be used to develop subsidies control?  
• Will the FCRS lead to laws and regulations, including the AML, be applied in discriminately to 
State Owned Enterprises, Private Enterprises and Foreign Invested Enterprises (FIE)?  
Reply 140 -142 
In order to further standardize related behaviours  of the government and prevent the introduction 
of policies and measures to eliminate and  restrict competition, the State Council issued the Opinions 
on Establishing a Fair Competition Review System During the Development of Market -Oriented 
System  (GF [2016] ] No. 34) in June 2016 to require each local government and its subordinate 
department s to conduct fair competition review on relevant policies and measures during formulation 
in accordance with the fair competition review standards to avoid problems of exclusion and 
restriction of competition.  WT/TPR/M/3 75/Add.1  
 
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  6 THE WAY FORWARD   
Page 22, paragraph 22 
China explains in the report that it will continue to encourage normal technology exchanges and 
cooperation between Chinese and foreign enterprises.  
Question 143   
What tools does China use for encouraging this?  
Reply  
First, China strengthens intellectual property rights (IPR) protection, through improving and 
increasing law enforcement forces; second, it encourages competition, opposes monopoly and abuse 
of intellectual property rights, and creates a technical trading environment that is fair, reasonable, 
efficient, and encourages innovation; third, it actively builds a platform for technical exchanges and 
cooperation, and encourages Chinese and foreign companies to actively carry out technical 
information exchange and business cooperation by participating in China (Shanghai) International 
Technology import and export Fair  (CSITF) and China International Import Expo  (CIIE).  
Other questions  
1. Shipbuilding sector   
The EU understands that China's shipbuilding output increased last year by 2.4m DWT to 38.5m  DWT 
although profit and revenue declined. The EU understands that China operates at only around 62% 
capacity utilisation although last year its output exceeded that of any other country with some 41.9% 
of global shi p completions.  
Further, the EU understands t hat although the total number of shipyards active in China has declined, 
the average size of yards has increased and that the larger shipyards still receive considerable 
financial support, so that overall capacity has not actually declined.  
Questions 144-150  
• Can China confirm if these statistics and observations are correct? If not, please provide the 
correct figures.  
Reply  
In 2017, the accomplished shipbuilding output, the new orders, and the hand -held orders accounted 
for 41.9%, 45.5% and 44.6% of the global amount respectively. According to the data released by 
the China Association of the National Shipbuilding Industry, China's  CCI was 678 in 2017, with a 
year-on-year increase of 11.3%.  
Question  
• What if any capacity and employment reduction targets have China's authorities set for this 
sector and what effects have they had to date?  
Reply  
China has not set any capacity and employment reduction targets for the shipbuilding industry.  
Question  
• What kind of state assistance and/or incentives will be provided to firms/yards in the 
shipbuilding sector in light of the Shipbuilding Action Plan (20162020) and Made in China 
2025? Will these include access to capital on below -market rates or preferential terms?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
The action plan is a directive and guiding plan with no national support for the shipbuilding industry.  
• Will any such assistance be available on equal terms to FIEs and foreign owned companies in 
China?  
Reply  
Coal-fired power. In August 2017, 16 ministrie s and commissions, including the National 
Development and Reform Commission and the National Energy Administration, jointly issued the 
Opinions on Promoting Supply -Side Structural Reform to Prevent and Resolve the Excess capacity 
of Coal -Fired Power Produc tion (FGNY [2017] No. 1404), to propose the control of national coal -fired 
power installed capacity within 1.1 billion kilowatts by 2020.  Relevant measures are equally 
applicable to domestic and foreign -funded enterprises. Please refer to the subsidy notif ication 
submitted by the Chinese government.  
The EU would appreciate more information about China's Shipbuilding Scrappage and Newbuilding 
Subsidy Scheme:  
Question  
• As this programme was scheduled to end in late 2017, can China confirm if it has been 
terminated (if so, please provide the relevant legal act and date of termination).  
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
Question  
• What scrappage and/or newbuilding incentives does China offer now?  
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
Question  
• Does China intend to continue promoting the use of local content in the shipbuilding sector 
and if so, can China explain the reason?  
Reply  
Please refer to the subsidy notification for the year 2015 -2016 to be submitted by China . 
2. Aluminium sector   
The EU refers to paragraph 1.30 of the Secretariat's report which states that China has overcapacity 
in its aluminium sector, among others.  The EU understands that China's primary aluminium capacity 
has grown by around 10% every year since 2011, apart from 2015 when it grew by around 25%. 
Overall capacity growth since 2011 has been some 92% so that China now represents well over 50% 
of global primary  capacity and production. During the same period EU primary capacity has declined 
by 22% and US primary capacity by 47%.  
Questions  151-155  
• Can China confirm if these statistics are correct?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The raw aluminium  capacity data listed by the EU is not the  statistical production data of China. The 
raw aluminium  capacity data collected by our statistical department is as follows:  
Year 2011  2012  2013  2014  2015  2016  
Primary Aluminium  Capacity (10KT)  2394 2781 3122 3549 3702 3744 
Question  
• Does China still have overcapacity in the primary aluminium sector and if so to what extent 
and in what segments? What is the percentage of capacity utilisation?   
Reply  
The electrolytic aluminium industry mainly relies on the approaches of marketization and rule of law 
to resolve overcapacity. The key point is to strictly control the newly added production capacity. It 
is required to implement capacity swap for the construction of electrolytic aluminium projects, and 
it is strictly forbidden to add new capacity due to viola tions of laws and regulations. The electrolytic 
aluminium industry has not set a target for reducing production capacity.  
Question  
• What if any capacity and employment reduction targets have China's authorities set for this 
sector, how are they enforced and  what effects have they had to date?  
Reply  
The electrolytic aluminium industry mainly relies on the approaches of marketization and rule of law 
to resolve overcapacity. The key point is to strictly control the newly added production capacity. It 
is require d to implement capacity swap for the construction of electrolytic aluminium projects, and 
it is strictly forbidden to add new capacity due to violations of laws and regulations. The electrolytic 
aluminium industry has not set a target for reducing producti on capacity.  
Question  
• Does China propose to reduce overall capacity, or simply to consolidate?  
Reply  
The electrolytic aluminium industry mainly relies on the approaches of marketization and rule of law 
to resolve overcapacity. The key point is to strictly  control the newly added production capacity. It 
is required to implement capacity swap for the construction of electrolytic aluminium projects, and 
it is strictly forbidden to add new capacity due to violations of laws and regulations. The electrolytic 
aluminium industry has not set a target for reducing production capacity.  
Question  
• Where have these plans been published and what independent, verifiable evidence is available 
regarding their implementation?   
Reply  
No capacity and employment reduction target s are set for the electrolytic aluminum industry.  
Although the total number of smelters active in China has declined, their average size is now much 
larger as overall capacity has increased for any year since at least 2011. How is this consistent with 
the statement in paragraph 2.44 of the Secretariat's report that investment in projects that will 
increase capacity in certain sectors including aluminium, steel and shipbuilding is prohibited? The 
EU refers also to China's answer a question from Brazil in th e 2016 TPR (WTO document WT/TPR/M/3 75/Add.1  
 
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  WT/TPR/M/342/Add.1 page 49) which stated that "the Guiding Opinions (Guo Ban Fa [2016] No. 42) 
requires that efforts be made to ensure the exit and disposal of excess capacity according to laws 
and regulations, and guide the transf er and exit of uncompetitive capacity". What capacity has been 
disposed of under this instrument and how is this consistent with an overall increase of 
10% per year?  
Reply  
No restriction is applied for investment in the electrolytic aluminium  industry. To strictly control the 
newly -increased production capacity of electrolytic aluminium , it is required to implement capacity 
replacement for new electrolytic aluminium  projects. In 2016, the document Guobanfa No. 42 
proposed to encourage qualifie d enterprises to adjust their development strategies in a timely 
manner, actively reduce stock capacity and withdraw some inefficient capacity. The withdrawn 
capacity can be used for trans -enterprise and trans -regional capacity replacement.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  EUROPEAN UNION – FOLLOW -UP 
Report by the Secretariat - WT/TPR/S/375  
1.2 Recent economic developments , page 18, paragraph 1.5 and page 89, paragraph  3.187  
The paragraph states that according to the authorities "all enterprises, regardless of ownership, are 
treated equally and that there are no specific subsidies to SOEs; all enterprises are entitled to receive 
subsidies if certain requirements are met" . In contrast, details of financial support to SOEs are given 
on page 89, paragraph 3.187, stating that " In 2016, ar ound 3,000 companies [] received 
government support, totalling RMB 123.215 billion (up from RMB 89.421 billon in 2014). Seven of 
the top 10 companies that received support in 2016 were SOEs [] Companies that received financial 
support are mainly from chemi cal, automobile, excavation, and steel industries".  
Initial Question 7 7 
What was the nature and purpose of the payments made?   
Reply  
We don't have special subsidies for SOEs. The subsidy isn't granted according to ownership, but is 
applicable for enterpri ses of all kinds of ownership. As for the conditions for subsidy application, 
please refer to the subsidy notification submitted by the Chinese government.  
China submitted the notification according to subsidy policies, but the projects mentioned in the 
Secretariat report are mostly collected from individual enterprises, so they don't match one by one. 
In other words, multiple subsidies for an enterprise may come from the same subsidy policy, and 
subsidies for different enterprises may also come from the sa me subsidy policy. Based on the 
information we have, the subsidies received by many iron and steel companies are mostly not 
specific, such as air pollution control subsidy. But to reflect transparency, China has included them 
in the subsidy notification we  submitted.   
Follow -up question   
In its reply China states that the subsidies received by many iron and steel companies are mostly 
not specific  (emphasis added). Could China please provide details of those which are specific?   
Reply  
After nearly 40 years reform and development, China has gradually achieved the separation of 
government from enterprises and the separation of governments public administration functions 
from its funding role in relation to state -owned assets. Chinese laws  and government regulators see 
all enterprises with different ownerships as equals ; and state -owned enterprises have become 
independent market players. Currently, the assets of most central government -owned enterprises 
concentrate in companies listed on st ock markets; and most of their profit is derived from operating 
revenues, appreciation of their capital and proceeds of their investment, while their incremental 
benefits are derived from market expansion, technological innovation and management 
improvemen t. At present, Chinese laws and regulations do not provide for any subsidies specific to 
SOEs, which do not enjoy any subsidies based on their ownership.   
Page 18, paragraph 1.6 and Box 1.1  
According to the Secretariat report, China considers that the benefits and the trade potential of the 
belt and road initiative (BRI) are enormous.   
Initial Question 10  
Could China provide information on the share of BRI projects realised by SMEs?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The BRI is an open and inclusive initiative which acts in accord ance with the laws of the market, and 
specific projects are implemented through enterprises. It follows market rules and established 
international rules, and we welcome equal participation by enterprises of all types. The Chinese 
government will focus on p roviding a fair and transparent business environment, favourable  
investment policies and legal guarantee, support and guide more domestic and foreign enterprises 
to actively participate in the BRI, promote the smooth implementation of relevant projects, an d 
enable more results of mutual beneficial and win -win cooperation to benefit the people of all 
countries at an earlier date.  
Follow -up question  
Could China provide information on the share of BRI projects realised by SMEs, or if such information 
is not a vailable, indicate the reasons for this?   
Reply  
The BRI projects are studied, established and implemented according to market principles. We have 
not required SMEs to submit their information on participating in the BRI international projects; nor 
have we collected such information. So the information d emanded is not available now.  
1.2.2 Fiscal policy and reform , page 21, paragraph 1.20  
The report notes that local government financing vehicles continue to borrow heavily and that the 
Chinese authorities are increasingly setting up Government Guided Funds (GGFs) and Special 
Construction Funds (SCFs) to fund public infrastructure.  
Initial Q uestion 12  
Could China provide a list of all existing central and provincial Government Guided Funds (GGFs) 
and Special Construction Funds (SCFs), indicating the legal basis/administrative measure by which 
they were set up, the shareholders/contributors, a s well as the size of the individual funds and the 
projects financed?  
Reply  
GGF refers to the private equity investment fund invested by the financial funds and established 
together with the social capital including the private enterprises. This kind of f und is managed by 
the professional fund management team according to the articles of association, agreements, laws 
and regulations, with investments operated independently according to the market principles. The 
government department does not participate i n the day -to-day management affairs of the fund, and 
does not make statistics about the fund so far.   
Follow -up questions  
• Could China please explain what is 'social capital' and its source?   
• What is the % breakdown of capital between private/SOEs/Government entities?   
• Could China identify the professional fund management team and explain how their fees are 
calculated?  
• Is it possible to get a copy of the Articles of Association?   
• How is the independence of the team assured?  
• What guida nce or policy is followed in investment decisions?   WT/TPR/M/3 75/Add.1  
 
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  • What is the role of the Central government plans (e.g. 5-year plans) in determining investment 
decisions?   
• The government does not participate in 'day -to-day management affairs' - in what way does 
the Gov ernment participate in overseeing these funds?   
• Which Ministry or Government body is responsible for this fund?   
• When will statistics about the fund be available and where will they be reported?   
Reply  
As China previously replied, this kind of fund is mana ged by professional fund management teams 
according to its articles of association and agreements, and laws and regulations, with investments 
operated independently according to market principles. The government department does not 
participate in the day -to-day management affairs of the fund, and has not made statistical analyses 
about the fund so far. Concrete information is available upon request to the concerned fund.  
3.1.6 Anti-dumping, countervailing, and safeguard measures , 3.1.6.1 Anti-dumping 
measures , page 56, paragraph 3.50  
The report mentions that Article 56 of the AD Regulations allows for retaliatory measures when a 
trading partner ''discriminatorily'' imposes AD measures on exports from China. The authorities 
indicate that China has neith er applied Article 56 during the period under review, nor planned to 
revise the provisions. Indeed, as per China basic Anti -Dumping Regulation of 2004, Article 56: 
"Where any country (region) discriminatorily applies anti -dumping measures on the exports fr om 
the People 's Republic of China, the People 's Republic of China may, on the basis of the actual 
situations, take corresponding measures against that country (region)."   
Initial Question 31  
Could China elaborate about the WTO legal basis for this provisio n, and how it defines 
"discriminatorily"?"  
Reply  
China's  relevant provision complies with WTO 's Anti -Dumping Agreement. China has neither applied 
Article 56 so far.  
Follow -up question   
In its reply China states that ' China's  relevant provision complies with WTO 's Anti -Dumping 
Agreement'. Could China please indicate the precise provisions in the WTO Anti -dumping agreement 
which allows for retaliatory measures when a trading partner ''discriminatorily'' imposes 
AD measures on e xports from China?  
Reply  
Article 56 of China's  Anti-Dumping Regulation does not provide for the adoption of retaliatory 
measures; rather, it provides for the adoption of corresponding measures in view of the reality.  
3.2.3 Export prohibitions, restrictions, and licensing , page 62, paragraph 3.76  
The State may restrict or forbid exports to "organize 'export business management'", inter alia .  
Initial Question 32  
Can China please explain what is meant by 'organising export business management' in this context 
and how is it decided/enforced?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China's  export management measures are for the purpose of better promoting and safeguarding the 
export control work, sa feguarding national security and development interests, and fulfilling 
international obligations.  
Follow -up questions   
• It is not clear what is involved in the export management measures. Could China please 
explain further what is meant by 'development int erests'?  
• How are these interests safeguarded? How does this happen in practice? For example,  does 
this involve restricting exports of raw materials which may be required for sectors which China 
is interested to develop?   
• Who is the competent body controll ing this?  
• Could China please provide more specific information regarding the 'international obligations' 
referred to in its reply?  
Reply  
As a permanent member of the UN Security Council, China must perform the UN resolution No.1540 
as well as the concern ed resolutions of the UN Security Council  regarding sanctions . Moreover, as a 
signatory country of the Treaty on the Non -Proliferation of Nuclear Weapons, the Biological Weapons 
Convention and the Chemical Weapons Convention and a member of the Nuclear Suppliers Group, 
an international multilateral mechanism on expo rt control, China must perform its international 
obligations under the foregoing treaties, conventions and mechanisms, too.  
Page 62, paragraph 3.78  
The report explains that China applies export licences to specific dual -use substances for the 
purposes of national security and obligations under international agreements. During the period 
under review, China published a draft law on export control law on which the EU submitted comments 
during the consultation period in July 2017.  
Initial Questions 33 -35 
• The EU would appreciate clarifications as regards the conformity with WTO trade rules of 
certain aspects of China's draft export control law, in particular the reference to the 
"development interests of the State" [Article 1] as an objective of Chinese export  controls and 
a basis for export control decisions (licences or denials); various references to economic 
development and industrial competitiveness factors (for instance  "technological 
development ", "international market supply ", "trade and industrial comp etitiveness " in 
Articles  16 and 18 or "development interests" in Article 20) as well as the reference to their 
use as retaliatory measures against "discriminatory export control measures".  
• The EU would also welcome a clarification of the scope of the draft  law, in particular to what 
extent it includes items other than military and dual -use items, e.g. "strategic rare materials.   
• The EU would be grateful for an update on the legislative process for the draft law.  
Reply   
Major countries and regions in the world have enacted and introduced the export control law. A basic 
law in export control field needs to be formulated, for the purpose of better promoting and 
safeguarding the export control work, safeguarding national sec urity and development interests, and 
fulfilling international obligations. Our ministry put the Export Control Law (Draft) on the internet to 
solicit public opinions from 15 June to 15 July 2017, and received opinions and suggestions from 
domestic and fore ign governments, enterprises, business associations, law firms, etc. Overall, they WT/TPR/M/3 75/Add.1  
 
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  welcomed and supported our export control legislation. The law is currently under the legislative 
review of the Ministry of Justice of the State Council.  
Opening -up is a ba sic state policy of China. China's  opening -up policy will not change, and China will 
never close its open door to the outside world. China values the creation of a non -discriminatory and 
transparent business environment, observes the WHO principle of natio nal treatment, and treats all 
market players, including foreign -invested companies, fairly. The Export Control Law is enacted to 
better protect and promote free trade and maintain the legitimate rights and interests of the parties, 
and will not discriminat e or treat foreign enterprises differently. During the legislation of the Export 
Control Law, China will stick to open system of legislation and democratic legislation, and pay 
attention to learn and absorb international advance experience and universal pr actices. The EU can 
give any advices on the Export Control Law to the relevant legislative body in the subsequent 
legislative procedure.  
Follow -up questions  
• Could China please specify the development interests that China intends to protect through 
Export Control legislation? Does China mean "economic and industrial development"?  
• Could China please provide further details on the scope of the draft law as per question 34?   
• Could China please provide further details on the state of the legislative process as per 
question 35?   
Reply to questions 33 -35 
China has always complied with rules of the WTO and adhered to the principle of openness and 
transparency in making  laws. When  drafting the Export Control Law, China drew fully  on the mature 
legislative experience  of other countries, made repeated study and argumentation and solicited 
public opinions openly. In February 2018, the Ministry of Commerce submitted the Export Control 
Law (a draft for review) as well as notes for the drafting process to the State Council  and had the 
Ministry of Justice (formerly the Legislative Affairs Office of the State Council) conduct the legislative 
review. The Ministry of Commerce have actively assisted in the Ministry of Justices legislative review 
by revising the draft law, conduc ting legislative investigations across the country together with the 
latter, and hearing opinions and recommendations of local commercial administrations and 
enterprises following the principle of exercising democracy in law -making.  Currently, the Ministry  of 
Justice is undertaking legislative review over the Export Control Law (a draft for review).  
So the Export Control Law is still in the drafting stage  now. In making the law, China has adhered 
to the principle of legislation in an open and democratic ma nner and paid attention to borrowing 
advanced international experience and practices. If foreign parties have recommendations to make 
with respect to that law, they can advise the competent legislative  bodies of China in subsequent 
legislative  procedures.  
3.3 Measures Affecting Production and Trade , 3.3.1 Incentives , page 69, paragraph 3.109  
The report refers to various programmes in place to support different industries and attract foreign 
investment which are not covered in China's notifications.  
Initial Question 41  
Regarding the financial subsidies to projects in the photovoltaic industry referred to in 
paragraph  3.109, while China's last Subsidy notification in 2015  mentions certain support to the 
photo -voltaic industry, that notification states that that scheme ended in 2012. Can China clarify if 
the schemes referred to in the WTO secretariat report are separate schemes to that already notified? 
If so, will China notify these particular schemes in its next subsidy notification?   
Reply  
China has c larified the relevant matters item by item at the regular subsidy meeting, and has 
reflected the information currently verified and available in the central and local subsidy notification WT/TPR/M/3 75/Add.1  
 
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  submitted by the China. China's central and local subsidy notificati on has been updated to the period 
of 2015 -2016.  For the detailed subsidy programme , please refer to China's  subsidy notifications 
submitted.  2015-2016 
China will continue to make efforts to fulfill its obligations for subsidy notification as stipulated by 
SCM. 
Follow -up question   
The EU looks forward to examining China's recently filed Subsidy notification for the 
period  2015-2016 regarding the support measures for the photo -voltaic industry as referred to 
above. As regards China's reference to clarifications given in the last Regular ASCM Committee, in 
the absence of the minutes of that meeting to date, could China please provide for the record the 
clarifications given at that meeting regarding the photo -voltaic measures referred to?  
Reply  
The i nformation verified by China has all been reflected in the latest notification on subsidies 
submitted by the Chinese government.  
3.3.2 Standards and other technical requirements , 3.3.2.1 Overview , page 72, 
paragraph s 3.115 -3.116  
Despite assurances that the Chinese standardisation bodies are open to foreign companies, the key 
technical committees for information security (such as Technical Committee 260, Cryptography 
Industry Standardisation Technical Committee and Technical Commit tee 28 on Information 
Technology) still refuse access to some foreign invested enterprises in China.  
Initial Question 48  
Could China provide information on the specific eligibility conditions of the standardisation bodies, 
and, in particular, as regards t he Working Groups 2 and 3 of Technical Committee 260?  
Reply   
The National Technical Committee for Standardization of Information Security (hereinafter referred 
to as the NTCSINS) is committed to establishing an open and transparent working mechanism and 
an open participatory approach to the working group, encouraging and absorbing more enterprises, 
universities, scientific research institutes, testing and certification bodies and users to voluntarily 
join the working group and participate in the formulatio n of national network security standards, in 
order to improve the participation and universality of the formulation of standards, and give full play 
to the main role of enterprises.  
The NTCSINS consists of eight working groups including the Working Group on Information Security 
Standards Systems and Coordination (WG1), Working Group on Security and Privacy Standards for 
Confidential Information Systems (WG2), Working Group on Cryptographic Standards (WG3), 
Workin g Group on Authentication and Authorization (WG4), Working Group on Information Security 
Assessment (WG5), and Working Group on Communications Security Standards (WG6), Working 
Group on Information Security Management (WG7) and Special Working Group on Big  Data Security 
Standards (SWG -BDS).  
Among which, WG1 is responsible for studying the system of information security standards, tracking 
the development trend of international information security standards, and researching and 
analysing the application re quirements of domestic information security standards, without 
formulating specific standards; WG2 is responsible for studying and proposing a system of security 
and confidentiality standards for confidential information systems, and for formulating and re vising 
security and confidentiality standards for confidential information systems, with the participation of 
the member units to be subject to the relevant provisions of the State on confidentiality. The 
six working groups of WG3, WG4, WG5, WG6, WG7 and S WG-BDS have long been open to society 
for public solicitation of working group members. In accordance with the Constitution for the Working WT/TPR/M/3 75/Add.1  
 
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  Groups of the National Technical Committee for Standardization of Information Security, the working 
group members sh ould satisfy three basic requirements:  
1. Enterprises, institutions of higher learning colleges and universities, and scientific research 
institutes that have been registered in China with the status of legal person, etc.;  
  
2. Voluntary participation in the wor king group, abiding by the Constitution for the Working 
Group of the National Technical Committee for Standard ization of Information Security; and  
  
3. Engaging in operations related to the technical field of the working group. All the basic 
conditions shall be met to apply for membership in the working group.  
The application process for member units is as follows:  
1. The applicant shall submit an Application Form of member unit to the secretariat of the 
NTCSINS;  
 
2. The secretariat submits the application materials to the working group concerned  for 
qualification examination;  and 
 
3. After the qualification examination by the working group has been passed through 
successfully, the secretariat shall notify the members for the relevant formalities. The approval 
process for participation has been based on the principle of openness and transparency, with 
the relevant requirements for the members of the working group is consistent between 
domestic and foreign institutions that should be subject to the same approval process.  
Follow -up question  
Could China provide a list of foreign companies in all Working Groups of TC 260, notably WG 2 
and 3?  
Reply  
With respect to the list of foreign companies in all Working Groups of TC 260, by the end of July  2018, 
there have bee n a total of 28 foreign enterprises sitting in the entire Working Groups of TC 260. 
Concrete information is available at the official website of the National Technical Committee for 
Standardization of Information Security ( https://www.tc260.org.cn ). 
The National Technical Committee for Standardization of Information Security solicits members 
publicly from the society for its working groups in accordance with the principle of opening -up, 
cooperation and widespread participation. However, as members of the WG2 for the security 
standards of confidential security systems must comply with national confidentiality provisions and 
requirements, foreign parties are therefore excluded from that gr oup.  
Page 73, paragraph 3.121  
Chinese standards are divided into voluntary and mandatory standards (technical regulations). 
Government agencies can approve and promulgate technical regulations that may make reference 
to voluntary standards, rendering them  mandatory.   
Initial Question 52  
Can China please explain if there is a table listing the mandatory standards per product, product 
group and regulated sector?  
Reply  
At present, the catalogue of national standards approved and issued by China can be inquired on 
the website of Standardization Administration of the People's Republic of China (SAC). The texts of 
compulsory national standards have been opened to the society freely, but there is no special 
standard list or form for the supervision of some special product.   WT/TPR/M/3 75/Add.1  
 
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  Initial Question 54  
Is there a centralised monitoring or listing of standards that are referenced in technical regulations 
and thus rendered "mandatory"?  
Reply  
There is no centralized standard listing for the mandatory standards referenced due to technical 
regulations.   
Follow -up question  
The EU understands from China's replies that there is no centralised standard listing, and that the 
adoption of international standards can follow two paths, either identical or modified. Regardi ng 
draft national standards on limits for volatile organic compounds for furniture, could China please 
confirm which parts of the standard will be voluntary and which parts will be mandatory?  
Reply  
According to requirements of the standardization work and  reform for consolidation and 
simplification of mandatory standards, the national standards on limits for volatile organic 
compounds for furniture are right now in the process of being formulated.  
4.3 Manufacturing , 4.3.1 Recent developments , page 140, paragraph 4.85  
Few details are publicly available about the implementation of the "China Manufacturing 2025" plan 
outlined in this paragraph.  
Initial Questions 92 -94 
• Could China provide concrete information on all initiatives linked to the plan, such as s upport 
and subsidy programme s and the conditions for access to the different programme s, sector 
by sector?  
• Does China have targets for domestic or global market shares in these sectors?  
• What steps is China undertaking to prevent overcapacities in the ten  sectors covered by Made 
in China 2025?  
Reply   
"China Manufacturing 2025" is a guiding strategic plan to promote industrial upgrading. It is 
implemented by adhering to the principle of fairness and justice without distinction between 
domestic and foreign -funded enterprises as well as restrictive, discriminatory and exclusive content. 
China Manufacturing 2025 takes market -oriented as the primary principle of manufacturing 
development.  2025 
The implementation of Made in China 2025 is a transparent, open and non-discriminatory process. 
It is applicable for all the enterprises in China. Currently, a number of foreign enterprises including 
some American companies have taken part in the implementing programme s of Made in China 2025. 
With its development, China is  willing to offer free ride to more countries so to achieve common 
development.  
"China Manufacturing 2025" clearly requests to strengthen industry standards and admittance 
management, strengthen the dynamic monitoring and analysis of industries with sever e excess 
capacity, establish and improve early warning mechanisms, guide enterprises to actively withdraw 
from industries with excess capacity and speed up the elimination of backward capacity.  WT/TPR/M/3 75/Add.1  
 
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  Follow -up questions  
• The EU thanks China for this general desc ription  - could China also respond to the EU's original 
question as to whether China could provide concrete information on all initiatives linked to the 
Made in China 2025 plan, such as support and subsidy programme s and the conditions for 
access to the di fferent programme s, sector by sector?  
• Could China provide the list of implementing programme s it is referring to, in view of ensuring 
that EU companies can also participate?   
• What conclusions have China come to under this monitoring system about any potential risks 
of overcapacity emerging in Made in China 2025 sectors?   
Reply  
According to the Implementing Guidelines for the Industrial Foundation Consolidation Project 
(2016 -2020) (already released on the official website of the Ministry of Industry an d Commerce), 
we have since 2016 adopted a public tendering approach to support products in urgent need across 
the country. All enterprises registered in the country can participate in the public bids.  
4.3.2.2 Electronics  and information technology (IT) , page 143, paragraph s 4.100 -4.101  
Paragraph 4.100 refers to statements by Chinese authorities about not having provided any 
subsidies in the electronics and ICT sector.  Paragraph 4.101 then refers to the National IC Fund as 
a private equity fund.  
Initial Qu estion 99  
Does this imply that there is/was no government investment or involvement in the National IC Fund?  
Reply  
As told in the report of secretariat, the National IC Fund is a private equity investment fund. Just as 
other international private equity investment funds, all of its investment decisions are made, with 
the responsibilities for the shareholders taken, whi le the Chinese government cannot intervene in it.  
Follow -up question   
Could China clarify whether its characterisation of the National IC Fund as a private equity fund 
means that there is no government investment or involvement in the Fund whatsoever?   
Reply 
As told in the report of secretariat, the National IC Fund is a private equity investment fund. Just as 
other international private equity investment funds, all of its investment decisions are made, with 
the responsibilities for the shareholders taken,  while the Chinese government cannot intervene in it.  
Initial Question 100  
Can China provide a list of subsidy funds in the semiconductor sector on national, provincial and 
municipal levels?  
Reply  
As told in the report of secretariat, the National IC Fu nd is a private equity investment fund. Just as 
other international private equity investment funds, all of its investment decisions are made, with 
the responsibilities for the shareholders taken, while the Chinese government cannot intervene in it. 
So, th e scale of fund, the capital limit already input in the integrated circuit industry, etc. are related 
to the internal information about operation management of fund companies, which the Chinese 
government doesn 't know.  WT/TPR/M/3 75/Add.1  
 
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  Follow -up question   
The EU's origina l question was related to the functioning of the National IC Fund but whether China 
could provide a list of subsidy funds in the semiconductor sector on national, provincial and municipal 
levels?  Can China name specific semiconductor funds other than the N ational IC Fund?   
Reply  
The related information has all been reflected in the latest notification on subsidies submitted by the 
Chinese government.  
4.4.1 Telecommunications , 4.4.1.2 Regulatory framework , page 149, paragraph 4.120 and 
Table 4.24  
Initial Question 104  
Can China clarify any potential equity cap requirements still applicable for value -added telecom 
services in the Shanghai Free Trade Zone?  
Follow -up question  
As the EU has not received a reply to this question, could China please reply?  
Reply  
On 30 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued a 2018 edition of the negative list of the sectors to be invested by foreign investors in 
the pilot free trade zones. According to that list, forei gn telecommunication companies can only 
engage in the telecommunication services China has undertaken to open up to the outside world 
upon its accession to the WTO; and foreign investors shall not hold more than 50% of the stake of 
value -added telecommunic ation service (excluding e -commerce)  providers .  
Page 152, paragraph 4.129  
This paragraph refers to Mobile Virtual Network Operators (MVNOs) as regards the related pilot 
scheme initiated in 2013.  
Initial Question 105  
Could China clarify whether the licens ing of MVNOs is also open to foreign -invested companies?  
Follow -up question  
As the EU has not received a reply to this question, could China please reply?  
Reply  
China has made an Announcement on Formal Commercialization of the Mobile Communications 
Resale Service (Gong Xin Bu Tong Xin [2018] No.70) on 28 April 2018. According to the notice, the 
mobile communications resale service has been officially commercialize d since 1 May 2018 and 
opened up to foreign investors according to China's  commitment to the WTO.  
4.4.4  Accounting, auditing and bookkeeping services , page 163, paragraph 4.192  
Initial Question 120  
Can China confirm there are no market access restriction s on accounting, auditing and bookkeeping 
services provided by natural persons  - such as limitations on the number of persons employed, 
economic needs tests, labour market tests or quota  - other than those allowed by the horizontal 
commitments included in China's GATS schedule?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the commitment made by China during entering the WTO, under the accounting, 
auditing and bookkeeping services (CPC862), no other commitment will b e made for presence of 
natural persons except for those in horizontal commitments.  
Follow -up question  
The report mentions that foreigners who have passed the Chinese national CPA examination shall 
be accorded national treatment. Are there are any limitati ons on the number of persons employed, 
economic needs tests, labour market tests or quota on accounting, auditing and bookkeeping 
services provided by natural persons?   
Reply  
Please see the Schedule of Specific Commitments on Services  of China for details.  
Report by China  - WT/TPR/G/375  
2 NEW ERA, NEW THOUGHT AND NEW VISION  
Page 3, paragraph 2.2  
China states that its status as the world's largest developing country has not changed.  
Initial Question 121  
Could China elaborate which provisions of Special and  Differential Treatment throughout the 
WTO Agreements it makes use of and indicate the reasons?   
Reply  
China reserves the right to enjoy the special and differential treatment. Just like other developing 
countries, China is still confronted with unreasonable economic structure, unbalanced regional 
development, low social governance level and lagging social security system etc., so the international 
position of China as the largest developing country in this world is unchanged. Consequently, it is 
impossible for China to shoulder the same or similar responsibilities as the developed members.  
However, China never shifts its international responsibilities which shall be performed. In fact, China 
is always shouldering the responsibilities in line with its development level and practical capabilities 
in negotiations of WTO and governance of the gl obal economy. China plays a constructive role in 
reaching an agreement for topics such as trade convenience and export competition of agriculture 
etc. Meanwhile, China is actively pushing forward the progress of multilateral trade liberalization and 
is an important contributor for enlarged negotiations on Information Technology Agreement (ITA).  
In the next stage, with the constant enhancement in the economic strength of China, China will keep 
playing its role as a responsible great power, to actively parti cipate in reform and construction of 
the global governance system, so as to make constant contributions by virtue of its wisdom and 
strength. China wishes to endeavor to create a more favorable policy environment and framework 
for development of developing  members with all other members, to make active contributions to 
achieve the goal for sustainable development formulated by UN.   
Follow -up question  
The EU understands from China's reply that China does not currently make use of any Special and 
Differential  Treatment provision, but that it reserves the right to do so. Could China please confirm 
that this understanding is correct?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
As China is still a developing country, it is therefore an inherent right for China to enjoy the Special 
and Differentiated  Treatment. Like other developing country members of the WTO, China is 
confronted with many problems, e.g. unreasonable economic structure, imbalanced regional 
development, poor social governance and weak social security system, etc. So the fact that China  is 
the largest developing country in the world remains unchanged today. Therefore, China shall not 
assume the same or even similar responsibilities as the developed countries do. We will continue to 
enjoy our rights, including the Special and Differentiat ed Treatment, according to relevant provisions 
of the WTO treaties. But we will also continue to play the role as a responsible power by taking an 
active part in global governance reform and development and contributing our own wisdom and 
strength.  
Page 12, paragraph 4.7  
Initial Question 134  
Can China provide an update on implementation of this commitment, including the institutional 
arrangements to facilitate implementation?  
Reply 
The National People 's Congress publishes English version of Laws of the People 's Republic of China. 
In February 2003, the General Office of the State Council issued the Notice on the Examination and 
Approval of English Translation of Regulations. The translations are made public upon examination 
and approval. In March 2015, th e General Office of the State Council further issued the Notice on 
Enhancing the Work of Translating Trade -related Departmental Rules into English, requiring that 
English translation of Department Rules should be made publicly available to the extent possi ble 
through official website of government  departments or other channels.  
Follow -up question  
Is China considering publishing English translations of the drafts and regulations before the 
examination and approval, so that stakeholders can participate more e ffectively in the drafting 
process on the basis of a correctly translated drafts?   
Reply  
China is unable to publish English translations of the drafts and regulations before the examination 
and approval.  
Page 17, paragraph 5.4  
China states it has scaled down overcapacity through market -oriented, law -based measures in the 
steel and coal sectors. China points to its "tremendous efforts [ …] that enterprise debts were properly 
handled".  
Initial Question 136  
Could China please explain how the debts of the ente rprises in question were 'properly handled'? 
How was debt restructuring dealt with?   
Reply   
The Chinese government attaches great importance to the debt problems. In order to properly solve 
the debt problems of the enterprises, the Chinese government issue d the Opinions of the State 
Council on Actively and Stably Reducing the Corporate Leverage Ratio in 2016, proposing to actively 
and stably reduce the corporate leverage ratio by means of merger and restructuring, market -
oriented debt -to-equity swaps, revit alizing stock assets, optimizing debt structure, strengthening 
self-control of the enterprises, developing equity financing and bankruptcy according to law. These 
measures are generally divided into three categories. One is that the zombie enterprises or i nefficient WT/TPR/M/3 75/Add.1  
 
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  entities exit mainly through legal bankruptcy, merger and acquisition to clear the debts; another is 
to reduce the leverage ratio for the enterprises having development prospects but encountering 
difficulties temporarily by means of market -oriented debt -to-equity swaps, optimizing debt structure 
and revitalizing stock assets; the last one refers to long -term measures for all enterprises, mainly 
to improve corporate governance, strengthen self -control and develop equity financing.  
In the process of guiding relevant market entities to decrease the debt problems of the enterprise 
sector through the above measures, the most important thing is to abide by the market -oriented 
and legislation -based principle, let the market play a decisiv e role in resource allocation, and 
negotiate between the market entities to achieve related transactions to reduce leverage and 
promote the survival of the fittest.  
Follow -up questions  
• Could China please provide statistics on the number of bankruptcies recorded since the issue 
of the Opinions of the State Council on Actively and Stably Reducing the Corporate Leverage 
Ratio?   
Reply  
According to statistics of the Supreme People 's Court, by the end of 2017, the courts across the 
country have closed 6,257 ca ses concerning mandatory corporate liquidation and bankruptcy, up by 
73.7% year on year, and newly accepted 9,542 cases concerning corporate bankruptcy as well as 
bankruptcy filing review, up by 68.4% year on year.  
Question  
• How many merger and acquisitions have taken place in this context?   
Reply  
There are no concerned statistical data.  
Question  
• What has been the result as regards the debt situation for the companies taken over?  
Reply  
According to the Corporate Bankruptcy Law of China, once an  enterprise performs the bankruptcy 
procedures, it can either realize its assets to serve its debt according to liquidation procedures or 
restructure its debt according to bankruptcy reorganization or bankruptcy conciliation procedures.  
Question  
• What type of transactions fall into the category of 'optimizing debt structure'? How is this done 
on market terms and could China please provide some concrete examples?  
Reply  
Debt structure mainly refers to the term and interest rate structure of debts. O ptimizing debt 
structure for example can be done by replacing short -term debt with long -term debt or replacing 
high interest rate debt with low interest rate debt, etc. The optimization of debt structure is 
determined by enterprises according to market con ditions. We have no concrete examples to provide.  
Question  
• How does China ensure that debt -to-equity swaps are 'market -oriented'? Is there independent 
valuation or involvement by independent financial institutions?  Do private investors participate 
in thes e transactions?  How is it determined that an enterprise is in 'temporary' difficulty and WT/TPR/M/3 75/Add.1  
 
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  how are development prospects identified?  What Government body decides that these 
enterprises in temporary difficulty should continue by means of a debt -to-equity swap ?  
Reply  
According to provisions of the Opinions of the State Council on Actively and Stably Reducing the 
Corporate Leverage Ratio, the enterprises to participate in debt -to-equity swaps are to be selected 
by market; the prices of the swaps are to be deter mined by market; the funds necessary are to be 
raised by market; and the equity concerned is to exit by market means. Government does not force 
enterprises, banks or other organizations to participate in the swaps. According to the market -
oriented pricing principle, the valuation of enterprises concerned is to be determined by debt -to-
equity swap implementers and enterprises through voluntary negotiations. Likewise, the judgment 
on temporary difficulty and market development prospect are to be made by the e nterprises and 
swap implementers themselves, who are to enjoy the benefits of their decisions while assuming the 
risks concerned. Government bodies do not judge and determine which enterprises are to continue 
as an ongoing concern through debt -to-equity sw aps. The judgment and determination are to be 
made by market actors themselves.  
Question  
• What is meant by 'revitalizing stock assets' and how does this contribute to improving the 
leverage ratio of an enterprise?   
Reply  
revitalizing stock assets means to revive such idle assets as land, plant and equipment as well as all 
types of heavy assets by way of sale, transfer, lease, lease back and soliciting businesses to 
cooperate, etc., with a view to using them effectively. It  also means to encourage enterprises to 
integrate internal resources, sort out their assets in relation to their main businesses and put them 
in use in the operation of their main economic activities with a view to improving the utilization of 
their stock assets and increasing their economic returns. Moreover, according to the principle of true 
sale and bankruptcy remoteness, it also involves actively conducting asset securitization business 
with such property rights as receivables and leasers'  rights and s uch immovable property or property 
benefits as infrastructure and commercial estate as underlying assets. Revitalizing stock assets is 
conducive to enhancing the rate of return on assets and therefore improving the leverage ratio of 
enterprises.  
Question  
• Regarding 'corporate governance and strengthen self -control', could China please explain what 
are the concrete actions taken in this context and how specifically do they improve debt 
situation of enterprises?   
Reply  
Concrete measures include:  
1. Establishing sound modern enterprise systems. In this area, efforts will be made to improve 
corporate governance structure, create a decision -making, execution and supervision 
mechanism featuring clear rights and responsibilities and effective check and balance with 
respect to corporate behaviors that incur liabilities, and tighten self -discipline for enterprises 
in terms of financial leverage ratio to make reasonable arrangements for the size of 
debts/financing, effectively control corporate leverage ratio and form a r easonable ass et-
liability structure;  
  
2. Identifying the principal responsibilities of enterprises as they first  responsible persons  in 
lowering the leverage ratio;  
  
3. Strengthening the corporate managements responsibility in managing assets and liabilities by 
designing reasonable incentive and restraint systems, well handling the relationship between WT/TPR/M/3 75/Add.1  
 
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  long-term development and short -term performance, establishing the conc ept of prudent 
operations and preventing radical operations and excessive taking of liabilities;  
 
4. Putting in place the responsibility of shareholders in reducing leverage ratio by requiring them 
to make their capital contributions in full  and bear necessar y cost of the effort to reduce the 
leverage ratio according to the principle that equity comes before c reditors right in assuming 
loss; and  
 
5. Tightening the performance appraisal mechanisms for SOEs with respect to the reduction of 
leverage ratio by having state-owned assets administrations perform their functions in earnest 
to advance the efforts of SOEs to lower their leverage ratio and to incorporate the leverage 
ratio reduction into the performance appraisal system for SOEs as an indicator. All these 
measures target corporate behaviors that make investment and increase liability blindly due 
to the existence of unsound corporate governance mechanisms. If such behaviors are really 
checked,  the size of corporate liability will be controlled effectively.  
Additional questions  
4.2.2 Energy , 4.2.2.1 Overview including environmental policy , page 134, 
paragraph s 4.62-4.63 
The report describes that the NDRC issued an emission trading scheme for the electricity generation 
industry. This shall be "market -oriented, government -led, and based on a step -by-step approach, 
unified standards, extensive participation, equality and transparency. " In order to become a real 
carbon emission market with a fixed number of carbon allocations, the electricity sector would need 
to operate on the basis of free market -principles; however, the power sector is still fully regulated 
with state -owned monopolies determining the functioning of the sector.  
Question  
Could China elaborate what "market -oriented" means in this context and how market principles will 
be reflected in the reforms of the "energy revolution" planned by the NDRC and the National Energy 
Administration?   
Reply  
The National Development and Reform Commission and the National Energy Administration prepared, 
printed and iss ued the Energy Production and Consumption Revolution Strategy (2016 -2030). The 
document made comprehensive strategic deployment for the future energy revolution in China and 
put forward the strategic goal in building a green, low -carbon and highly efficien t modern energy 
system. By effectively linking the goal in the construction of an ecological civilization with the work 
on energy revolution, it contained 13 strategic energy actions to provide detailed strategic 
implementation plans and promote the constr uction of an ecological civilization.  
4.2.2.4 Gas , page 136, paragraph 4.73  
The distribution system of natural gas is fully owned by state -owned enterprises without any 
third-party access to private companies. Some private companies build their own infrastructure, 
e.g. LNG terminals but CNPC or Sinopec often refuse to connect them to the national gas grid.  
Question  
Could China elaborate on the role played by private companies in th e gas retail sector?   
Reply  
In the gas retail sector, private companies mainly engage in the retail of fuel gas in cities. The fuel 
gas industry in Chinese cities has given rise to a landscape where SOEs, foreign enterprises and 
private companies co -exist.  A large number of private gas enterprises have emerged and become 
important participants and facilitators of the industry in question, playing an important role in 
securing the supply of natural gas in Chinese cities. Deepening the oil and gas system refo rm and WT/TPR/M/3 75/Add.1  
 
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  advancing the mixed ownership reform in the oil and gas field in particular will create more favorable 
conditions for all types of enterprises including private ones to develop, thus injecting new vigor into 
the market.  
4.2.2.5 Electricity , page 139, paragraphs 4.80 -4.81 
Paragraph 4.80 describes reforms to liberalise electricity prices. However, in the absence of 
unbundling of electricity generation, transmission and distribution activities, the liberalisation of 
prices may not be felt due to blur red generation costs and transmission and distribution tariffs, which 
can be set at too high levels.  
Paragraph 4.81 notes that the retail market has been opened to non -state actors. However, 
non-SOEs, e.g. solar power plants, need to use the transmission of lines of SGCC or other 
transmission/distribution monopolies and prices set by the government. If the State Grid Corporation 
(SGCC) or another monopoly competes with a non -SOE to sell renewable electricity to large 
companies, SGCC or another monopoly has  extensive leverage on the non -SOE and could stop 
buying its renewable electricity or refuse to grant access to the transmission system on grounds of 
grid stability, in a context of large overcapacity.   
Question  
Will the reform of electricity prices be acc ompanied by an unbundling of generation and 
transmission and distribution activities?   
Reply  
In March 2015, the Central Committee of the Communist Party of China and the State Council 
circulated Several Opinions on Deepening Reform of  the Electric Power System. The document 
specified the practice of determining electricity transmission and distribution tariffs following the 
concept of controlling the mid -link, i.e. power transmission and distribution, and liberalizing the 
two ends, i.e. power generation a nd power sale, and provided for the requirement to liberalize the 
sale of electricity and the provision of incremental power distribution services. So far, 32 provincial 
power grids across the country as well as the municipal power grid of Shenzhen have re leased their 
power transmission and distribution tariffs, thus extending the power transmission and distribution 
tariff reform to all provincial power grids across the country. On this basis, competitive electricity 
prices have gradually come into being, s o much so that they are formed on the market through 
trades between electricity users and power generators. Following this model, the selling prices of 
electricity sold to users will be composed of two parts, namely, the market -oriented electricity price 
and the transmission and distribution tariffs. In particular, the power transmission and distribution 
tariffs are to be determined by the government on the permitted cost plus reasonable income basis, 
so power grid operators cannot obtain unjust interest th rough transmission and distribution tariffs. 
Moreover, electricity users can obtain reasonable electricity prices by way of market transactions. 
The Chinese Government will actively promote opening -up of the power grids in a fair manner, 
improve the grid i ntegration service, accelerate revising and improving the technical standards, 
engineering norms and administrative measures for power grid integration, and support new energy, 
renewable energy and power generating units that save energy, reduce consumptio n and use 
resources comprehensively to connect to the power grid, in an effort to promote effective integration 
of new energy and renewable energy with other electricity sources and grids and ensure power grid 
integration free of discrimination and barrier s.  
Currently, China implements an electricity price management system characterized by the 
separation of power generation from power transmission and distribution. On the link of power 
generation, uniform benchmark feed -in prices have been determined by t he source of electricity 
(e.g. benchmark feed -in prices for coal -fired power, benchmark feed -in prices for nuclear power, 
etc.) or by the zoning of natural resources (e.g. benchmark feed -in prices for PV power and for wind 
power, etc.) On the power transmi ssion and distribution link, there are transmission and distribution 
tariffs for provincial power grids, for regional power grids and for cross -provincial/cross -regional 
transmission projects. Nowadays, China is advancing a reform of the power distribution  tariffs with 
respect to incremental power distribution networks. So for provinces with incremental power 
distribution networks, separate power distribution tariffs will be approved for them.   WT/TPR/M/3 75/Add.1  
 
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  Which measures has China taken to ensure that non -state-owned  investors can benefit from 
Third-Party Access to transmission and distribution activities?   
Reply  
In order to ensure that non -state-owned investors benefit from third party access to power 
transmission and distribution activities, China proposes to accelerate the market -oriented reform of 
the electricity sector and open up the electricity distribution and sale sector to social investors in an 
orderly manner. In practice, China encourages social capital to invest in power distribution services, 
explor es effective means for social investors to invest in power distribution business and facilitates 
the development of power distribution under mixed ownership with a view to promoting the 
development of power distribution networks and improving the efficienc y of power distribution. In 
addition, China fosters market actors by multiple means, encourages social investors to found 
electricity -selling entities and allow them to purchase electricity from power generators and then 
resell it to users. Furthermore, it  encourages public service providers, e.g. water, gas and heat 
suppliers, to engage in the sale of electricity and permits eligible power generators to found 
electricity -selling organizations and engage in the sale of electricity.  Power grids will provide 
electricity sellers and users with various types of power supply services in an unbiased manner and 
perform the obligations due to a supplier who guarantees the minimum amount of electricity supply.  
4.3.2 Selected subsectors , 4.3.2.1  Automobiles, automoti ve parts, and components , 
page 141, paragraph s 4.92-4.97 
The report contains little information about automated and connected driving. According to the 
Chinese strategy issued at the beginning of this year by NDRC, this is one of the most important 
topics for the Chinese government as it concerns not only the automotive industry but also the 
telecommunication and software industries. Several EU companies signalled that a trade barrier in 
the area of automated and connected driving is lack of access to high definition maps: Foreign 
companies are not allowed to collect data which is required for producing maps for automated and 
connected driving.   
Question  
Could China explain what possibilities exist for foreign companies to collect data which is required 
for producing maps for automated and connected driving?   
Reply  
According to Management Regulations on Maps (State Council Decree No. 644), the eligible 
companies operating in full compliance with the laws and regulations are allowed to engage in map 
services.  
 
  WT/TPR/M/3 75/Add.1  
 
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  UKRAINE  
Report by the Secretariat - WT/TPR/S/375  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports, 3.1.3 Tariffs, 3.1.3.1 Applied MFN tariffs, 
page  47, paragraph 3.14  
The Report notes that "34 tariff lines (0.4% of all lines) carry specific rates. "  
According to available information, China committed to convert specific rates to the ad valorem  
equivalents based on the annual average import prices of the previous years. Specific rates are 
recalculated regularly to ensure that tariff rates do not exceed the committed bound level of 
ad valorem  rates.  
Question  
1. Could China, please, kindly clarify the state of play of the process of conversion of 
non-ad-valorem  rates into ad valorem  rates?  
Reply  
After China joined the WTO, the specific duties ( ad valorem  equivalent) we have been implementing 
over the years are converted strictly in accordance with the ad valorem  rates we promised when 
China entered to WTO, and the ad valorem  rates are recalculated regularly so as to guarantee th e 
actual tax doesn't surpass the ad valorem  rate China has promised. The conversions are carried out 
mainly at the average price of imports in previous years provided by the customs.  
3.1.4 Other charges affecting imports , page 50, paragraph 3.25   
The Report asserts that imports, like domestically produced goods, are subject to Value Added Tax 
(VAT). VAT on imports is collected by Customs on behalf of the State Administration of Taxation 
(SAT) and based on the c.i.f. price plus the import duty. If g oods are also subject to the consumption 
(excise) tax, VAT is calculated including the consumption tax. VAT on goods has two rates: 11% 
(down from 13% in July 2017) and 17%. The lower rate applies to various food products, agricultural 
machinery, and books . The list of products that are exempt from VAT has not changed since the 
previous review. Domestically produced agricultural products sold directly by the producer continue 
to be exempted from VAT, while imported goods are not. According to the authoritie s, the main 
beneficiaries of this provision are small -scale farmers.  
Question  
2. Ukraine would appreciate if China could give an explanation how VAT exemption for 
domestically produced agricultural products sold directly by an agricultural producer is consi stent 
with its WTO commitments?  
Reply  
Regarding the issue of exempting VAT on self -produced agricultural products directly sold by 
farmers, we have explained it in great detail during the last review. Here again we will summarize 
the most important points.  
First, since China's agricultural producers are large in number, small in scale, and are scattered, it 
is difficult to carry out accounting and tax declaration . Therefore, in the face of such situation, it is 
completely unfeasible to impose VAT  from the perspective of administrative cost. In order to simplify 
the collection and management and reduce the cost of taxation, China's self -produced agricultural 
products sold by agricultural producers are exempt from VAT. This is the fundamental reason  of this 
policy.  WT/TPR/M/3 75/Add.1  
 
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  Second,  the agricultural production in China is basically carried out in the form of  family, the size of 
the farmer's sales is very small, and the exemption of the VAT is only limited to farmers selling their 
home -grown  agricultural products, which is completely different from the import of bulk 
commodities , so the VAT  policy for the two categories  cannot be compared.  
Third, as far as we know, members who have adopted VAT system (some countries within EU) seem 
to have si milar policy of exempting agricultural producers from selling self -produced agricultural 
products, and it seems that tax exemption is not applied accordingly to imported agricultural 
products.  
Fourth, even if we impose VAT in this situation, we will follow  a higher threshold policy  like some 
countries. In this way, the vast majority of farmers will still be under the threshold, which is basically 
equivalent to the current policy . 
3.2 Measures Directly Affecting Exports , 3.2.4 Export support and promotion , page 64, 
paragraph 3.83   
According to the Report "Exporters are entitled to VAT rebates. The rebate rates vary according to 
the product. Rebate rates are usually lower than the VAT paid. At present, the rebate rates are: 
17%, 15%, 13%, 11%, 9%, 5% and 0%. The two most common rebate rates are: 17%, which 
applies to some 29% of all tariff lines, and 0%, which applies to 22% of lines. Certain goods are not 
eligible for a rebate.51 In terms of the value of exports, over 70% of the exported goods are subject 
to 17% and 15% rebate rates. Fruits and nuts are generally subject to the rebate rate of 5%, while 
endangered animals and plants may not benefit from any rebate. According to the authorities, the 
management of the VAT rebate is used to contribute to environme ntal protection, energy saving and 
emission reduction. Thus, rebates are used to discourage the production and export of environment -
polluting products. Changes in the rebate system since the last TPR include a resumption of the 13% 
VAT rebate for exports of processed corn products (including starch and ethanol), from 11% 
previously, and an increase, from 11 to 13%, for exports of electronic and mechanical products and 
processed oil. "  
Question  
3. Could China inform on the reason for the amendment of the rebat e system, in particular for a 
resumption of the 13% VAT rebate for exports of processed corn products?  
Reply  
China's increased export tax rebate rate for deep processing of corn products is mainly based on 
relevant industrial feedback. For enterprises whos e pollution and energy consumption have been 
greatly improved according to the assessment by industry associations and environmental protection 
departments, the tax rebate will be gradually restored and raised. According to the Notice of the 
Ministry of Fi nance and the State Administration of Taxation on Restoring the Export Tax Rebate 
Rate of Deep -Processed Corn Products (Cai Shui [2016] No. 92), in order to promote the optimization 
and adjustment of industrial structure, improve resource utilization and a dded value, it is decided to 
restore the VAT export tax rebate rate for corn starch, alcohol and other deep -processing products 
of corn to 13%.  
3.3 Measures Affecting Production and Trade , 3.3.1 Incentives , page 67, paragraph 3.98  
The Report states that policies and industries identified as priority areas for support are outlined in 
the central government's five -year plans. For example, the 13th Five-Year Plan (2016 -2020) 
highlights the importance of innovation capacity.57 It advocates increased innovatio n in agriculture, 
strategic emerging industries (SEIs), intelligent manufacturing, and services. Even though the plan 
does not outline any specific measures, it serves as a reference for the design of central or 
sub-central support policies.  
Question   
4.  Could China, please, specify the China's policy in the field of innovation in agriculture according 
to the 13th Five-Year Plan (2016 -2020)?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
During the 13th Five -Year Plan period, China will take supply side structural reform in agriculture as 
the main line under the framework of rural revitalization strategy, and optimize allocation of 
agricultural elements, productivity distribution and industrial structure, improve the quality of 
agricultural product supply, the quality of industrial operation, a nd promote high -quality 
development of agriculture. The main policy measures include: building a national agricultural 
science and technology innovation system, deepening the transformation of agricultural scientific 
and technological achievements and refo rm in promotion and application; formulating and 
implementing a national strategic plan for quality agriculture; adjusting and optimizing the layout of 
agricultural productivity, and promoting green and high -quality agriculture; developing an integrated 
development system of primary, secondary and tertiary industries in rural areas; vigorously 
developing various functions of agriculture and extending industrial chain; upgrading agricultural 
product; supporting the in -situ processing and transformation of ag ricultural products in the main 
producing areas; strengthening the post -production grading, packaging and marketing of 
agricultural products; building a modern cold chain, warehousing and logistics system for agricultural 
products; implementing leisure agr iculture and high -quality rural tourism projects, and building a 
number of leisure and sightseeing parks and characteristic towns with complete facilities and diverse 
functions; cultivating all kinds of specialized and market -oriented service organizations  and 
promoting the full -scale socialized service of agricultural production; developing diversified alliances 
and cooperation to enhance the organizational level of small farmers; giving play to the leading role 
of new agricultural operation entities to he lp small farmers connect to the market; improving the 
agricultural support and protection system; expanding the scope and scale of the implementation of 
the Green Box policy and establishing a new agricultural support and protection policy system; 
deepenin g the reform of purchasing and storage system of agricultural products and price formation 
mechanism, and implementing and improving direct subsidy system for farmers; and accelerating 
the establishment of a multi -level agricultural insurance system.  
Quest ion 
5.  What role does the information and communication technologies application play in the 
development of agriculture and rural areas?  
Reply  
ICT innovation propels historical achievements in agriculture and rural areas. It helps to enhance 
agricultural supply chain, industry chain and value chain, connect the rural production with urban 
consumption, and linked the smallholders to the modern agriculture, and yields notable economic, 
social and ecological benefits. For example, the broad application of big  data technology helps 
address market price volatility, reduce losses by disasters, advance healthy development of financial 
service, and promote high -quality development of agriculture.  
3.3.6 Government procurement , 3.3.6.6 Accession to the GPA and other international 
cooperation , page 96, paragraph 3.218  
  
Under the Report "China became an observer to the GPA in 2002. It initiated its GPA accession 
negotiation in 2007 and has subsequently submitted six market access offers offering gradually 
enlarged mark et opening commitments. Discussions dedicated to China's accession have taken place 
on multiple occasions during 2008 -17. China's fifth revised offer, which was submitted on 
23 December 2014125, covers entities and projects of all types and makes improveme nts in the areas 
of key concern to various parties. For example, more local entities have been added, all construction 
services covered, and SOEs included for the first time in the offer. Nonetheless, significant gaps 
remain between this offer and certain GPA Parties' expectations, especially in terms of the coverage 
of non -sensitive military procurements, sub -central government entities and SOEs. The Chinese 
delegation indicated in the course of several GPA Committee meetings held in 2017 that it would 
submit a further revised offer in due course to address GPA Parties' remaining concerns.126 The GPA 
Committee has mentioned several times its belief that China's GPA accession, on the right terms, 
will bring important advantages both to China itself and to th e multilateral system. "  WT/TPR/M/3 75/Add.1  
 
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  Question  
6. Ukraine welcomes China's continued efforts towards GPA accession and kindly asks China to 
inform when it is going to table its next revised GPA market access offer?  
Reply  
China is in the process of revising the offer with relevant parties and will submit as soon as possible.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.3 Policy instruments , 4.1.3.2 Internal 
measures , 4.1.3.2.2 Price controls and market price support systems , page 124, 
paragr aph 4.31   
The Report states that "It has been reported that relatively high levels of domestic production, 
imports and the operation of minimum purchase price and inventory systems resulted in significant 
stockpiles of some products (Chart 4.3). The wheat stockpile was estimated to have reached 
111 million tonnes, and the milled rice stockpile, 86.5 million tonnes, at the start of the 
2017/18  marketing year. On the other hand, the stockpiles of cotton and maize have declined from 
the peaks in 2015/16 and 20 16/17, respectively.23 Furthermore, the minimum support prices for 
rice and wheat have been reduced, while the reform of the systems of collection, storage, and price -
formation of agricultural products will continue.24" 
Question  
7. Could China kindly elabo rate on its plans to dispose the significant wheat stockpile and on 
possible assessment how it will influence the domestic wheat market and wheat imports?  
Reply  
According to relevant regulations, departments in charge will openly bid for the sale of stock  grain 
on the national grain electronic trading platform. During the auction, departments in charge will 
reasonably grasp the sales rhythm and quantity, so that the auction of stocked grain can not only 
meet the needs of enterprises, but also maintain the stability of market prices, so as to avoid adverse 
impact on domestic production and imports.  
Question  
8. Could China also delineate the future policy of China as to stockpiles?  
Reply  
The main purpose of China's grain reserves is to stabilize market supply  and demand, respond to 
natural disasters and emergencies, and ensure national food security. Relevant departments will 
determine the reserve size, variety structure and regional layout in accordance with the capacity of 
food production, consumption, circu lation, processing, and warehousing, and make timely 
adjustments.  
4.4 Services, 4.4.2 Financial services, page 154, paragraph 4.143  
The Report describes the regulatory developments of the financial services regime in China that have 
occurred during the per iod under review.  
Questions  
9. Could China, please, describe the procedure for assessment of transparency of a banks 
ownership structure by the People's Bank of China: indicators of an opaque ownership structure and 
approaches to identifying ultimate benefic ial owners of a bank?  
 WT/TPR/M/3 75/Add.1  
 
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  10. What are the requirements for registration and licensing of non -bank financial institutions in 
China (business lines to be registered/licensed, key requirements to applicants, the approval 
procedure including verification of sources of funds used for equity formation, assessment of the  
financial standing, business reputation and transparency of the ownership structure of the 
applicant)?  
 
Reply 9 -10 
 
At present, both the People's Bank of China in the central bank's financial institution rating 
information system and the Banking Regulatory Commission in the off -site supervisory statements 
require banks to fill the conditions of major shareholders in acc ordance with legal person calibre on 
a yearly basis, including: the bank's top ten common stock holders on the date of reporting and the 
names of top ten non -financial corporate shareholders, types, certificates, shareholdings quantities, 
shareholding rati o, ultimate beneficiary, equity pledge ratio, sectors and ownership; banks are also 
required to fill in the actual controllers of top ten common stockholders and the top ten non -financial 
entrepreneurs common stockholders and merger shareholding ratio of t heir concerted action 
planners and other relevant information.  
 
Question  
 
11. What are the specific approaches to regulation of FinTech companies and supervision over 
their activity in China?  
Reply  
Currently, there is no consensus on the scope of financial technology. In recent years, we have 
closely followed the development of financial technology, the impact of the development of financial 
technology on financial stability and regulatory response and other issues; we have been focusing 
on the principle of technology neutrality, continuously improving regulatory rules, improving 
supervision methods to ensure regulatory effectiveness. Technological innovation helps to expand 
channels of financial services and improve operational efficiency, but it does not re place the basic 
functions of finance, nor does it change the concealment, contagiousness and suddenness of financial 
risks. Whether it is a technology enterprise or a financial institution, as long as it engages in similar 
financial business, it should acc ept corresponding market access and continuous supervision under 
the current laws and regulations, and follow the same business rules and risk management 
requirements to maintain fair competition, prevent supervision arbitrage, and avoid "bad money 
driving  out good money".  
Report by China  - WT/TPR/G/375  
Page 13, p aragraph 4.12  
According to the Report "Investment facilitation benefits all members. China has joined hands with 
a group of developing members in the establishment of the Friends of Investment Faci litation for 
Development (FIFD). With the support of Nigeria as the host, the High -Level Forum on Investment 
Facilitation for Development was successfully held in November 2017. China was particularly glad to 
facilitate the endorsement by around 70 members  of the Joint Ministerial Statement on Investment 
Facilitation for Development during the 11th Ministerial Conference in Buenos Aires. China will 
continue support WTO members to engage in dialogues and discussions and promote the 
incorporation of the inves tment facilitation issue into the WTO framework at an early date. " 
Question  
12. Being one of the co -sponsors of the Joint Ministerial Statement on Investment Facilitation for 
Development during the 11th Ministerial Conference in Buenos Aires, could China elaborate on its 
further activities in order to promote the incorporation of the investment facilitation issue into the 
WTO framework?  
 WT/TPR/M/3 75/Add.1  
 
- 405 - 
 
  Reply  
 
As a member of the Friends of Investment Facilitation (FIFD)  of the WTO, China has been committed 
to promoting the discussion of investment facilitation issues in the WTO. In 2018, in accordance with 
the spirit of the Joint Declaration, China, along with other FIFD members, promoted the informal 
dialogue of investm ent facilitation into the substantive phase of the Structured Discussion; at the 
same time, it carried out Outreach together with other facilitators, strengthen communication with 
WTO members who have not participated in investment facilitation discussions , and encourage more 
members, especially developing members, to participate in discussions to promote the multilateral 
outcome of this issue in the WTO. In September this year, China will hold a Ministerial Seminar on 
Investment Facilitation in China to di scuss investment facilitation and its contribution to development 
with relevant developing members.  
Page 13 , paragraph 4.13  
The Report declared that "China attaches great importance to and supports the work related to 
E-commerce within the WTO framework. C hina participated actively in the discussions, tabled 
important proposals, and joined the Friends of E -Commerce for Development (FED). During the 
11th Ministerial Conference, China made all the efforts for members' final agreement on the 
Ministerial Decisi on on the Work Programme of Electronic Commerce. In May 2018, a workshop on 
E-commerce for development under the multilateral trading system was held in China, where more 
than a dozen of developing members were invited for experience sharing and discussion  on the boost 
of economy and development by E -commerce. " 
Question   
13. Taking into account China's active participation in the work under Work Programme on 
Electronic Commerce within the WTO and its recent regulatory developments in this sphere, could 
China provide more information on the priorities issues to be further discussed with the aim to 
promote regulatory environment in facilitating electronic commerce within the WTO?  
Reply  
China attaches importance to and supports the discussion of e -commerce issues  under the WTO 
framework, emphasizes respect for existing mandates, takes development as the core, fully 
considers the actual conditions and concerns of different developing members, adheres to the 
principle of gradual and orderly progress, and avoids sett ing excessive ambition levels. The goal of 
the discussion is to find the greatest common ground among members. The Chinese side suggests 
that the current discussion can focus on facilitating cross -border e -commerce goods trade and 
related logistics and pay ment services, and can explore discussions on elements such as electronic 
signatures and transparency.  
Other questions  
14. Could China kindly elaborate on the means and methods of governmental support of national 
producers in its priority industries?  
 
Reply  
 
Please refer to the subsidy notification submitted by the Chinese government.  
 
Question  
 
15. What is the amount of such governmental support in China (in total and industry breakdowns)?  
 
Reply  
 
Please refer to the subsidy notification submitted by the Chinese g overnment.  
 WT/TPR/M/3 75/Add.1  
 
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  Question  
 
16. How does China provide compliance of the complex governmental support to national 
producers in priority industries, if any, with the requirements of the WTO Agreement on Subsidies 
and Countervailing Measures? Please, provide examples of current measures compliance with the 
provisions of the mentioned Agreement.  
 
Reply  
 
Please refer to the subsidy notification submitted by the Chinese government.  
Question  
17. When does China plan to accept the Marrakesh Treaty to Facilitate Access to Published Works 
for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled, which was adopted on 
28 June 2013 (signed by China on 28 June 2013) and entered into force on 30 September 2016?  
Reply  
On 28 June 2013, China signed the Marrakesh Tre aty on Facilitating Access to Published Works for 
the Blind, Visually Impaired or Other Dyslexic Persons (hereinafter referred to as the Marrakesh 
Treaty). According to the provisions of China's Procedure Law of Conclusion of the Treaty, the 
Chinese govern ment also needs to perform relevant procedures and report to the NPC Standing 
Committee for approval of the treaty before it can take effect.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  HONG KONG, CHINA  
Report by the Secretariat  (WT/TPR/S/379 ) 
 
3 TRADE POLICIES AND PRACTICES MY MEASURE  
3.3.4.2 Price Controls, page 84, paragraphs 3.172 -3.176  
1. The determination of government -set prices or government -guided prices varies in accordance 
with the type of product or service. The criteria used in their formulation include: the market 
situation, average s ocial costs, as well as economic, regional and seasonal factors, and development 
and social needs. Adjustments to the prices of concerned products are announced by the 
State  Council or relevant local authorities.  
Products and services subject to prices set /guided by local governments remained unchanged during 
the review period. The Government also maintains its minimum procurement price policy for 
unhusked rice and wheat in their main production areas.  
Question  
How frequently are government set/guided -prices reviewed? Are the Local Government Pricing 
Catalogues published? Is there any plan for further liberalisation of price controls?  
Reply  
The prices of all the agricultural products are not subject to government control and are formed by 
the market. The minimum procurement price policy for wheat and paddy rice will continue, however, 
it is totally different from the so -called price -control, since the policy is only effective in defined 
periods and will only be activated when certain conditions are met. Ev en when it is activated, farmers 
can choose to sell their products to any buyers at prices that are accepted by both sides after 
negotiations, which might be higher than the minimum procurement price, or lower, if the quality of 
the products is not so good . 
3.3.5 State Trading, State -owned Enterprises, and Privatization, page 87, 
paragraphs  3.177 -3.189  
2. China provided its last full notification on state trading enterprises (STEs) in 2015. The 
authorities indicate that a new notification is under preparation.  The legislation regulating state 
trading has not changed since 2014, nor have the reasons for maintaining this practice or the 
products subject to it.  
Question  
Please advise when the new notification is expected to be provided.  
Reply  
China will strive to provide the new notification  before this review.  
4 TRADE POLICIES BY SECTOR  
4.4.1 Telecommunications, page 151, paragraphs 4.123 -4.124  
3. The Ministry of Industry and Information and Technology (MIIT) issued the Administrative 
Measures on  Operating Licensing of Telecommunications Business (MIIT Decree No. 42.), which 
entered into force on 1 September 2017. The main amendments brought about by the new licensing 
regulation include, inter alia , the establishment of a credit rating, performance -based mechanism as 
part of the supervision system of telecommunications operators.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Please provide more information about the credit rating, performance -based mechanism. For 
example, what criteria and factors are used to determine the r ating and performance? How 
frequently is the assessment reviewed? Is an operator required to meet a minimum rating or 
performance standard in order to provide telecommunications services?  
Reply  
The Administrative Measures on Operating Licensing of Telecom munications Business  establishes a 
credit management system, and introduces a list of bad-performing operators and a list of defaulters . 
There are two criteria for inclusion in the lists:  (1) The information reported by an operator in its 
annual report. If  the operator fails to provide information required in the annual report prior to the 
deadline required by the competent administrative authorities, the operator shall be placed on the 
list of bad-performing operators . (2) The administrative penalty receiv ed by an operator. If the 
operator is given administrative punishment by the competent administrative authorities, it shall be 
also placed on the list of bad-performing operators . However, if an operator has had its telecoms 
licence been revoked, it shall be directly placed on the list of defaulters . An operator listed on either 
of the above lists can also be removed if it is not punished by the competent administrative 
authorities within a certain period of time.  
The list of bad-performing operators and li st of defaulters , and removal criteria related thereto 
stipulated in the Administrative Measures on Operating Licensing of Telecommunications Business  
are objective, straightforward and easy for operators to understand and act accordingly, and do not 
involve performance and evaluation.  
4.4.2 Financial services, page 156, paragraph 4.146  
4. In May 2015, the State Council approved the "three -year pilot programme of the city of Beijing 
to further open up a number of services sectors. " Regarding banking, this pilot programme allowed 
foreign financial institutions to establish foreign banks and set up joint -venture banks with Chinese 
private capital. In a second phase, all types of capital fulfilling the relevant entry conditions were 
allowed to create non -bank financial institutions such as consumer finance companies, auto finance 
companies and financial leasing companies.  
Question  
Please provide more information about the outcome of the pilot programme. Is there any plan to 
extend the p ilot programme to other cities? What are the policy considerations for doing or not doing 
so? 
Reply  
On 5 May 2015, the State Council approved the three -year pilot programme of the city of Beijing to 
further open up a number of services sectors, Beijing has  thus become the only city in China to 
launch comprehensive pilot to further the opening up of service sectors. On 25 June 2017, the State 
Council released its Official Reply on the Work Plan for Deepening Reforms and Advancing the 
Comprehensive Pilot Prog ram for Further Opening up the Service Sectors in Beijing (hereinafter 
referred to as the Deepening Program). Since the launch of the pilot programme, Beijing has been 
working to promote reform through opening up, and optimize the business environment thro ugh 
reform, the pilot has therefore yielded great initial results. For the 141 three -year pilot projects listed 
in the overall plan approved by the State Council in May 2015, 135 projects have been completed, 
representing an implementation rate of 95.7%. A nd, more than half of the 85 projects listed in the 
Deepening Program approved in June 2017 have also been completed. According to the third -party 
evaluation, the pilot programme has contributed 58 opening up innovation initiatives in areas of 
service form at innovation, key institutional innovation, service trade facilitation and business 
environment optimization, especially the ten industrial innovation initiatives + eight institutional 
innovation initiatives, which are the nation 's first or best -performin g ones, and have progressed the 
opening up and development of Beijing 's service sectors and their service trades.  
 WT/TPR/M/3 75/Add.1  
 
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  4.4.4 Accounting, auditing and bookkeeping services, page 163, paragraph 4.198  
5. In terms of supervision and regulation in accounting, China combines administrative regulation 
and self -discipline; the financial department of the State Council and the provincial finance 
departments are responsible for the administrative supervision. The Chinese Institute of Certified 
Public Accountants and the p rovincial institute of Certified Public Accountants are responsible for 
self-discipline.  
Question  
How "administrative supervision " and "self-discipline " are combined in the supervision and regulation 
of the accounting sector? Is there any legislation delin eating the powers of the government agencies 
and the Chinese Institute of Certified Public Accountants or other provincial institute of Certified 
Public Accountants?  
Reply  
According to the Law of the People 's Republic of China on Certified Public Accountan ts, the financial 
department under the State Council and financial departments of the people 's governments of 
provinces, autonomous regions and municipalities directly under the Central Government shall 
supervise and guide the activities of certified publi c accountants, public accounting firms and 
institutes of certified public accountants according to law. The Chinese Institute of Certified Public 
Accountants shall draw up professional standards and rules for certified public accountants according 
to law a nd implement them after obtaining approval from the financial department of the State 
Council. The Chinese Institute of Certified Public Accountants shall carry out annual inspection of the 
qualifications and professional services of certified public accou ntants.  
In addition, the Measures for the Registration of Certified Public Accountants and other relevant rules 
and regulations also make explicit requirements on how institutes of certified public accountants can 
perform their functions set forth in the Law of the People 's Republic of China on Certified Public 
Accountants.  
4.4.7 Pipeline Services, pages 166 & 167, paragraphs 4.215 & 4.220  
6. Currently, not all the pipelines for oil and gas are state owned. Pipeline assets are diversified 
and the main owners of pipeline assets are central enterprises, local state -owned enterprises, private 
capital and foreign enterprises. Foreign participation in pipelines for oil and gas is encouraged by 
the 2017 Catalogue on Guidance of Foreign Investment.  Regarding particip ation of foreign capital, 
the 2017 Investment Catalogue classifies pipelines as an "encouraged industry " and allows wholly 
foreign -owned pipelines.  
Question  
Are there any measures to encourage foreign participation in pipelines for oil and gas? What is the  
market response so far?  
Reply  
The 2017 Catalogue on Guidance of Foreign Investment classifies pipelines as an encouraged 
industry , on which no addition restrictions have been imposed.  This shows that China has treated 
foreign investors equally in this fie ld.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  HONG KONG, CHINA – FOLLOW -UP 
Reply to our question 1  
• On price control, our question is not sector specific. Thank you for telling us the arrangement 
for agricultural products in your reply. We would also like to know the arrangement for other 
sectors or arrangement in general.  
• Our original question also ask ed about the timing of publishing the Local Government Pricing 
Catalogues, and also any plan for further liberalisation of price controls. Most grateful for your 
reply on these two aspects as well.  
Reply  
In order to give full play to the role of the market  in determining prices, the Chinese government 
has been deepening price reform in key areas. The goal of the reform is to basically liberalize prices 
in competitive fields and links, and limit the scope of government pricing mainly to important public 
utilities, public welfare service and network natural monopoly links.  
Reply to our question 4  
• Thank you for telling us the information about the pilot programme of Beijing on financial 
services. Our original question also asked if there was any plan to extend the pilot programme 
to other cities and the policy considerations on such extension. Most grateful for your reply in 
this aspect as well.  
Reply  
The Notice of the Beijing Municipal People's Government & the Ministry of Commerce on Printing and 
Distributing the Comprehensive Pilot Program for Further Opening -Up the Service Sector in Beijing 
(Jing Zheng Fa [2015] No. 15) specifies that in the context of complying with relevant laws and 
regulations, branches of foreign banks can be established in Beijing and Si no-foreign joint venture 
banks can be established for the convenience of private enterprises and foreign banks. This work 
does not involve prohibitive regulations and can be implemented throughout the country, mainly to 
support foreign financial institutio ns to provide financial services and participate in market 
competition in an equal market environment.  
Reply to our question 6  
• Thank you for your reply about the 2017 Catalogue on Guidance of Foreign Investment. Our 
original question asked about the market  response to measures that encouraged foreign 
participation in pipelines, we are interested to know the effect on foreign participation after 
classifying pipelines as an encouraged industry and allowing wholly foreign -owned pipelines, 
e.g. is there an incr ease in foreign participation or other observations?  
Reply  
China encourages foreign investors to participate in the construction of oil and gas pipelines. At 
present, foreign capital has already participated in oil and gas pipeline construction projects in  the 
capital market, but the number of foreign investors has not yet increased significantly. Because most 
of China's oil and gas pipelines, especially oil pipelines, adopt the model of point -to-point 
transportation, foreign investors have not independentl y entered into the upstream exploration and 
development field in China, and do not have the need for independent pipeline construction. 
However, it is not excluded that foreign investors have new intention to cooperate with state -owned 
oil companies to bui ld long -distance oil and gas pipelines.  
 
  WT/TPR/M/3 75/Add.1  
 
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  CAMBODIA – BATCH  1 
Report by China  - WT/TPR/G/375  
4.2.4 Responding positively to the WTO Aid for Trade initiative , page 15, paragraph 4.20  
 
In March and December 2017, China's  LDCs and Accessions Program (China Program) sponsored 
the Fifth and the Sixth Roundtables on LDCs WTO accession in Cambodia and Argentina 
respectively. China contributed another US D 1 million to the Program to help more LDCs to join 
the big family of the WTO. During the 11th Ministerial Conference in Argentina, China signed a 
memorandum with the WTO on donating US D 1 million to the Trade Facilitation Agreement Facility 
(TFAF). During the Belt and Road Forum for International Cooperation held in May 2017 in  Beijing, 
China signed an economic cooperation agreement with the WTO, providing US D 8 million to support 
the research and relevant activities of the WTO with developing countries for capacity building in 
the international trade field.  
Question 1  
According  to the report by China page 15, Paragraph 4.20 mentioned  that during the Belt and Road 
Forum for International Cooperation held in  May 2017 in Beijing, China signed an economic 
cooperation agreement with  the WTO, providing US D 8 million to support the research and relevant 
activities  of the WTO with developing countries for capacity building in the  international trade  field. 
Does China have a policy or plan to help developing countries especially LDCs in another field?  
Reply  
China will continue to fully  support the accession of the developing countries, especially LDCs, into 
the multilateral trading system. We will give proactive respond to the WTO 's Aid for Trade Initiative, 
and accelerate the process of accession of LDCs to the WTO through China's  LDCs and Accessions 
Program.  
Report by the Secretariat - WT/TPR/S/375  
2.3.3 Other agreements and arrangements, page 36, paragraph 2.29  
China continues to grant unilateral preferences to least developed countries (LDCs). According to 
the authorities, by the end  of 2017, China had granted duty -free treatment to 36  LDCs, as per 
arrangements of diplomatic notes, on 97% of the tariff lines; three  LDCs on 94% of the tariff lines; 
and the remaining 1 LDC on 61% of the tariff lines. During the review period, Samoa was removed 
from the list of the LDCs to which China granted unilateral preferences on 1  January 2017, and 
Equatorial Guinea was removed from the list on 4 June 201718; The Gambia and Sao Tome and 
Principe started receiving duty -free treatment in 2017.  
Questio n 2  
With reference to the Report by Secretariat page 36, paragraph 2.29,  China  has continued 
implementing zero tariffs for 97% of its tariff lines for  LDCs  exports to China. By the end of 2017, 
China had applied the zero -tariff scheme to 36 LDCs WTO members that had exchanged diplomatic 
note with China including Cambodia which is enhancing greatly our exports to  the Chinese market. 
China is a major export destination for  Cambodia.  
Is there any plan for China to expand product coverage of the DFQF scheme for  LDCs?  
Reply  
No, there isn't any plan in this respect.  
 
  WT/TPR/M/3 75/Add.1  
 
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  CAMBODIA – BATCH  2 
Report by the Secretariat - WT/TPR/S/375  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
Page 45, paragraph 3.1  
Customs procedures are regulated by several pieces of legislation (Table 3.1). In addition, the 
General Administration of Customs of the People's Republic of China (GACC) issues administrative 
customs announcements and decrees to introduce and enforce changes in customs procedures.1 
Between September 2015 and December 20 17, it issued 190 announcements and nine decrees. 
These were mainly related to: procedures for goods in transit, advancing paperless clearance, 
promoting the use of single windows (which had covered all ports by 2017), implementing free -trade 
agreements, a uthorized operators, e -commerce, and rating enterprises according to their credit 
history.   
1. Request for information  
Since there were changes in customs procedures by several pieces of legislation, please kindly share 
the key change of the procedures and  its related outcomes.  
Reply  
From September 2015 to December 2017, the contents of the order issued by the General 
Administration of Customs focus on the regulations on the management of origin of relevant 
countries, the implementation measures of the insp ection regulations, the management measures 
of the supervision areas, and the pre -arbitration management measures. The contents of the newly 
released announcement mainly include the reform of the administrative examination and approval 
system, further deep ening the reform of the national customs clearance integration, comprehensive 
promotion of double randomness and one openness, further reduction of the overall customs 
clearance time for import and export goods, further improvement of the single window of 
international trade, and acceleration of the development of Internet + Customs, and so forth; details 
have been published on the website of the General Administration of Customs.  
Page 45 , paragraph 3.2  
China has continued to make efforts to reform and harm onize customs procedures across its 
42 customs areas with a total of more than 200 individual offices. In June 2016, the National 
Customs Clearance Integration Reform was launched as a pilot phase; it was rolled out nationwide 
in July 2017. The Reform cove rs the whole import declaration process and has as a main objective 
improving the efficiency of clearance procedures. The authorities indicate that nationwide clearance 
times were reduced to an average of 16.7 hours in 2017, from over 22 hours in 2016. Acc ording to 
the authorities, about one third of imports are now declared through single windows.  
2. Request for information  
We understand that the outcome of China Customs Reform is improving the efficiency of clearance 
procedures; in this regard, could you please share experience on how to cooperate effectively with 
other agencies at the border in terms of coordination and cooperation.  
Reply  
Let us take the development of the credit system as an example: The General Administration of 
Customs, along with dozens of departments such as National Development and Reform Commission 
and the People's Bank of China, signed the Memorandum of Cooperation on Impl ementing Credible 
Joint Incentives for Advanced Certification Enterprises of Customs in 2016, and signed  Memorandum 
of Cooperation on Implementing Joint Punishment on Breach -of-Faith Enterprises  of Customs  in 
March 2017. In import and export , measures are taken to increase the import and export supervision 
over the deeply dishonest entities, and restrict them from turning into customs -certified enterprises 
or lower their customs credit rating; facilitation measures in import and export are provided for the WT/TPR/M/3 75/Add.1  
 
- 413 - 
 
  trustworthy entities, resulting in good social and regulatory effects. Enterprises that violate laws at 
one port will be restricted at others.  
The development of Single Window is also an important manifestation of the cooperation betwe en 
border agencies. The Single W indow of China's international trade is promoted and advanced under 
the system of inter -ministerial joint meeting system of port work of the State Council. The goal of 
development is to enable the applicant to access the electronic port platfor m at a single point, submit 
standardized documents and electronic information that meet the requirements of all relevant 
departments of port management and international trade in one go; relevant departments share 
data information and implement functional management through the electronic port platform, and 
the processing status (result) is provided to the applicant through the Single Window in a unified 
form. At present, the standard version system of Single Window has been promoted and applied 
nationwide;  nine basic functions, such as declaration of goods, declaration of manifest, declaration 
of means of transportation, application and collection of licen ce, application and collection of 
certificate of origin, enterprise qualification service, inquiry and statistics, export tax rebate and 
payment of taxes and fees, have been completed under the standard version; the bulk -to-bulk 
connection with eleven  ministerial  and commissions system has been formed, and 148 external 
service items have been provided, cove ring main process business in major customs clearance.  
Page 46 , paragraph 3.6  
Some 134 "special customs supervision areas", governed by different regulations, continue to exist, 
mostly in the pilot free trade zones (Sections 2.4.1 and 3.2.4). China's special customs supervision 
areas are approved by the State Council and supervised by Customs. There are six  different types 
of these areas: bonded zones, export processing zones, bonded logistics parks, bonded ports, 
comprehensive bonded zones, and cross -border industrial zones. The authorities indicate that there 
have been no major changes in their rules and regulations. China also applies different customs 
procedures to specific areas, in some instances on a trial basis, to assess their functionality.4 
Question  
3. Please elaborate more on the different customs procedures applied to specific areas.  
Reply  
According to Article 34 of the Customs Law of the People's Republic of China , Customs special 
supervision areas such as bonded areas established within th e territory of the People's Republic of 
China with the approval by the State Council shall be supervised by the Customs in accordance with 
relevant state regulations. The supervision of the special customs supervision area is incorporated 
under the legal p rovisions of the Customs Law. At present, the special customs supervision areas 
include six types: bonded areas, export processing zones, bonded logistics parks, bonded port areas, 
comprehensive bonded areas, and cross -border industrial areas. According to  the Guiding Opinions 
of the State Council on Promoting the Sound Development of Special Customs Supervision Areas  
(issued by the State Council Office [2012] No. 58) and the Notice of the General Office of the State 
Council on the Issuance of an Integratio n and Optimization Scheme for Speeding up Customs 
Supervision Areas (issued by the State Council Office [2015] No.  66), existing export processing 
zones, bonded logistics parks, cross -border industrial zones, bonded port zones and eligible bonded 
zones wil l be gradually integrated into comprehensive bonded zones. The newly established special 
customs supervision area will be under a unified name as the comprehensive bonded area. For each 
type of area, Customs at present has integrated a unified information management system to further 
unify management and improve efficiency.  
Page 48 , paragraph 3.17  
Since China's previous review, there have been no changes to the list of products subject to tariff 
rate quotas (TRQs), the in - and out -of-quota tariffs, or the allocation system. In 2017, TRQs applied 
to 47 tariff lines included in HS Chapters 10 (wheat a nd meslin, maize, rice), 11 (cereal flours other 
than of wheat or meslin, cereal groats), 17 (cane or beet sugar), 31 (mineral or chemical fertilizers), 
51 (wool, carded or combed), and 52 (cotton). All in -quota rates are ad valorem . In most cases, the 
out-of-quota rates are equal to the bound rates. The most recent notification on tariff quota WT/TPR/M/3 75/Add.1  
 
- 414 - 
 
  utilization dates from 2014.12 Fill rates for China's TRQs varied strongly by product 
(Section  4.1.3.1.1).  
4. Request for information  
Since tariff quota is considere d to be unfair treatment for a product imported from different 
countries. Please kindly explain China's view point on this matter.  
Reply  
Tariff quota is a way of providing market access. The tariff quota management implemented on the 
basis of MFN status is  fair to products from various countries/regions, and there is no so -called unfair 
treatment. Of course, some members have adopted certain discriminatory practices in the 
management of tariff quotas, which has resulted in unfair distribution of tariff quot as, a problem 
that requires members to resolve through relevant WTO procedures.  
Page 64, paragraph 3.83  
Exporters are entitled to VAT rebates. The rebate rates vary according to the product. Rebate rates 
are usually lower than the VAT paid. At present, the  rebate rates are: 17%, 15%, 13%, 11%, 9%, 
5% and 0%. The two most common rebate rates are: 17%, which applies to some 29% of all tariff 
lines, and 0%, which applies to 22% of lines. Certain goods are not eligible for a rebate.51 In terms 
of the value of e xports, over 70% of the exported goods are subject to 17% and 15% rebate rates. 
Fruits and nuts are generally subject to the rebate rate of 5%, while endangered animals and plants 
may not benefit from any rebate. According to the authorities, the managemen t of the VAT rebate 
is used to contribute to environmental protection, energy saving and emission reduction. Thus, 
rebates are used to discourage the production and export of environment -polluting products. 
Changes in the rebate system since the last TPR i nclude a resumption of the 13% VAT rebate for 
exports of processed corn products (including starch and ethanol), from 11% previously, and an 
increase, from 11 to 13%, for exports of electronic and mechanical products and processed oil.  
Question  
5. Please elaborate more on VAT rebate. What government agency is responsible for VAT rebate? 
What items are not eligible for a rebate? What are the differences between VAT rebate and export 
subsidy?  
Reply  
The current export rebate rate is 16%, 15%, 13%, 10%, 9%, 6% , 5%, and 0%. In order to protect 
the environment, save energy and scarce resources, China adopts a policy of differential tax rebate 
for high -energy, high -pollution and resource -based products, and implements a lower export tax 
rebate rate or cancels tax rebates. The VAT export tax rebate aims to optimize the structure of 
export products and promote sustainable economic development. Changes in the export tax rebate 
system include returning the VAT export tax rebate rate for deep -processing products of corn  such 
as corn starch and alcohol to 13%; and increasing the export tax rebate rate for cameras, video 
cameras, internal combustion engines, gasoline, aviation kerosene, diesel and other products to 
17%. The government agency in charge of the VAT export tax  rebate is the tax bureau. China adopts 
a policy of differential tax rebate for high -energy, high -pollution and resource -based products.  
3.3.3 Sanitary and phytosanitary requirements , page 76, paragraph 3.136  
The main legislation governing China's sanitary  and phytosanitary (SPS) requirements has remained 
unchanged since its previous review. The latest revision of the Food Safety Law entered into force 
on 1 October 2015. The revision highlighted the following aspects: (1) the management of food 
safety risks ; (2) the management of food safety at the sources; (3) the primary responsibility of 
food producers and operators in ensuring food safety; (4) the responsibility of local governments in 
ensuring food safety; (5) the supervision and management of food safe ty; (6) the social governance 
of food safety; and (7) the punishment of severe violations of the Food Safety Law.86  
 WT/TPR/M/3 75/Add.1  
 
- 415 - 
 
  Question  
6. Cambodia would appreciate if China could provide detailed information regarding SPS and 
other procedures for importation of ag ricultural products such as, cereal, prepared food and fruit.  
Reply  
For details of import procedures, see the Law of the People's Republic of China on Entry and Exit 
Animal and Plant Quarantine , the Regulations on the Implementation of the Law on Entry and  Exit 
Animal and Plant Quarantine of the People's Republic of China , and the Measures for Supervision 
and Administration of Inspection and Quarantine of Imported Fruits.  
Page 76, paragraph 3.137  
Nonetheless, during the period under review, China introduced  various regulations related to 
sanitary and phytosanitary requirements in the form of inter alia AQSIQ Decrees. These include: 
Measures for the Supervision and Administration of Inspection and Quarantine of Entry -Exit Cereals 
(AQSIQ Decree No. 177 of 2016), Measures for the Administration of Units and Personnel for 
Entry -Exit Quarantine (AQSIQ Decree No. 181 of 2016), Administrative Measures for Health Licence 
at Frontier (AQSIQ Decree No. 182 of 2016), Measures for the Supervision and Administration o f 
Inspection and Quarantine of Entry Aquatic Animals (AQSIQ Decree No. 183 of 2016), and 
Administrative Measures for Quarantine on Entry -Exit Cruises (AQSIQ Decree No. 185 of 2016).  
Question  
"…….China introduced various regulations related to sanitary and  phytosanitary requirements in the 
form of, inter alia , AQSIQ decrees……".  
7. Can China provide detailed information on administrative or legislative reform related to SPS?  
Reply  
According to the Organizational Reform Plan of the State Council,  "the managem ent responsibility 
and contingent for the entry and exit inspection and quarantine of the General Administration of 
Quality Supervision, Inspection and Quarantine shall be assigned to the General Administration of 
Customs".  
Referencing the international st andards of IPPC and OIE, China formulates and adjusts relevant laws 
and regulations on the basis of the acceptable level of domestic animal and plant epidemics.  
China's current relevant management system is scientific and effective. China will optimize its  
relevant management system in light of its own trade development and current world trade situation.  
Page 76 , paragraph 3.138  
Four institutions are in charge of the SPS system in China: The National Health and Family Planning 
Commission, the China Food and  Drug Administration (CFDA), the Ministry of Agriculture (MOA), 
and AQSIQ. The respective responsibilities have remained largely unchanged during the period under 
review87; except for some internal organizational changes in the China Food and Drug Administ ration 
(CFDA) in July 2016.  
Question  
8. If there is an internal organisational change in the China Food and Drug Administration 
(CFDA), please provide the information by specifying its new role and responsibility affecting trade.  
Reply  
At present, the institutional reform has yet been put in place. The "Three Determines" regulations 
have yet been officially issued, and the relevant functions have yet been finalized.  After the WT/TPR/M/3 75/Add.1  
 
- 416 - 
 
  completion of the institutional reform and the clarification of the responsibi lities, the Chinese side 
will inform the WTO Secretariat and relevant countries of the relevant situation in accordance with 
procedures.  
Page 76 , paragraph 3.139  
The Catalogue of Entry -Exit Commodities Subject to Inspection and Quarantine lists all imports  and 
exports subject to statutory inspection by the entry and exit inspection and quarantine authorities 
prior to their commercialization (or exit) in (from) China. Regarding imports, in November  2017 the 
Catalogue contained 4,591 tariff lines at the HS 8 -digit level. In 2017, regulatory conditions cha nged 
for some 200 tariff lines.  
Question  
9. Could China elaborate more on the changes of regulatory conditions for the above -mentioned 
200 tariff lines?  
Reply  
 
The adjustments to the Catalogue of Import and Export Commodities for Inspection and Quarantine 
of Entry -Exit Inspection and Quarantine Institutions  in 2017 are as follows:  
 
Cancel the supervision conditions of 12 10 -digit customs commodity codes "A/B", and no longer 
carry out import/exit inspection an d quarantine; adjust the supervision conditions of 17 10 -digit 
customs commodity codes from "A/B" to "A/", and only implement the entry inspection and 
quarantine without implementing the exit inspection and quarantine; cancel the supervision 
conditions of 168 10 -digit customs commodity codes "A/", and no longer implement the entry and 
exit inspection and quarantine.  
 
See the table below for details:  
No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
1 2826121000  Anhydrous aluminium  fluoride  A/B  
2 2826129000  Other aluminium  fluoride  A/B  
3 2842901100  Sodium thiocyanate  A/  
4 2903771000  Trichlorofluoromethane  (CFC-11) A/B  
5 2903791013  Trifluorochloroethane  A/B  
6 2922421000  Glutamic acid  A/B A/ 
7 2922422000  Sodium glutamate  A/B A/ 
8 2922429000  Other glutamate  A/B A/ 
9 2922499911  Chloramben  A/B A/ 
10 2922499916  Carbaryl, dimetan, promacyl  A/B A/ 
11 2922499917  Cloethocarb  A/B A/ 
12 2922499918  Hydrochloride  A/B A/ 
13 2922509020  Threonine  A/B A/ 
14 2922509090  Other amino -alcoho l-phenols, amino -acid phenols 
(including other amino - compounds  with oxygen function  A/B A/ 
15 2930400000  Methionine  A/B A/ 
16 2930901000  Cystine  A/B A/ 
17 2930909091  DL-hydroxy methionine  A/B A/ 
18 2933692100  Dichloroisocyanurate acid  A/B  
19 3302101000  Preparations based on odoriferous sub stances, of a kind 
used for the manufacture of beverages, alcoholic strength 
by volume ≤0.5%  A/B A/ 
20 3303000010  Perfume and toilet water  A/B  
21 3303000020  Perfume and toilet water  A/B  
22 3605000000  Matches, other than pyrotechnic articles of heading 3604  A/B  
23 3802109000  Activated carbon other than of wood  A/B  
24 3823120000  Oleic acid  A/B A/ 
25 3903110000  Polystyrene expansible, in primary  form A/B  
26 7202210010  Ferro-silicon, contai ning more than 55% but less than 
90% of silicon  A/B  
27 7202290010  Ferro-silicon, containing more than 30% but less than 
55% of silicon  A/B  WT/TPR/M/3 75/Add.1  
 
- 417 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
28 8404101010  Auxiliary equipment for non -pipe steam boilers using  
(renewable) biomass fuel  (eg. superheaters, ash 
removers, gas recyclers)  A/  
29 8404101090  Auxiliary equipment for other steam boilers and 
superheated water boilers (eg. superheaters, ash 
removers, gas recyclers)  A/  
30 8404102000  Auxiliary equipment for central heating hot water boilers 
(e.g. super -heaters, ash removers, gas recyclers)  A/  
31 8404200000  Condensers for water and other steam power plants  A/  
32 8407342010  Natural gas engines with displacement  ≥5.9 litres (spark -
ignition reciprocating piston engines for vehicles listed in 
Chapter 87)  A/  
33 8407342090  Other reciprocating piston engines with displacement 
>3000cc (spark -ignition reciprocating piston engines for 
vehicles listed in Chapter 87)  A/  
34 8414301400  Compressor for air conditioning machines, motor power 
>5kW  A/  
35 8414301500  Compressor for refrigerators or freezers, motor power 
>5kW  A/  
36 8414599050  Axial fans for heat elimination of electronic products  A/  
37 8414599099  Other fans  A/  
38 8415200000  Air conditioners for motor vehicles  A/  
39 8415830000  Air conditioners without refrigerating unit  A/  
40 8422309010  Filling equipment (dual -use item s control)  A/  
41 8422902000  Parts of bottling or canning machinery for beverages or 
liquid food  A/  
42 8434900000  Parts of milking machines and dairy machinery  A/  
43 8435900000  Parts of presses, cr ushers and similar machinery used in 
the manufacture of wine, fruit juices or similar beverages  A/  
44 8438900000  Parts of machines for the food and beverage industry 
(machines listed in heading 8438)  A/  
45 8458110010  Horizontal lathes for cutting metal controlled by dual -use 
items (including turning centr es) A/  
46 8458911010  Vertical lathes for cutting metal controlled by dual -use 
items (including turning centres)  A/  
47 8458912010  Other  lathes for cutting metal controlled by dual -use items 
(including turning centres)  A/  
48 8479899951  Isostatic press (dual -use item s control machines and 
mechanical appliances)  A/  
49 8479899952  Bioreactor  (dual-use item s control machines and 
mechanical appliances)  A/  
50 8479899953  Chemostat  (dual-use item s control machines and 
mechanical appliances)  A/  
51 8479899954  Continuous perfusion system  (dual-use item s control 
machines and mechanical appliances)  A/  
52 8479899955  Filament winding machines coordinated and programmed 
in three or more axes  (dual-use item s control machines 
and mechanical appliances)  A/  
53 8479899959  Other dual-use item s control machines and mechanical 
appliances  A/  
54 8506901000  Parts of manganese dioxide primary batteries  A/  
55 8506909000  Parts of other prim ary batteries  A/  
56 8507100000  Lead acid, of a kind used for starting piston engines  A/B A/ 
57 8507809010  Other electric accumulators , fuel cell  A/B A/ 
58 8507809090  Other electric accumulators , other battery  A/B A/ 
59 8507901001  Electrode of lead -acid battery, parts  A/  
60 8507901090  Other lead -acid battery parts  A/  
61 8507909000  Other battery parts  A/  
62 8517121011  GSM digital telephone sets  A/  
63 8517121021  CDMA digital telephone sets  A/  
64 8523292100  Unrecorded magnetic tapes of a width ≤ 4mm  A/  
65 8528591010  LCD monitors, specially used for navigation systems  A/  
66 8544110000  Winding wire of copper  A/  
67 8544190000  Winding wire other than of copper  A/  
68 8544200000  Co-axial cable and other co -axial conductors  A/  
69 8544302001  Wiring harness for electronically controlled diesel engines 
for vehicles  A/  
70 8544302090  Other ignition wiring sets and other wiring sets used for 
motor vehicles  A/  
71 8544309000  Other ignition wiring sets and other wiring sets  A/  WT/TPR/M/3 75/Add.1  
 
- 418 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
72 8544421100  Electric connector cables for a voltage ≤80V  A/  
73 8544421900  Other electric conductors for a voltage  ≤80V  A/  
74 8544491100  Other electric cable s for a voltage  ≤80V  A/  
75 8544491900  Other electric conductors for a voltage  ≤80V  A/  
76 8544492900  Other electric conductors for a voltage >80V but ≤1000V  A/  
77 8544601300  Electric cables for a voltage >35kV but ≤110kV  A/  
78 8544601400  Electric cables for a voltage >110kV but ≤220kV  A/  
79 8544601900  Electric cables for a voltage >220kV  A/  
80 8544609001  Gas insulated metal -enclosed power transmission line with 
rated voltage ≥500kV  A/  
81 8544609090  Other electric conductors with a  rated voltage ＞1kV A/  
82 8544700000  Optical fibre cables  A/  
83 8607191000  Axles  for railway and tramway locomotives, including parts  A/  
84 8607199000  Wheels for railway  and tramway locomotive, including 
parts A/  
85 8703214090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
86 8703215090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
87 8703219090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
88 8703223090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
89 8703224090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
90 8703225090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
91 8703229090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
92 8703234190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
93 8703234290  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
94 8703234390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capaci ty >1,500 cc and ≤2,000 cc, CKD  A/  
95 8703234990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
96 8703235190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  
97 8703235290  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capaci ty >2,000 cc and ≤2,500 cc, CKD  A/  
98 8703235390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  
99 8703235990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  
100 8703241190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >3,000 cc and ≤4,000 cc, CKD  A/  
101 8703241390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >3,000 cc and ≤4,000 cc, CKD  A/  
102 8703241990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >3,000 cc and ≤4,000 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 419 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
103 8703242190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc, CKD  A/  
104 8703242390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc, CKD  A/  
105 8703242990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc, CKD  A/  
106 8703311190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity ≤1,000 cc, CKD  A/  
107 8703311990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity ≤1,000 cc, CKD  A/  
108 8703312190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi-diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
109 8703312290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
110 8703312390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
111 8703312990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
112 8703321190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
113 8703321290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
114 8703321390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
115 8703321990  Motor vehicles, with only compression -ignition internal 
combustion piston eng ine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
116 8703322190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, C KD A/  
117 8703322290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
118 8703322390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
119 8703322990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
120 8703331190  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
121 8703331290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD A/  
122 8703331390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
123 8703331990  Motor vehicles, with only compression -ignition interna l 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
124 8703332190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
125 8703332290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 420 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
126 8703332390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
127 8703332990  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
128 8703336190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
129 8703336290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
130 8703336390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
131 8703336990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
132 8703401290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity ≤1,000 cc, CKD  A/  
133 8703401390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity ≤1,000 cc, CKD  A/  
134 8703401990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to externa l source of electric 
power, of a cylinder capacity ≤1,000 cc, CKD  A/  
135 8703402190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >1,000 cc and ≤1,500 cc, 
CKD A/  
136 8703402290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >1,000 cc and ≤1,500 cc, 
CKD A/  
137 8703402390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being char ged by plugging to external source of electric 
power, of a cylinder capacity >1,000 cc and ≤1,500 cc, 
CKD A/  
138 8703402990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >1,000 cc and ≤1,500 cc, 
CKD A/  
139 8703403190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >1,500 cc and ≤2,000 cc, 
CKD A/  
140 8703403290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >1,500 cc and ≤2,000 cc, 
CKD A/  WT/TPR/M/3 75/Add.1  
 
- 421 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
141 8703403390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >1,500 cc and ≤2,000 cc, 
CKD A/  
142 8703403990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >1,500 cc and ≤2,000 cc, 
CKD A/  
143 8703404190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >2,000 cc and ≤2,500 cc, 
CKD A/  
144 8703404290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being char ged by plugging to external source of electric 
power, of a cylinder capacity >2,000 cc and ≤2,500 cc, 
CKD A/  
145 8703404390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >2,000 cc and ≤2,500 cc, 
CKD A/  
146 8703404990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >2,000 cc and ≤2,500 cc, 
CKD A/  
147 8703405190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >2,500 cc and ≤3,000 cc, 
CKD A/  
148 8703405290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >2,500 cc and ≤3,000 cc, 
CKD A/  
149 8703405390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >2,500 cc and ≤3,000 cc, 
CKD A/  
150 8703405990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >2,500 cc and ≤3,000 cc, 
CKD A/  
151 8703406190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being char ged by plugging to external source of electric 
power, of a cylinder capacity >3,000 cc and ≤4,000 cc, 
CKD A/  WT/TPR/M/3 75/Add.1  
 
- 422 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
152 8703406290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >3,000 cc and ≤4,000 cc, 
CKD A/  
153 8703406390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >3,000 cc and ≤4,000 cc, 
CKD A/  
154 8703406990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of elec tric 
power, of a cylinder capacity >3,000 cc and ≤4,000 cc, 
CKD A/  
155 8703407190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >4,000 cc, CKD  A/  
156 8703407290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >4,000 cc, CKD  A/  
157 8703407390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >4,000 cc, CKD  A/  
158 8703407990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >4,000 cc, CKD  A/  
159 8703409090  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of 
being charged by plugging to external source of electric 
power, of a cylinder capacity >4,000 cc, CKD  A/  
160 8703501190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity ≤1,000 cc, CKD  A/  
161 8703501990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to exter nal source of 
electric power, of a cylinder capacity ≤1,000 cc, CKD  A/  
162 8703502190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
163 8703502290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 423 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
164 8703502390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
165 8703502990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
166 8703503190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
167 8703503290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
168 8703503390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for pr opulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
169 8703503990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
170 8703504190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
171 8703504290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
172 8703504390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
173 8703504990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
174 8703505190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 424 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
175 8703505290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
176 8703505390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
177 8703505990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
178 8703506190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
179 8703506290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
180 8703506390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
181 8703506990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for pr opulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
182 8703507190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
183 8703507290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to exter nal source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
184 8703507390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
185 8703507990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as mo 0tors for propulsion, other than those 
capable of being charged by plugging to exte rnal source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
186 8703509090  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
187 8703900090  Complete parts of passenger vehicles of subheading 
8703.9000  A/  
188 8705909930  Vehicles for carrying missiles, rockets, etc.  A/  WT/TPR/M/3 75/Add.1  
 
- 425 - 
 
  No. HS Code  2017 Customs HS Code  Pre-
adjustment 
Customs 
Supervision 
Conditions  Post-
adjustment 
Customs 
Super vision 
Conditions  
189 9006591000  Laser photo typesetting equipment (for roll film of a width 
＞35mm)  A/  
190 9006592900  Cameras used for preparing printing plates or cylinders, 
other than electronic colour scanners  A/  
191 9006599010  Framing cameras (rate of recording >225,000 frames/sec)  A/  
192 9006599020  Electronic framing cameras (frame exposure ≤50 
nanoseconds)  A/  
193 9018129190  Parts and accessories of co lour ultrasonic diagnostic 
instrument  A/  
194 9018139000  Parts for magnetic resonance imaging equipment 
(medical, surgical, dental or veterinary)  A/  
195 9018193090  Parts and accessories of patient monitors  A/  
196 9018903090  Parts and accessories of endoscopes  A/  
197 9018909099  Parts and accessories of other medical, surgical or 
veterinary instruments  A/  
 
Report by China  - WT/TPR/G/375  
Page 5 , paragraph 3.6  
On 1 July 2017, the integrated Customs clearance reform was rolled out nationwide. National centres 
for Customs risk prevention and control and for tariff collection and administration were established, 
and Customs clearance operations began to follow "one -time declaration and phased processing" 
approach. Meanwhile, construction of Single Window for international trade has been further pushed 
ahead. Single Window in a standard format is now implemented in all ports of entry in China. To 
furthe r increase transparency, all Customs in China have introduced the version  1.1 online integrated 
platform for businesses. The nationwide average import clearance time in 2017 was 15.87 hours, a 
36.85% decrease compared with 2016, and the average export clea rance time was 1.11 hours, a 
38.24% drop from the previous year.   
Reply  
The organization system of China Customs Risk Prevention and Control Center is presented at two 
levels: The General Administration and the directly -affiliated customs. The Customs Risk  Prevention 
and Control Center consists of two levels of risk prevention and control centres: The General 
Administration (Level 1 Risk Prevention and Control Center) and directly -affiliated customs (Level 2 
Risk Prevention and Control Center) in a 1+3+42 o rganizational mode.  
10. Request for information  
Could you please share more detail about the roles and responsibilities of the National Centres for 
customs risk prevention and control and for tariff collection and administration.  
Reply  
"1" refers to the Ri sk Prevention and Control Center of the General Administration of Customs, which 
is located in the Inspection Department of the General Administration of Customs. It is a functional 
management department for customs business risks. It has set up Level -1 risk prevention and 
control centres in Qingdao, Shanghai and Huangpu, which are responsible for the prevention and 
control of the safety access risk of goods transported by water, air and land (road, rail). The Risk 
Prevention and Control Center of the Gener al Administration of Customs (Qingdao), the Risk 
Prevention and Control Center of the General Administration of Customs (Shanghai), and the Risk 
Prevention and Control Center of the General Administration of Customs (Huangpu) are under the 
leadership of th e Risk Prevention and Control Center of the General Administration of Customs.  
Due to China's vast territory, various areas have different risk prevention and control features and 
priorities. Level -2 risk prevention and control centres are set up in 42 dir ectly-affiliated customs to 
take charge of risk prevention and control in their own custom -area, including risk prevention and 
control on taxation, safety access and other business, information report and risk disposal advice to WT/TPR/M/3 75/Add.1  
 
- 426 - 
 
  the Level -1 risk prevention  and control centre, thereby forming China's  customs risk prevention and 
control system together with the Level -1 risk prevention and control centre.  
The Tax Collection and Management Center of the General Administration of Customs shall, in 
accordance wit h the division of labour, manage the compliance of the tax collection and management 
elements and carry out risk prevention and control. The main responsibilities are:  
1. Conduct tax risk analysis, including collecting data and information related to division  of goods 
and industries, establishing and maintaining a big data resource library of tax collection and 
management; process (research and development), set tax risk parameters, physical 
inspection and evaluation instructions, and tax risk analysis model;  
 
2. If there is a major tax risk and it is difficult to effectively check (verify) or recover taxes after 
the release,  pre-release detection and disposal of tax collection and management factor risk 
will be implemented;  
  
3. Implement batch review, special audit  and sample evaluation after release; issue instructions 
such as modification and withdrawal of declaration , tax rebate and refund, evaluation,  check 
and verification to the front line of the business according to the audit results or audit 
requirements, a nd hand over relevant clues about tax -related risks to anti -smuggling 
department;  
 
4. Monitor the operation of tax risk parameters, instruction implementation and tax risk analysis 
models, and evaluate performance, improve optimization, and condu ct internal c ontrol 
supervision;  
 
5. Evaluate the declaration quality of the tax collection and management factor of division of 
goods, and regularly publish analysis reports on the tax status of commodities and industries;  
and 
 
6. Provide tariff technical support for the entire chain of supervision and regulation of customs 
clearance.  
 
  WT/TPR/M/3 75/Add.1  
 
- 427 - 
 
  COLOMBIA – BATCH  1 
Informe del Gobierno  - WT/TPR/ G/375  
1. INTRODUCCIÓN  
El párrafo 1.2 del informe del Gobierno indica que: "…China participará activamente en la gobernanza 
económica mundial, defenderá con firmeza el sistema multilateral de comercio y se opondrá al 
unilateralismo y al proteccionismo, continuará promoviendo la construcción de zonas de libre 
comercio y mejorará continuamente la coop eración Sur -Sur. El país no escatimará esfuerzos para 
hacer que la mundialización económica sea más abierta, inclusiva y equilibrada, de manera que 
todos se beneficien de ella.  
Question  
1. ¿Qué esfuerzos planea hacer China para lograr una mundialización e conómica equilibrada para 
los países cuya exportación se basa en recursos naturales del sector minero -energético y sin valor 
agregado frente a importaciones principalmente de origen chino de bienes manufacturados de media 
y alta tecnología?  
Reply  
The Chinese government is committed to expanding domestic demand, boosting expansion and 
upgrading of consumption, hold ing import expos and actively reducing import tariffs of some 
products. These measures all benefit trading partners' export to China, and are  tangible benefits 
brought by China to its trading partners.  
3. APLICACIÓN DE UNA NUEVA VISIÓN DEL DESARROLLO Y ESTABLECIMIENTO DE LAS 
NUEVAS INSTITUCIONES DE UNA ECONOMÍA ABIERTA  
3.1 Establecimiento de nuevos mecanismos para el desarrollo del comercio sos tenible  
El párrafo 3.2 del informe del Gobierno indica que: "En los últimos años se han continuado sintiendo 
los efectos subyacentes de la crisis financiera internacional, y el entorno internacional y la situación 
de China han experimentado cambios complej os y profundos. En este contexto, el desarrollo del 
comercio de China se está encontrando con dificultades y retos enormes. El país ha estado 
promoviendo activamente la optimización de la configuración del mercado internacional y la 
distribución regional d entro del país, así como la optimización de la estructura de los productos 
básicos, las entidades comerciales y los modos del comercio. Por otra parte, se están estudiando 
nuevas formas de actividad comercial y nuevos modelos de comercio…. "  
Question  
2. ¿Podría el gobierno de China ampliar la información sobre las "nuevas formas de la actividad 
comercial y los nuevos modelos de comercio " que está estudiando ese gobierno? Además del 
comercio electrónico, ¿A qué se refiere con otros modelos de comercio?  
Reply 
There are mainly three characteristics: first, offline enterprises can be connected with online 
enterprises via Internet. Second, online e -commerce brands can be sold in physical stores. Third, it 
can offer store - and scene -based experience.  
In the fut ure, China will focus on the following three aspects: first, service restructuring set up life 
and service stores that are closer to consumers. Second, accelerating the integration of online and 
offline stores, and reconstruction of new retail mode. Third,  supply chain restructuring to restructure 
services the core of new retail.  WT/TPR/M/3 75/Add.1  
 
- 428 - 
 
  3.2.4 Intensificación del proceso de apertura del sector financiero  
El párrafo 3.15 del informe de Gobierno indica que… "…En el sector de los valores, en noviembre 
de 2017 China decidió permitir que hasta el 51% del capital de las sociedades de valores, las 
empresas de gestión de fondos y las instituciones de futuros con inversión extranjera estuviera en 
manos extranjeras. Ese tope se suprimirá cuando se cumplan tres años de la ap licación de esta 
medida. En marzo de  2018, los futuros de petróleo crudo empezaron a cotizar en la Bolsa de Futuros 
de Shanghái. Esa ha sido la primera vez que se ha permitido a inversores extranjeros negociar 
contratos de futuros en China… " 
Question  
3. ¿Se planea permitir a otros sectores productivos el acceso a contratos futuros?  
Reply  
Relevant information is available at futures exchange website.  
3.6.3 Salidas de inversión directa  
El párrafo 3.41 del informe de Gobierno indica que:  "En 2016, las salidas de inversión directa de 
China se cifraron en 196.150 millones de dólares EE.UU., lo que supone un aumento interanual del 
34,7%. En 2017, las salidas de inversión directa ascendieron a 124.630 millones, esto es, 
disminuyeron un 32%. Las zonas de cooperación económica y comercial en el extranjero han tenido 
un efecto positivo en la promoción del desarrollo común de China y los países receptores. A finales 
de 2017 habían cobrado forma 99 zonas de cooperación económica y comercial en el ext ranjero 
desarrolladas por empresas chinas en 44 países , con una inversión acumulada de 30.700 millones 
de dólares, y 4.364  empresas que habían decidido ubicarse en ellas. Los impuestos pagados a los 
países de acogida ascendieron a 2.420 millones de dólares , y se habían creado 
258.000  oportunidades de empleo a nivel local. La nueva inversión en 2017 fue de 5.790 millones 
de dólares, y el valor total de la producción en ese año ascendió a 18.690 millones de dólares EE.UU ". 
(Subrayado fuera de texto).  
Question  
4. ¿Podría el Gobierno de China precisar qué requisitos debe cumplir un país para que en él se 
establezcan empresas chinas en una "zona de cooperación económica y comercial en el extranjero "?  
Reply  
The Chinese Government has consistently supported enterp rises that boast strong strength and good 
reputation, comply with local laws and regulations and proactively perform the social responsibility 
in host countries to go global, invest abroad, and participate in international competition and 
cooperation.  
Ques tion 
5. ¿En qué países ha establecido China zonas de cooperación económica y comercial en el extranjero? 
¿Qué países de América Latina cuentan con este tipo de zonas de cooperación económica y comercial 
en el extranjero?  
Reply  
By the end of 2017, Chinese enterprises have built 99 new overseas economic and trade cooperation 
zones with certain scale in 44 countries such as Cambodia, Thailand, Vietnam, Pakistan, Russia and 
Hungary.  WT/TPR/M/3 75/Add.1  
 
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  Question  
6. ¿Cuáles son los principales sectores a los que pertenecen las 4.36 4 empresas chinas que se han 
establecido en las zonas de cooperación económica y comercial en el extranjero?  
Reply  
The overseas economic and trade cooperation areas in China include: processing and manufacturing 
zones with light industry, textile, machiner y, electronics, chemical industry and building materials 
as the leading industries; resource -utilizing parks dominated by the exploitation, processing and 
comprehensive utilization of mineral, forest, oil and gas resources; agricultural industrial parks 
dominated by the development, processing, acquisition and storage of grains and cash crops; trade 
and logistics -type parks dominated by commodity display, transportation, storage, distribution, 
distribution, information processing, circulation and processing ; scientific and technological research 
and development parks dominated by the R&D, design, experiment and trial production of high and 
new technologies and products in such fields as rail transit, automobile, communication, engineering 
machinery, aerospac e, ship and marine engineering.  
Question  
7. ¿En las zonas de cooperación económica y comercial en el extranjero pueden establecerse 
actividades de distribución y comercialización de productos chinos? O sólo se establecen empresas 
de producción y ensamble de productos?  
Reply  
Yes, it does.  
6. EL CAMINO A SEGUIR  
El párrafo 6.8 del informe de Gobierno indica que… "Desde su adhesión a la OMC, y a través de un 
proceso continuo de reforma y apertura, China ha establecido un sistema económico y comercial en 
consonancia tanto con sus circunstancias nacionales como con las normas y prácticas internacionales 
en vigor. Ha contribuido en gran medida al desarrollo de la economía abierta de China y a su 
integración en la economía mundial. China es actualmente el pri ncipal interlocutor comercial de más 
de 120 países y regiones. En los próximos cinco años, China importará mercancías por valor de 
8 billones de dólares EE.UU. y atraerá 600.000 millones de dólares EE.UU. en inversión extranjera. 
China invertirá a su vez 7 50.000  millones de dólares en el extranjero, y 700 millones de personas -
tiempo viajarán al extranjero. Los países y regiones del mundo entero tendrán así acceso a un 
mercado más grande, a más capital, a más productos y a más oportunidades comerciales. " 
Question  
8. ¿Se menciona que China invertirá 750.000 millones de dólares en el extranjero en los próximos 
cinco años, China tiene previsto a que países, sectores o proyector estará destinada esa inversión?  
Reply  
For overseas investments by Chinese enterpri ses, China always adheres to the principle of 
enterprise -dominant, market -oriented, commercial principle and international practice, thus the 
enterprises will make decisions on where and how to invest, and bear risks by themselves. Thus, 
the Chinese Govern ment cannot predict it accurately.  
Question  
9. ¿Qué porcentaje de dicho monto se tiene previsto para los países de Suramérica y en qué sectores?  
Reply  
Please refer to the answer to question 8.  WT/TPR/M/3 75/Add.1  
 
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  Informe de la Secretar ía - WT/TPR/S/375  
RESUMEN  
El párrafo 11 del informe de la Secretaría indica que… "El programa piloto de reforma del régimen de 
inversión extranjera, iniciado en 2013 con la creación de la Zona Franca Experimental (Shanghái) 
de China, se amplió a 11  zonas francas experimentales durante el período objeto de examen . 
El acceso de la IED a estas zonas se basa en una lista negativa. En todos los sectores que no figuran 
en la lista negativa, los inversores extranjeros deben recibir un trato similar al otorgado a las 
empresas nacionales con respecto a los  requisitos y el procedimiento de establecimiento y 
aprobación. Salvo por lo que respecta a los procedimientos para el establecimiento regulados en la 
Ley de Sociedades, los inversores extranjeros no están sujetos a aprobación del Gobierno, sino 
solamente a la obligación de inscripción en el registro. Las autoridades consideran que la lista 
negativa que se aplica a las zonas francas experimentales es más abierta que el Catálogo de 
Inversiones que se aplica en todo el país. Las zonas francas experimentales s e han convertido en un 
instrumento importante no solo para promover las inversiones, sino también para ayudar a aumentar 
las exportaciones. Las empresas ubicadas en una zona franca experimental pueden producir tanto 
en las zonas bajo control aduanero como en las que no lo están. Los pagos de aranceles por parte 
de las empresas ubicadas en zonas sujetas a control aduanero se suspenden, y solo se hacen 
efectivos cuando los productos finales se venden al resto de China. El total de las importaciones de 
la Zona  Franca Experimental (Shanghái) de China en 2017 ascendió a 800.000 millones de yuan, 
mientras que las exportaciones se cifraron en  600.000  millones de yuan ". (Subrayado fuera de 
texto).  
Question  
10. Se solicita al Gobierno de China información más detallada sobre la diferencia en materia 
tributaria y aduanera entre una "Zona Económica Especial ", una "Zona Franca Experimental ", y una 
"Zona de Libre Comercio ", pues todas estas particularidades se mencio nan con respecto a Shanghái.  
Reply  
As for customs policies, SEZs do not have special customs supervision policies; the pilot FTZ is a 
special functional zone set up on the basis of the special customs supervision area according to the 
Kyoto Convention. Th e customs implements a special supervision system on the goods in the special 
customs supervision area. FTZ mainly means that the tariff and quantity restrictions in commodity 
trade of the two countries are cancelled by means of agreement between the membe r states that 
sign FTAs, which has no specific regional scope.  
Question  
El párrafo 28 del informe de la Secretaría indica que… "La estrategia agropecuaria más reciente de 
China tiene por objeto profundizar la reforma estructural del lado de la oferta mediante la mejora 
de las estructuras, la promoción de una producción respetuosa con el medio ambiente, la ampliación 
de la cadena industrial y de valor del sector, el fomento de la innovación y la consolidación del 
desarrollo rural. China también tiene pr evisto intensificar la reforma de los mecanismos de fijación 
de precios de los principales productos agropecuarios para fortalecer el papel que desempeñan los 
mecanismos del mercado y para reformar, con carácter experimental, el sistema de gestión de la 
tierra a fin de reducir el control sobre los derechos de explotación mientras se mantiene el principio 
de la propiedad colectiva de la tierra. No ha habido cambios en los regímenes de importación y 
exportación de productos agropecuarios durante el período ob jeto de examen. No ocurre lo mismo 
con el régimen de ayuda directa, que está siendo objeto de una compleja reforma estructural. China 
aún no ha terminado de reagrupar los programas de apoyo en megaprogramas, ni de modificar y 
descentralizar sus procedimien tos de desembolso (el modelo denominado "de grandes programas 
especiales y gestión de listas de tareas"); se están poniendo a prueba numerosos programas 
específicos en varias regiones, con carácter experimental. También se están reformando los 
mecanismos d e sostenimiento de los precios en China; algunos sistemas se han suprimido o 
reducido, ya sea en términos de alcance geográfico o en términos de precios de sostenimiento. Se 
han empezado a reducir las reservas constituidas de algunos productos. El nivel ge neral de ayuda a 
la agricultura en China siguió aumentando durante el período objeto de examen.  WT/TPR/M/3 75/Add.1  
 
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  11. El Gobierno de Colombia expresa su preocupación por las afirmaciones en este párrafo con 
respecto al hecho de que China ha seguido aumentando el nivel general de ayuda a su agricultura, 
así mismo por lo establecido en el párrafo 20 anterior a éste, donde s e afirma que China "no facilitó 
información sobre la cuantía total de las subvenciones y no se notificaron subvenciones para el 
período comprendido entre 2015 y 2017 ". 
Reply  
In the past year or so, China has been working hard to update the notifications of  subsidies to 
year 2015-2016, as the notification regulations request. Now the heavy work has been nearly 
completed. China will try its best to submit the latest subsidy notifications of central and regional 
government subsidies before the review conferenc e. 
1. ENTORNO ECONÓMICO  
1.2 Evolución económica reciente  
El párrafo 28 del informe de la Secretaría indica que… "Según un informe del FMI,… se sugiere que 
las autoridades chinas deben: impulsar más el consumo por medio del incremento del gasto social 
y de un código fiscal más progresivo; dotar de mayor protagonismo a las fuerzas del mercado 
mediante la reducción de l as subvenciones implícitas a las empresas estatales y la apertura de más 
sectores fundamentales a la inversión privada; y desapalancar más el sector privado con el 
reforzamiento continuado de la reglamentación y la supervisión, un mayor reconocimiento de l os 
activos tóxicos y una asignación de créditos que se base más en el mercado. El Gobierno no está de 
acuerdo con esa opinión y sostiene que la ley ofrece protección y trato igualitarios a todos los agentes 
del mercado. Además, por lo que respecta a los pr ogramas de subvenciones, las autoridades afirman 
que todas las empresas, independientemente del tipo de propiedad, reciben un trato igualitario y 
que no se conceden subvenciones específicas a las empresas propiedad del Estado; todas las 
empresas tienen der echo a recibir subvenciones si cumplen ciertos requisitos . Asimismo, China ha 
tomado una serie de medidas para favorecer el desapalancamiento de las empresas, como la 
adopción de un marco legal para las quiebras, las fusiones y reestructuraciones, la optim ización de 
la estructura de la deuda de las empresas y la conversión de deuda en capital, entre otras". 
(Subrayado fuera de texto)  
Question  
12. De conformidad con este párrafo, se afirma que "todas las empresas " tienen derecho a recibir 
subvenciones si cum plen ciertos requisitos. ¿Cuáles son los requisitos que debe cumplir una empresa 
china para recibir subvenciones del gobierno?  
Question  
13. ¿Qué tipo de subvenciones otorga el gobierno de china a las empresas que cumplan esos 
requisitos?  
Reply  
Please see  our central and local subsidy circular 2015 -2016, which is about to be submitted.  
Question  
14. ¿Cómo puede explicar el Gobierno de China que las subvenciones otorgadas a las empresas que 
cumplen esos requisitos son compatibles con sus obligaciones bajo el Acuerdo de Subvenciones y 
Medidas Compensatorias?  
Reply  
Please refer to our central and local subsidy circular 2015 -2016, which is about to be submitted.  WT/TPR/M/3 75/Add.1  
 
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  2. REGÍMENES DE COMERCIO E INVERSIÓN  
2.1 Marco general  
El párrafo 2.3 del informe de la Secretaría indica que… "Por lo general, las autoridades encargadas 
de redactar la legislación deben publicar las disposiciones administrativas, reglamentos y proyectos 
de normas, o una descripción pertinente de los mismos, para la formulación de observaciones por 
el público durante un plazo no inferior a 30  días, excepto si las autoridades consideran que su 
publicación no es apropiada"  
Question  
15. Podría el gobierno de China explicar ¿En qué casos se considera que "no es apropiada " la 
publicación de disposiciones administrativas, reglamentos y proyectos de normas, o una descripción 
de los mismos, para la formulac ión de observaciones por parte del público?  
Reply  
The State Council of the People's Republic of China revised the Procedures for the Formulation of 
Administrative Regu lations and Regulations on Procedures of the Rules Formulating according to the 
Legislati on Law of the People's Republic of China as amended in March 2015. The revised Procedures 
for the Formulation of Administrative Regulations and Regulations on Procedures of the Rules 
Formulating have been implemented since 1 May 2018.  
The revised Procedures for the Formulation of Administrative Regulations and Regulations on 
Procedures of the Rules Formulating have clearly specified regulations for the public opinions on 
drafts of the Procedures for the Formulation of Administrative Regulations and  Regulations on 
Procedures of the Rules Formulating. It is stated in Clause 2 of Article 13 in Procedures for the 
Formulation of Administrative Regulations that: in drafting administrative rules and regulations, the 
drafting department shall publish and so licit opinions on the draft administrative rules and 
regulations and their explanations, unless otherwise they are not announced by the decision of the 
State Council. Generally speaking, the time limit for public consultation is not less than 30 days. It 
is regulated in Clause 2 of Article 15 in Regulations on Procedures of the Rules Formulating that: in 
drafting a rule, unless it is required to keep it confidential according to law, the draft rule and its 
explanation shall be announced to the public for co mments. Generally speaking, the time limit for 
public consultation is not less than 30 days . 
Question  
16. ¿Cómo planea China cumplir las disposiciones del AFC en lo relativo a publicación de proyectos 
de normas, para aumentar la transparencia?  
Reply  
According to Article 21, 22 and 23 of Regulations on Procedures of the Rules Formulating, as well as 
the Provisions of the People 's Republic of China on the Administration of the Work of Customs 
Legislation (GACC Order No. 180), at present, the customs rul es and regulations will be published 
on customs internet website for public comments for 30 days. At the same time opinions of all 
sectors of society will be sought by means of forum, discussion meeting, hearing, etc.  
2.2 Marco y objetivos de la política c omercial, 2.2.2 Formulación y objetivos de la política 
comercial  
El párrafo 2.9 del informe de la Secretaría indica que… " Las políticas económicas, comerciales, de 
inversión y de desarrollo de China se establecen en varios instrumentos jurídicos, incluidos el Plan 
Quinquenal de Desarrollo Económico y Social Nacional y diferentes catálogos que orientan la 
aplicación de las po líticas generales. En estos se enumeran, entre otras cosas, los productos sujetos 
a licencias o impuestos de importación/exportación, las industrias que pueden recibir trato 
preferencial, y los sectores en los que se alienta, se restringe o se prohíbe la i nversión."  WT/TPR/M/3 75/Add.1  
 
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  Question  
17. Dentro de diversos instrumentos jurídicos, se establecen los productos sujetos a licencias o 
impuestos de importación y exportación, las industrias que pueden recibir trato preferencial y los 
sectores en los que se alienta, restring e o prohíbe la inversión. ¿Estos instrumentos jurídicos son 
publicados previamente para comentarios del público? ¿Una vez se ponen en vigencia estos 
instrumentos jurídicos existe algún procedimiento al cual puedan acudir empresas extranjeras para 
hacer sol icitudes, expresar inquietudes o plantear sugerencias? ¿Cómo planea China cumplir las 
disposiciones del AFC en materia de publicación para mejorar la transparencia?  
Reply  
In recent years, the Chinese government has been continuously strengthening the syste m guarantee 
of transparency of trade policy. According to provisions in the Legislation Law and other relevant 
laws and regulations of rule -making procedures in China, the STATE COUNCIL GAZETTE is an official 
publishing platform of administrative rules, re gulations and normative documents for government 
at all levels. In March 2018, the Chinese government gave a notice, in which it has made further 
arrangement for the improvement of the STATE COUNCIL GAZETTE in order to further improve the 
STATE COUNCIL GAZ ETTE's functions on improving policy transparency. Please refer to relevant 
content in our government's statement of policy for relevant contents of the trade facilitation circular.  
2.3 Acuerdos y arreglos comerciales, 2.3.2 Acuerdos comerciales regionales  y medidas 
unilaterales  
El párrafo 2.23 del informe de la Secretaría indica que… "Las autoridades indican que la estrategia 
de acelerar la aplicación de acuerdos de libre comercio (ALC) es un elemento importante de la nueva 
ronda de liberalización del come rcio de China. Desde  2002, China ha firmado 16 acuerdos de libre 
comercio con 24 países o regiones, entre los que se incluyen: la ASEAN; Australia; Chile; Costa Rica; 
Georgia; Hong Kong, China; Islandia; Macao, China; Maldivas; Nueva Zelandia; el Pakistán;  el Perú; 
la República de Corea; Singapur; Suiza y el Taipei Chino."  
Question  
18. Podría el Gobierno de China resumir ¿Cuáles son las principales diferencias entre el acuerdo 
bilateral de China con Singapur y el que China tiene con los países de ASEAN, dad o que Singapur es 
parte de ASEAN?  
Reply  
The China -ASEAN FTA (CAFTA) process was launched in 2002. Agreements on trade in goods, trade 
in services, and inves tment were respectively signed in 2004, 2007 and 2009. In 2010, CAFTA was 
completely established. In  2015, China and ASEAN officially signed the CAFTA Upgrading Protocol, 
covering the fields such as trade in goods, trade in services, investment,  and economic and 
technological cooperation.  
The China -Singapore FTA (CSFTA) was signed in 2008. It is a compre hensive FTA which covers the 
fields such as trade in goods, trade in services, movement of natural persons, investment, and 
economic and technological cooperation. On the basis of CAFTA, China and Singapore have further 
accelerated the process of trade lib eralization, expanded the depth and breadth of bilateral free 
trade relations, as well as economic and trade cooperation. In November 2015, China and Singapore 
jointly announced the launch of negotiations to upgrade the CSFTA, and further consultations on 
areas such as trade in goods, services, investment and trade related rules.  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3.4.2 Controles de precios  
El párrafo 3.172 del informe de la Secretaría indica que… "La Ley de Precios de la República Popular 
China autoriza al Gobierno a fijar u orientar los precios de un reducido grupo de productos y servicios. 
El artículo 18 de la Ley de Precios faculta a las autoridades competentes para controlar, cuando sea 
necesario, los precios de: i) los productos que ti enen una importancia significativa para la economía WT/TPR/M/3 75/Add.1  
 
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  nacional y para los medios de subsistencia de la población; ii) una serie limitada de productos raros; 
iii) los productos sujetos a monopolios naturales; iv) los servicios de utilidad pública clave; y v) los 
servicios públicos clave. Además, las leyes y reglamentos sobre sectores específicos de la industria 
o los servicios pueden incluir disposiciones acerca de la administración de los precios en sus 
respectivos ámbitos, que reiteren que las correspondient es empresas y proveedores de servicios 
deben seguir los principios y normas establecidos en la Ley de Precios. Entre estas leyes y 
reglamentos figuran la Ley de Administración de Productos Farmacéuticos, la Ley de Ferrocarriles, 
la Ley de Correos, la Ley d e Enseñanza Obligatoria, la Ley de Servicios Notariales, la Decisión del 
Comité Permanente del Congreso Nacional del Pueblo sobre la Administración de la Autenticación 
Judicial, la Ley de Aviación Civil y la Ley de Bancos Comerciales. En el cuadro 3.16 se resumen las 
leyes y reglamentos relacionados con los controles de precios".  
El párrafo 3.17 3 del informe de la Secretaría indica que… "Los controles de precios son de dos tipos: 
"precios fijados por el Gobierno" o "precios orientados por el Gobierno". Los primeros son precios 
fijos determinados por las autoridades competentes, mientras que los segundos los determinan las 
empresas, pero dentro de un rango de precios que establecen los correspondientes departamentos 
de fijación de precios u otros departamento s gubernamentales conexos, entre cuyos límites los 
precios reales pueden fluctuar. Los productos básicos y servicios sujetos a controles de precios están 
enumerados en el Catálogo de Precios establecidos por el Gobierno central y en los catálogos de 
precio s establecidos por los gobiernos locales de las provincias, las regiones autónomas y los 
términos municipales, y aprobados por el Consejo de Estado. El actual Catálogo de Precios 
establecidos por el Gobierno Central fue publicado por la NDRC el 8 de agosto  de 2015 (Orden 
Nº 29 [2015] de la NDRC) y entró en vigor el 1º de enero de  2016.  
Question  
19. En razón a los mecanismos de control de precios existente en China a nivel nacional y local, 
¿Cómo se garantiza en ese país la libre competencia entre los produc tos locales y extranjeros?  
Reply  
The same commodity or service provided by operators from different countries shall be subject to 
the same price policy in the Chinese market. If the goods or services provided by foreign operators 
fall within the scope of government pricing or government guidance prices, the  government pricing 
or government guidance price policy  for the same goods or services provided by Chinese operators  
will apply . Therefore, government pricing or government guidance prices will not affec t the free 
competition between Chinese and foreign products.  
 
  WT/TPR/M/3 75/Add.1  
 
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  COLOMBIA – BATCH 2  
Informe de la Secretar ía - WT/TPR/S/375  
4. POLÍTICAS COMERCIALES, POR SECTORES  
4.4 Servicios , 4.4.1 Telecomunicaciones , párrafo 4.129  
En cuanto a los operadores de redes inalámbricas virtuales (MVNO), China ha seguido aplicando su 
programa experimental para empresas de reventa de servicios de comunicaciones móviles iniciado 
en mayo de 2013. Hasta ahora, 42 empresas privadas en total han obtenido una autorización 
provisiona l. Al final de 2016, el número acumulado de usuarios excedía de 43 millones. Además, el 
programa experimental permite ya a las empresas privadas comprar servicios de telecomunicaciones 
móviles (servicios de control y corrección automáticos, de normalizació n y de rectificación para 
gestionar el registro de nombres reales, los mensajes basura y las llamadas no deseadas) a las 
empresas ya establecidas y venderlos a los usuarios finales.  
Question  
¿Podría China dar más información sobre el "programa experimental  para empresas de reventa de 
servicios de comunicaciones móviles ."?  
Reply  
China launched the mobile communication resale business pilot on 17 May 2013. The pilot approvals 
for mobile communication resale business were issued to 42 enterprises in five batc hes. By the end 
of 2017, the cumulative number of users developed by these enterprises exceeded 60 million, 
accounting for more than 4% of the total number of mobile users nationwide. On 28 April 2018, 
China issued the Notice on the Official Commercializat ion of Mobile Communication Resale Business  
(Ministry of Industry and Information Technology, Tong Xin [2018] No. 70). On 1 May 2018, the 
mobile communication resale business was officially  commercialized from its previous pilot status, 
and began to open to foreign investment in accordance with WTO commitments.  
Párrafo 4.135  
Las disposiciones del Aviso sobre actividades comerciales transfronterizas se aplican a las empresas 
o los particulare s que alquilan líneas privadas internacionales o redes privadas virtuales y llevan a 
cabo actividades comerciales de telecomunicaciones transfronterizas sin autorización o aprobación 
de las autoridades de telecomunicaciones de China y sin reunir las condic iones exigidas para el 
desempeño de tales actividades. El Aviso establece que las empresas comerciales extranjeras y las 
empresas multinacionales, debido a su demanda de líneas especiales para el establecimiento de 
redes transfronterizas, pueden alquilar s ervicios de redes privadas virtuales a una empresa de 
servicios de telecomunicaciones reconocida legalmente por la Junta de Importación y Exportación 
de Servicios de Comunicaciones Internacionales. Según las autoridades, la actividad ordinaria de 
esas empr esas no resultará afectada por las disposiciones del Aviso. A ese respecto se han expresado 
opiniones discrepantes, en particular por las asociaciones de empresas extranjeras establecidas en 
China y por otros Miembros de la OMC en el Consejo del Comercio d e Servicios.  
Question  
¿Cuál es el objetivo y principales funciones de la "Junta de Importación y Exportación de Servicios 
de Comunicaciones Internacionales "?  
Reply  
The International Communications Import and Export Bureau is the connection point between t he 
domestic and international communication networks, with the aim to realize interconnection and 
data exchange with the international communication networks.  WT/TPR/M/3 75/Add.1  
 
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  4.4.2 Servicios financieros  
Question  
En relación con los cambios en la reglamentación de los pagos electrónicos 4.4.2.7 ¿podría China 
explicar si las "Medidas Administrativas sobre los Servicios de Pago en Línea de Instituciones de 
Pago No Bancarias" reglamentan también la forma en que las Pasarelas de Pago (i.e. Paypal) pueden 
funcionar en el mer cado de China?, si no ¿Cuáles son las condiciones para la prestación de estos 
servicios de intermediación en China?  
Reply  
According to the current laws, the market entities with payment business in China include 
commercial banks and non -bank payment instit utions (hereinafter referred to as the payment 
institutions), which should obtain banking licen ces and payment business approval licen ces 
respectively. Based on the types of payments that can be carried out by the payment institutions 
under the Administrat ive Measures for the Payment Services of Non -Financial Institutions  (PBOC 
Order [2010] No. 2) issued by the People 's Bank of China, Administrative Measures for Online 
Payment Services of Non -Bank Payment Institutions  (PBOC Notice [2015] No. 43) puts forwar d clear 
regulatory requirements for payment institutions to conduct online payment services. In China, 
online payment is mostly used by commercial banks or payment institutions to provide online 
commercial tenants with online acquiring services. The busine ss model is similar to Paypal online 
acquiring services for Amazon. If an institution intends to provide online acquiring services to 
commercial tenants in China, it shall first obtain a payment business licen ce to become a payment 
institution, and conduct  business in line with relevant business administration measures.  
Question  
Se menciona en el párrafo 4.172 que ninguna de las reglamentaciones que existen sobre pagos 
electrónicos establece condiciones de acceso a mercado para empresas extranjeras. ¿Podría  China 
explicar si existen otro tipo de restricciones para empresas extranjeras, como por ejemplo algún tipo 
de discriminación frente a los proveedores nacionales?  
Reply  
On 21 March 2018, the People 's Bank of China issued the No. 7 Notice that clarified the access 
(including conditions and procedures) and regulatory policies of foreign -invested payment 
institutions, and granted full national treatment to such payment institutions. The No. 7 Notice and  
the Administrative Measures for the Payment Services of Non -Financial Institutions  (PBOC Order 
[2010] No. 2) together constitute the regulatory framework for both domestic and foreign -invested 
payment institutions, and achieve unified access conditions an d regulatory policies for such payment 
institutions.  
 
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  COSTA RICA  
Report by the Secretariat - WT/TPR/S/375  
Page 33, paragraph 2.12  
In order to further liberalize the domestic market, China intends to focus on: the modernization of 
existing industries; the  development of clean and knowledge -based industries; and the services 
sector.  
Question  
Can China please provide further information on the liberalization of the services sector? Are there 
specific sectors in which China plans to liberalize in the near future?  
Reply  
On 28 June 2018, National Development and Reform Commission and the Ministry  of Commerce 
jointly issued the Special Administration Measures (Negative List) on Access to Foreign Investment 
(2018 Edition) . The 2018 Foreign Investment Negative List introduces liberalization measures in 
22 fields, and the restrictive measures have red uced from 63 to 48, accounting for nearly a quarter 
of the total. In the financial sector, foreign equity proportion restriction on the banking sector is 
cancelled; foreign equity proportion restriction on enterprises specialized in securities, fund 
manage ment, futures and life insurance is relaxed to 51%; and all foreign equity proportion 
restrictions on the financial sector will be cancelled in 2021. In the infrastructure sector, foreign 
capital restrictions are cancelled in trunk railway networks and pow er grids. In terms of 
transportation, foreign capital restrictions are cancelled in passenger railway transportation 
companies, international maritime transportation and international shipping agencies. In terms of 
trade circulation, foreign capital restri ctions are cancelled in gas stations and purchase and wholesale 
of grain. In the cultural sector, the ban on prohibiting investment in internet access service providers 
is abolished.  
Page 36, paragraph 2.28  
Regarding the relationship with Hong Kong, China,  a new C loser Economic Partnership Arrangement 
(CEPA) Investment Agreement between the mainland and the Hong Kong Special Administrative 
Region (SAR) was signed on 28  June 2017; it has been implemented since 1 January 2018. The 
agreement includes investmen t access, protection and promotion. In terms of investment access for 
the areas not included in the CEPA Trade in Services Agreement (such as manufacturing), the 
mainland is open to the Hong Kong SAR through the negative list with 26 non -conforming measure s. 
Further opening measures are stipulated for ship manufacturing, aircraft manufacturing, resource 
and energy exploitation and financial market investment vehicles. The Hong Kong SAR will be 
granted most -favoured treatment in investment areas where the ag reement applies. The mainland 
and the Hong Kong SAR offer each other investment protection in terms of expropriation, 
compensation and transfer. The agreement includes a specific investor -to-government dispute 
resolution system.  
Question  
Can China please p rovide further information on the specific investor -to-government dispute 
resolution system included in this Agreement?  
Reply  
According to the CEPA Investment Agreement, both parties shall negotiate and resolve the dispute 
in accordance with the working m echanism of Article 17 (Investment Working Group) of the 
Agreement.  WT/TPR/M/3 75/Add.1  
 
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  Page 67, paragraph 3.97  
During the period under review, China continued to provide a number of financial incentives to 
different sectors and industries. According to the authorities, these  measures are in place to 
accelerate transformation and upgrading of traditional industries, foster infant industries, stimulate 
innovation, promote development in remote areas, enhance competitiveness of small and medium 
enterprises, and attract FDI. Furt hermore, support was also granted with a view to protecting the 
environment, reducing emissions, and conserving energy. Generally, support is granted by the 
central or local governments through tax preferences, direct transfers, and access to credit.  
Quest ion 
With what criteria must a sector or industry comply with in order to receive financial incentives? How 
do Chinese authorities prioritize the sectors and industries which can opt for these forms of 
assistance?  
Reply  
Please refer to China's notification of subsidies for 2015 -2016.  
Page 68, paragraphs 3.104 -3.105  
In July 2016, China notified its support programmes maintained at the sub -central level during the 
period 2001 to 2014.65 The notification contains 100 different programmes from 19  province 
administrations. Under these programmes, incentives are provided to: specific industries; "famous -
brand" products and enterprises; small and medium enterprises; foreign trade enterprises;  foreign -
invested enterprises; less developed regions; and rural areas (Table A3.3). Support programmes 
maintained by 13 provinces are not covered by this notification. The authorities indicate that these 
would be covered in a forthcoming notification for the years 2015 and 2016.  
For most projects, no information was provided on the total subsidy amount. Furthermore, only 
five programmes were still in force at the time of notification, while 95 programmes had expired. 
Some of the programmes at the sub -central government level have the same name as projects at 
the central government level, e.g. the subsidy for electric household appliances.  
Question  
Can China please provide more detailed information about these support programmes, including the 
specific prod ucts they cover, as well as the reasons why it has not been able to provide information 
on the total subsidy amount.  
Reply  
Since joining the WTO, the Chinese government has always attached great importance to subsidy 
notifications. In October 2015, China submitted its third central government subsidy notification to 
the WTO; in July 2016, China overcame the difficulties in insufficient experience and capability and 
information collection and submitted a sub -central subsidy notification to the WTO covering 100 local 
subsidy policies of 19 provinces and three  cities with independent planning. China's efforts to fulfil 
its obligations in subsidy notifications have been affirmed by many Members. In July 2018, China 
tried to submit its fourth central government subsidy notification and the second sub -central subsidy 
notification before the WTO 's seventh review on China's trade policies. Among them, full coverage 
was realized in the sub -central subsidy notification for the first time.  
 
Of course, the quality of ou r notifications needs to be further improved: as a developing country, 
China has limited resources to put into subsidy notification; meanwhile, China is a large country with 
a vast territory and a large population, and it requires a significant amount of w ork to completely 
collect and grasp the information on sub -central subsidies at various levels of the whole country. 
Despite all this, China is still doing its utmost to continuously improve our work and timely submit 
full subsidy notifications.  
 WT/TPR/M/3 75/Add.1  
 
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  Page 72, paragraph 3.117  
AQSIQ is in charge of national quality, metrology, entry -exit inspection, animal and plant quarantine, 
certification, accreditation, standardization, and administrative law enforcement. AQSIQ is also the 
body in charge of ensuring that both  imports and exports comply with technical regulations and 
certification requirements.76 AQSIQ administers the Certification and Accreditation Administration of 
China (CNCA). It is also China's TBT Enquiry Point and responsible for submitting TBT notificat ions. 
Question  
The Chinese government has made a series of reforms regarding  the administration  of Free Trade 
Agreements  and the role of AQSIQ. Can China update WTO Members about the new AQSIQ structure 
and its role?  
Reply  
At present, the institutional reform has not yet completed. The three -decision regulation has not yet 
been officially issued, and the relevant functions have not yet been finalized. After the institutional 
reform has finished and responsibilities finalized, the Chinese side will inform  the WTO Secretariat 
and relevant countries about the related information in accordance with the procedures.  
Page 140, paragraph 4.85  
The Government's main initiatives in recent years to promote manufacturing in China included the 
adoption of the "China Ma nufacturing 2025" plan, which was issued on 8 May 201547; it is a ten-year 
national plan aimed at comprehensively upgrading China's manufacturing sector. The authorities 
state that the plan includes strategies f or various industries including "strategic em erging 
industries", which had been announced previously.48 The plan identified a three -step strategy, nine 
priority tasks49, ten key sectors50 and five major projects.51 Its guiding principles are for 
manufacturing to be innovation -driven, emphasize qualit y over quantity, achieve green 
development, optimize the structure of Chinese industry, and nurture human talent. The three -step 
strategy aims at China: becoming a strong manufacturing country by 2025 (step 1); be ing able to 
compete with develo ped manufact uring powers by 2035 (step 2); and becoming a leading 
manufacturing power by the year  2049 (step 3). In order to implement the strategy, China plans to 
set up pilot projects in cities and city clusters as well as national demonstration zones for the 
implem entation of the "China Manufacturing 2025" plan. China also plans, inter alia,  to launch a 
special project to increase diversity and improve quality. The authorities state that the plan will be 
implemented on an equal basis for all enterprises established in China. At the time of writing this 
report, no pilot projects or other policy measures had been implemented yet.  
Question  
Could China please provide more information on the pilot projects. Which cities and sectors do they 
cover? To date, which have been  the main challenges for the implementation of the "China 
Manufacturing 2025" plan?  
Reply  
Made in China 2025 is in essence a guiding strategic plan to promote industrial upgrading. Its 
implementation always adheres to the principle of fairness and justice,  and it treats domestic and 
foreign -funded enterprises equally. There is no restrictive, discriminatory and exclusive content. The 
purpose of Made in China 2025 is to guide the manufacturing industry in China  to improve quality  
and efficiency and realize transformation  and upgrading. It is guidance and predicti on oriented . 
The current situation is that in some key areas, we are facing international technical blockades and 
export restrictions, which makes key industrial chain s in China  face major security ri sks of supply 
cut. WT/TPR/M/3 75/Add.1  
 
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  Page 154, paragraph 4.141  
Another key provision of the law is its article 37 relating to data localization whereby "personal 
information and other important data gathered or produced by critical information infrastructure 
operators during operations within the mainland territory of China shall be stored within mainland 
China. Where due to business requirements it is truly necessary to provide these data and 
information outside the mainland, they shall follow the measures jointly form ulated by the State 
network information departments and the relevant departments of the State Council to conduct a 
security assessment; but where laws and administrative regulations provide otherwise, they shall 
follow those provisions".  
Question  
Can China  provide further information on what would be considered "critical information 
infrastructure operators " and "truly necessary " for business requirements? How has China 
implemented this law in light of its obligations under the GATS regarding data processin g?  
Reply  
The purpose of the critical information infrastructure protection system is to ensure the security of 
information systems and facilities that involve national security, national economy, people's 
livelihood and public interests. From the situatio n of each country, it is quite complicated to specify 
the critical information infrastructure facilities. It is a process of continuous improvement and 
adjustment in practice. At present, in accordance with the Network Security Law of the People's 
Republic  of China, Cyberspace Administration of China is working with relevant departments to study 
the formulation of the Regulations on the Security Protection of Critical Information Infrastructure. 
It aims at guiding related sectors to specify scopes of critic al information infrastructure.  
According to GATS regulations, in order to achieve national policy objectives, members have the 
right to adopt new regulations on and administer the services provided within their territories. This 
is the legitimate right all owed by the WTO. The purpose of formulating the Network Security Law is 
to safeguard national network security, protect the interests of the people and promote the orderly 
flow of network information in accordance with the law. The law treats Chinese and f oreign 
companies equally and does not affect China to fulfil its relevant WTO commitments.  
Page 158, paragraph 4.162  
On 22 July 2015, the CIRC released the "Interim Measures for Regulating the Internet Insurance 
Business", which took effect on 1 October 2015. The measures allow both domestic and foreign 
insurance companies to engage in Internet insurance business. In addition, for selected insurance 
products (e.g. accident insurance, some life insurance policies, home property insurance, liability 
insuran ce, credit insurance, and property insurance) the measures allow insurers to expand their 
operations to provinces without the need to establish a licen ced branch office.  
Question  
Can China provide further information on the scope of the Internet Insurance Business? Do these 
activities require establishment by foreign providers?  
Reply  
The Interim Measures for the Supervision of Internet Insurance Business allows domestic and foreign 
insurance institutions to engage in internet insurance business. Internet i nsurance business  in the 
Interim Measures  refers to that insurance institutions  close an insurance contract and provide 
insurance services through self-operated network platforms and third -party network platforms  based 
on internet and mobile communication technologies . Insurance institution  in the Interim Measures 
refers to insurance compan ies and insurance professional intermediary institution s that have been 
approved by the insurance regulatory authorit ies and registered in accordance with the law.  
  WT/TPR/M/3 75/Add.1  
 
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  NEW ZEALAND  
Report by the Secretariat - WT/TPR/S/375  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic D evelopments , page 15, paragraph 1.2  
 
"Within services, e -commerce sales and tourism services imports have been particularly strong.4" 
Question  
• Could China explain  the drivers behind strong performance in e -commerce sales and tourism 
services imports?  
Reply  
Regarding e -commerce sales, according to statistics from China Customs, it inspected and released 
56.59 billion yuan of cross -border e -commerce imports in 2017, a year -on-year increase of 120%. 
Domestically, China's market demand was large. E -commerce ecosystem composed of business 
entities developed healthily. Internationally, bilateral and multilateral e -commerce cooperation 
mechanisms created favourable conditi ons for expanding imports.  
As for tourism services, China's tourism service imports were strong mainly because of three factors. 
The first was source of tourists. China's economic development promoted tourists to travel overseas. 
The number of outbound tou rism destination countries (regions) that were officially available for 
group travel continued to increase. More and more travel agencies in China also began to offer 
outbound travel services. Travel APPs have greatly facilitated ticket and room booking, t ravelling 
and sharing after travelling. The second factor concerned tourism destinations, which provide various 
conveniences for tourists. For example, many countries introduced visa facilitation measures to 
motivate Chinese tourists. Accelerated globaliza tion of overseas payment also facilitated tourists. 
The third factor was the relationship between source of tourists and tourism destinations. New flight 
routes opened by China have expanded space for outbound tourism. International tourism 
cooperation and  exchanges have been continuously strengthened.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation and requirements , page 45, paragraph 3.2  
"China has continued to make efforts to reform and harmonize customs procedures across its 
42 customs areas with a total of more than 200 individual offices. In June 2016, the National 
Customs Clearance Integration Reform was launched as a pilot phase; it was rolled out nationwide 
in July 2017. The Reform covers the whole import declaration process and has as a main objective 
improving the efficiency of clearance procedures. The authorities indicate that nationwide clearance 
times were reduced to an average of 16.7 hours in 2017, from over 22 hours in 2016. According to 
the authorities, about  one third of imports are now declared through single windows. "  
Question  
Could China provide an update on when all or at least a large part of the imports will be declared 
through Single Windows?  
Reply  
At present, the application rate of the main business  declared through Single Windows in China's 
international trade has reached 70%.  
3.1.3.5 Tariff exemptions and concessions , page 50, paragraph 3.22.  
Paragraph 3.1.3.5 notes that tax exemption may apply to  "goods imported for daily use and valued 
at less than RMB 8,000 per person per day. " WT/TPR/M/3 75/Add.1  
 
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  Question  
• Could China explain the policy rational  behind this exemption and indicate the broad categories 
of goods to which this exemption applies?  
Reply  
The baggage items that individuals carry in and out of the country and the items that are sent in 
and out by mail shall be limited to reasonable quantities for personal use.  
3.3.2 Standards and other technical requirements , page 74 , paragrap h 3.124  
In the Committee of Technical Barriers to Trade, between January 2016 and February 2018, 
22 specific trade concerns ( STCs) were raised by Members regarding TBT measures maintained or 
planned by China, including 13 new STCs.81 These STCs refer to a wide range of issues, including 
specific product regulations (cosmetics, medical p roducts, furniture, chemicals, vehicles, coal) and 
new legislation on standards and cybersecurity.  
Question  
• Would China please explain how its measure requiring animal testing for imported non -special 
use/ordinary cosmetics is consistent with China's national treatment commitments under 
Article III of GATT 1994?  
Reply  
1.  Regarding national treatment: China's safety supervision on imported cosmetics mainly 
focuses on final products. It is impossible to manage the whole process of imported cosmetics fro m 
R&D to production and circulation as to domestic cosmetics. According to China's cosmetics 
regulations, imported cosmetics are currently subject to examination and approval. It should be 
noted that although there are differences in the management between  imported non -special use 
cosmetics and domestic non -special use cosmetics, requirements on relevant application materials, 
safety technical standards, etc. are completely consistent. Therefore, there is no such thing as 
inconsistent treatment. Starting fr om 2017, China began to launch pilot reform of imported 
non-special use cosmetics in Shanghai Pudong New Area and ten other pilot free trade zones, and 
adjusted management on them from examination and approval to filing. Besides, the Regulations 
for the Su pervision and Administration of Cosmetics (Revised Draft for Review) , which is being 
revised, also proposes the same management approach for imported and domestic products based 
on the principle of safety risk management.  
2.  Regarding animal alternative testing: China actively supports the Replacement, Reduction and 
Refinement principle for animal testing to protect animal welfare, and is committed to promoting the 
use of alternatives to animal testing in safety evaluation of cosmetic products. The former China 
Food and Drug Administration checked relatively mature cosmetic alternative testing methods, and 
included such methods as in vitro 3T3 neutral red uptake phototoxicity for chemical raw materials 
for cosmetics, transcutan eous electrical resistance of in vitro rat skin corrosion, and skin 
photoallergic reactions into the Safety and Technical Standards for Cosmetics (2015) . At present, 
China is strengthening the management of new raw materials for cosmetics, establishing a d atabase 
of existing raw materials for cosmetics, accumulating experience in the safe use of cosmetic raw 
materials, and promoting product safety risk assessment. It is also accelerating the construction of 
cosmetics animal alternative testing verification research institutions, and promoting the 
construction of a research and verification system for cosmetic alternative toxicology methods. In 
this process, China is willing to strengthen technical exchanges and cooperation with all parties, and 
realize the w ide application of alternatives to animal testing in the safety evaluation of cosmetic raw 
materials.  
3.3.6 Government procurement , page 92, paragraph 3.198  
The Government Procurement Law retained its "buy -domestic" (Article 10) provision when it was 
amend ed in 2014. The provision requires that procuring entities purchase domestic goods, 
construction projects and services, except in circumstances where: (i) the goods, construction, or WT/TPR/M/3 75/Add.1  
 
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  services required are unavailable in China or, if available, cannot be pr ocured on reasonable 
commercial terms; (ii) the goods, construction, and services are procured for use abroad; or 
(iii) where otherwise provided for by other laws and administrative regulations.  
Question  
• Are the procurement opportunities that meet one of t he three exceptions above advertised on 
a same platform as the buy -domestic procurement opportunities?  
Reply  
The procurement in accordance with the three exceptions specified in Article 10 of the Government 
Procurement Agreement shall be published in accordance with the relevant provisions on the 
disclosure of government procurement information.  
Question  
• If the answer to the first question is yes, how do foreign businesses become notified of these 
procurement opportunities?  
Reply  
The procurement of imp orted mechanical and electrical products in government procurement of 
goods shall be released in accordance with the relevant regulations of the Ministry of Commerce 
(MOFCOM).  
• What percentage of contracts were awarded to foreign businesses under these 
three exceptions in the last four years?  
Reply  
China does not have this statistic.  
4 TRADE POLICIES BY SECTOR  
4.1.3 Policy instruments , 4.1.3.2.1  Support measures, page 117, Table 4.7  
Table 4.7 sets out the legal basis for several support measures including for fisheries in the 
period  2009 to 2014. In responses to questions asked by New Zealand in China's 2014 and 2016 
Reviews on whether its reported policies (now listed in Table 4.7) would be notified under the SCM 
Committee, China stated in 2014 that it was  still in the process of verifying information and that "In 
the course of China's preparation for the next notification if certain programme s are identified to be 
specific for the fisheries sector and should be subject to the notification obligation under the SCM 
Agreement, they will be included in the notification. (WT/TPR/M/300/Add.1). In 2016 China stated 
that, "at present, China is reviewing fishery subsidy and will deliberate on the notification issue 
based on the review results and the working progres s." 
Question  
• What update can China provide on its fishery subsidy reviews?  
Reply  
China's central and local fishery subsidy notifications for 2015 -2016 have been updated . China will 
continue to work hard to fulfill the obligation of subsidy notification under the SCM.  
Question  
• To what extent can China confirm whether the information in its Reviews will be included  in 
its notification under the SCM Agreement?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The WTO allows its members to define the contents and scope of subsidy notification based on their 
own interpretation of relevant clauses. Given the difference in interpretation, the degree of 
completeness of the notification varies across members. China h as included some of subsidy policies 
on steel and fishery in the central and sub -central notifications that China has submitted, such as 
the incentive fund for energy -saving technology, the special reward and subsidy fund for the 
elimination of excess and out-dated capacity, the special fund for clean energy, and the subsidy for 
the changing of production and jobs of fishermen. In addition , in order to  faithfully fulfill the 
transparency obligation, China included in the notification information related to export  subsidy 
executed in the past. As far as we know, these export subsidy programme s have all been abolished 
or terminated. Some members have accused China in the form of counter -notification of the 
existence of certain export subsidies. We have already  responded to them at the SCM Committee 
and pointed out the problems in these notifications such as incorrect and repeated information, or 
that relevant programme s have been abolished.  
Question  
• When can an up -to-date and complete notification under the SCM  Agreement be expected?  
Reply  
Since joining the WTO, the Chinese government has always attached great importance to subsidy 
notifications. In October 2015, China submitted its third central government subsidy notification to 
the WTO; in July 2016, China overcame the difficulties in ins ufficient experience and capability and 
information collection and submitted a sub -central subsidy notification to the WTO covering 100 local 
subsidy policies of 19 provinces and three  cities with independent planning. China's efforts to fulfill 
its obliga tions in subsidy notifications have been affirmed by many Members . In July 2018, China 
tried to submit its fourth central government subsidy notification and the second sub -central subsidy 
notification  before the WTO 's seventh review on China's trade polic ies. Among them, full coverage 
was realized  in the sub -central subsidy notification for the first time.  
Of course, the quality of our notifications needs to be further improved: as a developing country, 
China has limited resources to put into subsidy notif ication; meanwhile, China is a large country with 
a vast territory and a large population, and it requires a significant amount of work to completely 
collect and grasp the information on sub -central subsidies at various levels of the whole country.  
Despite  all this, China is still doing its utmost to continuously improve our work and timely submit 
full subsidy notifications . 
Page 119, Table 4.8  
Table 4.8 sets out Support Programmes and Budget Outlays 2014 -17. There are no programme s 
and budget outlays noted  for fisheries,  whereas there are several for agriculture and f orestry.  
Question  
• Does the absence of any programmes and budget outlays for fisheries mean that the 
programmes noted in Table 4.7 for 2009 to 2014 have now ceased and that China has no 
further  support programmes and budget for the fisheries sector?  
Reply  
China reflects verified and available information in central and local subsidy notifications, including 
some subsidy policies related to fishery. China's central and local fishery subsidy notif ications 
for 2015-2016 have been updated . China will continue to work hard to fulfil the obligation of subsidy 
notification under the SCM.  
Pages 117 to 123  
In UN SDG Target 14.6 Leaders committed to by 2020 prohibit certain forms of fisheries subsidies 
which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to WT/TPR/M/3 75/Add.1  
 
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  IUU fishing, and refrain from introducing new such subsidies. New Zealand notes positively the 
reported action that China has taken against Chinese companies whose  vessels were found illegally 
fishing in the waters of Guinea. This includes reports that China has cancelled subsidies, including 
fuel subsidies, to five vessels operated by the Lian Run Pelagic Fishery Company Ltd; the Fujian 
Pingtan Hengli Fishery Compa ny Ltd; and the Cangzhou Bohaixinqu Fuhai (Chinese companies see 
subsidies cancelled and permits removed for illegal fishing, 22 Mar ch 2018, World Fishing and 
Aquaculture, www.worldfishing.net, accessed 25 June 2018).  
Question  
• Could China please identify t he subsidies that it is reported to have cancelled and how they 
are reflected in either Table 4.7, Table 4.8 or T able 4.9?  
• Could China elaborate on its policies around  cancelling subsidies to IUU operators and vessels?  
• For how long are such subsidies cance lled? 
Reply  
China carries out relevant work in accordance with  the Fisheries Law of the People 's Republic of 
China , and has notified WTO its some fishery subsidies. Please refer to the latest notification of 
subsidies submitted by China.  
4.2.2 Energy , page  133, paragraph 4.54  
China is the world 's largest consumer of energy. Para graph  4.63 outlines China's Energy Production 
and Consumption Revolution Strategy (2016 -2030) and goals to build a green, low carbon and highly 
efficient modern energy system. Para graph 20 of the Secretariat report notes that China provides 
substantial support for, inter alia  new energy vehicles.  
Question  
• New Zealand commends China's efforts to accelerate the energy transition.  Could China 
outline the long term  end goal for any government support schemes?  
Reply  
China describes its long -term goal of accelerating energy transformation in the Energy Production 
and Consumption Revolution Strategy  as: 
By 2020, China will fully launch the layout of energy  revolution system, promote clean fossil energy, 
fundamentally reverse extensive  growth of energy consumption, and implement both policy 
orientation and constraints.  
From 2021 to 2030, the use of renewable energies, natural gas and nuclear energy will continue to 
grow, while the use of high -carbon fossil energy will be greatly reduced . Total energy consumption 
will be controlled  within 6 billion tonnes  of standard coal, including about 20% of non -fossil energies 
and about 15% of natural gas. New energy demand will be m ainly met by clean energies . Carbon 
dioxide emissions per unit of GDP will be 60% -65% lower than that in 2005. Carbon dioxide 
emissions will peak around 2030 and strive to reach the peak as soon as possible. Energy 
consumption per unit of GDP (current pric e) will reach current  world average. Energy efficiency of 
major industrial products will reach international  leading level. China's independent innovation 
capabilities will be comprehensively improved. Its energy science and technology level will join the 
front ranks internationally. Its modern energy market system will be more mature and perfect. Its 
energy self -sufficiency abilities will be maintained  at a high level, and international energy resources 
will be better utilized . A modern energy system will be initially constructed . 
Looking ahead at 2050 , China's total energy consumption will be basically  stable, of which more 
than 50% will be non -fossil energies. An energy -conserving and consumption -oriented society will 
be built . China's energy efficiency, energy technology, energy and equipment will reach world 's WT/TPR/M/3 75/Add.1  
 
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  highest standard. China will become an important participant in global energy governance,  and build 
a modern energy system to guarantee energy modernization . 
4.4.1 T elecommunications , page 153, paragraph 4.136  
China has introduced a new cybersecurity law that, among other things, controls the cross -border 
transfer of a wide range of information. The use of information is an important component of modern 
business; both goods and services trade . The full scope of application of the law remains to be 
clarified  through implementing regulations.  
Question  
• When does China anticipate that implementing regulation giving full effect to its Cybersecurity 
Law will be in effect?  
Reply  
The Regulations on Prote ction of Critical Information Infrastructure Security and Measures for the 
Assessment of Personal Information and Important Data  Exit Security are being formulated . The  
Measures for Security Reviews of Network Products and Services (Trial)  and Critical Network 
Equipment and Dedicated Cybersecurity Products Catalogue have been released . Besides, China's 
standardization  departments are accelerating the formulation of the Guidelines for Cross -Border  
Data Transfer Security  Assessment and other natio nal standards.  
Question  
• What impact does China anticipate these measures will have on the ability of foreign 
companies to trade in -market ( in relation to  goods and services), given the ubiquity of large 
volumes of data in modern business?  
Reply  
Contents of  Network Security Law of the People 's Republic of China  and related measures are meant 
to safeguard national cybersecurity and protect the interests of the people, instead of preventing  
cross-border data flow or restrict international trade. According to t his law, operators of critical 
information infrastructure need to conduct safety assessments when important data collected and 
generated in China need to be transferred  across the border, but this is limited to critical information 
infrastructure, which co vers a small scope. In addition , important data refer only to data that directly 
or indirectly affect national security,  and therefore do not affect the ability of foreign companies to 
trade related  goods and services in the market.  
Question  
• In designing its implementing regulations and standards, what steps is China taking to ensure 
that any measures [regulating cross border  transfer of data] are not more burdensome than 
necessary to fulfil [its legitimate] public policy objectives?  
Reply  
Every country is entitled to formulate relevant laws and administrative regulations according to its 
national conditions and by learning from international practices, and to manage its cyberspace 
according to law. The purpose for China to formulate and imp lement the Cybersecurity Law and 
accompanying regulations is to safeguard cyberspace sovereignty and national security, maintain 
social public welfare, and protect the rights and interests of Chinese citizens, legal persons and other 
organizations. It is n ot to restrict market access of foreign enterprises, technologies or product, not 
to curb the legal and orderly flow of data, and will not affect China commitments under GATS 
framework.  WT/TPR/M/3 75/Add.1  
 
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  Report by China  - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND  ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1.2 Continuously enhancing trade facilitation , page 5, paragraph 3.7  
Pilot program mes were carried out to facilitate foreign exchange payments concerning cross -border 
E-commerce or via third -party payment  agencies.  
Question  
• Could China provide more information on these pilot programmes.  What were the outcomes 
of these pilots, and is China considering implementing broader reforms as a result?  
Reply  
In 2013, the State Administration of Foreign Exchange (SAFE ) launched foreign exchange payment 
business pilots for cross -border e -commerce (CBEC) in 17 payment institutions in Shanghai, Beijing, 
Zhejiang, Shenzhen and Chongqing, allowing payment institutions to provide, through banks, 
centralized foreign exchange receipt and payment as well as settlement and sales services for both 
parties to small -sum CBEC transactions. In 2015, SAFE extended the above pilots to all over China, 
allowing the payment institutions that have actual demands, operate business in complia nce with 
regulations and have mature business and technical conditions to engage in the pilots. In the 
meantime, the single transaction limit of trade in goods under the pilot was raised from an equivalent 
of USD 10,000 to USD 50,000. By the end of 2017, 3 3 payment institutions from ten provinces and 
municipalities had engaged in the pilots, and accumulatively handled USD 43.8 billion worth of 
cross-border foreign exchange receipts and payments, with the highest monthly cross -border foreign 
receipts and pay ments of USD 3 billion. The pilot cross -border foreign exchange payment business 
of payment institutions is a useful complement to the banking payment business, satisfying the 
needs of enterprises and individuals for quick payment in CBEC transactions, and  considerably 
shortening the business processing period. Moreover, in order to further promote the facilitation of 
foreign exchange receipts and payments for trade in goods, meet the demands of banks and 
enterprises for electronic foreign exchange business , SAFE issued the  Circular of the State 
Administration of Foreign Exchange on Standardizing Reviews of Electronic Documents for Foreign 
Exchange Receipts and Payments under Trade in Goods on 18 Se ptember  2016, allowing banks to 
review the electronic documents of qualified enterprises in handling foreign exchange receipts and 
payments under trade in goods for them. Fort the next step, China will continue to facilitate the 
authentic and business -compliance cross -border foreign exchange payments of enter prises and 
individuals on the basis of controllable risks.  
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION AND 
BUILDING AN OPEN WORLD ECONOMY  
4.2.3 E arnestly honouring obligations and commitments and supporting the daily 
operation of the WTO , page 14, paragraph 4.17  
According to the Legislation Law amended in March 2015, draft laws shall be published  for public 
comments for a period of  no less than 30 days. According to the Regulations on Procedures for 
Formulation of Administrative Regulatio ns and the Regulations on Procedures for Formulation of 
Rules amended in December 2017, draft administrative regulations of the State Council, draft rules 
of departments under the State Council and of local governments at the provincial level shall also 
be published for public comments for a period of no less than 30 days.  
Question  
• Are all draft laws, draft administrative regulations of the State Council, draft rules of 
departments under the State Council and of local governments at the provincial level pub lished 
for public comments, also open to comment by foreign companies and foreign governments, 
for the same comment period of no less than 30 days?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Regulations on Procedures for the Formulation of Administrative Regulations  and the Regulations 
on Procedures for the Formulation of Rules , which were revised  in May 2018, have clearly  stipulated 
issues on soliciting public opinions for administrative regulations and rules. In practice, the drafting 
department would solicit comments from the public t hrough government website and other means 
for no less than 30 days. During this period, foreign companies and governments may also submit 
their opinions via designated e -mail, letter or other means.  
  WT/TPR/M/3 75/Add.1  
 
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  ARGENTINA  
Informe de la Secretaría - WT/TPR/S/375  
2 REGÍMENES DE COMERCIO E INVERSIÓN  
En el párrafo 2.7 se indica que la Comisión Nacional de Desarrollo y Reforma (NDRC) se encarga de 
formular y aplicar estrategias nacionales de desarrollo económico y social, planes a medio y largo 
plazo y planes anuales. S egún las autoridades, la NDRC se encarga, asimismo, entre otras 
cuestiones, de orientar, impulsar y coordinar las reformas del sistema económico y de realizar 
investigaciones sobre cuestiones importantes relacionadas con las reformas del sistema económico 
y la apertura al mundo exterior.  
 
Question  
1. ¿Qué reformas llevo a cabo el NDRC en cuanto a la apertura al comercio internacional en el 
periodo bajo examen?  
Reply  
The Chinese government is committed to expanding domestic demand, boosting expansion and 
upgrading of consumption, holding import expos and actively reducing import tariffs of some 
products. These measures all benefit trading partners' export to China, and are tangible benefits 
brought by China to its trading partners.  
Question  
En el párrafo 2. 9 se indica que, en el marco del Plan Quinquenal de Desarrollo Económico y Social 
Nacional se enumeran los productos sujetos a licencias o impuestos de importación/exportación, las 
industrias que pueden recibir trato preferencial, y los sectores en los que  se alienta, se restringe o 
se prohíbe la inversión.  
2. ¿Cuáles son los productos sujetos a licencias o impuestos de importación/exportación?  
Reply  
According to the Chinese legislative system, the goods currently under the import licen ce 
administration include ozone depleting substances and old mechanical and electrical products. For 
details of the goods, please refer to the Catalogue of Goods Subject to Annual Import License 
Administration in the online policy release section of the Ministry of Commerce  of the People's 
Republic of China.  
Question  
3. ¿Qué industrias pueden recibir un trato preferencial, y cuáles son los sectores a los que se les 
alienta, restringe o se prohíbe la inversión? ¿Cuáles son los criterios bajo los cuales se eligen las 
industria s beneficiarias del régimen?  
Reply  
There are 348 lists of Encouraged Industry Catalogue of China's 2017 Foreign Investment Catalogue. 
Enterprises which carry projects in the Encouraged Industry Catalogue of China's 2017 Foreign 
Investment Catalogue enjoy t he preferential policy of exemption of import duty for their self -use 
imported equipment within the total investment. There are 48 restrictive measures listed in the 
Special Administrative Measures on Access to Foreign Investment (Negative List) (2018 Vers ion), 
which are areas that restrict or prohibit foreign investment.  WT/TPR/M/3 75/Add.1  
 
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  Question  
En el párrafo 2.11 se explica que China estima que el sistema multilateral de comercio desempeña 
una función primordial en el proceso de apertura del país, y los acuerdos comercia les regionales 
(ACR) se consideran un complemento de dicho sistema. Sus autoridades indicaron recientemente 
que el desarrollo económico de China había iniciado una nueva etapa al cambiar "velocidad por 
calidad"; China seguirá liberalizando su mercado y se propone lograr un desarrollo "más abierto, 
inclusivo y equilibrado" cuyos beneficios puedan compartirse entre toda la población.  
4. ¿A través de qué acciones concretas en las negociaciones comerciales el gobierno chino 
implementó el criterio de "velocidad por calidad"?  
Reply  
China's economy has been transitioning from a phase of rapid growth to a stage of high -quality 
development. China is transforming growth model, improving economic structure, and fostering new 
drives of growth, in order to achieve healthy and sustainable economic development. FTA is one of 
the policy instruments that promote reform by way of opening -up. Through FTAs, China promotes 
domestic industrial transformation and upgrading, enhances intellectual property protection to 
encoura ge innovation as the primary driving force, and refrains from expanding trade and 
investment at the cost of environment to achieve sustainable development.  
Question  
En el párrafo 2.12 se menciona que, a fin de seguir modernizando el mercado interno, China se 
propone prestar una atención especial a la modernización de las industrias existentes, el desarrollo 
de industrias limpias y basadas en el conocimiento, y el sect or de los servicios.  
5. ¿Qué acciones piensa llevar o está llevando a cabo el gobierno para lograr estos objetivos?  
Reply  
China will adhere to the path of new industrialization, promote industrialization with information and 
vice versa, take the path of h igh-tech, good economic efficiency, low resource consumption, less 
environmental pollution, safety and security, and full advantage of human resources, and work had 
to promote fundamental transformation of economic growth modes.  
Question  
En el párrafo 2.13  se indica que el Catálogo de Sectores para la Orientación de la Inversión 
Extranjera de 2017 fomenta la inversión extranjera en los sectores que adoptan el ajuste estructural 
de la industria y a la estrategia "China Manufacturing 2025".  
6. ¿A través de qu é acciones el gobierno de China fomenta la inversión extranjera?  
Reply  
China will actively create a loose and orderly investment environment,  broaden foreign investment 
access, further simplify administration procedures of foreign investment access, build high-standard 
free trade pilot zones, strengthen investment promotion and protection, and further improve the 
level of rule of law, internationalization and convenience of foreign investment environment, make 
the Chinese market more transparent and standar dized, promote the growth of foreign capital, and 
improve the quality of foreign capital utilization.  
In the first half year of 2018, China issued the Notice of Several Measures of the State Council for 
Active and Effective Use of Foreign Investment to Pro mote High -Quality Economic Development. By 
taking the creation of a more fair, transparent, convenient and attractive investment environment 
as the starting point and learning from the international investment policy framework, the 
government formulated me asures from six aspects of investment liberalization, investment 
facilitation, investment promotion, investment protection, optimization of regional opening layout, 
and promotion of innovation in national development zones. On 28 June 2018, the National 
Development and Reform Commission and the Ministry of Commerce jointly issued the Special WT/TPR/M/3 75/Add.1  
 
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  Administrative Measures on Access to Foreign Investment (Negative List) (2018 Version), 
introducing opening measures in 22 areas, and reducing the number of restricti on measures to 48, 
a reduction of about a quarter. Foreign investment restrictions are especially reduced a lot in some 
areas that investors are highly concerned with, with consideration of China's industrial development 
level.  
Question  
7. ¿En qué consiste  el "ajuste estructural" al que se refiere el informe?  
Reply  
Industrial restructuring includes rationalization and optimization of industrial structure. 
Rationalization of industrial structure refers to the industrial structure in which various industries 
coordinate with each other, have strong ability of structure transformation, good adaptability to 
market demand changes and generates the highest benefits, showing the orientation process of 
coordination and balance between quantitative proportion of diffe rent industries, economic and 
technological link and mutual influence. The optimization of the Industrial structure, also known as 
industrial structure upgrading, refers to the transformation process of the industrial structure system 
from a lower level to  a higher one. The optimization of industrial structure generally follows the 
evolving law of industrial structure, from a low lever to a higher one.  
Question  
En el párrafo 2.14 se menciona que con la ampliación de la Zona Franca Experimental (PFTZ), 
estab lecida en Shanghái en 2013, y el establecimiento de otras zonas francas experimentales (en 
Fujian, Guangdong y Tianjin en 2015 y en Chongqing, Henan, Hubei, Liaoning, Sichuan, Shanxi, y 
Zhejiang en 2017), China está considerando, entre otras posibilidades,  el establecimiento de un 
nuevo marco reglamentario para la inversión extranjera, basado en la concesión de un trato nacional 
antes del establecimiento (es decir, que no se requiere aprobación alguna en el momento del 
establecimiento) para la inversión ext ranjera en actividades no incluidas en una lista negativa y, con 
el tiempo, aplicar las experiencias satisfactorias en todo el país.  
8. ¿Podrían explicar en qué consistiría el nuevo marco reglamentario y los plazos en qué podría 
entrar en vigencia?  
Reply  
In September 2016 on the basis of summarizing the pilot experience of administrative measures on 
access to foreign investment (negative list) in the pilot free trade zones, the NPC Standing 
Committee decided to amend four laws including the Law on Foreign C apital Enterprises. Since 
1 October 2016, the government had implemented the administrative measures on access to foreign 
investment (negative list) and changed examination & approval to record management for founding 
or relevant changes of foreign capital  enterprises which don't involve special administrative 
measures on access to foreign investment. The special administrative measures on access to foreign 
investment are issued or approved by the State Council. A major breakthrough has been achieved 
in the  reform of the foreign capital management system, which changes the case -by-case approval 
system that has been implemented for more than 30 years. Since its implementation, more than 
97% of enterprises have been established through filing, and the time nee ded for establishment has 
been reduced from 20 working days to three.  
Question  
En el párrafo 2.23 se menciona que las autoridades indican que la estrategia de acelerar la aplicación 
de acuerdos de libre comercio (ALC) es un elemento importante de la nueva ronda de liberalización 
del comercio de China. Desde 2002, China ha firmado 16 acuerdos de libre comercio con 24 países 
o regiones, entre los que se incluyen: la ASEAN; Australia; Chile; Costa Rica; Georgia; 
Hong Kong,  China; Islandia; Macao, China; Maldivas; Nueva Zelandia; el Pakistán; el Perú; la 
República de Corea; Singapur; Suiza y el Taipéi Chino.  
9. ¿En qué consiste la estrategia de "acelerar la aplicación de acuerdos de libre comercio? " WT/TPR/M/3 75/Add.1  
 
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  Reply  
There is no strategy to accelerate the implementation of free trade agreements in China.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Question  
En el párrafo 3.2 se indica que China ha proseguido sus esfuerzos de reforma y armonización de los 
procedimientos aduaneros en sus 42 zonas aduanera s, con un total de más de 200 oficinas. En 
junio de 2016 se puso en marcha con carácter experimental la Reforma para la Integración Nacional 
del Despacho de Aduana y en julio de 2017 se empezó a aplicar en todo el país. La reforma abarca 
todo el proceso de  declaración de importaciones y tiene como principal objetivo mejorar la eficiencia 
de los procedimientos de despacho. En 2017 el tiempo de despacho se redujo a un promedio de 
16,7 horas en todo el país, frente a más de 22 horas en 2016. Aproximadamente un  tercio de las 
importaciones se declara ahora a través de ventanillas únicas.  
10. ¿Esta reforma experimental tendrá carácter permanente? ¿Existe una plataforma virtual a 
través de la cual se centralizan las operaciones?  
Reply  
Since the Third Plenary Sessio n of the 18th CPC Central Committee, the Central Committee has made 
a series of major arrangements on reform and opening up. The CPC Central Committee's Decision 
on Several Major Issues Concerning Comprehensively Deepening the Reforms put forward the task 
of "reforming  the customs supervision and management system." In 2014, the Customs proposed 
to integrate customs clearance across the country, coordinate customs reforms, and promote the 
modernization of customs governance systems and governance capabilities. The pilot  reform was 
launched on 1 June 2016. On 1 July 2017, it was fully carried out and basically completed by the 
end of 2017. Through institutional restructuring and process reengineering, a risk prevention and 
control centre and a tax collection and managemen t centre are constructed to achieve centralized 
risk disposal and to send instructions directly to the bottom, and the "three systems," such as 
"one-time declaration and step -by-step disposal," are promoted further. All the national customs 
implement unifi ed law enforcement systems and provide collaborative services, so that enterprises 
can handle clearance procedures at any custom throughout the country under the same regulations 
and service standards.  
At present, according to the central government's majo r decision -making deployment on the reform 
of the party and state institutions, the General Administration of Customs has intensified the 
integration reform of the national customs clearance on the basis of completing the tasks of 
institutional reform. Whi le maintaining the basic process of "one declaration, step -by-step disposal," 
the quarantine operation is blended into the overall framework and process of national customs 
clearance, integrating the duties and contents of inspection and quarantine work in  the "two centres" 
and on -site operation posts, to achieve the "unified declaration documents, unified operation system, 
unified risk research and judgment, unified instructions release and unified on -site law enforcement." 
The task is expected to be compl eted by the end of 2018. Integration reform is an important measure 
to implement the major decision -making arrangements of the Party Central Committee and the State 
Council, which shall be effective in the long run and continuously optimized and improved.  
Question  
En el párrafo 3.3 se explica que, antes de realizar una declaración de aduana, los importadores 
deben registrarse como operadores de comercio exterior en el Ministerio de Comercio de la República 
Popular China (MOFCOM) o sus órganos autorizados. L as empresas con inversión extranjera pueden 
registrarse como operadores de comercio exterior.  
11. ¿Podrían indicar cuáles son los órganos autorizados para registrar operadores de comercio 
exterior? ¿Qué requisitos deben cumplir los operadores para el regis tro? WT/TPR/M/3 75/Add.1  
 
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  Reply  
Since 2004, China has fully liberalized its foreign -invested business rights. All enterprises 
incorporated in China can become foreign trade  operators through simple filing procedures.  
Question  
En el párrafo 3.5, se indica que las empresas se cl asifican en distintos grupos en función de un 
análisis de riesgos. La inspección y supervisión aduaneras dependen de la calificación de la empresa. 
Los productos importados por empresas calificadas como empresas de alto riesgo son sometidos a 
inspección, m ientras que otras exportaciones se despachan por una vía rápida o mediante un 
"examen de bajo riesgo". Las empresas se asignan, en función de su calificación crediticia, a la 
categoría de empresas autorizadas, empresas de integridad general o empresas desh onestas.  
12. ¿Bajo qué criterios se clasifican las empresas en función del riesgo?  
Reply  
China Customs implements corporate credit rating for enterprises. According to the "Measures for 
Enterprise Credit Management by the Customs Administration of the People's Republic of China" 
(Decree of the General Administration of Customs of the People's Republic of China No.  237), the 
Customs affirm enterprises as certified enterprises, general credit enterprises and untrustworthy 
enterprises according to their cr edit status. As AEO enterprises of China Customs, certified 
enterprises are divided into advanced certification enterprises and general certification enterprises.  
Certified enterprises shall comply with the "Customs Certification Enterprise Standards" form ulated 
by the General Administration of Customs, which are divided into five categories: internal control, 
financial status, compliance standards, trade safety and additional standards. There are 32 specific 
standards for advanced certification companies, and 29 specific standards for general certification 
enterprises.  
The Customs identify these enterprises as untrustworthy: smuggling crimes or smuggling activities; 
for non -declaration enterprises, their number of violations of customs supervision regulatio ns within 
one year exceeding one thousandth of the total number of the previous year's documents, including 
customs declarations, entry and exit filing lists, and inbound and outbound vehicle manifests and 
the accumulated amount of customs administrative p unishment exceeding 1 million yuan; for the 
declaration enterprises, their number of violations of customs supervision regulations within 
one year exceeding 5/10000 of the total number of the previous year's documents, including 
customs declarations, entry  and exit filing lists, and inbound and outbound vehicle manifests and 
the accumulated amount of customs administrative punishment exceeding 300 thousand yuan; 
arrears in tax payable or payment of fines; listed in the abnormal credit information for more t han 
90 days, if the registered residence or business premises cannot be found after on -site inspection, 
and cannot be contacted through the contact information registered in the customs; obtaining 
improper benefits in the name of the customs and other ente rprises; concealing the truth from the 
customs or providing false Information, harassing corporate credit management; resisting and 
obstructing customs staff from carrying out their duties and law with serious consequences; included 
in the National Untrust worthy Joint Punishment List due to criminal offense.  
The rest are general credit companies.  
Question  
13. ¿En qué consiste la inspección en el caso de las mercaderías de "alto riesgo"?  
Reply  
According to the national policy and customs supervision requirements, the Chinese Customs risk 
department implements a higher physical inspection ratio for high -risk goods than low -risk goods.  WT/TPR/M/3 75/Add.1  
 
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  Question  
14. ¿Qué diferencias de tratamiento tiene unas empresas autorizadas de una empresa de 
integridad general"? ¿Cu áles son las sanciones para las empresas clasificadas bajo el rótulo de 
"deshonestas"?  
Reply  
China Customs implements ordinary measures for general credit enterprises, and preferential 
measures for certified enterprises. Certified enterprises are divided i nto advanced certification 
enterprises and general certification enterprises. According to "Measures for Enterprise Credit 
Management by the Customs Administration of the People's Republic of China," the general 
certification enterprises apply the followin g measures: the average inspection rate of import and 
export goods is less than 50% of the general credit enterprise's inspection rate; priority in the 
customs clearance procedures for import and export goods; the amount of guarantees collected by 
the cust oms may be lower than the total amount of taxes that may be borne or the amount stipulated 
by the General Administration of Customs. In addition to the above mentioned, the advanced 
certification enterprise is also subject to the following measures: the av erage inspection rate of 
import and export goods is less than 20% of the general credit enterprise's inspection rate; applying 
for exemption from customs; reduced frequency of inspection and verification; declared to the 
customs before the exported goods a rrive in the customs supervision zone; coordinators established 
by the customs for the enterprise; clearance facilitation measures in AEO mutually recognized 
countries or areas; the joint trustworthy incentives implemented by the relevant state departments ; 
and if interruption of international trade due to force majeure occurs, priority in clearance after 
restoring the international trade, etc.  
The following punitive measures are applied to untrustworthy enterprises: the average inspection 
rate of import an d export goods is above 80%; the hoisting, shifting, warehousing and other 
expenses of enterprises without problems are not exempted; the summary taxation system is not 
applicable; except for special circumstances, it is inapplicable to sample retention an d release 
measures; for the operation of processing trade business, guarantees in full shall be provided; the 
increased frequency of inspections and verifications; and joint disciplinary measures for breach of 
trust implemented by relevant state department s. 
Question  
En el párrafo 4.22, el informe señala que la subvención para fomentar las cepas y semillas de calidad 
superior, las subvenciones directas a los agricultores (arroz, trigo y maíz) y la subvención global a 
los insumos agrícolas se combinaron, con  carácter experimental, en una nueva "subvención para 
apoyar y preservar la agricultura".  
15. ¿En qué consiste la "nueva subvención para apoyar y preservar la agricultura"? ¿Cuál es su 
alcance, objetivos, duración prevista y cultivos abarcados?  
Reply  
In 2016, nationwide, the direct subsidy of grain, the subsidies for improved crops, and the 
comprehensive subsidies for agricultural materials were combined into agricultural support 
protection subsidies, and the policy objectives were adjusted to the protecti on of cultivated land and 
the moderate scale of grain operations. One part is an inclusive subsidy for the protection of 
cultivated land fertility, and it is clear that the abandoned cultivated land and those of changed use 
are not included in the scope of  subsidies. The other part is the subsidy fund for moderate scale 
operation. The support targets are tilted towards new business entities such as large grain growers, 
family farms, farmer cooperatives and agricultural social service organizations. Agricult ural support 
protection subsidies are not linked to specific crops.  
Question  
En el párrafo 4.132, el informe indica que, dado que el mercado de servicios en la nube se ha 
desarrollado con rapidez en China, con miras a reforzar la reglamentación en ese merc ado, el 
gobierno está preparando un nuevo marco jurídico para esos servicios (el "Aviso sobre la WT/TPR/M/3 75/Add.1  
 
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  Normalización del Mercado de Servicios en la Nube, y la Facilitación del Desarrollo Racional en el 
Sector").  
16. ¿En qué medida cambia este nuevo marco jurídic o el ya existente en China? ¿Cuándo tiene 
pensado el gobierno ponerlo en vigencia?  
Reply  
According t o the Classification Catalogue o f Telecommunication Services 2015, cloud services belong 
to a specific form of Internet Data Center (IDC) business. When Chi na joined the WTO, it did not 
promise to open its IDC business to foreign capital. China's management of cloud services, according 
to Telecommunication Regulations and other laws and regulations, conform to international rules 
and are scientifically classi fied according to the history of China's cloud service industry development. 
Therefore, considering safeguarding national network information security and protecting private 
data of users, China's cloud service market is not open to foreign investment, whi ch is in line with 
WTO rules and China's WTO commitments. China is exploring the operation of cloud services by 
cooperation between Chinese and foreign enterprises, which means that Chinese enterprises apply 
for cloud service licen ces, and foreign capital enterprises carry out technical cooperation with 
Chinese enterprises but won't be forced to transfer technology brands. At present, Amazon is 
cooperating with Sinnet and Western Digital to run cloud services in Ningxia, Microsoft is cooperating 
with 21vian et and Apple is cooperating with Guizhou -Cloud.  
Question  
• En el cuadro 4.19 (pág. 162) se indica que el gobierno de China está implementando, desde 
setiembre de 2017, un "Plan de Acción Trienal para el Desarrollo del Comercio Electrónico 
Industrial".  
17. ¿En qué consiste este plan? ¿Qué productos abarca? ¿En qué medida afecta las operaciones 
de importación y exportación?  
Reply  
In September 2017, to further promote innovation of industrial e -commerce, accelerate the trading 
mode, business model, organizational form and management system of enterprises in innovative 
industries, and continuously stimulate innovation, development po tential and transformational 
power of manufacturing enterprises, the Ministry of Industry and Information Technology issued the 
Industrial E -commerce Development Three Year Action Plan (hereinafter referred to as the Action 
Plan). The Action Plan mainly in cludes promoting application of industrial e -commerce, upgrading of 
platform cultivation, improving of the support system, optimization of the development environment, 
aiming to promote the networking and coordination of trading methods and business models  of 
industrial enterprises, to effectively promote information interaction and integrative collaboration 
the whole production process, the whole industry chain, and the whole life cycle of products and to 
realize new production modes such as personalized c ustomization, networking collaboration and 
service -oriented manufacture and open, flat organization management with platforms.  
  WT/TPR/M/3 75/Add.1  
 
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  ISRAEL  
Report by the Secretariat  - WT/TPR/S/375  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.7.2.2 Trademarks , paragraphs 3.239 and 3.241  
 
As indicated in paragraph 3.239, "since 2014, the SAIC, together with other competent authorities, 
has conducted a series of special supervision campaigns to investigate illegal acts as abusing, 
infringing or counterfeiting highly reputed trademarks, and foreign trademarks, and to crack down 
on online trademark infringement crimes. " 
  
In paragraph 3.241, it is mentioned, "if a trademark not registered in China is a well -known one, 
protection may be provided to similar goods. " 
 
Israel would like to ask in that regard three questions:  
 
Question  
 
i) What has been done to limit the amount of trademark infringements?  
 
Reply  
 
The market regulatory departments in China have fully played their role in the management and 
law-enforcement of trademarks, adopting the following measures to restrict trademark infringement 
acts. First, bounded by duty or according to complaints from the right holder or customers, the 
departments have investigated and penalized infringement acts by confiscating the infringing goods, 
trademarks and tools for their manufacturing as well as imposing fining and administrative penalty 
upon the Trademark infringer. As for the cases involving trademark crimes, they will be transferred 
to judicial authorities to account for the crimina l responsibility. Second, to enhance the strength for 
cracking down trademark infringement acts and uplift the illegal cost for these acts, the regulatory 
departments have established a publicity system for the credit information of national enterprises 
to record the infringers credit information on being inflicted of administrative penalties, thus carrying 
out credit supervision and joint punishment to promote the honest business behaviour of the market 
entities. Third, the departments promote the use of a  double random and one open regulatory 
method in trademark regulation and law -enforcement, carrying out random checks on the market 
entities according to their credit information and publicizing the result, so as to reinforce the daily 
regulation of the ma rket entities. Fourth, the departments carry out the work of gathering, analysing 
and using the big data relevant to trademark infringement cases and try to strengthen their abilities 
in detecting, collecting and recognizing the clues to the infringement b ehaviours as well as uplift the 
capacity for prediction, analysis and judgement.  
 
Question  
 
ii) What has been done regarding the domestic pre -emptive registration of foreign trademarks?  
 
Reply  
 
If the prior right holder finds that the trademark has been pre-empted, he may apply to the 
Trademark Office for objection within the preliminary examination and approval period, and claim 
his right through the objection procedure. In the procedure of trademark objection, the Trademark 
Office, on the basis of the f actual reasons stated by the parties and the evidential materials provided, 
after examination, considers that the disputed trademark has indeed violated the relevant provisions 
of the Trademark Law and the dissenting trademark shall not be registered in ac cordance with the 
Trademark Law and the relevant provisions of its implementing regulations. In recent years, the 
dissent department of the Trademark Office has taken a variety of measures to crack down on 
malicious trademark grabbing in accordance with th e law, in order to effectively curb violations of 
the principle of good faith and to protect the rights and interests of trademark subjects against 
malicious trademark grabbing behaviour such as malicious attachment to others trademark 
reputation or posses sion of public resources.  
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  iii) How does TRIB (Trademark Review and Adjudication Board) recognize bad faith registration 
of foreign trademarks?  
 
Reply  
 
The Trademark Law of our country protects domestic and foreign trademarks equally and prevents 
the malicious  registration of trademarks. According to the relevant provisions of the Trademark Law, 
the maliciously registered trademarks mainly exist in the following circumstances: (1) copying, 
imitating or translating a well -known trademark of another person; (2) r egistering the trademark of 
the principal or representative without authorization; (3) the specific party concerned pre -empts the 
use of the trademark by the other person; (4) pre -empting the trademark that has been used by 
the other party and has a certai n influence; (5) obtaining the trademark registration by deception 
or other improper means, etc. The Chinese side will regulate the malicious trademark registration 
according to the facts, reasons and requests of the parties in the case, and combined with relevant 
evidence.  
 
2 TRADE AND INVESTMENT REGIMES  
 
We noted that in the "Trade and Investment Regimes " chapter, investment in the Chinese market 
are mentioned; however, there is no reference to Chinese investments in foreign markets.  
We also learned that outbound investment must be approved by NDRC, MOFCOM and SAFE and for 
SOEs, the approval of SASAC is needed. In addition to that, for certain sectors, the approval from 
Natural Resources Ministry & Customs may be needed. Though the procedure was simplified  in the 
beginning of 2018 through the Circular of seven Ministries, no detailed implementation methods 
have been announced since then. This may cause difficulties for domestic investors to interpret the 
law in their practice. Moreover, the foreign exchange  control has been tightened, which makes 
outbound  investment more difficult. In that regard, Israel is interested to know:  
 
Question  
 
What are the regulations and implementation methods for outbound investments?  
 
Reply  
 
In recent years, the relevant departments of the Chinese government have continued to deepen the 
reform of the overseas investment management system, establish the status of enterprises as the 
main body of investment, and continuously improve the level of facilitation for overseas investment. 
At present, record keeping is taken as the main mode of management for overseas investments of 
enterprises. 99 % of the overseas investment projects are put on record online and completed within 
seven  working days. The  level of facilitation for the enterprises overseas investment is relatively 
high. 
 
Question  
 
What are the specific rules and procedures involved in outbound remittance?  
 
Reply  
 
China has cancelled the requirement that QFIIs have to make remittance by bat ch. Instead, QFIIs 
now have to make inward/outward remittance in Chinese Yuan. For other relevant information, 
please refer to the official website of State Administration of Foreign Exchange.  
 
Question  
 
Does China plan to loosen up these limitations in th e near future?  
 
Reply  
 
China has cancelled the requirement that QFIIs have to make remittance by batch. Instead, QFIIs 
now have to make inward/outward remittance in Chinese Yuan. For other relevant information, 
please refer to the official website of Stat e Administration of Foreign Exchange.  
 WT/TPR/M/3 75/Add.1  
 
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  Other questions  
 
1. We positively noted that since 30 June 2014, the former CFDA has cancelled the mandatory 
animal testing for none -specific purpose cosmetics products, such as shampoo and perfume. 
However, animal testing still carries on for specific purpose cosmetic products, such as skin whitening 
product . This change does not completely eliminate trade barrier for Israeli cosmetic products 
entering the Chinese market.  
  
Following similar steps by other countries, banning cosmetic animal testing, Israel is interested to 
know when does China plan to gradual ly abolish this requirement and adopt alternative solutions for 
cosmetic import registration?  
 
Reply  
 
China has always been actively supportive of the 3 R principles of animal experiments aimed at 
protecting animal welfare in cosmetic safety evaluation. C hina is actively promoting the application 
of animal test alternatives to cosmetic safety assessment. The former State Administration of Food 
and Drug Administration organized the research and verification of more mature cosmetic 
substitution test methods,  having included the Chemical raw materials for cosmetics in vitro 
3T3 neutral red uptake phototoxicity, in vitro skin corrosive rats transdermal resistance, skin photo 
allergy and other alternative test methods into the Cosmetics Safety Technical Specific ation 
(2015  edition). At present, China is strengthening the management of new cosmetics raw materials 
and establishing the database of used cosmetics raw materials, so as to accumulate experience in 
the safe use of cosmetics raw materials and promote the risk assessment of product safety. At the 
same time, we should speed up to construct research institutes for verifying the alternative methods 
of cosmetic animal experiments in China, from top -level design, overall planning to step by step 
implementation, and promote the construction of cosmetic alternative toxicological method research 
and verification system. In the process, China is willing to strengthen technical exchanges and 
cooperation with international parties to realize the extensive application o f animal substitution 
methods in the safety evaluation of cosmetics raw materials.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  TRINIDAD AND TOBAGO  
Report by the Secretariat - WT/TPR/S/375  
SUMMARY  
Pages 12 -13 and paragraph 20  
Reference is made to the provision of information on the subsidies paid  for the period under review. 
It is noted that subsidies were not notified for the period between 2015 and 2017.  
Question  
Can China provide information on all subsidies paid for the period 2015 to 2017.   
Reply  
The information currently obtained and verified has been reflected in the central and local subsidy 
circulars, which are about to be submitted. Update China's central and local subsidy circulars to 
2015-2016. China will keep working hard to fulfil its obligations of reporting subsidies required  by 
SCM. 
The information currently verified and obtained has been included in the notifications of central and 
regional government subsidies that are to be submitted soon. They have been updated to 
year 2015-2016. China will continue to try to fulfill the obligation of subsidy notifications stipulated 
by SCM.  
Pages 12 -13, paragraph 20 and Report by China - WT/TPR/G/375, 5.3.5 Speeding up 
reform of fiscal and tax systems, paragraph 5.23  
Question  
It was reported that Value Added Tax (VAT) has two rates: 10% a nd 16%. Can China provide 
additional information on the application of the two rates, particularly with the categories of products 
that the rates apply to?  
Reply  
To further deepen reform on VAT and reduce tax burden of businesses, China, from 1 May 2018, 
has lowered the VAT rates in some industries. Now, the VAT regime is consisted of three rates: 16%, 
10% and 6%, and the first two apply to goods.  
Generally speaking, the lower VAT rate applies to the field related to people 's livelihood. The 
applicable ran ge is limited. The lower rate is to reduce the influence of VATs regressive nature. In 
China, the rate of 10% applies to a few kinds of goods, such as agricultural products and produce, 
edible vegetable oil, edible salt, tap water, heating and air conditio ning, and the rate of 16% applies 
to other goods.  
Report by the Secretariat - WT/TPR/S/375  
3.1.1 Customs procedures, valuation, and requirements , page 46, paragraph 3.7  
"China deposited its instrument of acceptance of the Protocol of Amendment inserting the Agreement 
on Trade Facilitation (TFA) into Annex 1A of the WTO Agreement on 4  September  2015. China 
notified its Category A commitments, which cover the majority of measures, in June 20145, and its 
Category B commitments in June 2017.6 China does not h ave any Category C commitments. The 
indicative implementation date for most Category B commitments is February 2020, except for 
provisions under Article 10.9 on the temporary admission of goods, which were implemented in 
November 2016. Under the TFA, China  has notified the following authorities as enquiry points: GACC WT/TPR/M/3 75/Add.1  
 
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  for customs clearance, AQSIQ for import and export inspection and quarantine, and the Ministry of 
Transport for traffic in transit.7" 
Question  
Has China established a National Trade Facilitati on Committee? If so, which organizations comprise 
the Committee?  
Reply  
China has proactively implemented the TFA. We established the National Trade Facilitation 
Committee in March 2016. We fulfilled our obligation by notifying the information  
G/TFA/N/CHN/2/REV.1  on the members of the committee and its official contact details on 
19 March  2018.  
Question  
Is China experiencing any challenges in implementing their Category A and B commitments of the 
WTO TFA? If so, how does China plan to overcome t hem?  
Reply  
China Customs is facing new contexts when implementing the TFA. On the one hand, the emerging 
technologies, industries and business formats have been presenting new topics to China Customs. 
The innovation -driven development strategy has boosted  the development of cross -border 
e-commerce, market purchase trade and companies providing comprehensive services of foreign 
trade. The smart supply chain that integrates modern logistics, cross -border finance, big data, 
Internet and other technologies is taking shape. To some extent, the existing regulating models, 
technologies and means, and allocation of resources by China Customs are not in line with the 
contexts. There is large room for the innovation in regulation services. On the other hand, the 
intertwined traditional and non -traditional security threats have brought about new challenges. 
Trade facilitation never comes without conditions. Rather, it is based on keeping the security bottom 
line. Ports have increasingly become a key to prevention and c ontrol of security threats, and the 
security issue of supply chain has become more and more prominent. As for how to implement the 
outlook on general national security and guard the gate of our country in the process of 
implementation of the TFA and trade facilitation, China Customs bears more responsibilities and is 
under heavier pressure.  
Following the general requirements put forward at the 19th CPC National Congress for creating a 
landscape of all -round opening up, and implementing high -standard policy  on trade and investment 
liberalization and facilitation, China Customs, in the next stage, will take the following steps to 
continue implementing the TFA. First, we will endeavor to create an internationalized environment 
for business. We will optimize th e customs clearance process, simplify the procedures for documents, 
cut port charges, establish a sound management mechanism to further reduce the time and cost of 
import and export, and create a stable, fair, transparent and predictable business environme nt. 
Second, we will make great efforts to deepen reform. We will enhance the role of China Customs 
through reform, continue to promote the in -depth integration of implementing the TFA and reforming 
the regulation and management system of Customs. We will p ut more emphasis on making the 
reform systematic, integrated and coordinated. In the practice of guarding the pass in accordance 
with law, we will strengthen regulation and provide better services. Third, we will enhance the 
application of science and tech nology. We will give priority to vitalizing the pass through science and 
technology. We will give play to the leading and underpinning role of science and technology in trade 
facilitation, and make greater efforts to establish a system featuring the applic ation of science, 
technology and information, and install and use relevant equipment. We will provide convenient and 
efficient services to law -abiding enterprises, and stare down enterprises that fail to obey laws. Fourth, 
we will intensify investigation a nd assessment. We will focus on enhancing companies' participation 
and sense of fulfilment of enterprises in the implementation of the TFA, and actively listen to opinions 
from the business community and the public. We will establish a more scientific and accurate 
assessment index system of customs clearance effectiveness and trade facilitation, and enhance the 
effectiveness of the TFA implementation. Fifth, we will build a new socialist customs with Chinese 
characteristics. We will comprehensively carry ou t institutional reform, realize the in -depth and WT/TPR/M/3 75/Add.1  
 
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  organic integration of the Customs original duty of management and duties of inspection, quarantine 
and management to achieve a multiplying effect. Through the optimization of institutional functions, 
in-depth integration of teams, and renovation of business procedures, we will make the TFA 
requirements match the highest international standards, and create an internationally advanced, 
most competitive customs supervision system.  
Question  
What programmes does China offer to develop ping countries to assist with implementation of the 
TFA?  
Reply  
China has donated US D 1 million to the Trade Facilitation Agreement Fund . 
3.2.1 Customs procedures and requirements, page 61 , paragraph 3.70  
"Exporters must comply with the requirements stipulated in the Catalogue of Import and Export 
Commodities Subject to Compulsory Inspection, which is amended every year. Some items, such as 
dangerous chemicals, fireworks, lighters, toys and strollers, food products, and rare earths, a re 
subject to export inspection. These goods must be inspected where they are produced. The 
packaging of exports of dangerous chemicals and other dangerous goods must also undergo 
inspection and tests. " 
Question  
How long does a transaction typically take f rom the submission of an application to clearance, 
providing that all requirements are met?  
Reply  
No relevant statistics. In 2017, the average clearance time of customs import all over China is 
15.87  hours, with a year -on-year decline of 36.85%, and that of customs exit is 1.11 hours, with a 
year-on-year decline of 38.24%.  
4.3.2.4 Iron and steel, page 145 , paragraph 4.110  
"According to data provided by the authorities, in 2016, China exported 108 million tonnes of steel 
materials (including steel billets) and imported 13.5 million tonnes, with net crude steel exports of 
98.55 million tonnes, accounting for 12.2% of China's total crude steel output. " 
Question  
On 8 March 2018, President Donald Trump announced global tariffs of twenty -five per cent (25%) 
on iron and steel imports to the United States. To what extent will China be affected by these tariffs?  
Reply  
The year of 2017 saw a slump in China's steel export as the efforts to cut excess capacity of steel 
and iron continued. Throughout the year, 75.4135 million metric tonnes of steel were exported and 
13.2978 million imported. The accumulated net export of crude steel was about 64.2 million metric 
tonnes, accounting for 7.7% of the total domestic output.  
Due to the US anti -dumping and anti -subsidy investi gations on various Chinese steel products and 
the consequent high anti -dumping and countervailing duties, China's steel export to the US has 
declined year by year since 2014. The year of 2017 saw only 1.1815 million tonnes of steel products 
exported to the  US, accounting for 1.57% of China's total steel export. The US imposed 25% tariff 
on imported steel and iron products, which had a small direct impact on the Chinese steel and iron 
industry.  WT/TPR/M/3 75/Add.1  
 
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  SINGAPORE  
Report by the Secretariat - WT/TPR/S/375  
2.4 Investment Regime, 2.4.1 Regulatory framework and market access, page 37, 
paragraph 2.32  
Question  
We note that China has removed ocean shipping tally from the restricted section1 of the 2017 
Catalogue of Industries for the Guidance of Foreign Investment (Investment Catalogue) , limited to 
equity/cooperative joint ventures. We would like to clarify if majority Chinese shareholding will be 
required under the new regime, and w hether there is a minimum percentage of Chinese 
shareholdings required for such joint ventures.  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Management Measures for Foreign In vestment Access (Negative List) 
(2018) , which does not include foreign shipping tally, and there is no equity restrictions for foreign 
investment in this field.  
Page 39, paragraph 2.36  
Question  
We recognise China's  efforts to improve the approval administration and filing administration of 
foreign investments and further note that foreign investors/service suppliers will need to meet the 
requirements in the 2017 Investment Catalogue and the Market Access Negative Li st, as well as the 
Pilot Free Trade Zones Negative Lists. Are there plans to streamline these requirements to further 
facilitate investments into China, and if so, when might this be?  
Reply  
According to the Opinions of the State Council on the Implementat ion of the Market Access Negative 
List System (GF [2015] No. 55), the market access negative list is a consistent management 
measure applicable to domestic and foreign investors and a unified requirement for market access 
management of various market entit ies; The negative list of foreign investment is applicable to 
foreign investors' investment and operation in China, and is a special management measure for 
foreign investment access. The negative list of foreign investment in PFTZs is applicable to the 
investment and operation activities of overseas investors in PFTZs. There is no repetition among the 
three, since the applicable objects are different. The Chinese government will step up publicity efforts 
and make a good interpretation of the policies so as to help foreign investors accurately grasp the 
latest investment policies.  
Question  
We would like to clarify if China's  intention is for the requirements listed in the Investment Catalogue 
and the various negative lists to apply equally to all foreig n inve stors/service suppliers.  
Reply  
According to the Opinions of the State Council on the Implementation of the Market Access Negative 
List System (GF [2015] No. 55), the market access negative list is a consistent management 
measure applicable to domestic and  foreign investors and a unified requirement for market access 
management of various market entities; The negative list of foreign investment is applicable to 
foreign investors' investment and operation in China, and is a special management measure for 
foreign investment access. The negative list of foreign investment in PFTZs is applicable to the 
                                                
1 The list of industries where FDI is restricted.  WT/TPR/M/3 75/Add.1  
 
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  investment and operation activities of overseas investors in PFTZs. There is no repetition among the 
three, since the applicable objects are different. The Chines e government will step up publicity efforts 
and make a good interpretation of the policies so as to help foreign investors accurately grasp the 
latest investment policies.  
3.1.1 Customs procedures, valuation, and requirements , page 45, paragraph 3.2   
"China has continued to make efforts to reform and harmonize customs procedures across its 
42 customs areas with a total of more than 200 individual offices. In June 2016, the National 
Customs Clearance Integration Reform was launched as a pilot phase; it was rolled out nationwide 
in July 2017. The Reform covers the whole import declaration process  and has as a main objective 
improving the efficiency of clearance procedures. " 
Question  
Does China require a health certificate from transit countries as part of its import declaration process 
for seafood produce? If so, could China provide the relevant Law/Regulation for this requirement 
and clarify the r ationale for this requirement?  
Reply  
China does not require such a health certificate . 
3.1.5 Import prohibitions, restrictions, and licensing , pages 53 and 54, paragraphs 3.33, 
3.34 and Table 3.5  
Paragraph  3.33 stated that an announcement was made on adjusting the Catalogue of Wastes 
Subject to Import Administration on 9 Jan uary 2017. Para graph  3.34 stated that a notification was 
made on 18 Jul y 2017 regarding the Catalogue of Solid Wastes Forbidden to  Import into China by 
end-2017, which included four classes and 24 kinds of solid wastes (Table 3.5).  
Question  
How does  China define "waste " and "scrape " (please provide examples, where possible)? To better 
prepare the stakeholders which may be affected by  the announcement, could China provide a 
timeline for the next/future review/revision of the list of solid wastes forbidden for import into China, 
and information on the possible channels for stakeholders to provide inputs to the relevant agencies?  
Reply  
The definition and identification of solid wastes in China follow  provisions in the Law of the People 's 
Republic of China on the Prevention and Control of  Environmental Pollution by Solid Wastes, which 
are basically consistent with the meaning  of wastes in  the Basel Convention on the Control of 
Transboundary Movements of  Hazardous Wastes and Their Disposal. China defines solid wastes as 
articles and  substances in solid, semi -solid state or gas in containers that are produced in the  
production, living and ot her activities and have lost their original use values or are  discarded or 
abandoned though haven't yet lost use values, and articles and substances  that are included into 
the management of solid wastes upon the strength of administrative  regulations.  Wastes that can 
be used as raw materials also belong to solid wastes.  
We will take into consideration various factors  and introduce relevant policies in due time. In fact, 
we have released adjustments to the  Catalogue of Imported Waste Management this April, which 
was eight months and twenty  months ahead of schedule. So relevant stakeholders have sufficient 
time to make  preparations.  
According to the Law of the People 's Republic of China on the  Prevention and Control of 
Environmental Pollution by Solid Wastes,  the Ministry of  Ecology and Environment should lead the 
adjustment of the Catalogue of Imported Solid  Wastes. Should relevant stakeholders have questions 
on the adjustments, please consult  the Ministry of Ecology and Environment, the General WT/TPR/M/3 75/Add.1  
 
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  Administratio n of Customs, the  Ministry of Commerce and other ministries through the Internet or 
other channels.  
3.3.2.3 Labelling and packaging , page 75, paragraph 3.133  
"Laws and regulations on labelling , marking, and packaging focus mainly on food, drugs and 
cosmeti cs, medical devices, and seeds. No major changes have taken place in these rules since the 
previous review. "  
Question  
Are there other/more stringent labelling requirements specifically for seafood imports? If so, can 
China provide the relevant Law/Regulation laying out labelling re quirements for seafood imports?  
Reply  
The Measures on the Supervision and Administration of  Inspection and Quarantine of Imports and 
Exports of Aquatic Products (No. 135 decree of the  former General Administration of Q uality 
Supervision, Inspection and Quarantine in 2011)  stipulates that the Chinese label of imported 
pre-packed aquatic products shall comply with  China's  requirements on imported pre -paced aquatic 
products. When China examines imported  aquatic products on  site, it should be checked whether 
the packing complies with basic  requirements on aquatic products. The specific requirements are as 
follows: there should be firm,  clear, and identifiable Chinese and English tag on the internal and 
external packing of im ported  aquatic products, specifying the following: the commodity name and 
scientific name of the  aquatic products, specifications, production date, batch number, and storage 
condition; production  method, such as sea fishing, freshwater fishing, or breed aq uatics; production 
area, such as sea  fishing area by the catcher, the country or region of origin of freshwater fishing, 
the country or  region for the last breed stage; name and number of production and processing 
enterprises(catching boat). The destination should be marked as the People 's Republic of China.  
3.3.4.2 Price controls , page 86, Table 3.17  
Question  
We understand that the "charges of the monopolistic services at fishing ports and main ports along 
the coast, the main trunk of Yangtze Riv er, and all the other ports open to vessels of foreign 
nationality, are subject to prices guided by the Government. " Could China inform what these 
monopolistic services are? We would also welcome information from China on how the Chinese 
government sets th e price or price guidelines.  
Reply  
Charges of monopolistic services at ports are subject to  prices guided by the Chinese Government. 
Specific items are listed in the Catalogue of the  Operating Services Charges Guided by the 
Government (No. 24 Announcement of the National  Development and Reform Commission in 2017). 
Other items with competitive conditions shall be  subject to market -adjusted prices. For items whose 
prices guided by the government, prices shall  be formulated by the transportation departments an d 
price departments in accordance with the  principle of compensation cost + reasonable profit.  
3.3.7.5.4 Customs law enforcement, page 109, paragraph 3.274  
"Since 2015, Customs have been conducting the special campaign of "Qing  Feng" to combat IPR 
infringement at the border to intensify risk analysis and control on key commodities, such as food, 
pharmaceuticals, automobile parts, mechanical and electrical products, mobile phones and parts, 
and medical equipment, as well as on key shipping routes and  ports, so as to combat IPR 
infringement in a more focused and targeted way. Between 2015 and 2017, China Customs seized 
about 53,300 shipments of infringing goods, valued at around RMB 520 million. According to the 
authorities, with a view to further comb atting cross border infringement, China Customs conducted, 
in 2016 -17, four special operations with US Customs, two special operations with Russia Customs, 
as well as over ten special operations with "Hong Kong Customs" and "Macao Customs"; China WT/TPR/M/3 75/Add.1  
 
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  Customs h as also finalized an Action Plan concerning EU -China Customs Cooperation on Intellectual 
Property Rights (2018 -2020) ." 
We understand that  China's  Customs have been conducting the special campaign of "Qing Feng" to 
combat IPR infringement at the border, as well as on  key shipping routes and ports.  
Question  
Could China clarify and share on the role of shipping liners companies and ports in campaign 
Qing Feng, and if there is any impact on the operations of shipping liners and at port.  
Reply  
Shipping liners companies and  ports will cooperate in the campaign according to the requirements 
of the Customs.  
Question  
How does campaign "Qing Feng" intensify risk analysis and how can the risk analysis help to combat 
IPR infringement in a more focus and targeted way? For example, would there be more attention 
from Chinese Customs on certain key shipping routes more likely to carry IPR infringing goods? 
Would the Chinese Customs require additional procedures or applications for new shipping routes 
from Chinese ports, or  intermodal transportation routes involving at least one Chinese port?  
Reply  
The Customs will find out key channels, ports and goods  through risk analysis and monitor highly 
risky channels, ports and goods in the campaign.  
4.4.1 Telecommunications , 4.4.1. 2 Regulatory framework, page 154, paragraph 4.141  
Question  
Can China provide some examples of measures which companies or businesses will need to abide 
by, before they are allowed to provide "personal information and other important data " outside 
mainland China?   
Reply  
According to the Cybersecurity Law of the People's Republic of China , important data collected and 
generated by key information infrastructure operators in China must be subject to security 
assessment when they leave the cou ntry. However, this is only limited to the scope of key 
information infrastructure, whose scope is relatively small, and important data are only data that 
directly or indirectly affect the national security. Therefore, it will not restrict or affect the 
cross-border transmission of data.  
4.4.6 Services Engineering and integrated engineering services , page 165, 
paragraph  4.211  
Question  
Does China plan to further liberalise the engineering and related services sector in the Shanghai 
Pilot Free Trade Zone? If so, can China provide some information on such liberalisation plans, and 
when might these plans take place?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China will carry out deepening pilot innovative services trade in provinces (areas) including Beijing,  
Tianjin, Shanghai, Hainan, Shenzhen, Harbin, Nanjing, Hangzhou, Wuhan,  Guangzhou, Chengdu, 
Suzhou, Weihai and Xiongan New Area in Hebei,  Liangjiang New Area in Chongqing,  Guian New Area 
in Guizhou and Xixian New  Area in Shaanxi. The pilot programme  will be extended for two years 
from 1 July 2018  to 30 June 2020. It includes cancellation of performance requirement of engineering  
design for foreign -funded engineering design enterprises (excluding engineering survey enterprises) 
to apply for qualification for the first time.  
Question  
Does China have any plans to waive the requirement for "foreign service suppliers to be registered 
architects/engineers, or enterprises engaged i n architectural/engineering/urban planning services in 
their home country " in other Pilot Free Trade Zones, other than the China (Shanghai) Pilot Free 
Trade Zone?  
Reply  
The open measure of the Shanghai PFTZ shows that for foreign -funded engineering design  
enterprises that provide services for Shanghai in Shanghai PFTZ, the requirements for investors' 
engineering design performance will be cancelled when applying for qualification for the first time. 
The Chinese government is currently studying the extensio n of the open measure to other PFTZs.  
Page 183, Table A2.3 Industries in which FDI was/is restricted, 2015 and/or 2017  
With reference to the "Transportation, storage & warehousing and postal services industries " sector 
listed under Table A2.3, we note tha t the line item "water transport services " under the 2015 
Investment Catalogue has been split into "domestic water transport companies (with Chinese parties 
as the controlling stakeholders) " and "international maritime transport companies (limited to 
Sino-foreign equity/cooperative joint venture operations )" under the 2017 Investment Catalogue.  
Question  
Could China clarify on the change in restrictions for the sector and the types of maritime transport 
services that are covered under the 2017 Investment Ca talogue? Does the 2017 restriction affect 
shipping operations, ship agency or ship management services?  
Reply  
The 2017  Investment Catalogue stipulates that foreign investment of international maritime  
transport companies is limited to joint venture and cooperation. But the latest 2018 Foreign 
Investment Access Negative List makes full openness to the outside world in  terms of international 
shipping and its secondary industries, which marks that the  openness of China's  international 
shipping and its secondary industries is in the forefront  in the world.  
Report by China  - WT/TPR/G/375  
3.2.3 Further opening up of the manufacturing and services sectors , page 6, 
paragraph  3.14 
With regard to the construction sector, does China plan to further open the sector to foreign service 
providers, such as within the Free Trade Zones?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In 2018, the Chinese government issues the Negative List 2018, and does not impose restrictive 
measures on the construction industry. Foreign investors can set up wholly -owned construction 
enterprises in China in accordance with relevant laws and regulations.  
3.5 Building pilot free trade zones according to high standard , page 9, paragraph 3.31  
We note the expansion of the Pilo t Free Trade Zone (PFTZs), launched in Shanghai in 2013, and the 
subsequent establishment of PFTZs in 11 provinces and municipalities across China. We understand 
that each PFTZ will have a different priority. Would  China update on the key areas of  focus fo r each 
of these PFTZs?  
Reply  
Shanghai PFTZ strives to take the lead in establishing an institutional system that links with 
international investment and trade access rules, and to become an international high -standard free 
trade park with free investment a nd trade, open and transparent rules, fair and efficient supervision, 
and convenient business environment.  
Relying on Hong Kong and Macao, serving the mainland and facing the world, Guangdong PFTZ 
strives to become a demonstration zone for the deep cooper ation among Guangdong, Hong Kong 
and Macao, an important hub of the 21st century maritime silk road and a leading place for the new 
round of reform and opening up in China.  
Tianjin PFTZ strives to become a high -level open platform for coordinated developme nt of Beijing, 
Tianjin and Hebei, a pilot area for national reform and opening up, a test field for institutional 
innovation, and a world -oriented high -level free trade park.  
Fujian PFTZ strives to build itself into a demonstration zone to deepen cross-strait economic 
cooperation by giving full play to the pro -active advantages of reform and creating an 
internationalized, market -oriented and legalized business environment around the strategic 
requirements of basing on the two sides of the strait, s erving the whole country and facing the world; 
Fully utilize the cutting -edge advantage of opening, build the core area of the 21st century maritime 
silk road, and create a new high ground for opening and cooperation among countries and regions 
along the 2 1st century maritime silk road.  
Liaoning PFTZ is mainly dedicated to building a new engine for improving the overall competitiveness 
and opening up level of the old northeast industrial base.  
Zhejiang PFTZ mainly explores how to promote the liberalizatio n of commodity trade and enhance 
the global allocation capacity of commodities.  
Henan PFTZ mainly focuses on the construction of a modern comprehensive transportation hub 
serving the construction of "the belt and road".  
Hubei PFTZ mainly plays an exemplar y role in the implementation of the rising strategy of central 
China and the promotion of the construction of the Yangtze river economic belt.  
Chongqing PFTZ mainly promotes the implementation of the western development strategy.  
Sichuan PFTZ mainly build s an inland open economic highland and realize the coordinated opening 
of inland and coastal borders along the Yangtze river.  
Shaanxi PFTZ mainly builds a new highland for inland reform and opening up and to explore a new 
mode of economic cooperation and cultural exchange between the inland and the countries along 
the "the belt and road" route.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Further, what are the liberalization measures that will be introduced in the newly announced Hainan 
Free Trade Port?   
Reply  
Supporting the whole island of Hainan to build a free trade pilot zone is a major decision made by 
the CPC Central Committee after in -depth researches, overall consideration and scientific planning 
with a focus on the general picture of international and d omestic development. It is a major measure 
to demonstrate China's  determination to expand opening up and actively promote economic 
globalization.  
President Xi Jinping pointed out that the construction of a free trade pilot zone on the whole island 
of Haina n should be centered on institutional innovation. More power should be granted to reform 
and support Hainan in bold trials and development with its own efforts, to speed up the establishment 
of an international and convenient business environment according  to law, as well as an open, fair, 
integrated and efficient market environment. It is necessary to make greater efforts to change 
government functions, deepen the government streamlining, delegate power to lower levels, 
strengthen regulation, optimize serv ice reform and comprehensively enhance the governments 
governance capability. We need to implement a high -level trade and investment liberalization and 
facilitation policy, and adopt a comprehensive management system of pre -establishment national 
treatment  plus negative list for foreign investment. With a focus on seed industry, medical care, 
education, sports, telecommunications, internet, culture, maintenance, finance, and shipping among 
other key areas, we will deepen the opening -up in modern agriculture , high -tech industries and 
modern service industries, promote the accelerated development of service trade, protect the 
legitimate rights and interests of foreign investors and promote the gradual opening of the shipping 
industry.  
4.1.1 Proactively promoting international cooperation over the Belt & Road Initiative , 
page 12, paragraph 4.3  
Question  
"Under the Belt and Road Initiative, trade connectivity has been greatly increased. Total trade 
between China and other Belt and Road countries in 2014 -2017 has exceeded US D 4 trillion, and 
China's accumulative investment in these countries near US D 60 billion. Trade and investment 
facilitation has also been significantly enhanced. For example, for Kazakhstan and other Central 
Asian countries, Customs cleara nce time for agricultural produce exported to China has reduced by 
90%. " 
Such improvements reflect China's  commitment to trade facilitation and Singapore would like to 
learn more about the specific measures that have been deployed. Could China elaborate on  some of 
the measures, particularly in relation to relaxation of cabotage rules, AEO -MRA, or FTA provisions, 
that it has deployed to improve customs clearance time?  
Reply  
China customs actively carries out AEO mutual recognition cooperation  with other countries s and 
hopes that with mutual recognition convenience measures  such as reducing documents review, 
decreasing inspection rate  and priority  inspection, it can  further cut down customs clearance time  of 
cross-border trade  and improve  the security and convenience of international trade.  WT/TPR/M/3 75/Add.1  
 
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  RUSSIAN FEDERATION  
Report by the Secretariat - WT/TPR/S/375  
1 ECONOMIC  ENVIRONMENT  
1.2 Recent Economic  Developments , 1.2.3 Other structural  measur es, page 23, 
paragraph  1.30 
Related  to the role of SOEs,  the overcapacity  issue concerns  both the public  and private  sectors  
and has domestic and international implications. There appears to be overcapacity in at least 
ten sectors including  coal, steel,  cement,  plated  glass,  aluminium,  chemicals,  paper,  solar power,  
shipbuilding, and  coal fuelled  power.  Firms  in these  sectors  are defined  by low capacity  utilization  
rates as well as incurring losses. Overcapacity is also damaging as it has an effect on medium -term 
growth,  the environment,  and financial  stability.  Cognizant  of these  problems,  the authorities  
outlined  capacity  and employment  reduction  targets  for the coal and steel sectors  for 2016-20 
(Sections  4.2 and 4.3). According to official data, the authorities met capacity targets in 2016 and 
are on track to meet  2017 targets, partly due to tighter enforcement of environmental and 
regulatory standards.  Total employment  in the two sectors  is also 26-27% (around  1.9-2.6 million  
people ) below  2013 levels. However,  it appears  that some  part of the capacity  reduction  came  
from the closure  of already -idle plants, and there is still limited restructuring of overcapacity firms' 
outstanding  debt.26 
Question 1  
Could China provide the data demonstrating that there is overcapacity in  shipbuilding sector?   
Reply  
According to Clarkson's data, the completed global shipbuilding volume in 2017 was 97.82 million 
DWT, which was 58.8% of the highest annual delivery. At the same time, the current new ship price 
is still at a historical low, which also indicates that  the market is still oversupplied.  
Question 2  
How overcapacity in shipbuilding sector is regulated by the competent  authorities?   
Reply  
We will give full play to the decisive role of the market in resource allocation, strengthen the dynamic 
management of e nterprises which is in line with the Standard Conditions of the Ship Industry, guide 
the gathering of social resources to high -quality enterprises, and accelerate the phase -out of 
backward production capacity.  
Page 24, paragraph  1.32 
The PBOC  urged  banking  institutions  to implement  various  policies  to provide  financial  support  
to address overcapacity issues in the coal and steel sectors (Sections 4.2 and 4.3). It also improved  
the system of policies to support green finance and stepped up efforts for green  financing.  
Question 3  
Considering that green finance plays an important role in developing additional mechanisms aiming  
at further  decarbonisation  of the economies  worldwide,  could  you please  list existing  green  
finance schemes.  Do these  schemes  suppose  more favourable  financing  terms  for eligible  projects?  
What is the current regulation related to green  finance?   
Is there  any regulation  for green  bonds  issuance  in China?  Does this regulation  correspond  
with international standards (for example, Green Bonds  Principles)?   WT/TPR/M/3 75/Add.1  
 
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  In the meantime, could you please specify the criteria that determine project eligibility within  current 
green finance  schemes?   
Reply  
China's green financial mechanism and regulatory requirements : 
In order to promote the orderly and high -quality development of green finance, China has introduced 
a series of policies and regulatory systems for green finance. On 31 August 2016, the People's Bank 
of China and relevant departments issued the Guiding Opi nions on Building a Green Financial System; 
on 30 June 2017, the People's Bank of China issued the Work Division Scheme on Guiding Opinions 
on Building a Green Financial System, and overall objectives, timetable and road map for the 
development of the gree n financial system were determined.  The China Insurance Regulatory 
Commission (CIRC) issued the Green Credit Guidelines and the Green Credit Statistics System, which 
standardized the fund investment and data reporting requirements of green credits. At the same 
time, CIRC required financial institutions to submit the Self -evaluation Report on the Implementation 
of Green Credit on an annual basis. In 2018, the People's Bank of China issued the Special Statistical 
System for Green Loans to further standardize green loan statistics.  
Regulatory Requirements on Issuing Green Bond  
The People's Bank of China Announcement No. 39 of 2015 clarified the requirements for the issuance 
and management of green financial bonds, and attached the Green Bond Support Project Ca talogue 
(2015 Edition) to determine the capital investment of green financial bonds. The Green Bond 
Issuance Guidelines issued by the Development and Reform Commission regulate the issuance 
management of green corporate bonds. The Association of Dealers is sued the Guidelines for Non -
Financial Corporate Green Debt Financing Tools and supporting forms, stipulating that the 
investment of green debt financing instruments should be in line with the Green Bond Support 
Project Catalogue (2015 Edition). The CSRC is sued the Guiding Opinions on Supporting the 
Development of Green Bonds to regulate the issuance management of green corporate bonds.  
On 16 December 2017, the China Securities Regulatory Commission revised the Contents and 
Formats of Information Disclosure of Companies Offering Public Offerings No. 2 - Contents and 
Formats of Annual Reports (Revised in 2017) and the Disclosure of Information and Format Norm 
on Companies that Issue Securities Publicly. No. 3 - Contents and Formats of the Semi -annual Report 
(Revised in 2017). In March 2018, the People's Bank of China issued the Notice on Strengthening 
the Supervision and Management of the Duration of Green Financial Bonds (Yinfa [2018] No. 29) 
and the Green Financial Bonds Information Disclosure Specification a nd the information disclosure 
report template, putting forward normative requirement on the content standard of information 
disclosure during financial debt duration. The implementation of above -mentioned policies has 
effectively promoted the internalizati on of green projects and green financial externalities, improved 
the rate of return on green projects, reduced the cost of financing, and strongly supported and met 
the diversified financing needs of green projects.  
2 TRADE AND INVESTMENT  REGIMES  
2.4 Investm ent Regime , 2.4.2 Examination and approval  procedures , pages 41-42, 
paragraph  2.44 
The latest version of the Catalogue of Investment Projects Subject to Government Approval  was 
issued in December 2016. The Catalogue indicates in which instances FIPs are subject to approval  
and the authorities in charge of undertaking the procedure.39 Depending on the amount invested or  
location of  the project,  approval  is granted  by various  agencies  (Table  2.3).40 Under  the latest  
Catalogue, provincial governments may app rove restricted projects funded by foreign investment of 
up to US D 300 million  (compared  with USD 100 million  previously).  The Catalogue  also revoked  
approval requirement  for two items  and delegated  approval  authority  to local governments  for 
15 items;  it lists specific projects that require approval of the Government for both domestic and 
foreign enterprises  in such areas as: agriculture, energy, transportation, information technology, 
raw materials, manufacturing of machinery, light manufacturing, high an d new technology and 
construction in  urban areas. In the case of projects involving "serious" overcapacity, including steel, 
electrolytic  aluminium,  cement, sheet glass and vessels, the approval process is outlined in a specific WT/TPR/M/3 75/Add.1  
 
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  piece of legislation.41 The authorities state that in accordance with requirements of existing policies, 
projects designed to  expand capacity in any of these sectors are strictly  prohibited.  
Question 4  
Could China describe the policies that prohibit projects designed to expand capacity  in the vessels  
sector?   
Reply  
In order to actively and effectively resolve overcapacity in the vessels  and other sector s, in 2013, 
the State Council issued Guidelines on Eliminating Production Overcapacity (Guo Fa [2013] No. 41), 
which set clear r equirements for the vessels  sector  to resolve overcapacity. It is strictly forbidden to 
build new projects bringing extra production capacity. Any local government or department shall not, 
in any name or in any form, approve and register any new project th at will bring extra production 
capacity to the industry already with severe overcapacity.  
Question  5 
Could  China  describe  indicators  which  are used to assess  "the seriousness " of overcapacity 
in the vessels  sector?  
Reply  
No relevant indicators.  
Question  6 
What is the trigger  for prohibition  of projects  designed  to expand  capacity  in the vessels sector?  
Reply  
China has been working to effectively defuse the overcapacity.  
3 TRADE POLICIES AND PRACTICES BY  MEASURE  
3.1 Measures Directly Affecting  Imports , 3.1.1  Customs procedures, valuation, and  
requirements , page 45,  paragraph  3.2 
China  has continued  to make  efforts  to reform  and harmonize  customs  procedures  across  its 
42 customs  areas  with a total of more than 200 individual  offices.  In June 2016,  the National  
Customs  Clearance Integration Reform was launched as a pilot phase; it was rolled out nationwide 
in July  2017. The  Reform  covers  the whole  import  declaration  process  and has as a main objective  
improving  the efficiency  of clearance  procedures.  The authorities  indicate  that nationwide  
clearance  times  were reduced to an average of 16.7 hours in 2017, from over 22 hours in 2016. 
According to  the authorities, about one third of imports are now declared through single  windows.  
Question 7  
Are there  any plans  for further  decreasing  of average  import  clearance  time?  If yes, what is 
the minimum clearance time that China plans to  reach?  
Reply  
On the basis of the integration of customs and inspection, we will further promote the integration of 
national custom s clearance integration reform, further reduce links and procedures, optimize the 
operation process and improve the efficiency of customs clearance.  WT/TPR/M/3 75/Add.1  
 
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  Page 46, p aragraph  3.5 
"Enterprises are classified into different groups based on risk analysis. Customs inspection  and 
supervision, including for exports, depend upon the enterprise's rating (Section 3.2.1). Goods 
imported  by high-risk enterprises  are inspected,  while other  exports  are released  through  fast-
track clearance or a "low -risk examination". Enterp rises are categorized according to their credit 
rating  into: authorized enterprises, enterprises of general integrity, and dishonest  enterprises ." 
Question 8  
"Enterprises are classified into different groups based on risk analysis  Enterprises  are categorized 
according to their credit rating into: authorized enterprises, enterprises of  general integrity, and 
dishonest  enterprises. " 
What are the criteria for inclusion of enterprises in each category? Where is such  information 
published?  
Reply  
China C ustoms implements corporate credit rating for enterprises. According to the Measures for the 
Administration of Credits of Customs Enterprises of the People's Republic of China (Order No.  237 
of the General Administration of Customs), the Customs recognizes  enterprises as certified 
enterprises, general credit enterprises and untrustworthy enterprises according to the credit status 
of enterprises. The certification enterprise is an AEO enterprise of China Customs, which is divided 
into advanced certification enterprises and general certification enterprises.  
The certification enterprise shall comply with the Customs Certification Enterprise Standards 
formulated by the General Administration of Customs. The certification standards are divided into 
five categori es: internal control, financial status, compliance standards, trade safety and additional 
standards. There are 32 specific standards for advanced certification companies, and 29 specific 
standards for general certification enterprises.  
If the enterprise h as one of the following circumstances, it will be deemed as untrustworthy by 
customs: smuggling crimes or smuggling activities; the number of violations of customs supervision 
regulations by non -declaration enterprises within one year exceeds relevant tota l document such as 
the previous year's customs declaration, entry and exit filing list, and inbound and outbound vehicle 
manifests by one thousandth and the amount of customs administrative punishment exceeds 
1 million yuan; the number of violations of cus toms regulations by the customs declaration 
enterprise within one year exceeds relevant total document such as the previous year's customs 
declaration, entry and exit filing list, and inbound and outbound vehicle manifests by five in ten 
thousand and the t otal amount of administrative penalty imposed by the customs is more than 
300,000 yuan; arrears of tax payable or arrears of fines; after on -the-spot inspection, enterprise 
that cannot be found through the residence or business premises registered at the c ustoms, and it 
is impossible to contact the enterprise through the contact information registered at the customs, 
and is listed in the Directory of Abnormal Credit Information Business for more than 90 days; obtain 
improper benefits in the name of customs or other enterprises; conceal the truth from the customs 
or provide false information to affect corporate credit management; resist and obstruct customs 
officials from performing their lawful duties, and the circumstances are serious;  enterprise included 
in Joint Punishment List of State Dishonesty as a result of criminal offence.  
The rest are general credit companies.  
China Customs publishes the above information to the public through public channels such as 
announcements.  
3.1.4 Other charges affecting  imports, page 50, paragraph  3.25 
Imports,  like domestically  produced  goods,  are subject  to Value  Added  Tax (VAT).  VAT on imports  is 
collected  by Customs  on behalf  of the State  Administration  of Taxation  (SAT)  and based  on the c.i.f. 
price plus the import  duty. If goods  are also subject  to the consumption  (excise)  tax, VAT is calculated 
including  the consumption  tax. VAT on goods  has two rates:  11% (down  from 13% in July 2017)  and WT/TPR/M/3 75/Add.1  
 
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  17%. The lower rate applies to various food products, agricultural machinery,  and books. The list  of 
products  that are exempt  from VAT has not changed  since the previous  review.  Domestically  
produced agricultural products sold directly by the producer continue to be exempted from VAT, 
while imported goods are not. According to the authorities, the main beneficiaries of this provision 
are small -scale farmers.  
Question 9  
Are importers of agricultural products also exempt from VAT? What are the  criteria?  
Reply  
According to the Provisional Regulations on Value Added Tax, self -produced agricultural products 
sold by agricultural producers are exempt from VAT. "Self -produced agricultural products sold by 
agricultural producers" refers to self -produced agricultural products that are directly engaged in 
planting, harvesting, and animal feedi ng, fishing units and individuals. For agricultural products 
importers selling outsourced agricultural products, which are not subject to tax exemption, VAT shall 
be levied at the prescribed rate.  
3.3 Measures Affecting Production and  Trade , 3.3.1  Incentives , pages 70-71, Table 3.14 
Question 10  
Could China confirm the provision of oil subsidy for its domestic fishery  and aquaculture 
in 2015-2017?  
Reply  
China has provided the confirmed information available in the upcoming 2015 -2016 central and local  
notifications.  
Question 11  
Could China provide the amount of payment under this oil subsidy programme  for its domestic 
fishery and aquaculture in  2015-2017?  
Reply  
China has provided the confirmed information available in the upcoming 2015 -2016 central and  local 
notifications.  
3.3.3 Sanitary and phytosanitary  requirements , page 76, p aragraph  3.137  
Nonetheless, during the period under review, China introduced various regulations related to  
sanitary and phytosanitary requirements in the form of inter alia  AQSIQ Decrees. These include: 
Measures  for the Supervision and Administration of Inspection and Quarantine of Entry -Exit Cereals 
(AQSIQ  Decree No.  177 of 2016),  Measures  for the Administration  of Units and Personnel  for 
Entry -Exit Quarantine (AQSIQ  Decree  No. 181 of 2016),  Administrative  Measures  for Health  
Licence  at Frontier  (AQSIQ Decree No. 182 of 2016), Measures for the Supervision and 
Administration of Inspection  and Quarantine  of Entry  Aquatic  Animals  (AQSIQ  Decree  No. 183 of 
2016),  and Administrative  Measures for Quarantine on Entry -Exit Cruises (AQSIQ Decree No. 185 
of 2016).  
Question 12  
Could  the People 's Republic  of China  please  elaborate  on the current  regulation "Measures for 
the Supervision and Administration of Inspection and Quar antine of Entry -Exit Cereals (AQSIQ 
Decree No. 177 of 2016). " How does it modify control, inspection and approval  procedures?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Measures for the Supervision and Administration of Inspection and Quarantine of Imported and 
Exported Grain are based on  existing laws and regulations and mature experience and practices, 
soliciting opinions from the society and WTO members, and implementing relevant legislative 
procedures for publication. The Chinese revision of this management method is scientific, reason able, 
open and transparent, and in line with the WTO -SPS principle.  
Page 77, p aragra ph 3.142  
During  the period  under  review,  eight specific  trade concerns  (STCs)  were raised  by Members  in 
the Committee on Sanitary and Phytosanitary Measures regarding SPS measures maintained by 
China,  of which  three  were raised  for the first time. These  STCs refer to: lack of transparency  for 
certain  SPS measures; import restrictions in response to the Fukushima nuclear power plant 
accident;  measures on  bovine  meat;  quarantine  and testing  procedures  for fish; import  restrictions  
due to African  swine fever, Schmallenberg virus, and avian influenza; proposed amendments on 
GMOs; and an import  ban on fresh  mangosteen.  
Question 13  
The Secretariat Report states that specific trade concerns raised during the  period  under review 
refer to a lack of transparency for certain SPS measures. Could the People 's Republic  of China 
provide information on that, which measures have been or expected to be taken by the  Chinese 
author ities in order to enhance transparency on the SPS measures mentioned in the  paper?  
Reply  
Please ask the Russian Federation to list which of the above -mentioned special trade concerns lack 
transparency. The Chinese side will have a serious study.  
3.3.7 Intellectual property  rights  
Question 14  
In the framework  of information  exchange  on the specific  features  of national  IP systems  
kindly provide  more details  on the cases  of application  of anti-monopoly/unfair  competition  laws 
to the relations arising from  the use of IP  rights.  
Reply  
At present, three entities involved in anti -monopoly are undergoing institutional reforms, and no 
specific case is currently available.  
Page 97, paragraph  3.223  
China's main laws and the respective amendments concerning IPR hav e remained largely  unchanged 
since its previous Review (Table  3.24) . 
Question 15  
Table 3.24 "Summary of IPR legislation in China, 2017" does not mention domain names as objects  
of intellectual property rights. Are domain names protected by law? If yes, please describe the  
respective legal protection  mechanisms.  
Reply  
The domain name is protected by law. The Measures for the Administration of Internet Domain 
Names promulgated by the Ministry of Industry and Information Technology has standardized the 
mana gement, service, operation, maintenance and supervision of domain names. The Interpretation 
of Several Issues Concerning the Application of Law to Cases Involving Civil Disputes on Computer WT/TPR/M/3 75/Add.1  
 
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  Network Domain Names by the Supreme People's Court (legal interpre tation [2001] No. 24) protects 
the domain name as a kind of civil rights and interests.  
Question 16  
Table 3.24 "Summary of IPR legislation in China, 2017" does not mention if legal protection is  
granted to databases. Are databases considered as an object of IP rights? If yes, please describe  
the respective legal protection  mechanisms.  
Reply  
According to Article 14 of the Copyright Law of the People's Republic of China: the compilation of a 
number of works, pieces of works, or data or other materials that d o not constitute the works, the 
selection of its contents or the arrangement of original works, for the assembly works, the copyright 
of the works shall be enjoyed by the assembler, but the copyright of the original works shall not be 
violated when exercis ing the copy rights of the works. As a result, if the database is ingenious in the 
selection or arrangement of the material, the assembly works in the sense of the copyright law of 
China will be protected by the copyright law of China according to law.  
3.3.7.2 Industry  property , 3.3.7.2.2  Trademarks , page 100, paragraph  3.234  
The agency responsible for the examination of trademark applications, registration and  
administration remains  the Trademark  Office  (TMO)  under  SAIC.  Local enforcement  authorities  
are responsible  for the administration of trademarks at the provincial level and below. The 
settlement of  disputes regarding trademarks is the responsibility of the Trademark Review and 
Adjudication Board, which  is also responsible for reviewing decisions made by the TMO and ruling 
on disputed cases on trademarks. The authorities indicate that it takes about eight months from  the 
acceptance of an application to the notification of issuance of a certification, and the review period 
in trademark disputes is about 12 months.  
Question 17  
The WTO Secretariat's Report informs that the agency responsible for examination of trademark 
applications is the Trademark Office under SAIC. However, we understand that  currently there is an 
ongoing reform of administrative authorities in China that may affect SAIC's  competences with 
regard to trademark examination. Could you please confirm? If yes, please provide  details.  
Reply  
The institutional reform has not made a negative impact on the trademark review management 
function of the Trademark Office. The Trademark Office has strengthened the review power, 
optimized the review process, and strengthene d business management measures to ensure a stable 
improvement of the quality and efficiency of trademark review. First, on the basis of the 
establishment of three Beijing -foreign trademark review and cooperation centres, the Zhengzhou 
and Jinan Trademark E xamination Cooperation Centres will continue to be established in 2018 to 
strengthen the review power; second, to promote the independent review of trademark review work 
and strengthen the training of independent reviewers; third, to strengthen business ma nagement, 
unify review standards, work systems and quality assessment; has revised the  Code of Practice for 
the Substantive Examination of Trademarks, and issued a working system such as Measures for 
Quality Management Supervision of Substantive Examinatio n of Trademark Registration Application 
(Trial) to strengthen the quality supervision capability and improve the quality and efficiency of the 
review.  
Page 101, paragraph  3.235  
The legal basis for trademark registration and protection remains the Trademark  Law, its 
Implementing Regulations and various rules issued by SAIC. During the review period,  no 
amendments were made to the Trademark  Law.  WT/TPR/M/3 75/Add.1  
 
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  Question 18  
The WTO Secretariat's Report informs that trademarks are protected by  the Trademark  Law. Does 
the said law (or other  applicable  acts) provide  for registration  of hologram marks, colour per se  
marks, sound marks and position marks? If yes, are there any specific  guidelines available  in English  
containing  rules for examination  of such marks?  If yes, please  provide  links.  Are there any actual 
cases of successful registration of such marks? If yes, please provide  examples.   
Reply  
http://sbj.saic.gov.cn/gzdt/201701/t20170104_228686.html  
Pursuant to Trademark Law, the Trademark Office accepts trademark applications of sound, 
three -dimensional symbols, combination of colours and other new -type trademarks instead of 
holographic trademarks or single -colour trademarks. Standards for examining sound trademarks, 
three -dimensional trademarks and colour -combination trademarks are included in Standards for 
Trademark Examination and Trial, whose English version is not available but here is the link for its 
Chinese version.  
3.3.7.3 Copyright and relat ed rights  
Ques tion 19  
Please provide detailed information on the current legislation on liability for copyright infringements 
on the  Internet.   
Reply  
Concerning violence of copyright infringement on the Internet, civil remedies, administrative 
remedies and criminal remedies are provided in Chinese laws. As for civil protection, Copyright law 
and the Interpretation of the Supreme People's Court on Severa l Issues Concerning the Application 
of Law in the Trial of Cases Involving Copyright Disputes over Computer Network  have had provisions 
on civil liabilities of infringing copyright and relevant rights of Internet works. As for administrative 
protection, pu rsuant to Copyright Law, Measures for the Implementation of Copyright Administrative 
Punishment and Regulation on the Protection of the Right to Communicate Works to the Public over 
Information Networks, for infringements provided in Article 18 of Regulati on on the Protection of the 
Right to Communicate Works to the Public over Information Networks and undermining public goods 
in digital environment, copyright authorities are authorized to order the violators to stop 
infringement and impose administrative p unishments according to the seriousness. As for criminal 
protection, concrete circumstances of Crime of Copyright Infringement are provided in Criminal Law. 
If a relatively large illegal income or other serious circumstances are involved, the criminal shal l be 
sentenced to imprisonment, criminal detention or fines.  
Page 103, paragraph  3.248  
The NCAC continues to administer copyright on a national scale; copyright registration  and 
administration  is also carried  out by the respective  local copyright  administration  offices  at 
the provincial  level.  
Question 20  
Please provide detailed information on the current system of collective  management of copyright 
and related  rights.   
Reply  
Music Copyright Society of China, established in 1992, is the first copyright collective administration 
organization. Since Regulation on Collective Administration of Copyright came into force, the NCAC 
intensified the examination and approval of copyright  collective administration organizations, 
including China Audio -Video Copyright Association, China Written Works Copyright Society, Images 
Copyright Society of China and China Film Copyright Association. This process marks the initial WT/TPR/M/3 75/Add.1  
 
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  establishment of a co mplete copyright collective administration  system for works such as music , 
audio -videos, images, written works and films, which basically covers the main fields where works 
are used.  
Since their establishment, the five copyright collective administration o rganizations have been 
seeking for appropriate administration methods for right types in necessity. They started the service 
of collecting and distributing charges of collective administration. They have been actively admitting 
more members and making them selves more representative. International communication and 
cooperation of Music Copyright Society of China have been strengthened, services of collective 
administration have been expanded and their influence is gaining momentum.  
In 2017, Music Copyright S ociety of China admitted another 405 new members with the aggregation 
registering 8907. Its collection of charges for the use of music work copyrights amounted 
216 million  CNY, with a year -to-year increase of 17%. China Audio -Video Copyright Association ha d 
an annual revenue of 186 million CNY, admitting 177 new members. China Written Works Copyright 
Society 's collection of charges for the use of written work copyrights amounted 5.2 million CNY. It 
distributed remuneration to members and other obligees 38 t imes, amounting 3365500 CNY, 
involving 5243  articles and benefiting thousands of writers. It admitted 461 new members and the 
aggregate registers 14000, which makes it a visual arts administration organization with high 
representation  and wide range of rig hts. China Film Copyright Association has been actively 
participating into opinion collections of legislatures and judicial branches such as the NPC and Beijing 
Intellectual Property Court and advocating in representative of obligees. It also completed the  
surveys and trial authorization for film copyright collective administration. It also did a good job in 
collecting and submitting copyright protection information of key movies in their show period, 
assisting authorities to serve film obligees.  
3 TRADE POLI CIES BY  SECTOR  
4.1 Agriculture, Forestry, and  Fisheries , 4.1.3 Policy  instruments , 4.1.3.1 Border  
measures , 4.1.3.1.1 Measures affecting  imports , page 115, paragraph  4.10 
The NDRC  is responsible  for allocating  TRQs for grains  and cotton,  and MOFCOM  allocates  the 
rest. Some  products  subject  to TRQs (i.e. grains,  cotton,  and sugar)  are also subject  to state 
trading.  In these cases, one part of the quota is allocated to state -trading enterprises and the other 
part to  other enterprises.  The administration  methods  of the TRQs as described  by China  in its 
notification  to the WTO (MA:1 G/AG/N/CHN/2) have remained  unchanged.  
Question 21  
Could China describe the principles of selling grains imported by the  state-trading enterprise under 
the TRQs?   
Reply  
When state trading enterprises import for TRQ agricultural products, the sales prices are mainly 
determined according to the supply and prices on the domestic and international markets, the 
enterprises assume sole responsibility for their own profits and losses.  
Question 22  
How do state trading enterprises determine  the volumes  of selling  grains  imported under respective 
TRQs among domestic buyers? Based on which principles the state trading enterprise allocates the 
imported amount of grains among domestic  buyers?   
Question 23  
What requirements  shall domestic  buyers  follow  in order  to buy from the state trading enterprise 
the amount of grain imported by such STE under the  TRQs?   WT/TPR/M/3 75/Add.1  
 
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  Question 24  
Is this state trading enterprise a mediator between foreign suppliers of grains  and domestic  buyers?  
Reply  to 22 -24 
If private enterprises, grain reserves and other government entities need to purchase grain, they 
can contact directly with the state trading enterprises. After being allocated with the import  tariff 
quota, enterprises can conduct imports independently according to the market condition. When state 
trading enterprises act as import agents of other enterprises, resale prices of import merchandise 
are roughly the import CIF prices plus agent servi ce fees of a certain proportion, without any import 
mark-up. 
4.3 Manufacturing , 4.3.2 Selected  subsectors , 4.3.2.4 Iron and  steel , page 145, 
paragraph  4.111  
The iron and steel sector  in China  has continued  to be characterized  by excess  capacity  over 
recent  years. According to the Global Forum on Steel Excess Capacity (GFSEC), the country plays  an 
important role in global efforts to reduce  overcapacity.  
Question 25  
Was the creation  and functioning  of such format  as Global  Forum  on Steel Excess Capacity  one 
of the core reasons  China  started  to reduce  excess  capacity  in the iron and steels sectors?   
Reply  
State Council of China has launched industrial restructuring in steel and other industries since 2011. 
China is among the first countries to solve the problem of steel excess capacity, which reflects its 
self-consciousness, activeness, steadfastness, conti nuousness and necessity of its development 
instead of exterior pressures. Steel excess capacity was the consequence of the global combat 
against financial crisis. On G20 Summit in Hangzhou, a consensus of Global Problem, Joint Resolution 
has been made, and  Global Forum on Steel Excess Capacity came into being. China has been an 
active participator of this forum. China's  efforts and efficiency in de -capacity are witnessed by all. 
China is willing to share experience and methods with all member states in expe ctation for a better 
implementation of G20 consensus.  
Report by China - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF  
AN OPEN  ECONOMY  
Page 4, paragraph  3.1 
Based  on the new vision  of development,  China  is engaging  itself in the development  of an 
open economy in a wider range and more areas, at deeper level and higher standards, and expediting  
the transition  from opening  up itself to promoting  the opening  up of the world.  Back in 2015,  
China released  guidelines  on establishing  new institutions  of an open economy.  The overall  
objective  is to put in place new mechanisms for market allocation of resources, develop new 
administration  models for economic operation, create a new layout of all -round openness and forge 
new advantages in  terms of international competition and  cooperation.  
Question 26  
China  started  deep reforming  of its economy  (e.g.,  developing  banking  sector, creating free 
trade areas, etc.) after its isolation in the financial markets because of  American sa nctions in 1989. 
After that, China made significant progress in almost all sectors of economy.  What were  the core 
principles  of liberalization  at that time and today?  Are the temps  of liberalization  and opening the 
economy still remaining the  same?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
China has been steadfast in deepening reforms in an overall manner, perfecting socialist market 
economy mechanism and redefining the relationship between government and market. The Market 
is designed to play the decisive role in resource allocation, and me anwhile the government is 
supposed to function better. China has been promoting high -level opening, widening admission to 
market substantially, creating more attractive investment environments, implementing high -level 
facilitation and liberalization polici es for trade and investment and developing a new structure for 
overall opening. China has been firmly constructing an opening global economy, supporting multi -
lateral trade mechanism, promoting free trade areas construction and meanwhile opposing all forms  
of protectionism. China actively opens its market to steer economic globalization towards opening, 
inclusiveness, reciprocity, balance and win -win. 
3.1 Setting new mechanisms for sustainable trade  development , 3.1.2 Continuously 
enhancing trade  facilitation , page 5, paragraph  3.6 
On 1 July 2017, the integrated Customs clearance reform was rolled out nationwide. National  centers 
for Customs risk prevention and control and for tariff collection and administration were  established, 
and Customs  clearance operations  began  to follow  "one-time declaration  and phased  processing" 
approach. Meanwhile, construction of Single Window for international trade has been further  pushed 
ahead. Single Window in a standard format is now implemented in all ports of entry in China.  To 
further increase transparency, all Customs in China have introduced the version  1.1 online integrated  
platform  for businesses.  The nationwide  average  import  clearance  time in 2017 was 15.87  hours,  
a 36.85%  decrease  compared  with 2016,  and the average  export  clearance  time was 1.11 hours,  
a 38.24% drop from the previous  year. 
Question 27  
Please  clarify  the mentioned  approach  Customs  clearance  operations  began  to follow 
"one-time declaration and phased processing"  approach.   
Reply  
This approach is taken by Risk Prevention and Control Centre and Tariff Collection and Administration 
Centre. Secure entry and tariff collection of commodities are separated. Risk Prevention and Control 
Centre examines the name, quantity, limitation/prohibition  class and other secure entry attributes 
of commodities. Tariff Collection and Administration Centre examines the category, price, place of 
production and other tariff attributes of commodities. The process can be concretely interpreted as 
follows: (1) Aft er confirming the manifest declaration of imported or exported commodities, the 
corporate declares, calculates the tariff and pays. (2) The customs screens with computers using the 
parameters configurated by the Risk Prevention and Control Centre. For decl arations not randomly -
selected, the corporate can take its commodities directly into clearance process. For declarations 
randomly -selected, examination or evaluation of commodities will be launched. (3) After clearance, 
Tariff Collection and Administration  Centre processes a batch verification of declared data. For data 
with potential tariff risks, the corporate will be asked to re -declare or receive an inspection order.  
The approach "one -time declaration and phased processing" will shift the status quo of concentration 
of clearance all in the port by separating secure entry and tariff collection. Corporates also benefit 
from fast clearance, low delivery costs and other reform bonuses. In this way, secure entry and tariff 
collection are both enhanced, and ri gorous regulation and trade facilitation are well combined.  
Question 28  
Single  Window  in a standard  format  is now implemented  in all ports of entry  in China.  In this 
case what are the reasons  for China  to retain  Article  10.4 of the TFA Single  Window as category B  
measures?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to Category B measures, China should fulfil the commitment of building a single window 
in three years since the Agreement comes into force (that is before 22 February 2020). At the end 
of 2017, the standard single window of Chinese international trade realized full coverage of all ports. 
It is planned that the coverage rate of main functions of the standard single window will be lifted to 
70% before the end of this year, while lo oking to the international advanced level, further digging 
into its potential and deepening the application and construction of the Single Window. In this way, 
the functions of China's  single window will cover all main links along the chain of internationa l trade 
and a single window at the international advanced level in line with the new pattern of all -round 
opening up will be built by 2020.  
3.2 Creating more attractive investment  environment , 3.2.3 Further opening up the 
manufacturing and services  sectors , page 6, paragraph s 3.13-3.14 
In June 2017, China released the lastly revised Catalogue for the Guidance of Foreign  Investment 
Industries (2017 Catalogue). In this revision, sectors previously in the encouraged category but  with 
equity ratio capping and sectors in the restricted and prohibited categories were consolidated into  
the negative list for market access of foreign investment, and sectors where same access prohibitions  
and restrictions  are applied  equally  to both domestic  and foreign  investments  were no longer  
included. Compared  with the last 2015 Catalogue,  the number  of restrictions  was reduced  from 
93 to 63. For sectors not in this negative list, investment access restrictions, or in other words  
"special administrative measures on foreign investment access" shall in principle not be  imposed.  
Compared  with the 2015 Catalogue,  the main changes  in this Revision  were as follows.  In 
manufacturing, China lifted access restrictions in sectors such as rail transportation  equipment, 
automotive electronics, battery for new -energy vehicles, motorcycles, edible fat and oil, ethanol  
fuel, and relaxed access restrictions in sectors such as purely electric -powered vehicles. In mining,  
access restrictions were removed in sectors such as non -conventiona l oil and gas, precious metals 
and lithium mines. In services, access restrictions were eliminated in sectors and areas  including  road 
transport  of passengers,  ocean  cargo  tally, credit  investigation  and rating,  accounting  and 
auditing,  wholesale  markets  of agricultural  products  etc. In the next step, China  will consider 
rolling  out a series  of opening  measures  involving  manufacturing  of vehicles,  ships and aircrafts, 
resources and energy, infrastructure, transport, commercial distribution, professional services etc.   
Question 29  
Whilst the State Council Circular o n active and effective foreign capital use  dated  15 June 
(http://www.gov.cn/zhengce/content/2018 -06/15/content_5298972.htm ), has indicated  the 
necessity to liberalize regulations as regards inward foreign investment, inter alia  in the sphere  of 
invisible trade, the document does not refer to either courier or tel ecommunication  services.  
Meanwhile,  the spur for inter-state trade  in services  may have been hindered  due 2017 Catalogue  
articles  (http://www.ndrc.gov.cn/zcfb/zcfbl/201706/W020170628553266458339.pdf ), strictly  
prohibiting foreign ownership in the spheres of broadcasting and courier  services.  
Taking into consideration the potential for international trade development encapsulated in  the 
aforementioned  spheres  liberalization,  is the list of services  industries  due to opening  to be further 
enlarged  and, if so, to which  extent  is foreign  ownership  participation  in Chinese  companies  may 
be expected to be  permitted?   
Reply  
According to the recently released Special Administrative Measures for Foreign Investment Access 
in Free Trade Zones (negative list) (2018), the area of telecommunications will be further opened 
up and the opening -up policies in the telecommunications field of the Shanghai  Free Trade Zone will 
be extended to other free trade zones.  WT/TPR/M/3 75/Add.1  
 
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  3.2.6  Speeding  up the comprehensive  pilots  on establishing  new institutions  of an 
open economy , page 7, paragraph  3.18 
Thanks to a series of measures to facilitate trade and investment, China's business environment  has 
been further optimized. There is no law or regulation in China requiring foreign enterprises to  
transfer their  technology  to Chinese  partners.  The Doing  Business  2017 by the World  Bank 
indicated  that in the  past three  years,  China' s global  ranking  on the ease of doing  business  had 
risen by 18, and the ranking  on the ease of starting  a business  had climbed  up by 31. In the Doing 
Business  2018,  the time needed  for paying  taxes  in China  has shortened  by 52 hours  compared  
with the previous  year, resulting in a moving -up of 32 in the  ranking.  
Question 30  
The Doing Business 2017 by the World Bank indicated that in the past three  years, China's global 
ranking on the ease of doing business had risen by 18, and the ranking on the ease  of starting a 
business had climbed up by 31. Furthermore, the time needed for paying taxes in China  has 
shortened  by 52 hours  compared  with the previous  year, resulting  in a moving -up of 32 in 
the ranking.  There  were "a series  of measures"  undertaken  to reach  such an outstanding  result.  
Could you, please, specify measures undertaken in finance  sector?   
Reply  
1. Push forward the work on streamlining administration and delegating powers, and streamlining 
and optimizing examination and approval procedures. W ith a view to implementing the spirit of the 
reform on the administrative examination and approval system, pushing forward the work on 
streamlining administration and delegating powers and enhancing the capabilities of banks to resist 
risks, the former Chi na Banking Regulatory Commission amended five administrative permission 
regulations according to the category of matters subject to regulation and released Requirements 
for the Material Catalog ue and Format of Application for CBRC Administrative Permission in 2015. In 
the Decisions on Revising the Implementation Measures for the Administrative Permission of Chinese 
Commercial Banks released in July 2017, priority is given to the conditions for opt imizing the debt 
issue of Chinese commercial banks and supplementary capital instruments; integrating the building 
and opening approval of bank branches; integrating the exit and access of setting up joint -venture 
financing institutions, the involvement of  joint-venture shares and the acquisition of domestic legal 
person financial institutions; further streamlining the examination and approval procedure of senior 
executives and optimizing the approval procedure. Under the Decisions on Revising the 
Implement ation Measures for the Administrative Permission of Foreign Commercial Banks released 
in February  2018, the building and opening approval procedure of the branches of foreign banks will 
be integrated; the approval of the withdrawal of interest -bearing asse ts by liquidated foreign 
financial institutions will be removed; the administrative approval of intermediary services will be 
cleaned up; the approval of the opening of securities investment fund custody business, overseas 
financial management custody serv ices on behalf of clients and financial management services on 
behalf of clients by foreign banks will be cancelled; and the approval of senior executives will be 
streamlined. At present, it is working on the amendment of three other regulations, including  
Implementation Measures for the Administrative Permission of Rural Small -to-Medium Financial 
Institutions and Implementation Measures for the Administrative Permission of Non -Bank Financial 
Institutions.  
2. Further relax access of foreign investment in th e banking sector, to expand space for the 
stimulation of effective investment. In order to implement provisions of the Notice of the State 
Council on Several Measures for Stimulating the Growth of Foreign Investment (Guo Fa [2017] 
No. 39), the Commission h as determined tentative opening up policies, implementation routes and 
timetable for the banking sector. In the principle of equal treatment between domestic and foreign 
investment, the former China Banking Regulatory Commission released the Notice of the General 
Office of CBRC on Some Business of Foreign Banks (Yin Jian Ban [2017] No. 12) in March 2017, 
putting forward explicit regulator policies for some business conducted by foreign banks. In 
February  2018, the former China Banking Regulatory Commission issued Decisions of the CBRC on 
Amending the Implementation Measures of the CBRC for the Administrative Permission of Foreign 
Commercial Banks (Yin Jian Hui Ling [2018] No. 3), saying that some approval steps will be removed 
and some business approval will  be cancelled. In April 2018, the Commission issued the Notice of 
the General Office of the China Banking and Insurance Regulatory Commission on Further Relaxing 
the Access of Foreign Banks (Yin Bao Jian Fa [2018] No. 16) and the Notice of the China Bankin g WT/TPR/M/3 75/Add.1  
 
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  and Insurance Regulatory Commission on Relaxing the Operation Scope of Foreign Insurance 
Brokerage Companies (Yin Bao Jian Fa [2018] No. 19), opening some business fields to foreign banks 
and foreign insurance brokerage companies. At present, the Commiss ion is working on the 
amendment of currently effective laws and regulations and regulatory systems that concern 
promotion and opening -up measures, building a sound prudential regulatory system and supporting 
measures and further boosting the business conve nience of foreign banks in China.  
3. Continue to optimize government services and provide administrative convenience to the 
people. Firstly, the Commission is going to compile guidelines for administrative permission approval 
services for the banking secto r based on the catalogue of administrative permission items of the 
former CBRC and post it on the official website. It will optimize the administrative permission process, 
formulate standards of administrative permission services and bolster standardizatio n. Secondly, the 
Commission will continue to carry out the campaign of reducing certificates for the convenience of 
the people, to remove redundant proof submission. While picking up acceptance notification and 
engaging with other paperwork in financing in stitutions in the banking sector, the person concerned 
are not requested to submit identity certificates as long as he/she has submitted relevant materials 
before, rendering convenience to the people. Thirdly, the Commission will work faster on promoting 
Internet+ administrative services, to boost the ability to render integrated administrative services. 
The equipment of the halls for accepting administrative permission will be further enhanced, setting 
up comprehensive enquiry devices, convenient facilitie s, and hot lines for policy consulting, etc.  
Question 31  
Could China, please  provide more details on regulation in the sphere of protection  of trade secrets 
in China?  Could China, please  provide more information on joint  ventures requirements?  
Reply  
China's  Law against Unfair Competition makes explicit requirements on the protection of trade 
secrets. In addition, according to statistics, from 1 January 2018, when the new Law against Unfair 
Competition came into effect, until the end of May, the nation al industrial, commercial as well as 
market supervision departments  investigated and handled five cases of infringement of trade secrets. 
In view of the nature of trade secret cases, the disclosure of cases of infringement of trade secrets 
shall be subject  to the consent of the parties concerned. With regard to joint ventures, the Law on 
Sino-Foreign Equity Joint Ventures  and the Regulations on the Implementation of the Law on 
Sino-Foreign Equity Joint Ventures  provide for the application and registration o f joint ventures.  
3.4 Strengthening the protection of intellectual property  rights , 3.4.3 Constantly 
strengthening IPR judicial  protection , page 9, paragraph  3.27 
Judicial interpretation and case guidance are important ways of the Supreme People's Court to  guide 
the adjudication and enforcement work of courts across the country. To ensure the  applicable 
standards in law are unified, in March 2016, the Supreme People's Court promulgated  the 
Interpretation on Several Issues concerning the Application of Law i n the Trial of Patent  Infringement 
Dispute  Cases  (II) to address  such problems  as long litigation  duration,  difficulties  in collecting 
evidences  and insufficient  compensation  in patent  litigation.  In January  2017,  the Supreme  
People's Court  promulgated  the Provisions  on Several  Issues  concerning  the Trial of 
Administrative  Cases involving  Trademark  Authorization  and Confirmation,  making  further  
clarifications  on issues  such as the  examination  scope  of trademark  registration  and the protection  
of famous  trademarks  etc. 
Question 32  
Speaking of judicial aspects of the intellectual property rights protection in  courts, could  you please  
clarify  if it is intended  to legislatively  fix the period  of dispute  settlement  time by making 
amendments in corresponding laws of the People 's Republic of  China?   
Reply  
There are provisions about the time limit of trails of the infringement of property rights. Provisions 
about the time limit of the first instance, second instance and retrial are: Article 149 of the Civil WT/TPR/M/3 75/Add.1  
 
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  Procedure Law of the People's Republic of China stipulates: Cases fit to be subject to the general 
trail procedure of the people 's court shall be concluded in six months since the day they are placed 
on file. Where ext ension is rendered necessary under a special scenario, the case may be extended 
by six months at the approval of the chief justice of the court; if further extension is needed, the 
case shall be reported to the people 's court at a higher level for approval ; Clause 1 of Article 176 
stipulates: For cases on appeal, the people 's court concerned shall conclude the trail in three months 
since the second day the case is put on file. Where extension is rendered necessary under a special 
scenario, the extension may  be approved by the chief justice of the court concerned; Article 207 
stipulates: For cases subject to retrial by the people 's court in line with the procedure for trial 
supervision, the legally binding judgement or order shall be given by the court of the  first instance; 
the party concerned may appeal the judgement or order given in the first instance; where the legally 
binding judgement or order is given by the court of the second instance in line with the trail procedure 
of the second instance, the judge ment or order concerned is legally binding; where the higher 
people 's court brings the suspect concerned to trial in line with the trail procedure of the 
second  instance, the judgement or order is legally binding. In other words, the time limit of retrial 
may be applicable to the first instance or the second instance depending on the circumstances.  
Article 270 of the Civil Procedure Law is about the time limit of trials on foreign cases, stipulating 
When the people 's court is working on trials of foreign ci vil cases, it is not subject to the restriction 
of Article 149 and Article 176 of the Law.  
The Supreme People's Court issued Regulations on Strictly Standardizing the Trial Time Extension 
and Postponement of Court Session Opening of Civil and Commercial Ca ses (Fa Shi [2018] No. 9) in 
April 2018, putting forward more provisions about the deduction, extension and re -calculation of the 
time limit of trials.  
3 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION  AND 
BUILDING AN OPEN WORLD  ECONOMY  
4.2 Fi rmly safeguarding the multilateral trading system and striving to contribute  Chinese 
wisdom and  strength , 4.2.3 Earnestly honouring obligations and commitments and 
supporting the daily operation  of the  WTO , page 12, paragraph  4.18 
The notification  obligations  under  various  WTO Agreements  applicable  to China  have generally  
been fulfilled. In the notification of subsidies where information gathering has long been a  
tremendous obstacle for China as the largest developing country, positive progress has also been 
made. While  the notification  used to cover  only subsidies  at the central  government  level,  it now 
has local subsidies included. Next it is planned to cover all administrative regions at the provincial  
level.  
Question 33  
Which  laws regulate  that notifications  cover  local subsidies,  as well? What is the scope of such 
subsidies by  sector?   
Reply  
Please see the 2015 -2016 local subsidy notification to be submitted by China.  
3 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW  AND 
DEVELOPING A  MODERNIZED  ECONOMY  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of  the 
economy , 5.1.4  Resolutely  stepping  up pollution  prevention  and control  and committing  
to building ecological  civilization , page 17, paragraph  5.5 
China  has fully realized  that lucid waters  and lush mountains  are invaluable  assets,  and focused  
on pollution  prevention  and control  with unprecedented  determination  and efforts  to strengthen  
ecological and environmental protection. Forceful measures have been taken to tackle air pollution.  
Encouraging progress  has been made  in establishing  a national  market  for the trading  of carbon  
emission  rights. Energy conservation and emission reduction in key industries have continued to WT/TPR/M/3 75/Add.1  
 
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  make progress,  and energy  structures  further  optimized.  China  has strengthened  the prevention  
and control  of water pollution in key river basins and sea areas, and implemented major ecological 
protection  and restoration  projects.  From 2013 to 2017,  71% of all the coal-fired power  generating  
units in China achieved  ultra-low emissions,  and the proportion  of coal consumption  dropped  by 
8.1 percentage points, while that of clean energy consumption up by 6.3 percentage  points.  
Question 34  
What measures does China apply or plan to apply  on imports in order to protect  the environment?  
Is it going  to impose  bans or restrictions  on imports  of some  products,  such as plastic bags or 
dishes and other products that can potentially harm the environment? If it is so, please,  give more  
details  and describe  the respective  legislative.  Could  China  also clarify  the fiscal measures  it 
applies in automotive sector in order to stimulate population to buy more eco -friendly vehicles?  How 
does the automotive tax scheme differ from type of engines used in imported cars? Does China  plan 
to restrict the use of diesel engine  cars?  
Reply  
China has prohibited the import of waste plastics and will stick to the prohibition. At present, China 
is working on documents about the treatment of plastic pollution by refe rencing the plastic strategy 
of the EU, based on domestic conditions. When the document takes shape, relevant authorities will 
solicit public opinions about it.  
5.2 Implementing  coordinated  regional  development  strategy,  rural  vitalization  
strategy and carrying out targeted poverty  alleviation , 5.2.2 Intensifying targeted poverty 
alleviation and enhancing self -generated impetus  for development in poverty -stricken  
areas , page 18, paragraph  5.7 
China  has continued  to implement  targeted  poverty  reduction  and alleviation  measures  so as 
to ensure that, by the year 2020, all rural residents living below the current poverty line will have  
been out of poverty, and poverty is eliminated in all poor counties and regions. From 2013 to 2017,  
China achieved decisive  progress in the fight against poverty. More than 68 million people were lifted 
out of poverty, including a total of 8.3 million relocated from inhospitable areas, and the poverty  
headcount ratio dropped from 10.2% to  3.1%.  
Question 35  
China has very ambit ious targets in poverty reduction and alleviation measures - "to ensure that, by 
the year 2020, all rural residents living below the current poverty line will have  been out  of poverty,  
and poverty  is eliminated  in all poor counties  and regions".  Meanwhile,  China  made tremendous  
achievements  in fight against  poverty  - "more  than 68 million  people  were lifted out of poverty, 
including a total of 8.3 million relocated from inhospitable areas, and the poverty  headcount ratio 
dropped from 10.2% to 3.1%". What were key financial decisions to reach these  targets?   
Reply  
The State Council Leading Group Office of Poverty Alleviation and Development: The Chinese 
government builds an investment system for poverty alleviation, to ensure that the money spent on 
poverty  alleviation efforts meets the needs of winning the tough battle against poverty. During the 
period of 2013 -2017, central financial authorities spent RMB 282.2 billion on special poverty 
alleviation funds, registering an annual growth of 22.7%; provincial authorities spent 
RMB 182.5  billion on special poverty alleviation funds, registering an annual growth of 26.9%. The 
debt limit of local governments was set at RM B 120 billion, which improved the production and living 
conditions of destitute areas. Nearly RMB 600 billion were spent on poverty alleviation through 
relocation. Micro -credit totalling RMB 443.7 billion were issued, supporting 
11.23  million  impoverished households registered in the poverty document to develop agricultural 
industrialization. The revenue of the flow of surplus indexes of rural and urban construction land 
experiment exceeded RMB 59 billion, which were spent on poverty alleviatio n efforts. The securities 
industry and insurance industry lent increasingly greater support to poverty alleviation efforts.  WT/TPR/M/3 75/Add.1  
 
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  5.3 Advancing modernization of the system and capacity for  governance , 5.3.4  Striving  to 
create  a market  environment  of fair competi tion for all types  of market entities , page 20, 
paragraph  5.17 
China  has vigorously  promoted  the development  of small  and medium -sized enterprises  (SMEs)  
and private businesses. On 1 January 2018, the revised Law on Promotion of Small and  Medium -sized 
Enterprises  took effect.  It aims to safeguard  the level playing  field for SMEs  in line with 
their development.  
Report by the Secretariat - WT/TPR/S/375  
Question  36 
Which  measures  have been taken  to ensure  the level playing  field for SMEs?  In which  areas?  
Reply  
Value -added tax  
Generally speaking, compared with large enterprises, SMEs, especially recently launched small and 
micro enterprises need more supportive policies. Many countries have put forward special favourable 
tax policies for SMEs, to promote th e sustained development of SMEs. At present, under the current 
regulation on VAT, small -scale VAT payers whose monthly turnover is no more than 
RMB 30,000  (RMB 90,000 quarterly) are exempted from VAT.  
Moreover, since 1 May 2018, the annual turnover of smal l-scale VAT payers has been set at 
RMB 5 million. Small -scale VAT payers are subject to simple tax calculation methods.  
Income tax  
In order to support the development of small and micro enterprises, from 1 January 2017 to 
31 December 2019, for eligible sma ll and micro enterprises whose annual taxable income is no more 
than RMB 500,000, they will enjoy a 50% cut and pay the tax at the tax rate of 20%. For details, 
refer to Notice of the Ministry of Finance and the State Administration of Taxation on Expandin g the 
Scope of Favourable Income Tax Policies (Cai Shui [2017] No. 43) and Notice of the State 
Administration of Taxation on the Collection and Administration of the Expansion of the Scope of 
Favourable Income Tax Policies (Announcement of the State Admini stration of Taxation [2017] 
No. 23), etc . 
In line with the decisions of the State Council, from 1 January 2018 to 31 December 2020, for eligible 
small and micro enterprises whose annual taxable income is no more than RMB 1 million, they will 
enjoy a 50% cu t and pay the tax at the tax rate of 20%.  
It should be noted the favourable income tax policies for small and micro enterprises are general 
favourable tax policies. All eligible enterprises can enjoy these policies by law.  
 
3 TRADE POLICIES AND PRACTICES B Y MEASURE  
3.2 Measures Directly Affecting  Exports , 3.2.5 Export finance, insurance, and  guarantees ,  
page 65, paragraph  3.94 
SINOSURE offers short -, medium - and long -term export credit insurance as well as  overseas 
investment  insurance.  There  are several  kinds of short-term export  credit  insurance,  of a maximum 
term of two years: (a) the comprehensive cover insurance, which covers both commercial and  
political risk;  (b) the specific  buyer's  or specific  contract  insurance  policies,  which  cover  in 
addition  buyer - related risks originated by measures decreed by the buyer's country, such as the 
imposition  of restrictions or prohibitions on imports or the cancellation or non -renewal of an import 
licence; (c)  the insurance policy against buyer's breach of contract, which covers the risk of loss of 
payment; (d)  the SME comprehensive cover insurance, which covers receivable risks of export 
enterprises on  payments made both by L/C and non -L/C means; and (e) the SME easy credit  
insurance.  WT/TPR/M/3 75/Add.1  
 
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  Question 37  
Taking int o account the focus of the SME sector development and  China Eximbank/Sinosure 
programme s aimed at the support of SMEs, could you please define specific  programme s and its 
conditions for the SME export oriented  companies.  
Which requirements should the compa ny fulfil to access Sinosure SME easy credit  insurance 
programme s? What are the basic conditions within the  programme ? 
Are there  any specific  medium -long term programme s developed  for the SMEs  launched  by both 
China Eximbank/Sinosure?  If yes, please  specify  whether  any preferential  conditions  for the 
SMEs  were implemented?  
Reply  
There is no specific medium -long term programme  developed for the SMEs launched by China 
Eximbank.  
Report by China  - WT/TPR/G/375  
6 THE WAY  FORWARD  
Page 22 , paragraph  6.2 
China will stick to the new vision of development, continue to explore new methods to improve  
macro - regulation,  and make  further  headway  in supply -side structural  reform.  China  will 
accelerate  the efforts  to turn itself into an innovative  country,  deepen  reforms  in fundamental  key 
areas,  and take tough  steps  to forestall  and defuse  major  risks,  carry out targeted  poverty  
alleviation,  and prevent and control pollution. China will vigorously pursue a rural vitalization 
strategy, and implement  the coordinated  regional development strategy. China will actively expand 
consumption, promote  effective investment, and strive to ensure and further improve people's  
wellbeing.  
Report by the Secretariat - WT/TPR/S/375  
4.2.2  Energy , 4.2.2.1 Overview including environmen tal policy , page 134, paragraph  4.62 
In December  2017,  the NDRC  issued  the Carbon  Emission  Trading  Market  Construction  Scheme  
(Power  Generation  Industry).  This emission  trading  scheme  defines  the guiding  principles  for 
the construction  of a unified  carbon  market  in China  in order  to effectively  control  and gradually  
reduce carbon/greenhouse gas emissions in China, and to promote green and low -carbon 
development.  The guiding principles foresee that the Scheme shall be market -oriented, government -
led, and bas ed on  a step -by-step approach, unified standards, extensive participation, equality and 
transparency.  It mandates the launch of a national carbon emission trading system for the power 
generation  industry, and the construction of a carbon market in three  steps.  
Page 135, paragraph 4.63  
On 29 December 2016, the NDRC and the National Energy Administration issued a strategy  
document with  a wider  time horizon  and even vaster  objectives:  The Energy  Production  and 
Consumption Revolution Strategy (2016 -2030). The  document plans the advent of an "energy 
revolution" in  China and put forward the strategic goal of building a green, low -carbon and highly 
efficient modern  energy system . 
Question 38  
Following the 'green ' agenda and aiming at achieving sustainable  development  goals,  could  you 
please  mention  whether  any regulation  will be applied  with respect  to officially supported export  
credits?   WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please see the official website for the detailed information.  
Other questions  
Question 39  
Could the People 's Republic of China please explain where Russian exporters  could  find detailed 
information on the documents and procedures required for exporting products to  China?  
Reply  
You can search for relevant information on the website of China Customs ( www.customs.gov.c ). 
Question  40 
Could  the People 's Republic  of China  please  clarify  how it applies  the concept  of regional 
conditions, including pest - or disease -free areas and areas of low pest or disease  prevalence?  
Reply  
Could the Russia n Federation  be more specific about the questions of pest- or disease -free areas 
and areas of low pest or disease  prevalence? In the case of any technical issues, please contact 
responsible authorities.  
Question  41 
Which  measures  have been taken  or expected  to be taken  in order  to avoid  undue delays of control, 
inspection and approval procedures in general and in particular for meat  and meat  products, dairy 
products and  cereals?  
Reply  
There are provisions about the time limit on import inspection of all kinds of products in (Zhi Jian 
Tong [2017] No. 437), which has been made public. In the case of undue delay of customs clearance, 
Russia is welcome to communicate with us at any time.  
Question  42 
Which  laws and regulations  are published  in English?  Which  laws, regulations  and other  measures  
pertaining  to or affecting  trade  in goods,  services,  TRIPS  are not published  on accessible 
websites? Which are not published in  English?   
Reply  
1. Management status. According to the Regulations on the  Procedure of Making the 
Administrative Laws and Regulations, and the Circular of the General Office of the State Council on 
Making Efforts to Accomplish the English Translation of Administrative Laws and Regulations and the 
Examination Thereof, the releva nt departments of the State Council are responsible for organizing 
the translation of administrative laws and regulations, and the examination of their official English 
versions. According to the Circular of the General Office of the State Council on Makin g Efforts to 
Accomplish the English Translation of Trade -related Departmental Regulations promulgated in 
March  2015, the departments concerned of the State Council that have formulated the regulations 
are responsible for the translation of the trade -relate d departmental regulations, and the release of 
the English version thereof.  
According to relevant regulations, the English translation of laws and the examination thereof are 
organized by the Legislative Affairs Commission of the National People 's Congress  Standing WT/TPR/M/3 75/Add.1  
 
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  Committee. Local departments are responsible for the translation of local government laws and 
regulations, and the release of their English versions.  
2. Translation of administrative laws and regulations and examination thereof. According to the 
Circular of the General Office of the State Council on Making Efforts to Accomplish the English 
Translation of Administrative Laws and Regulations and the Examination Thereof (hereinafter 
referred to as the "Circular"), all administrative laws and regulati ons shall be officially translated into 
English, not only the administrative laws and regulations  pertaining  to or affecting  trade  in goods,  
services,  trade -related intellectual property rights or foreign exchange controls that are required in 
the Report of the Working Party on the Accession of China. The Circular also requires that the 
translation of administrative laws and regulations and examination thereof shall be completed within 
90 days from the date of publication of the administrative laws and reg ulations. The requirements 
of the Circular, regardless of the scope of translation of administrative laws and regulations, or the 
time limit for translation, are stricter than the commitment of no later than 90 days after 
implementation or enforcement made  by China when it joined the WTO.  
Question  43 
Could  you please,  clarify  what kind of incentives  and projects  aimed  to support innovations are 
stipulated in  China?   
Reply  
Please see the 2015 -2016 local and central subsidy notifications to be submitted by China.  
Question  44 
According  to China's  laws and regulations,  including  at the provincial  level,  what is average time 
for release of goods in the People 's Republic of  China?   
Reply  
In 2017, the average time spent on customs clearance nationwide is 15.87 hours, down by 36.85% 
year on year; and the average time spent on outbound customs clearance nationwide is 1.11 hours, 
down by 38.24% year on year.  
Question  45 
Could  China,  please,  provide  details  on Made  in China -2025 programme?  Which measures have 
been undertaken to implement  it?  
Reply  
In essence, Made in China 2025 is a strategic plan, aiming to guide and promote industrial upgrading. 
It adheres to the principle of fairness and justice in implementation, and treats domestic and foreign -
invested enterprises equally, without restrictive, discriminatory and exclusive intentions. Made in 
China 2025 is designed to guide China's  manufacturing industry to achieve better quality, greater 
efficiency, and accelerated transformation and upgrading, and its targets are predictive, directive 
and not m andatory.  
Question 46  
Could China, please, provide information on programmers and incentives  envisaged to promote  
e-commerce?  
China is currently working on the formulation of the E -Commerce Law of the People 's Republic of 
China, to foster a favourable lega l environment for the development of E -commerce.  WT/TPR/M/3 75/Add.1  
 
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  Question 47  
Could China, please, provide information on licensing in services sectors? Where  can licensing 
requirements be  found?  
Reply  
When foreign law firms try to apply for setting up representative offices in China or sending delegates 
to China, the following qualifications should be satisfied: the foreign law firm concerned shall engage 
in legal practice in its home country and has not been subject to any penalty due to the violation of 
professional  ethics of lawyers or practice discipline; the delegates of the representative office 
concerned shall be members of their home country 's national lawyer association as practicing lawyers 
with practice qualifications and have engaged in practice in other co untries or regions beyond China 
for no less than two years with no record of criminal penalty or any other punishment for the violation 
of professional ethics of lawyers or practice discipline; the chief delegate should have engaged in the 
profession for n o less than three  years and he/she should be a partner of the foreign law firm 
concerned or occupy an equivalent position; the establishment of a representative office by the 
foreign law firm concerned should be made imperative by actual needs.  
When foreig n law firms apply for setting up representative offices in China, they should submit 
documents to the judicial administration authorities of local people 's governments of the province, 
autonomous region or municipality directly under the central government , where they intend to set 
up their representative offices. The judicial administration authorities of local people 's governments 
of the province, autonomous region or municipality directly under the central government concerned 
shall conclude the examinat ion in three days since the day they receive these documents and report 
the examination results and these documents to the judicial administration department of the State 
Council for examination. The judicial administration department of the State Council shall make a 
decision in six months and issue the practice licen ce to the representative office and practice 
certificates to delegates.  
Please refer to the Regulations on the Administration of Representative Offices of Foreign Law Firms 
and Provisions of t he Ministry of Justice for the Regulations on the Administration of Representative 
Offices of Foreign Law Firms for the above rules. For details of the application and examination 
procedure, you may log in the website of the Ministry of Justice of the Peop le's Republic of China 
(www.moj.gov.cn ) and find relevant information under the section Administrative Service/Online 
Service.  
Question  48 
What are the licensing  requirements  for enterprises  carrying  out activities  in travel services sector?  
Reply  
Permission requirements for enterprises in the sector of tourism services  
No. Programme  to be examined  Legal basis  
1. Permission for setting up travel 
agencies  Article 28 of Tourism Law of the People 's Republic of China: A travel 
agency established to attract, organize, and receive tourists, and 
provide tourism services to them shall meet the following conditions, 
obtain the permit from the administrative department of tourism and 
handle industrial and commercial registratio n in accordance with law: 
(1) it should have a fixed business premise; (2) it should have 
necessary business facilities; (3) it should have registered capital as 
required; (4) it should have necessary business management 
personnel and tour guides and; (5) it should meet other conditions as 
prescribed by laws and administrative regulations.  
  
Article 6 of Travel Agency Ordinance: To apply for establishing a travel 
agency and operating domestic tourism business and inbound tourism 
business, an applicant shall  obtain the qualifications as a business 
entity with a regis tered capital of no less than R MB 300,000.  
 
Article 7 of Travel agency Ordinance: To apply for establishing a travel 
agency and operating domestic tourism business and inbound tourism 
business, an  applicant shall file an application with the tourism 
administrative department of the province, autonomous region or WT/TPR/M/3 75/Add.1  
 
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  No. Programme  to be examined  Legal basis  
municipality directly under the Central Government at the place where 
it is located, or with the commissioned tourism administrative 
depar tment at the level of a districted city, and shall submit the 
relevant certification documents satisfying the provisions of Article 6 of 
this Regulation.  
2. Examination of travel agencies 
engagement in outbound tourism 
services or Hong Kong and Macao 
tourism services  Article 29 of Tourism Law of the People 's Republic of China: A travel 
agency may engage in the following businesses: (1) domestic tourism; 
(2) outbound tourism; (3) border tourism; (4) inbound tourism and; 
(5) other tourism businesses. To engage in the businesses of items 
(2) and (3) of the preceding paragraph, a travel agency shall obtain 
corresponding business permit. The specific conditions shall be 
provided for by the State Council.  
 
Article 8 of Travel Agency Ordinance: A travel agency , which has 
obtained the business permit for two years or more, and is not subject 
to any punishment more serious than fine by the administrative body 
due to the infringement upon the legitimate rights and interests of 
tourists, may apply for operating the  outbound tourism business.  
 
Article 9 of Travel Agency Ordinance: To apply for operating outbound 
tourism business, an applicant shall file an application with the tourism 
administrative department of the State Council or with the 
commissioned tourism adm inistrative department of the province, 
autonomous region or municipality directly under the Central 
Government. The tourism administrative department accepting the 
application shall make a decision on approval or disapproval within 
20 workdays since the d ay the acceptance of the application is made.  
3. Permit for foreign investment in 
the businesses of travel agencies  Article 22 of Travel Agency Ordinance: To establish a foreign -invested 
travel agency, the investor shall file an application with the tourism 
administrative department of the State Council, and submit the 
relevant certification documents meeting the conditions as prescribed 
in Article 6 of this Regulation. The tourism administrative department 
of the State Council shall complete the exam ination within 
30 workdays since the day the acceptance of the application is made. 
If the establishment is approved, it shall issue the examination opinion 
for business permit for foreign -invested travel agencies; if the 
establishment is disapproved, it s hall notify the applicant in written 
form and give reasons.  
 
The establishment of foreign -invested travel agencies shall comply 
with relevant laws and regulations on foreign investment.  
4. Examination of the qualifications of 
border tourism of travel agencies  Article 29 of Tourism Law of the People 's Republic of China: A travel 
agency may engage in the following businesses: (1) domestic tourism; 
(2) outbound tourism; (3) border tourism; (4) inbound tourism and; 
(5) other tourism businesses. To engage i n the businesses of items 
(2) and (3) of the preceding paragraph, a travel agency shall obtain 
corresponding business permit. The specific conditions shall be 
provided for by the State Council.  
Item 40 of Decisions of the State Council on Cancelling and Ad justing a 
Batch of Items Subject to Administrative Approval (Guo Fa [2014] 
No.27): The approval of the qualifications of engaging in border 
tourism by travel agencies is delegated to the administrative tourism 
departments of the provincial people 's governments of border tourism 
regions.  
 
  WT/TPR/M/3 75/Add.1  
 
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  CHILE – BATCH 1  
Report by the Secretaria t - WT/TPR/S/375  
4. TRADE POLICIES BY SECTOR  
4.4 Services , 4.4.1 Telecommunications , 4.4.1.1  Statistical overview  
Letter b, below table 4.24  
It indicates there is no precise definition yet of electronic commerce as the E -commerce Law of China 
is under development.  
Question 1  
Chile would be thankful if China could further explain the actual concept of Electronic commerce it 
uses. Chile would al so be thankful if China could provide the definition that is being proposed so far 
in the E -commerce Law, and if there is a date scheduled for this law to enter into force.  
Reply  
Suggestions for reply: In June 2018, the  third session of the 13th NPC Standing Committee reviewed 
the draft of E -Commerce Law. From 29 June to 28 July 2018, the third draft of E -Commerce Law 
was publicized on the official site of the National People's Congress for public opinion. According to 
the third draft of E -Commerc e Law, the term e -commerce in E -Commerce Law refers to business 
activities of commodity or business transactions through information networks such as the Internet. 
In the next step, the NPC Constitution and Law Committee will, based on the review of the NP C 
Standing Committee, study the draft seriously with relevant parties, continue to listen to various 
opinions, strengthen communication with relevant departments, extensively broaden consensus, 
further amend the draft and submit it to the Standing Committe e for consideration and approval. 
The E -commerce Law is drafted under the leadership of the NPC Financial and Economic Committee. 
As for the final definition of e -comme rce, the progress of the E -Commerce Law and the expected 
effective time are subject to r eplies of relevant departments.  
Paragraph 4.129  
Indicates that China has pursued a pilot scheme of mobile communication resale business, in which 
42 enterprises have obtained to the present date a pilot approval.  
Question  2 
Chile would be thankful if Chin a would further explain the procedure and requirements for an 
enterprise to be part of this pilot scheme.  
Reply  
Please look up the procedure and requirements of the  scheme of mobile communication resale 
business  in the two released documents. The first is China's  Guidelines on Mobile Communications 
Resale Business issued in May 2013. The second is the Notice  on Official Commercialization OF Mobile 
Communication Resale  Business (Ministry of Industry and Information Technology communication 
(2018) No.  70) iss ued on 28 April 2018.  
Paragraph 4.142  
Indicates that China's  regulation foresees detailed and heavy fines in case of breach of provisions 
regarding cybersecurity .  
Question  3 
Chile would be thankful if China would explain the procedures to apply these fine s. WT/TPR/M/3 75/Add.1  
 
- 492 - 
 
  Reply  
As for law enforcement of Internet content supervision, in accordance with provisions of Article 47, 
68, 50 or 69 of the Cybersecurity Law of People 's Republic of China, network operators who fail to 
perform the obligation of network management when their users release illegal information or who 
refuse to be subject to the supervision of relevant departments, will face a fine of 50,000 yuan to 
500,000 yuan for their lawbreaking behaviour. Executives and relevant staff who are directly 
responsible  will be imposed a fine of 10,000 yuan to 100,000 yuan. The procedure for fines will be 
conducted according to the Administrative Penalty Law of the People's Republic of China and 
Provisions on Administrative Law Enforcement Procedures for Internet Content  Management.  
Paragraph 4.142  
Indicates that China's  authorities may take temporary measures regarding network communications 
in certain regions, such as restricting them .  
Question  4 
Chile would be thankful if China could elaborate in detail what other mea sures may be applied, and 
for how long these temporary measures may last, and if they may be renewed or not.  
Reply  
As for temporary measures such as restrictions on network communications, according to Article 58 
of the Cybersecurity Law, in order to maint ain national security and public order, temporary 
restrictions on network communications may be imposed in specific areas in case of major social 
security incidents. The type, region and time limit of the measures will be determined by the State 
Council in  accordance with the nature and degree of potential hazards that may result from the 
major social security incidents.  
4.4.3 Legal services , paragraph 4.174  
Indicates that China has not concluded mutual recognition agreements on qualifications in legal 
services nor has it autonomously recognized legal qualification obtained in other countries or regions.  
Question  5 
Chile would be thankful if China can explain if there is any current negotiation were these issues are 
being negotiated. If there are in nego tiation, Chile wants to know with which countries are currently 
negotiating.  
Reply  
There is  not any current negotiation about mutual recognition on qualifications in legal services.  
4.4.4 Accounting, auditing and bookkeeping services , paragraph 4.198  
It says that the Chinese Institute of Certified Public Accountants and the provincial institute of 
Certified Public Accountants are responsible for self -discipline.  
Question  6 
Chile would be thankful if China could give more information about the possibility for foreigners to 
be part of these institutes. If it is possible, Chile would like to know the requirements to be part of 
them.  
Reply  
Foreigners who have passed all the subjects of the Chinese CPA examination can apply to join the 
Chinese Institute of Certified Public Accountants with the same qualification requirements as Chinese WT/TPR/M/3 75/Add.1  
 
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  citizens. Article 3 of the Regulations on the Registratio n of Non -practicing Members of the Chinese 
Institute of Certified Public Accountants stipulates that those who meet one of the following 
requirements may apply to become non -practicing members: (1) having held a qualification 
certificate of National Unifor m Certified Public Accountant Examination for no more than five years; 
(2) a practicing member has stopped practicing or the registration has been revoked or cancelled 
for no more than five years; (3) having passed relevant tests after having held a qualif ication 
certificate of National Uniform Certified Public Accountant Examination for more than five years or a 
practicing member has stopped practicing or the registration has been revoked or cancelled for more 
than five years. Article 19 stipulates that fo reigners or people from : Hong Kong, China; Macao , China;  
and Chinese Taipei  who meet the requirements may directly apply to the Chinese Institute of 
Certified Public Accountants and register in accordance with the provisions.  
4.4.6 Engineering and integrat ed engineering services , paragraph 4.211  
It says that the requirement that foreign services suppliers shall be registered in their country has 
been waived in the context of the Shanghai Pilot Free Trade Zone.  
Question  7 
Chile would be thankful if China cou ld further explain if this waiver is something that will be 
implemented in all free trade zones or it is specifically for the Shanghai one.  
Reply  
Pilots of deepening service trade innovation will be set up in provinces and cities (areas) such as 
Beijing, Tianjin, Shanghai, Hainan, Shenzhen, Harbin, Nanjing, Hangzhou, Wuhan, Guangzhou, 
Chengdu, Suzhou, Weihai, Xiong'an New Area in Hebei, Liangjiang N ew Area in Chongqing, Gui'an 
New Area in Guizhou and Xixian New Area in Shaanxi. The deepening pilot programme  will last for 
two years, from 1 July 2018 to 30 June 2020, including cancelling requirements of engineering 
design achievements for foreign -invested engineering (excluding engineering survey) enterprises in 
their first application.  
4.4.7 Pipeline services  
Paragraph 4.220 indicates that China's  2017 Investment Catalogue classifies pipelines as an 
"encouraged industry ". 
Question  8 
Chile would be than kful if China could further explain what other industries are "encouraged " and 
what is the criteria to choose them.  
Reply  
Details of encouraged industries can be found in Encouraged Industry Catalogue of China's  2017 
Foreign Investment Catalogue, a total of 348 categories. Encourage industries are projects that 
accord with the adjustment and optimization of industrial structures. China continues to encourage 
foreign investment in advanced manufacturing, high -tech, energy -saving & environmental 
protection, and modern service industries.  
4.2.2 Energy, paragraph 4.62  
"In December 2017, the NDRC issued the Carbon Emission Trading Market Construction Scheme 
(Power Generation Industry). This emission trading scheme defi nes the guiding principles for the 
construction of a unified carbon market in China in order to effectively control and gradually reduce 
carbon/greenhouse gas emissions in China, and to promote green and low -carbon development. The 
guiding principles fores ee that the Scheme shall be market -oriented, government -led, and based on 
a step -by-step approach, unified standards, extensive participation, equality and transparency. It WT/TPR/M/3 75/Add.1  
 
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  mandates the launch of a national carbon emission trading system for the power gene ration industry, 
and the construction of a carbon market in three steps. " 
Question 9  
¿Podría la delegaci ón de China, entregar mayores antecedentes acerca de su esquema de emisiones 
transables ?, ¿Cuáles son los pasos previstos para su implementaci ón y cu ándo estar á 
completamente en vigor dicho sistema?  
Reply  
The Carbon Emission Trading Market Construction Scheme, taking the power generation industry as 
a breakthrough, launches the pioneering national carbon emission trading system, cultivates market 
entities, improves market supervision, expands market coverage gradually, enriches trading 
varieties and modes and gradually establishes a carbon market with clear attribution, strict 
protection, smooth flow, effective supervision, transparency, and internationa l influence. The 
appropriately tight quota and reasonable prices effectively stimulate the potential of reducing 
emission of enterprises, promote transformation and upgrading of enterprises, and achieve the goal 
of controlling greenhouse gas emission. Sinc e the distrib ution of the scheme, th e carbon market 
construction has been steadily advanced in three phases.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.6 Anti -dumping, countervailing, and safeguard measures , 3.1.6.1 Anti -dumping 
measures  
Paragraph 3.37  
With 91 anti -dumping measures in force as at end -June 2017, the number of measures has remained 
at a relatively constant level since the previous TPR. In terms of sectors affected by AD measures, 
chemicals products accounted for 44% of the total number of measures in force as of 30 June 2017. 
The average length of the application of measures increased slightly, to 6.7 years, from 6.5 years 
at the time of the previous Review. In this respect, the authorities indicate that anti -dumping 
measures are normally t erminated after a maximum of ten years.  
Question 10  
Paragraph 3.37 states that "the average length of the application of [AD] measures increased 
slightly ", indicating later in the same paragraph that these measures "are normally terminated after 
a maximum  of ten years. " Article 11 of the ADA states that "measures shall remain in force as long 
as and to the extent necessary to counteract dumping which is causing injury ", providing a maximum 
duration of five years, "unless the authorities determine that the expiry of the duty would be likely 
to lead to continuation or recurrence of dumping and injury. " Given the facts above, does China 
have the intention of revising its sunset reviews procedures in order to lower the duration of its 
measures?  
Reply  
At present, China does not intend to amend the sunset reviews; China always believes that trade 
remedy measures should be used with caution to avoid prolonged implementation period of trade 
measures.  
Paragraph 3.41  
MOFCOM provides interested parties access to  information. In accordance with the Provisional Rules 
governing Access to Non -Confidential Information, non -confidential information submitted is 
accessible to all interested parties, who are permitted to search, read, transcribe and copy the 
material. Ac cording to the Provisional Rules governing the Disclosure of Information in 
AD Investigations, MOFCOM notifies relevant parties in an AD investigation of the essential data, 
information, evidence and reasons adopted for establishment of the existence of du mping and the WT/TPR/M/3 75/Add.1  
 
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  calculation of the dumping margin, within 20 days of the date on which the preliminary determination 
is announced.  
Question 11  
Paragraph 3.41 states that "MOFCOM notifies relevant parties in an AD investigation of the essential 
data, informa tion, evidence and reasons adopted for establishment of the existence of dumping and 
the calculation of the dumping margin, within 20 days of the date on which the preliminary 
determination is announced. " Could China please clarify which would be the relev ant parties to be 
notified (are they the same as interested parties in the context of the investigation or a subset of 
the precedent)? Also, if the preliminary determination concludes that provisional measures should 
be imposed, would the relevant parties be notified of the facts mentioned above before the 
provisional measures are imposed?  
Reply  
Interested parties  are mainly the identified parties involved in dumping , such as exporters, producers 
or governments of the countries or regions involved. Chinese  investigation agencies will disclose the 
above information to relevant i nterested parties  after the announcement of the preliminary 
determination.  
Paragraph 3.44  
Within 45 days of announcing the preliminary determination, price undertakings can be offered  by 
the exporter or suggested to the exporter by MOFCOM. According to the Provisional Rules Governing 
Price Undertakings31, to accept an undertaking, MOFCOM must take into account the injury 
determined, the possibility of circumvention, and public interest . If the price undertaking is accepted, 
MOFCOM may suspend or terminate the AD investigation, which may be resumed if the exporter 
violates the price undertaking, or if MOFCOM considers it necessary for other reasons.32 Exporters 
and producers offering a p rice undertaking may withdraw at any time, but must announce their 
withdrawal to MOFCOM 30 days in advance.  
Question 12  
Could China please provide further details regarding the price undertakings procedure described on 
paragraph 3.44? Chile would appreciate if China could provide examples on public interest issues 
that would be taken into account in order to accept or not a price undertaking. If the injury 
determined and the possibility of circumvention are too high, then price undertaking would no t be a 
suitable option?  
Reply  
The price undertakings procedure is as follows: the responding exporter or producer can submit an 
application for price undertaking to the investigation authority, which must be within 45 days after 
the preliminary determinati on. Before making certain preliminary determination on dumping and 
damage, the investigation authority can't provide for the exporter or producer any advice on price 
undertaking or accept any of their price undertaking. After the investigation, if the inve stigation 
authority considers the price undertaking as acceptable, it can decide to suspend or terminate the 
anti-dumping investigation against the exporter or the producer that has submitted the price 
undertaking and announce the decision. If the investig ation authority deems the price undertaking 
as inappropriate, it should inform the exporter or the producer of the reason for the rejection and 
give them opportunities to express their opinions. The decision and reasons for the refusal will be 
explained in  the final determination.  
China does not have any cases of accepting or rejecting any price undertaking for public interest 
currently.  
In specific cases, if the possibility of evasion is high, it may become a reason for which the 
investigation authority re fuses to accept the price undertaking.  WT/TPR/M/3 75/Add.1  
 
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  Paragraph 3.47  
AD duties may not exceed the margin of dumping established in the determination. China does not 
have provisions on the lesser duty rule. Although China's AD regulations do not preclude the 
imposition of  a duty lower than the margin of dumping, the investigating authority does not examine 
if a duty lower than the margin of dumping is sufficient to eliminate injury.  
Paragraph 3.42  
MOFCOM must make a preliminary determination of dumping, injury, and causation. If the 
preliminary determination is affirmative, provisional AD measures may be applied, which may take 
the form of provisional AD duties, or a request to provide deposits, bon ds, or other forms of 
guarantee. The decision to apply provisional AD duties is made by the State Council Tariff 
Commission (SCTC) on recommendation of MOFCOM, but for other types of measures (deposits, 
bonds, or other forms of guarantee), the decision is made directly by MOFCOM. Provisional measures 
may not be applied earlier than 60 days from the date of publication of the investigation initiation 
decision and may not exceed four months, although under "special circumstances" they may be 
extended to nine months. According to the authorities, "special circumstances" refer to cases where 
the investigating authorities are examining whether a duty lower than the margin of dumping would 
be sufficient to remove the injury to the domestic industry.  
Question 13  
Regarding the lesser duty analysis, we have a confusion regarding the practice that the Chinese 
authority follows. Paragraph 3.47 states that "the investigating authority does not examine if a duty 
lower than the margin of dumping is sufficient to eliminate  injury. " But paragraph 3.42, when 
describing the timeframe of provisional measures, explains that there is a possibility to extend the 
period to nine months if there are "special circumstances ", which in turn "refer to cases where the 
investigating author ities are examining whether a duty lower than the margin of dumping would be 
sufficient to remove the injury to the domestic industry. " Could China please clarify if the authority 
does or does not consider a lower duty?  
Reply  
China has no relevant legislat ion on lower duty principle.  
Paragraph 3.50  
Article 56 of the AD Regulations allows for retaliatory measures when a trading partner 
''discriminatorily'' imposes AD measures on exports from China. The authorities indicate that China 
has neither applied Article 56 during the period under review, nor p lanned to revise the provisions.  
Question 14  
Could China please provide further information regarding its "retaliatory measures " described on 
paragraph 3.50?  
Reply  
Article 56 has not been applied in China.  
Paragraph 3.52  
Final AD measures can remain in place for a maximum of five years, but may be extended thereafter 
following review. China's AD Regulations contain provisions regarding "expiry" (sunset) and "interim" 
reviews. With respect to sunset reviews, MOFCOM publishe s a notice six months before the measure 
is scheduled to expire, and initiates a review if the domestic industry provides sufficient evidence 
that expiry would likely lead to a continuation or recurrence of dumping and injury. If there is no 
petition to co nduct a sunset review and MOFCOM decides not to initiate a sunset review on its own, 
the AD measure is automatically terminated and a public notice is issued. MOFCOM may also initiate 
an interim review, ex officio or upon request of an interested party, pr ovided that a reasonable WT/TPR/M/3 75/Add.1  
 
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  period of time has elapsed. Both reviews must be conducted within twelve months of the initiation 
date. The rules governing the interim review are provided in the Provisional Rules of the Ministry of 
Foreign Trade and Economic Coop eration on Interim Review of Dumping and Dumping Margin; 
however, there are no specific rules governing sunset reviews.  
Question 15  
Could China please explain the factors that MOFCOM would take into account when deciding to 
initiate a sunset review on its  own, as described in paragraph 3.52?  
Reply  
The Ministry of Commerce has no relevant practice, and the investigation authority will consider 
relevant factors, such as whether the termination of the anti -dumping duty will lead to continuation 
or recurrence of dumping and damage.  
3.2 Measures Directly Affecting Exports , 3.2.4 Export support and promotion  
Paragraph 3.52  
The authorities indicated that China did not maintain or introduce any export subsidies on agricultural 
products during the years 2013 and 2014. No information has been notified to the WTO for the 
years  2015 and 2016.  
Question 16  
Could China please indicate when does it plan to send their notification regarding export subsidies 
on agricultural (paragraph 3.82)?  
Reply  
China will submit releva nt notifications as soon as possible.  
3.3.4 Competition policy and price controls , 3.3.4.1 Competition policy , 
3.3.4.1.1  Legislative and institutional framework , paragraph 3.145  
The AML stipulates that state -owned enterprises (SOEs) that have a controlling stake in industries 
that affect the lifeline of the national economy and are of importance to national security, as well as 
those SOEs that have been granted exclusive productio n and sales rights legally, will have their 
legitimate business interests protected by the State. In accordance with the AML, the State 
supervises and regulates these firms' operations and the prices of the goods and services they 
supply. In this respect, China issued laws and regulations that allow production in certain sectors to 
be concentrated into monopolies, near -monopolies, or authorized oligopolies, such as the Postal Law 
(1986), the Railroad Law (1991), the Civil Aviation Law (1995), the Electricit y Law (1996), the 
Regulations on Telecommunication (2000), and the Commercial Bank Law, as amended.  
3.3.5 State trading, state -owned enterprises, and privatization , paragraph 3.183  
Of the ten largest SOEs, five are under SASAC's supervision (Table 3.20). The State remains a 
majority shareholder in all but one of the 100 largest publicly listed Chinese companies.  
3.3.4 Competition policy and price controls , 3.3.4.2 Price controls  
Question 17  
Chile would greatly appreciate if China could explain how the competition authorities take into 
account price controls, when analyzing markets with alleged anti -competitive behavior occurring.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please refer to the Anti -price-fixing Provision launched in 2010.  
4.3.2.4 Iron and Steel , paragraph 4.112  
The main mea sures adopted by China have been to: (1) set clear goals for reducing excess capacity, 
i.e. to reduce crude steel capacity by 100 -150 million tonnes between 2016 and 2020; (2) adopt 
market -based and legal means to reduce capacity through facilitating the e xit of capacities that do 
not meet the legal and administrative requirements on environmental protection, energy 
consumption, quality, safety and technology standards, and encouraging the exit of inefficient 
capacities based on market principles; and (3) t ake a series of policy measures, such as: establishing 
an inter -ministerial joint mechanism comprising of 25 ministries and agencies, eliminating obsolete 
capacity and projects violating laws and regulations, allocating RMB 100 billion to a special fund to  
relocate workers affected by capacity reduction in the steel (and coal) sectors, enhancing supervision 
and inspection to prevent reopening of shut -down capacity, and prohibiting new capacity 
investments violating laws and regulations.  
Question 18 
Paragraph 4.112 explains the main measures that China has adopted to tackle the issue of excess 
capacity on the iron and steel sectors. On point 3, could China please explain further the 
two following policy measures: "eliminating obsolete capacity and pro jects violating laws and 
regulations " and "prohibiting new capacity investments violating laws and regulations? " 
Reply  
The Chinese government will continue to strictly control new capacity of overcapacity industries, 
strengthen supervision and inspection, consolidate results of capacity reduction, and encourage 
enterprises to accelerate the exit of the less completive capacity through merger, acquisition or other 
ways of marketization and rule of law, so as to promote stable operation of the industry.  
 
 
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  CHILE – BATCH 2  
Report by the Secretariat - WT/TPR/S/375  
3. TRADE POLICIES AND PRACTICES BY MEASURES  
3.3.2 Standards and other technical requirements, 3.3.2.1 Overview  
Paragraph 3.117  
AQSIQ is in charge of national quality, metrology, entry -exit inspection, animal and plant quarantine, 
certification, accreditation, standardization, and administrative law enforcement. AQSIQ is also the 
body in charge of ensuring that both imports and exports comply with technical regulations and 
certification requi rements.  (76) AQSIQ administers the Certification and Accreditation Administration 
of China (CNCA). It is also China's TBT Enquiry Point and responsible for submitting TBT notifications.  
Question  1 
Considerando la modernizaci ón institucional llevada a cab o por China, Chile agradecer ía informar si 
AQSIQ mantiene sus funciones o estas han sido derivadas a otras instituciones. Asimismo, informar 
el organigrama de estas nuevas instituciones.  
Reply  
Currently, the institutional restructuring is not yet put in p lace. The Provisions of the State General 
Administration of Quality Supervision, Inspection and Quarantine on the Main Responsibilities, 
Internal Organizations and Staff Size has not yet been formally printed and distributed, so relevant 
functions cannot b e clearly defined. China will report relevant situations to WTO Secretariat and 
relevant countries as per the procedures after the institutional restructuring is completed and 
responsibilities are finally determined.  
3.3.3 Sanitary and phytosanitary requir ements  
Paragraph 3.140  
Foreign enterprises that manufacture, import, process and store food must be registered with the 
CNCA before their food products are imported into China.88 In addition, the 2015 Food Safety Law 
stipulates special regulations for certain food or food -related products (e.g. supplements89, "formula 
food for special medicinal purposes"90; and infant and follow -up formula and other special foods), 
which are subje ct to supervision and administration. Enterprises producing these products must fulfil 
special registration or record -filing formalities, establish a production quality management system, 
and submit a "self -inspection" report to the food and drug administr ation of the local government. 
Pursuant to the Food Safety Law, food importers also must establish a food and food additives import 
and sales record system to record, inter alia : the name of the product, its specifications, quantity, 
date of production, an d production and import batch number; the shelf life of the product and food 
additives; and the name, address and contact details of the exporter. Registration and record -filing 
formalities vary according to the product.  
Question  2 
Chile agradecer ía a China informar si el CNCA es la instituci ón que lleva a cabo las visitas de 
habilitaci ón de establecimientos. Asimismo, informar su organigrama.  
Reply  
The Certification and Accreditation Administration of China (CNCA) is the competent authority 
authorized  by the State Council to perform its administrative functions, uniformly manage, supervise 
and comprehensively coordinate with the work of national accreditation and accreditation.  WT/TPR/M/3 75/Add.1  
 
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  It governs Registration Management Department, Laboratory and Test Supervis ion Department, 
Policy and Law Affairs Department, International Cooperation Department Accreditation Supervision 
Department, Financial Management Department, Certification Supervision Department, and Science 
and Technology and Standards Management Departm ent. 
3.3.3 Sanitary and phytosanitary requirements, paragraph 3.138  
Four institutions are in charge of the SPS system in China: The National Health and  Family Planning 
Commission, the China Food and Drug Administration (CFDA), the Ministry of Agriculture (MOA), 
and AQSIQ. The respective responsibilities have remained largely unchanged during the period under 
review87; except for some internal organizatio nal changes in the China Food and Drug Administration 
(CFDA) in July 2016.  
Question  3 
Chile agradecer ía a China informar si la CFDA mantiene sus funciones o estas han sido derivadas a 
otras instituciones. Asimismo, informar el organigrama de estas nuevas i nstituciones.  
Reply  
Currently, the institutional restructuring is not yet put in place. The Provisions of the State General 
Administration of Quality Supervision, Inspection and Quarantine on the Main Responsibilities, 
Internal Organizations and Staff Siz e has not yet been formally printed and distributed, so relevant 
functions cannot be clearly defined. China will report relevant situations to WTO Secretariat and 
relevant countries as per the procedures after the institutional restructuring is completed a nd 
responsibilities are finally determined.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  INDIA – BATCH  1 
Report by the Secretariat - WT/TPR/S/375  
SUMMARY  
Page 9, paragraph 3  
Question  
1. The People 's Bank of China (PBOC) aims at promoting better capital allocation and guide 
market access. To achieve these objectives, PBOC involves a closer management of liquidity through 
repos and lending facilities. Can this proposal be prove n to be effective in both the long run as well 
as the short run?  
Reply  
PBOC chooses a monetary policy regulation tool and method according to the international and 
domestic economic and financial situations and monetary policy goal in a given period. PBOC used 
to mop up liquidity mainly through raising the reserve ratio, repurchasing in open market, and 
issuing central ba nk bills due to a large amount of foreign exchange inflows and excess liquidity of 
the bank system. However, China's  balance of international payments has gradually tended to 
equilibrate and foreign exchanges influence on the liquidity has weakened in rece nt years. Therefore, 
PBOC changes to cut the peaks to fill in the valleys and suppress the short -term funds fluctuation 
brought by seasonal factors like financial revenue and expenditure through tools like open market 
repurchase operations, and make up for  the medium and long -term financial deficit through tools 
like MLF and legal reserve. The use of a collocation of tools with different periods has increased the 
refinement degree of liquidity management, and kept the overall liquidity of the bank system at  a 
rational level in line with the monetary policy orientation, on the one hand; it is also conductive to 
strengthening PBOCs guidance and regulation of the money market rates, promoting the 
establishment and improvement of the markets benchmark interest r ate system, and facilitating 
China's  monetary policy regulatory frame to transform from basing on volume to basing on price, 
on the other hand. From the perspective of the practice in recent years, PBOCs monetary policy 
regulation has achieved good effects .  
In the next stage, PBOC will continue to implement a sound and neutral monetary policy, strengthen 
anticipatory adjustments and fine -tuning by comprehensively utilizing price and volume tools and 
macro -prudential policy, keep the bank system liquidity r ational and sufficient, and guide financial 
institutions to increase credit support in priority areas and weak links in the national economy. It 
will, according to changes of the economic and financial situation, timely adjust the mix of the 
monetary polic y tools, guide the rational growth of aggregate amount of monetary credit and social 
financing, and create a suitable monetary and financial environment for the high -quality 
development and supply -side structural reform.  
Page 11, paragraph 12  
Question  
2. China has provided the indicative dates for the implementation of the category B 
commitments, which are currently mentioned as February 2020. Are the indicative and the definitive 
dates same for the implementation of the category B commitments?  
Reply  
 
Yes, the same.  
 
Pages 12 -13, paragraph 28  
 
3. It is stated that China's  overall support to Agriculture Sector has increased over the period of 
review. Can China tell more about the specific types of support it is providing to the Agriculture and 
whether these are WTO compliant or not?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
 
China attaches great importance to agriculture. With the aim to achieve food security and livelihood 
security for hundreds of millions of small -scale farmers, China provides various types of supports in 
accordance with the WTO rules and China's  commitment during accession. The major types of 
supports include: agriculture support and preservation subsidy, an income support provided through 
direct payment to farmers; subsidy for purchasing agricultural machinery and tools, a non - 
product -specific input suppor t; and minimum procurement price for rice and wheat, direct payment 
under production limit programme s for corn and cotton; and other types of green box supports, such 
as the support for research and infrastructure services.  
 
Page 13, paragraph 29  
 
Question  
4. According to the secretariat report, some changes have been made for the encouraged and 
restricted categories related to mining. Can the Chinese authorities provide these changes in detail 
and that whether these changes apply to all the WTO members or our country specific?  
Reply  
 
According to the Special Management Measures (Negative List) for Foreign Investment Access 
(2018) , in terms of the resource openness, the restrictive provisions on exploration and exploitation 
of special and rare kinds of coal (with Chinese party as the controlling shareholder) and exploration 
and exploitation of graphite are further cancelled. And currently, the investments in the energy and 
mineral resource field listed in the negative list only include that: exploration and e xploitation of oil 
and natural gas (including coal -bed gas and excluding oil shale, oil sand, and shale gas, etc.) are 
limited to joint venture or cooperation; investments in exploration and exploitation of tungsten, 
molybdenum, tin, stibium and fluorite a re prohibited; investments in exploration, exploitation and 
ore dressing of radioactive minerals are prohibited; investments in exploration, exploitation and ore 
dressing of rare earth are prohibited. The above policy changes apply to all WTO members.  
 
Page 13, paragraph 30  
 
Question  
5. China has provided a list of short term objectives with respect to non -fossil energies, natural 
gas consumption and carbon dioxide emission. What are the measures that China is taking in this 
regard to achieve these objecti ves considering that China is facing a lot of pollution related issues 
itself?  
Reply  
 
According to Article 1, Section 2 of the National Plan of Mineral Resources (2016 -2020) , China will 
accelerate the exploration and exploitation of clean and efficient ene rgy minerals, control the total 
mining volume of coal resources, vigorously advance green exploitation and clean utilization, and 
promote the construction of a clean, low -carbon, safe and efficient energy mineral supply system. 
It will especially accelerat e the coal structure adjustment and transformation & upgrading. It will, 
according to requirements of strict control over increment, optimization of stock amount, and clean 
utilization, actively and safely combine the resolution of excess capacity and stru ctural adjustment 
and transformation & upgrading, to promote the sound development of the coal industry. It will 
restrict the coal resource exploitation in east China, control such exploitation in central China, and 
optimize such exploitation in west China , and promote the green exploitation and transformation of 
large coal bases in Shendong, northern Shaanxi, etc. During the planning period, no coal mine with 
annual output below 300,000 tonnes  or coal and gas outburst mine with annual output below 
900,000 tonnes  is allowed to be newly built, coal mines with annual output below 150,000 tonnes  
that have large or more serious work safety accidents and coal mines with annual output below 
300,000 tonnes  that have serious or more severe work safety accidents are to be eliminated within 
a time limit, and coal mines with annual output below 300,000 tonnes  are to be guided to quit. 
Merger and reorganization and resource integration of coal enterprises are encouraged, to foster 
large coal enterprise groups. The number  of coal mines will be reduced to 6,000 by the end of 2020. 
China will actively promote the coal resources to change from a kind of fuel to both fuel and raw WT/TPR/M/3 75/Add.1  
 
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  material, promote graded, quality -based and clean utilization of coal, increase the proportion of coal 
washing and dressing, and increase the comprehensive utilization of resources like coal gangue and 
mine water.  
 
Page 13, paragraph 31  
 
Question  
  
6. It is provided that foreign investment in the exploration and development of oil of all types is 
encouraged but is limited to sino -foreign equity/ cooperative joint ventures or other forms of 
sino-foreign cooperative. What is/ are the reason(s) for the said limitation?  
 
Reply  
 
At present, foreign participation in China's  oil and gas development needs to be carried out in 
cooperation with a national oil company, with the rights and obligations of both parties being clearly 
defined  by signing a production sharing contract. It is common practice in international oil and gas 
resources countries. Of course, the above restrictions should be limited  to the acquisition of oil and 
gas mineral rights, and foreign enterprises may provide various oilfield services independently for 
Chinese enterprises.  
 
Page 13, paragraph 32  
 
Question  
7. With respect to the Manufacturing plan of China (2025), is China encouraging any foreign 
investment in the same?  
Reply  
 
The Manufacturing Plan of China (2025) treats domestic and overseas enterprises equally without 
discrimination. The Manufacturing Pl an of China (2025) and its relevant policies and measures apply 
to all enterprises within China. The Notice of the State Council on Several Measures for Expanding 
the Opening Up to the World and Vigorously Utilizing Foreign Investment  (GF [2017] No. 5) men tions 
that the Made in China 2025 strategic policies and measures equally apply to foreign -funded and 
Chinese -funded enterprises. Foreign -funded enterprises are encouraged to invest in high -end 
manufacturing, intelligent manufacturing, and green manufactur ing, etc., as well as industrial design 
and creativity, engineering consulting, modern logistics, inspection, testing and certification, and 
other producer services, and transform and upgrade traditional industries.  
 
Page 14, paragraph 35  
 
Question  
8. It is mentioned that foreigners cannot sit the Chinese national lawyer exam, whereas in other 
countries, the foreigners are allowed to take the exam. Is this a policy decision or a statutory 
decision?  
Reply  
 
According to the Decision on Amending the Eight  Laws including the Judges Law of the People 's 
Republic of China approved by the Standing Committee of the National People 's Congress in 
September 2017, national unified legal professional qualification examination syste m came into 
operation in China o n 1 January 2018, which was adjusted from the national judicial examination 
system. As specified in the Judges Law , the Public Procurators Law  and the Civil Servant Law , primary 
judges, primary procurators, applicants for legal practitioners, notarial practitioners, and legal 
arbitrators for the first time, as well as civil servants who are engaged in the administrative penalty 
decision review, administrative reconsideration, administrative adjudication, and legal counsel in 
administrative bodies for th e first time, shall pass the national unified legal professional qualification 
exam for legal professional qualifications.  In view of the provisions of the Judges Law , the Public 
Procurators Law  and the Civil Servant Law  that the judges, prosecutors and ci vil servants shall have 
Chinese nationality, the Ministry of Justice announced on 29 April 2018 the implementation of the  WT/TPR/M/3 75/Add.1  
 
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  Measures for the Implementation of National Unified Legal Professional Qualification Examination , 
which stipulates the persons with na tionality of the People 's Republic of China can enter for this 
exam.  Therefore, foreigners are not allowed in national unified legal professional qualification 
examination in China. This is a statutory decision rather than a policy decision.  
1 ECONOMIC ENV IRONMENT  
1.2 Recent Economic Developments, page 17, paragraph 1.3  
Question  
9. According to the secretariat report, imbalances in the Chinese economy have been observed 
for over a number of years now. How does China propose to tackle these imbalances?  
Reply  
The Chinese government highly values the solution of imbalances in the economic development, and 
regards coordinated development as one of its five development ideas; in the process of promoting 
economic growth, the Chinese government has focused on implementing policies for some prominent 
imbalance and insufficiency issues to strive to promote the coordinated economic development. For 
example, targeting the supply -demand structural contradictions, the Chinese government has 
proposed in recent years t o set supply -side structural reform as main thread, work hard for better 
quality, higher efficiency, and more robust drivers of economic growth through reform, raise total 
factor productivity, and strive to promote a more balanced supply -demand relationshi p. For another 
example, regarding the main inadequacies faced in the building of a moderately prosperous society 
in all respects, the Chinese government has proposed its working idea to focus on priorities, address 
inadequacies, and shore up points of weak ness, made arrangements for forestalling and defusing 
major risks, carrying out targeted poverty alleviation, and preventing and controlling pollution, to 
strive to promote the balance of different economic development objectives. China will actively 
strengthen policy communication with developing countries and share development experience and 
results with them during its efforts in solving imbalances and insufficiency.  
1.2.1 Monetary and exchange policy, 1.2.1.1 Monetary policy, page 19, paragraph 1.7  
Question  
10. The PBOC focuses on price stability mainly. Price stability is the primary but not the only goal 
of the Monetary Policy. Now in achieving this goal, care also must be taken to ensure that 
employment, balance of payments and financial sector st ability are not hampered with. What are 
the measures that the Chinese Government is taking to ensure that while achieving this goal, no 
other sector shall incur a loss or its general function is hampered?  
Reply  
The Law of the People's Republic of China on  the People's Bank of China expressly  specifies that the 
goal of the Monetary Policy is to maintain stable currency value and thereby promote the economic 
growth. Maintaining stable price of commodities is the primary mission of People's Bank of China. 
And as a developing country in its transformation period, China needs to promote financial reform 
to improve the conduction efficiency of the Monetary Policy. Accordingly, it is necessary for the 
Monetary Policy to coordinate the relationships among economic growth, employment, international 
incomes and expenses, financial stability and financial reforms and provide development and reforms 
with coordination and support.  
1.2.3 Other structural measures, page 23, paragraph 1.30  
Question  
11. According to the Chi nese secretariat report, there appears to be overcapacity in at least 
ten sectors. How does China propose to address the issue of overcapacity? As the employment in 
two key sectors has decreased considerably, how China is tac kling this unemployment issue?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China does not think there appears to be overcapacity in at least ten sectors. We communicated our 
stand with the WTO secretariat when the report was drafted. Overcapacity indeed exists in a few 
industries such as steel and coal, and China is always committed to addressing the issue of 
overcapacity.  
The Chinese government pays high attention to employee placement, especially reemployment of 
unemployed persons, during overcapacity in industries such as steel and coal; conducts 
reemployment assistance for unemployed persons in capacity reduction, provides free employment 
guidance, job recommendation and policy consultation, and includes them into the employment and 
self-employment policy assistance system; provides job transfer or skill promotion traini ng and 
grants training subsidies to improve the employment ability and career change ability; and provides 
more intensified entrepreneurship training/guidance, policy assistance and tracking service for those 
who intend to start a business. Also, we encour age internal employee placement in capacity 
reduction enterprises; allow the employees who are close to their retirement age and have difficulty 
in reemployment to select internal retirement on a voluntary basis; and provide public benefit jobs 
for the une mployed persons who are elder and have significant difficulty in market employment and 
those whose all family members are unemployed.  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements, 2.3.2 Regional trade agreements and unilateral 
measu res, page 35, paragraph 2.25  
Question   
12. China also intends to actively open up trade in services and trade in investment, promote 
facilitation, liberalization of trade and investment and create better market access and investment 
protection conditions for Chinese Investors that go global. How does China propose to achieve the 
said intention and will this proposal be open to all the WTO members?  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly iss ued the Special Management Measures (Negative List) for Foreign Investment Access 
(2018) , fulfilling Chinese leaderships commitments on opening expansion for world investors. In the 
Special Management Measures (Negative List) for Foreign Investment Access (2018) , opening 
measures are issued in 22 fields, with the list length reduced to 48 items from 63 items and 
restrictive measures decreased by nearly 1/4.  
China will continue to actively fulfil the Trade Facilitation Agreement of WTO. With respect to the 
terms of the Agreement, China retains only four Category B measures, with Category A measures 
accounting for 94.6%. China will strictly fulfil its commitments to accomplish scheduled transition of 
Category B measures in a 3 -year transition period. For inst ance, in terms of promotion the 
implementation progress of Single Window provisions, nine basic functions of standard Single 
Window, including goods declaration, shipping bill declaration and transportation declaration, have 
been primarily established; sev en standard systems of Single Window, including unified data 
element, unified certification and unified portal, have been established; and standard Single Window 
has reached a full coverage of all ports in China.  
China is working to further improve its ov erseas investment management system . On the one hand, 
it adopts a management model that places emphasis on  filing procedures, supplemented by approval 
formalities. On the other hand, it enhances the guidance, encourages, and services for enterprises 
in the ir going global, and launches negotiation or renewal on investment treaties with relevant 
countries to provide them with a higher level of protection in their overseas development.  WT/TPR/M/3 75/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.3 Tariffs, 3.1.3.1 Applied MFN tariffs, page 47, paragraph 3.13  
Question  
13. What are Interim Tariff rates? Does this provision hold true for all the WTO members?  
Reply  
The interim Tariff rate  is the tax rate applicable within a certain period, which is fixed by the Tariff 
Commission of the State Council under national foreign trade economic policies. The i nterim Tariff 
rate is lower than the MFN tariff rate and is generally applicable from 1 January to 31 December of 
each year.  
3.1.5 Import prohibitions, restrictions, and licencing, page 52, paragraph 3.28  
Question  
 
China's  import licensing system includes non -automatic and automatic import licen ces. In which 
situations can the automatic as well as the non -automatic import licen ces can be cancelled and what 
is the procedure for the same?  
Reply  
China applies automatic import licensing system to some of its own imported goods. It publishes the 
catalogue  of goods under automatic import licensing  administration every year. The issuing unit 
immediately gives approval  in not more ten days after receipt of the application and an automatic 
import licen ce is valid for six months. China conducts import licensing administration on two kinds 
of goods incl uding ozone -depleting substances and old electromechanical products, and publishes 
the relevant catalogues , with an import licen ce being valid for one year. At present, both automatic 
import licen ces and import licen ces can be applied for  online.  
Page 53, paragraph 3.35  
Question  
The Chinese authorities have a provision which states that import may or may not be restricted or 
prohibited in infant industries. The term "infant industries " has not been defined anywhere. Would 
request the authorities to provide a definition for the same.  
Reply  
There is no expression of infant industries in the Foreign Trade Law . Article 16 (4) of the Foreign 
Trade Law  expresses it as special industry. China has not quoted this clause in any legal practice.  
3.1.6.1 Anti -dumping measures, p age 56, paragraph 3.45  
Question  
When has MOFCOM most recently made use of the Sampling Method and has the said method proved 
useful?  
Reply  
There are provisions on sampling methods, price undertaking and period review in China's 
Countervailing Re gulation . WT/TPR/M/3 75/Add.1  
 
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  3.2.1 Customs procedures and requirements, p age 61, paragraph 3.69  
Question  
It is necessary for all the exporters of all the WTO member countries to register as foreign trade 
operators with MOFCOM or its authorized bodies even before filing of th e customs declaration. Does 
this apply to all the WTO members or is country specific? Can China also explain the rationale behind 
this measure?  
Reply  
China has fully approved foreign investment rights since 2004. All enterprises registered in China 
can become foreign trade operators through simple filing procedures.  
3.2.5 Export finance, insurance and guarantees, p age 65  
China is requested to provide Replies to the following questions:  
Question  
Whether China Exim Bank, China Development Bank and SINOSUR E operate on commercial 
principles?  
Reply  
China Exim Bank and SINOSURE are policy -based financial institutions while China Development 
Bank is a development -based financial institution. They are all subject to market administration and 
operation.  
Question  
Volume of capital infusions by the Government in these three institutions (with break -up) in the last 
three years? Whether the capital infusions made were based on strong rationale, and if so what are 
they?  
Reply  
The three institutions operate mainly through market o riented way . 
Question  
Whether China Exim Bank, China Development Bank and SINOSURE are subject to payment of taxes 
to the revenue authorities?  
Reply  
Yes.  
Question  
Whether China Exim Bank, China Development Bank and SINOSURE pay dividend to  the 
shareholders(s) /Government?  
Reply  
Yes. WT/TPR/M/3 75/Add.1  
 
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  Question  
Whether the volume of business done by China Exim Bank, China Development Bank and SINOSURE 
is associated with the size of share capital, and if so, how is it associated?  
Reply  
The asset size of China Exim Bank, China Development Bank and SINOSURE is correlated with capital 
and limited by capital adequacy ratio. When the capital adequacy ratio is insufficient, measures such 
as capital increase, limitation of asset expansion, credit asset transfer and as set securitization are 
taken to achieve regulatory standards and maintain the seriousness of capital constraints.  
Page 65, paragraph 3.91  
This paragraph states that Exim Bank of China provides two preferential facilities used as Chinese 
official developmen t aid to developing countries, namely: government concessional loans and 
preferential export buyers credit .  
China is requested to provide Repl ies to the following questions:  
Question  
Whether the Concessional Lines of Credit extended by China Exim Bank are  out of its own borrowings 
or the funds are set aside by the Government of China? If out of its own borrowings, are the said 
borrowings guaranteed or credit -enhanced in any way by the Government of China or any Chinese 
authority?  
Reply  
China Exim Bank main ly relies on issuing bonds as the source of its fund -raising.  
Question  
Whether the concessional Buyers Credit is also extended by China Development Bank, and if so 
whether they are extended out of its own borrowings of from the funds set aside by the Gover nment 
of China? If out of its own borrowings, are the said borrowings guaranteed or credit -enhanced in 
any way by the government of China or any Chinese authority?  
Reply  
China Development Bank does not extend the concessional export Buyers Credit.  
Question  
If the resources are  from China Exim Bank /China Development Bank, whether the interest rates 
charged to the borrowers are meeting the cost of borrowings, including admi nistrative and other 
overheads?  
Reply  
China Exim Bank determines the interest rates in the principle of breaking even while making minor 
profits.  
Question  
What is the average interest charged under t he concessional lines of credit /concessional Buyers 
Credit (extended by both China Exim Bank and China Development Bank)? What is the policy bas is 
of calculation of these rates?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China Eximbank sets its interest rates with overall consideration of macroeconomic policy direction, 
supply and demand for funds, cost of loan funds, cost of capital occupancy, project risk 
compensation, operational and administration expenses and quoted prices in the industry. China is 
not a Member of OECD, but the loan interest rates are set by referring to the Arrangement on 
Officially Supported Export Credits.  
Question  
What are the normal tenor and the moratorium period for such loans extended by both China Exim 
Bank and China Development Bank?  
Reply  
China Eximbank will determine the repayment terms of export credit according to the borrower's 
management ability, credit information, turnover of capital, project operation performance and other 
factors.  
Question  
Whether such loans are tied to exports from China, and if so, what is the percentage of sourcing 
from China in such a typic al concessional lines of credit /conce ssional Buyers Credit?  
Reply  
 
For the e xport l oans extended by China Exim Bank , the specific percentage hinges upon the actual 
conditions of the projects. No uniform percentage is mandated.  
 
Question  
If the interest rates charged under the Concessional Lines of Credit and Buyers Credit are not 
adequat e to cover the cost of borrowings, who compensates for the losses of China Exim Bank or 
China Development Bank.  
Reply  
 
China Exim Bank makes its own loan -related decisions, and also bears the risks in the export loans 
business on its own.  
 
Question  
In the last three years, how much losses were incurred by China Exim Bank or China Development 
Bank under such concessional loans, and the means to meet such losses . 
Reply  
China Exim Bank mainly relies on issuing bonds as the source of its fund -raising.  
Question  
In the last three years any defaults in repayment of such concessional loans occurred? If so, how 
much were the losses (value), and how the losses are accounted or compensated?  
Reply  
 
In the case of defaults in repayment by the borrowers, China Exim Bank w ill hold the said borrowers 
accountable according to the clauses of the loan contract. China Exim Bank bears the business risks 
on its own.  
 WT/TPR/M/3 75/Add.1  
 
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  Question  
Whether China Exim Bank or China Development Bank are regulated by the People 's Bank of China 
(Central Bank) at par with commercial banks in China, the extent of such regulations, and the 
regulatory treatment on such defaults/losses.  
Reply  
The reform plan for China Exim Bank and China Development Bank was initiated by the People's 
Bank of China and submitte d to the State Council for approval. According to the approved reform 
plan and charter, the main regulatory requirements and indicators of China Exim Bank and China 
Development Bank are consistent with those of commercial banks.  
Question  
The link given bel ow talks about the launch of State International Development Cooperation Agency 
(SIDCA), which will serve as the main coordinating agency for foreign aid. Would there be a change 
in role for China Exim Bank and/or China Development Bank with the launch of this new institution?  
http://www.chinadaily.com.cn/a/201803/14/WS57a3106e7dcc1416dc.html  
Reply  
 
The main duties of the International Development Cooperation Agency are to formulate strategic 
guidelines, plans and policies for foreign aids, to plan and coo rdinate major issues in foreign aids 
and make recommendations. It also promotes foreign aid reform and prepares programme s and 
plans for foreign aids, confirming foreign -aid projects and supervising and evaluating the 
implementation. After the establishment of the International Development Cooperation Agency, the 
role of the China Exim Bank and/or China Development Bank has not changed.  
 
Page 65, paragraph 3.95  
This paragraph states that "among the medium - and long -term insurance instruments, th e Buyer 
Credit Insurance Program insures against the default of payments by the borrower or guarantor 
under the credit agreement due to certain political and commercial risks ". China is requested to 
provide r eplies to the following questions:  
Question  
Whether the concessional Lines of Credit and concessional Buyers Credit extended by Exim Bank of 
China is covered by Sinosure under this scheme?  
Reply  
No need to r eply to this question as the r eply above is no.  
Question  
If so, in the last three years, how much  claims (value and numbers) pay -out have been made by 
SINOSURE on account s of concessional Lines of Credit and concessional Buyers Credit extended by 
China Exim Bank?  
Reply  
No. SINOSURE does not cover any concessional loans granted by China Exim Bank.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Whether the losses due to the claims pay -out on such default of payments (on concessional lines of 
credit and concessional buyers credit) are compensated by the Government of China or any funds 
set up to cover such losses.  
Reply  
SINOSURE does not cover any concessional loans granted by China Exim Bank.  
3.3.1 Incentives, p age 67, paragraph 3.97  
Question  
What were the financial incentives that China provided to different sectors and industries during the 
period of review and whether those incentives have had a positive impact?  
Reply  
Please refer to China's notification of subsidies for 2015 -2016.  
Page 67, paragraph 3.98  
Question  
What are the measures that China is taking to innovate in the agriculture sector, the strategic 
emerging industries(SEIs) and intelligent manufacturing and services?  
Reply  
China attaches great importance to the opening -up and innovative development of the service. In 
February 2016, it launched pilot projects for innovative  development of service trade in 15 provinces 
and citi es (regions), actively explored the institutional mechanisms and policy measures to adapt to 
the innovative development of service trade, and attempted to build a legal, international and 
convenient business environment. Positive progress has been made  in these two years. In 
June 2018, the pilot areas were further deepened in 17 provinces and cities (regions) to boost the 
opening -up of innovative  development of service trade.  
3.3.2 Standards and other technical requirements, p age 74, paragraph 3.123  
China i s requested to provide response s to the following questions, which are based on Table 1.  
Table 1: China TBT Notifications from January 2016 to November 2017  
Articles  Number of Notifications  
2.10.1  4 
2.9.2 64 
2.9.2 & 5.6.2  9 
5.6.2 16 
Withdrawn  1 
Total  Notifications  94 
Source:  CWS TBT Web portal  
Question  
 
Are all the technical regulations harmonized  with International ISO/ IEC standards?  
 
Reply  
 
The technical regulations listed in the table are not harmonized with international ISO/IEC standards. 
Because in accordance with the WTO/TBT Agreement, only technical regulations that do not adopt WT/TPR/M/3 75/Add.1  
 
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  international standards and may have a significant impact on international trade need to be notified 
to the WTO.  
 
Question  
 
A further, 16 notifications are under  the Article 5.6.2 which relates to conformity assessment 
procedures. Are these procedures taken in the direction of trade facilitation thereby simplification?  
 
Reply  
 
The 16 notifications under the Article 5.6.2 which relate to conformity assessment procedures are 
simplified conformity assessment procedures to further promote trade facilitation.  
 
3.3.2.2 Product certification, p age 74, paragraph 3.128  
 
Question  
 
Can China's Compulsory Certificates or CCC equally applies to the domestic manufacturers?  
Reply  
The CCC system follows the WTO national treatment principle and requires equal treatment of 
imported and domestic products concerning personal safety. Through testing the products and 
inspecting the factories to ensure that they continue to meet the standard requirements. The role 
and methods are similar to the EU CE certification, the US UL certification, Japan PSE certification 
and other market access systems.  
3.3.2.3 Labelling and packaging, p age 75, paragraph 3.134  
Question  
The laws require that i mported pre -packed food or food activities require a label and an instruction 
manual (if available) in Chinese language. Can the same be also provided in English language for 
the benefit of the retailers, wholesalers and consumers?  
Reply  
 
The Chinese label  is a clear requirement of China's Food Safety Law and relevant national food safety 
standards, and is a necessary guarantee for protecting the rights and interests of Chinese 
consumers.  
 
3.3.3 Sanitary and phytosanitary requirements, p age 77, paragraph 3. 141 
China is requested to provide Repl ies to the following questions.  
Question  
Except one concerned to Animal Health all  the other notifications relate to food safety. Of  the 
twelve  notifications, the national notifications account for a major share [food  safety (11) and animal 
health  (1)]. Are the se based on national standards?  
Table 2: Number of SPS notifications notified by China from January 2016 to 
November  2017  
Objectives /Standards  Number of notifications  
Animal Health  1 
National  1 
Food Safety  20 
International  9 
National  11 
Total Notification  21 
Source:  CWS SPS Web portal . WT/TPR/M/3 75/Add.1  
 
- 513 - 
 
  Question  
Can China provide the explanations as to what is the basis for the adoption of national standards?  
Reply  
 
According to relevant principles of the WTO SPS Agreement, China set relevant national standards 
by using relevant international standards, national situation as reference and after risk assessment . 
 
Question  
Has China carried our risk -based analysis to in troduce such deviated standards?  
Reply  
Yes. 
Question  
If so it is requested to provide the dossiers of such risk assessment carried -out? 
Reply  
The methods and considerations of risk assessment in the process of setting Chinese national 
standards are diverse. Provision of related materials is one of them.  
3.3.4.1 Competition policy, 3.3.4.1.1 Legislative and institutional framework, p age 77, 
paragraph 3.144  
Question  
Does the Chinese Anti -Monopoly law contain the definitions pertaining to cartel and bid  rigging?  
Reply  
The Chinese Anti -Monopoly Law gives a clear definition of cartel (monopoly agreement) in Article 39.  
Page 77, paragraph 3.145  
Question  
What are the measures that the Chinese government is taking so as to ensure that there is no abuse 
of the monopolistic power provided to certain sectors given that certain sectors are allowed to be 
concentrated into monopolies, near monopolies or authorized oligopolies?  
Reply  
Article 7 of Anti -Monopoly Law of China stipulates: "The operators ' legitimate businesses of the 
industries that are occupied by state -owned economy, are vital to the national economy and the 
national security, and that are specialized in monopoly according to law are protected by the State. 
Besides, the State will superv ise and regulate the business operations of the operators and the prices 
of their goods and services, safeguarding the interests of consumers and promoting technological 
progress. The operators of the above -mentioned industries shall operate according to l aw, be honest 
and trustworthy, strictly self -disciplined, accept the supervision of the public, and shall not use their 
control status or franchise monopoly to harm the interests of consumers. The above -mentioned 
relevant provisions of the Anti -Monopoly La w need to be understood from three aspects: First, China 
protects the industries that are occupied by state -owned economy, are vital to the national economy 
and the national security, and that are specialized in monopoly according to law; Second, the 
opera tors of those industries shall not use their control status or franchise monopoly to exclude and 
restrict competition and harm the interests of consumers; Thir d, the monopoly behaviour  of WT/TPR/M/3 75/Add.1  
 
- 514 - 
 
  excluding and restricting competition will be investigated and punis hed according to law by Chinese 
anti-monopoly law enforcement agencies.  
Page 78, paragraph 3.148  
Question  
It has been alleged that the current institutional framework of competition policy in China is not fully 
able to ensure the full functioning of the co mpetition policy. We would request China to share some 
insights on the same.  
Reply  
Since the implementation of the Anti -Monopoly Law, Chinese anti -monopoly law enforcement 
agencies have achieved remarkable results in strictly performing their duties in acc ordance with the 
law, protecting fair competition in the market, safeguarding the interests and rights of consumers, 
improving economic efficiency and promoting the healthy development of economy. In 2018, in 
accordance with the requirements of institution al reforms of Chinese government on "strengthening 
and optimizing the anti -monopoly functions of the government" and "promoting Anti -Monopoly Law 
enforcement", the duties of the former SAIC, of the price supervision and inspection of the National 
Developme nt and Reform Commission, of the anti -monopoly law enforcement of the Ministry of 
Commerce and of the Office of the Anti -Monopoly Committee of the State Council are integrated into 
the State Administration for Market Regulation, which will undertake the un ified anti -monopoly law 
enforcement. This institutional reform will help strengthen anti -monopoly law enforcement and 
promote the establishment of a basic status of competition policy.  
Page 78, paragraph 3.150  
Question  
What is the limitation period in which the parties which are injured by the violation of Anti -Monopoly 
provisions, may take recourse to the court of law?  
Reply  
Article 50 of Anti -Monopoly Law of China stipulates: "If a business operator implements a 
monopolistic conduct and causes losses to others, it shall bear civil liability according to law. Article 
16 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of 
Laws in the Trial of Civil Disputes Caused by Monopolistic Behaviour , which was enacted in  
June 2012, stipulates: "The prescribed period for the claim for damages arising from monopolistic 
acts shall be calculated from the day that the plaintiff knows or should know that the equity is 
infringed. If the plaintiff reports the alleged monopolistic  behaviour to an anti -monopoly law 
enforcement agency, the prescribed period for litigation shall be suspended from the date of its 
reporting. If the anti -monopoly law enforcement agency decides not to file a case, revoke a case or 
decide to terminate an i nvestigation, the prescribed period for litigation shall be recalculated from 
the date of the plaintiff knows or should know the results. If the anti -monopoly law enforcement 
agency determines the monopolistic behaviour after investigation, the prescribed period for litigation 
shall be recalculated from the date of the plaintiff knows or should know that the decision of the 
anti-monopoly law enforcement agency takes legal effect. When the plaintiff sues the monopolistic 
act for more than two years and the d efendant files a prescribed period for litigation, the damages 
shall be calculated two years before from the date of the plaintiff sued the people's court.  
3.3.4.1.3 Dominant market positions, page 81, paragraph 3.156  
While referring to the main regulatio ns/guidelines with competition policy issues, China has stated 
in its Trade Policy Review document:  
"Firms found violating relevant provisions maybe subject to the confiscation of any unlawful gains 
and to fines of between 1 and 10% of the sales a chieved in the previous year."  WT/TPR/M/3 75/Add.1  
 
- 515 - 
 
  Question  
Which authorities are responsible for issuing and implementing of such fines? Could China give the 
statistical figures of the number of domestic companies/organizations and foreign 
companies/organizations who have been fined  till now?  
Reply  
In the ten years since the implementation of the Anti -Monopoly Law, industry and commerce organs 
have imposed a total fine of RMB 784 million on market entities violating the Anti -Monopoly Law and 
have confiscated the illegal income totall ing RMB 42.20 million. Due to the diversified types of 
enterprises under Chinese law (for example, foreign -related enterprises include foreign enterprises, 
wholly -foreign -owned enterprises, Sino -foreign joint ventures, Sino -foreign cooperation, etc.), and 
in some cases, many different types of illegal subjects share joint liabilities, which cannot be divided. 
Therefore, the amount of economic penalties for different types of entities has not been separately 
counted.  
3.3.4.1.4 Mergers and acquisitions, page 81, paragraph 3.157  
Question  
What is the maximum time frame within which the concentr ations (if above certain thres holds) must 
be notified to the MOFCOM for approval?  
Reply  
Article 21 of Anti -Monopoly Law of China stipulates: "If the concentrations meet th e reporting 
standards prescribed by the State Council, the operators shall report to the anti -monopoly law 
enforcement agencies of the State Council in advance, and those that are not declared shall not be 
concentrated. " 
Page 81, paragraph 3.159  
Question  
In case the parties, to the level of concentration are found at fault, they may face a fine up to 
RMB 500,000, if it is found that the non -notified concentrated activity shall have required a clearance 
through the Anti - Trust Review. What are the restorati on measures/means (if any) that would be 
provided by the Chinese Authorities if it is found later that the said allegation on the party was false 
or misappropriated?  
Reply  
Chinese anti -monopoly law enforcement agencies have imposed penalties for undeclared  acts in 
accordance with the relevant laws and regulations such as the Anti -Monopoly Law. If the parties are 
dissatisfied with the decision made by the Chinese anti -monopoly law enforcement agency, they 
may apply for administrative reconsideration or file an administrative lawsuit. If there is improper 
enforcement of law enforcement agency, it will be handled with in accordance with relevant laws 
and regulations.  
Page 81, paragraph 3.160  
Question  
Once MOFCOM receives the said notification, it conducts a preliminary review of the said notification. 
If the need arises, the said notification is further reviewed. There is no provision of appeal provided 
herein, so is it safe to assume that the decision  of MOFCOM is final on the notification and cannot 
be appealed against?  WT/TPR/M/3 75/Add.1  
 
- 516 - 
 
  Reply  
According to Article 53 of the Anti -Monopoly Law, if any entity is dissatisfied with the decision made 
by the anti -monopoly law enforcement agency, it may apply for administrati ve reconsideration 
according to law; if it is dissatisfied with the administrative reconsideration decision, it may file an 
administrative lawsuit according to law.  
Question  
With respect to the notification documents, the preliminary review first is made b y MOFCOM and 
then the final decision lies with MOFCOM with whether to review it further or reject it. It is expressly 
stated that under some circumstances MOFCOM may extend the period required for review but in 
any case, the said period shall not extend th e time frame of 60 days. Can China shed some light on 
which are those circumstances wherein the MOFCOM may  extend the period for review?  
Reply  
It is stated in Article 25 of Anti -Monopoly Law of China that: Within 30 days of the receipt of 
documents and mat erials that fit the stipulations of Article 23 herein, the anti -monopoly law 
enforcement agency of State Council shall carry out a preliminary investigation of the operator 
consolidation, deciding whether or not to conduct further investigation and informi ng the operator(s) 
in writing.  And it is stipulated in Article 26 that: If any of the following is the case, the anti -monopoly 
law enforcement agency of State Council may extend the investigation period by no more than 
60 days after informing the operator in writing: (I). The Operator consents to an extension of the 
inspection period; (II). There are inaccuracies in documents provided by the operator which require 
further verification; (III). A major change has taken place with regard to the operator in the  time 
since initial declaration.  
Page 82, paragraph 3.162  
Question  
It is mentioned, that MOFCOM has introduced swift review procedures for cases that are defined as 
simple cases and that these simple cases will be published on the MOFCOM website for a period of 
ten days for public comments. Whether after ten days, the sai d simple cases will be removed from 
the MOFCOM website and whether the public comments will also be remov ed from the website as 
well? 
Reply  
The operation consolidation that meets the standards of simple cases will be filed as simple cases 
by the Anti -Monop oly Department of Administration for International Market Regulation. The 
declarant shall fill in the Notice of Simple Cases for Operator Consolidation , which will be publicized 
by the Anti -Monopoly Department on its website for ten days. During the public  notice period, any 
unit or individual (third party) may submit a written opinion to the Anti -Monopoly Department on 
whether the case should be considered as a simple case. When the public notice period expires, it 
will not be deleted. The Anti -Monopoly De partment will verify the opinions of third parties and 
evidence thereof, while the relevant written opinions will not be disclosed on the website.  
3.3.4.1.5 Administrative monopoly, p age 83, paragraph 3.166  
Question  
It is alleged that administrative monopo ly is still a problem in China. Can the authorities of China 
share their viewpoint on the same?  
Reply  
The Anti -Monopoly Law , which came into effect in 2008, includes a special chapter on the abuse of 
administrative powers for elimination and restriction of  competition, making it clear that the 
administrative authorities and organizations which are empowered by the laws and regulations to WT/TPR/M/3 75/Add.1  
 
- 517 - 
 
  carry out public administration function shall not abuse their administrative powers to restrict free 
circulation of comm odities from one region to another and shall not impose unequal treatment on 
non-local operators. To further standard ize government -related behaviour , the State Council issued 
the Opinions on Establishing a Fair Competition Review System in the Constructio n of Market System 
(GF [2016] No. 34) in June 2016, requiring local governments and their affiliated departments to 
conduct a fair competition review on the policy measures in the process of formulation thereof in 
light of fair competition review standards  to avoid elimination and restriction of competition. China's 
anti-monopoly law enforcement agencies have investigated and dealt with over 200 administrative 
monopoly cases.  
3.3.4.2 Price controls, p age 85, paragraph 3.174  
Question  
The determination of gov ernment set prices or government guided prices varies in accordance with 
the type of product or services. Does the variation differ on a large scale or is the variation minimal?  
Reply  
The Chinese Government adopts government prices and government -guided prices for some 
important public services. Specific items are already listed in the Catalogue of Prices Determined by 
the Central Government and pricing catalogues of various provinces (autonomous regions and 
municipalities directly under the Central Gover nment).  
According to the Price Law, the government -guided prices and the authority and scope of 
government -set prices shall comply with the catalogue of government -set prices. The Central 
Government and provincial governments (of autonomous regions and mun icipalities) respectively 
formulate the catalogue of prices set by the central government and the catalogue of prices set by 
local governments, and list items, price range and authorities of pricing. Commodities and services 
that exclude from the governmen t pricing catalogue shall adjust their prices to the markets in 
accordance with the Price Law.  
3.3.7 Intellectual property rights, page 96  
China is requested to r eply to the following questions:  
Question  
What is the scope of protection granted to Indian wo rks in China as the term of protection of works 
in India is 60 years as compared to th e term of 50 years in China?  
Reply  
It is stipulated in Article 2 of the Copyright Law of the People 's Republic of China that: Copyright 
owned by works of foreigners and stateless persons according to the agreements signed by China 
and the States of which the authors are nationals or in which the authors domicile habitually or the 
international treaties to which both China and the States are members shall be protected by t his 
law. Works of foreigners and stateless persons shall own copyright according to this law, if they are 
first published in the territory of China. Works of authors of the States which have not signed the 
agreement with China or have not joined the intern ational treaties to which China is the member 
and works of stateless persons shall be protected by this law, if they are first published in the Member 
States of the international treaties to which China is the member or are simultaneously published in 
the Member and Non -member States.  
Question  
Since, there is a difference in the requirements for protection of software imposed by the respective 
laws in the two countries, how will China extend protection to software registered in India?  WT/TPR/M/3 75/Add.1  
 
- 518 - 
 
  Reply  
The Chinese gove rnment treats the protection of both Chinese and foreign software copyrights 
equally, and protects overseas software in accordance with domestic laws and the provisions of 
international treaties engaged.  
Question  
As works by the Indian Film Industries are  well enjoyed in China, what level of protection are the 
Indian Cinematograph Films entitled to in China?  
Reply  
China will protect Indian films in strict accordance with the relevant provisions of the Copyright Law.  
Question  
Could China elaborate what are the steps initiated by China to augment the IPR applications filings 
in China in large number. Was there any subsidy or specific government scheme/help especially for 
the domestic applica nt of China for utility model?  
Reply  
In recent years, with the thorough implementation of the innovation -driven development strategy, 
China has enhanced the protection of intellectual property rights, and made great efforts in creating 
a fair and impartial market atmosphere, having the enthus iasm for innovation and entrepreneurship 
of the entire society fully excited. The willingness and capability of market entities to fully utilize the 
patent system to protect innovation outcomes have been further enhanced, featuring an increased 
investment in patents and a boost in the number of patent applications.  
At present, there is no policy at the national level to subsidize patent applications, grants and 
maintenance.  
Table 3.24 Summary of IPR legislation in China, 2017, page 97  
Question  
Are computer  tables and computer databases protected under the Copyright Regime in China?  
Reply  
Article 14 of the Copyright Law of People 's Republic of China stipulates that: compiling a number of 
works, fragments of works, or data and other materials that do not constitute a work, if the selection 
or arrangement of its contents reflects the originality, then the works are compiled. The compiler 
owns the copyright, but the copyright of the original work shall not be infringed upon the exercise 
of copyright.  
Questio n 
Does the Copyright Regime in China have the provision of fair dealing or fair use with respect to 
literary works? If yes, what is the percentage of fair dealing or fair use which is allowed under the 
Copyright Regime?  
Reply  
Article 22 of the Copyright L aw of People 's Republic of China lists 12 cases of reasonable use of 
works, which may not need to pay compensation without the permission of the copyright owner, but 
the name of the author and the work shall be specified, and other rights owned by the copy right 
owner in accordance with the law must not be infringed.  WT/TPR/M/3 75/Add.1  
 
- 519 - 
 
  3.3.7.2.1 Patents, page 98  
Question  
Patents are granted for inventions or products /processes which possess something novel. Does the 
Chinese patent law provide for patentability of DNA recombinant technology?  
Reply  
The Patent Law  and the Guidelines for Patent Examination  do not exclude the possibility of patenting 
DNA recombination technology. In accordance with the relevant provisions of the Guidelines for 
Patent Examination , for exampl e, vectors, recombinant vectors, transformants, polypeptides, fusion 
cells or monoclonal antibodies are all subject to patent protection, and can be granted a patent on 
the basis of satisfying other authorized conditions stipulated in the Patent Law.  
Quest ion 
Can a patent once registered or granted be refused registration or can be cancelled and what is the 
procedure for the same?  
Reply  
The Patent Law of the People's Republic of China and the Regulations for the Implementation of the 
Patent Law of the Peopl e's Republic of China have specific provisions about this issue. For details, 
please refer to Articles 45 -47 of the Patent Law, Chapter 4 of the Regulations for the Implementation 
of the Patent Law, Review of Patent Applications and Invalidation of Patent Rights.  
Question  
It has been stated by China that local IPR administrative offices deal with settling disputes. Could 
China elaborate on how it settles disputes through the local administrative offices and what are the 
relevant rules/law applicable in the types of disputes settlement?  
Reply  
In accordance with the provisions of the current patent laws, the local intellectual property office 
shall be responsible for mediating patent disputes, investigating and dealing with counterfeit patents 
and mediating ot her patent disputes, and the State Intellectual Property Office shall give guidance 
to the local offices in terms of law enforcement. The local intellectual property office bearing the 
duty of law enforcement, includes the patent administrations establishe d by the provinces 
(autonomous regions and municipalities directly under the Central Government) and the municipal 
people 's governments of the districts, as well as the patent administrations established by the 
people 's government of counties (cities and d istricts) authorized by local laws and regulations. If a 
party encounters a dispute on patent infringement and ownership, he or she may resort to the local 
intellectual property office in accordance with the laws and regulations. After filing a case in 
accordance with the law, the local intellectual property office shall carry out mediation first, and can 
order infringing party to stop the infringing act once the establishment of the infringement is 
determined when the mediation fails.  
According to the rele vant provisions of the Copyright Law of People 's Republic of China and the 
Regulations for the Implementation of the Copyright Law, if the infringements stipulated in Article 
48 of the Copyright Law damage the public interest at the same time, the local co pyright 
administration authorities shall be responsible for investigation and punishment, and shall demand 
to stop infringement act. The authorities can confiscate the illegal income, destroyed the pirated 
goods and imposed a fine; for a severe violation, the materials, tools and equipment mainly used 
for making infringing copy of the work may be confiscated. The National Copyright Administration 
can investigate infringements that have significant influence throughout the country.  
 WT/TPR/M/3 75/Add.1  
 
- 520 - 
 
  The applicable laws, regu lations and rules include the Copyright Law, the Regulations for the 
Implementation of the Copyright Law, the Regulations for the Protection of Computer Software, the 
Regulations for the Protection of Information Network Communication Rights, and the Measu res for 
the Implementation of Copyright Administrative Punishment.  
In order to guide the copyright owners and the copyright -related right holders to make a complaint 
to the relevant administrative agency about the infringement, the National Copyright Admin istration 
compiled the Guide to Copyright Administrative Complaints, which was released on 30 April 2006. 
The full text can be found on the official website of the National Copyright Administration 
(www.ncac.gov.cn ). 
Page 99, paragraph 3.229  
Question  
It is highlighted by China that as of January 2018, China has never granted any compulsory licen ces 
on patented products. Did China receive any applications for compulsory licen ces which have been 
rejected? If yes, then ho w many and who were the domestic and foreign applicants respectively in 
this regard?  
Reply  
China has not received any applications yet.  
3.3.7.2.2 Trademarks, p age 101, paragraph 3.237  
Question  
If registration for a Trademark is refused, a provision for appeal against the same decision lies before 
the Trademark Review and Adjudication Board and a second appeal lies against the decision of the 
Trademark Review and Adjudication Board, which is made before the court. We would request the 
authorities of China  to shed some light on the issue that which competent court has the required 
jurisdiction to entertain the said appeal?  
Reply  
The Supreme People 's Court issued a judicial interpretation of the Provisions on Intellectual Property 
Cases Jurisdiction of Court s in Beijing, Shanghai and Guangzhou  (FS [2014] No. 12). In case of 
dissatisfaction with the ruling of the Trademark Review and Adjudication Board, the parties 
concerned may file an administrative lawsuit to Beijing Intellectual Property Court.  
3.3.7.2.3  Geographical indications , page 102  
Question  
What is the time frame for which a geographical indication can be registered and can it be renewed 
over a period of time?  
Reply  
According to the Provisions on the Protection of Geographical Indication Products , the geographical 
indication products are valid for a long time and do not need to be updated again.  
3.3.7.3 Copyright and related rights, p age 104, paragraph 3.251  
Registration is voluntary and not a mandatory requirement for copyright protection under the 
Chinese statute. What is the remedy in case of infringement of copyright? Is just the right of passing 
off available to the copyright holder or can he too approach the court of law without being registered 
as a copyright holder?  WT/TPR/M/3 75/Add.1  
 
- 521 - 
 
  Reply  
In China, the registra tion of works is voluntary, that is, the copyright owned by the author or other 
copyright owner according to the law is not affected regardless of registration.  
3.3.7.4.2 New plant varieties, p age 105, paragraph 3.255  
Question  
Is there any provision for the protection for the rights of the farmers under the plants varieties act?  
Reply  
According to the Regulations of the People's Republic of China on the Protection of New Varieties of 
Plants, for the breeding materials of the farmers' self -plant and self -use authorized varieties, they 
may be applied for new plant varieties by others without the permission of and use fee to the owner 
of the variety, but other rights of the variety owner owned in accordance with this Regulation shall 
not be infringed.  
3.3.7.4.3 Undisclosed information and trade secrets, page 105  
Question  
Considering that there are no specific laws or regulations governing the protection of information, 
confidential information and trade secrets, on whom does the burden of proof lies to prove or 
disprove that the infringement of trade secrets has occurred or not occurred?  
Reply  
The Law of the People's Republic of China against Unfair Competition provides for regulation on the 
protection of trade secrets in Article 9. Articles 9 to 17 of t he Interpretation of the Supreme People's 
Court on Several Issues Concerning the Application of Law in the Trial of Civil Cases of Unfair 
Competition  also cover the protection of trade secrets. Article 14 stipulates: Once the party has 
mentioned others inf ringement upon its trade secrets, it shall be responsible for proving the 
accordance with legal conditions of trade secrets, same nature or essentially same nature between 
opposite party 's information and trade secrets and unjust measures adopted by the op posite party. 
And the evidence in accordance with legal conditions of trade secrets shall include the carrier of 
trade secrets, concrete content, business value and concrete confidential measures taken to the 
trade secrets.  
In juridical practice, the Peop le's Court will take the measures for evidence preservation based upon 
the specific circumstances of the case, reasonably allocate the burden of proof according to law, 
appropriately ease the burden of proof of trade secrets holders, and strengthen the jur idical 
protection of trade secrets.  WT/TPR/M/3 75/Add.1  
 
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  Page 106, paragraph 3.257  
Part I, Chart 1 
 
Source:  Global MRL Database, August 2015  
Question  
 
China is requested to explain the reasons for having stringent MRL of up to 8 % and up to 24 % in 
non-Codex MRL.  
Reply  
China's pesticide MRL is specified based on residual test data and assessment results of dietary risk 
in the standard condition of the good use of pesticides approved in China. When specifying the MRL, 
China fulfilled its SPS noti fication obligations in full accordance with the SPS Agreement and accepted 
the assessment of WTO members.  
Question  
China has non -Codex standards for 24 % agro chemicals this is a clear barrier for India 's agricultural 
exports. Can China explain the basis f or the usage of su ch non -Codex active ingredient/ substance?  
Reply  
China's pesticide MRL is specified based on residual test data and assessment results of dietary risk 
in the standard condition of the good use of pesticides approved in China. When specifying the MRL, 
China fulfilled its SPS notification obligations in full accordance with the SPS Agreement and accepted 
the assessment of WTO members.  
Question  
 
Almost 8 % of the total MRL used in the case were more stringent than the Codex level. Can C hina 
explain the basis f or such stringent MRL adoption?  
Reply  
China's pesticide MRL is specified based on residual test data and assessment results of dietary risk 
in the standard condition of the good use of pesticides approved in China. When specifying t he MRL, 
WT/TPR/M/3 75/Add.1  
 
- 523 - 
 
  China fulfilled its SPS notification obligations in full accordance with the SPS Agreement and accepted 
the assessment of WTO members.  
Question  
 
Was there any risk analysis carried -out internally or did it adopt such levels from the prevailing 
standard of some other country?  
Reply  
According to the specific situation, China has established a limited standard for CAC. China's limited 
standards were prepared by referring to international standards and combining with China's dietary 
consumption data  for food safety risk assessment.  
Part II, Table 3 Agricultural products of India's Exports interest faced with Stringent MRL 
barriers  
Active Ingredient  Index Commodity  China MRL  Codex MRL  Stringency in Times  
Azoxystrobin  Potato  0.1 7 70 
Difenoconazole  Potato  0.02 4 200 
Phorate  Potato  0.01 0.3 30 
Fluopicolide  Chinese Cabbage  0.5 30 60 
Thiamethoxam  Cabbage  0.2 5 25 
Chlorantraniliprole  Radish, root  0.02 0.5 25 
Clethodim  Soybean  0.1 10 100 
Difenoconazole  Onion, green  0.3 9 30 
Glyphosate  Rice 0.1 30 300 
Novaluron  Tomato  0.02 0.7 35 
Source:  Global MRL database August 2015  
In the above table, it can be clearly seen that use of Glyphosate is three hundred times higher in 
Rice than Codex standard, use of Difenoconazole is two hundred times higher than Codex in Potato 
and use of Clethodim is hundred times higher in Soybean.  
 
Question  
 
Has China done risk a nalysis and is it based on the a cceptable daily intake (ADI) of these 
agro chemicals used in above table on different products?  
Reply  
The pesticide MRL  specified by China is based on a long -term dietary risk assessment of ADI.  
Question  
If so, can China provide the risk assessment dossiers for the above agro -chemicals level used in 
these eight crops?  
Reply  
According to the practice of SPS notification review, China may provide relevant information of 
dietary risk assessment when specifying MRL if necessary.  
3.3.7.5.3 Judicial enforcement, page 108  
Question  
China has stated that it has established 11 tribunals at specific locations of the country. Could China 
elaborate the system as available as for those regions wherein such types of tribunals do not exist? 
What steps the infringed parties  can initiate in such regions?  
 WT/TPR/M/3 75/Add.1  
 
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  Reply  
 
As of June 2018, the Supreme People 's Court has approved the establishment of three intellectual 
property courts in Beijing, Shanghai and Guangzhou, and set up special judicial institutions in 
16 intermediate courts in Nanjing, Suzhou, Wuhan, Chengdu, Hangzhou, Ningbo, Hefei, Fuzhou, 
Jinan, Qingdao, Shenzhen, Tianjin, Zhengzhou, Cha ngsha, Xian and Nanchang for cross -regional 
jurisdiction over patents and other intellectual property cases, to further advance the specialization 
of judicial institutions, judicial officers and trial.  
 
In provinces and municipalities directly under the Ce ntral Government with intellectual property 
courts and special judicial institutions, the intellectual property courts and special judicial institutions 
shall have jurisdiction over first instance of technical cases including patents across jurisdictions. In 
provinces, autonomous regions and municipalities directly under the Central Government without 
intellectual property courts or special judicial institutions, the courts designated by the Supreme 
People 's Court shall have jurisdiction over first instance  of intellectual property cases including 
patents.  
 
4 TRADE POLICIES BY SECTOR  
 
4.1.3.2.2 Price controls and market price support systems, p age 123, paragraph 4.27  
 
Question  
 
China is requested to explain the reasons to reduce Minimum Purchase Price for wheat and rice in 
recent years? What was the quantity of rice and wheat procured by Sinograin for each year during 
2011 to 2017?  
 
Reply  
 
The reduction of minimum purchase price is part of the reform on pricing mechanisms for major 
farm products to strengthen the role of market mechanisms. The quantity of rice and wheat procured 
will be provided in the domestic support notification to be submitted in the near future.  
 
Page 124, paragraph 4.29  
 
Question  
 
What were the reasons behind dismantling procurement price system and the stockholding 
programme for cotton? How much money was spent on deficiency payment under pilot project for 
cotton? What are the problems faced by government in implementing deficiency payment for cotton 
producers?  
  
Reply  
 
China stopped temporary procurement and stockpiling of cotton, when the reform on pricing 
mechanisms for major farm products was initiated in 2014. The aim is to strengthen the role of 
market mechanisms, and to allow the price to be formed by the market. Th e amount of support for 
compensating the income loss of farmers will be provided in the domestic support notification to be 
submitted in the near future.  
 
4.4.3 Legal services, page 161, paragraph 4.181  
 
Question  
 
Liberalization measures were provided in the China Pilot free trade zone in January 2014, to allow 
legal firms to enter into agreements with Chinese law firms, to mutually dispatch lawyers to other 
firms and set up a joint cooperation in the FTZ with a Chinese law firm whereby they would provide 
legal services to the Chinese and foreign clients in accordance with the agreements. Have these 
measures proved successful?  
 WT/TPR/M/3 75/Add.1  
 
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  Reply  
 
At present, there are already five foreign law firms and Chinese law firms established joint ventures 
in the Shanghai Free T rade Zone, with good results.  
 
Question  
 
It has been noticed that a majority of the links that are provided are in Chinese Language. Can the 
same be provided in English Language as well?  
 
Reply  
 
All the available English versions of the links we provide have been provided. Some Chinese versions 
of the links will be replaced with their English versions in time if they are available.  
 
Question  
It has been further put to notice that a few links (as mentioned below) are not working and we would 
request the au thorities to look into the same as well as p rovide them in English language.  
Reply  
 
All the available English versions of the links we provide have been provided. Some Chinese versions 
of the links will be replaced with their English versions in time if th ey are available.  
Serial number  Content  
1 Citation 8585  
2 Citation 130130  
3 Citation 1010  
4 Citation 2626  
5 Citation 106106  
 
Report by China - WT/TPR/G/375  
 
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AN D COLLABORATION AND 
BUILDING AN OPEN WORLD ECONOMY  
 
4.5 Upholding justice while pursuing shared interests and enhancing constantly 
South -South cooperation, page 16, paragraph 4.29  
Question  
 
This paragraph states that major progress has been achieved in the implementation of 
ten cooperation plans which has brought tangible benefits to African countries in industrialization 
cooperation and infrastructure construction. What are the values of these ten plans/projects; 
whether these projects are implemented under Loans or Grants progr amme ; if Loans, whether they 
are concessional and tied to export from China?  
Reply  
 
In December 2015, President Xi Jinping announced that China would implement the Ten Major China -
Africa Cooperation Plans in the next three years at the Johannesburg Summit  of the China -Africa 
Cooperation Forum, and provide USD 60 billion as financial support. At present, most of the tasks 
have been implemented and outperformed, with very good results.  
 
Ten Major China -Africa Cooperation Plans help Africa reduce poverty, improve people's livelihood 
and improve capabilities for self -development; they help Africa improve infrastructure, optimize 
investment environment and solve development problems; they support Africa's job creation, 
increase tax revenues and enhance Africa 's own "hematopoietic" function, playing an active role in 
promoting the economic and social development of Africa. At the same time, China -Africa economic 
and trade cooperation has continuously advanced to a new level. In 2017, the volume o f China -Africa WT/TPR/M/3 75/Add.1  
 
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  trade reached USD 170 billion. More and more Chinese companies are focusing on the African market 
and are willing to make greater contributions to Africa's development.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  INDIA – BATCH  2 
Report by the Secretariat - WT/TPR/S/375  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
3.3 Measures Affecting Production and Trade, 3.3.6 Government procurement, 
3.3.6.3  Procurement methods and procedures, page 94, paragraph 3.209  
 
Question  
 
1. What are latest norms for foreign -service providers wanting to bid for Gover nment contracts?  
Reply  
At present, there are no special norms for foreign -service providers.  
Question  
2. Are these sourcing norms any different for domestic services supplier?  
Reply  
There is no difference.  
Question  
3. Is China following any international n orm for awarding the Government and SOEs contracts?   
Reply  
The procurement of the Chinese government follows the Government Procurement Law, and the 
procurement of relevant projects of state -owned enterprises follows the Law on Tendering and 
Bidding. The Government Procurement Law and the Law on Tendering and Bidding are all formulated 
with reference to international norms.  
4 TRADE POLICIES BY SECTOR  
4.4.2.2 Regulatory developments for banking services, page 155  
Question  
4. Over the course of 2017, China o pened its services sector (including banking and financial 
services), however it was felt by some observers that the implementation has been slow and the 
gains from market access may not be large. In this regard, how China is tackling the build -up of bad 
debt within the Country so that it does not affect the supply and demand of credit and allows foreign 
companies to take advantage of the liberalization of the banking and financial services sector?  
Reply  
In recent years, we have actively and steadily promot ed a higher level of opening up, continuously 
facilitated foreign banks in doing business in China, actively implemented a series of new opening 
up measures which were adopted first in free trade pilot zones, and cancelled the waiting period 
required for t he foreign banks to start RMB business. With the above -mentioned new opening up 
measures, foreign banks will be able to do business in a better business environment, and get more 
opportunities for their business development.  
 WT/TPR/M/3 75/Add.1  
 
- 528 - 
 
  At present, the business scope  of and approval procedures for Chinese and foreign banks are 
basically the same.  
China urges banking financial institutions to double their efforts to deal with bad debt in accordance 
with relevant laws, regulations, policies and requirements. Measures adopted include, inter alia , 
collection, bulk transfer and write -off. Foreign banks can also tackle bad debt through the above 
measures. At the end of the first quarter, the balance of non -performing loans of foreign banks was 
8.4 billion yuan, accounting for only 0.47% of the total non -performing debt balance of commercial 
banks; their n on-performing loans ratio was 0.66%, which was 1.09 percentage points lower than 
the overall non -performing loans ratio of commercial banks; their provision coverage ratio was 320%, 
129 percentage points higher than the overall provision coverage ratio of commercial banks. In 
general, foreign banks have lesser amount of non -performing loans, stronger resilience, and less 
pressure for tackling their bad debt, the amount of which is much lower than the average in the 
banking industry. In routine regulatory pr actices, non -performing assets have not been found to 
affect the normal operation of foreign banks in China and their benefits obtained from the opening 
up of China's banking industry.  
 
2 TRADE AND INVESTMENT REGIMES  
 
2.4 Investment regime, page 36  
 
Questi on 
5. What are the regulations governing the ownership and control of a Company in China?   
6. What is the ownership and control structure of an e -commerce company in China?  
Reply to 5 -6 
Major laws include: The Company Law of the People 's Republic of China,  the Law of the People 's 
Republic of China on Sino -Foreign Cooperative Joint Ventures, the Law of the People 's Republic of 
China on Sino -Foreign Equity Joint Ventures, the Law of the People 's Republic of China on Foreign -
Invested Enterprises, the Law of th e People's Republic of China on Individual Proprietorship 
Enterprises as well as relevant administrative regulations.  
Question  
7. What is the existing FDI Policy in the E -Commerce sector of China?   
Reply  
On 28 June 2018, the National Development and Reform  Commission and the Ministry of Commerce 
jointly issued the Special Administrative Measures on Access of Foreign Investment (Negative List) 
(2018 Edition), which will be implemented on 28 July 2018.  For more information, please visit the 
official website o f the Ministry of Commerce:  
http://www.mofcom.gov.cn/article/b/f/201806/20180602760432.shtml  
http://www.gov.cn/xinwen/201806/30/5302507/files/63493c924b2042639893a9e484faa4bd.pdf  
In addition, on 30 June 2018, the National Development and Reform Commission and the Ministry 
of Commerce promulgated the Special Administrative Measures on Access of Foreign Investment to 
the Pilot Free Trade Zones (Negative List) (2018 Edition), which can be found on the official website 
of the State Council:  
http://www.gov.cn/xinwen/201806/30/5302507/files/63493c924b2042639893a9e484faa4bd.pdf . WT/TPR/M/3 75/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.4 Services, page 148  
Question  
8. Is there a sta ndard procedure and timeline for the certification of System Integrators (SI) in 
China?  
Reply  
According to the Decision of the State Council on Cancelling and Delegating Administrative Approval 
Items (Guo Fa [2014] No. 5), the Ministry of Industry and Info rmation Technology has cancelled the 
administrative examination and approval of the certification of System Integrators since 2014. After 
the cancellation, the selection of a system integrator will be decided by the owner or bidding unit of 
the project bas ed on project requirements and market principles.  
4.4.1.2 Regulatory framework, page 149, paragraph 4.119  
Question  
9. Does China's new Cyber Security Law prohibit cross border data flow?  
Reply  
(1) While implementing the Cyber Security Law and drawing on international experience, China is 
formulating regulations and rules related to the administration of network data security. Relevant 
requirements do not limit to certain countries. As long as network operators comply with relevant 
laws and regulations whe n carrying out their business activities in China and fulfil their obligations 
to protect data, we welcome their investment and development in China.  
(2) The Cyber Security Law does not aim to prevent cross -border data flow, which is currently a 
prerequisi te for economic globalization. We are willing to carry out exchanges and cooperation with 
other countries on this issue, jointly promote the orderly and free flow of data in accordance with 
the law, and fully protect personal information and national netwo rk security.  
The purpose of formulating and implementing the Cyber Security Law is to safeguard the national 
cyberspace sovereignty, national security, and social public interests, and protect the rights and 
interests of citizens, legal persons and other o rganizations, rather than restricting foreign companies, 
technologies and products from entering the Chinese market.  
(3) China will not close its door to the world. Instead, we emphasize that three things will not change, 
that is, China's policy of using f oreign capital will not change, the direction of providing better 
services for foreign enterprises in China will not change, and the policy of protecting the legitimate 
rights and interests of foreign investment enterprises will not change. Neither the Cyb er Security 
Law nor other laws and regulations will restrict the entry of foreign technologies and products, or 
promote protectionism. On the contrary, they will fully focus on creating a fair, open and orderly 
market environment.  
(4) China is willing to s trengthen exchanges and discussions with countries on the issue of cross -
border data transmission, strengthen international cooperation, achieve legal, orderly and free flow 
of data, and promote economic globalization and technological innovation.  
Question  
10. Does China's new Cyber Security Law limit the access of foreign companies to the Chinese 
market?  WT/TPR/M/3 75/Add.1  
 
- 530 - 
 
  Reply  
Please refer to the reply to question 9.  
Question  
11. Please give a full account of the various laws that have been put in place or are being 
contem plated to regulate e -commerce in China. Publicly available sources have revealed that a draft 
PRC E -commerce law, Consumer protection law and new PRC cyber security law is being considered. 
Please provide details on each of these laws (in English) also the ir legislative status.  
Reply  
The E -commerce Law is included in the legislative plan of the 12th and 13th National People's 
Congress Standing Committees. In December 2013, the National People's Congress Financial and 
Economic Committee took the lead in draf ting the E -commerce Law, and 12 departments including 
the Office of the Central Cyberspace Information Commission, the Development and Reform 
Commission, and the former Legislative Affairs of the State Council participated in the drafting 
working group. Up  to now, the Standing Committee of the National People's Congress has conducted 
three deliberations on the E -commerce Law of the People's Republic of China (Draft), and published 
this draft online for public comments on the Internet from 29 June to 28 July . 
Currently, there is no amendment to the Consumer Protection Law of the People's Republic of China 
introduced in 2013.  
The Cyber Security Law of the People's Republic of China was published on 7 November 2016, and 
will enter into force on 1 June 2017.  
Question  
12. Can foreign firms work on the projects that deal with data sets of Chinese nationals?  
Reply  
Please refer to the reply to question 9.  
Question  
13. Is it mandatory for foreign service providers to partner with local Chinese company to process 
data that involves Chinese national?  
Reply  
Please refer to the reply to question 9.  
Question  
14. Can China spell data handling norms for foreign service providers that involve personal and 
non-personal data sets of Chinese nationals?  
Reply  
Please refer to the reply to question 9.  
Question  
15. It is understood that China entered into an MOU with the United States in 2012 providing 
increased and improved market access for imported theatrical films. It is also understood that the 
MOU was to be reviewed in 2017 . China is requested to provide the details of the MOU along with 
the latest update on the review negotiations.  WT/TPR/M/3 75/Add.1  
 
- 531 - 
 
  Reply  
 
On 15 April 2012, China and the United States formally signed a China -US memorandum of 
understanding on films. In May 2012, China and the  United States jointly notified the WTO of the 
details of the MOU (Document No. WT/DS363/19).  
 
Page 149  
 
Question  
16. It is understood that foreign companies seeking to participate in the development of cloud 
computing, including computer data and storage services provided over the Internet in China, are 
not permitted to directly obtain Internet Data Center (IDC) licences. Instead, a foreign company 
seeking to provide cloud computing services must establish a contractual partnership with a Chinese 
company h olding an IDC licence. It is requested that China may share the complete set of regulations 
governing the provision of cloud computing, including computer data and storage services provided 
over the Internet.  
Reply  
At the heart of China's framework of the opening up of and access to the value -added 
telecommunications business market are the Regulations on Telecommunication and the Provisions 
on the Administration of Foreign -Invested Telecom Enterprises. Other important policies and 
documents include opening  up policies and agreements such as China's WTO commitments and CEPA 
agreements, the Administrative Measures for the Licensing of Telecom Business Operations, the 
Measures on Administration of International Communication Import and Export Board, the Catalo gue 
of Telecom Business Classification, and normative documents such as the Circular on Strengthening 
the Administration of Value -added Telecom Business of Foreign Investors.  
E-Commerce/ Digital Economy  
 
Question  
 
17. Could you provide an update on China's draft law on e -commerce? What are the changes 
proposed in the second and third review of the draft law on e -commerce?  
Reply  
Up to now, the Standing Committee of the National People's Congress has conducted 
three  deliberations on the E -commerce Law of the P eople's Republic of China (Draft), and published 
this draft online for public comments on the Internet from 29 June to 28 July. A total of 
1473 comments have been received.  
Question  
18. It is learnt that China has announced its plan to revamp its rules on Permanent Establishment 
based on OECDs Base Erosion and Profit Shifting Action Plan 1 on Digital Economy. It is requested 
that China may share the latest state of play on these rules.   
Reply  
The international community is currently discussing the rules on Permanent Establishment in the 
context of the digital economy, but no consensus has yet been reached. China has no plans to 
unilaterally revamp the rules on Permanent Establishment based on OECD 's Base Erosion and Profit 
Shifting Action Plan 1 on Digital E conomy.  
  WT/TPR/M/3 75/Add.1  
 
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  BRAZIL – BATCH  1 
Report by China  - WT/TPR/G/375  
2 NEW ERA, NEW THOUGHT AND NEW VISION  
Page 3 , paragraph 2.3 
"China's economic development has been transitioning from a phase of rapid growth to a stage of 
high-quality development. It is a pivotal stage for transforming growth model, improving economic 
structure, and fostering new drivers of growth. Developing a modernized economy is an urgent 
requirement for getting China smoothly through this critical transition. China will adhere to its overall 
policy keynote of making progress while maintaining stability, pursue with firmness of purpose the 
new vision of innovative, coordinated, green and open development that is for everyone, regard 
supply -side structural reform as its main task, and push ahead in a coordinated way all the work of 
stabilizing growth, promoting reform, adjusting structure, benefiting the people's livelihood and 
preventing risks. " 
Question  
1.  What are the new drivers of economic growth in China in the current transition from a pha se 
of rapid growth to a state of high -quality development?  
Reply  
As China's economic development has been transitioning from a phase of rapid growth to a stage of 
high-quality development,  the new drivers , which are mainly from  the new industry, new busin ess 
forms and new model , are continuously strengthened, and become important forces to promote the 
steady growth of Chinese economy and the transformation and upgrading of China's economic 
structure. Firstly, new industries and new products have grown rapi dly. The new products that  are 
high-value -added and highly techn ology -involved have shown a rapid growth, such as industrial 
robots and new energy vehicles. Secondly, the development progress of new business form and new 
mode has been accelerated. Online s ales have become the new engine of consumption growth, which 
has stimulated domestic market vitality and consumer demand; Mobile payment has increased by 
leaps and bounds. Platform economy, sharing economy, and coordinated economy has widely 
infiltrated in to various fields. New models have been  thriving, such as, online and offline integration, 
cross-border e -commerce, smart home, and intelligent communication.  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1 Setting new mechanisms for sustainable trade development , paragraph 3.2 
[...] China has been actively promoting the optimization of the international market layout and 
domestic regional distribution, as well as that of commodity structure, business entitie s and modes 
of trade. New forms of business and trade models are explored. [...] Proactive and effective import 
policies are implemented. [...] 
3.1.1 Implementing more proactive import policies , pages 4 -5, paragraph 3.3 
"Since the last review, China has further simplified import administration procedures and lowered 
import tariffs. By November 2017, interim tariff rates had been applied on 152 tariff lines of 
consumer goods with an average decrease of 50% from the MFN rate s, involving a yearly import 
value of US D 10.9 billion. From 1 December 2017 on, China has further lowered import tariffs on 
187 tariff lines of consumer goods at HS 8 -digit level. The tariff rates dropped from 17.3% to 7.7% 
on average, covering food and s upplements, drugs, chemical products for daily use, clothing and 
footwear, hats and caps, household appliances, cultural and recreational goods and etc. This was 
China's fourth slash of import tariffs within three years, and the tariff lines involved outnu mbered 
the total of the previous three times. In 2017, China's imports propelled the global imports to grow 
by nearly 2 percentage points, contributing more than 15% of global imports increase. Its portion 
in global imports reached 11.1%, touching a record  high."  WT/TPR/M/3 75/Add.1  
 
- 533 - 
 
  Question  
2.  Has the changing structure of imports been in conformity with a prescribed strategy of 
economic development? In other words, has the changing import structure been concomitant with 
a shifting pattern of export structure?  
Reply  
Lowering import tariffs of consumer goods on a large scale will better meet people's diverse 
consumption needs. It is one of the important measures for China to open wider to the outside world 
and also reflects that China's economic development is transfor ming from a stage of rapid growth 
to a stage of high quality growth.  
3.1.3 Developing new modes of trade and business models , page 5 , paragraph 3.8 
China has been working hard in replacing driving forces and adjusting structures, and has 
undertaken and exp anded pilots on cross -border e -commerce and market trade mode. 13 pilot zones 
on cross -border e -commerce in Hangzhou and other cities were promoted. Policy framework 
conductive to the development of cross -border e -commerce is taking shape.  
3.2 Creating mor e attractive investment environment , 3.2.4 Further opening up the 
financial sector , page 7 , paragraph 3.15 
"In the banking sector, in June and July 2017 respectively, the People's Bank of China (PBOC) eased 
access restrictions of bank card clearing institu tions and for financial service suppliers to engage in 
credit investigation and rating service. In March 2018, PBOC issued policies concerning foreign 
investment in payment service by non -banking institutions and opened up the sector. In March 2017, 
the fo rmer China Banking Regulatory Commission also relaxed policies and supervisory requirements 
for foreign -invested banks to engage in such business activities as government bonds underwriting, 
custody services, financial consultancy etc. In the securities se ctor, China decided in November 2017 
to allow foreign ownership of up to 51% in foreign -invested securities firms, fund management 
companies and futures companies. This capping will be further removed three years after 
implementation. In March 2018, the cr ude oil futures were listed for trading in Shanghai Futures 
Exchange. It was the first product in China allowing foreign investors to trade in Chinese futures. 
Next, China Banking and Insurance Regulatory Commission will further consider relaxing equity 
restrictions on foreign participation in Chinese financial asset management companies, Chinese 
banks and life insurance companies. Conditions for foreign financial services providers to establish 
presence in China will be eased, the business scope be expande d, and regulatory rules be optimized. "  
Question  
3.  What is the economic strategy behind the process of financial liberalization in China? According 
to this (presumed) paced and measured approach to financial liberalization, which financial sectors 
are th e first ones and which financial sectors are the last ones to be liberalized?  
Reply  
China's financial industry will adhere to three principles in its opening up to the outside world: firstly,  
it will  adhere to the principle of pre -establishment national treatment and negative list; secondly, it 
will enable the reform of exchange rate formation to match with the process of capital account 
convertibility, for joint advance; thirdly, it will pay attentio n to preventing financial risks and match 
financial supervision capabilities with financial openness.  
After China joined WTO in 2001, the scope of opening up of the financial industry gradually 
expanded, the number of foreign -funded institutions increased steadily, leading to remarkable 
foreign investment attracted, and the products and service systems were continuously enriched, 
playing an active role in promoting the reform and development of the national economy. On 
28 June, the National Development and Reform Commission and the Ministry of Commerce jointly 
issued the Special Management Measures for Foreign Investment Access (Negative List) 
(2018  Edition) , which  greatly relaxed the control over market access, and the opening measures 
were applicable to al l foreign investors. In the 2018 Version of Negative List of Foreign Investment, WT/TPR/M/3 75/Add.1  
 
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  opening measures were introduced in a total of 22 fields, and the restrictive measures were reduced 
from 63 to 48, with a reduction by nearly a quarter. In the financial secto r, the ratio of foreign shares 
in the banking industry was removed, and the ratio of foreign shares of securities companies, fund 
management companies, futures companies, and life insurance companies was relaxed to 51%. In 
2021, all foreign shares in the f inancial sector will be removed.  
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION AND 
BUILDING AN OPEN WORLD ECONOMY  
4.1 Firmly supporting economic globalization and building new platform for international 
cooperation , 4.1.1 Proactively promo ting international cooperation over the Belt and Road 
Initiative , page 11 , paragraph 4.2 
[...] Today, building the Belt and Road has had the Strong support and active participation of more 
than 100 countries and international organizations around the world. The Belt and Road initiative 
originates in China, but the opportunities and gains it br ings belong to the world.  
Question  
4.  Would China please explain what role cross -border business -to business e -commerce is 
supposed to play to achieve the goals outlined or implicit in the paragraph copied above?  
Reply  
The implementation of business -to-business e -commerce cooperation will help the Belt and Road 
countries to enhance cooperation in the aspect of policy communication, facility connectivity, trade 
smoothness, capital finance, and people connection, and promote economic integration and cultura l 
mutuality of countries along the Belt and Road.  
4.1.2 Preparing vigorously for the first China International Import Expo , page 12 , 
paragraph  4.5 
[...] China will host the China International Import Expo starting from 2018. [...] China will also host 
the first Hongqiao International Forum on Trade with the theme of "invigorating the new vitality of 
global trade and creating a new pattern of opening up and mutual benefit. " 
4.2 Firmly safeguarding the multilateral trading system and striving to contribute Ch inese 
wisdom and strength , 4.2.1 Participating proactively in the multilateral trade negotiations 
and discussions and playing a constructive role , page 13 , paragraph 4.12 
Investment facilitation benefits all members. China has joined hands with a group of developing 
members in the establishment of the Friends of Investment Facilitation for Development (FIFD) [...]  
Question  
5.  Would China please clarify what services China expects to import more from developing 
countries, and what role Chinese investment ab road in the tertiary sector could play to increase the 
exports of goods and services from developing countries to China?  
Reply  
The Chinese market is huge and has a wide range of needs, where the demands for quality and 
special goods and services are growing. China has been the largest export destination for many 
developing countries for many years. On 5 -10 November 2018, China will host the first China 
International Import Expo in Shanghai. We welcome developing countries to combine their own 
characte ristics to promote exporting of competitive and superior goods and service to China, share 
the huge business opportunity in Chinese market, enhance their cooperation with China and the rest 
of the world, and strive to achieve mutual benefit and common deve lopment.  WT/TPR/M/3 75/Add.1  
 
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  Page 13 , paragraph 4.13 
China attaches great importance to and supports the work related to e -commerce within the WTO 
framework. China participated actively in the discussions, tabled important proposals, and joined 
the Friends of E -Commerce for D evelopment (FED).  
Question  
6.  Would China please explain if it considers appropriate that the distinct categories of 
e-commerce {A) by the nature of the participants (business -to-business, business -to-consumer, and 
consumer -to-consumer) and; B) by the na ture of the product (goods, services, streaming of digital 
content, "meta" services to facilitate other types of e -commerce, etc.)} should be covered by distinct 
sets of rules?  
Reply  
E-commerce is cross -cutting, involving trade in goods, trade in services , and many other fields. In 
view of the complexity of e -commerce issues, especially considering the differences in the 
development level and demands of members, China advocates in the multilateral discussions of WTO 
that on the basis of respecting existing  authorizations, development shall be taken as the core, the 
principle of gradual progress shall be adhered to and efforts shall be made to clarify and improve 
the application of existing multilateral trade rules, so as to strive to find the greatest commo n 
denominator among members, and promote the progress of this issue to reflect the common 
interests of the members. For different areas such as goods, services and digital content, WTO 
members still need to make further discussion s. 
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.2 Implementing coordinated regional development strategy, rural vitalization strategy 
and carrying out targeted poverty alleviation , 5.2.3 Speeding up the modernization of 
agricul ture and rural areas and fostering new growth drivers of rural development , 
page 18, paragraph 5.9 
Addressing issues relating to agriculture, rural areas, and rural people has always been the 
centerpiece of the work of the Chinese government. In January 20 18, China issued guidelines on 
implementing the rural vitalization strategy. It is proposed that agricultural supply -side structural 
reform be pushed forward, and the production -oriented pattern of development be adjusted towards 
a quality -oriented one hig hlighting green development. Agricultural science and technology should 
be enhanced, whole -process mechanization be further promoted, and rural public services and 
infrastructure be strengthened. China will further deepen the rural reform including the rur al land 
system in a comprehensive approach. Agricultural support policies and measures will continue to be 
improved to form a mechanism containing both incentives and restraints which is green -oriented 
and promotes the rational use of agricultural resource s and protection of ecological environment  
Question  
7.  There have been recent changes in the approval procedures and timelines of the biosafety -
related agencies and committees, responsible for the analysis of agricultural science and technology 
processes of great importance to the promotion of innovation in the agricultural field. What are the 
current procedures adopted by China in the assessment of biotechnology products?  
Reply  
In order to standardize the intermediary services for administrative approval,  the State Council of 
China has sorted out the relevant administrative approval and cancelled the fees. Currently , when 
an overseas company applies for a safety certificate that is required for importing processing raw 
materials, the applicant is no longer  required to carry out safety testing of genetically modified 
organisms. After the safety evaluation by the National Genetically Modified Agricultural Organisms 
Safety Committee, the Ministry of Agriculture and Rural Affairs entrusts the genetically modifi ed WT/TPR/M/3 75/Add.1  
 
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  agricultural biotechnology testing institutions to perform the testing. This revision only changed the 
main unit of the commissioned verification test, and the specific approval process has not changed.  
Question  
8.  In the context of enhancing agricultural science and technology, does China plan to take 
measures with a view to increase predictability and transparency in the research and development 
of biotechnology products?  
Reply  
China attaches great importance to t he research and development of biotechnology products. The 
Scientific and Technological Innovation Plan for the 13th Five Years  announced the key directions for 
major projects for the cultivation of new varieties of genetically modified organisms. The Biological 
Industry Development Plan for the 13th Five Years  announced the bio -agriculture and 
industrialization development planning. In general, the research and development of genetically 
modified organisms in China is guided by products and industries, and  research is strengthened on 
insect resistance, disease resistance, drought resistance and cold resistance of crops, and research 
and development efforts are increased on genetically modified cotton, corn and soybeans.  
5.3 Advancing modernization of the sy stem and capacity for governance , 5.3.6 Further 
deepening reform of financial system , page 21 , paragraph 5.24 
"The market -based reform of interest rates continued to deepen. The capital regulation and 
transmission mechanism of the monetary policy was furth er enhanced. Improvements were also 
made to the market -based RMB exchange -rate regime, making the exchange rate more market -
oriented and flexible. Large and medium commercial banks were prompted to set up inclusive finance 
departments, and targeted cut in reserve requirement ratio was implemented for inclusive finance. 
Efforts were also made to strengthen the function of the deposit insurance system, and to push 
forward in order the development of private banks. " 
Question  
9.  With reference to the PBOC ordinary meetings to determine the basic interest rate, does PBOC 
take into account the impact its monetary policy might have on its main regional trading partners?  
Reply  
In 2017, the People's Bank of China continued to implement a prudent and neutral mone tary policy 
and the dual -pillar regulating and controlling framework of monetary policy and macro prudence 
policy has achieved initial success. We will deepen the reform of interest rate marketization, continue 
to improve the self -discipline mechanism for market interest rate pricing and further improve the 
regulation and control of monetary policy and transmission mechanism.  
Report by the Secretariat  - WT/TPR/ S/375  
SUMMARY  
Page 9 , paragraph  3 
"In 2016, the People's Bank of China (PBOC) moved to a more market -based approach of conducting 
monetary policy. The new approach involves a closer management of liquidity in the banking system 
through an expanded range of instruments such as repos (or reverse repurchase agreements) and 
lending facilities to promot e better capital allocation and guide market interest rates to more closely 
match the PBOC's objectives. Under the new system, the PBOC uses a corridor or an interest rate 
band, where the upper limit is set by its overnight seven -day and one -month standing  lending 
facilities, while the lower rate is the interest paid by the PBOC on excess deposit reserves. China has 
a managed floating exchange rate regime, which uses a basket of currencies as a reference. During 
the period under review, the PBOC continued t o increase exchange rate flexibility. It also introduced 
a counter -cyclical factor into exchange rate determination, with a view to better reflecting the 
fundamentals of the Chinese economy and the changes in the international foreign exchange market, WT/TPR/M/3 75/Add.1  
 
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  as well as to offset pro -cyclical volatilities and to mitigate the "herding effect" in the foreign exchange 
market. Inflation, as measured by the consumer price index, increased to 2% in 2016, which is 
within the PBOC's desired range of 2 -3%. In 2017, the infl ation rate was 1.6%. " 
Question  
10.  How exactly is this counter -cyclical factor built into exchange rate determination in China? In 
what way is this mechanism expected to offset pro -cyclical movements in the foreign exchange 
market - as stated above?  
Reply 
There have been some new changes in the global foreign exchange market situation and China's 
macroeconomic operation during the first five months of 2017. The overall situation of US dollar has 
weakened and a number of China's economic indicators have be en improved. However, this 
fundamental change has not been fully reflected in RMB exchange rate. Some analysts believe this 
is due to the rather strong procyclicality of the foreign exchange market. The foreign exchange 
market may have certain procyclicali ty and could be easily driven by irrational expectations of inertia, 
thus enlarging the expectations of unilateral market, forming the "herd effect" with 
self-reinforcement, leading to a certain degree of "distortion" between supply and demand of the 
marke t and increasing the risk of market exchange rate overshooting.  For this purpose, the original 
middle rate pricing model of "closing rate + exchange rate changes of a basket of currencies" in the 
self-discipline mechanism of China's foreign exchange market  has been optimized, and " counter -
cyclical factor" has been introduced so as to hedge against the pro -cyclical swing of market 
sentiment. In that way, the middle price could reflect China's economic operation and other 
fundamental factors more adequately.  In the course of specific calculation, the change effect of 
baskets of currencies could be eliminated from the last day's volatility of the previous day's closing 
price compared to the middle price, from which both the exchange rate changes mainly reflect ing 
the market supply and demand and the "counter -cyclical factor" after counter -cyclical coefficient 
adjustment can be obtained.  The counter -cyclical coefficient is set by each quoting bank according 
to the economic, foreign exchange market pro -cyclical d egree and other fundamental changes.  
Page 9 -10, paragraph 6 
"Merchandise trade (imports plus exports) declined from 33.5% of GDP in 2015 to 31.2% in 2016, 
with both exports and imports falling. Exports continue to be dominated by manufactures, which 
accoun ted for 93.7% of total merchandise exports in 2016. Manufactures are also the largest import 
category, responsible for around 65% of the import bill. In 2017, merchandise trade amounted to 
32.3% of GDP. In 2016 (the latest year for which data were availabl e), the main destinations for 
merchandise exports were the United States; the European Union; Hong Kong, China; Japan; and 
the Republic of Korea; which combined represented about 60% of total exports. The main sources 
of China's imports were the European U nion; the Republic of Korea; the United States; the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei); Japan; and ASEAN 
countries. " 
Question  
11.  To what extent the so -called changing pattern of economic development in China, in which 
the domestic market is beginning to assume more relevance, has gained ground to the detriment of 
the process of regional integration in East Asia?  
Reply  
The Chinese g overnment is committed to expanding domestic demand, boosting expansion and 
upgrading of consumption, holding Import Expos and actively reducing import tariffs of some 
products. These measures are conducive to promoting trade partners' exports to China and  are the 
real benefits that China brings to trading partners. China cannot understand the conclusion of the 
question.  WT/TPR/M/3 75/Add.1  
 
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  Page 10 , paragraph 10 
"The Catalogue of Industries for the Guidance of Foreign Investment (Investment Catalogue), which 
is revised periodi cally, remains the main instrument used to guide FDI in China. The Catalogue was 
revised in 2017. Under the Catalogue, foreign investment projects are classified in the encouraged 
category and in a "Negative List", which contains a list of industries where  FDI is restricted or 
prohibited. Projects that fall outside of the Negative List require record -filing. Projects in the 
encouraged category are eligible for preferential treatment, for example, customs duty exemptions 
for the importation of equipment. The  2017 revision of the Catalogue encourages FDI in, inter alia , 
advanced manufacturing, high technology, the energy saving and environmental protection industry, 
and the modern services industry. According to the authorities, no technology transfer requirements 
are imposed on foreign investment projects. During the period under review, China continued to 
encourage FDI in the central and western regions, where projects may benefit from favorable 
policies. FDI involving investments in Chinese domestic enterprises may be subject to national 
security reviews if the FDI is related to defense, or is deemed to have an influence on national 
security. Foreign -invested projects (FIPs) in China are subject to approval or to record -filing. Projects 
subject to app roval are listed in a specific catalogue, while most projects not included in it are subject 
to record -filing. Approval requires the examination of the investment project, and a nu mber of 
conditions must be met."  
Question  
12. What are the basic criteria fo r deciding whether FDI should be classified under the "encouraged 
category" or the "Negative List"? Have these criteria been changing dynamically to adapt to the 
ongoing stage of economic development in China?  
Reply  
For the details of encouraged industrie s, please refer to the Catalogue of Encouraged Industries for 
Foreign Investment in Catalogue of Industries for Guiding Foreign Investment (2017 Revision) . 
Encourage industries refer to the projects in line with the adjustment and optimization direction of  
industrial structure. China continues to encourage foreign investment in advanced manufacturing, 
high-tech, energy -saving and environmental protection, and modern service industries. The Special 
Management Measures for Foreign Investment Access (Negative List) (2018 edition) , released on 
28 June 2018, mainly covers agriculture, forestry, animal husbandry, fishery, mining, 
manufacturing, electricity, heat, gas and water production, supply, wholesale and retail, 
transportation, warehousing and postal service s, information transmission, software and information 
technology services, finance, leasing and business services, scientific research and technology 
services, hydraulic engineering, environmental and public facilities management, education, health 
and soc ial work, culture, sports and entertainment. The Catalogue of Industries for Guiding Foreign 
Investment and the negative list of foreign investment access are adjusted in a timely manner 
according to the actual development of the Chinese economy.  
1 ECONOMI C ENVIRONMENT  
1.2 Recent Economic Developments , page 17 , paragraph 1.3 
"Despite the growth, imbalances have accumulated over a number of years. The shift to a more 
consumption -led expansion pattern has mainly been driven by the deceleration in investment rather 
than a surge in consumption, as the contribution of consumption to growth has been relatively stable 
over the past two decades. After peaking at 42.1% in 2010, the household saving rate in China has 
been declining and was 37.1% in 2015; however, it continues to be high by international standards, 
resulting in capital accumulation, which in turn has been the driving force behind China's growth for 
many years.5 However, this has led to misallocation of capital and falling investment efficiency, and 
to excess capacity in some manufacturing industries and in the real estate sector, resulting in a 
declining contribution of total factor productivity to growth. According to the OECD, high enterprise 
investment was financed by debt, fueled by interest subsidi es and implicit guarantees for 
state-owned enterprises (SOEs) and other public entities; however, the authorities maintain that 
credit activities are independent and driven by market conditions and do not involve any government 
interference. Furthermore, t he authorities state that, according to the Commercial Bank Law, 
Chinese commercial banks operate independently, and are responsible for their own gains and WT/TPR/M/3 75/Add.1  
 
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  losses, and commercial bank loans should take into account return on net capital gains of an 
enterp rise, debt payment capacity, and integrity and sustainable development. According to the 
authorities, the difference in interest rates reflects commercial banks' independent activities and is 
not based on the ownership of the enterprises. Effectively addre ssing sources of risk, such as 
excessive corporate leverage, real estate bubbles and leveraged investment in asset markets would 
help keep growth on a sustainable path. " 
Question  
13.  To what extent has the so -called consumption -led growth model already se t in? Insofar as 
China is still a middle -income economy, should the transition to a more consumption -driven pattern 
not be regarded as premature at the current stage of its ongoing process of economic development?  
Reply  
In terms of demand structure, China 's economic growth has shifted from being driven by investment 
and export to being driven by consumption, investment and export. In 2017, the contribution rates 
of the annual final consumption expenditure, gross capital formation and net export of goods an d 
services to GDP growth are respectively 58.8%, 32.1% and 9.1%.  
Page 18 , paragraph 1.6 
"Furthermore, future growth could also be boosted by the "Belt and Road" (or "One Belt and 
One Road") Initiative (Box 1), which aims to foster multinational cooperation  in trade, investment 
and finance, bringing much needed infrastructure and connectivity to the region. The authorities 
expect that the initiative could result in an increase in the trade and development level of the 
participating countries and achieve an o pen world economy. However, strong governance of projects 
to assure that they are financially viable and that the recipient countries have sufficient institutional 
and macroeconomic capacity to manage them would be required to reap the benefits of this 
initiative. "  
Question  
14.  How exactly has the mechanism of utilizing the FX reserves to fund infrastructure projects and 
initiatives been conceived and structured in China? How has the PBOC been compensating for 
disposing of its international reserves?  
Reply  
With the further opening -up of China's inter -bank foreign exchange market, more foreign entities 
will enter China. In the meantime, the People's Bank of China is also studying the orderly 
participation of commercial banks in the offshore foreign exch ange market. Those systematic and 
institutional arrangements will contribute to the gradual narrowing and convergence of the exchange 
rate difference between home and abroad.  
1.2.2 Fiscal policy and reform , page 21 , paragraph 1.18 
"During the review period, China continued to pursue a proactive fiscal policy, which was guided by 
supply -side restructuring and adjusting to the "new normal". The authorities consider that fiscal 
policy has been successfully used as an automatic stabilizer and counter -cyclical regulator, thus 
helping achieve sustained and steady economic and social development. "  
Question  
15.  Has the counter -cyclical fiscal policy been effective in stabilizing the public debt or the business 
cycle in China?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Over the years, the Chine se government adheres to proactive fiscal policy and achieved remarkable 
results, which has not only promoted steady and healthy economic growth, but also effectively 
prevented the risk of government debt.  
1.2.3 Other structural measures , page 24 , paragrap h 1.34 
"The PBOC continued to support policies that were intended to improve financial services related to 
people's livelihood, such as poverty alleviation, employment, and education. The PBOC also 
increased financial support for mass entrepreneurship and innovation and actively promoted science - 
and technology -related financial pilot programmes.29" 
Question  
16.  Do the policies supported by the PBOC - intended to improve financial services related to 
people's livelihood - also encompass a financial educati on programme ? How has the objective of 
financial inclusion been pursued in China?  
Reply  
The policies supported by the PBOC - intended to improve financial services related to people's 
livelihood, encompass financial education programme s, such as, Financial  Knowledge Popularization 
Month, Popularization of Financial Knowledge and Keeping 'Money Bags' and Day of Financial 
Consumer Rights and concentrated financial consumer education activities; conducting consumer 
financial literacy questionnaire survey, acti vely promoting incorporation of financial knowledge into 
the national education system; editing and publishing financial knowledge popularization books for 
primary school students, and producing financial knowledge popularization materials.  
China has alway s attached great importance to the development of inclusive finance. PBOC 
formulated relevant policies and launched a series of measures with remarkable results, which 
include the improvement of inclusive financial institution system, establishment of new financial 
service providers such as village banks and large and medium -sized commercial banks, and setting 
of the Inclusive Financial Business Unit, for the purpose of conducting business; attached great 
importance to the construction of financial infrastr ucture such as payment and credit reporting, and 
continued to carry out improvement as needed; and continued to strengthen financial consumer 
protection. PBOC strengthened the construction of financial consumer rights protection system, 
promoted relevant s upervision, inspection and evaluation, improved financial consumer complaint 
acceptance and handling mechanisms; carried out inclusive financial pilots, explored and 
summarized reproducible experiences, and achieved positive results; established and enhanc ed 
inclusive finance indicator system and reporting system; implemented monitoring and evaluation of 
inclusive financial development; carried out international cooperation and draw on useful 
international experience to promote the development of China's in clusive finance. For example, 
PBOC, on behalf of China, acted as the chairman of Global Partnership for Financial Inclusion (GPFI) 
under the G20 framework, to promote the results completion of the Inclusive Finance. PBOC 
co-authored with the World Bank and  published the report, i.e., Toward Universal Financial Inclusion 
in China: Models, Challenges, and Global Lessons ; and implemented China projects of Financial 
Inclusion Global Initiative (FIGI) of World Bank Group, and so on.  
3. TRADE POLICIES AND PRACTICE S BY MEASURE  
3.1 Measures Directly Affecting Imports, 3.1.2 Rules of origin , page 47 , paragraph 3.12  
Non-preferential rules of origin are used to: apply the MFN tariff rate; ensure the origin of goods 
subject to anti -dumping, countervailing and saf eguard measures; ensure that import quotas and 
tariff quota limits are imposed on specific countries; and determine the origin of imported goods 
purchased by the Government.  WT/TPR/M/3 75/Add.1  
 
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  Question  
17.  What is the legislation that contains the Non -preferential rules of origin? Are there product 
specific rules of origin, considering the particularity of each economic sector, or are there only 
general rules?  
Reply  
Regulations of The People's Republic of China on the Origin of Import and Export Goods  Decree 
No. 416 of the State Council and Provisions on Substantial Changes to Standards in Non -preferential 
Origin Rules (Decree No. 122 of the General Administration of Customs). The Decree No. 122 of the 
General Administration of Customs explicitly stipulates rules for specifi c origin of products.  
Question  
18.  Does the country carry out Non -preferential origin verification? If so, does it contemplate an 
on-the-spot visit to the manufacturer of the exported good? How long does it take to start and 
conclude the procedure?  
Reply  
The customs may carry out inspection of non -preferential origin of goods and on -site inspection if 
necessary. The specific time will be determined by actual situation.  
3.1.3 Tariffs , 3.1.3.2 Tariff rate quotas  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries, 4.1.3 Policy instruments, 4.1.3.1 Border measures, 
4.1.3.1.1  Measures affecting imports  
Question  
19.  Regarding China's tariff rate quota, does China disclosure statistics regarding which imports 
from which origins benefit from in quota rates and out quota rates? Where this information may be 
found?  
Reply  
"The relevant statistics of out -of-quota and in -quota customs duty rate" are not currently included 
in the data released.  
Question  
20.  On the same matter, could China disclose its sugar import statistics (items 17011300, 
17011400, 17011200, 17019100, 17019910, 17019920 and 17019990 of the Chinese Coding  
System) by country of origin for both in and out quota rates from 2013 until mid -2018?  
Reply  
"The relevant statistics of out -of-quota  and in -quota customs duty rate " are not currently included 
in the data released.  
3.1.4  Other charges affecting imports  
Question  
21.  According to item 3.1.4, VAT on imports is collected based on the CIF price plus the import 
duty. Could China clarify if, whenever trade remedies are applied to a given product, they also 
summed up to the basis for the calculation of the impo rt VAT?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The import value -added tax shall be levied as the combination of the customs -approved duty -paying 
value, customs duties and anti -dumping duties.  
22.  Is it common for Chinese customs to charge a fee for the release of detailed imports statis tics? 
Reply  
China Customs does not charge statistical material and data development fees currently.  
3.1.5 I mport prohibitions, restrictions , and licens ing, page 52 , paragraph 3.31 
There have been no major changes in the application procedures and terms of  automatic import 
licences since the previous TPR.18 The validity of an automatic import licen ce is six months; it can 
be extended in certain cases. Applications can be filed with the Ministry of Commerce or its entrusted 
institutions. Licen ce applications  shall be immediately approved by the issuing authority. Automatic 
import licen ces are not transferable.  
Question  
23.  Would China please describe the Automatic Import Licensing (AIL) system used for sugar 
imports? Please inform and describe the legal basi s for this system as well as how it is implemented 
in practice by MOFCOM.  
Reply  
See the following for details.  
Question  
24.  When was the AIL System for sugar instituted, and for what purpose?  
Reply  
See the following for details.  
Question  
25.  Please advise whether the AIL System for sugar has ever been published and if so, where and 
when.  
Reply  
See the following for details.  
Question  
26.  Please advise whether the AIL System for sugar has ever been notified to the WTO and if so, 
when.  
Reply  
See the  following for details.  
Question  
27.  Please confirm the HS numbers for the agricultural products subject to the AIL system.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
See the following for details.  
Question  
28.  Does the AIL System apply only to imports outside of the TRQ?  
Reply  
See the fo llowing for details.  
Question  
29.  Are importers required to have licen ces to import sugar outside the TRQ? If so, would China 
describe in detail how the AIL system for the importation of out -of-quota sugar is administered? On 
what legal basis are such lic ences allocated or denied?  
Reply  
See the following for details.  
Question  
30.  China's 12 January 2018 Replies to the Questionnaire on Import Licensing Procedures 
(G/LIC/N/3/CHN/15) states that "Automatic import licen ces apply to some freely -imported 
commodities, for the purpose of monitoring the import and doing trade statistics. The content and 
implementing methods thereof comply with the Agreement on Import Licensing Procedures. No 
restriction is imposed on the quantity or value of imports. " Does Ch ina consider that the AIL System 
is an automatic or non -automatic form of import licensing?  
Reply  
See the following for details.  
Question  
31.  Does MOFCOM automatically approve all the applications presented in order to import sugar 
under the AIL system?  If not, could China please provide information on the reasons presented for 
this rejection?  
Reply  
See the following for details.  
Question  
32.  Can MOFCOM limit the number of licen ces issued for sugar imports or can they be approved 
independently of the v olume of trade?  
Reply  
See the following for details.  
Question  
33.  Does MOFCOM limit how much sugar may be imported under the AIL system? If so, is this 
restriction published and easily available for the public or is it a de facto limitation?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
See the following for details.  
Question  
34.  Under the AIL System, does MOFCOM present any requirements, suggestions or guidance as 
to the amount and/or type of sugar each importer will be permitted to import? If so, are importers 
of sugar required to accept t hese requirements, suggestions or guidance from MOFCOM?  
Reply  
See the following for details.  
Question  
35.  Does MOFCOM have an official communication channel with the importers in order to 
determine the volume of sugar which can be imported in a given year? If so, is this publicly available?  
Reply  
See the following for details.  
Question  
36.  Is there a fixed distribution for the import of out -of-quota sugar under the AIL between State 
Trading Enterprises (STEs) and the non -STE sector? If the AIL System  can limit the volume of sugar 
that can be imported by non -STEs, does this impair the right of these entities to import such goods 
at the out -of-quota rate?  
Reply  
Automatic import licen ces apply to some freely -imported commodities, for the purpose of mon itoring 
the import and doing trade statistics. The content and implementing methods thereof comply with 
the Agreement on Import Licensing Procedures. No restriction is imposed on the quantity or value 
of imports.  
The basis of management is  Administrative Measures for Automatic Import License of Goods (Decree 
No. 20 of the General Administration of Customs, Commerce Ministry 2001).  
The automatic import licen ce management catalogue of sugar, specific HS code and other details 
can be queried f rom the announcement.  
China's Ministry of Commerce announced on the its website that the sugar beyond the tariff rate 
quota is included into the automatic import licen ce administration on 13 October 2014 
(announcement No. 71 of the General Administration o f Customs and Commerce Ministry, 2014). 
The automatic import licen ce administration does not apply to the sugar within the tariff rate quota. 
The Specification would be implemented since 1 November 2014. Specific HS coding and other 
details can be found in  the announcement or China's notification (G/LIC/N/3/CHN/15).  
With respect to commodities subject to automatic import licensing, the issuing authority shall, to the 
extent of feasibility, immediately approve licen ce applications with accurate content and i n complete 
forms upon receipt and shall not exceed ten working days in maximum under special circumstances.  
Automatic import licen ce shall be applied for sugar in the import catalogue and the relevant 
application materials shall be submitted in accordance with the requirements of the administrative 
measures. In the way, such licen ce can be obtained without quantity limit.  WT/TPR/M/3 75/Add.1  
 
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  Pages 52 -53, paragraph 3.32 
Products subjected to non -automatic licen ces are listed in the Catalogue of Import Goods Subject to 
Licensing19 issued annually, as well as in an additional Catalogue of Restricted Imports for Solid 
Waste. In 2017, the Catalogue of Import Goods Subject to Licensing listed 89 tariff lines at the 
HS 8-digit level that were subject to non -automatic import licensing,  which was the same as in 2015, 
while the Catalogue of Restricted Imports for Solid Waste20 listed 29 lines, compared to 52 in 2015 
(Chart 3.2). As in 2015, imports subject to non -automatic licen ces mainly include used mechanical 
and electronic equipment, and substances that deplete the ozone layer. The procedures to obtain a 
non-automatic import licen ce have remained unchanged since the previous review.  
Question  
37.  What are the procedures established for communicating to the exporting party any possible 
deficiencies in the documentation required for licensing of products, in order to enhance 
transparency and facilitate the corrections of possible deficiencies?  
Reply  
Article 32 of the  Regulation of the People's Republic of China on the Administration of the Import 
and Export of Goods  states that the documents requested by the administrative departments of 
import quotas and the administrative departments of import licen ces for submissio n shall be limited 
to those documents and materials that are necessary for effecting the administration and the 
departments may not refuse to accept the applications under the pretext of trifle, immaterial 
mistakes or errors. "Article 71" states that anyon e who refuses to accept the decision of the 
administrative organs as provided in the present Regulation on the granting of quotas, tariff quotas, 
licences or automatic licen ces or to accept the decision on determining the qualifications of state -
run trade enterprises or designated management enterprises or accept the decision on 
administrative punishments may plead for administrative reconsideration or institute a lawsuit at 
the people's court.  
Question  
38.  What are the expected procedures and timelines e stablished by China for licensing and 
updating registered data of fisheries exporting establishments?  
Reply  
We are not clear about the specific matters that Brazil needs to know. Please give us more details 
about the background of such matters so that I c an provide an accurate reply.  
Question  
39.  Does China expect to address recent issues of delay in the licensing procedures for fishing 
establishments?  
Reply  
We are not clear about the specific matters that Brazil needs to know. Please give us more detail s 
about the background of such matters so that I can provide an accurate reply.  
Question  
40.  Under the regulation of the Measures for the Supervision and Administration of Inspection and 
Quarantine of Entry -Exit Cereals (AQSIQ Decree No. 177 of 2016), licensing procedures for grains 
requires the submission by the exporting party of a list of all authorized establishments. What are 
the timelines in place for the approval, publication and application of these lists?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the Measures for th e Supervision and Administration of Import and Export Grain 
Inspection and Quarantine , a registration system shall be implemented for enterprises engaged in 
overseas production, processing and storage of imported grain. The detailed process is as follows. 
Competent authorities of the exporting countries or regions shall examine the production and 
processing enterprises exporting to China and recommend them to the General Administration of 
Customs if they are qualified.  Upon receipt of the recommended materi als, the General 
Administration of Customs shall examine and confirm the recommendation and overseas production 
and processing enterprises in countries and areas that meet the requirements can be registered.  
Question  
41.  Does China aim to facilitate the p rocedures and reduce the timelines currently applied for 
publication and application of the list of grain exporting establishments?  
Reply  
Upon receipt of the recommended materials from overseas authorities, the General Administration 
of Customs shall examine and confirm such materials. The unqualified material shall be returned for 
modification.  As for the qualified materials, China will reg ister the corresponding enterprises as soon 
as possible.  
3.1.6 Anti -dumping, countervailing, and safeguard measures , 3.1.6.1 Anti-dumping 
measures , page 56 , paragraph  3.47 
The Secretariat R eport notes that China does not have provisions on the lesser duty  rule in its 
anti-dumping procedures. Although China's anti -dumping regulations do not preclude the imposition 
of a duty lower than the margin of dumping, the investigating authority does not examine if a duty 
lower than the margin of dumping is sufficient  to eliminate injury.  
Question  
42.  Does China have any plan to amend its anti -dumping regulations so that they explicitly foresee 
the possibility of imposing a duty lower than the margin of dumping?  
Reply  
China has no plans to modify its Anti-Dumping Rules  as per the less -duty principle for now.  
3.1.6.3 S afeguard measures , page 60 , paragraph  3.61 
During the period under review, China initiated one safeguard investigation on sugar. The 
investigation was initiated in September 201635; definitive safeguar d measures in the form of an 
additional ad valorem  duty of 45% were imposed on 22 May 2017. The duty applies to imports 
outside the existing quota, and will be reduced to 35% within three years.36 
Question  
43.  Would China please inform both the volume and source (by WTO Member) of raw and refined 
sugar imported into China by country since the imposition of the safeguard measures?   
Reply  
See the following for details.  
Question  
44.  Could China provide the follo wing information on how the existing quota, which is not subject 
to the safeguard measures, is administered?  WT/TPR/M/3 75/Add.1  
 
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  • How are licen ces distributed?  
• What is the average rate of utilization of this quota?  
• What is the share of each origin within the quota?  
Reply  
In 2017, China imported 1.82 million tonnes  of raw sugar and 0.47 million tonnes  of commercial 
sugar. Since the implementation date of the safeguard measures is 22 May 2017, which is not a 
whole year, we do not know the quantity and source of import since t he implementation of the 
safeguard measures. The sugar within the tariff rate quota is covered by safeguard measures and 
still under the original management methods. Since it belongs to global quotas, the import sources 
shall be determined by the enterpris es that have obtained quotas according to the market situation.  
3.3 Measures affecting production and trade, 3.3.2 S tandards and other technical 
requirements , 3.3.2.1 Overview , page 71 , paragraph  3.114  
China has five kinds of standards: national, industry/sectoral, local, enterprise, and association. The 
first three types can be either voluntary or mandatory (technical regulations). National standards 
are developed for adoption at the national level, whi le industry/sectoral standards, which are also 
applicable nationwide, are developed in the absence of a national standard, where specific conditions 
must be complied with in a professional field at the national level. Standards may also be developed 
locally (local standards) when national or industry/sectoral standards do not exist. However, if and 
when equivalent national standards are developed, these replace local and industry/sectoral 
standards except in cases where local standards are stricter than nat ional ones. Enterprise standards 
may be developed for an enterprise when national, industry or sectoral or local standards are not 
available. Association standards were introduced as a new category by a 2017 amendment to the 
Standardization Law; these can be adopted for example by chambers of commerce or technology 
associations.  
Question  
45.  How does China explain that national, industry/sectoral and local standards can be either 
voluntary or mandatory? How can an exporter know whether a standard is voluntary or mandatory 
when it is published?  
Reply  
In accordance with the provisions of Admin istrative Measures for National Standards , the code of a 
mandatory national standard is GB while that of a recommendatory national standard is GB/T, so an 
exporter can tell the property of a standard based on its relevant standard code in an announcement 
of national standards.  
Question  
46.  Standards, by definition, should be always voluntary. Do all these standardization bodies 
comply with Annex 3 of WTO TBT Agreement - Code of Good Practices for the preparation, adoption 
and application of standards?  
Reply  
As per the new Standardization Law of the People 's Republic of China , China's national standards 
are classified into mandatory standards and recommendatory standards. Since China joined the 
WTO, its mandatory national standards, as an important form of expression of technical laws and 
regulations, have been widely accepted  by all members of WTO. Besides, China has always been 
following relevant provisions of relevant laws and regulations and relevant requirements of the WTO 
when carrying out standardization.  WT/TPR/M/3 75/Add.1  
 
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  Question  
47.  Are the bodies responsible for national, industry/s ectoral and local standards governmental 
entities? If China decides that a standard should be mandatory, how to assure it has accomplished 
with TBT provisions for technical regulations?  
Reply  
All of China's mandatory national standards, which fail to foll ow a national standard or is inconsistent 
with relevant international standard techniques and significantly affect the trade of other WTO 
members, shall be reported internationally as per relevant WTO requirements.  
Question  
48.  What are the main changes introduced by the revised Standardization Law of the Republic of 
China, which came into force on 1st January 2018? Will industrial/sectoral standards still be allowed?  
Reply  
The new Standardization Law contains 6 chapters and 45 articles, with an increase  of 19 articles 
compared with the previous Standardization Law and lots of revision. It mainly involves changes in 
the following four aspects. The first is expanding the range of standards. In the new Standardization 
Law, in addition to industry, its stand ards also cover agriculture, service industry, social undertakings 
and other fields needing unified technical requirements. Meanwhile, it also expressly specifies that 
the state shall promote the whole society to organize production, operation, management and 
service in standardized ways. The second is building a new Chinese standard system. The new 
Standardization Law has established a new standard system with coordinated support and 
development of government -led and market -oriented standards. The governme nt-led standards 
include mandatory national standards, recommendatory national standards, industry standards and 
local standards. Except for mandatory national standards, all the remaining standards are 
recommendatory standards. The market -oriented standar ds include group standards and enterprise 
standards. The new Standardization Law clearly defines the bodies formulating all sorts of standards 
as well as scopes and efficacy etc. of all sorts of standards, emphasizes giving play to the roles of 
government and market and increases the supply of standards. The third is encouraging 
energetically participating in international standardization events. The new Standardization Law not 
only adopts international standards but also expands the scope of participating in international 
standardization events. Meanwhile, it expressly specifies that the state shall energetically promote 
the participation in international standardization events, carry out standardized international 
cooperation and exchange, facilitate the c onversion between Chinese standards and foreign 
standards and encourage enterprises, social groups, educational & scientific research institutions 
and all other parties to participate in international standardization events. The fourth is 
strengthening the  management of establishment of standards. To guarantee standards practical 
reflection of market demand and the quality of standards, the new Standardization Law sets out the 
specific requirements for all links of establishment of standards, especially, em phasizes the necessity 
of establishing an information feedback mechanism and an assessment mechanism for execution of 
standards after formulation of standards and re -examining standards based on the feedbacks and 
assessment results, expressly specifies tha t the re -examination cycle shall be no more than 
five years to ensure the applicability of standards. Meanwhile, in the new Standardization Law, there 
is a new chapter of supervision and administration, stipulating strengthening the supervision before 
and after the formulation of standards to improve the quality of standards.  
Article 12 of the Standardization Law states: An industry standard can be formulated for the technical 
requirements, which are not subject to any recommendatory national standard and need unifying in 
a certain industry scope nationwide. Industry standards still exist.  
Page 73 , paragraph  3.120  
Industry or sectoral standards are formulated by the relevant technical committees. The 
standardization administrations of the competent ministries, with the support of the industry 
institutes of standardization and technical committees, are in charge of establishing industry or 
sectoral standard development plans and approving the corresponding standards. Most national and WT/TPR/M/3 75/Add.1  
 
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  industry or sect oral standards are filed and stored at the National Library of Standards. Local 
standards are formulated by the standardization authorities of provinces, autonomous regions and 
municipalities directly under the Central Government in accordance with the Adm inistrative Measures 
on Local Standards. Industry or sectoral and local standards must also be reviewed within five years 
of their implementation. The formulation procedures for enterprise standards are determined by the 
enterprises themselves.  
Question  
49.  Are all mandatory standards easily accessible in websites free of charge? Where can the 
exporters find information about those standards that are not recorded in the National Library of 
Standards?  
Reply  
According to Article 17 of the new Standardizati on Law, the texts of mandatory standards have been 
made public online for free. As per the provisions of the new Standardization Law, both industry 
standards and local standards shall be recorded by the administrative department of the 
State  Council. Recor ded information on relevant standards is available by referring to the record 
announcements on the website of the Standardization Administration of the People 's Republic 
of China.  
Question  
50.  Are foreign persons allowed to participate in the elaboration  of sectoral and local standards, 
through public consultations or public hearings, on equal conditions of local persons?  
Reply  
In the light of relevant requirements of Guiding Opinions on Foreign -funded Enterprises Participating 
in the Standardization Work of China  issued by the Standardization Administration, the National 
Development and Reform Commission and the Ministry of Commerce, foreign -funded enterprises 
shall enjoy the same treatment as domestic enterprises to participate in China's standardiza tion 
work. Besides, foreign -funded enterprises can participate in the drafting of national standards and 
bring forward opinions and suggestions in the processes of approval, seeking for opinions and 
implementation etc. of standards. Foreign persons are all owed to participate in relevant 
standardization work in legitimate ways like seeking for public opinions.  
3.3.3 S anitary and phytosanitary requirements , page 76 , paragraph  3.136  
The main legislation governing China's sanitary and phytosanitary (SPS) requi rements has remained 
unchanged since its previous review. The latest revision of the Food Safety Law entered into force 
on 1 October 2015. The revision highlighted the following aspects: (1) the management of food 
safety risks; (2) the management of food s afety at the sources; (3) the primary responsibility of 
food producers and operators in ensuring food safety; (4) the responsibility of local governments in 
ensuring food safety; (5) the supervision and management of food safety; (6) the social governance 
of food safety; and (7) the punishment of severe violations of the Food Safety Law.86 
Question  
51.  Under the new requirements of the Food Safety Law, China requires receiving, in advance, 
the list of signatures of veterinary authorities which may sign the  international health certificates 
regarding exports of bovine meat, pork and poultry from certain, but not all, trading partners, a 
measure that causes frequent retentions of shipments. What is the legal basis for requesting this list 
of signatures?  
Reply   
According to the requirements of the Food Safety Law, imported food shall be accompanied by 
supporting evidences for qualification. According to the requirements of the agreement signed 
between China and Brazil on exporting Brazilian bovine meat, pork and poultry etc. to China, Brazil WT/TPR/M/3 75/Add.1  
 
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  is required to provide China with samples of sanitary certificates and information on signed 
veterinar y officers etc. to be recorded by China. Retentions of shipments are mainly caused by 
Brazils failure to timely offer the updated recorded information on signed veterinary officers due to 
Brazils disorganized international management.  
Question  
52.  To wha t extent does China understand that this measure is necessary to protect human, 
animal or plant life or health?  
Reply  
This measure mainly aims to prevent the outlaws from counterfeiting certificates and also aims to 
well fulfil the signed veterinary offic ers' regulatory responsibility and to guarantee the safety of meat 
exported to China. The Brazilian inferior beef case of March 2017 also proves the necessity of this 
measure.  
Question  
53.  How does China understand that this measure is in accordance with  the principles of 
non-discriminatory treatment and to the provision that information requirements should be limited 
to what is necessary for appropriate control, inspection and approval procedures?  
Reply  
China adopts the same requirements for all tradin g partners and doesn 't treat its trading partners 
discriminatingly. It turns out that strengthening the inspection of information on signed veterinary 
officers on sanitary certificates of meat imported can effectively avoid the use of fake certificates 
and other unlawful acts, enhancing the mutual trust among trading countries and propelling the 
trade development.  
Question  
54.  Does China expect to facilitate procedures for approval of certificates of exports of bovine 
meat, pork and poultry, with the poss ibility of recognizing the certification system applied by trading 
partners, including the signature of health certificates?  
Reply  
China has always been actively facilitating the networking inspection of international sanitary 
certificates in order to fu rther guarantee the safety and promote trade facilitation.  
3.3.6 Government procurement,  3.3.6.6 Accession to the GPA and other international 
cooperation, page 96 (paragraphs 3.218 and 3.219)  
China has become an observer to the GPA in 2002. It initiated its GPA accession negotiation in 2007 
and has subsequently submitted six market access offers offering gradually enlarged market opening 
commitments. Discussions dedicated to China's accession have taken place on multiple occasions 
during 2008 -17. China's fifth revised offer, which was submitted on 23 December 2014125, covers 
entities and projects of all types and makes improvements in the areas of key concern to various 
parties. For example, more local entities have been added, all construction services co vered, and 
SOEs included for the first time in the offer. Nonetheless, significant gaps remain between this offer 
and certain GPA Parties' expectations, especially in terms of the coverage of non -sensitive military 
procurements, sub -central government enti ties and SOEs. The Chinese delegation indicated in the 
course of several GPA Committee meetings held in 2017 that it would submit a further revised offer 
in due course to address GPA Parties' remaining concerns.126 The GPA Committee has mentioned 
several t imes its belief that China's GPA accession, on the right terms, will bring important 
advantages both to China itself and to the multilateral system.  
China has not included or been negotiating any market access terms on government procurement 
in its free t rade agreements with trading partners. According to the authorities, it remains China's WT/TPR/M/3 75/Add.1  
 
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  priority to conclude its GPA accession before liberalizing its government procurement market through 
bilateral/reginal tracks.  
Question  
55.  Does China have an estimate d timetable for the conclusion of its accession negotiations to the 
GPA?  
Reply  
China has been committed to joining GPA as soon as possible and submitted six bids. The range of 
bids has been expanding and the level of some bids can be comparable to that of the participants in 
some areas. China is fully improving its bid as per the principle of reciprocity. It is not enough to 
join GPA only through China's unilateral efforts. It largely depends on the position and expectation 
of the participants.  
Question  
56.  What improvements were made in China's sixth market access offer with regard to its previous 
offer?  
Reply  
The 6th bid included universities, hospitals and state -owned enterprises for the first time. Engineering 
projects were all included in the bid and the threshold price has also fallen to the participants' level. 
In the meantime, the coverage of the central governme nt entities has been expanded. Five provinces 
have been added (bidding provinces have been up to 19). Service items have been added and 
exceptional cases have been adjusted.  
Question  
57.  What sectors, if any, are expected to benefit the most from increase d exports once China's 
accession to the GPA is concluded?  
Reply  
China's accession to GPA will create a win -win situation for China and the participating parties, which 
will benefit China and the participating parties.  
Question  
58.  How does China view the  impact of the accession to the GPA on its offsets policy, especially 
regarding compensatory measures that require transfer of technology? Does the recent inclusion of 
SOEs in the coverage represent a further limitation on this policy?  
Reply  
China is the largest developing country in the world and compensation trade can be required as per 
the GPA rules.  
Question  
59.  How does China intend to address the remaining gaps in the GPA Parties' expectations?  
Reply  
According to China's 6th bid, the level of bids has been comparable to that of the participants in some 
fields. China is fully improving its bid as per the principle of reciprocity. It is not enough to join GPA 
only through China's unilateral efforts. It largely depends on the position and expectation o f the 
participants.  WT/TPR/M/3 75/Add.1  
 
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  Question  
60.  Would the accession to the GPA require significant changes to the procurement legislation in 
China?  
Reply  
China will revise the relevant content of government procurement law in accordance with the GPA 
rules.  
Question  
61.  What is the degree of autonomy that local entities and SOEs have to conduct procurement in 
China? Do they need to follow the legislation enacted by the central authorities or do they have the 
prerogative of determining their own procurement rules?  
Reply  
The purchasing activities of local entities shall comply with the relevant laws promulgated by the 
National People's Congress and enforcement regulations based on actual conditions can be 
formulated. The purchasing activities of state -owned enterprises sh all comply with relevant laws 
promulgated by  the National People's Congress  
3.3.7 I ntellectual property rights , 3.3.7.1 Overview, p age 97 , paragraph 3.221  
The "China Manufacturing 2025" strategy highlights the importance of IP protection and 
enforcement, in particular in Sections 2.4 and 4.3.  
Question  
62.  In "China Manufacturing 2025 ", Section 2.4, invention patents per operating revenue is a 
performance indicator of innovation capability in manufacture. In light of such strategy, especially 
its second gu iding principle ( "quality first "), how China plans to fulfill such target maintaining a 
healthy and efficient patent national system and at the same time avoiding, for example, patent 
trolling/hoarding and frivolous patent requests?  
Reply  
State Intellectual Property Office has taken a number of measures to reduce the time for patent 
approval. The first is to continue to expand the patent examination team. The second is to continue 
to improve the construction of information system. The State Intel lectual Property Office has 
established electronic application system, patent approval system, intelligent review system, 
retrieval system and case source management system and other operation systems and realized 
paperless and intelligent management durin g the whole process. The third is to strengthen the 
refinement management during the examination process, monitor and manage each process of 
invention patent application, including application, acceptance, primary examination, classification, 
intermediate file processing, substantive review and other links and include examination period of 
each link in the annual examination work schedule. The fourth is to continue to explore innovative 
examination mode. Modes such as prioritized examination, tour review an d centralized review have 
been explored and employed. Rapid protection mechanism has been coordinated and promoted at 
the same time. With establishment of intellectual property protection centres in areas with ripe 
conditions, rapid review, rapid confirmat ion and rapid rights protection can be integrated and more 
rapid and efficient intellectual property protection and services for innovative subjects can be 
provided.  
Meanwhile, in order to avoid the infringement of abnormal patent application behaviours, t he State 
Intellectual Property Office issued the  Regulations about Patent Applications Behaviours  in 2007 as 
the policy basis of investigating abnormal patent application behaviours and amended the 
regulations in 2017.  WT/TPR/M/3 75/Add.1  
 
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  Pages 97 and 98 , paragraph 3.224  
China is a member of the World Intellectual Property Organization (WIPO), and participates in a 
number of international conventions and treaties related to intellectual property rights (Table 3.25).  
63.  China signed the WIPO Marrakesh Treaty to Facilitate Ac cess to Published Works for Persons 
Who Are Blind, Visually Impaired or Otherwise Print Disabled in 28 June 2013. China also signed the 
Singapore Treaty on the Law of Trademarks in 29 January 2007. What are the prospects for 
ratification of these Treaties?   
Reply  
The Chinese side has always been attaching great importance to the development of the  Singapore 
Trademark Law Treaty  and carried out relevant research about it. Currently, we are uncertain if 
China will join the Singapore Trademark Law Treaty.  
About the Marrakesh Treaty , China sig ned the Marrakesh Treaty to Facilitate Access to Published 
Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled on 28 June 2013. 
In accordance with regulations of  the Procedural Law on Conclusio n of Treaties , the Chinese 
government still has to perform relevant procedures and report to the Standing Committee of the 
National People's Congress to ratify and validate the treaty.  
3.3.7.2 Industry property , 3.3.7.2.2 Trademarks , page 101 , paragraph  3.236  
Registration with the TMO is a prerequisite for protection under the Trademark Law. Foreign 
applicants must file applications on the basis of reciprocity between their country of origin and China, 
or of any international treaty to which both are part ies unless an agreement has been concluded 
between their country of origin and China. Registration may be rejected if the mark involves a copy, 
imitation, or translation of well -known brands that have not been registered in China for the same 
or similar go ods and services, or if the mark involves a copy, imitation, or translation of well -known 
brands that have been registered in China for goods and services that are not deemed identical or 
similar to the goods and services in question.  
Question  
64.  Accord ing to Paragraph 3.236, "prior right -holders or relevant stakeholders have a five -year 
period to contest the registration of a trademark and request its revocation to the Trademark Review 
and Adjudication Board. This timeframe limitation does not apply in cases of abusive registration ". 
Could you elaborate on the meaning of "abusive registration ." Does abusive registration encompass 
"trademark squatting "? Could China provide more examples on trademarks "abusive registration "? 
Reply  
According to Article 45 of the  Trademark Law , the announcement about the invalid registered 
trademark of another party according to related reasons should be filed within five years after 
registration of the trademark. Where an abusive registration was obtained, the owner of a we ll-
known trademark shall not be bound by the five -year limitation. The regulation has specified 
conditions without restrictions of time for filing announcement about the invalid registered 
trademarks: 1. the registered trademark is abusive; 2. the referenc e trademark is a renowned 
trademark; 3. the announcement applicant is the owner of a renowned reference trademark. The 
above -mentioned conditions shall be met at the same time, not just "abusive registration" only. An 
announcement involving invalid tradema rk satisfying the above -mentioned conditions is free of 
restrictions of time.  
The "malicious registration" mentioned in Article 45 of the Trademark Law  refers to registrations of 
another party's trademark that the applicant is apparently aware of or shoul d have understood; for 
instance, the situation in which the trademark applicant would have learned about the trademark 
owing to its trading relations with the reference trademark registrant and then registered the 
trademark in China can be considered as ab usive registration. However, the act of registering a large 
number of trademarks without using them shall be considered as improper occupancy of public WT/TPR/M/3 75/Add.1  
 
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  resources, disruption of order of trademark registration and management and damage to public 
interests. Such act shall be regulated according to Section 1, Article 44 of the Trademark Law.  
Paragraph 3.239  
Trademark protection in e -commerce is granted through a number of circulars or other type of 
measures.  
Question  
65.  In general, what is the legal framewo rk for the resolution of disputes between a domain name 
registrant and a third party (i.e., a party other than the registrar) over the abusive registration and 
use of an Internet domain name in the generic top -level domains?  
Reply  
As for disputes due to abusive registration in generic top -level domains, they shall be settled by 
dispute settlement service department approved by Internet Corporation for Assigned Names and 
Numbers (ICANN) in accordance with the Uniform Domain Name Disp ute Resolution Policy . 
The legal basis used for the Internet domain name in the generic top -level domain is the  
Management Methods for Internet Domain Name issued by the Ministry of Industry and Information 
Technology.  
Page 102 , paragraph  3.241  
Article 13 of the Trademark Law provides that the holder of a trademark well known by the relevant 
public may file a request for its protection under the Law if he/she believes that there is any 
infringement. According to the authorities, in accordance wit h the Law, "cross -class protection" may 
be provided for relevant goods and services for well -known trademarks registered in China.  
Question  
66.  According to paragraph 3.241, "if a trademark not registered in China is a well -known one, 
protection may be pr ovided to similar goods ". What are the situations when protection is provided 
to similar goods? Could China provide examples from case law?  
Reply  
Baoding Tianwei Group Co., Ltd. raised an objection on No.  4455972 Tianwei and Drawing trademark 
of Shanghai Tianwei Electric Co., Ltd. examined and issued preliminary by the trademark office on 
3 January 2008. The Trademark Office made the following adjudications: the opponent in this case 
asked for firmly affirmation of previously used TIANWEI trademark on the transformer commodity 
as a well -known trademark and provided the relevant evidence. The evidence provided by the 
opponent indicated that, the reference trademark has been generally known by the relevant public 
and enjoyed high reputation after such referen ce trademark was widely propagated and actually 
used. According to provisions of Article 14 of the Trademark Law , the Trademark Office firmly 
believed that the TIANWE trademark on the "transformer"  commodity used by the opponent is a 
well-known trademark. The contentious trademark TIANWEI and DRAWING is the same as 
trademark text provided by the opponent. The copy, imitation, registration and use of the opponents 
well-known trademark on the "transformer" and same or similar commodities will easily mislead t he 
public and result in the damage to opponents benefits.  
The Trademark Office adjudicated that the reasons of objection suggested by the opponent are 
tenable and the application for registration of No. 4455972 TIANWEI and DRAWING trademark used 
on the cap acitor, pottery filter, socket, plug and other connectors (connection of electric appliance), 
connector for electric appliance and transformer commodities will not be approved and the 
application for registration on other commodities will be approved, in a ccordance with provisions of 
Section 1, Article 13 and Article 33 of the Trademark Law of the People's Republic of China .  WT/TPR/M/3 75/Add.1  
 
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  3.3.7.2.3 Geographical indications , pages 102 and 103 , paragraph 3.244  
In addition to the General Provisions of Civil Law, SAIC, AQSIQ and the Ministry of Agriculture provide 
protections for GIs of different types under their respective laws and regulations.145 SAIC protects 
GIs in the form of collective marks and certification marks in accordance with the Trademark Law, 
the Impleme nting Regulations of the Trademark Law, and Procedures for the Registration and 
Administration of Collective Marks and Certification Marks.146 AQSIQ provides protection of 
GI products in accordance with the Provisions on the Protection of Geographical Indi cation 
Products147 and Implementing Rules for the Protection of Geographical Indication Products.148 The 
GIs of agricultural products may be registered at the Ministry of Agriculture in accordance with the 
Measures on the Administration of Geographical Ind ications of Agricultural Products.149 
Paragraph 3.246  
Since 2016, in order to implement the Opinions of the State Commission Office of Public Sectors 
Reform on Perfecting the GI Protection and Administration Regime, SAIC has undertaken relevant 
research, c onvened industry -wide coordination meetings and consulted with other competent 
authorities including the Ministry of Agriculture and the AQSIQ to discuss and establish a joint 
GI certification mechanism.  
Question  
67.  Could you clarify whether producers of  agricultural products from foreign countries seeking 
"sui generis " protection for GIs should register at the recently created institution that replaced AQSIQ 
or at the Ministry of Agriculture?  
Reply  
Since the institutional reform in China has not been completed, the agricultural producers in foreign 
countries now can apply for registration from the Ministry of Agriculture or the State Intellectual 
Property Bureau.  
Page 103 , paragraph 3.245  
On 28 Marc h 2016, AQSIQ promulgated Measures for the Protection of Foreign Geographical 
Indications (Measures) on 28 March 2016150, with a view to enhancing the protection and 
management of foreign geographical indications. The Measures regulate, inter alia , the app lication, 
examination and revocation of foreign GIs seeking protection in China. The protection of GIs is 
granted on the basis of reciprocity, i.e. to products that originate from a country that has established 
the corresponding communicative and cooperati ve relationship with China.151 AQSIQ also issued 
Special Action Plans for the Protection and Quality Enhancement of National Geographic Indications, 
with the aim of improving GI protection and promoting cross -regional and international 
cooperation.152 
Ques tion 
68.  How many countries have established a "communicative and cooperative relationship " towards 
reciprocal protection of GIs with China? Could you provide a list of the countries? What are the 
criteria used to determine whether a country has establish ed a "communicative and cooperative 
relationship " with China?  
Reply  
China has built exchange and cooperation relationship of geographical indication with unions and 
countries such as Europe Union, France, Mexico and Thailand; both parties have signed bila teral 
memos about the exchange and cooperation in relevant field of geographical indication.  
3.3.7.3 Copyright and related rights,  page 104 , paragraph  3.250  
The procedure of application under the Copyright Law has remained unchanged since the previous 
review of China. The term of copyright protection for natural persons as well as certain works156 is WT/TPR/M/3 75/Add.1  
 
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  life plus 50 years.157 Software copyright exists from the date on which its development is completed. 
The term of protection for typographical designs is ten years.  
Question  
69.  Are there any plans to extend the term of copyright protection beyond the minimum stipulated 
in the TRIPS Agreement?  
Reply  
At present, China has no plan or arrangement to prolong the duration of copyright protection.  
Page 104 , paragraph 3.253  
As of January 2018, there were five collective copyright management organizations in China160, 
among which the Images Copyright Society of China is the largest one (by number of members) 
with more than 14,000 members. In 2017, the Music Copyright Society of China, with 
8,907  members, received the highest annual income (licensing revenue) of RMB 200 million, 
followed by China Audio -Video Copyright Association, with 177 members, which collected about 
RMB 186 million. The China Written Works  Copyright Society, with more than 9,260 members, 
received RMB  5.2 million of royalties for written works in 2017, and the China Film Copyright 
Association with 86 members, registered an annual income of RMB 160,000 in 2016.  
Question  
70.  What is the role of collective management societies in China in the licensing of rights in the 
digital environment? Do they collect remuneration related to streaming of content?  
Reply  
Copyright owners, as individuals, are relatively weaker in safeguarding rights. It is dif ficult to 
manage their own works effectively by themselves alone, especially in digital environment along 
with the advent of new media. Such environment and media have posed a severe challenge to mass 
digital works and their legal and convenient licen ce. Collective management organization for 
copyright gives full play of its centralized industry management advantage and builds a smooth and 
convenient bridge between copyright owners and users of mass works. Therefore, the rights and 
interests of copyright ow ners are safeguarded effectively and balance of interests is realized between 
copyright owners and users.  
Music Copyright Society of China is now the only collective management organization for music 
copyright in Mainland China. It specializes in safeguard ing the legitimate rights and interests of 
copyright owners of songs and lyrics and charges a corresponding licensing fee for songs and lyrics 
managed by it and used by music streaming platforms.  
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries , 4.1.3 Policy instruments, 4.1.3.1 Border 
measures, 4.1.3.1.1  Measures affecting imports , page 115, paragraph 4.10  
The NDRC is responsible for allocating TRQs for grains and cotton, and MOFCOM allocates the rest. 
Some products subject to TRQs (i. e. grains, cotton, and sugar) are also subject to state trading. In 
these cases, one part of the quota is allocated to state -trading enterprises and the other part to 
other enterprises. The administration methods of the TRQs as described by China in its no tification 
to the WTO (MA:1 G/AG/N/CHN/2) have remained unchanged.  
Question  
71. China currently operates a tariff -rate quota for sugar of 1,945,000 tonnes, covering raw and 
refined sugar. Could China confirm the HS numbers for the products subject to this TRQ? WT/TPR/M/3 75/Add.1  
 
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  Reply  
See the following for details.  
Question  
72. Although the TRQ covers both raw and refined sugar, are in -quota amounts mainly allocated 
to higher -priced refined sugars? Could China please describe the type of sugar (raw and/or refined, 
by HS num ber) imported both at the in -quota and out -of-quota rate for the last five years for which 
statistics are available?  
Reply  
See the following for details.  
Question  
73.  Concerning the allocation of the 1.95 million tonnes of sugar by type of recipient:  
a. What percentage of the quota is reserved for State -Trading Enterprises (STEs)? Which 
STEs receive an allocation, and in what amount?  
b. What allocations are made to non -STEs for the importation of sugar, and in what 
amount?  
Reply  
See the following for details.  
Question  
74. Could China please inform the fill rates for the sugar TRQ on the last five years for which 
statistics are available?  
Reply  
See the following for details.  
Question  
75. Does China plan to update its administration methods for sugar TRQs, in order to increase 
predictability and transparency in the process?  
Reply  
(71-75) According to Tariff Adjustment Program 2018 , the tax IDs of sugar products involved in 
tariff-rate quota management are 17011200, 170 11300, 17011400, 17019100, 17019910, 
17019920 and 17019990.  
Allocation of tariff quota shall take into account in both domestic sugar processing capacity and the 
structure of supply and demand. At present, out -of-quota import statistics and in -quota import  
statistics cannot be distinguished. According to the commitment of joining, 70% of sugar tariff quota 
is allocated to state trading enterprises and 30% to non -state trading enterprises. In recent years, 
China has been reporting the sugar import quantity a nd quota completion rate of each year. China 
has managed import tariff quotas for agricultural products according to the commitment made when 
joining the WTO and publicizes implementation rules such as the total amount of tariff quotas, 
application conditi ons, distribution principle and duration of implementation for next year in late 
September of each year according to Interim Measures for the Administration of Import Tariff Quotas 
for Agricultural Products. Q uotas of the whole year are issued to enterpris es at the start of a year. 
All of such acts have shown the transparency, consistency and predictability remained in policies.  WT/TPR/M/3 75/Add.1  
 
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  4.1.3.2 Internal measures, 4.1.3.2.2 Price controls and market price support systems , 
page 124 , paragraph  4.31 
It has been reported that relatively high levels of domestic production, imports and the operation of 
minimum purchase price and inventory systems resulted in significant stockpiles of some products 
(Chart 4.3). The wheat stockpile was estimated to have reached 111 mi llion tonnes, and the milled 
rice stockpile, 86.5 million tonnes, at the start of the 2017/18 marketing year. On the other hand, 
the stockpiles of cotton and maize have declined from the peaks in 2015/16 and 2016/17,  
respectively.23 Furthermore, the minimu m support prices for rice and wheat have been reduced, 
while the reform of the systems of collection, storage, and price -formation of agricultural products 
will continue.24 
Question  
76. What are the policies implemented by China to regulate and manage the current level of 
stockpiles of agricultural commodities?  
Reply  
Collection & storage of agricultural products mainly aim to stabilize the market supply and demand, 
respond to natural disasters and emergencies and ensure the national food safety and the li velihood 
safety of peasants. Departments concerned shall determine the scale, breed structure and regional 
layout of collection & storage based on the production, consumption, circulation, processing and 
warehousing capacities etc. of relevant products, an d make adjustments in due time. For cotton, 
maize and soybean, China has already made a market -oriented reform in policies regarding 
collection & storage. At present, relevant products are collected and stored according to market 
prices and the government will offer income subsidies at a proper level based on peasants income. 
For wheat and rice, the reform in its collection & storage system and price -formation mechanism is 
also being carried forward in the market -oriented direction.  
Question  
77. Are there possible mechanisms in place for ensuring that these significant levels of stockpiles, 
upon release in the market, do not affect international prices and trade?  
Reply  
According to relevant provisions, the competent authorities will sell grain inventory, t hrough open 
bidding, on the National Grain Trade Centre. During auction, the competent authorities will 
reasonably control the sale pace and quantity so that the auction of grain inventory can not only 
meet enterprises demand but also keep the stability of  market prices to minimize the adverse effect 
on domestic production and imports.  
4.1.3.3 Levels of support , 4.1.3.3.1 WTO notifications , page 126 , paragraph  4.35 
The most recent notification on domestic support from China covered the calendar years 2009 and 
2010.27 This notification showed no support under the Blue Box (production limiting programmes), 
and that support notified under the Green Box had fallen to RMB 534 billion from a peak of 
RMB 593 billion in 2008 (Chart 4.4). General services were the b iggest category of support, 
representing between 47% and 61% of total support notified under the Green Box, and under 
general services, infrastructure services was the biggest category of support.  
Question  
78. When does China plan to submit its notifications for calendar years after 2010?  
Reply  
The domestic support notification will be submitted as soon as possible.  WT/TPR/M/3 75/Add.1  
 
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  Question  
79. What is the evaluation of the current trend for domestic support on the last calendar years?  
Reply  
Taking into accou nt the need for maintaining food security and livelihood  security for hundreds of 
millions of small  household  farmers, China has been strengthening the support to agriculture in the 
past decade. Meanwhile, China is pushing forward the market -oriented reform on agricultural policies, 
with the aim to improve the system for supporting agriculture by allowing the market mechanism to 
play a more important role in the allocation of factors of production.  
Question  
80. Does China believe that support under the  Amber Box is still rising?  
Reply  
The strengthening of support for agriculture doesn 't necessarily mean the increase in the level of 
amber box support. With the significant change in the support policies for cotton, corn, and the 
decrease of minimum proc urement prices for rice and wheat, the total amount of amber box support 
might be reduced to certain extent. The actual level of support will be reflected in the domestic 
support notification to be submitted soon.  
Question  
81. How does China understand tha t the current level of expenditures on domestic support, 
associated with the trend of rising support under the Amber Box meets the expectations of 
addressing multilaterally the imbalances in agricultural trade?  
Reply  
As explained above, the level of amber box support may not be rising simultaneously with the 
increase in expenditure on domestic support. What 's more, since the imbalances with respect to the 
entitlements to provide amber box support resulted from the Uruguay Round negotiations, and were 
embedd ed in the legal commitments contained in Members  schedule of concessions, it is only fair 
for Members with AMS commitment to eliminate this extra part of policy space before they ask 
developing Members without AMS commitment to consider further restricting  their supports, which 
are generally below the de minimis  level.  
 
  WT/TPR/M/3 75/Add.1  
 
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  BRAZIL – BATCH  2 
Report by the Secretariat  - WT/TPR/ S/375  
SUMMARY  
Page 9, paragraphs 1 and 2  
Question  
a. Could China clarify which measures were introduced to address the issues of "excess capacity 
in some energy and manufacturing sectors"?  
Reply  
Steel excess capacity is a global issue. China has attached great importance, proactively put the 
consensuses reached on the G20 Hangzhou Summit and Hamburg Summit, and taken practical 
measures to relief the challenge of steel excess capacity. According to the overall deployment of 
China's steel excess capacity, China began to take five years to reduce the capacity of crude steel 
by 100 million to 150 million tonnes since 2016, has set up an inter -ministerial joint meeting system 
to eliminate backward production capacity and clean up illegal projects, and has joined hands with 
others to jointly implement three special programmes. In the meantime, China has proactively 
promoted the elimination of exce ss capacity by means of marketization and legalization, and has 
reduced the production capacity of crude steel by more than 120 million tonnes in total.  
Question  
b. Could China provide an assessment of the results of the reform of SOEs, as regards their 
participation in the absorption of total social credit and the industrial output?  
Reply  
Please see the report by the secretariat and policy statement.  
Question  
c. How the Chinese authorities evaluate the outcomes of financial sector reform, namely the 
increase of  private capital participation in banking?  
Reply  
The Chinese government guides the organized and orderly participation of private capital in banking 
financial institutions through initiation and establishment, subscription of new shares, transfer of 
equity, M&A and restructuring. The principle of fair competition and equal treatment is always 
adhered to for all types of capital, including private capital,  becom ing a shareholder  of banking 
financial institutions. In recent years, Chinese regulators have steadily promoted the establishment 
of private banks and orderly advanced their normal development; supported private capital's 
participation in the restructuring and transformation of city commercial banks and small - and 
medium -sized rural financial institutions; supported the qualified private capital to establish 
consumer finance compan ies, financial leasing compan ies, finance compan ies of enterprise group s 
and automobile finance c ompan ies and to take part in the establishment of village banks. As of the 
end of 2017, 17 private banks had been approved to start business; private capital had accounted 
for over 40% in the equity structure of joint -stock banks, over 50% of the total equ ity of city 
commercial banks, over 80% of the equity of rural cooperative financial institutions and about 70% 
of the equity of village banks; the proportion of trust companies with private capital had exceeded 
50%, and the proportion of non -banking financ ial institutions (excluding trust companies) with 
private capital had been about 30%.  
d. Could China list and assess the measures taken in order to make "the exchange rate and 
interest rate more market -oriented"?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
1.  Interest rate liberalization  
PBOC s tably pushes forward the reform of interest rate liberalization. First, interest rate control is 
basically liberalized. In July 2013 and October 2015, the loan interest rate and deposit interest rate 
were liberalized respectively. Second, the Central Bank' s ability to regulate interest rates has been 
gradually strengthened. The Central Bank has placed its focus on guiding short -end interest rates, 
exploring the construction of interest rate corridor mechanism, continued to operate on the 7 -day 
repo rate and  release policy signals, with the efficiency of its regulation on market interest rate  and 
corresponding transmission efficiency significantly improved. Third, the benchmark interest rate 
system is gradually improved. In January 2007 and October 2013, Shan ghai Interbank Offering Rate 
(Shibor) and Loan Prime Rate (LPR) quotation mechanisms were established respectively. Fourth, 
the market interest rate pricing self -regulatory mechanism is established. On 24 September 2013, 
the self -regulation mechanism of ma rket interest rate pricing was formally established, which played 
an important incentive and restraint role in improving the self -pricing ability of financial institutions 
and maintaining the order of financial markets.  
2.  Exchange rate liberalization  
PBOC stably pushes forward the reform of exchange rate liberalization. First, on 11 August 2015, 
the PBOC announced the improvement of its RMB -USD intermediate price quotation mechanism, 
emphasizing that the RMB -USD intermediate price quotation should refer t o the closing exchange 
rate of the previous day to  fully reflect the changes in market supply and demand. Second, on 
11 December 2015, China Foreign Exchange Trade System issued RMB exchange rate index to guide 
the market to shift the angle of view of RMB exchange rate from bilateral exchange rate to effective 
exchange rate, emphasizing the need to increase the strength of reference to a basket of currencies. 
Third,  the mechanism of adjustment is further improved based on market supply and demand by 
referen ce to a basket of currencies, and the mechanism for formation of the intermediate price of 
RMB against the US dollar with "closing exchange rate + exchange rate change of a basket of 
currencies" has been formed.  
Question  
e. Could China provide an assessment o f the measures taken to address financial sector risks, 
in special as regards deleveraging and shadow banking?  
Reply  
Reducing the leverage ratio of enterprises is one of the key tasks of structural reform on the supply 
side. According to the Opinions on actively and steadily Reducing Enterprise Leverage Rate  issued 
in 2016, relevant departments and market bodies adopt seven comprehensive measures to actively 
and steadily promote the reduction of enterprise leverage rate, including promoting merger and 
reorganization, perfecting modern enterprise system, strengthening self -restraint, optimizing debt 
structure and bankruptcy according to law, etc.  
Page 9, paragraph 3  
Question  
Could China detail the counter -cyclical factor employed in the definition of the exchange rate?  
Reply  
It is of great significance for further optimization and perfection of the formation mechanism of RMB 
exchange rate marketization to introduce "counter -cyclical factor" in the intermediate price quotation 
model. First,  the intermediat e price can better reflect the macroeconomic fundamentals. Second, it 
helps to hedge the cyclical fluctuations in the foreign exchange market, thus making the intermediate 
price fully reflect reasonable changes in market supply and demand. Third, the perfe cted 
intermediate price quotation mechanism maintains a higher regularity and transparency.  WT/TPR/M/3 75/Add.1  
 
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  Page 9, paragraph 4  
Question  
Does the fiscal deficit mentioned in this paragraph include subnational political entities (provinces 
and local governments), as well a s the SOEs? If not, could China provide an aggregate number?  
Reply  
According to  budget laws, etc. in China, China's fiscal deficit includes the local government deficits, 
but excludes  debts of state -owned enterprises. Take 2018 as an example, the national fiscal deficit 
of China is RMB 2.38 trillion, including RMB 1.55 trillion fiscal deficits of the Central Government and 
RMB 830 billion fiscal deficits of  local governments.  
Page 10, paragraph 10  
Question  
a. In 2017, China published a revision of the Guidance  of Foreign Investment (Investment 
Catalogue). In order to better understand what the changes vis-à-vis the 2015 version mean 
in terms of market access, could China provide more details on the policies in place to guide 
FDI into the "encouraged" sectors?  
Reply  
The Chinese government has listed industries regarding advanced manufacturing, high -tech, energy 
conservation and environmental protection and modern services into the "encouraged" foreign 
investment items. The number of encouraged items has increas e by six compared with that in 2015. 
The foreign -invested enterprises engaging in the encouraged foreign investment items included in 
the Catalogue of Industries for the Guidance of Foreign Investment (2017 Revision)  are exempt from 
tariff when importing s elf-use devices within the aggregate investment.  
Question  
b. Are the types of measures that are addressed by the market access negative list the same as 
those listed, for instance, in GATS Article XVI?  
Reply  
China's accession commitments made as per Article XVI of GATS are positive lists, while the negative 
lists for market access are negative ones. See schedule for specific commitments made by China to 
access to WTO.  
Question  
c. The Secretariat states that "Foreign -invested projects (FIPs) in China are subjected to 
approval or to record -filing. Projects subject to approval are listed in a specific catalogue, 
while most projects not included in it are subject to record -filing. Approval requires the 
examination of the investment project, and a number of co nditions must be met".  
Could China provide the specific catalogue and the list of the conditions that must be met?  
Reply  
In principle, for any other fields not included in Special Administrative Measures for Foreign 
Investment Access to Pilot Free Trade Zones (PFTZs Negative List) (2018 version), foreign 
investments shall be subject to record -filing administration.  WT/TPR/M/3 75/Add.1  
 
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  Page 11, paragraph 15  
Question  
According to the text, "there have been no major changes in the application procedures and terms 
of import lice nces since China's previous Review". In what concerns the sales of commercial aircrafts 
to China, please provide the following clarifications:  
a. What are the applicable licensing procedures?  
b. Please provide a list of the regulatory procedures involved in the sale of commercial aircrafts 
to China.  
c. Are the buyer and/or the seller required to submit the purchase contract for approval by the 
sector regulator?  
d. How can the buyer and/or the seller prove that the purchase contract has been submitted for 
approval by th e sector regulator? Is the regulatory authority obliged to issue any sort of 
documentation attesting the contract has been submitted for approval? Is this a numbered 
document?  
e. What is the role of the National Development and Reform Commission in the sale o f 
commercial aircrafts to China?  
f. Are the buyer and/or the seller required to submit the purchase contract for approval by the 
NDRC?  
g. How can the buyer and/or the seller prove that the contract has been submitted for approval 
by the NDRC? Is the regulatory a uthority obliged to issue any sort of documentation attesting 
the purchase contract has been submitted for approval? Is this a numbered document?  
h. How can the seller follow up on the progress of the approval procedures of the purchase 
contract? Is there an online system in place where such information can be found?  
i. How are such additional requirements involved in the purchase of commercial aircrafts by 
Chinese airlines compatible with the provisions of the GATT?  
Reply a .-i. 
Application to competent commerce department for the automatic import licensing of imported 
aircraft is required, and customs formalities shall be handled with the Automatic Import Licence of 
the People's Republic of China. In addition, application to NDRC and CAAC for handling relevant 
formalities is required for importing certain aircrafts. When fulfilling the automatic import licensing 
procedures, the importing unit shall submit the purchase contract to the competent commerce 
department in accordance with relevant regulations. Neither ne ed the importing unit to prove that 
the contract has been submitted to the industry regulatory authorities for approval, nor need the 
regulatory body to prove that the contract has been submitted for approval. The automatic import 
discipline issuing system  of the competent commerce department is a real -time online system on 
which the importing unit can apply and check the progress at any time. The automatic import 
licensing procedures are set pursuant to relevant laws and regulations including the Foreign T rade 
Law, and are consistent with WTO's Agreement on Import Licensing Procedures.  
CAAC is mainly responsible for the aviation safety supervision and control over the introduction of 
aircrafts by airlines, and shall examine and verify the strength of the pe rsonnel and fleet of airlines 
proposing to introduce the aircraft and the implementation of fleet planning, etc. before reporting to 
the NDRC for approval. During the review, neither the buyer nor the seller needs to submit the 
purchase contract. NDRC shal l coordinate with the construction of the comprehensive transportation 
system, meet the needs for aviation transport development, optimize the fleet structure, and fulfill 
its supervisory duties.  
Page 11, paragraph 19  
Question  
Could China provide details of the main beneficiaries of the activities of the China Export -Import 
Bank (China Eximbank), as it did in the last Review?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Do not understand what the "main beneficiaries" mean s here. 
Question  
We would appreciate if China could give more details abo ut the distribution of the support offered 
by the China Export and Credit Insurance Corporation (SINOSURE) to different sectors of the Chinese 
economy.  
Reply  
China has no such data temporarily.  
Question  
Could China give more details on how the policy of E ximbank relates to the Central Government and 
Sub-Central level Five -year Plans?  
Reply  
The Export -Import Bank of China abides by relevant laws and regulations and accepts the 
supervision and management of relevant government authorities.  
Question  
Could China provide, for this review, the average lending rate of commercial banks to state -owned 
enterprises?  
Reply  
China has no such statistics temporarily.  
Question  
What are the factors taken into account in setting the lending rates?  
Reply  
In recent years,  as the reform of interest rate liberalization advances, China's regulation over interest 
rate has been liberalized. The financial institutions independently determine the loan interest rate 
level according to the principle of income -over-cost by comprehen sively considering such factors as 
capital cost, management cost and risk premium.  
Question  
Is there any difference in the interest rates offered to SOEs and private enterprises?  
Reply  
It is understood that the commercial banks don't apply different polic ies for the state -owned 
enterprises and private enterprises in determination of loan interest rate.  
Page 13, paragraph 32  
Question  
Could China provide an assessment of foreign -invested enterprises participation in the "China 
Manufacturing 2025"?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The relevant policies of "Made in China 2025" are applicable to all market actors within China. The 
Notice of the State Council on Several Measures for Expanding the Opening Up to the World and 
Vigorously Utilizing Foreign Investment  of January 2017 pointe d out clearly that the strategic policies 
and measures of "Made in China 2025" are equally applicable to foreign -invested and Chinese -
invested enterprises. In November of the same year, the Circular of the General Office of the State 
Council on Building th e "Made in China 2025" National Demonstration Zones  also emphasized that 
all central and local policies for supporting the building of demonstration zones equally and fairly 
treat all types of enterprises within China. Relevant policies of "Made in China 2 025" are published 
on the official websites of relevant government departments, and the same supports are provided 
for the qualified foreign -invested enterprises as well. In practice, we actively support foreign -
invested enterprises to take part in the imp lementation and pilot demonstration of key "Made in 
China 2025" projects. For example, in the establishment of the manufacturing innovation center, 
the National Power Battery Innovation Center and the University of Western Ontario in Canada have 
set up a j oint laboratory, and the National Innovation Alliance of Additive Manufacturing had had 
three overseas members. In terms of intelligent manufacturing, the "intelligent ship manufacturing 
workshop pilot demonstration" of Nantong COSCO KHI Ship Engineering C o., Ltd. has been listed as 
an intelligent manufacturing pilot demonstration project. In terms of quality brand building, Xiamen 
ABB Switch Co., Ltd., SAIC -GM-Wuling Automobile , Zhuhai Rossini Watch Industry Co, Ltd. and 
other foreign -invested enterprises have won the honor  of "Quality Benchmark".  
Question  
What are the China's SOEs roles within the industrial and innovation policies?  
Reply  
China has implemented the policy of "separation of governments and enterprises". That is, the state -
owned enterprises are independent market subjects that can make independent decisions according 
to law, and the governments do  not participate in the decision -making of state -owned enterprises. 
At the same time, SASAC is a direct organization to fulfill the duties of contri butor, but does not 
exercise the public management functions of the government. Meanwhile, it exercise s the rights of 
contributor through shareholder meeting or general meeting of shareholders in accordance with laws 
and regulations such as the Law on Stat e-owned Assets of Enterprises  and the Provisional 
Regulations on Supervision and Management of State -owned Assets of Enterprises , without 
interference in the independent operation of enterprises according to law.  
Question  
Could you describe the general gov ernance framework of the Chinese SOEs, in particular the 
participation of governmental authorities in their decision -making  processes?  
Reply  
Please refer to the policy statement submitted by the Chinese government.  
Question  
Could the Chinese authorities p rovide the list of policies "introduced to promote the development of, 
for example, new energy vehicles, integrated circuits, and robotics"?  
Reply  
The target of China's industrial policy covers all kinds of market subjects, including enterprise under 
collective ownership. These market subjects participate in market competition equally and obtain 
factor resources fairly, and are all important forces to promote China's industrial transformation and 
upgrading. In the meantime, they also share the achievements  of China's economic and social 
development.  WT/TPR/M/3 75/Add.1  
 
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  Question  
What are the efforts made to address the issue of "excess capacity in some manufacturing sectors, 
such as iron and steel"?  
Reply  
Steel excess capacity is a global issue. China has attached great importance, proactively put the 
consensuses reached on the G20 Hangzhou Summit and Hamburg Summit, and taken practical 
measures to relief the challenge of steel excess capacity. According to the overall deployment of 
China's steel excess capacity, China be gan to take five years to reduce the capacity of crude steel 
by 100 million to 150 million tonnes since 2016, has set up an inter -ministerial joint meeting system 
to eliminate backward production capacity and clean up illegal projects, and has joined hands  with 
others to jointly implement three special programmes. In the meantime, China has proactively 
promoted the elimination of excess capacity by means of marketization and legalization, and has 
reduced the production capacity of crude steel by more than 1 20 million tonnes in total.  
Page 13, paragraph 34  
Question  
Could China assess the outcomes of the measures adopted to ease "approval requirements for 
foreign -owned banks to supply certain investment banking services in the country and to invest in 
domestic  banking institutions"?  
Reply  
This policy was just enacted in 2017, so it is impossible to assess the outcomes of the measures.  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments, p age 15, paragraph 1.2  
Question  
Could you comment on the trajectory of  the economy's general level of indebtedness, in all its 
components (government, households, financial and non -financial corporations)?  
Reply  
At the end of 2017, the actual balance of government bond was RMB 13.4770.15 trillion, including 
RMB 13.3447.43 trillion of internal debts and RMB 132.272 billion  of external debts, which was 
controlled within the limit of RMB 14.1408.35 trillion approved by the National People's Congress. 
At the end of 2017, the actual balance of government bond  accounted for 16.3%  of GDP, a relatively 
low level compared with that in such developed countries  as Europe, America and Japan.  
Page 17 -18, paragraph 1.5  
Question  
The report states: "The Government disagrees with this viewpoint and maintains that the law 
provides for equal t reatment and protection of market players. Furthermore, with regard to subsidy 
programmes, the authorities state that all enterprises, regardless of ownership, are treated equally 
and that there are no specific subsidies to SOEs; all enterprises are entitl ed to receive subsidies if 
certain requirements are met ." 
Question  
Could China enumerate which "requirements" they refer to?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please refer to the notifications on  subsidies submitted by China.  
Question  
Could China provide detailed information on the average interest rate offered by state -owned 
financial institutions to SOEs, private enterprises and foreign -invested enterprises?  
Reply  
China has no relevant statistics temporarily.  
Question  
Could China  provide evidence of the deleverage process, in spec ial as regards the SOEs?  
Reply  
China's macro leverage rate has slowed, with an indication of stabilization. According to BIS's data, 
China's macro leverage rate remained stable in 2017, with a rise of 0.4%, down 11.6% compared 
with that in previous year.  
1.2.1 Monetary and exchange policy , 1.2.1.1 Monetary policy , page 19, paragraphs 1.9 
and 1.10  
Question  
How does China assess the compatibility of the following paragraphs: "Starting in 2016, the POBC 
moved to a more market -based approach of conducting monetary policy" (1.9) and "Major monetary 
policy decisions on benchmark lending and deposit rates continue to go through the State Council; 
rates on money market instruments such as repos and SLFs are set by the POBC" (1.10)?  
Reply  
After the release of in terest rate control in 2015, the benchmark interest rate of deposit and loan 
still plays an important role in the pricing process of financial institutions. At present, financial 
institutions can refer to the benchmark interest rate, and make their own and  reasonable pricing 
according to the marketization principle. Since 2016, PBOC has further improved the open market 
operation mechanism, conducted the open market operation on a daily basis focusing on 7 -day 
reverse repo, continuously released the interest  rate by the Central Bank,  linked the interest rates 
of monetary policy instruments such as standing loan facilities with the open market operation 
interest rates, and strengthened the role of open market operation interest rate in monetary policy 
control,  so as to create conditions for exploring the establishment of the central bank policy interest 
rate system and improving the efficiency of interest rate transmission.  
Among them, PBOC's interest rate for reverse repo operation in the open market is determ ined from 
the bidding of the Central Bank and tendering of class -1 traders, and is the result of market bidding.  
1.2.2 Fiscal policy and reform , page 22, paragraph 1.23  
Question  
Could China please provide an actual assessment of the implementation of the G uidance on 
Promoting the Reform of the Distribution of Fiscal Power and Duties of Expenditure between Central 
and Local Governments?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
In accordance with the requirements of the Guidance, financial department at all levels have actively 
promoted reform  and made phased progress. First,  breakthrough has been made in the division of 
common financial responsibilities and expenditure responsibilities in the field of basic public services. 
Second, the division of financial responsibilities and expenditure res ponsibilities in different areas 
has been  promoted in an orderly manner. Third, the division of financial responsibilities and 
expenditure responsibilities under the provincial level has been steadily promoted.  
Page 22, paragraph 1.25  
Question  
Could China inform how many of the LGFV projects were commercial and backed by real assets as 
a proportion of the total of projects?  
Reply  
According to the requirements of China's new budget law (revised in 2014), local governments can 
only borrow debts by issuing loc al government bonds.  
1.2.3 Other structural measures, page 23, paragraph 1.27  
Question  
Could China provide more details on the outcomes of the measures regarding the reforming of SOEs 
and the reducing of overcapacity?  
Reply  
China began to take five years to reduce the capacity of crude steel by 100 million to 
150 million  tonnes since 2016, has set up an inter -ministerial joint meeting system to eliminate 
backward production capacity and clean up illegal projects, and has joined hands with others to 
jointly  implement three special programmes. In the meantime, China has proactively promoted the 
elimination of excess capacity by means of marketization and legalization, and has reduced the 
production capacity of crude steel by more than 120 million tonnes in to tal. 
Question  
Could the Chinese authorities please provide an evaluation of the present situation of the so -called 
"zombies" enterprises?  
Reply  
At the end of 2017, the central enterprises basically completed the restructuring. Since 2016, central 
enterpri ses have eliminated 16.14 million tonnes of excess steel capacity and 62 million tonnes of 
excess coal capacity. In 2017, the central enterprises eliminated projects with backward production 
capacity, as well as suspended and delayed construction projects with the total capacity of 
49.48  million  kilowatts.  
Page 24, paragraph 1.33  
Could China please confirm that the POBC RMB 100 billion injection to the Belt and Road Fund is a 
direct financing of the project by the monetary authority?  
Reply  
Please refer to the website of the Fund.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Could China please give further clarification on how were the financial institutions encouraged to 
carry out overseas RMB fund business?  
Reply  
Since August 2017, financial institutions have independently developed RMB overseas fund 
businesses in accordance with the principles of marketization and commercialization under the 
current policy framework.  
1.2.4 Balance of payments , Capital controls, p age 27, paragraph 1.40  
Question  
Could China evaluate the results of the meas ures adopted in order to "move towards further 
liberalization and convertibility", taking into account, among other data, the decline in outflows 
during the period under Review?  
Reply  
In H1 2018, the global economic recovery slowed, but kept stable as a whole, while the volatility of 
international financial market increased. China's economic operation has maintained an overall 
steady trend, and will develop better in the future. The RMB fluc tuates in both directions against the 
dollar, and the exchange rate is expected to be basically stable. In general, China's cross -border 
capital flows are generally stable, and the domestic foreign exchange market supply and demand is 
basically balanced. I n the next step, China will further promote balanced management of cross -
border capital flows, steadily promote the two -way opening of financial markets, establish a macro 
prudential management system for cross -border capital flows, and improve the micro -regulatory 
framework for foreign exchange markets.  
Question  
Could China please provide further details as to how it intends to continue the liberalization of the 
capital account?  
Reply  
China will steadily and orderly promote the convertibility of RMB capita l projects, establish and 
improve an open and competitive foreign exchange market, promote the two -way opening of the 
financial industry, and implement a high -level policy of trade and investment liberalization and 
facilitation. In the meantime, China will  take precautions against financial risks, optimize the macro 
prudent policy framework for cross -border capital flows, prevent possible risks arising therefrom, 
and maintain economic and financial safety.  
1.3 Developments in Trade and Investment, 1.3.2 Tre nds and patterns in FDI, page 30, 
paragraph  1.49 
In paragraph 1. 49, the Secretariat states that "reforms in foreign currency management, in areas 
such as relaxing the control over centralized operation and management of foreign exchange funds 
by multinational companies and the conditions of participating enterprises, have been pressed ahead 
with in a n orderly manner".  
What further measures does China intend to adopt in foreign currency management by multinational 
companies?  
Reply  
SAFE is studying  and optimizing the policies related to the centralized operation and management 
of foreign exchange funds of transnational enterprises. The next step is to further study and simplify WT/TPR/M/3 75/Add.1  
 
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  the business processes and account management of transnational enterpris es, improve the in - and 
post-accident supervision, continuously promote the facilitation of trade and investment,  promote 
the construction and stability of international, legal and convenient business environment, encourage 
and absorb high -quality foreign investments to serve the development of the real economy.  
Question  
Does China plan to relax rules for profit repatriation, in particular the requirements for dividend 
payments to foreign entities?  
Reply  
There is no restriction on the normal profit outflow  of foreign -invested enterprises in China. Profit 
outflow belongs to current items. In 1996, China has realized regular international convertibility,  
payment and transfer of true and compliant current account, including external payment and transfer 
of div idend, which can be handled directly by commercial bank with real and effective transaction 
documents, without any restriction.  
Page 30, paragraph 1.51  
Question  
Could China comment on the reasons why "outward FDI declined slightly in 2016 from 2015 levels"?  
Reply  
According to the statistics of MOFCOM, in 2015, 2016 and 2017, China's foreign direct investment 
flows were USD 145.67 billion, 196.15 billion  and 120.08 billion  respectively. The flow of OFDI is 
influenced by many factors, such as enterpris e investment willingness, international investment 
environment and so on, which is ultimately determined by the market.  
2 TRADE AND INVESTMENT REGIMES  
2.1 General Framework,  page 31 , paragraph 2.2  
Question  
According to paragraph 2.2, the recently established internet court (E -court) in Hangzhou is set to 
follow a principle of "online trial of online cases". Would the court have competence to handle cases 
where one of the parts is a foreign entity, for instance as a plaintiff in internet shopping or  internet 
copyright disputes?  
Reply  
Foreign entities have the right to file civil proceedings in China.  
2.2 Trade Policy Framework and Objectives, 2.2.2 Trade policy formulation and objectives, 
page 33, paragraph 2.12  
Question  
Could China please provide further details as to how it intends to continue the liberalization of the 
services sector for foreign invested enterprises?  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Mana gement Measures for the Market Entry of Foreign Investment 
(Negative List) (2018) , greatly broadening market access, and the opening measures are applicable 
to all foreign investors. The 2018 Foreign Investment Negative List launches opening measures in WT/TPR/M/3 75/Add.1  
 
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  22 fields, with the number of restrictive measures reduced to 48 from 63, a reduction of about 1/4. 
The opening measures for the services sector include that, in the financial sector, the restrictions on 
foreign equity in banking industry are canceled; forei gn businesses are allowed to own up to 51% 
of shares in securities, funds, futures and life insurance joint ventures; all restrictions on foreign 
equity in the financial sector will be canceled in 2021. In the field of infrastructure, the restrictions 
on foreign investment in road network and power grid for trunk railway are abolished. In the field of 
traffic, the restrictions on foreign investment in railway passenger transport companies and 
international marine transport and shipping agencies are canceled . In the field of trade and 
commerce, the restrictions on foreign investment in gas stations and grain purchase and wholesale 
are eliminated. In the field of culture, the prohibitions on the investment in the Internet access 
service premises are eliminated . 
Page 33, paragraph 2.13  
Question  
The Secretariat report notes that Chinese authorities remain concerned about overcapacity in certain 
industries. Recent reports from the National Development and Reform Commission state that the 
reduction target in steel capacity (100 -150 million tonnes) might be reached ahead of schedule, in 
2018. Does China intend to keep this capacity plateau for longer than the original timetable of 2020?  
Reply  
China will complete the target task of  steel production capacity ahead of schedule in accordance with 
the capping limit. After that, China will continue to implement the industrial policy of strictly limiting, 
reducing and replacing the new production capacity of steels.  
Question  
Considering current supply and demand in the stee l industry, does China foresees the need for a 
new round of supply reduction?  
Reply  
From the current industry operation situation, China's steel production capacity is basically in a 
reasonable range, and there is no need to set up new capacity reduction targets.  
Page 33, paragraph 2.16  
Question  
Could China present a list of the judicial reforms mentioned in this paragraph?  
Reply  
Please refer to relevant contents in report by the secretariat.  
2.4 Investment Regime, 2.4.1 Regulatory framework and market ac cess, p age 37, 
paragraph 2.32  
Question  
The Secretariat affirms regarding "the Catalogue of Industries for the Guidance of Foreign 
Investment (Investment Catalogue)" that its most recent revision took place in 201722 and adds that 
the "2017 Catalogue contains: (1) a list of industries where FDI is encouraged; and (2) the 
investment negative list, which contains a list of industries where FDI is, inter alia , restricted or 
prohibited.23" Could China clarify the technica l and non -technical criteria used to determine each 
group?  WT/TPR/M/3 75/Add.1  
 
- 572 - 
 
  Reply  
The main "encouraged items" relates to the foreign investment -oriented fields, such as the advanced 
manufacturing, high -tech, energy conservation and environmental protection, and modern ser vices 
industries. The areas listed in the "negative list" are those with restrictions or prohibitions on foreign 
investment. In recent years, the Chinese government has been accelerating the pace of opening up 
and shortening the negative list. About 2/3 re strictions had been reduced in 2017, with the number 
of items cut to 63. In June this year, the Chinese government has further broadened market access, 
shortened the number of restrictions to 48, and launched 22 opening measures.  
Question  
The Secretariat a ffirms, regarding "the Catalogue of Industries for the Guidance of Foreign 
Investment (Investment Catalogue)", that "projects in the encouraged category are eligible for 
preferential treatment, for example, customs duty exemptions for the importation of eq uipment". 
Could China illustrate, with specific cases, industries that benefitted from duty exemptions and clarify 
if they were in joint -ventures with Chinese enterprises?  
Reply  
The foreign -invested enterprises engaging in the encouraged foreign investmen t items included in 
the Catalogue of Industries for the Guidance of Foreign Investment (2017 Revision)  are exempt from 
tariff when importing self -use devices within the aggregate investment. For example, foreign 
investment in engine, chassis electronic con trol system and critical parts is involved in the 
encouraged items, without restrictions on  the proportion of foreign equity and is applicable to the 
above preferential policy.  
Question  
The Secretariat affirms, regarding the "the Catalogue of Industries for the Guidance of Foreign 
Investment (Investment Catalogue)", that "projects in the encouraged category are eligible for 
preferential treatment, for example, customs duty exemptions for the importation of equipment". 
Could China clarify what other, if an y, preferential treatments are offered to industries that qualify 
to the encouraged category?  
Reply  
The foreign -invested enterprises engaging in the encouraged foreign investment items included in 
the Catalogue of Industries for the Guidance of Foreign In vestment (2017 Revision) are exempt from 
tariff when importing self -use devices within the aggregate investment, and in addition, those 
investing with the profit from the investment enterprises in China can enjoy the deferred payment 
of withholding income tax. 
Question  
The Secretariat affirms, regarding "the Catalogue of Industries for the Guidance of Foreign 
Investment (Investment Catalogue)", that "projects in the encouraged category are eligible for 
preferential treatment, for example, customs duty exemp tions for the importation of equipment".  
Could China clarify who is the authority that decides on the concession of such preferential 
treatments and if they apply to the industry sector or to specific, case -by-case, applications from 
enterprises?  
Reply  
When a foreign -invested enterprise is newly established or increases capital for expansion, the 
competent commerce department will indicate that whether it belongs to an encouraged item in the 
filing information. If yes, such foreign -invested enterprise can be exempt from tariff for the imported 
device after applying to the Customs and handling relevant formalities. The coverage of the 
catalogue of encouraged items for foreign -invested enterprises is not limited to the industrial sector.  WT/TPR/M/3 75/Add.1  
 
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  Page 37, paragraph 2.33 
The Secretariat affirms that, "as of October 2016, foreign -invested enterprises (FIEs) investing in 
projects in the restricted category of the negative list must undergo an examination and approval 
process. Foreign direct investment in industries and projects that are not specified in the list require 
record -filing. According to the authorities, the negative list is to be implemented nationwide, in 
principle; exceptions include measures related to national security and financial prudence.  
Question  
Could China clarify which type of industry or industries have been detected, in previous occasions, 
as exceptions related to national security?  
Reply  
Measures related to national security are not included in the negative list of foreign investment 
access, and  are security exceptions. Such measures include  security review of foreign investment 
involving national security, etc., and are not targeted at a certain industry.  
Question  
Could China clarify what characteristics are implied by the expression financial p rudence?  
Reply  
According to Article 21 of Banking Supervision and Administration Law , prudent operation rules of 
the banking financial institutions mainly include risk management, internal control, capital adequacy 
ratio, asset quality, loss reserve, risk  concentration, related transaction and asset liquidity.  
Question  
The Secretariat affirms that "the authorities indicate that items restricted or prohibited for both 
foreign and domestic investment no longer appear in the 2017 Investment Catalogue; the re moval 
of such items does not mean they are open to foreign investment." Could China clarify how this 
change facilitates, in terms of transparency and predictability, the decision process for foreign 
investors?  
Reply  
Items restricted or prohibited for both foreign and domestic investment will be listed into the Market 
Access Negative List. Foreign Investment Negative List is a special management measure for foreign 
investment access. Foreign investors must conform to F oreign Investment Negative List and Market 
Access Negative List.  
Page 39, paragraph 2.35  
The Secretariat affirms that "the authorities indicate that the Government has never made, through 
existing Chinese laws, regulations and policies, technology transfe r a precondition for inward FDI, 
or issued any laws, regulations, or policies obligating investors to transfer their technologies".24 
However, the footnote indicated by the Secretariat also recalls that "some Members raised concerns 
about China's reported de facto technology transfer requirements", and mentioned WTO documents 
WT/TPR/M/342, 26 September 2016 and WT/TPR/M/342/Rev.1, 28 October 2016, as well as 
concerns raised by Members over China's technology licensing requirements in the Council for Trade 
in Goods, on 26 March. Could China clarify how it equates its own evaluation, in light of the concerns 
raised by Member countries?  
Reply  
There is no law in China that requires foreign enterprises to transfer their technologies to Chinese 
partners. Since Chi na's reform and opening up, enterprises from other countries and regions have WT/TPR/M/3 75/Add.1  
 
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  chosen to cooperate with Chinese enterprises to enter the Chinese market. These enterprises from 
other countries and regions provide technology and experience, while the Chinese side provides 
labour and other resources. This is a contract behaviour implemented at the enterprise level. In fact, 
many of these enterprises have made huge profits by setting up joint ventures in China, and the 
profits have even exceeded those made in th eir home countries or regions.  
Question  
The Secretariat refers to the "Market Access Negative List, which applies to both domestic and 
foreign companies; the latest of such a list was issued on 2 March 2016" and observes that "while 
the investment negative  list only applies to foreign investors, the Market Access Negative List applies 
to both domestic and foreign investors. When investing in China, a foreign investor must first meet 
the requirements of the negative list in the Investment Catalogue, and then  the Market Access 
Negative List." Given the negative list in the Investment Catalogue distinguishes between 
encouraged, restricted and prohibited sectors, could China clarify how they will combine with the 
Market Access Negative List? Additionally, with r egards to the Market Access Negative List, could 
China clarify if there is also eligibility for preferential treatment for some industries, as is the case 
of the Investment Catalogue?  
Reply  
Market Access Negative List system is a series of institutional a rrangements in which the State 
Council explicitly lists the behaviours, fields and businesses with prohibited and restricted investment 
and operation in the People's Republic of China, as well as corresponding management measures 
taken by governments at al l levels according to law. For industries, fields, businesses, etc. not 
included in the negative list, all kinds of market entities can enter the market equally according to 
law. China implements the management mode of national treatment plus negative list  to foreign 
investment before accession. The negative list here refers to Special Administrative Measures for 
Foreign Investment Access to Pilot Free Trade Zones (PFTZs Negative List) (2018), rather than the 
Market Access Negative List. The national treatm ent before accession refers that foreign investors 
enjoy the same treatment as the domestic investors in the pre -entry stage. The Market Access 
Negative List is the measures for both domestic and foreign capital market accesses, within the 
management scope  of pre -access national treatment.  
Question  
In case there is preferential treatment for some industries, could China clarify which measures they 
are? 
Reply  
The Market Access Negative List does not include the preferential treatment by specific industries.  
Page 40, paragraph 2.38  
The Secretariat affirms that "FDI in the form of mergers and acquisitions (M&As) is subject to 
antitrust reviews27, which are intended to assess their impact on the market (Section 3.1.6)." and 
that "several guiding documents were issued, including the Guiding Opinions on Standardization of 
Names of Applications of the Concentration of Undertakings29, issued on 14 February 2017, with a 
view to providing clear guidance for the parties involved and enhancing the predictability of 
enforcement .30" Could China clarify how M&A operations are subject to the Catalogue for the 
Guidance of Foreign Investment?  
Reply  
M&A of foreign -invested enterprises and foreign investors  relating to special management measures 
for foreign investment and assoc iated M&A must be approved by departments of commercial 
administration. M&A shall exclude foreign -invested domestic enterprises engaged in prohibited items 
in the Foreign Investment Access Negative List. Also, M&A for domestic enterprises engaged in 
limite d items and associated M&A need to be approved by departments of commercial WT/TPR/M/3 75/Add.1  
 
- 575 - 
 
  administration. Foreign -invested M&A that does not involve Foreign Investment Access Negative List 
and special management measures for associated M&A will be filed for management.  
Page 40, paragraph 2.38  
Question  
The Secretariat affirms that "according to the authorities, procedures for reviews were adjusted in 
2015; the case -handling department and office are now respectively responsible for case acceptance 
and review, aiming at i mproving the professional level of the review". In light of concerns regarding 
transparency, could China clarify how does this review process take place and how can the foreign 
firms react to the conclusions reached?  
Reply  
The MOFCOM has detailed the revi ew procedure in the Service Guide for Centralized Anti -Monopoly 
Review of Operators issued publicly.  
Page 40, paragraph 2.39  
Question  
The Secretariat affirms that "FDI involving investments in Chinese domestic enterprises may be 
subject to national security reviews if the FDI is related to defense, or is deemed to have an influence 
on national security". In spite of also observing that "the authorities state that no FDI applications 
have been denied for approval since 2015", could China clarify what are the criteria that indicate, 
for China, "an influence on national security"?  
Reply  
The General Office of the State Council issued the Notice on the Establishment of the Security Review 
System for Mergers and Acquisitions of Domestic Enterprises by Fore ign Investors  (GBF [2011] 
No. 6) in February 2011 to specify the scope of security review, review content, working mechanism, 
review procedures  and others of M&A., and establish a unified and standardized security review 
system for M&A. In April 2015, the General Office of the State Council issued the Measures for the 
Pilot Program of National Security Review of Foreign Investment in Pilot Free Trade Zones  
(GBF [2015] No. 24). In the Pilot Free Trade Zone s, it expands security review to new investment 
from M&A investment, incorporates key cultural fields and important information technology 
products and service fields into the review field, and specifies that the national security review 
procedures for foreign investment in pilot free trade zones should be i mplemented according to 
Article 4 of GBF  [2011] No. 6 document.  
Question  
Additionally, co uld China clarify if there is an appellate mechanism for the industries involved?  
Reply  
The Notice of the General Office of the State Council on Establishing Security Check Mechanism for 
Foreign Investors to Merge with or Acquire Domestic Enterprises (Guo Ban Fa [2011] No. 6) and 
Notice of the General Office of the State Council on Printing and Distributing the Trial Measures for 
the National Security Review of  Foreign Investment in Pilot Free Trade Zones (Guo Ban Fa [2015] 
No. 24) are not included in aforesaid mechanism.  
2.4.2 Examination and approval procedures, p age 41, paragraph 2.41  
Question  
The Secretariat affirms that "Foreign investment partnerships are required to register with the 
Department of Industry and Commerce; no approval is required. Registration requirements with WT/TPR/M/3 75/Add.1  
 
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  SAIC are the same as those for domestic enterprises, but may vary slightly depending on the 
activity." Could China clarify the circum stances under which the registration requirements are 
different and how do they differ?  
Reply  
Article 12, Chapter 2 of the  Administrative Measures on the Registration of Foreign -invested 
Partnership Enterprises  specifies: "To form a foreign -invested partnership enterprise, the 
representative designated or the agent entrusted by all partners shall apply to the registration organ 
for registration of formation. To apply for the formation of a foreign -invested partne rship enterprise, 
an applicant shall submit the following documents to the registration organ: (I) An application form 
for registration of formation signed by all partners; (II) A partnership agreement signed by all 
partners; (III) Certificates on the lega l status of all partners or their identity certificates if they are 
natural persons; (IV) A certificate on the principal business premise of the enterprise; (V) A power 
of attorney issued to the representative designated or agent entrusted by all partners;  (VI) A letter 
of confirmation issued by all partners on the subscription or actual payment made by each partner; 
(VII) An explanation signed by all partners on conformity with the foreign investment industrial 
policies; (VIII) A credit certification issue d by a financial institution which has business relations with 
the foreign partner; (IX) A Power of Attorney for the Service of Legal Documents signed by the 
foreign partner and the domestic addressee of legal documents; and (X) Other documents as 
specifie d by these Provisions. If the formation of a foreign -invested partnership enterprise is subject 
to approval as required by any law, administrative regulation or State Council provisions, an approval 
document shall be submitted as well ". Meanwhile, Article 11, Chapter 2 of Measures for the 
Administration of Registration of Partnership Businesses of the People's Republic of China  stipulates: 
"To form a partnership enterprise, the representative designated or the agent entrusted by all 
partners shall apply to the registration organ for registration of formation. In applying for the 
establishment of a partnership business, the following documents should be submitted to the 
registration organization: (I) Registration application signed by all partners; (II) Ident ification cards 
of all partners; (III) Power of attorney for the representative or the proxy designated by all partners; 
(IV) The partnership agreement; (V) Certificates of investment proprietorship; (VI) Certificate of 
site of operation; (VII) Other docum ents as required by the administrative department of the State 
Council in charge of industry and commerce. For cases that the establishment of the partnership 
business has to go over the examination and approval procedures according to laws and 
administrat ive decrees, relevant documents of approval should be submitted during the 
registration." As a result of this, establishment of a foreign -invested partnership enterprise needs to 
additionally  submit  the following three documents in comparison with establis hment of a domestic -
invested partnership enterprise in registration: "(VII) An explanation signed by all partners on 
conformity with the foreign investment industrial policies; (VIII) A credit certification issued by a 
financial institution which has busin ess relations with the foreign partner; and (IX) A Power of 
Attorney for the Service of Legal Documents  signed by the foreign partner and the domestic 
addressee of legal documents."  
Page 41, paragraph 2.42  
The Secretariat affirms that "Procedures and requ irements for the approval and record -filing of FIPs 
are stipulated in a 2014 NDRC document.35 In addition to requirements under the Investment 
Catalogue, projects subject to approval are those listed in the Catalogue of Investment Projects 
Subject to Gover nment Approval.36 To obtain approval, a n investment project must be examined, 
and a number of conditions must be met, including those related to the environmental impact of the 
project and to land use".  
Question  
Could China clarify in what terms these requirements  are different for local - private or state -owned 
- enterprises?  
Reply  
China does not apply different standards for private enterprises or state -owned enterprises in 
Catalogue of Investment Projects Subject to Government Approval.  WT/TPR/M/3 75/Add.1  
 
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  Page 42, par agraph 2.46  
Question  
The Secretariat affirms that "The pilot reform of the foreign investment system through the 
establishment of pilot free trade zones, which was initiated in 2013 through the establishment of the 
China (Shanghai) Pilot Free Trade Zone (C SPFTZ), was expanded in 2017 to seven  other pilot free 
trade zones (PFTZ) in Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan and Shaanxi; currently 
there are 11 FTZs in China. The foreign investment access in all of the eleven FTZs is based on the 
Special Administrative Measures for Foreign Investment Access to Pilot Free Trade Zones (2017 
PFTZs Negative List).43 The List provides a n outline of those sectors in which foreign investment is 
restricted or prohibited, and replaced the 2015 Negative List.44 For all industries not listed in this 
document, foreign investors will receive treatment similar to domestic companies with regard to the 
establishment and ap proval requirements and process. "45 In light of the mention of "treatment 
similar to domestic com panies, with respect to the establishment and approval requirements 
process", could China clarify if the difference of treatment relates to the number of authorizations 
required or to the time it takes to receive the authorizations?  
Reply  
Establishment of  foreign -invested enterprise will be approved and managed by the departments of 
commercial administration in case of belonging to special management measures for 
foreign -invested access; the ones will be filed for management by the departments of commercial 
administration in case of not belonging to special management measures for foreign -invested access. 
Similar treatment does not relate to number and time of authorization.  
Page 43, paragraph 2.50  
Question  
The Secretariat affirms that "Under the F TZ pilot rules, investments by foreign companies will be 
strictly reviewed if they involve a controlling stake of businesses related to: the military fields, key 
agricultural products, energy and resources, infrastructure, transportation, culture, IT produ cts and 
services, core technology, and equipment manufacturing related to national security." Could China 
clarify what does "will be strictly reviewed" entail, in practical terms - especially regarding 
investments on energy and resources?  
Reply  
In April 2 015, the General Office of the State Council issued the  Measures for the Pilot Program of 
National Security Review of Foreign Investment in Pilot Free Trade Zones  (GBF [2015] No. 24). In 
the pilot free trade zone s, it expands security review to new investm ent from M&A investment, 
incorporates key cultural fields and important information technology products and service fields into 
the review field, and specifies that the national security review procedures for foreign investment in 
pilot free trade zones sh ould be implemented according to Article 4 of GBF [2011] No. 6 document.  
2.4.3 Incentives for foreign investment, page 44, paragraph 2.54  
Question  
The Secretariat affirms that "China continues to encourage FDI in high -tech enterprises and R&D; 
"qualified"  R&D centers, domestic or foreign, can apply for import duty and VAT exemption for 
"qualified" imported R&D equipment .52" Can China clarify what it defines as high -tech enterprises 
and R&D?  
Reply  
Please refer to footnotes in report by the secretariat.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Page 44, paragraph 2.55  
The Secretariat affirms that "Preferential tax treatment continues to be provided under the  
Enterprise Income Tax Law for eligible enterprises. Since 2016, preferential income tax policies for 
technologically advanced service enterprises have been applied in the pilot areas for innovative 
development of services and trade53; in 2017, personal taxation pilot policies for, inter alia , venture 
investment enterprises were implemented in eight comprehensive innovation and reform pil ot areas 
in Beijing -Tianjin -Hebei, Shanghai, Guangdong, Anhui, Sichuan, Wuhan, Xi'an and Shenyang, as 
well as Suzhou Industrial Park.54" Could China clarify what are the exact preferential tax treatments 
offered to the eligible enterprises?  
Reply  
I. The p referential income tax policies for technologically advanced service enterprises refers to 
that the enterprise income tax will be levied from the technologically advanced service enterprises  
affirmed by 15%.  
II. Pilot tax policies regarding venture capita l enterprises and individual angel investors include:  
1. If a corporate venture capital enterprise directly invests a scientific and technological 
enterprise at the start -up stage for two years or more (24 months, the same below) by 
virtue of equity inves tment way, its income tax payable may be deducted based on 70% 
of the amount of investment at that year when its stock rights are held for two years or 
more. If the taxable income is not enough for the investment credit, the credits can be 
carried over for  use in future years.  
2. If a partnership venture capital enterprise directly invests a scientific and technological 
enterprise at the start -up stage for two years or more by virtue of the equity investment 
way, its partners will handle it respectively based on the following ways:  
a. The i ncorporated partner may deduct its gains from the partnership venture 
capital enterprise as per 70% of amount of investmen t for the scientific and 
technological enterprise at the start -up stage. If the taxable income is not enough 
for the investment credit, the credits can be carried over for use in future years.  
b. The i ndividual partner may deduct its operation gains from the partnership 
venture capital enterprise as per 70% of amount of investment for the scientific 
and technological enterprise at the start -up stage. If the taxable income is not 
enough for the investment credit, the credits can be carried over for use in f uture 
years.  
3.  If an individual angel investor directly invests a scientific and technological enterprise 
at the start -up stage for two years or more by virtue of equity investment way, its 
income tax payable obtained by transferring equities of the sci entific and technological 
enterprise at the start -up stage may be deducted based on 70% of the amount of 
investment. If the taxable income is not enough for the investment credit, the credits 
can be carried out when the income tax payable of the scientific  and technological 
enterprise at the start -up stage is transferred in future years.  
If an individual angel investor invests many scientific and technological enterprises at 
the start -up stage in the pilot area, and fails to completely deduct 70% of amount  of 
investment of the scientific and technological enterprises at the start -up stages going 
through cancellation and liquidation, the income taxes payable obtained by transferring 
other scientific and technological enterprises at the start -up stage can be obtained by 
the individual angel investor within 36 months as of cancellation and liquidation.  WT/TPR/M/3 75/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports, 3.1.1 Customs procedures, valuation, and 
requirements, p age 45, paragraph 3.4  
The Secretariat affirms that "AQSIQ is in charge of national quality, metrology, entry -exit inspection, 
animal and plant quarantine, certification, accreditation, standardization, and administrative law 
enforcement. AQSIQ is also the body in charge of ens uring that both imports and exports comply 
with technical regulations and certification requirements. AQSIQ administers the Certification and 
Accreditation Administration of China (CNCA). It is also China's TBT Enquiry Point and responsible 
for submitting TBT notifications".  
Question  
As mentioned in China 's last TPR, Brazilian regulatory authorities and industry representatives are 
still experiencing difficulties in receiving answers to their questions, legal texts, and clarifications 
from AQSIQ staff. These types of difficulties were raised during previous China 's TPR processes but 
have not ceased yet. What are the actions AQSIQ is planning to take to address this issue?  
Reply  
At present, the institutional reform has not been put in place, the "Three Decide"  regulations  have 
not been formally issued, and  relevant functions have not been finalized.  
3.1.3.2 Tariff rate quotas, p age 48, paragraph 3.17  
Question  
Since China 's last review, there have been no changes to the list of products subject to tariff rate 
quotas. However, the most recent notification on TRQ utilization was circulated in 2014 
(G/AG/N/CHN/30). When does China expect to circulate a new notification with inf ormation on the 
utilization of the quotas?  
Reply  
China will provide tariff rate quota notifications as soon as possible.  
Question  
In addition to the General Provisions of Civil Law, SAIC, AQSIQ and the Ministry of Agriculture provide 
protections for GIs o f different types under their respective laws and regulations. SAIC protects GIs 
in the form of collective marks and certification marks in accordance with the Trademark Law, the 
Implementing Regulations of the Trademark Law, and Procedures for the Registr ation and 
Administration of Collective Marks and Certification Marks. AQSIQ provides protection of GI products 
in accordance with the Provisions on the Protection of Geographical Indication Products and 
Implementing Rules for the Protection of Geographical  Indication Products. The GIs of agricultural 
products may be registered at the Ministry of Agriculture in accordance with the Measures on the 
Administration of Geographical Indications of Agricultural Products. Since 2016, in order to 
implement the Opinio ns of the State Commission Office of Public Sectors Reform on Perfecting the 
GI Protection and Administration Regime, SAIC has undertaken relevant research, convened 
industry -wide coordination meetings and consulted with other competent authorities includi ng the 
Ministry of Agriculture and the AQSIQ to discuss and establish a joint GI certification mechanism. 
Could China clarify whether producers of agricultural products from foreign countries seeking " sui 
generis " protection for GIs should register at the recently created institution that replaced AQSIQ or 
at the Ministry of Agriculture?  
Reply  
If it is necessary to be protected in China in accordance with the Measures on the Administration of 
Geographical Indications of Agricultural Products, you may apply  to the Ministry of Agriculture of 
China.  WT/TPR/M/3 75/Add.1  
 
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  3.1.5 Import prohibitions, restrictions and licensing, page 53, paragraph 3.35  
Question s 
Pursuant to Foreign Trade Law, could China define what is considered to be an "infant industry"?  
What are the requirements th at China considers when restricting or prohibiting import for "infant 
industries"?  
Could China provide examples when this clause was used?  
What would be the cases in which prohibitions could be considered by the Chinese Government to 
protect such industrie s? 
Reply to the above four questions  
There is no description of infant industry in the Foreign Trade Law, and what described in Article  16.4 
of the Law is the "specific industry". China has not yet invoked this article in legal practice, nor 
developed a list. 
3.1.6 Anti -dumping, countervailing, and safeguard measures, 3.1.6.1 Anti -dumping 
measures, page  56, paragraph 3.46  
According to paragraph 3.46, "[t]o date, SCTC has neither rejected nor modified any proposals by 
MOFCOM".  
Could China clarify whether a  "public interest analysis" is considered in applying or not a measure?  
Reply  
According to China's Regulations on Anti -dumping, the collection of anti -dumping duties should be 
in line with the public interest.  
Question  
Has China had any experience in reve rting the proposal of MOFCOM to apply an AD measure due to 
public interest?  
Reply  
China temporarily hasn't had any such experience.  
Question  
What are the procedures exporters must follow to apply for a public interest analysis? The same 
authority that conducts the investigation is in charge of analyzing public interest petitions?  
Reply  
In case investigation, exporters will usually submit the comment opinions on public interest related 
questions, which will be taken into account by the investigation authority according to law.  
Page 57, paragraphs 3.52 and 3.53  
Question  
How does China manage to collect the necessary data to be able to initiate, ex officio, 
AD investigations and reviews? Considering the provisions in article 7.1 (iii) of the Anti -Dumpin g 
Agreement, could China explain the reasons that led the Chinese investigation authority to apply 
provisional measures in all anti -dumping investigations initiated in 2015 and 2016?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the provisions of China's Regulations on Anti -dumping , investigation authorities may 
conduct investigations and collect necessary information by means of questionnaires, sampling, 
hearings and on -site verification. Whether interim measures shall be taken for anti -dumping 
investigation should be determined as  the case may be.  
3.1.6. 2 Countervailing measures  
Question  
With regard to the experience with CVD investigation, does China consider additional information 
regarding subsidy programme s that are found "in the course of the investigation" and that have not 
been included in the original petition? Does China include these additional programme s within the 
scope of the investigation?  
Reply  
The investigation authority will investigate new su bsidiary programme s found during investigation.  
3.1.6.3 Safeguard measures, page 60, paragraphs 3.61 to 3.66  
Question  
According to paragraph 3.62 of the Secretariat Report, "laws and regulations governing safeguard 
measures in China have not changed during  the review period". Considering the Chinese legislation 
currently in force and the experience accumulated so far in the application of safeguard measures, 
please clarify:  
a. What is China 's understanding of article 8 of the Safeguard Agreement, specifically with 
regards to the obligation of Members to "maintain a substantially equivalent level of 
concessions and other obligations to that existing under GATT 1994" when applying a 
safeguard measure?  
Reply  
Article 8.1 and 12.3 of the Safeguard Agreement are clo sely related. As per the Safeguard Agreement, 
the party taking  or extending measures shall, in the course of the prior consultations, give the 
affected parties sufficient opportunity for consultations, so as to maintain the measures to a 
reasonable level.  
Question  
b. What are the requirements countries should meet in order to qualify for the "adequate means 
of trade compensation for the adverse effects of the measure", as established in article 8.1 of 
the Agreement?  
Reply  
Article 8.1 and 12.3 of the Safeguard  Agreement are closely related. As per the Safeguard Agreement, 
the party taking  or extending measures shall, in the course of the prior consultations, give the 
affected parties sufficient opportunity for consultations. In case investigation, China will fu lly respect 
the requests for consultation by all parties, and make all efforts to consult with all parties.  
Question  
c. What is the periodicity that China reviews the trade data, after the application of a safeguard 
measure, in order to classify which countries are excluded or not from the safeguard measure, 
according to article 9.1 of the Safeguard Agreement?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
It seems that the Safeguard Agreement does not give clear guidance on how to review the trade 
data. 
3.3 Measures Affecting Production and Trade, 3.3.2 Standards and other technical 
requirements, 3.3.2.1 Overview, page 72, para graph  3.117  
Question  
"AQSIC administers the Certification and Accreditation Administration of China (CNCA)". The recent 
institutional restructuring plan approved by the  13th National People 's Congress creates the State 
Market Regulatory Administration, which will absorb the AQSIQ and, thus, the CNCA. How will this 
change affect the workflow regarding entry -exit inspection, certification and import -export technical 
regula tions? Besides, what is the reasoning behind the transfer to the State Intellectual Property 
Office of competence for rules of origin, previously under the AQSIQ?  
Reply  
At present, the institutional reform has not been put in place, the "Three Decide"  regulations  have 
not been formally issued, and  relevant functions have not been finalized.  
4 TRADE POLICIES BY SECTOR  
4.1.3 Policy instruments ,4.1.3.1 Border measures 4.1.3.1.1  Measures affecting imports , 
page 114, paragraphs 4.10 and 4.11  
Question  
Paragraphs  4.10 and 4.11 of the Secretariat report state that NDRC and MOFCOM are responsible 
for allocating TRQs. With regard to sugar imports under the TRQ every year, "MOFCOM 
Announcement No.59 of 2017 on Detailed Rules on Sugar Import Tariff Quotas Application a nd 
Allocation" in 2018 states that 70% of the TRQ for sugar are reserved to only three state owned 
companies (COFCO; Zhong  Guo Tang Ye Jiu Lei Jituan  Gonsi; and CCFT). In 2017, the additional 
30% of the TRQs for sugar were offered to 390 private companies.  In that regard, could China clarify:  
(i) What is the methodology used by MOFCOM to calculate the distribution of sugar TRQs every 
year?  
(ii) As stated in the piece of legislation above mentioned, the "quota allocation will give priority 
to applicants with  actual performance, based on their import performance, production capacity 
and sales in the previous year as well as other related business standards". Given that (a) the 
legislation on the TRQ allocation has not changed from 2016 to 2017; (b) MOFCOM must  
consider the import performance of the applicant in the previous year to calculate the TRQ in 
the current year; and (c) companies applying for TRQs on sugar must present their import 
data, could China share the details on what was the percentage of the 1. 945 million tonnes 
allocated to these three companies?  
(iii) What is the percentage of utilization of TRQs offered to the three state owned companies 
recently, considering that the applicants must present to MOFCOM the import data for the 
previous year dur ing the process of requiring the licen ces? 
Reply to (i) -(iii) 
According to the Protocol on China's Accession to the World Trade Organization and the Interim 
Measures for the Administration of Import Tariff Quotas of Agricultural Products (Order of MOFCOM 
and NDRC No.4 of 2003), MOFCOM allocates the import TRQs of sugar in the light of the number of 
application, previous import performance, production capacity and other relevant commercial criteria. 
The TRQs of 1.945 million tonnes of sugar have been distri buted with 70% to state trading 
enterprises and 30% to non -state trading enterprises. The opinions of relevant enterprises have 
been solicited, while most of them indicated that the import quota and operation were related to WT/TPR/M/3 75/Add.1  
 
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  trade secrets and did not agree  to disclose publicly. In terms of state trading enterprises, they import 
for themselves and on behalf of others in practice, with in - and out -of-quota import, making it 
difficult to distinguish in import statistics.  
Page 115, paragraph 4.12  
Question  
Accor ding to the Secretariat report, China has reduced the VAT rate for agricultural products from 
13% to 11% and continues to exempt farmers from it. With regard to China 's VAT legislation:  
(i) Please clarify whether Order No. 538 of the State Council from Nov ember 2008 
("Order  538/2008") and Decree No. 50 of the Ministry of Commerce and the State 
Administration of Taxation with Detailed Rules for Implementing the Interim Regulations of 
the People 's Republic of China on Value -added Tax ("Decree 50/2008"), toget her with the 
1993 Provisional Regulation on VAT constitute the current legal framework for VAT in China. 
If not, could China provide the complementary legislation on the application of VAT?  
Reply  
To optimize the tax rate structure in 2017, Chinese government implemented the VAT rate reform 
of "simplifying the four VAT tax brackets into three", which cancels 13% of the first VAT rate bracket, 
and moves the original 13% VAT rate to 11%. To further im prove the VAT system in 2018, Chinese 
government optimally adjusted the VAT rate, lowering to 10% from 11%.  
Considering legal grade issue upon replacing business tax with VAT in 2017, Chinese government 
revised the original Provisional Regulations On Value -Added Tax (Decree No. 538 of the State Council 
of the People's Republic of China), issued Decision of the S tate Council on Abolishing Provisional 
Regulations of the People's Republic of China on Business Tax  and Amending Provisional Regulations 
of the People's Republic of China on Value Added Tax  (Decree No. 691 of the State Council of the 
People's Republic of China), which specifies the basic system applicable to the current VAT.  
Hence, our VAT system frame mainly includes a series of policies and regulations of Provisional 
Regulations on VAT  (Decree No. 691 of the State Council of the People's Republic of Chi na) issued 
in the form of decree of the State Council of the People's Republic of China, Detailed Rules for 
Implementing the Interim Regulations of the People 's Republic of China on Value -added Tax  (Decree 
No. 50 of the Ministry of Finance and the State Ad ministration of Taxation) issued by the finance 
and tax departments, and Measures for Implementing the  Pilot Program of Replacing Business Tax 
with Value -Added Tax  (CS [2016] No. 36) approved by the State Council and formulated and issued 
by the finance an d tax departments.  
Question  
(ii) According to articles 15.1 of Order 538/2008, "self -produced agricultural products sold by 
agricultural producers" are exempted from VAT. Could China clarify whether this piece of 
legislation is the legal basis that allows  for exempting "small -scale farmers when selling 
agricultural goods produced by themselves", as stated in China`s reply in the last TPR 
(WT/TPR/M/342/Add.1, page  461)?  
(iii) What is the definition of "small -scale farmers" used by China when granting any VAT 
exemption? Does it refer to a maximum income or production threshold per family?  
(iv) Do medium or large -scale farmers that are not classified as "small -scale farmers" have to 
collect VAT? In this regard, what is the definition China uses to differenti ate farmers that have 
to collect VAT and not?  
Reply (ii) (iii) (iv)  
The Provisional Regulations on VAT  definitely specifies: "Agricultural producers shall be exempted 
from VAT when they sell their own agricultural products." Article 35 of Detailed Rules fo r 
Implementing the Interim Regulations of the People`s Republic of China on Value -added Tax  (Decree WT/TPR/M/3 75/Add.1  
 
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  No. 50 of the Ministry of Finance and the State Administration of Taxation) defines the concept of 
"agricultural producer", and specifies "agricultural prod ucer, including organizations and individuals 
engaged in agricultural production."  
Hence, the current policies do not limit the scale of taxpayers who are engaged in agricultural 
production and enjoy VAT exemption from the perspective of VAT. Only if they  conform to the 
provisions, everyone will enjoy the same tax policies without discrimination, regardless of domestic -
invested enterprise s or foreign -invested enterprise s, entit ies or individual s, and regardless o f 
enterprise scale.  
Question  
(v) In the most recent domestic support notification (G/AG/N/CHN/28), China does not mention 
the VAT exemption for agricultural products nor makes any reference to the calculation of VAT 
not collected. Could China please clarify whether the amount of VAT exemption fo r agricultural 
products is included in the total "AMS" reported in the last notification?  
Reply  
The tax exemption policy applies only to agricultural products produced and sold by small -scale 
farmers, which are mainly agricultural products left after they are used for household consumption. 
The quantity and value of these products are less than the agricultural output value of the relevant 
products, and it is difficult to count them accurately, so China cannot assess the tax exemption 
amount involved in  relevant policies. Technically,  relevant exemption cannot be included in AMS.  
Question  
(vi) Article 15.2 of Order 538/2008 establishes the possibility of exemptions of VAT payment to 
other products which must be regulated by State Council Decisions or State A dministration of 
Taxation (SAT) Decisions. Could China provide references to the current decisions in force that 
exempt "other products" from VAT?  
Reply  
Article 15 of the Provisional Regulations on VAT  definitely specifies: "The VAT exemption and 
reduction items shall be regulated by the State Council. Any local governments or departments shall 
not regulate tax exemption or reduction items." As of now, Chinese government has issued all VAT 
exemption and reduction items, all of which are approved by the State Council.  
Question  
(vii) The Provisional Regulation on VAT from 1993 establishes in articles 4, 8 and 10 the possibility 
of VAT credits to be compensated throughout the production chain. However, it i s not clear 
whether products that have been exempted from VAT – those produced by small -scale farmers 
and "other products" exempted by State Council or SAT Decisions – still generate VAT credits. 
Could China clarify whether VAT exempted domestic goods (agr icultural or industrial) generate 
VAT credit to be used in the intermediary steps of the production chain?  
Reply  
Chinese VAT system conforms to the chain deduction mechanism of " level-by-level levy and link-by-
link deduction" in design, in which the tax wi ll be deducted in the next link if being levied in the last 
link, and the tax is not deducted if being not levied. It should be noted that the State gave VAT 
exemption policy for the agricultural producers who sell their own agricultural products, so as to  
alleviate the burdens on peasant, considering that Chinese agricultural production was mainly 
conducted based on the family in tax reform in 1994. Enterprises cannot deduct the VAT paid when 
enterprises purchase tax -deductible agricultural products based on the VAT deduction mechanism. 
However, considering that the taxpayers paid VAT for their purchased chemical fertilizers and 
electricity in their agricultural production, duplicate taxation will be caused if the tax deduction is 
not allowed in the next li nk. Accordingly, China allows general VAT taxpayers to calculate the 
deducted creditable input tax for the purchasing of tax -deductible agricultural products based on the WT/TPR/M/3 75/Add.1  
 
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  purchasing price and deduction rate at 10% (Item (III), Article 8 of the Provisional Regulations on 
VAT make explicit provisions for this). What needs to be emphasized is that every general taxpayer 
may enjoy the aforesaid virtual deduction policies with equal tax treatment when they purchase tax -
deductible agricultural products produced b y the agricultural producers, regardless of domestic -
invested or foreign -invested enterprises.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry and Fisheries, 4.1.1 Features and market development, 
Page  111, paragraph 4.2  
Question  
The Secretariat affirms that "In the case of corn, the volume remained largely stable since 2013, 
while the value of production increased steadily. In the case of cotton, the value fell more than the 
volume. No data were made available by the authorities on the volume of production of cereals, 
fruits and nuts, and vegetables." Could China indicate data regarding the volume and value of 
production of cereals, fruits, nuts and vegetables?  
Additionally, could China clarify if the production of these goods benefits from local support 
mechanisms such as minimum prices?  
Reply  
Production data of related products can be found on the website of INE, and output data will be 
provided in the domestic support notification.  
4.1.2 Policy objectives and administration, p age 113, paragraph 4.5 
Question  
The Secretariat makes reference to the "The broader policy goals stated in the 12th Five-Year Plan 
(2011 -2015) and the 13th Five-Year Plan (2016 -2020) of accelerating modernization in the sector to 
improve farmers' well -being was reiterated in  the CPC Central Committee No. 1 Document of 2017" 
and affirms that "this document calls for deepening the supply -side structural reform in agriculture, 
by improving structures, promoting "green" production, extending the sector's industrial and value 
chain, boosting innovation and consolidating shared rural development. Could China clarify what 
specific support measures and trade related measures have been taken to achieve the objective of 
"supply -side structural reform in agriculture"?  
Reply  
In 2017, it i s clearly proposed in the Several Opinions on Further Promoting the Structural Reform 
of Agricultural Supply Side and Speeding up the Cultivation of New Kinetic Energy for Agricultural 
and Rural Development (Zhong Fa [2017] No. 1) issued by the CPC Central  Committee and the State 
Council that we should optimize the agricultural industry structure, promote green production, 
enlarge new industries and forms, and complete policies and measures on drawbacks in agriculture 
industry and rural areas, see the publi cly published documents for details.  
Question  
The Secretariat affirms that "China plans to deepen the reform on pricing mechanisms for major 
farm products to strengthen the role of market mechanisms, so as to assure that farmers sell their 
harvest at reaso nable prices." Could China clarify what it understands as "reasonable prices" for 
farmers and what specific measures are applied to achieve this objective?  
Reply  
The Chinese government will gradually reduce the protection of farmers' incomes by applying m arket 
price support policies. Instead, Chinese government will encourage farmers to make production WT/TPR/M/3 75/Add.1  
 
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  decisions based on market conditions and sell their products at market -based prices. The 
government will ensure the stability of farmers' incomes through ap propriate income subsidies.  
Question  
The Secretariat affirms that "China plans to promote the export of competitive farm produce and 
the cross -border operation of agricultural enterprises." Could China clarify what specific support 
measures have been taken  to promote competitiveness for the export of farm produce?  
Reply  
As for encouraging the export of competitive agricultural products, the Chinese government 
promotes the export of competitive agricultural products by means of improving the quality of 
products, strengthening brand building and setting up a platform for marketing and recommending 
agricultural products. In order to encourage transnational operation of agricultural enterprises,  
Chinese government has organized pilot projects for the constructi on of demonstration zones for 
overseas agricultural cooperation along the "Belt and Road"  and other key regions, and pilot projects 
for the construction of pilot zones for agricultural opening -up cooperation in areas with mature 
conditions along the coasts , rivers and  borders, as well as two platforms domestically and 
internationally, thus giving full play to the .internal and external synergies.  
Page 113, paragraph 4.6  
Question  
The Secretariat affirms that "the authorities are to offer favorable taxation p olicies for business start -
ups in rural areas, in addition to support with financing, land use and social insurance." Could China 
describe how such policies are applied in practice so as to clarify how they do not conflict with China's 
WTO commitments?  
Reply 
China is always committed to maintaining the consistency of its domestic trade policy with WTO 
rules and relevant accession commitments.  
4.1.3 Policy instruments, 4.1.3.2 Internal measures, 4.1.3.2.1 Support measures , 
page 118, paragraph 4.23  
Question  
The Secretariat affirms that "in 2017, 19 "special transfer payment programme s" were combined 
into ten programme s. The "large special programme s + task list" management model will be 
explored and implemented. According to the authorities, the aims of the r eform are to regroup 
programme s under large umbrella programme s, to disperse funds once rather than by installments, 
and to delegate execution to local governments through the establishment of "task lists", allowing 
local governments to adapt policies to l ocal conditions, while improving budgeting performance 
management mechanisms, and to change the modalities of certain policies so as to switch them 
from a WTO point of view from the amber box to the green one. No information was made available 
regarding ho w the subsidies schemes notified to WTO (described above in Table 4.7) would be 
converted and regrouped into these new programme s". Could China clarify how the subsidies 
schemes notified to WTO would be converted and regrouped into the new programme s? 
Reply  
In recent year, the central finance has continuously promoted the source integration of budget 
preparation for special transfer payment programme s. Since 2017, China has explored and 
implemented the management mode of ""large special programme s + task list" to further strengthen 
the source integration of agricultural -related funds, and further reduce the number of agricultural -
related special transfer payments.  WT/TPR/M/3 75/Add.1  
 
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  Page 121, paragraph 4.24  
Question  
The Secretariat affirms that "a series of new programme s were set up during the period under 
review, and experimented in various provinces or agricultural zones". Could China provide a 
complete list of the new programme s that have been set up and clarify how they relate to China's 
WTO commitments?  
Reply  
Refer to reply of above question.  
4.1.3.2.2 Price controls and market price support systems, page 124, paragraph 4.28  
Question  
The Secretariat affirms that "Grain reserves of maize, rice, soya beans and wheat maintained by the 
central and local authorities are used to regulate the supply and demand of grains, stabilize the grain 
market, and cope with major natural disasters or other emergencies.21 The criteria used to set and 
adjust the level of the stocks include population, output, consumption, and import and export." Could 
China provide information on how the regulation of grain reserves has impacted the import and 
export of grains by China?  
Reply  
Chinese grain reserves are mainly used for adjusting domestic food supply and demand, stabilizing 
domestic grain market, and dealing with major natural disasters or other emergencies. Meanwhile, 
China will meet Chinese people's increasing consumption d emands by actively using the international 
market and importing the high -quality grains.  
4.2 Mining and Energy, 4.2.1 Mining, page 130, paragraph 4.45  
Question  
The Secretariat affirms that "export quotas on rare earth have been removed and replaced by an 
export licensing regime; rare earth and related products remain subject to export inspection and 
interim export duties.36" Could China clarify how the change in export restrictions has impacted 
China`s exports of rare earths and other minerals?  
Reply  
Not accessed temporarily.  
Page 131, paragraph 4.51  
The Secretariat affirms that "China allows foreign companies, enterprises and other economic 
organizations as well as individuals to invest in exploration and exploitation of the mineral resources 
within its t erritory and sea areas under its jurisdiction. Foreign direct investment and foreign 
participation are present in the exploration and exploitation of minerals." Could China clarify what 
financial support mechanisms, if any, are made available for local min ing companies, even when 
they are partnered with foreign enterprises?  
Reply  
China has not made commitment  to mining services in schedule for specific commitments made by 
China to access to WTO.  WT/TPR/M/3 75/Add.1  
 
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  Page 131, paragraph 4.52  
The Secretariat affirms that "foreign  oil and gas companies are not entitled to independent 
exploration and development of domestic oil and gas blocks. Instead, they are required to sign 
Production Sharing Contracts (PSC) with domestic oil and gas enterprises." Could China clarify how 
these r equirements fit in with the supply -side reforms that seek to reduce overcapacity of different 
mining products?  
Reply  
According to Regulations of the People's Republic of China on the Exploitation  of Offshore Petroleum 
Resources in Cooperation with Foreign  Enterprises and Regulations of the P.R.C. on Sino -foreign 
Cooperation in the Development of Continental Petroleum Resources, foreign enterprises may 
participate in the cooperative exploitation of petroleum resources with Chinese enterprises on the 
premise  of complying with the specified conditions.  
Page 131, paragraph 4.53  
Question  
The Secretariat affirms that "coal is the object of a specific policy of capacity reduction. During the 
period under review, the State Council issued on 1 February 2016 the "Gui delines on Addressing 
Overcapacity in the Coal Industry" (Guo Fa [2016] No. 7). The guidelines specify that, in addition to 
obsolete production capacities already eliminated, efforts will be made as of the beginning of 2016 
to eliminate another approximate ly 500 million tonnes of production capacity. In addition, they 
stipulate that further reductions will be achieved through a restructuring and mergers process. As 
of October 2017, a reduction of around 440 million tonnes of production capacity had been ach ieved. 
The goal of another 150 million tonnes of capacity reduction for 2018 was set in the Annual Report 
on the Work of the Government delivered in March 2018 .37" Could China clarify what pricing support 
or financial mechanisms are made available for local producers?  
Reply  
According to the overall deployment of China's steel excess capacity, China began to take five years 
to reduce the capacity of crude steel by 100 million to 150 million tonnes since 2016, has set up an 
inter-ministerial joint meetin g system to eliminate backward production capacity and clean up illegal 
projects, and has joined hands with others to jointly implement three special programmes. In the 
meantime, China has proactively promoted the elimination of excess capacity by means of  
marketization and legalization, and has reduced the production capacity of crude steel by more than 
120 million tonnes in total.  
4.2.2  Energy, page 136, paragraph 4.69  
Question  
The Secretariat affirms that "Under the PSC structure, the Chinese partners hold the exploration and 
exploitation rights while the foreign partners serve as the operator managing the exploration, 
development and production of the venture. Conventional oil and gas PSCs entered into between 
SOEs and their foreign partners do not req uire MOFCOM approval." Could China clarify if the local 
Chinese partners, being SOEs, receive other direct or indirect financial support to increase 
investments for exploration, development and production of oil?  
Reply  
Chinese government treats all kinds of enterprises equally.  WT/TPR/M/3 75/Add.1  
 
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  4.3.2.4 Iron and steel, page 146, paragraph 4.114  
Question  
The Secretariat affirms that "according to the authorities, China intends to adhere to the working 
concept of "capacities cut instead of production cut, with the production decided by the market". 
Could China clarify what mechanisms have been reformed so as to reduce the remaining excess 
capacity?  
Reply  
Steel excess capacity is a global issue. China has attached great importance, proactively put the 
consensuses reached on th e G20 Hangzhou Summit and Hamburg Summit, and taken practical 
measures to relief the challenge of steel excess capacity. According to the overall deployment of 
China's steel excess capacity, China began to take five years to reduce the capacity of crude st eel 
by 100 million to 150 million tonnes since 2016, has set up an inter -ministerial joint meeting system 
to eliminate backward production capacity and clean up illegal projects, and has joined hands with 
others to jointly implement three special programme s. In the meantime, China has proactively 
promoted the elimination of excess capacity by means of marketization and legalization, and has 
reduced the production capacity of crude steel by more than 120 million tonnes in total.  
Page 147, paragraph 4.115  
Question  
The Secretariat refers to means by which the Chinese Government intends to reduce the excess 
capacity for producing steel. Could China clarify how these policies have affected steel exports?  
Reply  
Refer to reply of above question.  
Question  
The Se cretariat describes regulations that seek to restrict the expansion of steel production. Could 
China clarify the impact of such policies in terms of local support mechanisms for the steel mills?  
Reply  
Refer to reply of above question.  
Page 152, paragraph 4 .135 
Question  
According to the Secretariat 's Report, on paragraph 4.135, the Chinese authorities have stated that 
the normal operations of foreign trade and multinational enterprises will not be affected by the 
restrictions on the use of cross -border speci al lines or virtual private networks (VPNs) established 
by the MIIT Notice on Cleaning Up and Regulating the Internet Access Service Market.  
Given the restrictions imposed by the Chinese government on the access to information from many 
foreign sources, how the regulation complies with item 5 (c) of the Annex on Telecommunications 
of the General Agreement on Trade in Services (GATS)?  
Reply  
On the basis of the Measures on  Administration of International Communications Gateway Exchanges 
(Decree No. 22 of f ormer Ministry of Information Industry), the provisions of the Notice of the 
Ministry of Industry and Information Technology on Cleaning Up and Regulating the Internet Access 
Service Market  (hereinafter referred to as "Notice") on cross -border business act ivities target at the WT/TPR/M/3 75/Add.1  
 
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  enterprises or individuals which rent international private lines or VPN and carry out the cross -border 
telecommunications business activities without authorization without the approval of 
telecommunications authorities and the qualif ication of international telecommunications business. 
The related provisions of the Notice  will not cause influences when domestic and foreign enterprises 
and the masses of users' access Internet normally across borders, and legally conduct various 
operati on activities in accordance with rules. Due to their demands for special lines for cross -border 
networking, foreign trade enterprises and multinational enterprises may rent from a 
telecommunications service operator that sets up the international communica tions gateway 
exchanges by law, and their normal operation will not be affected by the relevant provisions. Anyone 
who conducts production, living and other kinds of activities in territory of China shall comply with 
Chinese laws and regulations. Any legal ly operated and used activities shall be protected by law.  
Question  
According to paragraph 4.135, in order to abide by the provisions of the MIIT Notice on Cleaning Up 
and Regulating the Internet Access Service Market, foreign trade enterprises and multinational 
companies may rent VPN services from a telecommunications services operator recognized by law.  
Given the proposed changes and the notorious market dominance of the three main state -owned 
telecommunication operators (China Telecom, China Unico m and China Mobile), how does the 
Chinese government intend to guarantee that this measure does not modify the prior conditions of 
competition in favor of Chinese service suppliers, in accordance with Article XVII (c) of GATS?  
Reply  
The Regulation on Telecommunications of the People's Republic of China  is formulated to regulate 
the order of the telecommunications market, protect the lawful rights and interests of 
telecommunications users and service providers , ensure the safety of telecommunications ne twork 
and information  and to promote the healthy development of telecommunications. It specifies that 
supervision and administration of telecommunications shall be carried out according to the principles 
of separation of the Government and enterprises, ant i-monopoly, competition  encouragement,  
development promotion, openness, fairness and impartiality.  
Page 153, paragraph 4.138  
Question  
According to article 23 of the Cybersecurity Law, "critical network equipment and specialized network 
security products shall follow the national standards and technical regulations and be security 
certified or tested by a qualified establishment, before being sold or provided". Article 23 also 
stipulates that the Catalogue of those products (released in June 2017)  "aimed a t promoting 
reciprocal recognition of safety certifications and security inspection results and at avoiding 
duplicative certifications and inspections." Have any agreements or measures been adopted for the 
promotion of reciprocal recognition of safety cert ifications and security inspection results with other 
member countries after the release of the Catalogue?  
Reply  
China attaches great importance to the exchange and cooperation in  network security certification 
and accreditation, and has always adhered to  the international mutual recognition activities of 
certification and accreditation in the principle of equality and mutual benefit, and is willing to carry 
out technical exchange and cooperation in  network security with other member countries to promote 
mutual recognition. As a matter of fact, China has been proactively communicating with relevant 
countries on bilateral or multilateral occasions.  
Page 154, paragraph 4.141  
Question  
The Secretariat 's Report, on paragraph 4.141, mentions the provision of article 37 of the 
Cybersecurity Law relating to data localization whereby "personal information and other important  WT/TPR/M/3 75/Add.1  
 
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  data gathered or produced by critical information infrastructure operators during ope ration within 
the mainland territory of China shall be stored within mainland China".  
Given the wide scope of information that can be "gathered or produced" by the so -called "critical 
information infrastructure operators" could the Chinese representative p rovide further details or a 
list of the specific types of information that foreign companies are required to store in databases 
within mainland China?  
Reply  
The Cyber Security Law stipulates that personal information and important data collected by key 
information infrastructure operators in the People's Republic of China shall be stored within the 
territory of the People's Republic of China. Data here does not refer to all data, but is limited to 
personal information and important data only. The important  information referred hereto is for the 
country, rather than individuals or enterprises. At present, Office of the Central Cyberspace Affairs 
Commission is working together with relevant departments  to formulate the Regulations on Safety 
Protection of Key Information Infrastructure in accordance with the requirements of the Cyber 
Security Law, so as to guide relevant industries to specify the specific scope of key information 
infrastructure.  
Page 156, paragraph 4.148  
Question  
The Administrative Measures for  Bank Card Clearing Institutions (Order No. 2 of 2016 of the People 's 
Bank of China and the China Banking Regulatory Commission) stipulate that "if the overseas 
institution exerts significant impact on the sound operation of the domestic bank card clearing  
system or public payment confidence, it shall establish a legal entity within the territory of China". 
The criteria for assessing the existence of such an impact comprise "the development of its cross -
border business, its business scale, its market share,  the guarantees it can provide in terms of risk 
prevention and information security, etc .". 
How do the Chinese authorities assess whether a n overseas institution exerts significant impact on 
the sound operation of the domestic bank card clearing system or public payment confidence?  
Are there quantitative standards that define whether an overseas institution has the obligation to 
establish a legal entity in mainland China?   
Reply  
According to the Measures, an overseas institution that provides bank card clea ring services in 
foreign currency only for cross -border transactions (hereinafter referred to as an overseas 
institution), may, in principle, not establish a bank card clearing institution within the territory of the 
People's Republic of China. However, if  the overseas institution exerts significant impact on the 
sound operation of the domestic bank card clearing system or public payment confidence, it shall 
establish a legal entity within the territory of China, and obtain the licen ce for bank card clearin g 
business  according to law.  
PBOC, together with the China Banking Regulatory Commission, will implement anti -money 
laundering and anti -terrorism financing measures in accordance with the cross -border business 
development, business scale, market share, and  risk prevention and information security of overseas 
institutions. The comprehensive evaluation of the protection of the rights and interests of cardholders 
and merchants has an important influence on the steady operation of the domestic bank card clearin g 
system or the public's confidence in payment.  
Report by China - WT/TPR/G/375  
Page 18, paragraph 5.9  
Addressing issues relating to agriculture, rural areas, and rural people has always been the 
centrepiece of the work of the Chinese government. In January  2018, China issued guidelines on WT/TPR/M/3 75/Add.1  
 
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  implementing the rural vitalization strategy. It is proposed that agricultural supply -side structural 
reform be pushed forward, and the production -oriented pattern of development be adjusted towards 
a quality -oriented one highlighting green development. Agricultural science and technology should 
be enhanced, whole -process mechanization be further promoted, and rural public services and 
infrastructure be strengthened. China will further deepen the rural reform including the rural land 
system in a comprehensive approach. Agricultural support policies and measures will continue to be 
improved to form a mechanism containing both incentives and restraints which is green -oriented 
and promotes the rational use of agricultural resou rces and protection of ecological environment.  
Question  
There have been significant delays in the approval of biotechnology products by China, as well as a 
need for greater predictability in the approval process, in light of the recent changes in the appro val 
procedures and timelines of the biosafety -related agencies and committees. How does China foresee 
enhancing agricultural science and technology in a context of less predictability and transparency 
for the research and development of biotechnology produ cts? 
Reply  
China's examination and approval of biotechnology products has always followed the principles of 
legality, scientificness, standardization and transparency, strictly complied with concerned laws and 
regulations, and observed the comparative analysis, prevention, case analysis, scientificness and 
transparency, and familiarity principles according to international standards.  
  WT/TPR/M/3 75/Add.1  
 
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  NORWAY – BATCH  1 
State -owned enterprises (SOEs ) 
There are many references to state -owned Enterprises in the report. China has many wholly or 
partially owned state enterprises, on the national as well as the sub -national level. Some are clearly 
state controlled, with clearly stated objectives, while othe rs are as such commercial operations. It 
seems to be unclear whether commercial operations receive direct or indirect support from 
government. It also seems to be unclear whether some commercial SOEs like banks are used as 
tools by the government to suppor t other companies, and therefore do not always operate based on 
market principles. Clarity about and separation of roles of ownership, government, regulator and 
company management is primary. A challenging but important confidence building step would be to  
increase transparency regarding how all the SOEs operate and how the government is involved.  
Question 1  
Having participated in discussion in the OECD on the 2015 revision of the OECD Guidelines on 
Corporate Governance of State -Owned Enterprises, has Chin a decided to use the guidelines actively 
in their policy? These are recommendations to governments on how to ensure that SOEs operate 
efficiently, transparently and in an accountable manner as well as standard -setting for how 
governments should exercise th e state ownership function to avoid the pitfalls of both passive 
ownership and excessive state intervention. If not, what kind of other measures will China put in 
place to increase confidence that their SOEs operate in a transparent manner?  
Reply  
Since China is not a member of the OECD , it has no obligation to follow the OECD Guidelines for 
Corporate Governance of State -Owned Enterprises (hereinafter referred to as the Guidelines). In 
2014-2015, the China State -owned Assets Supervision and Administration C ommission , together  
with Brazil and India , was invited to participate in the revision of the new edition of the Guidelines, 
in response to the OECD Secretariat's request to enhance the inclusiveness of the Guidelines. Non -
member countries such as South Afr ica, especially the developing countries, shared the  experience 
about  state-owned assets supervision as well as the practice of performing investor responsibilities 
with OECD member countries. Through the exchange discussion, the Chinese side had a deeper 
understanding of many countries concepts and practices, and the sharing and interaction was also 
constructive and beneficial to China's efforts to learn from the experience and good practices of 
various countries, so as to better promote the reform and dev elopment of state -owned enterprises 
in China. Many of the provisions of the Guidelines have similarities with China's current practice, 
such as separation of government and enterprise, separation of government and capital, centralized 
and unified supervisi on, independence of state -owned enterprises, overall listing, fulfillment of social 
responsibilities, and duties of the board of directors, which, however, show differently due to 
different national conditions and development stages, so some countries do n ot understand the 
Chinese practices  very well . 
At the previous revision work conferences, the majority of our opinions were adopted. Only in 
individual content, such as reasonability of state ownership and fair competition between 
state-owned enterprises a nd private enterprises, the OECD Secretariat still adopted an expression 
of strong ideology and subjective colo ur in the strong adherence of some member states, which had 
weakened the inclusiveness of the Guidelines and its applicability to developing countries to a certain 
extent.  
In fact, according to the "Guidelines" standard, China's current centralized and unified 
implementation of the state ownership function is to avoid passive ownership and excessive 
intervention of the state. The OECD Secretari at and the National Ownership and Privatization Practice 
Working Group are highly affirmed by the Chinese state -owned regulatory model. Each year, the 
SASAC is invited to participate in regular working meetings in Paris, as well as regional roundtables 
and seminars held in other countries to introduce the latest progress in China's reform practice. At 
the same time, the SASAC often receives invitations from the World Bank and the Asian Development 
Bank to participate in relevant seminars, or to give lessons  on the state -owned enterprise -specific 
training programme s to some countries. To a certain extent, it has also demonstrate d the WT/TPR/M/3 75/Add.1  
 
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  international soci ety's full recognition of the corporate governance practices of Chinese state -owned 
enterprises.  
The SASAC wi ll continue to strengthen exchanges and mutual learning with the OECD and member 
states including Norway, and continuously promote the reform of state -owned enterprises in 
accordance with the established goals, and enhance the understanding and confidence of other  
countries in China's state -owned enterprises.  
Fisheries subsidies  
The ongoing negotiations on fisheries subsidies underline the importance of having factual 
information regarding each Members subsidy regime, both at the national and sub -national l evel. 
The trade effects of subsidies can be substantial, but so can the sustainability effects on fisheries 
resources. In general, we see the TPR as a vital additional source of information to notifications, not 
least because notifications can be lacking.  
In the S ecretariat report WT/TPR/S/375 paragraph 20 it is stated: China submitted to the WTO a 
number of notifications on its subsidies up to 2014. However, for most projects no information was 
provided on the total subsidy amount and no subsidies were no tified for the period between 2015 
and 2017. Furthermore, the authorities did not provide any information on subsidies that went 
beyond their notified programme s. Information available from other sources indicates that China 
has continued to provide substa ntial support for, inter alia , [.] fisheries. Outlays for these 
programme s are reported to be considerable.  
Question 2  
Could China please elaborate on these subsidies, both in substance and when those additional 
programs, if relevant, will be notified?  
Reply  
China will submit the 2015 -2016 notification of central and regional government subsidies, from 
which members could get relevant information.  
Regarding paragraph 3.113 and its footnote 73 "During the period under review, China has continued 
to provi de support for [] fishery (Table 3.14). Outlays for these programme s appear to be 
considerable.73 Official expenditure figures on these support programme s were, however, not made 
available. (Footnote 73: For example, annual expenditure for fisheries subsid ies was estimated at 
RMB 40.4 billion for 2013 (T.G. Mallory (2016), Fisheries subsidies in China: Quantitative and 
qualitative assessment of policy coherence and effectiveness. Marine Policy (68), 2016, 74 -82)."  
Question 3  
Could China comment on whether the estimated figure of RMB 40.4 billion reflects the real situation, 
as well as give information on the total amount of subsidies that are given to marine capture fisheries 
both at the national and the subnational level. As we understand it, subsidies are  to a great extent 
granted by local authorities, but the funds themselves come from the national level, from the Ministry 
of Finance through the Ministry of Agriculture.  
Reply  
We do not know the basis and scientific nature of the data source.  
In table 3. 14 there is reference to Transfer payments to the fisheries sector based on a "Circular on 
Adjusting Oil Subsidy for Domestic Fishery and Aquaculture to Promote the Sustainable and Healthy 
Development of Fisheries (Cai Jian [2015] No. 499). "  
Question 4  
Could China elaborate on this measure? How is domestic fishery defined? Is this for marine fishing 
within China's  EEZ? Or is it also for fishing beyond the EEZ? Given the emphasis on sustainable WT/TPR/M/3 75/Add.1  
 
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  development, is this measure subsidies for fuel in the operation of fisheries vessels, or is there 
another fuel subsidy programme  in place? We have heard that subsidies for d iesel are to be cut by 
40% by 2020. Can this be confirmed, including information from what level and to how many 
vessels?  
Reply  
Please refer to the subsidy circular for China's fisheries subsidies.  
We note from Table 4.1 that employment data for fisherie s is not available. From FAO fact sheet on 
China we have the following: "In 2014, there were 14.29 million workers, 140,375 workers less than 
in 2013, as the policy in place to limit fishing effort led fishermen to reallocate to different sectors. 
Among th e fishery operators, fishermen totaled 1.82 million, aquaculture workers 5.12 million, the 
supporting sector 872,906 workers, the part -time workers 4.85 million, and temporary employees 
1.63 million. "  
Question 5  
We would urge China to confirm and, if rele vant, update the statistics of 1,82 million employed 
directly in marine fishing, as well as elaborate on the policy to limit fishing effort and whether 
subsidies play a part in this effort.  
We note that paragraph 4.5. does not reference fisheries: "the br oader policy goals stated in the 
12th Five-Year Plan (2011 -2015) and the 13th Five-Year Plan (2016 -2020) of accelerating 
modernization in the sector to improve farmers' well -being was reiterated in the CPC Central 
Committee No. 1 Document of 2017. This document calls for deepening the supply -side structural 
reform in agriculture, by improving structures, promoting "green" production, extending the sector's 
industrial and value chain, boosting innovation and consolidating shared rural development. " 
Reply  
We do not know the basis and scientific nature of the data source.  
Question 6  
Are fisheries included in this policy? We are aware that there is a 13th Five-Year Plan for Marine 
Fishing . Could China elaborate on the relevant objectives and measures in this  plan, including how 
to tackle overcapacity and the use of subsidies? Can China confirm that subsidies are used for the 
construction of fishing vessels? How are sustainability issues taken into account?  
Reply  
Since 2016, China has formulated the 13th Five -Year Plan for National Fisheries Development, but 
it is not the 13th Five -Year Plan for marine fishing. Through the implementation of the fisheries 
reform, the number of marine ships will be reduced and marine fishing fishermen will switch to other 
produc tion. Summer moratorium of marine fishing will be strictly implemented to reduce the 
intensity of marine fishing. At the same time, for inland fishing, protection measures will be carried 
out to achieve the sustainable  use of  fishery resources  and to  promo te the sustainable development 
of fisheries.  
Sanitary and phytosanitary requirements  
List of establishments : Norwegian seafood establishments need to be registered in the CIFER system 
in order to export seafood to China. When registering new establishments and modifying information 
about establishments that are already registered difficulties have been experienced. The information 
required in order to register has been changed without prior notification.  
Question 7  
Could China please elaborate on the procedures for registration of seafood establishments in the 
CIFER system. What is the reasoning behind the new information requirements?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
CIFER is short for China Import Food Enterprise Registration. The system is now still under way, and 
has not been finally completed for operation. There are pilot partnership with countries like US and 
Norway. CIFER sets the registration procedure according to Measures for Registration of Foreign 
Producer of Imported Food  (former orde r No. 145 by AQSIQ). The information needed to be 
submitted during registration is completely the same with those required in paper document 
registration. It includes: the foreign producer submits to the overseas competent department the 
application and th e corporate information; the head of the department, upon review and approval, 
recommends the product via its embassy in China to Certification and Accreditation Administration 
(CNCA) and makes commitment on compliance with the official requirement; CNCA c onducts 
technical review and approve eligible ones to register. CIFER is more efficient and transparent than 
the pap er document -based registration. It is easier for calculating, has less error and is more 
environment -friendly. CNCA welcomes departments of countries to join CIFER pilots. The traditional 
paper document -based registration remains valid when CIFER is launched.  
Question 8  
Approval of new species : Several seafood products, such as fish meal, fish oil and krill, are not on 
the list of approved species for imports from Norway to China. The procedures for approval of imports 
of new seafood species seem cumbersome and time consuming, even when historic  exports can be 
documented.  
Could China please explain the procedures for approval of new seafood species, including the 
expected timeframe for approval of new species for imports?  
Reply  
According to the requirements of the Chinese laws and regulations,  the aquatic products with high 
risk of inspection and quarantine making the first entry to China should perform the following 
procedures: the official organization of the trading country should submit an application to the 
Chinese side for the aquatic pro ducts to be exported to China; risk assessment materials should be 
provided according to the Chinese requirements; qualified in risk assessment and review organized 
by China; bilaterally agreed inspection and quarantine requirements; production enterprise 
registration; and health certificate confirmation. The length of the approval process depends on the 
cooperation of both parties.  
As of 3 July 2018, the Chinese side did not receive an application for entry of the new species of 
aquatic products to China. If the Norwegian demand s it, please formally submit a written application 
to the Chinese side.  
Shipping  
Reference is made to the report by the Secretariat, Table A2.3 (p age 183). According to the table, 
between 2015 and 2017 China has removed restrictions  on foreign direct investments (FDI) for 
ocean shipping tally companies and removed the Chinese majority ownership requirement for joint 
venture operations among international maritime transport companies.  
Question 9  
Please confirm whether this information is correct.  
Reply  
The Foreign Investment Catalogue,  revised in 2017, has cancelled  previous requirements that only 
joint-stock and cooperative foreign ships can handle cargos at Chinese ports. There is no restricti on 
on foreign investment in the field of cargo handling at Chinese ports.  WT/TPR/M/3 75/Add.1  
 
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  Question 10  
Norway would like to learn more about the outlook for further liberalisation of FDI in the maritime 
transport sector, including possible changes to current requirements f or joint venture cooperation 
for international maritime transport companies and Chinese majority ownership for vessel agencies.  
Reply  
In June 2018, China issued the Special Management Measures for Foreign Investment Access 
(Negative List) (2018 Edition), which greatly relaxes market access, cance lling many  restrictions , 
such as  international maritime transport compan ies limited to  joint ventures and cooperation, 
China's  holding in  international shipping agencies,  Chinese holding in  the design, manufacture and 
repair of ships (including sections) , etc. 
Question 11  
Reference is made to the report by the government of China, para graph  3.14 (p ages 6-7), where it 
is stated that "China will consider rolling out a series of opening measure s", including in the ship 
manufacturing and transport sectors.  
What is the time frame for the roll -out of such opening measures, and which measures does China 
foresee, specifically in the ship manufacturing and maritime transport sectors?  
Reply  
On 28 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
jointly issued the Special Management Measures for Foreign Investment Access (Negative List) 
(2018 Edition). Among all measures, the shipbuilding industry has eliminated for eign investment 
restrictions, including design, manufacturing and repair. In the field of transportation, the 
restrictions on foreign investment in railway passenger transport companies, international maritime 
transport, and international shipping agents a re eliminated.  
State trading enterprises  
Paragraph 3.178 in the Secretariat report states that "STEs in China have the exclusive right to 
import or export the following products: grain, sugar, tobacco, rice, corn, cotton, coal, crude oil, 
processed oil, c hemical fertilizers, tungsten, tea, silk, antimony and silver (Section 4.2). " 
Question 12  
Does China foresee an amendment concerning which products are subject to State Trading 
Enterprises' exclusive import rights?  
Reply  
The catalogue of state -run trade goods is the commitment of China's accession to the WTO. On the 
basis of maintaining continuity, it is adjusted according to actual conditions. China ha d suspended 
the export of state -owned trade in tea and silk in 2004 and 2005 respectively.  
Export credit  
The Norwegian export credit institutions (ECAs) have attempted to establish officially supported 
export credits to Chinese borrowers. However, they have received information that loans must first 
be registered with Chinese authorities, who may then grant a certificate. The loan would have to 
comply with a national quota for foreign debt.  
Question 13  
Norway would like to receive more information about the regulations in relation to ECA -backed 
import/export transactions.  WT/TPR/M/3 75/Add.1  
 
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  Are the above -mentioned requirement s in place for all financial institutions or only export credit 
institutions?  
Reply  
Please refer to the specific requirements on our official export credit website for relevant information.  
Question 14  
What is required in order to receive a certificate a nd be within the national quota for foreign debt?  
Reply  
Please refer to the specific requirements on our official export credit website for relevant information.  
Legal services  
Paragraph 4.173 in the Secretariat report states that "since the beginning of  the open -door policy in 
the eighties, legal services, which were virtually entirely state owned, have emerged as one of the 
major professional services indispensable to the functioning of a dynamic market, whose legal 
framework is in constant evolution an d whose judicial system is developing. "  
Question 15  
What plans does China have to further open up and reform the legal services sector?  
Reply  
Since China allowed the foreign law firms which had representative offices in Shanghai Free Trade 
Zone and Chine se law firms to assign lawyers to each other as legal counselors and carry out joint 
operation, five joint -operation law firms have been established with good performance. In May this 
year, China has decided to expand the opening measures of Shanghai Free Trade Zone to Tianjin 
Free Trade Zone.  
  WT/TPR/M/3 75/Add.1  
 
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  NORWAY – BATCH  2 
Report by China - WT/TPR/G/375  
Paragraph 5.1.4 and paragraph 4. 1 
Norway welcomes China "committing to building ecological civilization" and focus "on pollution 
prevention and control with unprecedented determination and efforts to strengthen ecological and 
environmental protection." Given China's commitment "to promoting trade and investment 
liberalization and facilitation at multilateral, regional, and bilateral levels, and promoting the b uilding 
of an open world economy," has China considered how to integrate the building of an ecological 
civilization into its trade relations, and if so, what steps have been taken?  
Reply  
In the globalization process of trade investment, the international society has increasingly deepened 
its understanding of the good interaction between trade and environment, and it has become a 
universal consensus to realize sustainable development. The environmental issue, as a "new issue 
on international trade investmen t in the 21st Century", is one of the main marks deciding the 
"comprehensiveness and high level" of the international trade investment agreement. We are always 
strengthening policy exchange on ecological civilization construction with various countries in the 
world, actively carrying out international cooperation and relevant policy mechanism study, 
conducting communication and talent training in relevant fields and industries, and introducing 
relevant technology and equipment, to promote ecological civiliz ation construction and continuous 
innovation of trade development. In the free -trade agreements which have been signed by China, 
the environmental issue has evolved from originally nothing to do with trade to one sentence and 
one paragraph in the economic cooperation chapters of the China -New Zealand and China -Iceland 
free trade agreements, respectively; and now it has developed into separate environment chapters 
in China -Switzerland, China -South Korea, China -Georgia free trade agreements, with increasingly  
enriched contents.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  THE SEPARATE CUSTOMS  TERRITORY OF TAIWAN , PENGHU, KINMEN AND  MATSU – 
BATCH  1 
Report by the Secretariat - WT/TPR/S/375  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements , 2.3.2 Regional trade agreements and unilateral 
measures , page 36, paragraph 2.27  
Currently, China is negotiating seven FTAs, namely the Regional Comprehensive Economic 
Partnership Agreement, the China -Japan -Republic of Korea FTA, the China -Gulf Cooperation Council 
FTA, the China -Sri Lanka FT A, the China -Israel FTA, the China -Norway FTA and the China -Mauritius 
FTA. In addition, China is negotiating a second phase for three of its FTAs, namely the China -Pakistan 
FTA, the China -Singapore FTA and the China -New Zealand FTA. Meanwhile, revisions to  the China -
Pakistan, China -Singapore, China -Chile, China -New Zealand FTAs are under negotiation.   
Question  
1.  We notice from the report that China has entered into a second phase of negotiations for three 
of its FTAs and revisions for four of its FTAs. Could China please elaborate further on what are the 
main points being negotiated and revised in these FTAs and w hat is the time frame for finalizing this 
work?  
Reply  
Currently, China is having the second phase negotiation on the China -Pakistan FTA to further 
increase trade liberalization level, and a subsequent negotiation on the China -Korea FTA to amend 
Chapters r elated to Trade in Services and Investment and their  corresponding annexes. Besides, 
China is having FTA upgrading negotiations with Singapore and New Zealand. All these FTA 
negotiations are proceeding well. We hope these negotiations will be concluded at early date s. 
2.4.1 Regulatory framework and market access , page 36, paragraph 2.30 
According to the authorities, MOFCOM and related departments are in the process of drafting a new 
law on foreign investment.   
Question  
2. MOFCOM has just announced on 8 June 2018 that some measures will be taken to proactively 
use foreign investment to promote high -quality economic development. We would be interested in 
knowing whether the above -mentioned measures are in fact the new law on foreign investment as 
described in the WTO Secretariat report, or if other new laws on foreign investment are being 
formulated? If so, could China please elaborate in further detail on the new laws involving foreign 
investment?  
Reply  
On 15 June 2018, China issued the Notice of the State Council on Several Measures for Actively and 
Effectively Utilizing Foreign Capital to Promote High-quality Economic Development.  It draws on the 
framework s of internationally popular investment policies, and proposes specif ic measures from 
six aspects including investment liberalization, investment facilitation,  investment promotion,  
investment protection, optimization  of regional opening up layout  and innovation promotion in 
national development zones.  
2.4.3 Incentives for foreign investment , page 43, paragraph 2.52  
Projects in sectors listed in the Catalogue of Priority Industries for Foreign Investment in the 
Central -Western Regions of China (Central -Western Regions Catalogue) benefit from customs duty 
exemptions on the im portation of equipment within the scope stipulated by relevant policies.   WT/TPR/M/3 75/Add.1  
 
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  Question  
3. Could China please share with us the details of those entities to whom the above -mentioned 
measure applies?  
Reply  
Foreign -invested p rojects in central and western region s in sectors listed in the Catalogue of Priority 
Industries for Foreign Investment in the Central -Western Regions of China benefit from customs 
duty exemptions on the importation of self-use equipment within the aggregate investment.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , 3.1.3.2 T ariff rate quotas , page 49, 
paragraph  3.17 
All in-quota rates are ad valorem . In most cases, the out -of-quota rates are equal to the bound 
rates.   
Question  
4. Could China please advise us of any cases in which the out -of-quota rates are higher than the 
bound rates?  
Reply  
There is no such circumstance as  the out -of-quota rates are higher than the bound rates.  
3.3 Measures Affecting Production and  Trade , 3.3.1 Incentives , page 67, p aragraph 3.97  
During the period under review, China continued to provide a number of financial incentives to 
different sectors and industries. According to the authorities, these measures are in place to 
accelerate transformation and upgrading of traditional industries, foster infant industries, stimulate 
innovation, promote development in remote areas, enhance competitiveness of small and medium 
enterprises, and attract FDI. Furthermore, support was also granted with a view to protect ing the 
environment, reducing emissions, and conserving energy. Generally, support is granted by the 
central or local governments through tax preferences, direct transfers, and access to credit.   
Question  
5. Does China provide subsidies and financial incen tives to enterprises that are involved in the 
"Made in China 2025" plan? If so, would this not create an unfair playing field for other countries?  
Reply  
In essence, Made in China 2025 is an indicative plan, aiming to pointing out direction for industrial 
upgrading, i.e. to achieve better quality, greater efficiency, and etc. The targets are indicative rather 
than mandatory. That said, it should be noted that in some industries, we are facing technical 
blockades and export restrictions, which are not fair a nd unacceptable.  
The Made in China 2025 states that: to further break down various forms of industry monopoly, 
cancel unreasonable restrictions on the non -public sectors of the economy, strictly punish market 
monopoly and unfair competition, and create a g ood production and operation environment for 
enterprises.  
Question  
6. China has committed to strengthening the prevention of and controls on pollution in order to 
maintain the ecological environment. However, it has recently cut solar energy subsidies dras tically WT/TPR/M/3 75/Add.1  
 
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  without providing a buffer period. How has this impacted related industries? How does China intend 
to maintain the balance between future economic development and environmental protection?   
Reply  
The Governments report states that China has fully realized that lucid waters and lush mountains 
are invaluable assets, and focused on pollution prevention and control with unprecedented 
determination and efforts to strengthen ecological and environmental protection. Forceful measures 
have been taken to ta ckle air pollution. Encouraging progress has been made in establishing a 
national market for the trading of carbon emission rights. Energy conservation and emission 
reduction in key industries have continued to make progress, and energy structures further 
optimized. China has strengthened the prevention and control of water pollution in key river basins 
and sea areas, and implemented major ecological protection and restoration projects.  
Page 67 , paragraph 3.101  
The NDRC also promulgated Interim Measures for the Administration of Central Budget Investment 
(Subsidy) on High -tech Industry Development Projects in December 2016. They establish that the 
Government can provide investment subsidies and interest discounts  to high tech promotion 
projects, including innovative capacity building projects, Internet and big data pilot projects, 
information and technology infrastructure building, and regional industrial concentration and 
promotion projects. However, details of t he specific measures are as yet unknown.   
Question  
7. Could China please share with us details of the achievements attained by implementing the 
above -mentioned measures, and what specific measures have been undertaken in implementing the 
projects?  
Reply  
The Interim Measures aims to clarify the relevant procedures of high-tech related subjects involved 
in the central budget and does not involve the allocation of specific funds. For related subsid y 
measures , please  refer to  the China's  subsidy notification s. 
3.3.2 Standards and other technical requirements , 3.3.2.1 O verview , page 74, 
paragraph  3.126  
The Law on Traditional Chinese Medicine entered into force on 1 July 2017. The Law provides in 
Article 50 that the Government will develop a system of standards for traditional Chinese medicine, 
which will be published online. The Government also promotes the development of an international 
system of standards for traditional Chinese medicine.   
Question  
8. We are interested in knowing if China has already set up a  system of standards for traditional 
Chinese medicine and published it online? Furthermore, how does China plan to promote the 
development of an international system of standards for traditional Chinese medicine?  
Reply  
The State Administration of Traditio nal Chinese Medicine is a national organ that administers the 
traditional Chinese medicine (TCM) industry and is affiliated to the National Health Commission of 
the People's Republic of China. For the administration of TCM, please refer to its website 
http://www.satcm.gov.cn/ . In recent years, the State Administration of Traditional Chinese Medicine 
has organized TCM international promotion, application and dissemination activities. It has also 
carried out TCM exchanges and cooperation with the international community as well as : 
Hong Kong,  China; Macao, China;  and Chinese Taipei.  WT/TPR/M/3 75/Add.1  
 
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  3.3.7  Intellectual property rights , 3.3.7.2 Industry property , 3.3.7.2.1 Patents , page 98, 
paragraph 3.227   
The process to follow for  patent application and registration, under the Patent Law, has not changed 
since the previous review. A substantive examination may be initiated by SIPO upon request of the 
applicant within three years of the date of filing (or the priority date), failing  which the application 
is considered to have been withdrawn. The average time required to complete a substantive 
examination for an invention patent was 21.8 months in 2014. Decisions regarding patent 
applications may be re -examined by the Patent Re -Examin ation Board. Where an applicant requests 
SIPO to conduct a substantive review of his/her invention patent application, the request must be 
submitted within three years of the application date (or the priority date), otherwise the application 
shall be deeme d withdrawn. In 2016, the Patent Re -Examination Board accepted 13,107 requests 
for re -examination, 17,623 of which were conducted.   
Question   
9. In the sentence "Where an applicant requests SIPO to conduct a substantive review of his/her 
invention patent application  …" (the 4th line from the bottom in the original text), is the "substantive 
review " in any way related to the re -examination of a rejected invention patent application?   
Reply  
Please see below for details.  
Question  
10. If so, could you please p rovide more information about "requests made to SIPO for a 
"substantive review " within three years of the application date " for our reference?   
Reply  
Please see below for details.  
Question  
11. If not the case, could you please elaborate further on the exact meaning of substantive review 
in this context?   
Reply  for 9 -11 
According to the provisions of Article 35 of the Patent Law, the patent administration department 
under the State Council conducts substantive reviews of invention patent applications. Th e purpose 
of the substantive reviews is to determine whether an invention patent application should be granted 
a patent, in particular to determine whether the application meets the requirements of the Patent 
Law for novelty, inventiveness and practicality . Therefore, a substantive review is not a review 
method related to the re -examination of rejected invention patent applications.  
Page 99, paragraph 3.230   
During the period under review, SIPO formulated and revised several departmental rules 
(Table  3.26).  
Question   
12. Our understanding is that cases that have contributed to the national or public interest, such 
as energy, new materials, the internet, big data, or cloud computing, can apply for prioritized 
examination because they help to advance th e industry, according to the Administrative Measures 
on Prioritized Examination of Patent. Could China please illustrate how this practice has played out 
over the past three years by sharing with us details of prioritized examination cases in the field of 
technology, including the numbers of applicants by nationality, and the results of the examinations?   WT/TPR/M/3 75/Add.1  
 
- 604 - 
 
  Reply  
On 1 August 2012, the State Intellectual Property Office promulgated and implemented the 
Administrative Measures on Prioritized Examination of Pate nt Applications, giving priority to the 
examination of invention patent applications in emerging technological industries, technology -based 
small and micro enterprises, and green technology industries. To meet the development needs of 
patent work, the Stat e Intellectual Property Office initiated the revision of the Measures and 
promulgated the Administrative Measures on Patent Priority Examination on 1 August  2017. 
According to the new Measures, the application, review and invalidation announcements and oth er 
business types regarding three kinds of patents, namely invention, utility model and design, are 
included in the priority review; at the same time, the applicable conditions are further improved, 
and applications for smart manufacturing, next -generation  information technology and green patent 
technologies, and in the emerging industries such as the Internet, big data, and cloud computing 
are included in the applicable scope. The new Measures also simplifies the application procedures 
and reduces applican t submissions . 
In addition, China has signed PPH agreements with patent departments from 25 countries or regions, 
according to which, applicants from other countries or regions can submit priority review applications 
to China. At the same time, the State I ntellectual Property Office is committed to improving review 
quality, and examiners must conduct review in accordance with the provisions of the law. Therefore, 
there is no significant difference in the results of various cases.  
3.3.7.2.2  Trademarks , page 101, paragraph 3.234  
The agency responsible for the examination of trademark applications, registration and 
administration remains the Trademark Office (TMO) under SAIC. Local enforcement authorities are 
responsible for the administration of trademarks at the provincial level and below. The settlement 
of disputes regarding trademarks is the responsibility of the Trademark Review and Adjudication 
Board (TRAB), which is also responsible for reviewing decisions made by the TMO and ruling on 
disputed cases on t rademarks.   
Question  
According to our understanding, China established the State Administration for Market Regulation 
(SAMR) in 2018 and simultaneously abolished SAIC. The TMO and TRAB, originally under SAIC, have 
been incorporated into the State Intellect ual Property Office of the People's Republic of China (SIPO), 
which is under the SAMR.   
13. By incorporating the TMO and TRAB into SIPO, will the existing Patent Re -examination Board 
under SIPO be restructured or merged with TRAB? How are disputes regardin g trademarks settled, 
since this was a previous responsibility of TRAB? Have any adjustments been made accordingly?  
Reply  
The institutional reform is underway. The reform plan clarifies that the responsibilities of the State 
Intellectual Property Office, the trademark management responsibilities of the State Administration 
for Industry and Commerce, and the responsibilities of the GIS of the General Administration of 
Quality Supervision, Inspection and Quarantine of the People 's Republic of China will be integrated 
to re-establish the State Intellectual Property Office. The specific work of the new Office will be 
clarified after the function and the internal organization of the Office are finally determined.  
Question  
14. With this restructuring, have local  enforcement authorities responsible for the administration 
of trademarks been replaced by local branches of SIPO, or have they been incorporated into SIPO 
to form a single IP enforcement authority?   
Reply  
The institutional reform is underway. The reform p lan clarifies that the responsibilities of the State 
Intellectual Property Office, the trademark management responsibilities of the State Administration WT/TPR/M/3 75/Add.1  
 
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  for Industry and Commerce, and the responsibilities of the GIS of the General Administration of 
Quality  Supervision, Inspection and Quarantine of the People 's Republic of China will be integrated 
to re-establish the State Intellectual Property Office. The specific work of the new Office will be 
clarified after the function and the internal organization of t he Office are finally determined.  
4 TRADE POLIC IES BY SECTOR  
4.2 Mining and energy , 4.2.2 Energy , 4.2.2.3 Oil, page 136, paragraph  4.68 
Foreign investment in the exploration and development of oil is encouraged; it is limited to Sino -
foreign equity/co -operative joint ventures or other forms of Sino -foreign co -operation, including 
Production Sharing Contracts (PSC) - a legal institution all owing China to retain exploration rights 
and where foreign parties may manage the exploration, development and production as partners. 
These limitations were abolished for oil shale and oil sand by the 2017  Investment Catalogue.   
Question  
15. The Chinese g overnment has adopted certain measures including PSC to limit the forms of 
investments made by foreign companies. Apart from PSC, are there any other requirements 
concerning the qualifications, backgrounds, and capital of foreign investors? If so, could Ch ina please 
provide details concerning the relevant requirements?   
Reply  
In addition  to the above -mentioned requirement , the Chinese government has no other 
requirement s on foreign investor s qualifications, background and capital. Chinese oil compan ies 
independently choose foreign partners  in accordance with their  commercial negotiations.  
Question  
16. The limitations on oil exploration do not extend to oil shale and oil sand under the 2017 
Investment Catalogue. Would China please explain if there are any  additional limitations on foreign -
invested shale oil or oil sand exploration?   
Reply  
There have been no additional restrictions for f oreign investment in the exploration of shale oil or 
oil sands.  
4.2.2.5 Electricity, page 139, paragraph  4.80  
The reform liberalizes electricity prices (notably industrial ones) except for transmission and 
distribution (T and D) and for public welfare purposes (i.e. residential, agricultural, and important 
utilities uses, and other public welfare purposes determin ed by the government) . Transmission and 
distribution tariffs (T and D) are to be set according to the principle of "cost + reasonable profit" at 
different voltages. In 2017, the State completed the approval of the transmission and distribution 
tariffs of t he totality of the 33 provincial grids thereby cutting a total of RMB 48 billion of grid access 
fees for industrial and commercial enterprises. Under the reform, large industrial and commercial 
consumers (for the time being over 110 KW of consumption) are encouraged to buy electricity from 
generation companies based on direct electricity purchase agreements at negotiated prices; cross 
subsidies are to be reduced, and a real -time electricity trading platform is to be tested.   
Question  
 
17. Would China please  explain further the specific measures taken to encourage large industrial 
and commercial consumers to buy electricity based on direct purchase agreements?  
  
Reply  
  
Please see below for details.  
 WT/TPR/M/3 75/Add.1  
 
- 606 - 
 
  Question  
18. Please also elaborate further on the regulations concerning direct electricity purchase 
agreements and price negotiations.  
Reply for 17-18 
In accordance with the Several Opinions of the Central Committee of the Communist Party of China 
and the State Counc il on Further Deepening the Reform of the Electric Power System (Zhong Fa 
[2015] No. 9), China  will promote the reform of power trading system and improve the market -
oriented trading mechanism. Under the premise of ensuring safe and reliable supply of elec tricity, 
market participants will be guided to carry out multi -party direct transactions by orderly reducing 
power generation and utility. Power generation enterprises, power sales entities and power users 
that meet standards will be given the right to mak e choices by their own, so the three parties are 
able to directly negotiate contracts to achieve multi -party direct transactions. Referring to 
international practices, China will first lift its restrictions on direct transactions among large users 
and grad ually expand the scope of such transaction.  
Page 139 , paragraph 4.81  
The "Management Rules for Entry and Exit for Electric Power Companies and Management Rules for 
Orderly Liberalizing of Power Distribution Business " issued by NDRC and the NEA in October 2016 
(Fa Gai Jing Ti No. 2120 of 2016) have opened the retail market to Non -State -Owned investors. At 
the end of 2017, there were about 3,000 electric power companies registered with the power trading 
agency of China.  The minimum assets required to set up an electric power company are 
RMB 20 million. The five existing distribution companies were also allowed to set up their own retail 
companies.   
Question  
19. As far as we can see, the requirements concerning how foreig n participation and investments 
are regulated in terms of power retailing businesses are not specified in either the aforementioned 
Rules or other regulations mentioned in the report. Could China please provide further information 
on this subject?  
Reply  
Direct transaction of electricity is a market behavior. The electricity quantity and price  are 
determined by the parties involved in the purchase and sale of electricity.  
Report by China - WT/TPR/G/375  
4 ACHIEVING SHARED GROWTH THROUGH DISCUSSION AND COLLABORATION AND 
BUILDING AN OPEN WORLD ECONOMY  
4.1 Firmly supporting economic globalization and building a new platform for international 
cooperation , 4.1.1 Proactively promoting international cooperation over the Belt and Road 
initiative , page 12, p aragraph 4.3   
Under the Belt and Road initiative, trade connectivity has been greatly increased. Total trade 
between China and other Belt and Road countries in 2014 -2017 has exceeded US D 4 trillion, and 
China's accumulative investment in these countries nears USD 60 billion. Trade and investment 
facilitation has also been significantly enhanced. For example, for Kazakhstan and other Central 
Asian countries, Customs clearance time for agricultural produce exported to China has been reduced 
by 90%.  
Question  
20. While China is promoting the "Belt and Road" policy, the Washington Center for Global 
Development has reported that there may have been eight countries along the Belt and Road with 
large loans that have fallen into debt repayment difficulties, including Pak istan, the Maldives, Lao  WT/TPR/M/3 75/Add.1  
 
- 607 - 
 
  PDR, and others. The report has even predicted that along the routes, 23 countries that have 
borrowed will encounter debt difficulty risks. If this is the case, how will China respond to this in the 
future?   
Reply  
The BRI is an open and inclusive initiative which acts in accordance with the rule of the market, and 
specific projects are implemented through enterprises. It follows market rules and established 
international rules, and we welcome equal participation by enterprises of  all types. The Chinese 
government will focus on providing a fair and transparent business environment, favourable 
investment policies and legal guarantee, support and guide more domestic and foreign enterprises 
to actively participate in the BRI, promote the smooth implementation of relevant projects, and 
enable more results of mutual beneficial and win -win cooperation to benefit the people of all 
countries at an earlier date.  
China has no intention of increas ing the debt burden of any country. Most of the  loans provided by 
China to countries along the Belt and Road are used for investment rather than consumption. Each 
loan has specific infrastructure or social livelihood projects behind it, which helps to improve local 
productivity and boost economic growt h. China is taking steps to encourage financial institutions to 
become familiar with international standards and practices on debt sustainability, and to explore 
ways to establish a coordination system for external claims.  
5. DEEPENING THE REFORM COMPREHEN SIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
5.1 Furthering supply -side structural reform and strengthening innovation capacity of the 
economy , 5.1.2 Implementing innovation -driven development strategy and making China 
a country of inn ovators, p age 17 , paragraph  5.3  
Innovation is the primary force driving development. China has been committed to improving the 
national innovation system, further reforming the management system for science and technology, 
promoting innovation in the deve lopment of services trade, and inspiring creativity throughout the 
society.   
Question  
21. China has announced that it should continue to foster an open economy that benefits all, and 
innovative technology will be the main driving force of its economic growth in the future. Does China 
have any plans or policies to encourage foreign enterprises to participate in the development of 
innovation?   
Reply  
For science and technology innovation support policies, please refer to China's  subsidy notification s. 
5.1.4 Resolutely stepping up pollution prevention and control and committing to building 
ecological civilization, p age 17 , paragraph  5.5  
China has fully realized that lucid waters and lush mountains are invaluable assets, and focused on 
pollution prevention and control with unprecedented determination and efforts to strengthen 
ecological and environmental protection. Forceful measures have been taken to tackle air pollution. 
Encouraging progress has been made in establishing a national market for the trading of carbon 
emission rights. Energy conservation and emission reduction in key industries have continued to 
make progress, and energy structures further optimized. China has strengthened the prevention and 
control of water pollution in key river basins and s ea areas, and implemented major ecological 
protection and restoration projects. From 2013 to 2017, 71% of all the coal -fired power generating 
units in China achieved ultra -low emissions, and the proportion of coal consumption dropped by 
8.1 percentage poin ts, while that of clean energy consumption up by 6.3 percentage points.   WT/TPR/M/3 75/Add.1  
 
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  Question   
22. Would China please further explain any investment plans to enhance the forceful measures 
for tackling air pollution?  
Reply  
At present, there is a specific fund for air  pollution prevention and control. For details, please refer 
to China's  subsidy notifications.  
Question  
23. Could China please further elaborate which form of clean energy has priority while China is 
promoting such policies?  
Reply  
Currently, China is focusing on accelerating the adjustment of energy structure and building a clean, 
low-carbon and efficient energy system, and takes the development of clean low -carbon energy as 
the main task of energy restructuring.  
 
  WT/TPR/M/3 75/Add.1  
 
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  THE SEPARATE CUSTOMS  TERRITORY OF TA IWAN, PENGHU, KINMEN  AND MATSU – 
BATCH  2 
Report by the Secretariat - WT/TPR/S/375  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements , 2.3.1 WTO , page 34, paragraph 2.19  
China is a participant in the Information Technology Agreement (ITA) and has agreed on the 
expansion of the ITA. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, 
however, notes that since 1 January 2017, China has been imposing tariffs on the multi -component 
integrated circuit products (MCOs) classified u nder tariff lines 85423119, 85423210, 85423310, and 
85423910, which were previously subject to duty -free tariffs by virtue of China's Schedule of 
Concessions under the WTO.  
Question  
1. Based on the General Council decision of 7 December 2016, the scope of the concessions and 
other commitments shall remain unchanged when a Member is preparing the HS 2017 transposition. 
What are China's reasons for determining that it is proper to use the arithmetic average of the 
previous rates of duty of the MCO products in  question for the HS 2017 transposition?  
Reply  
As a major trader of information technology products, China has fully participated in the negotiations 
on the expansion of WTO's Information Technology Agreement (ITA) and is seriously fulfilling 
relevant comm itments. According to the rules of the World Customs Organization's Harmonized 
System 2017, China has reclassified the tariff items of multi -component integrated circuit (MCO) 
and determined the relevant tax rates based on the original tax items. The adjus tment measure 
complies with the relevant regulations on tariff shift and China's commitments to WTO. Technically, 
the rates of new tax items are determined by arithmetical average tax rate in tariff shift.  
Question  
2. Could China please provide its import data for the above -mentioned MCO products over the 
last three years?  
Reply  
Please refer to the table below for details.  
Multi -component semiconductor product (MCO)  
HS Code  (8 digit)   
USD 
(0.1 billion)  Year-on-year 
growth (%)   
Total:  193.9  . 
85423119  Other multi -component integrated circuits 
used as processors and controllers  125.7  . 
85423210  Multi-component integrated circuits used as 
memory  18.6  . 
85423310  Multi-component integrated circuit used as 
amplifier  27.1  . 
85423910  Other multi-component integrated circuit  22.5  . 
Question  
3. Please also provide a precise staging matrix, indicating when and how the tariff rates applied 
to the imports of the above -mentioned MCO products will be gradually reduced to 0%.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
As a major trader of information technology products, China has fully participated in the negotiations 
on the expansion of product coverage of the WTO Information Technology Agreement (ITA) and is 
seriously fulfilling its relevant commitments. According to the World Customs Organization's 
Harmonized System Rules 2017, China has reclassified the tariff items of MCO and determined the 
relevant tax rates based on the original tax items. The adjustment measures are in line with the 
relevant tariff conversion regulations a nd China's commitments in the WTO.  
From the technical point of view, the arithmetic average tax rate is used to determine the tax rate 
of the new tax items in the tariff conversion, which shall definitely lead to increase of the tax rates 
of some commoditi es, and decrease of other products. Therefore, compared with the HS2012, 
although the tax rates of ten MCO products have increased, the tax rates of the remaining 
seven  MCO products have dropped significantly. For example, before conversion, the tax rate of 
MCO products under HS8450.9090 is 13.3%, and under HS8415.9010 and HS8415.9090 is 8.3%, 
but only 3.4% tax rate is applied after the conversion. The two are respectively lowered by 74% and 
59%.  
China has earnestly fulfilled and will continue to fulfil it s tax reduction commitments for the 
expansion of product coverage of ITA and implement a five -year linear tariff reduction for MCO 
products. According to China's  commitment to the product expansion of ITA, the above tax items 
will be completely eliminated in July 2021.  
4. TRADE POLI CIES BY SECTOR  
4.3 Manufacturing , 4.3.2.1  Automobiles, automotive parts, and components , page 141 , 
paragraph 4.96  
In April of 2017, China announced a mid - to long -term development plan for its automobile industry. 
The plan aims, inter alia,  to: improve the innovation system and enhance the motivation for 
independent development; strengthen basic capabilities through an industrial chain system; and 
achieve a breakthrough in key areas, such as new energy vehicles, smart network cars, and energ y 
saving cars.  
Question   
4. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu understands that 
China's capacity utilization rate for auto and related industries varies widely, ranging from 60% to 
80% in 2017. Can China confirm the above in formation is correct?  
5. What is the capacity utilization rate for auto and related industries today (or over the most 
recent period for which data is available)?  
6. In the above -mentioned development plan, MIIT states that China's production of autos will  
continue to increase, estimating 30 million autos by 2020 and 35 million by 2025. What measures 
is China taking to ensure that its rapidly increasing capacity in autos and related industries does not 
harm the global auto industry?  
Reply for 4 -6 
Please ref er to China Automotive Industry Development Annual Report (2017)  and China Automotive 
Industry Development Annual Report  (2018) . 
4.3.2.2 Electronics and information technology (IT) , pages 142 -144, 
paragraph s 4.99-4.104  
The Secretariat's report notes that China established a National IC Industry Investment Fund on 
24 September 2014 to finance the Chinese IC Industry. Chinese authorities state that the fund is a 
private equity fund, the goal of which is to deliver profits for shareholders. The Secretariat's report 
also notes that Chinese authorities promulgated a set of action plans for IT and its sub -sectors from 
2016 to 2020 as set forth in Table 4.19.  WT/TPR/M/3 75/Add.1  
 
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  Question  
7. Could China please describe how it plans to achieve the goals and targets set for the action 
plans listed in Table 4.19, and the specific measures it plans to take.  
8. Please explain in detail how the National IC Industry Investment Fund operates. For example, 
how does the fund make decisions on investment target selection, investment aims, investm ent 
amounts, termination, etc.?  
9. Please provide details of the delivered profits of the National IC Industry Investment Fund 
since its establishment, which was in accordance with the Outline for Promoting the Development of 
the National Integrated Circuit Industry?  
10. Does the National IC Industry Investment Fund plan to establish a second fund? If so, what 
is the projected size of such fund?  
11. What measures is China taking to ensure that these funds do not harm the global IC industry?  
Reply for 7-11 
As told in the report of the S ecretariat, the National IC Fund is a private equity investment fund. 
Just as other international private equity investment funds, all of its investment decisions are made, 
with the responsibilities for the shareholders t aken, while the Chinese government cannot intervene 
in it. 
4.3.2.4  Iron and steel , pages 145 -148, paragraphs 4.110 -4.117  
The Secretariat's report notes that the iron and steel sector in China has continued to be 
characterized by excess capacity in recent years.  
Question  
12. What are the respective capacity utilization rates for steel and aluminium today (or over the 
most recent period for which data is available)?  
Reply  
The National Bureau of Statistics has not yet calculated or released any capacity utili zation rates of 
products, except for those of industries based on enterprises survey. In the first half of 2018, the 
national industrial capacity utilization rate was 76.7%, increasing by 0.3% over the same period last 
year, among which, such rates of smel ting and rolling process industry of ferrous metal and 
nonferrous metal were 77.7% and 79.4% respectively, increasing by respective 3% and 1.4% over 
the same period of the previous year.  
Question  
13. What amounts of excess steel and aluminium production capacity respectively are estimated 
to exist in China today?  
Reply for 12-13 
In 2018, China will complete the task of cutting overcapacity of 150 million tonnes in the iron and 
steel industry ahead of time according to the high limit objectives, and the ir on and steel capacity 
will not be excessive any more. There is no excess capacity in the electrolytic aluminium industry of 
China.  WT/TPR/M/3 75/Add.1  
 
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  Question  
14. Table 4.21 shows that between 2014 and 2016, China's new additions of crude steel capacity 
amounted to 51.2% of the total new additions among the GFSEC member economies. What are 
China's views on the likely causes of this situation?  
Reply  
During 2014 -2015, the increased capacity of iron and steel in China was mainly due to equipment 
transformation, production line updating, production line transfer, etc. The increased capacity of 
China in 2016 was zero.  
  WT/TPR/M/3 75/Add.1  
 
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  KOREA, REPUBLIC OF – BATCH  1 
Report of the Secretariat - WT/TPR/S/375  
Page 46, paragraph 3.8  
3.1.  There have been no changes in China's customs valuation rules and procedures since its 
previous review. Customs value is determined on the basis of the transaction value and, when it 
cannot be  used, the other valuations methods are used in sequential order, as stipulated in the 
WTO's Customs Valuation Agreement.  
Question 1  
According to the 2017 USTR Report to Congress on China's  WTO Compliance, many Chinese customs 
officials are still improper ly using "reference pricing " rather than transaction prices, which usually 
results in a higher dutiable value. It appears that the practice of using reference pricing is increasing. 
This practice may affect other foreign companies including Korean companie s. Please explain this 
situation to us . 
Reply  
Regarding reference pricing, since entering the WTO, China has been performing the WTO Customs 
Evaluation Agreement and determining the dutiable value of imported goods based on the 
transaction price. Where transaction price is not applicable, other valuation methods are applied 
strictly based on the sequence provided in the Agreement. This is clearly stated in relevant laws and 
regulations of the People 's Republic of China. In 2017, according to the applicab le transaction price 
appraisal method of China Customs, the proportion for determining the dutiable value of imported 
goods is 99.6%. China Customs does not use reference pricing to determine the dutiable value of 
imported goods. Related statements in the 2017 USTR Report to Congress on China's  WTO 
Compliance  do not conform to the actual situation.  
Page 50, paragraph 3.23  
In addition, duty exemptions and reductions may apply in accordanc e with the relevant regulations  
by the State Council and on goods impo rted into designated areas, for specific enterprises or for a 
specific use. For instance, imported commodities are exempt from import duties and other taxes 
when entering special customs supervision areas.  
Question 2  
Please elaborate on the relevant regula tions for duty exemptions and reductions and special customs 
supervision areas as exemplified in the text.  
Reply  
The policy of the special customs -control areas.  
In the process of adoption of C hina's reform and opening up policy, the special customs -control 
areas were gradually established for the purpose of undertaking the international industrial transfer 
for reference of definition of free trade zone in the WCO international convention on simplification 
and harmonization of customs procedur es (also called The Kyoto Treaty). In 1990 China established 
the first special customs -control area, we call shanghai wai -gao-qiao Bonded area. In order to meet 
the requirements, the development of outside -oriented economy, we have established 137 special 
customs -control areas to this day.  
1.  The main functions of the special customs -control areas.  
The business may be conducted in the special customs -control areas are the followings: processing 
and manufacturing, international trade, distribution and deliv ery, bonded warehouse, inspection and 
after-sale service, maintenance, research, development and commodity exhibition. Because of the 
early purposes of the special customs -control areas and the level of the industrial development, the WT/TPR/M/3 75/Add.1  
 
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  operation of the Spec ial Customs -control areas is mainly focused o n the processing, manufacturing , 
foreign trade,  storage and delivering and so on. The other functions are not sufficiently exercised.  
2.  The principal policy of the Special customs -control areas.  The principal polices of the special 
customs -control areas are foreign trade, tax revenue and the customs supervision policy. The 
policies of tax revenue in the special customs control areas can nearly be described as bonded, tax 
exemption, tax reimbursement when enteri ng the areas, tax collection when exiting  the areas.  
In the article 57 of the Customs Law of the People's Republic of China , it is stated that duty reduction 
or exemption shall be granted to goods imported or exported by specified areas and specified 
enter prises or imported or exported for specific purposes. The State Council will specify the exact 
items and exact rules on such reduction or exemption.  
 
  WT/TPR/M/3 75/Add.1  
 
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  KOREA, REPUBLIC OF – BATCH  2 
Report of the Secretariat - WT/TPR/S/375  
 
Page 17, paragraph 1.5  
 
According  to a report by the IMF, China has the potential to sustain strong growth over the medium 
term, although the reform process to rebalance towards less credit -intensive growth needs to be 
accelerated, while using still -sizeable buffers to smooth the transiti on.6 The report suggests that the 
Chinese authorities should: further boost consumption by increasing social spending and making the 
tax code more progressive; increase the role of market forces by reducing implicit subsidies to SOEs 
and opening more key s ectors to private investment; and further deleverage the private sector with 
continued regulatory/supervisory tightening, greater recognition of bad assets, and more market -
based credit allocation. The Government disagrees with this viewpoint and maintains  that the law 
provides for equal treatment and protection of market players. Furthermore, with regard to subsidy 
programmes, the authorities state that all enterprises, regardless of ownership, are treated equally 
and that there are no specific subsidies t o SOEs; all enterprises are entitled to receive subsidies if 
certain requirements are met. Additionally, China has taken a series of measures to help enterprises 
deleverage. These include inter alia : law-based bankruptcy, merger and restructuring, optimiza tion 
of enterprises' debt structure, and debt -to-equity swaps.  
 
Question 1  
 
As the Chinese government implements a policy of reducing corporate debt (deleveraging), the 
financing of private enterprises becomes more difficult than that of large -scale state -owned 
enterprises, and the proportion of private companies declaring bankruptcy increases. This means 
that the private sector is shrinking and the public sector is growing. This seems to be the opposite 
result from the goal of vitalizing private enterprise s pursued by the Chinese government, so how 
can the Chinese government solve this problem?  
 
Reply  
 
Reducing the leverage ratios of enterprises is one of the key tasks of supply -side structural reform. 
According to the Opinions of the State Council on Proactively Yet Prudently Lowering Enterprise 
Leverage Ratios issued in 2016, relevant departments and market entities proactively yet prudently 
promote the work related to reducing enterprise leverage  ratios and preventing and mitigating 
potential debt r isks by adopting seven comprehensive measures including promoting merger and 
acquisition, improving the modern enterprise system and strengthening self -discipline, liquidizing 
stock assets, optimizing debt structures, engaging in market -based debt -for-equity swaps with 
banks in an orderly manner, going  bankruptcy according to law, and developing equity financing. 
Under the combined effect of various measures to reduce leverage, the leverage ratio of China's 
non-financial enterprise sector has shown a stead y decline, and debt risks tend to decline. On the 
macro level, by the end of 2017, the leverage ratio of the non -financial enterprise sector was 160.3%, 
down 2.1% from the end of the previous quarter, and fell for the sixth consecutive quarters on a 
quarte r-on-quarter basis. Microscopically, the implementation of market -based debt -for-equity swap 
agreements have helped to resolve the risk of capital chain rupture of target enterprises, reduce the 
financial burdens of enterprises, and boost the development c onfidence of enterprises. The 
introduction of diversified equity investment in the mixed ownership reform of SOEs has not only 
reduced the asset -liability ratios, but also promoted the continuous improvement of corporate 
governance structures.  
 
Pages 25 -26, paragraph 1.37, Table 1.4  
 
The services deficit has been rising for a number of years, and the trend continued in 2016, with the 
deficit rising to US D 233.1 billion. The widening deficit is on account of both increasing services 
payments and declining re ceipts. Within services, payments in lieu of travel have been rising and 
accounted for nearly 58% of total services payments in 2016. On the other hand, payments on 
transport services have declined to around 18% of total services payments (Table 1.4). Serv ices 
receipts for other business services, communications, computer and information, and travel rose, 
while those for transportation, construction, and insurance and pensions declined. In 2017, the 
services deficit stood at US D 265.4 billion.  
 WT/TPR/M/3 75/Add.1  
 
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  Question 2  
In Table 1.4, "other business services " constitute the largest portion of service exports (Credits) 
among Chinese service trade. What subdivisions are included with other business services and are 
classifications of "other business services" in progress?  
Reply  
Other business services include the costs for transfer of R&D achievements and entrusted R&D; 
consulting services for law, accounting and AD etc. and management, technical services, operating 
lease services, commission of transactions in goods or ser vices and relevant services and office 
expenses of the office and representative offices etc. as well as other business services not 
mentioned above.  
Page 34, paragraph 2.19  
China has been a WTO Member since 11 December 2001. China's trade policies have be en reviewed 
six times; the previous Review took place in July 2016. China is an observer to the Committee on 
Government Procurement and is in the process of negotiating its accession to the Plurilateral 
Agreement on Government Procurement. China presented its fifth offer to the Committee in 
December 2014.16 The country is a participant in the Information Technology Agreement (ITA) and 
has agreed on the expansion of the ITA.17 It is an observer to the Plurilateral Agreement on Trade 
in Civil Aircraft. China deposited its instrument of acceptance of the Protocol of Amendment inserting 
the Agreement on Trade Facilitation (TFA) into Annex 1A of the WTO Agreement on 
4 September  2015. China notified its Category A commitments in June 2014, and its Category B 
commi tments in June 2017. China does not have any Category C commitments (Section 3.1.1).  
Question 3  
China has been negotiating on its accession to the GPA for a long period of time, but has not showed 
much progress. The delay of China 's accession to the GPA is  inconsistent with the policy direction 
pursued by the Chinese government, namely, the promotion of global open economy, and is not in 
line with China 's level of economic development and international status. Please provide us with 
China 's clear position r egarding GPA negotiations and plans for accession.  
Reply  
China is always dedicated to join GPA as soon as possible, and six offers have been submitted, and 
the range of such offer is constantly expanding. The offer level in some field is equivalent to that of 
the participants. In April this year, Xi Jinping, the President of China, announced on the Boao Forum 
for Asia (BFA) th at China will accelerate its participation in GPA, which reiterates Chinese 
Governments consistent position in participating GPA. Moreover, new prospect and requirements are 
proposed for the negotiation work, fully manifesting the decisiveness and sincerit y of Chinese 
Government in expanding openness. To implement the instructions made by Xi Jinping, the President 
of China, the offer is now improved in an overall manner by the Ministry of Finance of the People's 
Republic of China and relevant authorities un der the principle of mutual benefit and equity. The new 
offer will be submitted to WTO as early as possible. GPA is a multilateral agreement in essence. To 
participate in GPA, only the endeavor made by China on its own is far from enough, and such 
particip ation depends on the position and anticipation of the participants to a large extent. China is 
willing to actively negotiate with the participants including South Korea, to strive to realize 
mutual -benefit and win -win negotiation outcome as early as possib le. 
3.1.1 Customs procedures, valuation, and requirements, page s 45-46, paragraphs 3.4 -3.5 
Importers are required to comply with the inspection and quarantine requirements of Customs and 
the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), as stipulated 
by law and by the Catalogue of Import and Export Commodities Subject to Compulsory Inspection.2 
The Catalogue is amended every year to add or remove commodities as required to protect human, 
animal or plant health and the environment, and to prevent fraud and safeguard national security.3 WT/TPR/M/3 75/Add.1  
 
- 617 - 
 
  Enterprises are classified into different groups based on risk analysis. Customs inspection and 
supervision, including for exports, depend upon the enterprise's rating (Section 3.2.1). Goo ds 
imported by high -risk enterprises are inspected, while other exports are released through fast -track 
clearance or a "low -risk examination". Enterprises are categorized according to their credit rating 
into: authorized enterprises, enterprises of general  integrity, and dishonest enterprises.  
Question 4  
In the answers to Korea's written comments in the 6th trade policy review of China, China stated 
that it conducts customs inspections on imported pharmaceuticals by each lot as it does not carry 
out GMP ins pections on foreign manufacturers of pharmaceuticals. China also mentioned that when 
it conducts overseas on -site GMP inspections, it may consider random inspections based on risk as 
an alternative.  
As we understand that every lot of pharmaceutical product s imported into China are still inspected 
by laboratories at the Chinese customs clearance, Korea would like to ask whether there exists a 
plan to adjust the current policy of customs clearances with regard to imported pharmaceutical 
products.  
Reply  
The Announcement on Events concerning Customs Clearance and Inspection of Imported Chemicals  
(No. 12 Announcement made by CFDA in 2018) was printed and issued by the Chinese drug 
supervision authorities on 25 April 2018. It is specified in the Announcement tha t mandatory 
inspection will no longer be required for the imported chemical raw medicines and agent in batches 
during importing except for the chemicals sold in China for the first time. The drug supervision and 
administration authorities at the port will no longer provide the Notice for Port Inspection of Imported 
Drugs  during handling with the formalities for filing of imported chemicals. Port inspection will not 
be carried out by the port institute for drug control of imported chemicals.  
Page 46, paragra ph 3.8  
There have been no change s in Chin a's customs valuation rules and procedures since its previous 
review. Customs value is determined on the basis of the transaction value and, when it cannot be 
used, the other valuation methods are used in sequential  order, as s tipulated in the WTO 's Customs 
Valuation Agreement.  
Question 5  
According to the 2017 USTR Report to Congress on China 's WTO Compliance, many Chinese customs 
officials are still improperly using "reference pricing " rather than transaction prices, which usually 
results in a higher dutiable value. Indeed, it appears that the practice of using reference pricing is 
increasing. This practice may affect foreign companies including Korean companies. We would like 
you to pl ease explain this situation to us.  
Reply  
In terms of reference pricing, China has, since its accession to WTO, implemented the stipulations 
of WTO 's Customs Valuation Agreement  and determined the Customs value of import goods on the 
basis of the transactio n value. Where the transaction value is not applicable, other valuation methods 
are used in order as stipulated in WTO 's Customs Valuation Agreement , which is specifically provided 
in relevant Chinese laws and regulations. In 2017, China Customs determined  99.6% Customs value 
of import goods by transaction value. China Customs does not use reference pricing to determine 
such Customs value, and the relevant contents in the 2017 USTR Report to Congress  do not comply 
with the actual situation.  
3.1.4 Other char ges affecting imports , page 50, paragraph 3.25  
Imports, like domestically produced goods, are subject to Value Added Tax (VAT). VAT on imports 
is collected by Customs on behalf of the State Administration of Taxation (SAT) and based on the 
c.i.f. price plus the import duty. If goods are also subject to the consumption (excise) tax, VAT is WT/TPR/M/3 75/Add.1  
 
- 618 - 
 
  calculated including the consumption tax. VAT on goods has two rates: 11% (down from 13% in 
July 2017) and 17%. The lower rate applies to various food products, agricul tural machinery, and 
books. The list of products that are exempt from VAT has not changed since the previous review. 
Domestically produced agricultural products sold directly by the producer continue to be exempted 
from VAT, while imported goods are not. A ccording to the authorities, the main beneficiaries of this 
provision are small -scale farmers.  
Question 6  
In its response to the question regarding the differences in registration fees between domestic and 
imported medical devices, China replied that it would re -evaluate and adjust the standards for 
registration fees for drugs and medical devices every five years. Korea would like to ask once again 
about China 's opinion and plan on the re -evaluation of the registration fees standards and separating 
on-site inspection costs from the registration fees for medical devices.  
Reply  
Firstly, the competent authorities for charging policies in China are National Development and 
Reform Commission and the Ministry of Finance of the People's Republic of China and we o nly have 
the right to make suggestions;  
Secondly, the previous adjustment in charging policies was made in 2015. According to the principle 
of adjustment per five years, the next adjustment shall be made in 2020 in case of no special 
circumstances;  
Thirdly, China is now under the reform of the system for review and approval of the medicine and 
medical apparatus and instruments. With the gradual progress in such reform, the supervision on 
such medicine and apparatus and instruments will face in -depth adjustment. Correspondingly, the 
charging policies shall be adjusted with the adjustment made in such reform. In the current charging 
policies, whether the field inspection expenses can be listed separately from the registration charges 
depends on the lega lization progress for adjustment of relevant supervision work.  
Page 50, paragraph 3.23  
In addition, duty exemptions and reductions may apply in accordance with the relevant regulations 
by the State Council and on goods imported into designated areas, for s pecific enterprises or for a 
specific use. For instance, imported commodities are exempt from import duties and other taxes 
when entering special customs supervision areas.  
Question 7  
Please elaborate on the relevant regulations for duty exemptions and red uctions and special customs 
supervision areas as exemplified in the text.  
Reply  
1. The policy of the special customs -control areas.  
In the process of adoption of C hina's reform and opening -up policy, the special customs -control 
areas were gradually establi shed for the purpose of undertaking the international industrial transfer 
for reference of definition of free trade zone in the WCO international convention on simplification 
and harmonization of customs procedures (also called The Kyoto Protocol). In 1990  China 
established the first special customs -control area, which we call Shanghai Wai -gao-qiao Bonded 
Area. In order to meet the requirements for the development of export -oriented economy, we have 
established 137 special customs -control areas to this day.  1. The main functions of the special 
customs -control areas. The business that may be conducted in the special customs -control areas 
includes: processing and manufacturing, international trade, distribution and delivery, bonded 
warehouse, inspection and af ter-sale service, maintenance, research, development and commodity 
exhibition. Given the early purposes of the special customs -control areas and the level of the 
industrial development, the operation of the Special Customs -control areas is mainly focused o n the WT/TPR/M/3 75/Add.1  
 
- 619 - 
 
  processing, manufacturing, foreign trade, storage, delivering and so on. The other functions are not 
sufficiently exercised.  
2.  The principal policy of the special customs -control areas.  
The principal polices of the special customs -control areas ar e foreign trade, tax revenue and the 
customs supervision policy. The policies of tax revenue in the special customs control areas can 
basically be described as bonded, tax exemption, tax reimbursement for entering the areas, and tax 
collection for exiting the areas.  
According to Article 57 of the Customs Law of the People 's Republic of China , Duty reductions or 
exemptions may apply to goods imported to designated areas, for specific enterprises or for specific 
uses. The scope and methods of specific duty reductions or exemptions shall be p rescribed by the 
State Council.  
3.1.5 Import prohibitions, restrictions, and licensing , page 52, paragraphs 3.27 -3.28 
Question 8  
To be licensed as a medical devices test laboratory in China, an applicant should be tested only in 
the designated domestic test laboratories according to the Article 57 of Regulations on Supervision 
and Administration of Medical Devices (the State Council Order No.  650). As the current regulation 
causes delays in the approval of new products, Ko rea would like to ask CFDA on whether it has a 
plan to recognize test reports issued by internationally accredited laboratories in order to be 
harmonized with international practices.  
Reply  
according to Clause 3 of Article 11 in the current Regulations on Supervision and Management to 
Medical Instruments  (State Council Order No. 680), the production inspection report in the material 
for application for registration of the class -II/III medical treatment appliances shall be the inspection 
report issued by the  inspection institutions for medical apparatus and instruments. On 25 June 2018, 
the notice on seeking public opinions of the Regulations for the Supervision and Administration of 
Medical Devices (Draft Amendment for Review)  was issued by the Ministry of J ustice of the People's 
Republic of China. In the notice, the above terms are deleted, and the requirements for inspection 
report in the material for application for registration are modified as: the inspection report of 
products may be a self -check report made by the applicant for registration of medical apparatus and 
instruments or an inspection report issued by the qualified inspection institutions for medical 
apparatus and instruments entrusted. For the next step, after the Regulations for the Supervisio n 
and Administration of Medical Devices (Amendment)  are implemented, CFDA will adjust the 
requirements for inspection reports in the material declared for registration.  
Page 55, paragraph 3.39  
MOFCOM is the agency responsible for initiating and conducting AD investigations, and determining 
the existence of dumping and of injury, and their causal link. There have been recent internal 
changes within MOFCOM with respect to the responsibilities assigned to its different bureaux. In 
April 2014, the Trade Remedy and Investigation Bureau (TRB) was established within MOFCOM. The 
TRB is responsible for AD, countervailing duty, and safeguards investigations and determinations. 
The exceptions to this are AD investigations involving agricultural products, where the inju ry 
investigation is conducted jointly by MOFCOM and the Ministry of Agriculture.  
Question 9  
Could China please explain with more detail how the Ministry of Agriculture jointly conducts 
AD investigations involving agricultural products with MOFCOM?  WT/TPR/M/3 75/Add.1  
 
- 620 - 
 
  Reply  
According to Article 7 of Regulations on Anti -dumping, Ministry of Commerce is in charge of the 
investigation and determination of injury. MOFCOM works jointly with the Ministry of Agriculture and 
Rural Affairs when the injury investigations involve agricu ltural products.  
Page 72, paragraph 3.118  
The procedures to formulate national standards are laid down in the Measures on Administration of 
National Standards, Order No. 10 of 24 August 1990. The formulation process is mainly in public 
hands, while the re spective industry plays a supportive role. The development of national standards 
is organized by the SAC, through a process that comprises a number of steps: a pre -research stage, 
project initiation, drafting of the proposed standard, opinion solicitation,  examination of the technical 
contents, approval, and publication. National standards are published in the Standard Press of China. 
They are reviewed after five years of implementation to confirm whether they are still valid and 
required as they stand, or if they need to be amended or annulled. If it is decided that the standard 
should be annulled, a Notice of Annulment is issued. If it is retained, the results of the review are 
made public, and any modification to the standard listed in the National Standa rds Development and 
Revision Plan.  
Question 10  
Does China allow persons from other Parties outside China to participate in the development of 
national standards in China?  
Reply  
China needs a clarification on ‘other Parties’.  
Question 11  
When does China give notice to WTO members if China decides to amend the national standards in 
the National Standards Development and Revision Plan? Does China provide sufficient time for the 
WTO Members between the notification and its entry into force?  
Reply  
If the revi sed national standard is mandatory, we will, prior to the approval of releasing the standard, 
follow the notification procedures for mandatory standard in accordance with WTO 's requirements, 
with a notification duration of 60 days.  
Page 74, paragraph 3.128  
China's compulsory product certification system, which applies to both domestic products and 
imports, was established in 2001 to enforce product compliance with technical requirements. The 
products subject to compulsory product certification are listed in  the Compulsory Product 
Certification Catalogue (CCC Catalogue); they cannot be sold in China or imported without China's 
Compulsory Certificates (CCC) and the corresponding CCC marks. The CCC certification system is 
mainly based on national compulsory sta ndards. The products that have been listed in the 
compulsory certification directory may only leave the factory, be sold, imported, and used in other 
business activity after they have been certified and labelled.  
Question 12  
As the CCC Catalogue has often  changed, we would like to receive an English version of the new 
CCC Catalogue list. Also , could China let us know how often changes are made to the list of CCC 
required products?  WT/TPR/M/3 75/Add.1  
 
- 621 - 
 
  Reply  
Firstly, the latest Catalogue Description and Definition Form of Compu lsory Product Certification  was 
issued in 2014 (CNCA [2014] Announcement No. 45), and has been adjusted for several times with 
the details as follows:  
1. The Announcement on Issuing CCC Certification Implementation Rules of Helmets for 
Motorcyclists and De vices for Household and Similar Purposes  (CNCA [2017] No. 32) included the 
helmet for motorcyclist and electric blanket in CCC certification.  
2. The Announcement on Reform and Adjustment of Compulsory Product Certification Catalogue 
and Implementation Meth ods (State Administration for Market Regulation and CNCA [2018] No. 11) 
excluded some products from CCC certification.  
3. The Announcement on Issuing the Implementation Rules of Compulsory Product Certification 
for Electric Bicycle  (CNCA [2018] No. 31) inc luded the electric bicycle in CCC certification.  
The official English version of the Catalogue Description and Definition Form of Compulsory Product 
Certification  is not available at present.  
Second ly, the frequency of changes to the list of CCC product certification catalogue is not fixed.  
3.3.2 Standards and other technical requirements , 3.3.2.1 Overview , page 74, 
paragraph  3.124  
In the Committee of Technical Barriers to Trade, between January 2016 and February 2018, 
22 specific trade concerns (STCs) were raised by Members regarding TBT measures maintained or 
planned by China, including 13 new STCs.81 These STCs refer to a wide range of issues, including 
specific product regulations (cosmetics, medical products, furniture, chemicals, vehicles, coal) an d 
new legislation on standards and cybersecurity.  
Question 13  
While domestic cosmetics do not need to be approved prior to their entry in the market, imported 
cosmetics are required to obtain approval. This discriminatory regulation is against the principa ls of 
national treatment in the WTO agreement. What is more, for the approval, it is necessary to obtain 
test reports available from only a few Chinese laboratories which leads to the delay of a new products 
release on the market in China. Korea requests C FDAs answer as to whether it has a plan to 
recognize in -house test reports of exporting countries in order to achieve regulatory harmonization 
with international practices.  
Reply  
Since safety supervision is mainly carried out for finished products of the imported cosmetics, the 
mode similar to full -course management from R&D to production and circulation adopted for 
domestic cosmetics is impossible. According to the requirements in current regulations for cosmetics 
in China, the review and approval managem ent is now adopted for the imported cosmetics. It shall 
be noticed that even though there is certain difference in the management mode of the imported 
cosmetics not for special purpose and the domestic cosmetics not for special purpose, the handling 
in res pect of requirements for declaration data (including the inspection report of products) and 
safety and technical standards is completely identical, to guarantee the equity. Since 2017, 
according to the requirements of overall deployment in the separating l icence from certificate reform 
launched by the State Council, pilot reform for the imported cosmetics not for special purpose has 
been launched in Shanghai Pudong New District and ten other free trade pilot zones successively in 
China. The review and appro val management of such cosmetics is adjusted into filing management. 
Meanwhile, based on the principles of safety and risk management, identical management mode 
and philosophy for both the imported and domestic products are proposed in the Regulations 
concerning the Supervision and Administration over Cosmetics (Draft Amendment for Review)  under 
revision. In other words, registration management is adopted for special cosmetics, while uniform 
filing management is adopted for ordinary ones.  WT/TPR/M/3 75/Add.1  
 
- 622 - 
 
  3.3.2.2 Product ce rtification , page 74, paragraph 3.127  
No changes have taken place in the laws and regulations governing China's certification system since 
its previous review. China administers both a voluntary certification system and a compulsor y 
product certification s ystem. The China National Certification and Accreditation Administration 
(CNCA), under AQSIQ, manages both systems. Certification and accreditation are regulated by: the 
Product Quality Law; the Import and Export Commodity Inspection Law; the Regulations o n 
Certification and Accreditation; the Regulations on Compulsory Product Certification82, as well as the 
Measures for the Administration of Certification Bodies; the Measures for the Administration of 
Certification Certificates and Certification Marks; the  Measures for the Administration of Organic 
Product Certification; and the Measures for the Administration of Energy  Saving and Low -Carbon -
Emission Product Certification.  
Question 14  
China is in the process of introducing the official certification requirements for imported food that 
requires the government certification of the exporting country to all food shipments imported into 
China. Requiring a certification for low risk imported food including processed and shelf -stable food 
is inconsistent wit h Codex guidelines and principles. As a number of member countries including 
Korea have submitted comments on this regulation, we request China to share the draft regulation 
that reflects member countries comments and notify it to the WTO SPS Committee. In  addition, we 
ask China to provide us with a future timeframe for the introduction of the regulation.  
Reply  
The Measures for the Administration of Certificates Attached to Foods Exported to China (Draft) is 
under revision. Establishing a scientific and eff ective certificate system is an effective measure to 
ensure food safety, fulfill international obligations and promote trade development. China also hopes 
to cooperate with relevant parties in the process of developing the Measures  to make it more 
scientif ic, effective and conducive to trade.  
3.3.3  Sanitary and phytosanitary requirements , page 76, paragraph 3.140  
Foreign enterprises that manufacture, import, process and store food must be registered with the 
CNCA before their food products are imported into  China.88 In addition, the 2015 Food Safety Law 
stipulates special regulations for certain food or food -related products (e.g. supplements89, "formula 
food for special medicinal purposes"90; and infant and follow -up formula and other special foods), 
which are subject to supervision and administration. Enterprises producing these products must fulfil 
special registration or record -filing formalities, establish a production quality management system, 
and submit a "self -inspection" report to the food and drug administration of the local government. 
Pursuant to the Food Safety Law, food importers also must establish a food and food additives import 
and sales record system to record, inter alia : the name of the product, its specifications, quantity, 
date of production, and production and import batch number; the shelf life of the product and food 
additives; and the name, address and contact details of the exporter. Registration and record -filing 
formalities vary according to the product.  
Question 15  
Dairy product exporters to China should register in CNCA and renew their registration every 
five years according to the AQSIQ Decree 145 for the Registration of Overseas Manufacturers of 
Imported Food. A ccording to CNCAs Announcement No . 2018-9, all registrations issued to foreign 
infant and follow -up formula manufacturers lapse four years after the initial registration, so a 
manufacturer that registered before 2014 should apply for a renewal of their reg istration by the end 
of 2018. We would like to inquire as to the renewal process.  
15.1 Is it possible for infant and follow -up formula manufacturers to submit their documents for 
the registration renewal through the 'FOOD ENTERPRISE REGISTRATION ' page on t he CNCA 
website ( http://cifer.cnca.cn )? 
 WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to the requirements of the Announcement of the Certification and Accreditation 
Administration of China on Matters Concerning the Renewed Registration of Overseas Manufacturers 
of Imported Infant Formula Dairy Products  ([2018] No. 9), an enterprise can apply for registration 
renewal in writing in line with the required format (format of renewed registration application), and 
log into the system of China Import Food Enterprise Registration ( http://cifer.cnca.cn ) to update or 
supplement their relevant registration information.  
Question  
15.2 If it is possible for manufacturers to submit documents on the abovementioned page on the 
CNCA website, will the registration number for a foreign manufacturer automatically become 
the serial number? If not, how is a serial number granted to a manufacturer?  
Reply  
Please refer to China Import Food Enterprise Registration  Procedures of Applying for Registration 
Renewal 
(http:www.cnca.cn/bsdt/ywzl/jkspjwscpqzc/tzgg/201804/P020180726363793910055.pdf).  
The sequence number will be distributed by foreign competent authority. The sequence number is 
the supplement information numb er. The registration application number is a unique enterprise 
number generated by CIFER system, which can be viewed or retrieved through public inquiry after 
supplementation. And the registration number is the sole number given to the enterprise by foreig n 
competent authority.  
Question  
15.3 Is it possible to submit the documents for registration renewal in English or Chinese? And is 
there any established format that must be used when submitting the data?  
Reply  
The relevant submittals shall be in Chinese or English. Please refer to the Announcement of the 
Certification and Accreditation Administration of China on Matters Concerning the Renewed 
Registration of Overseas Manufacturers of Imported Infant Formula Dair y Products  ([2018] No. 9, 
http://www.cnca.cn/xxgk/ggxx/2018/201803/t20180314_56465.shtml ) for invitation of submitting 
materials.  
Question  
15.4 Should a manufacturer submit the original documents separately after submitting the 
documents online?  
Reply  
The enterprise is also required to submit relevant documents after submitting the documents on 
CIFER.  
Question  
15.5 Does a manufacturer only have to apply for the renewal of registr ation by the end of 2018 or 
should the renewal process be completed by the end of 2018?  
Reply  
The enterprise has to apply for registration renewal by the end of 2018.  WT/TPR/M/3 75/Add.1  
 
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  Question  
15.6 How long does it take from the acknowledgement of the renewal application t o the renewal of 
the registration?  
Reply  
After the acknowledgement of the renewal application, the list will be updated and released within 
20 working days upon the review and approval in line with normal formalities.  
Question  
15.7 Does China have a plan to hold an information session on the renewal of registration?  
Reply  
No intensive feedback or consultation is received after releasing the announcement. Should any 
foreign authorities in charge have questions about the registration renewal, they may consult the 
Registration Department of CNCA.  
Page 88, paragraph 3.186  
The authorities indicate that SOEs are subject to the same tax rates as private companies. The 
authorities also indicate that SOEs do not have preferential access to certain inputs such as electricity, 
land, raw materials, or credit.  
Question 16  
We see that China has decided to nurture semiconductor companies by establishing a 'National 
Semiconductor Industry Investment Fund' worth about 180 billion USD, aiming to raise the 
semiconductor self-sufficiency rate to 70% by 2025. As part of this policy, China has just recently 
bought and nationalized three semiconductor companies. We want to know whether these 
state-owned semiconductor companies also do not receive preferences for the procureme nt of 
electricity, land, raw materials and credit, as is mentioned in the text. Are there any other 
preferences granted to these state -owned enterprises except access to electricity, land, raw 
materials and credit?  
Reply  
Over nearly 40 -year reform and deve lopment, separation from government and enterprises and 
separation from government and assets have been gradually realized in China. The laws in China 
and the government supervision treat the enterprises of various ownership systems equally without 
discrim ination, and the state -owned enterprises have become independent market subjects. 
Currently, most of the assets of central enterprises are concentrated in the listed companies, the 
profits of which mainly come from operation revenue, capital appreciation a nd income from 
investment. The increment of enterprises benefits is from market exploitation, technical innovation 
and improvement of management level. There are no available provisions concerning subsidies for 
the state -owned enterprises currently in laws  and regulations in China, so the state -owned 
enterprises will not enjoy the subsidies based on ownership.  
Since credit is independent behaviour of the market subjects, the Chinese Government will not get 
involved. For the commercial bank loans, not only the unitary index such as net assets income rate 
of enterprises shall be considered, but also comprehensive factors such as debt paying ability in the 
future, reputation and sustainable development etc. The current difference between the loan line of 
enter prises and interest rate in practice is the independent behaviour made by the commercial banks 
based on their own judgment for the market rather than ownership.  WT/TPR/M/3 75/Add.1  
 
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  Page 89, paragraph 3.189  
The Anti -Monopoly Law (AML) allows SOEs to exercise exclusive activiti es in sectors considered vital 
for China's economy and to safeguard national security (Section 3.3.4). Exclusive production and 
sales rights may also be granted in accordance with Article 7 of the AML.  
Question 17  
According to the text, antimonopoly laws e xclusively guarantee the exclusive production and sales 
rights of state -owned enterprises for industries considered important to their economy. Does this 
also apply to the semiconductor industry? Will increasing the self -sufficiency ratio of semiconductors  
to 70% by 2025 mean that China will grant such exclusive rights to state -owned enterprises in the 
future? However, on 31 May, an antitrust investigator visited Samsung Electronics, SK Hynix and 
Micron offices in China to conduct an antitrust investigation  on semiconductor price fixing. Korean 
companies have factories in Xian and Wuxi in China, and investments to expand their capacity are 
continuously been made. For the long -term decision -making ability of the enterprises, we ask that 
China explain this mat ter in greater detail.  
Reply  
The Chinese anti -monopoly law enforcement agencies have conducted anti -monopoly investigations 
on two Korean semiconductor companies based on the reporting clues. Such law -based 
investigations are fair, transparent and not affected by other factors, and both companies have the 
right to full plea. These agencies will handle the case on the basis of facts and laws.  
Page 92, paragraph 3.198  
The Government Procurement Law retained its "buy-domestic " (Article 10) provision when i t was 
amended in 2014. The provision requires that procuring entities purchase domestic goods, 
construction projects and services, except in circumstances where: (i) the goods, construction, or 
services required are unavailable in China or, if available, c annot be procured on reasonable 
commercial terms; (ii) the goods, construction, and services are procured for use abroad; or 
(iii) where otherwise provided for by other laws and administrative regulations.  While there have 
not been official criteria for de fining domestic products, the authorities' state that the Government 
adopts the same rules when treating domestic and foreign -invested enterprises, and in practice 
China provides non -discriminatory and equal treatment to all products manufactured in China 
regardless of the degree of foreign affiliation or ownership of producers. The Administrative Measures 
on Government Procurement of Imported Products (issued by the Ministry of Finance, 
27 December  2017) require pre -approval for procurement of imported pro ducts.119 The authorities 
state that there are no data on actual government procurement, including goods, services and 
construction services that are sourced domestically.  
Question 18  
The report describes three exceptional circumstances, however some of these provisions are unclear. 
What does "on reasonable commercial terms " in the first exception mean? Please explain the 
third exception in detail.  
Reply  
Reasonable commercial clauses ma inly refer to reasonable commercial conditions, such as price and 
service guarantee etc. The third is save clause.  WT/TPR/M/3 75/Add.1  
 
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  Question 19  
There are three exceptions (Non -availability, Unreasonable cost, Public interest) to "Buy American " 
and each exception describes the details1. Are there any other exceptions and detailed criteria in 
China 's "Buy-domestic "? (Such as Unreasonable cost, Public Interest)?  
Reply  
Exceptions are specified in Article 10 of the Government Procurement Law of the People's Republic 
of China ; detailed standards are now under research and formulation.  
Page 97, paragraphs 3.221 -3.223  
The "China Manufacturing 2025" strategy highlights the importance of IP protection and 
enforcement, in particular in Sections 2.4 and 4.3 . 
Furthermore, on 15 March 2017, the 5th Plenary Session of the 12th National People's Congress 
adopted General Provisions of Civil Law, as a development of the PRC General Principles on Civil Law 
enacted in 1986. The Provisions entered into force on 1 Oct ober 2017; according to the authorities, 
the Provisions are the first piece of Chinese legislation to explicitly mention GIs and other IP subject 
matters.  
China's main laws and the respective amendments concerning IPR have remained largely unchanged 
since its previous Review (Table 3.24) . 
Question 20  
Despite China 's amendment of the Civil Law in 2017, Chinese legislation regarding intellectual 
property rights has not been improved, with both major countries and companies facing serious 
difficulties regardin g this matter. Please inform us as to the Chinese government's plans to amend 
legislation relating to intellectual property rights.  
Reply  
China is now actively revising the Patent Law , and the Amendment to the Patent Law of the People 's 
Republic of China ( Draft)  has been reported to the State Council executive meeting for review in 
June 2018. After approval, it will then be submitted to the National People's Congress for review.  
The solicitation of the Copyright Law of the People 's Republic of China (Revise d Draft for Review)  
has been accomplished again, and this law will be further revised and reviewed together with the 
confirmed institutional restructuring scheme of the National Copyright Administration.  
Page 99, paragraph 2.232  
During the period under review, patent applications and grants continued to increase rapidly. In 
2016, Chinese citizens filed 1,204,981 patent applications for inventions, among which 
302,136  were granted; 631,949 patent applications for industrial designs, among which 429,710 
were granted; and 1,468,295 applications for utility models. The number of patent applications filed 
by Chinese citizens through the Patent Cooperation Treaty increased from 30,548 in 2015 to 44,992 
in 2016 (Table 3.27).  
Question 21  
All applications for util ity models are accepted in China, which may result in inappropriate or low -
level patents. Recently critics say the legitimate holders of poor utility models in China are raising 
objections to other rightful foreign companies, constituting non -tariff barrie rs. Could China please 
                                                
1 The Chinese's government has put large sums of its fund in the  AIIB for mobilising fund and money to 
appropriate projects.   WT/TPR/M/3 75/Add.1  
 
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  explain whether there are any measures to detect poor utility models and restrain the legitimate 
holders of poor utility models from exercising their rights?  
Reply  
According to Chinese patent laws, perfect review system and follow -up legal procedures are available 
for the application of utility model to ensure the patent licensing quality and the reasonable use of 
patent right.  
Firstly, preliminarily review the utility model patent application, which is not the full authorization. 
Not only the format of application document, but also the obvious material defects are involved in 
review, such as whether the subjects of patent licensing are complied, whether the detailed 
description obviously lacks full disclosure, and whether the claims obviously lack novelty based on 
the prior art information of examiners. After preliminary review, some non -compliant applications 
will be rejected at this stage. (Article 40 of the Patent Law  and Article 44 of the Rules for the 
Implementation of the Patent  Law) 
Second ly, set procedures of announcement of invalidation after licensing. If any organization or 
individual believe that the licensing of the utility model does not comply with the Patent Law , such 
as that the patent is not novel or creative, may req uest the Patent Re -examination Board to declare 
patent invalidity. (Article 45 of the Patent Law ) 
Thirdly, establish the patent right assessment and report system. Where a utility model patent is 
involved in a controversy over patent infringement, the People 's Court or the department in charge 
of patent management can ask the patentee or the interested party to present the assessment report 
on patent right made by the State Intellectual Property Office (SIPO). SIPO will search the related 
utility model patents according to the patentees or interested parties request, and then make an 
analysis and assessment whether the patent conforms to the conditions of authority specified by the 
Patent Law and its Implementing Rules, and make an assessment report on p atent right. The 
assessment report on patent right is an evidence for the People 's Court or departments for patent 
management to judge and deal with controversy over patent infringement. (Article 61(2) of the 
Patent Law)  
Page 143, paragraphs 4.100 -4.101  
The authorities state that the Government provides no subsidies specific to the electronics and IT 
sector. The Development Fund for Electronics, which was established in 1986 with a view to 
supporting R&D activities in software, integrated circuits and other  IT industries67, was abolished in 
early 2015.  
The Outline for Promoting the Development of the National Integrated Circuit Industry was published 
on 24 June 2014, which identified the goals of: raising revenue of the integrated circuit industry to 
over RMB 350 billion by 2015; an annual rate of revenue growth of over 20% by 2020; and becoming 
the leading power in the integrated circuit industry. The Outline also highlighted priority tasks, 
including the establishment of the National Leading Group for the  Development of Integrated Circuits 
Industry, the initiation of the National Integrated Circuit Industry Investment Fund, and the 
promotion of safe and reliable hardware and software. In accordance with the Outline, the National 
IC Industry Investment Fund  was established on 24 September 2014 to finance the IC industry. The 
authorities state that the Fund is a private equity fund, and the goal of the Fund is to deliver profits 
for shareholders; investment decisions are accountable to shareholders.  
Question 22 
Could China please elaborate more upon the difference in roles between the abolished "Development 
Fund for Electronics " and the newly created "National Integrated Circuit Industry Investment Fund "? WT/TPR/M/3 75/Add.1  
 
- 628 - 
 
  Reply  
As a private equity fund, the industrial investment fund for national integrated circuits aims at 
striving for profits for the shareholders, and all the investment decisions made are for the benefit of 
the shareholders only.  
4.3.2.3 Machinery and equipment, page 144  
On 26 April 2016, the authorit ies issued the Robotics Industry Development Plan for 2016 -2020. 
The plan proposed policy measures in six areas: (1) strengthening overall planning and resources 
integration; (2) increasing financial support; (3) expanding financial channels; (4) building a good 
market environment; (5) reinforcing the development of talent; and (6) expanding international 
exchanges and cooperation. According to the authorities, these policies treat domestic and foreign -
invested enterprises equally. The purpose of these poli cies is to guide enterprises in developing 
robots efficiently and promoting healthy and orderly development of the industry. The Plan identified 
the specific goals of producing 100,000 robots per year and increasing the market share of key 
components to 50 % by 2020.  
Question 23  
Could China please explain more about the government's financial support policy for the robot 
industry?  
Reply  
In recent years, the Planning for Industrial Development of Robot (2016 -2020) , the Notice on 
Promoting Sound Development of  the Robot Industry , Industrial Regulations and Conditions for the 
Industrial Robot  and Methods for Standardized Management of the Industrial Robot Industry  etc. 
are printed and issued by the Ministry of Industry and Information Technology of the People's 
Republic of China and relevant authorities successively, aiming at standardizing the industrial order 
of the robot, promoting sound and orderly development of such industry. Policies and measures in 
respect of the followings are mainly proposed in the Planning: enhancing overall planning and 
resources integration, creating a favourable market environment, expanding international exchange 
and cooperation etc. These policies are made for both the domestic -funded and foreign -funded 
enterprises. However, the Notice, the Industrial Regulations and Conditions  and the Methods  are 
mainly formulated for the concerns such as low level and repetitive hidden danger of the robot 
industry etc., aiming at guiding rational and orderly development of enterprises.  
According to the data issued by IFR, 141,000 industrial robots were sold in China in 2017, among 
which 103,000 were from foreign -funded brands, with a year -on-year increase of 71.9%, accounting 
for 73.2% of the total sales volume of robots. It is known that world -famous enterprises for robots 
such as ABB, FANUC, Yaskawa and Kuka have all settled in China, and favourable returns on 
investment have been obtained.  
Page 160, paragraph 4.176  
In 2017, there were 244 foreign representative offices employing 594 foreign lawy ers. Their total 
turnover in 2016 reached RMB 6,373 million. China has allowed foreign lawyers to be hired as foreign 
legal consultants by Chinese law firms in Beijing, Shanghai and Guangdong, a measure which is still 
in a pilot stage. At present, no forei gn lawyers have served as legal consultants for Chinese law 
firms.  
Question 24  
Could China please explain why as of yet no foreign lawyers have been employed as foreign legal 
consultants by Chinese law firms in Beijing, Shanghai and Guangdong, although suc h employment 
is allowed in those areas?  WT/TPR/M/3 75/Add.1  
 
- 629 - 
 
  Reply  
No application for employing foreign lawyers to act as the legal counsels is proposed by Chinese law 
offices in Beijing, Shanghai and Guangdong.  
Page 161, paragraph 4.184  
Foreign representative offices must hav e three years of presence in one location before being allowed 
to open a second office in another city.  
Question 25  
Could China please explain the purpose behind the regulation that foreign representative offices 
must have three years of presence in one location before being allowed to open a second office in 
another city?  
Reply  
Practising activities of the representative offices in China over ten years show that one representative 
office averagely needs three  years from licen ce obtaining and business sta rting to normal operation. 
Adding one more representative office shall have a transition time on the basis of this experience. 
As an industry with high professional requirement, the law industry has played a key role in 
protecting the social public during the government agency 's supervision. Hence, the three -year 
requirement is a standard management behavio ur for business activity at the representative office 
in the current environment, and a necessary measure for taking responsible for the social public 
benefits. Meanwhile, it is understood that cancellation of the quantity limitation by the schedules of 
concessions does not mean cancellation of the industrial administration authority of the competent 
authorities by its positions. The three -year requirement  is a management behaviour, which does not 
mean quantitative limitation for establishment of representative offices.  
Page 162, paragraph 4.185  
In terms of procedure, a foreign law firm shall, when applying to establish a representative office in 
China, submit application documents to the judicial administration department of the government 
of the province, autonomous region or municipality directly under the Central Government where 
the proposed representative office is to be domiciled. The judicial admi nistration department of the 
government of a province, autonomous region or municipality directly under the Central Government 
shall, within three months of receiving the application documents, complete the examination, and 
submit the examination opinion a nd the documents to the judicial administration department under 
the State Council for examination. The judicial administration department of the State Council shall 
render a decision within six months; and shall grant a law practice licence to the represe ntative 
office that has been approved and a law practice certificate to its representative.  
Question 26  
According to the review, it may take up to nine months to establish a representative office for a 
foreign law firm. Could China describe the internal pr ocess in detail, and is it possible that the 
examination period may be shortened by law?  
Reply  
Foreign law firms shall submit the application materials to judicial administration departments of the 
provincial, autonomous regional and municipal people's gov ernments when applying for setting up 
representative organizations or dispatching the representatives in China. The judicial administration 
departments of provincial, autonomous regional and municipal people's governments shall make a 
review within three  months from the date of receiving the application documents, and submit the 
options of examination and documents to the Judicial Administration Department of the State Council 
for approval. The Judicial Administration Department of the State Council for app roval shall make a 
decision within six months, present the licen ces to the established representative organizations, and 
issue practising certificates to their representatives. In practice, the period for approving the WT/TPR/M/3 75/Add.1  
 
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  representative offices set up by the foreign law firms and dispatching the representatives shall be 
shorter than nine months.  
Page 162, paragraph 4.189  
Question 27  
Could China please explain why there are only about 20 foreigners out of the 110,000 holders of the 
Chinese CPA qualification?  
Reply 
The nationality -based standard is not applied to the test registration of Chinese Certified Public 
Accountants. By the end of 2017, three overseas exam areas, namely : Hong Kong, China;  
Macao,  China;  and Brussels, Belgium, have been set up, since the opening -up of the Exam for 
Chinese Certified Public Accountants. A total of 32,000 registrations for examination have been 
received from foreigners as well as people from : Hong Kong, China; Macao, China;  and 
Chinese  Taipei.  There were 1,036 registrations for examination in 2017. Foreign personnel enjoy the 
national treatment for issuing certificates upon passing the exam.  
Page 163, paragraph 4.196  
Foreign firms, in particular the "big four", dominate the m arket of the audits of Chinese companies 
listed on international stock exchanges, whereas local firms dominate that of companies listed on 
local stock exchanges. The total annual business revenue of the "big four" accounting firms was 
about US D 2.1 billion  in 2016, accounting for about 18.5% of the total revenue of China's CPA 
industry. Although the major large accounting firms have already joined or created international 
accounting networks, they are legally separate entities, and are not subordinate to an y foreign 
accounting firms or part of any foreign accounting firms.  
Question 28  
Could China please explain why the major large foreign accounting firms in China operate as legally 
separate entities independent from their parent firms outside China? Is this  enforced by Chinese 
law? 
Reply  
On the one hand, the current accounting firms (including PwC, DTT, KPMG and EY) in China are all 
incorporated as per the laws in China. Even though the main large accounting firms join or establish 
their own international ac counting network, they are still independent entities legally. Consequently, 
there is no relationship of administrative subordination with foreign accounting firms. In other words, 
they are not attached to foreign accounting firms, so the concept of parent  company does not exist. 
It is known that the foreign accounting firms mentioned in the Report of the Secretariat shall be the 
accounting firms incorporated in China with foreigners serving as the partners or shareholders.  
On the other hand, in order to e xpand overseas business and participate in international competition, 
the accounting firms will join the international accounting network or establish their own networks. 
That is a commercial behaviour of such firms, and is also a conventional practice of accounting firms 
in all countries.  
Report by China - WT/TPR/G/375  
Page 9, paragraph 3.31  
Establishing Pilot Free Trade Zones (pilot FTZs) is a major movement of the Chinese government to 
further the reform and opening up under new development circumstances . It aims at accelerating 
transformation of government functions, searching for innovative modes of administration and 
management, promoting trade and investment facilitation, and exploring new ways, means and 
experience for deepening reform and opening up  in an all -round manner. Since 2013, China has 
successively established pilot FTZs in 11 provinces and municipalities including Shanghai, WT/TPR/M/3 75/Add.1  
 
- 631 - 
 
  Guangdong, Tianjin, Fujian, Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan and Shaanxi, 
and has made positive pr ogress in various reform areas.  
Question 1  
China 's Pilot Free Trade Zones were established in Shanghai in September 2013, with the number 
increasing to four in 2015, and eleven in 2017. Such a gradual expansion indicates that the PFTZs 
are a regional development strategy based on liberalization. In this case, the provinces and cities 
that are not included in PFTZs will have complaints and will make efforts to be included in the PFTZs. 
Please inform us as to the details of China 's plans to expand PFTZs,  as well as plans and the 
significance of pursuing a Hainan free trade port.  
Reply  
Construction of the free trade pilot zone in the entire Hainan Island is a major decision made by the 
Party's Central Committee through in -depth research, overall considerat ion and scientific planning 
proceeding from the development situations at home and abroad, and it is a significant move to 
manifest the Chinese Governments resolution in expanding opening -up and actively promoting 
economic globalization. It is pointed out by Xi Jinping, the President of Chinese Government, that 
Hainan Free Trade Pilot Zone shall focus on system innovation, granting more decision -making power 
for reform, accelerating the creation of a legal, international and convenient business environment 
as well as a fair, open, uniform and efficient market environment. The transformation of government 
functions shall be enhanced, to deepen the reform of streamline administration and delegate power 
to the lower levels, delegate power and strengthen regulat ion and optimizing services, to improve 
the management level of the government in an overall manner. Free and convenient high -level 
trading and investment policies shall be implemented, and pre -access national treatment shall be 
adopted for foreign assets in an overall manner as well as the Negative List management system. 
Centring major fields such as seed industry, medical, education, sports, telecom, Internet, culture, 
maintenance, finance and navigation etc., the opening -up of the modern agriculture, hi gh-tech 
industry and modern service industry shall be deepened, to promote accelerated development of 
service trade and to protect the lawful rights and interests of foreign investment, promoting gradual 
opening of navigation.  
Question 2  
Are there any plan s to transform PFTZ into semi -autonomous economic zones, in the manner 
Hong Kong, China , or to various lesser extents? And in these areas, does the government offer any 
kind of specialized assistance to foreign entities? Which, if any, foreign firms have h ad success 
operating in PFTZs?  
Reply  
Granting more decision -making power for reform for the free trade pilot zone is clearly proposed in 
the report of the 19th National Congress of the Communist Party of China. For the next step, the 
Ministry of Commerce of the People's Republic of China will keep sorting out the reform needs of 
such zones in an overall manner, promoting transfer of more reform tasks and managem ent 
authority by departments and local governments, supporting fearless attempt and autonomous 
reform of such zones.  
Various free trade pilot zones will constantly improve the service efficiency of government 
authorities, and focus on creating a legal, in ternational and convenient business environment. The 
convenience in investment and trading will be constantly improved in respect of policies, and 
financial opening -up and innovation will be promoted as well as perfection of the supervision system 
during a nd after events etc. Moreover, great importance will be attached to communication with 
enterprises, to help them make full use of various policies and measures, to serve the market 
subjects better. For instance, orientated to enterprise needs, numerous por t customs clearance 
policies are integrated and optimized by Dalian District of Liaoning Free Trade Pilot Zone, formulating 
considerate supervision service schemes for Intel, to narrow the time required in customs clearance 
in an overall manner, and the ef ficiency in customs clearance is improved by about 20%.  WT/TPR/M/3 75/Add.1  
 
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  Under this endeavour, in 2017, 12% of the foreign assets is absorbed by the 11 free trade pilot 
zones with less than 2/10000 of the land area nationwide, creating 12% of import and export. 
Highlights  such as sound development of the modern service industry, high -speed development of 
the high -end manufacturing industry and accelerated gathering of foreign -funded enterprises are 
manifested in the tax revenue structure.  
3.6.3 Outbound direct investment, page 11, paragraph 3.41  
In 2016, China's outbound direct investment was US D 196.15 billion, up 34.7% year -on-year. 
In 2017, the outbound direct investment was US D 124.63 billion, down 32%. Overseas economic 
and trade cooperation zones have played a positiv e role in promoting the common development of 
China and host countries. By the end of 2017, 99 overseas economic and trade cooperation zones 
developed by Chinese enterprises in 44 countries had taken shape, with an accumulative investment 
of US D 30.7 billi on, and 4,364 enterprises choosing to locate in. Taxes paid to host countries had 
amounted to US D 2.42 billion, and 258,000 local job opportunities had been created. Among them, 
new investment in 2017 was US D 5.79 billion, and total output value in 2017 was US D 18.69 billion.  
Question 3  
The growth of China's outbound direct investment is desirable, but it is also notable that the range 
of fluctuation in its investments is too large to understand on a country by country basis.  
In one demonstrative instance , Chinese direct investments into Korea stood at US D 1.774 billion in 
2015 and US D 0.432 billion in 2016 and then dropped sharply to US D 0.198 billion in 2017, according 
to the Korean governments statistics in terms of actual investments made.  
In other wor ds, Chinese investments into Korea in 2017 plunged to just 11.3% of investments made 
in the year 2015. Considering the gradual rising trend of Chinese investments into Korea in recent 
years, it is undeniable that such a sharp decrease over the last two yea rs has been induced by 
non-economic factors. In this regard, I believe that there is a need to enhance the predictability and 
consistency of China 's foreign economic policy.  
Reply  
China should implement a national strategy of going global and strengthen ov erall planning and 
guidance. China should specify the dominant roles of enterprises and individuals in foreign trade, 
strive to improve the quality and efficiency of foreign trade, facilitate the interconnection of 
infrastructures, promote competitive indu stries to go global, engage in cooperation in advanced 
technology, improve the ability in internationalized operation of Chinese enterprises, avoid vicious 
competition, and safeguard overseas investment interests. Since 2015, the Chinese government has 
continued to actively promote foreign trade facilitation, adopt a management mode which is based 
primarily on registration and requires approvals in only a small number of cases and release 
enterprises enthusiasm for outbound investment. Meanwhile, we should pay attention to prevent 
the risks of outbound investment, improve and standardize market orders, and promote the healthy 
and orderly development of outbound investment.  
4.4 Steadily pushing forward construction of free trade areas (FTAs) and promoting trade 
and investment liberalization and facilitation, page 15, paragraph 4.26  
Since the last review, China has signed FTAs with Georgia and the Maldives. So far, China has signed 
16 FTAs with 24 countries and regions, in which more than 90% the tariffs wou ld be reduced to 
zero. Thirteen FTAs or upgrading negotiations are now going on, namely Regional Comprehensive 
Economic Partnership (RCEP), China -Japan -Korea FTA, China -GCC (Gulf Cooperation Council) FTA, 
China -Sri Lanka FTA, China -Israel FTA, China -Norway  FTA, China -Moldova FTA, China -Mauritius FTA, 
China -Panama FTA, China -Pakistan FTA (second phase), China - Korea FTA (subsequent negotiation), 
China -Singapore FTA (upgrade) and China -New Zealand FTA (upgrade). In addition, China signed 
the Investment Agreem ent under the Mainland and Hong Kong Closer Economic Partnership 
Agreement (CEPA), with Macao, China. Both have been implemented as of 1 January 2018.  WT/TPR/M/3 75/Add.1  
 
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  Question 4  
With respect to complementing FTAs in effect, China has sorted them into different categories.  For 
instance, the China -Pakistan FTA is classified as being in 'the second phase ', the China -Korea FTA is 
under 'subsequent negotiation ' and the China -Singapore FTA and China -New Zealand FTA are 
categorized as 'upgrade '. It is necessary to provide an expl anation as to the exact meanings of these 
respective terms. In particular, the term 'upgrade ' for Singapore and New Zealand and 'second 
phase ' for Pakistan need to be clarified in their meanings.  
Reply  
Although the above -mentioned FTAs adopt different titl es, there is no substantial difference among 
them. Based on the original FTAs, all these negotiations aim at further increasing the level of 
liberalization and the standards of rules, expanding the scope and coverage of the agreements, and 
improving the de pth and breadth of bilateral economic and trade cooperation. The different wording 
is the result of negotiations with respective FTA partners.  
5 DEEPENING THE REFORM COMPREHENSIVELY, UPHOLDING RULE OF LAW AND 
DEVELOPING A MODERNIZED ECONOMY  
Page 16, paragr aph 5.1  
China has continued to comprehensively deepen reform and perfect law -based governance, 
constantly advanced the modernization of China's system and capacity for governance, and 
endeavoured to develop an economy with more effective market mechanisms,  dynamic 
micro -entities, and sound macro -regulation.  
Question 5  
The Chinese government has stressed that it has continued to comprehensively deepen reform and 
perfect law -based governance. But there are some issues that fall short of the Chinese claim. For  
instance:  
1) During 2016 -2017, there were cases where certain Korean exports (particularly, consumer 
goods and food) were denied import clearance into China for unknown reasons.  
Reply  
China Customs will issue unqualified certificates for foods that are declared for import but fail to 
comply with the requirements of national food safety standards or the related laws and regulations. 
China Customs will order the importers to destroy and r eturn those that do not conform to the 
requirements of safety, health and environmental protection. Other unqualified foods may be 
technically processed under the China Customs supervision, and may be sold and used upon passing 
inspection again. GACC will release foods which are destroyed, returned and are not allowed to enter 
China, including trade name, importer, unqualified causes, weight, and port of entry.  
Question  
2) Electric vehicles equipped with batteries produced by Chinese companies that Korean firms 
had invested into were excluded from receiving government subsidies provided to 
consumers.  
3) Group tours by Chinese people into Korea were banned and have not yet been reinstated.  
We would like to ask for your clear explanation on reasons for these developments, as well as China's 
future plan in this regard.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China and South Korea have been key tourist source markets and approved destinations to each 
other for a long time. Tourism communication and cooperation play an important and unique role i n 
promoting their friendly relationship. We welcome more Korean tourists to visit China, and also 
would be pleased to see increased Chinese tourists visit Korea. Tourists from each country are 
entitled to select their own tourist destinations. Chinese gove rnment does not prohibit travelling in 
Korea. China and Korea shall make joint efforts so as to continuously create a relaxing and friendly 
environment for both Chinese and Korean tourists.  
Page 17, paragraph 5.1.4  
Stepping up pollution prevention controls  and committing to building ecological civilization . 
China has fully realized that lucid waters and lush mountains are invaluable assets, and focused on 
pollution prevention and control with unprecedented determination and efforts to strengthen 
ecological and environmental protection.  
Question 6  
The Chinese government has been introducing efforts at mitigating environmental degradation 
through pollution controls and preventative measures, but what actions specifically has the 
government taken against major regional polluters as part of its program me of strengthening its 
environmental stewardship? Have any foreign violators been on the receiving end of punitive 
measures? And does the Chinese government offer any kind of support to foreign firms looking to 
relocate or install environmental protection s in order to comply with regulations?  
Reply  
China successively released Air Pollution Prevention and Control Action Plan , Three -Year Plan on 
Defending the Blue Sky , etc., and put forward getting everyone involved in improving the 
environment, addressing e nvironmental issues at the root, seeking both temporary and permanent 
solutions, applying economic, legal, technical and necessary administrative means comprehensively, 
reducing the emissions of pollutants, strictly controlling additional energy consumptio n of high 
energy -consuming and high -polluting industries and greatly adjusting and optimizing industrial 
structure, energy structure, transportation structure and land -use structure, so as to win the blue 
sky defence battle. At the same time, China abides by the principle of national treatment, and 
implements uniform requirements and management for environmental protection.  
5.2 Implementing coordinated regional development strategy, rural vitalization strategy 
and carrying out targeted poverty alleviation, 5.2.1 Coordinating regional development in 
a more effective manner  
China implements a coordinated regional development strategy, speeding up the development of 
old revolutionary base areas, areas with large ethnic minority populations, border areas and poo r 
areas, continuing to advance the large -scale development of the western region, accelerating the 
revitalization of old industrial bases in the northeast and other parts of the country, promoting the 
central region to rise by tapping into local strengths,  and supporting the eastern region to take the 
lead in pursuing optimal development. China will drive the coordinated development of the 
Beijing -Tianjin -Hebei region and explore ways to solve the "big city malaise" by planning and building 
the Xiong'an New  Area. China will facilitate the development of the Yangtze Economic Belt by 
promoting well -coordinated environmental conservation and avoiding excessive development. China 
will develop networks of cities and towns based on city clusters, enabling the coor dinated 
development of cities of different sizes and small towns.  
Question 7  
We agree with the Chinese government's claim that its strategy for regional development is 
fundamentally shifting. However, there are some unclear aspects remaining. I would like to request 
your explanation on the following points.  WT/TPR/M/3 75/Add.1  
 
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  1) The first point that needs further clarification is the difference between the period of the 
13th 5-year plan and the period of the 12th 5-year plan in terms of China 's regional 
development strategy.  
2) The second point is the relationship between the One Belt, One Road initiative and the 
regional development strategy being carried out by China.  
I would like to request your clear explanation on these two points.  
Reply  
1. Contents about the construction  of Belt and Road Initiative, coordinated development for 
Beijing -Tianjin -Hebei region and the development of Yangtze River Economic Zone are added to the 
section of coordinated development of regions in the Outline  of the country's 13th five-year plan. 
This further highlights the requirements in fully playing comparative advantages of different regions, 
promoting rational movement of production factors and regional cooperation, etc., and aims to form 
north -south and east -west intersecting economic belts al ong the coastline, the Yangtze River and 
major transportation routes and build a new pattern of coordinated regional development, namely 
orderly and free movement of factors, constraints and effectiveness of main functions, equalization 
of basic public ser vice and bearing capacity of resources and environment.  
2. It is associated, but regional development strategies are mainly for China. For promoting the 
construction of the Belt and Road Initiative, we encourage all regions in china to fully play their 
comparative advantages, implement more positive and active opening -up strategies, strengthen the 
interaction and cooperation among the east, west and central, and also enhance the open economy 
in an all -round way, through combining regional development strate gies, including western 
development, revitalization of the northeast China, rise of central china, coordinated development 
of Beijing -Tianjin -Hebei region, development of Yangtze River Economic Zone, and development of 
Guangdong -Hong Kong -Macau Greater Bay  Area.  
Page 19, paragraph 5.15  
China is now in the process of introducing the negative list for market access nationwide, scheduled 
to be implemented in 2018. At present, the negative list for market access is being intensively 
revised . 
Question 8  
The gove rnment released a new negative list in April of 2018, promising to expand market access 
to foreign investors. With regards to eligibility, government procurement and the China 
Manufacturing 2025 policy, to what extent have foreign investors received equal treatment with that 
of Chinese domestic enterprises? And in what fields in particular does the new negative list liberalize 
market access to foreign capital?  
Reply  
In 2017, China issued the Notice of the State Council on Several Measures for Expanding the Opening 
Up to the World and Vigorously Utilizing Foreign Investment  (GF [2017] No.  5), in which 
requirements are pointed out on promoting the fair competition among foreign and domestic -funded 
enterprises in Made in China 2025 policy, government procuremen t, standard setting, science and 
technology project, qualification licensing and other fields. Each region and each department are 
actively implementing these requirements.  
In June 2018, China issued the Special Administrative Measures (Negative List) for Foreign 
Investment Access (2018) , launching opening -up measures in 22 fields so as to enhance the 
opening -up level in service, manufacture, mining and agriculture in an all -round way. Please refer 
to Revision Note on Special Administrative Measures (Negati ve List) for Foreign Investment Access  
(2018)  for concrete opening -up measures.  WT/TPR/M/3 75/Add.1  
 
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  Page 20, paragraph 5.20  
China has continued its efforts to safeguard a fair and competitive market system. In June 2016, 
China issued guidelines on establishing a fair competit ion review mechanism for the market system, 
which requires governments and their institutions to conduct fair competition review when 
formulating policies and measures and avoid adopting policies or measures that eliminate or stifle 
competition, so as to s afeguard a unified, open and competitive market system nationwide.  
Question 9  
We highly regard the efforts made on the part of the Chinese government to safeguard the fair and 
competitive market system. However, in countries where governmental influence i s very strong such 
as China, we oftentimes see their markets unintentionally greatly impacted by government 
measures. For instance, the Chinese government's official announcement of its investigation into 
unfair transactions in the semi -conductor market ma y deliver an unnecessary shock, impacting both 
the market as well as market players.  
I would like to ask for the Chinese government to explain its plan to avoid such market impacts 
stemming from its measures, even though its policy measures are thorough, t ransparent and 
consistent.  
Other questions  
Question  1 
China is implementing emergency measures to halt the operation of factories when the air pollution 
reaches over certain level. However, some processes create air pollution, while others do not. It thus 
does not seem rational that even processes which do not create any air pollution be restricted by 
any emergency measures. It is thus recommended that China should reform the policy for such 
emergency measures to allow manufacturers that do not create any a ir pollution to be allowed to 
resume operations even while emergency measures are in effect.  
Reply  
In Law on the Prevention and Control of Atmospheric Pollution  revised in 2015, specifications as a 
specific chapter are made for dealing with heavy pollution weather. In 2017, China issued Work 
Program on Revising Warning Grading Standards of Heavy Pollution Weather and Emergency 
Emission Reduction Measures , which c an direct each region to revise contingency plans for heavy 
pollution weather, unify warning grading standard, strengthen regional emergency linkage, establish 
emergency emission reduction list, etc. According to the requirements of relevant laws, regulati ons 
and contingency plan, when launching yellow warning and response for heavy pollution weather and 
above, temporary control measures are taken for legitimate enterprises involved in gas with large 
pollutant emissions and laggard pollution control facilit ies. These measures shall be specific to 
production process. Different policies for different plants is implemented to strengthen the control 
on main pollution discharge and reduce the emissions of main atmospheric pollutants. Each region 
shall avoid unive rsal application. Emission reduction measures adopted for different enterprises shall 
be determined reasonably according to pollutant discharge of enterprises and other factors, so as to 
reach corresponding proportion with respect to the emission reduction  of main pollutants in these 
regions finally.  
Question 2  
Although the government grants a period for comments regarding an enactment or revision of law, 
this period is too short for foreign investors to give careful consideration to the matter compared to 
the amount that it affects them. Thus, we propose that China grant more than two months for the 
comment period.  
Reply  
Chinese government attaches great importance to science, democracy and legislation based on law, 
encourages and supports public participat ion in legislation through system and practice, also, WT/TPR/M/3 75/Add.1  
 
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  positively responds to the increasingly public growing demand on democracy, rule of law, fairness, 
justice, security, environment, etc. It is clearly set out by Legislative Law  and Regulations on 
Proced ures for Formulating Administrative Regulations  that for draft laws and administrative 
regulations, the term for publicizing to the society and seeking for opinions is thirty days at least, in 
addition, legislative item solicitation and argumentation, argu mentation consultation on adjustment 
of major interests and other systems are stipulated, so as to extensively solicit ideas and suggestions 
on legislative items from the public, try to build consensus among all parties and reflect public wills.  
Question 3  
There have been many cases in which the intellectual property of companies has been infringed 
upon after visiting an international exhibition or fair. Thus, it is suggested that the host of the 
exhibition should be obligated to set up a report centre for intellectual property infringements and 
implement other effective measures to protect intellectual property.  
Reply  
In 2006, the Ministry of Commerce of the People 's Republic of China, State Intellectual Property 
Office and other departments jointly release d Measures for the Protection of Intellectual Property 
Rights during Exhibitions . According to this, relevant local intellectual property offices and rights 
protection centers of intellectual property are directed to enter into large exhibitions, and intel lectual 
property reporting, complaining and rights protection assistance stations are established to conduct 
investigation before exhibition, check during exhibition and transfer after exhibition, which enhances 
the protection efficiency of intellectual pr operty at exhibitions. According to incomplete statistics, in 
recent years, local intellectual property offices establish intellectual property reporting, complaining 
and rights protection assistance stations at more than 130 exhibitions, so as to carry ou t rights 
protection assistance for intellectual property infringement, counterfeit, reporting and complaining.  
Question 4  
With the development of e -commerce, counterfeit items are becoming a big problem. According to 
a report issued by the China Consumers Association, 20% of items on the internet produced by 
one hundred luxury cosmetic companies are counterfeits. Thus, it is recommended that China should 
try its best to crack down and punish such action in order to protect the health of Chinese consumers 
and the intellectual properties of companies.  
Reply  
For the current conditions and features of patent infringement in E -commerce, Intellectual Property 
Office plays a positive role in guiding relevant local intellectual property offices to carry out special 
actions for law enforcement and rights protection, strengthen cooperation mechanism with large 
E-commerce platform, and resolutely crack down on -line infringement and counterfeit in 
E-commerce. Also, complete cross -regional collaborative scheduling mechani sm for patent law 
enforcement and rights protection, set up a collaborative scheduling (Zhejiang) Center for patent 
law enforcement and rights protection in China 's E-commerce. Patent enforcement personnel are 
scheduled from 22  provinces to handle patent i nfringement and counterfeit cases effectively, deepen 
on-line to off -line case handling mechanism, and promoting on -line and off -line integrated 
coordination handling. In 2017, the number of patent enforcement cases in E -commerce reached 
19,835, with a yea r-on-year growth of 51.1%.  
Question 5  
The Chinese government put into effect the Cyber Security Law on 1 June 2017, but there are 
concerns that it is possible the law may act as a non -tariff barrier due to the wide scope of its 
application, the ban on tran sferring personal information overseas, and the release of source codes. 
Thus, there is a need for revision of this law in order to prevent such side effects.  
Reply  
Drawing on internationally -accepted practices and according to national conditions, related laws and 
administrative regulations are formulated, and management on network is conducted by law, which WT/TPR/M/3 75/Add.1  
 
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  is each country's responsibilities within its sovereignty. The establishment and implementation of 
Cybersecurity Law  and relevant systems aims to maintain national network space sovereignty & 
national security and social public interest, as well as protect rights and interests of citizens, legal 
persons and other organizations, instead of restricting foreign enterprises, technologies and products 
from accessing Chinese market, or treating domestic and foreign enterprises differentially. China will 
neither restrict the access of foreign enterprises, technologies and  products to Chinese market, nor 
treat domestic and foreign enterprises differentially, provided that the national security is not 
affected and provisions of Chinese laws and regulations are not violated.   WT/TPR/M/3 75/Add.1  
 
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  MOLDOVA , REPUBLIC OF  
Report by the Secretariat - WT/TPR/S/375  
2.3.2 Regional trade agreements and unilateral measures, page 36, p aragraph 2.27  
Currently, China is negotiating seven FTAs, namely the Regional Comprehensive Economic 
Partnership Agreement, the China -Japan -Republic of Korea FTA, the China -Gulf Cooperation Council 
FTA, the China -Sri Lanka FTA, the China -Israel FTA, the China -Norway FTA and the China -Mauritius 
FTA. In addition, China is negotiating a second phase for three of its FTAs namely the China -Pakistan 
FTA, the China -Singapore FTA and the  China -New Zealand FTA. Meanwhile, revisions to the China -
Pakistan, China -Singapore, China -Chile, China -New Zealand FTAs are under negotiation.  
Question 1  
Please describe at which stage of negotiation are these agreements? Are they similar with the 
existing FTAs? What are the main subjects covered by these agreements?  
Reply  
Currently, China is negotiating nine FTAs, namely the Regional Comprehensive Economic Partnership, 
the China -Japan -Korea FTA, the China -Gulf Cooperation Council FTA, the China -Sri Lanka FTA, the 
China -Israel FTA, the China -Norway FTA, the China -Mauritius FTA, the China -Moldova FTA and the 
China -Panama FTA. In addition, China is hav ing second phase negotiation on the China -Pakistan FTA 
and subsequent negotiation on the China -Korea FTA. Meanwhile, China is upgrading China -
Singapore and China -New Zealand FTAs. China aims for signing comprehensive FTAs that cover 
trade in goods, trade i n services, investment and trade related rules, while the actual scope and 
coverage of specific FTAs will depend on the outcome of the negotiations.  
2.4.1 Regulatory framework and market access, page 36, p aragraph 2.30  
The main legislation regulating forei gn direct investment in China includes: The Law on Sino -Foreign 
Equity Joint Ventures, the Law on Sino -Foreign Contractual Joint Ventures, and the Law on Foreign -
Invested Enterprises, as well as their related administrative regulations and rules. Foreign i nvested 
enterprises in China are regulated by these laws, regulations and rules as well as the Company 
Law.19 According to the authorities, MOFCOM and related departments are in the process of drafting 
a new law on foreign investment.  
Question  
Please descr ibe, which is the scope of the abovementioned draft law? Which will be the main 
provisions? Please offer more details in this sense, like what kind of additional facilities for the foreign 
investors will this law create?  
Reply  
On 19 January 2015, MOFCOM a nnounced the Foreign Investment Law of the People 's Republic of 
China (Draft for Comments) and sought comments from the public. In December 2015, MOFCOM 
submitted the Foreign Investment Law of the People 's Republic of China (Draft for Approval) to the 
State Council. The foreign investment law is a programme  of legislative work of the NPC Standing 
Committee and the State Council in 2018. At present, the Ministry of Justice is proceeding with the 
review and revision in accordance with the legislative process.  
3.1.1 Customs procedures, valuation, and requirements, page 45, p aragraph 3.1  
Customs procedures are regulated by several pieces of legislation (Table 3.1). In addition, the 
General Administration of Customs of the People's Republic of China (GACC) issues  administrative 
customs announcements and decrees to introduce and enforce changes in customs procedures.1 
Between September 2015 and December 2017, it issued 190 announcements and 9 decrees. These 
were mainly related to: procedures for goods in transit, a dvancing paperless clearance, promoting 
the use of single windows (which had covered all ports by 2017), implementing free -trade WT/TPR/M/3 75/Add.1  
 
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  agreements, authorized operators, e -commerce, and rating enterprises according to their credit 
history.  
Question  
Please describ e how the administrative customs announcements are notified within WTO? 
Particularly, the announcements on implementing the free -trade agreements that already entered 
into force.  
Reply  
Please refer to the FTA website of Chinese government for FTA informati on.  
Question  
With the reference to the authorized economic operators, is this system efficiently implemented in 
your country? If so, could you please provide the number of authorized operators that are officially 
registered in Customs Administration?  
Reply 
China Customs has been continuously improved and effectively implemented AEO system since it 
was implemented in 2008. AEO enterprises of China Customs are also named as certification 
enterprises, which are divided into Advanced Certified Enterprise (ACE)  and General Certified 
Enterprise (GCE). By the end of June 2018, there are 35,650 AEO enterprises, including 3,099 ACEs 
and 32,551 GCEs, accounting for about 3% of customs -registered enterprises.  
Paragraph 3.4  
Importers are required to comply with the ins pection and quarantine requirements of Customs and 
the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), as stipulated 
by law and by the Catalogue of Import and Export Commodities Subject to Compulsory Inspection.2 
The Catal ogue is amended every year to add or remove commodities as required to protect human, 
animal or plant health and the environment, and to prevent fraud and safeguard national security.  
Question  
To which extent does the aforementioned catalogue affect the pr eferential trade regimes China has 
with other countries?  
Reply  
According to laws and regulations of China, imported and exported commodities included in 
Catalogue of Import and Export Commodities Subject to Compulsory Inspection (the Catalogue) 
shall be subject to export inspections in accordance with the principle of protecting the human health 
and safety, life and health of animals or plants, environment, preventing fraud and protecting the 
national security.  
The Catalogue conforms to relevant rules and  bilateral (multilateral) agreements of the WTO, and 
adapts to the principles of national economic development and overall quality and safety level. It is 
also dynamically adjusted considering the laws and regulations of China, as well as the inspection 
and quarantine supervision on the basis of risk assessment.  
3.3.7.5.2 Administrative enforcement, page 107, p aragraph 3.262  
In September 2017, NGL issued the Action Plan for the Protection of Intellectual Property Rights 
Owned by Foreign -Invested Enterprises , which focused on, inter alia , fighting against infringements 
of trade secrets for foreign -invested enterprises, protecting foreign trademarks, and combating 
internet piracy and other copyright violations.171 WT/TPR/M/3 75/Add.1  
 
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  Question 1  
Could you please briefly describe the main innovations in the matter of laws and regulations the 
Action Plan provides for? Give us an example, please.  
Reply  
The Action Plan for the Protection of Intellectual Property Rights Owned by Foreign -Invested 
Enterprises is aimed to create a fair co mpetition market environment and a good investment 
environment, promote foreign investment growth, improve the quality of foreign investment, crack 
down on violations of intellectual property rights committed by foreign -invested enterprises, and 
effectivel y protect the legitimate rights and interests of foreign -invested enterprises. This action is 
a law enforcement action jointly conducted by multiple departments to protect intellectual property 
rights of foreign -invested enterprises, which does not involve  innovation in laws and regulations.  
 
  WT/TPR/M/3 75/Add.1  
 
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  EGYPT  
Report by the Secretariat - WT/TPR/S/375  
3 TRADE POLICIES AND PRACTICES BY MEASURE   
3.1. Measures Directly Affecting Imports, 3.1.1. Customs procedures, valuation, and 
requirements, page 45  
Customs procedures are regulated by several pieces of legislation (Trade 3.1). In addition, the 
General Administration of Customs of the People 's Republic of China (GACC) issues administrative 
customs announcements and decrees to introduce and enforce changes in customs proc edures.1 
Between September 2015 and December 2017, it issued 190 announcements and 9 decrees. These 
were mainly related to: procedures for goods in transit, advancing paperless clearance, promoting 
the use of single windows (which has covered all ports by 2017), implementing free -trade 
agreements, authorized operators, e -commerce and rating enterprises according to their credit 
history.  
Question  
Could China clarify in detail how its legislations , and the way it deals with the issues of authorized 
operators,  procedures for goods in transit, advancing paperless, as well as, promoting the use of 
single windows?  
Reply  
Firstly, about the authorized operator system : 
(I) Legal situation: the GACC has introduced the concept, rules, main standards, facilitation 
measures, certification procedures and safety requirements of AEO (Authorized Economic Operator) 
into domestic law and established China's AEO system. The legal s ystem of the AEO system mainly 
includes:  
1. Measures of the Customs of the People's Republic of China for the Administration of 
Enterprise Credit  (Order No. 237 of the General Administration of Customs), which was 
revised on the basis of the Interim Measu res of the Customs of the People's Republic of 
China for the Administration of Enterprise Credit , and shall come into effect as of 
1 May 2018;  
2. Criteria of Certified Enterprises of the Customs Administration  (Announcement [2014] 
No. 82); 
3. Relevant lega l documents about AEO certification procedures and legal documents.  
(II) Number of AEO enterprises: Certified enterprises are AEO enterprises recognized by China 
Customs, which are classified as Advanced Certified Enterprise (ACE) and General Certified 
Enterprise (GCE). By the end of June 2018, there are 35,650 AEO enterprises, including 3,099 ACEs 
and 32,551 GCEs. Among all customs -registered enterprises, the number of AEO enterprises 
accounts for about 3%.  
(III) AEO certification standards: AEO enterpris es shall conform to the Criteria of Certified 
Enterprises of the Customs Administration  formulated by the General Administration of Customs. 
The certification standards are divided into five categories: internal control, financial situation, legal 
norms, t rade safety and additional standards. There are 32 specific standards for ACEs, and 
29 specific standards for GCEs.  
(IV) AEO facilitation measures: According to the Measures of the Customs of the People's Republic 
of China for the Administration of Enterprise Credit , the GCEs can apply the following management 
measures: the average inspection rate of import and export goods is less than 50% of the average 
inspection rate of GCEs; they have priority in the customs clearance of import and export goods;  
the amount of guarantees collected by the customs may be lower than the total amount of taxes WT/TPR/M/3 75/Add.1  
 
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  that these GCEs can born or the amount stipulated by the General Administration of Customs. In 
addition to the management measures for general certification ente rprises, the following 
management measures shall also be applied to ACEs: the average inspection rate of import and 
export goods is less than 20% of the average inspection rate of GCEs; it can apply for exemption 
from customs; reduced frequency of auditing  and inspection; declaration made to the customs prior 
to the arrival of export cargos in the customs supervision area; coordinators designated by the 
General Administration of Customs; facilitation measures offered by the customs administrations of 
the co untries or regions with the mutual recognition of AEOs; joint incentives provided by other 
relevant state departments; priority for customs clearance after the resumption of international 
trade interrupted by force majeure, etc.  
Second, supervisory process  of transit goods : 
On 1 September 1992, the General Administration of Customs issued the Order of the General 
Administration of Customs No. 38, the Measures of the Customs of the People's Republic of China 
on the Supervision over the Goods Transited Betwee n Customs Offices , which was implemented on 
1 December 1992 and makes detailed regulations on the supervision of goods, the scope of 
prohibited transit goods, etc.  
Third, paperless customs clearance : 
Since 2017, the General Administration of Customs has c ontinued to deeply promote the paperless 
customs clearance operations and issued the Announcement on Expanding the Applicable Scope of 
Paperless Customs Clearance  (Announcement No. 8 [2017] of the General Administration of 
Customs), which expands the scope  of enterprises to which paperless customs clearance applies to 
cover enterprises with all classes of credit rating. At the same time, it will establish internal paperless 
management mode among competent authorities and an online verification mechanism for  external 
supervision documents, and further promote the automatic verification of the system related to 
customs declarations such as networked licen ces, certificates of origin, and paperless tax exemption 
certificates, so as to realize paperless customs c learance in the whole process and the convenience 
of free delivery of documents.  
Fourth, Single Window : 
The Joint Inter -Ministerial Meeting of the State Councils Port Work reviewed and passed the 
Framework Opinions of the National Port Management Office on  the "Single Window" Construction 
of International Trade , which is the guidance document for the Joint Inter -Ministerial Meeting of the 
State Council's Port Work to guide the construction of Single Window in China's international trade. 
In addition, the jo int meeting also issued a series of specific management methods for the 
construction, operation and management of the Single Window system. In the future, a set of laws, 
regulations and institutional framework system will be gradually established to confor m to 
international prevailing rules and management concepts and in line with the development of Single 
Window.  
 
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  DOMINICAN REPUBLIC – BATCH 1  
QUESTIONS  
SUMMARY  
Page 10 , paragraph 8  
"China is an active Member of the WTO. It is an observer to the Committee on Government 
Procurement and is in the process of negotiating its accession to the Plurilateral Agreement on 
Government Procurement (GPA). China is also an observer to the Plurilateral Agreement on Trade 
in Civil Aircraft, and, as a participant in the Inf ormation Technology Agreement (ITA), has agreed to 
its expansion. During the review period, China was involved in seven cases under the WTO dispute 
settlement system: in five cases as a respondent and in two as a complainant. It was also involved 
as a thir d party in ten cases brought to the Dispute Settlement Body (DSB). During the review 
period, China submitted to the WTO a number of notifications; nonetheless, some notifications 
including those on state -trading enterprises, domestic support, and subsidies  provided by the central 
government remain pending. " 
Question  
1. When does China considers making outstanding notifications related to state -trading 
enterprises, domestic support, and subsidies provided by the central government?  
Reply  
China will submit the 2015 -2016 central and local subsidy policy notification before the TPR meeting. 
China will try to submit the state trading policy notification before the TPR meeting. Please to the 
upcoming notifications.  
Page 11 , paragraph 20  
"China  submitted to the WTO a number of notifications on its subsidies up to 2014. However, for 
most projects no information was provided on the total subsidy amount and no subsidies were 
notified for the period between 2015 and 2017. Furthermore, the authoritie s did not provide any 
information on subsidies that went beyond their notified programmes. Information available from 
other sources indicates that China has continued to provide substantial support for, inter alia , 
intelligent manufacturing, advanced techn ologies, new energy vehicles and fisheries. Outlays for 
these programmes are reported to be considerable. "  
Question  
2. Is this measure compatible with Paragraph 1 of article 25 of the Agreement on Subsidies and 
Countervailing Measures?  
Reply  
Over the past  one year or so, China has strived to update the notifications on subsidies up to 2015 -
2016, as required by the notification rules. This arduous work has been almost completed so far. 
China will try best to submit the latest notifications on subsidies by i ts central and local governments 
before the review session.  
1 ECONOMIC ENVIRONME NT 
1.2 Recent Economic Developments , 1.2.2 Fiscal policy and reform , page 21, 
paragraph  1.20 
"The decline in revenue as a share of GDP can be attributed to the nationwide implementation of the 
VAT pilot reforms, which reduced indirect tax revenue significantly. In May  2016, the transformation 
of the business tax levied on services into VAT was completed, with financial, construction, real WT/TPR/M/3 75/Add.1  
 
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  estate and lifestyle service indust ries also being subject to VAT. The VAT regime is complex, 
consisting of three  tax rates (17, 11, and 6%) and two levy rates (5 and 3%); in March 2018, the 
State Council announced its intention to lower some VAT rates from 1 May 2018. In addition to 
increa sing the neutrality of China's indirect tax system, the tax reform has eased the tax burden on 
firms. Revenue from VAT is shared between national and sub -national authorities. Other factors 
affecting revenue collection include the lagged influence of the e conomic slowdown and the high 
base of the fiscal revenue from both the financial sector and some non -tax items in 2015. "  
Question  
3. Will the intention to reduce some value added taxes (VAT) materialized in May 2018?  
Reply  
On 4 April 2018, the State Administration of Taxation, along with the Ministry of Finance, made the 
Announcement of Adjusting VAT Rates (No 32, 2018). Since 1 May 2018, China's VAT regime has 
been composed of three tax rates:  16%, 10%, and 6%, thus meeting the target of cutting some 
VAT rates.  
2 TRADE AND INVESTMENT REGIMES  
2.2.2 Trade policy formulation and objectives, page 33, paragraph 2.15  
Question  
"China continues to promote its "Going Abroad Policy", as outward direct investment is considered 
a way to prom ote trade, as well as to integrate into global production, value, and logistics chains. 
The Belt and Road Initiative, announced in 2014, aims at, inter alia , promoting connectivity and 
cooperation through the development of infrastructure among countries o n the original Silk Road 
through Central Asia, West Asia, the Middle East and Europe. "12  
4. The authorities of China consider a trade strategy about Dominican Republic to connect our 
country with The Belt and Road Initiative or another similar?  
Reply  
Sticking to the principle of jointly built through consultation to meet the interests of all, the BRI 
conforms to the theme of the era of peaceful development and the common aspiration of various 
countries to accelerate development. China welcomes relevant  countries to take the express train of 
China's development. The BRI originated in China, but the opportunities and achievements belong 
to the world.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.1 Incentives, p age 69, p aragraph 3.112  
"Support is also avai lable for small and medium enterprises. The Plan on Promoting the Development 
of Small and Medium -sized Enterprises (2016 -2020)72, issued by the Ministry of Industry and 
Information Technology, points out the objectives and key projects for the promotion o f SMEs during 
the 13th Five-Year Plan. However, no details were provided on the concrete measures taken during 
the period under review. "  
Question  
5. Can you provide some details about some concrete measures taken concerning the Plan on 
Promoting the Devel opment of Small and Medium -sized Enterprises (2016 -2020)?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
China has made clear in the plan the specific measures to achieve the goals. The main tasks are as 
follows: first, regarding promoting entrepreneurship, we will focus on fostering entrepreneurial 
entities, promoting the growth of small - and medium -sized enterprises, strengthening the 
construction of entrepreneurial vehicles, encouraging large enterprises to provide support for 
starting businesses, and strengthening entrepreneurial s ervices; second, with regard to enhancing 
the ability to make innovation, we will give priority to promoting the innovation and development of 
small and medium -sized enterprises, encouraging the application of information technology in small - 
and medium -sized enterprises, working for the coordinated innovation among small -, medium -sized 
enterprises and large enterprises, building an enterprise -oriented innovation mechanism, and 
strengthening the intellectual property services for small - and medium -sized ent erprises; third, in 
terms of transformation, upgrading and improvement of supply, our focus will be on improving SMEs 
ability to effectively supply products and services, helping SMEs develop themselves into specialized, 
original and refined ones with uniq ue features, promoting SMEs brand building and green 
development, encouraging the development of industrial clusters and pushing forward the 
coordinated development of SMEs; fourth, as for expanding domestic and foreign markets, we will 
attach importance t o creating a fair and open market environment, widening the range of opening 
up, guiding small - and medium -sized enterprises to open market, and supporting them in going 
global and bringing in; fifth, in transforming and improving services, we will put emp hasis on 
transforming governmental functions, reducing the cost of SMEs, bettering governmental services, 
and improving the service system. To that end, we will take the following steps. In terms of 
organizing and leadership, the key is to leverage the rol e of the Leading Group of State Council for 
Promoting the Development of SMEs and its Office, and to improve coordinated working mechanism 
among different departments. Regarding service support, it is of great importance to implement the 
SMEs Promotion Law , promote the establishment of inter -departmental platforms of policy and 
information dissemination and policy -service mechanisms, support the public service platforms that 
provide services for SMEs, and promote the establishment of mechanisms to protect S MEs rights. 
With regard to operation and monitoring, the key point is to establish and improve the classification, 
monitoring, analysis and releasing system of SMEs, and to establish SMEs mechanisms to monitor 
market, forestall risks and make early warning s, and use the Internet, big data and other means to 
timely study and assess the developing momentum of SMEs and make scientific early warnings.  
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing, 4.3.1 Recent developments, p age 140, paragraph 4.85  
"The Government's main initiatives in recent years to promote manufacturing in China included the 
adoption of the "China Manufacturing 2025" plan, which was issued on 8 May 201547; it is a 10 -year 
national plan aimed at comprehensively upgrading China's manufac turing sector. The authorities 
state that the plan includes strategies for various industries including "strategic emerging 
industries", which had been announced previously.48 The plan identified a three -step strategy, nine 
priority tasks49, ten key sector s50 and five major projects.51 Its guiding principles are for 
manufacturing to be innovation -driven, emphasize quality over quantity, achieve green 
development, optimize the structure of Chinese industry, and nurture human talent. The three -step 
strategy a ims at China: becoming a strong manufacturing country by 2025 (step 1); be ing able to 
compete with develo ped manufacturing powers by 2035 (step 2); and becoming a leading 
manufacturing power by the year 2049 (step 3). In order to implement the strategy, Ch ina plans to 
set up pilot projects in cities and city clusters as well as national demonstration zones for the 
implementation of the "China Manufacturing 2025" plan. China also plans, inter alia , to launch a 
special project to increase diversity and improv e quality. The authorities state that the plan will be 
implemented on an equal basis for all enterprises established in China. At the time of writing this 
report, no pilot projects or other policy measures had been implemented yet. "  
Question  
6. Can you explain if you have implemented some pilot projects or other policy measures related 
with this manufacturing plan?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
At present, 16 pilot cities or urban clusters of Made in China 2025 have been approved. They are 
Ningbo, Quanzhou, Shenyang, Changchun,  Wuhan, Qingdao, Chengdu, Wuzhong, Guangzhou, Hefei, 
Huzhou, Ganzhou, the five cities in southern Jiangsu Province, namely Nanjing, Zhenjiang, Wuxi, 
Changzhou and Suzhou, the six cities and one district on the west bank of Pearl River, namely Zhuhai, 
Fosha n, Zhongshan, Jiangmen, Yangjiang, Zhaoqing and Shunde, the Changsha -Zhuzhou -Xiangtan -
Heyang urban cluster, and the Zhengzhou -Luoyang -Xinxiang urban cluster.  
 
  WT/TPR/M/3 75/Add.1  
 
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  DOMINICAN REPUBLIC – BATCH 2  
3.2.5 Export finance, insurance, and guarantees, page 65, paragrap h 3.91  
Question  
Según lo referido en el párrafo 3.91, ¿Qué programas han desarrollado ExImBank y SINOSURE para 
promover las exportaciones chinas, en cuanto a acceso al crédito y seguros, y si éstos incluyen al 
sector agrícola/ agropecuario?  
Reply  
Provide credit support for projects that have met the approval criteria, including those covering 
agriculture -related products, technologies and services.  
3.3.1 Incentives, page 67, paragraph 3.97  
Question  
Conforme a lo expresado en el párrafo 3.97 y dado que Chin a es uno de los mayores receptores de 
Inversión Extranjera Directa (IED) a nivel mundial, ¿Podría indicarnos cuáles medidas desde la 
última revisión, han tenido mayor impacto positivo en la estimulación de la IED?  
Reply  
First, we issued the Circular of the  State Council on Several Measures to Expand Opening up and 
Actively Utilize Foreign Capital (No. 5 [2017] of the State Council), the Notice of the State Council 
on Several Measures for Promoting Growth of Foreign Investment (No. 39 [2017] of the State 
Council), the Notice of the State Council on Measures for Using Foreign Investment Actively and 
Effectively to Promote High -Quality Economic Development (No. 19 [2018] of the State Council) and 
others, and have implemented a series of measures to optimize the  investment environment, 
promote fair competition among domestic and foreign -funded enterprises, facilitate investment, and 
build an open innovation system. Second, we amended the Catalogue for the Guidance of Foreign 
Investment Industries in 2017, in whic h a negative list for the foreign investment access was 
proposed, and the number of restrictions on foreign investment was reduced from 93 to 63. In 2018, 
the negative list for foreign investment access was revised and released independently from the 
Catalogue for the Guidance of Foreign Investment Industries. The number of restrictions on foreign 
investment was reduced from 63 to 45, greatly relaxing market access and promoting the opening -
up of key sectors such as finance and automobiles.  
3.3.6.3 Procurem ent methods and procedures, page 93, paragraph 3.203  
Question  
En el párrafo 3.203 del Informe de la Secretaría de la Organización Mundial del Comercio (OMC), se 
habla sobre la no firma de acuerdos bilaterales o regionales sobre acceso a mercados de contrat ación 
pública, ¿Podría China indicarnos si tiene previsto en algún momento cambiar dicha posición?  
Reply  
The Chinese Government has initiated the negotiation on its accession to WTO 's GPA, and is now 
creating conditions for quick accession. In addition, th e Chinese Government has also held 
consultations on issues regarding government procurement in such bilateral agreements as the FTA.  WT/TPR/M/3 75/Add.1  
 
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  3.3.7.4.1. Layout -designs of integrated circuits , page 104, paragraph 3.254  
Question  
En lo indicado en el párrafo 3.254, queremos conocer las estrategias y procesos sobre las cuales 
China ha intensificado su lucha contra las infracciones sobre Derechos de Propiedad Intelectual y 
mercancías falsificadas.  
Tomando en consideración que según el párrafo 4.3 China continúa siendo un importador neto de 
productos agrícolas, ¿Podrían indicar dónde los países pueden consultar los requisitos técnicos 
(Medidas Sanitarias y Fitosanitarias [MSF]/ Obstáculos Técnicos al Comercio [OTC]/ aranceles) con 
el propósito de poder suplir el mercado chino?  
Reply  
Institutional reform has not yet been in place at present, and the related functions of competent 
departments have not been clarified finally. If Dominica has any questions about specific technical 
regulations, please get in touch with China's  notification and consultation center first. After the 
functions of institutional reform are determined, the information about specific technical 
requirements can be found on the websites of relevant competent departments.  
 
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  INDONESIA  
Report by the Secretariat - WT/TPR/S/375  
SUMMARY  
Page 9 , paragraph 5 
"China's current account surplus contracted during the review period. It total led US D 202.2 billion 
in 2016, and was equivalent to 1.8% of GDP. The lower surplus stems, to a large extent, from a 
decrea se in the merchandise trade surplus, which fell due to a fall in exports. In 2017, the current 
account surplus was equivalent to 1.3% of GDP. The services deficit continued to widen during 
the review period. " 
Question  
1.  Would the Government of China elab orate on the widen deficit of its trade in services?  
Reply  
In the first half of 2018, the total service import and export amount of China is CNY 2531.33 billion, 
with a year -on-year growth of 8.5%. The import and export scale hits a new high. At the same time, 
the service trade deficit is CNY 848.18 billion, with the narrowing of CNY 2.66 billion compared with 
the deficit scale at the same point of previous year. This is the first semi -annual deficit narrowing 
since 2010. It is shown by the statistics that  in the first half, the trade export amount of service is 
CNY 841.57 billion, with a year -on-year growth of 13.6%; the import amount of service is 
1,689.76  billion, with a year -on-year growth of 6.1%. The growth rate of export in service is 
7.5 percentage points higher than that of import. Narrowed service trade deficit results from three 
aspects: 1. In the first half of the year, China's  economy runs well overall, especially the rapid 
development of service industry, which lays a solid foundation for the i ncrease in service trade; 
2. Preliminary achievements are made in innovation pilot of service trade, and the priority to carry 
and try management system, promoting mechanism, policy system and supervision pattern develops 
a series of advanced experience; 3 . The new concept of giving priority to the development of service 
trade is established in each area, and service export is developed greatly, especially in export of 
emerging services.  
Page 10 , paragraph 8 
"During the review period, China submitted to the  WTO a number of notifications; nonetheless, 
some notifications including those on state -trading enterprises, domestic support, and 
subsidies provided by the central government remain pending. " 
Question  
2.  Would the Government of China give clarification on this matter?  
Reply  
China has submitted the latest notifications on state -trading enterprises and  the latest notification 
on subsidies granted by both central and local governments  before the 7th TPR. 
Page 10 , paragraph 11 
"The pilot reform of the foreign investment system, which was initiated in 2013 through the 
establishment of the China (Shanghai) Pilot Free Trade Zone, was expanded to 11 pilot free trade 
zones during the review period. FDI access to these zones is based on a negative list approa ch. For 
industries not included in the negative list, foreign investors are to receive treatment similar to 
domestic companies with regard to the establishment and approval requirements and process.  WT/TPR/M/3 75/Add.1  
 
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  Except for the incorporation procedures regulated by the Company Law, foreign investors are not 
subject to government approval, but only to record -filing. The authorities consider that the 
negative list applicable to pilot free trade zones is more open tha n the Investment 
Catalogue applicable nationwide. " 
Question  
3.  Would the Government of China elaborate on the more open negative list applicable to pilot 
free trade zones?  
Reply  
The National Development and Reform Commission and the Ministry of Commerce issued 2018 
National Foreign Investment Negative List of Pilot Free Trade Zone at the end of June 2018. The 
model of description + list is still followed in 2018 national negative list for foreign investment of 
pilot free trade zone, and is applicable to a ll free trade zones. There are 45 items cut down from 95 
in the 2017 list. In relaxing the market access, in addition to liberalization measures consistent with 
the national negative list of foreign investment access, new measures are put forward for negat ive 
list of foreign investment access of Pilot Free Trade Zones in seed industry, oil & gas, mineral 
resources, value -Added Telecommunications, culture and other important fields, and opening to the 
outside world is at a much higher level. 2018 Negative Li st for Foreign Investment of Pilot Free Trade 
Zone specifies the following more open pilot measures further based on national open measures: 
increase foreign investment equity ratio for new variety breeding of wheat and maize and seed 
production from no mo re than 49% to no more than 66%; cancel petroleum and gas exploration 
and development restrictions on joint venture and cooperation; cancel the prohibitions for foreign -
funded smelting and processing of radioactive mineral and production of nuclear fuel; c ancel the 
restriction that performance agency should be held by China; change prohibiting investment in 
establishment of artistic -cultural performance group into holding by China; popularize value -added 
telecommunication open measure piloted in original 28 .8 km2 area of Shanghai Free Trade Zone into 
all pilot free trade zones, including cance lling equity ratio restrictions of foreign investment in storage 
and forwarding business, call centr e business and domestic multi -party communication service 
business a nd ensuring equity ratio of foreign investment in domestic Internet VPN business does not 
exceed 50%.  
Page 11 , paragraph 17 
"In 2017, global export quotas applied to 100 tariff lines. " 
Question  
4.  Would the Government of China define global export quotas?  
Reply  
The Chinese side implements export quota management for some products according to law. The 
quotas are global. Enterprises that have obtained quotas decide their own export destinations 
according to the principle of marketization.  
Page 11 -12, paragraph 20 
"China submitted to the WTO a number of notifications on its subsidies up to 2014. However, for 
most projects no information was provided on the total subsidy amount and no subsidies 
were notified for the period between 2015 and 2017. Furthermo re, the authorities did not 
provide any information on subsidies that went beyond their notified programmes. 
Information available from other sources indicates that China has continued to provide 
substantial support for, inter alia , intelligent manufacturi ng, advanced technologies, new 
energy vehicles and fisheries.  Outlays for these programmes are reported to be considerable. " 
Question  
5.  Would the Government of China give clarification on this matter?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
With regard to the subsidies, please refer to China's  latest subsidy notification which has been 
submitted before the 7th TPR. 
Page 12 , paragraph 24 
"State involvement in the economy remains considerable. According to a notification submitted in 
2015, state -trading requirements concerned, inter alia : grain, sugar, tobacco, rice, maize, cotton, 
coal, crude oil, processed oil, chemical fertilizers, tungsten, tea, silk, antimony and silver . The state 
retains a majority share in all but one of the 100 largest publicly listed companies. No 
information was p rovided on public financial support for SOEs. " 
Question  
6.  Would the Government of China elaborate on this matter?  
Reply  
The Chinese government attaches great importance to the fair and equitable participation of state -
owned enterprises in market competition. After more than 30 years of reform, profound changes 
have taken place in the management system and operating mechanis m of China's  state-owned 
enterprises. State -owned enterprises have been integrated into the market economy and become 
the main independent body participating in market competition. State -owned enterprises do not 
enjoy privileges and comply with the same la ws and regulations as other companies in terms of 
obtaining fund, filing bankruptcy and preparing competition legislation.  
Page 12 , paragraph 26 
"China's main laws concerning intellectual property rights (IPRs) have remained largely unchanged 
since its pre vious Review. Enforcement of IPRs continues to be a major challenge for China.  
China has continued to strengthen its IPR enforcement, both at the administrative and judicial levels. 
During the review period, the authorities issued various notices and measu res with a view to 
strengthening China's capacity to protect and enforce IPRs, and 11 additional specialized IPR courts 
were established by the Supreme People's Court in various cities. " 
Question  
7.  Would the Government of China elaborate on the challenge s faced by China to enforce IPRs?  
Reply  
Administrative law enforcement has always played an important role as an important way to protect 
intellectual property rights. China has always adopted the intellectual property protection model of 
two approaches and coordinated operation of the combination of administrative law enforcement 
and judicial protection. Practice shows that administrative law enforcement has the advantages of 
simplicity, efficiency, convenience and low cost. Especially for disputes with relatively clear facts and 
easy to determine infringement, the administrative approach is the priority option adopted to 
address them, which can provide a rapid protection and meet the needs of relevant subjects. 
Administrative law enforcement and judicial  protection have complementary advantages and organic 
connections, and have played an active role in resolving disputes in a timely manner and 
safeguarding the rights and interests of patent holders and the public.  
In recent years, China has continued to s trengthen the construction of intellectual property law 
enforcement capability, cracking down on various types of intellectual property rights infringement 
and counterfeiting, including improving the policies and regulations for intellectual property right s 
enforcement, innovating administrative law enforcement mechanisms for intellectual property, and 
continuously strengthening the enforcement of intellectual property rights. A positive result has been 
achieved.  WT/TPR/M/3 75/Add.1  
 
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  The challenges faced by the judicial protect ion of intellectual property rights mainly include the 
following three aspects: Firstly, the strategic arrangement for the development of socialism with 
Chinese characteristics in the new era has set new targets for judicial protection of intellectual 
property rights. The 19th National Congress of the Communist Party of China made new strategic 
arrangements for China's modernization drive. From now to 2020, it is the decisive period for 
building a moderately well -off society in an all -round way; from 2020 t o 2035, basic socialist 
modernization will be realized; from 2035 to the middle of this century, China will be built into a 
modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious 
and beautiful. The judicial trial o f intellectual property rights is an important part of the country's 
modernization drive and must be promoted in accordance with the above strategic arrangements. 
Secondly, the historical changes in the main contradictions of China's society in the new era  have 
put forward new requirements for the judicial protection of intellectual property rights. The main 
contradictions in our society have been transformed into contradictions between the people 's 
growing needs for a better life and the unbalanced and ina dequate development. The reflection of 
the main social contradictions in the field of intellectual property justice is the contradictions between 
the people's growing new demand for intellectual property justice and the unbalanced and 
inadequate developmen t of judicial trial work. Thirdly, persist in comprehensively deepening reforms, 
forming and improving the judicial protection system for intellectual property rights with Chinese 
characteristics. Adhere to the new development concept, and strictly protect  innovation and 
intellectual property rights, promoting the justice work of intellectual property rights in an open 
manner. Adhere to the comprehensive law -based governance of the country and implement the 
judicial responsibility system, further improving the quality of trials, and giving full play to the 
leading role of judicial protection of intellectual property rights.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports , 3.1.5  Import prohibitions, restrictions, and 
licensin g, page 53 , paragraph 3.35 
"Pursuant to the Foreign Trade Law, the authorities may also restrict or prohibit imports in 
infant industries (which is not further defined) ; agriculture, animal husbandry, and fishery; 
and the precious metals industry. Accordin g to the authorities, this provision was not used during 
the review period. " 
Question  
8.  Would the Government of China define "infant industries " as mentioned above? Further, which 
industries are categorized as infant industries?  
Reply  
There is no specific definition of infant industry in the Foreign Trade Law, which regulates in Article  16 
as The State may restrict or prohibit the import or export of relevant goods and technologies for the 
following reasons that: (7) where the import shall be restr icted in order to establish or accelerate 
the establishment of a particular domestic industry. However, China has not yet applied this clause 
to restrict import of relevant goods in practice.  
3.3 Measures Affecting Production and Trade , 3.3.2  Standards and  other technical 
requirements , 3.3.2.1  Overview , page 71 , paragraph 3.114  
"China has five kinds of standards: national, industry/sectoral, local, enterprise, and association . 
The first three types can be either voluntary or mandatory (technical regulations ). National standards 
are developed for adoption at the national level, while industry/sectoral standards, which are also 
applicable nationwide, are developed in the absence of a national standard, where specific conditions 
must be complied with in a profe ssional field at the national level. Standards may also be developed 
locally (local standards) when national or industry/sectoral standards do not exist. However, if and 
when equivalent national standards are developed, these replace local and industry/sec toral 
standards except in cases where local standards are stricter than national ones. Enterprise standards 
may be developed for an enterprise when national, industry or sectoral or local standards are not 
available. Association standards were introduced a s a new category by a 2017 amendment to the WT/TPR/M/3 75/Add.1  
 
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  Standardization Law; these can be adopted for example by chambers of commerce or technology 
associations. " 
Question  
9.  Would the Government of China elaborate more on these enterprise and association standards, 
especially whether it is voluntary or mandatory?  
Reply  
Standardization Law of the People's Republic of China  stipulates: China encourages social 
organizations, including society, association, chamber of commerce and industrial technology 
alliance, to coordinate with relevant market entities so as to establish organization standards that 
meet market and innovatio n demands; and the standards are applied by members of the 
organizations upon their agreement or willingly applied by the society according to the organizations 
specifications. The organization standard is formulated by the market. The formulation bodies f or 
the organization standard include such social organizations as society, association, chamber of 
commerce and industrial technology alliance. The social organizations shall be set up as per the 
provisions of Regulation on Registration and Administration of Social Organizations  issued by the 
People's Republic of China. The organization standards include standard that may be applied by the 
members in the organization upon their agreement, or willingly applied for the society based on the 
provisions of the o rganization because it does not belong to the compulsory standard.  
Page 74 , paragraph 3.124  
"In the Committee of Technical Barriers to Trade, between January 2016 and 22 February 2018 
specific trade concerns (STCs) were raised by Members regarding TBT mea sures maintained or 
planned by China, including 13 new STCs.81 These STCs refer to a wide range of issues, including 
specific product regulations (cosmetics, medical products, furniture, chemicals, vehicles, coal) and 
new legislation on standards and cyber security. " 
Question  
10.  Would the Government of China clarify on its technical regulation regarding cosmetics label ling 
(Administrative Measure on Cosmetics Label ling) which has become one of the STCs in several 
regular meetings of the TBT Committee?  
Reply  
Administrative Measure on Cosmetics Labe lling is the departmental regulation to be formulated. 
After collecting and compiling the feedbacks from all parties, the original General Administration has 
revised and improved the draft for comments, which i s still in the process of legislation. At the same 
time, since the public consultation, the original General Administration has communicated with 
foreign parties on many occasions such as the WTO/TBT regular meetings, responding to foreign 
concerns, and wi ll reopen the revised Administrative Measure on Cosmetics Labe lling for consultation 
in the next step.  
4 TRADE POLICIES BY SECTOR  
4.4 Services , 4.4.1  Telecommunications , 4.1.1  Statistical overview , page 154 , 
paragraph  4.141  
"Another key provision of the law is its article 37 relating to data localization whereby personal 
information and other important data gathered or produced by critical information 
infrastructure operators during operations within the mainland territory of China shall be 
stored within mainland China.  Where due to business requirements it is truly necessary to 
provide these data and information outside the mainland, they shall follow the measures jointly 
formulated by the State network information departments  and the relevant departments of the State 
Council to conduct a security assessment; but where laws and administrative regulations provide 
otherwise, they shall follow those provisions. " WT/TPR/M/3 75/Add.1  
 
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  Question  
11.  Would the Government of China elaborate on the rationales behind this measure?  
Reply  
The Cybersecurity Law  specifies that individual information and key data collected and generated by 
the critical information infrastructure operators inside China shall be stored in China. To implement 
law requirements, the followings must be grasped: (I) With respect to indiv idual information and 
key data only, rather than all data, key data here is not directed to enterprises and individuals for 
the country. (II) Institutional arrangement has been made in laws for those data required to leave 
China; data can be transmitted to  foreign countries if they do not endanger national security and 
public interests according to safety assessment.  
Report by China - WT/TPR/G/375  
3 APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.3 Supporting outbou nd direct investment cooperation for mutual benefits and win -win 
with host countries and regions , 3.3.2  Promoting the facilitation of overseas investment 
cooperation , page 8 , paragraph  3.22 
"China believes that enterprises and individuals should go abroad to conduct investment 
cooperation, undertake engineering projects and provide labour services by 
demonstrating their own strengths and advantages and at their own risks.  They can explore 
not only direct ways of green field investment and merger and acquisi tion but also innovative means 
including securities and portfolio investment. Enterprises with sufficient capabilities are encouraged 
to conduct overseas cooperation in areas including infrastructure, energy and resources and etc. 
Agricultural cooperation can be promoted steadily. Technologies and technical standards should go 
abroad. Chinese investors and entities are also supported in their construction, management and 
upgrading of overseas economic and trade cooperation zones. " 
Question  
12.  Would the Government of China elaborate more if there  is any specific programme  in order to 
encourage such overseas cooperation?  
Reply  
Chinese government has consistently supported and encouraged enterprises and individuals with 
good reputation and strong strength f or investment cooperation in foreign countries. But enterprises 
and individuals shall give full play to their advantages and assume risks on account that the 
government does not give encourage or supporting measures for any specific projects.  
Other 
13.  Would the Government of China give clarification on the Guo Biao (GB) Number especially for 
products contained coconut sugar?  
Reply  
Upon investigation, there is no standard item for products containing coconut sugar in Chinese 
national standards. What are t he specific national standard numbers to be clarified by China?  
 
  WT/TPR/M/3 75/Add.1  
 
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  ECUADOR  – BATCH  1 
Informe de  la Secretaría  - WT/TPR/ S/375  
Question  
1. De conformidad con la página 43, párrafo 2.36, se refiere "El Consejo de Estado también ha 
venido elaborando una lista negativa para el acceso a los mercados, que se aplica tanto a empresas 
nacionales como extranjeras; la versión más reciente se publicó el 2 de marzo de 2016."  
¿Podría indicarnos China qué productos incluyen la lista negativa para acceso a mercados? ¿Cuáles  
son los ordenamientos legales que prevé y el sistema de consulta en línea que tiene disponible para 
los socios comerciales? ¿Cómo esta limitación se relaciona con sus compromisos ante la OMC?  
Reply  
China has been strictly complying with WTO commitment, and continuously opened the fields to the 
outside world based on conforming to the market development demands. Meanwhile, according to 
the provisions of GATS, each member is entitled to manage the serv ice provided within the territory 
and adopt new regulations, in order to realize the national policy objective, and it is the legitimate 
power permitted by WTO. The market access negative list regime refers to a series of institutional 
arrangements, such a s corresponding management measures taken by the governments at all 
levels, for actions, fields, business, etc. with investment operation prohibited and restricted in the 
People's Republic of China and specially listed by the State Council. For the industr y, field, business, 
etc. beyond the market access negative list, various market actors can equally enter by law. Market 
Access Negative List  is prepared according to the principles of the rule of law, and the matters 
incorporated into the list are the proh ibited or restricted market access management measures 
decided to set by the State Council according to the laws, administrative laws and regulations.  
According to relevant work arrangement, the market access negative list regime will be fully 
implemented in 2018. The management mode of national treatment before access plus Negative List 
is implemented for the outside world by China, and the Negative List refers to Special Administrative 
Measures (Negative List) for Foreign Investment Access (2018) , not Market Access Negative List . 
The national treatment before access refers to that overseas investors enjoy the same treatment as 
the domestic investors before access, and Market Access Negative List  is a market access 
management measure with consistent domesti c and foreign investments, belonging to the 
management scope of the national treatment before access.  
The National Development and Reform Commission and the Ministry of Commerce of the People 's 
Republic of China take the lead in fully implementing the mark et access negative list regime. Search 
at the website of the National Development and Reform Commission ( www.ndrc.gov.cn ). 
Question  
2. De conformidad con la página 47, párrafo 2.47, hace alusión que "En la Lista Negativa  de 
2017 figuran 95 esferas prohibidas o restringidas (frente a 122 en la de 2015). Entre los cambios 
introducidos en esa Lista destacan la reducción del número de sectores restringidos o prohibidos 
para los inversores extranjeros y la reducción del número  de sectores en que los inversores 
extranjeros solo pueden participar por medio de una empresa conjunta con una empresa china o 
con una participación china mínima en el capital". También se han suprimido determinadas 
disposiciones de la Lista Negativa de 2 015, como la prohibición de que los inversores extranjeros 
inviertan en establecimientos de servicio de acceso a Internet y el requisito de una participación 
mayoritaria china en la fabricación de determinados motores diésel y cigüeñales.  
¿Podría señalarno s China a mayor detalle cuáles son estas 95 disposiciones prohibidas o restringidas 
que figuran en la lista negativa 2017? ¿Qué sectores son los que actualmente se encuentran en la 
lista negativa?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
See Special Administrative Measures (Negative List) f or Foreign Investment Access to Pilot Free 
Trade Zones (2017)  for 95 restricted or prohibited fields, and log in the website of the State Council 
at http://www.gov.cn/zhengce/ content/2017 -06/16/content_5202973.htm  for search. In addition, 
on 30 June 2018, the National Development and Reform Commission and Ministry of Commerce of 
the People 's Republic of China launched the Special Administrative Measures (Negative List) for 
Foreign Investment Access to Pilot Free Trade Zones (2018) , in which the number of items was 
reduced from 95 in 2017 to 45, and you can log in the website of the State Council at 
http://www.gov.cn/xinwen/2018 -06/30/5302507/files/63493c924b2042639893a9e484faa4bd.pdf  
for search.  
Question  
3. De conformidad con la página 51, párrafo 3.4. "Los importadores deben cumplir las 
prescripciones en materia de inspección y cuarentena de la Administración de Aduanas y la 
Administración Estatal General de Supervisión de la Calidad, Inspección y Cuarentena de China 
(AQSIQ), de conformidad con lo dispuesto en la legislación y en el Catálogo de Mercancías de 
Importación y Expor tación sujetas a Inspección Obligatoria. El Catálogo se modifica cada año, para 
agregar o eliminar productos, según sea necesario para proteger la salud de las personas y de los 
animales o preservar los vegetales y el medio ambiente, así como para impedir el fraude y 
salvaguardar la seguridad nacional."  
¿Podría informarnos China cuáles son los parámetros para modificar el Catálogo de  Mercancías de 
Importación y Exportación sujetas a Inspección Obligatoria? ¿Qué sucede cuando un producto 
importado desde un p aís ya tiene acceso pero está incluido en esa lista?  
Reply  
In accordance with the laws and regulations on entry -exit inspection and quarantine as well as the 
adjustments to the Customs Import and Export Tariff of the People's Republic of China and the 
catalogue of trade controls, the corresponding adjustments shall be made. The products listed in the 
catalogue shall be subject to inspection and quarantine supervisions according to the corresponding 
regulatory requirements, which mainly include import and ex port commodity inspection, quarantine 
of entry and exit animal and plant products, hygiene supervision and inspection of import and export 
food, and entry verification for civil commodities.  
Question  
4. De conformidad con la página 52, párrafo 3.13, El Arancel de China comprende tipos NMF, 
tipos arancelarios "de acuerdo", tipos arancelarios preferenciales especiales, tipos arancelarios 
generales y tipos aplicados dentro de contingentes arancelarios. Además, se aplican tipos 
arancelarios provisionales, qu e suelen ser inferiores a los tipos NMF, durante un período especificado 
(normalmente un año)."  
¿Podría China indicarnos qué parámetros se utilizan para categorizar a un producto como aplicable 
para los tipos arancelarios provisionales?  
Reply  
The provision al tariff rate is formulated by the Customs Tariff Commission of the State Council in 
accordance with the national foreign trade economic policy for a certain period of time. The 
provisional tax rate is lower than the most -favoured-nation rate and generall y applicable from 
1 January to 31 December of a year.  
Question  
5. De conformidad con la página 61, párrafo 3.42 "El MOFCOM tiene que hacer una determinación 
preliminar de la existencia de dumping, daño y relación causal entre ambos… La decisión de aplicar 
derechos antidumping provisionales corresponde a la Comisión Arancelaria del Consejo de Estado WT/TPR/M/3 75/Add.1  
 
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  (SCTC), por recomendación del MOFCOM, pero si se trata de medidas de otro tipo (constitución de 
un depósito, una fianza u otro tipo de garantía), la decisión la tom a directamente el MOFCOM."  
¿Podría informarnos China qué atribuciones y competencias tiene la Comisión Arancelaria del 
Consejo de Estado para determinar la aplicación de derechos antidumping?  
Reply  
One of the functions of the Office of Customs Tariff Commission is to study and propose the plans 
to levy anti -dumping duties, countervailing duties, safeguard tariffs, retaliatory tariffs and other 
tariff measures.  
Question  
6. De conformidad con la página 62, párrafo 3.44, establece que "En el plazo de 45 días  desde 
el anuncio de la determinación preliminar, el exportador puede ofrecer compromisos relativos a los 
precios, o el MOFCOM puede proponérselos al exportador.  
7. De conformidad con las Normas Provisionales sobre los Compromisos relativos a los precios, 
para aceptar un compromiso, el MOFCOM tiene que tener en cuenta el daño determinado, la 
posibilidad de elusión y el interés público."  
¿Podría China informarnos en qué condiciones se aplica estos compromisos relativos a los precios 
(puntos 6 y 7)?  
Reply  
Accord ing to MOFCOM 's Interim Rules on Anti-dumping Price Undertakings ， the investigatory 
apparatus  will take in to the following factors into consideration when determine whether the prices 
undertakings are accepted, i.e., whether the injuries caused by dumping could be el iminated; 
whether there are effective measures to monitor the prices; whether it is in line with the interests 
of China; Whether there are possibilities of circumvention ; other factors that the investigatory 
apparatus  regards as necessary to be examined.  
Question  
8. De conformidad con la página 162, cuadro 4.19 Planes de acción para el sector de la tecnología 
de la información y sus subsectores durante el período de 2016 a 2020, dentro de los planes se 
incluye el Plan de Acción Trienal para el De sarrollo del Comercio Electrónico Industrial.  
¿Podría China compartir mayor información sobre cuál es el alcance y funciones de este Plan?  
Reply  
To promote innovati ve development of the industrial E -commerce, accelerate the transaction way, 
operation mode, organization form and management system of the innovative industrial business, 
continuously stimulate the innovation vigor, development potential and transformation power of 
manufacturing enterprises, the Ministry of Industry and Information Technology published 
Three -Year Action Plan for Development of Industrial E -commerce  (hereinafter referred to as Action 
Plan) in September 2017. Action Plan  mainly includes promot ing application, popularization, 
deepening of industrial E -commerce, platform cultivation promotion, perfection of support system, 
optimization of development environment, etc. and aims at promoting online, network and teamwork 
orientation of transaction w ay and operation mode of industrial enterprise, effectively facilitating 
information exchange and integrated cooperation to the whole manufacturing process, full industrial 
chain and the full life cycle of the product, realizing the new type production mod es of personalized 
customization, network -based collaboration and service -based manufacture, etc. and open, flat, 
platform -based organization management modes, and powerfully promoting transformation, 
upgrading of the manufacturing industry and transformat ion of new and old kinetic energies.  
  WT/TPR/M/3 75/Add.1  
 
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  ECUADOR  – BATCH  2 
Informe de China  - WT/TPR/G/3 75 
Question  
1. De conformidad con las p áginas 18 a la 21, p árrafo 5.9, donde se menciona que "Las 
cuestiones relacionadas con la agricultura, las zonas rurales y la poblaci ón rural han sido siemp re el 
elemento central de la labor del Gobierno chino. En enero de 2018, China public ó directrices para la 
aplicaci ón de la estrategia de revitalizaci ón del medio rural. Se propone impulsar la reforma 
estructural de la agricul tura del lado de la oferta y ajustar el esquema de desarrollo orientado a la 
producci ón para que est é más centrado en la calidad y el desarrollo respetuoso con el medio 
ambiente. Se deben mejorar la ciencia y la tecnolog ía agropecuarias, promover m ás aún la 
mecanizaci ón integral y fortalecer las infraestructuras y servicios p úblicos en las zonas rurales. China 
profundizar á más aún la reforma rural, incluyendo el sistema de tierras rurales en un enfoque global. 
Se seguir án perfeccionando las pol íticas y medi das de apoyo a la agricultura para establecer un 
mecanismo que cuente tanto con incentivos como con restricciones, que est é orientado a la 
protecci ón del medio ambiente y promueva el uso racional de los recursos agr ícolas y la protecci ón 
del medio ambiente ". 
¿Podría China indicar si las estrategias desarrolladas abarcan a todo el sector rural, sin 
discriminaci ón, o tiene requisitos para poder acceder a las mismas, y en base a qu é variables se 
desarrollaron dichas estrategias?  
Reply  
Report of the 19th CPC National Congress, and Views of the CPC Central Committee and the 
State  Council on Implementing the Rural Vitalization Strategy  (ZF [2018] No. 1) have proposed 
specific requirements for the rural vitalization strategy, and the rural vitalization strat egy includes 
all agricultural fields, without access requirements.  
Question  
2. De conformidad con la p ágina 5, p árrafo 3.6, donde se indica que "El 1 de julio de 2017 se 
empez ó a aplicar en todo el pa ís la reforma del despacho de aduana integrado. Se han e stablecido 
centros nacionales de prevenci ón y control del riesgo aduanero y de cobro y administraci ón de 
aranceles, y se ha empezado a aplicar a las operaciones de despacho de aduana un enfoque de 
declaraci ón única y tramitaci ón por etapas. Asimismo, se ha seguido avanzando en el 
establecimiento de la ventanilla única para el comercio internacional. Actualmente se encuentra en 
funcionamiento una ventanilla única de formato uniforme en todos los puertos de entrada al 
país (...)".  
¿Podría China confirmar qu é certificados, permisos o licencias se encuentran incluidos en la 
actualidad en la ventanilla única, y que se generan de forma electr ónica por los organismos 
estatales? ¿Se podr ía explicar el funcionamiento de las ventanillas únicas, su integraci ón entre ellas 
e intercambio de datos con los procesos de despacho aduanero, con la finalidad de identificar 
homólogos que puedan ser de utilidad en el intercambio de informaci ón?  
Reply  
At the end of 2017, the standard version of the sin gle-window was fully covered at all ports across 
the country. Up to now, the nine basic functions of the standard version of the "single window", 
including cargo declaration, manifest declaration, declaration of transport facilities, licen ce 
application, a pplication of certificate of origin, enterprise qualification, inquiry statistics, export tax 
rebate and tax payment, have been completed, realizing the total docking with the Ministry of Public 
Security, the Ministry of Environmental Protection, the Minis try of Communications and other 
11 ministries and commissions, and providing 148 external services, basically covering the main 
process of the major customs clearance business. For the next step, the General Administration of 
Customs will deepen the single  window construction plan and incorporate the relevant service 
functions such as the special customs supervision area, comprehensive test area for cross -border WT/TPR/M/3 75/Add.1  
 
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  e-commerce, pilot free trade zone and free trade port into the single window, further promoting the 
coordination and simplification of the data, documents, process of customs clearance  
About Internet + Customs  
1. Promoting the construction of "Internet + Customs" is an important part of the new 
generation of customs information system.  
2. "Internet + Customs" represents the adoption of Internet thinking. Through "establishing 
a set of standards and building a platform" to cover all customs business that aimed at 
enterprises and individuals, realizing the custom services of applying with one number, 
handling in one window and managing in one network".  
3. According to the requirements of the "Internet + Government Services" of the State 
Council, all administrative services (including declaration of goods) of the current Customs 
shall be fully incorporat ed into the "Internet + Customs" system; at the same time, 
according to the requirements of the construction of Single Window in the international 
trade proposed in the State Council on the Implementation of Mutual Exchange of 
Information, Mutual Recogniti on of Regulation and Mutual Assistance in Law Enforcement 
in Port Administration to Promote Construction for Greater Customs Clearance, the 
business involving international trade links (such as cargo declaration) should be included 
in the single window of international trade, realizing the declarations of enterprises to the 
various administrative departments of the port only need one type -in. The administrative 
services handled by "Internet + Customs" are more inclined to use Internet technology to 
optimize  the methods and means and improve the work efficiency.  
Question  
3. De conformidad con la p ágina 11, p árrafo 3.33: que menciona "En la Zona Franca 
Experimental de Shangh ái se han aplicado 38 medidas de facilitaci ón de las 40 que figuran en el 
Acuerdo sobre  Facilitaci ón del Comercio de la OMC. La ventanilla única para el comercio internacional 
en Shangh ái, que ha entrado en la era 3.0, abarca varios m ódulos funcionales, como los relativos a 
la declaraci ón de carga, la declaraci ón del medio de transporte, el comercio electr ónico 
transfronterizo y la informaci ón sobre log ística, y vincula a todos los organismos de reglamentaci ón 
que trabajan en la esfera del comercio (...)".  
¿Podría China detallar las caracter ísticas de los m ódulos funcionales que abarca la Ventanilla única 
para el comercio internacional en Shangh ái? ¿Ésta ventanilla única en Shangh ái integra a todos los 
organismos o autoridades estatales? ¿Podría explicar cu ál es la funcionalidad de esta herramienta 
entre los documentos de control (permisos, certificados, requisitos) y las declaraciones aduaneras?  
Reply  
In accordance with the overall guidance of China's Framework Opinions on the Construction of Single 
Window for International Trade, Shanghai further expanded its local application functions to achieve 
the integration and docking with the national single window. The functions cover all aspects of 
customs clearance, including delivery, declaration, inspection, pa yment, release, etc., as well as the 
supervision of the first -line and second -line of the free trade zones; and extend to trade management 
links, such as licen ce qualifications and export tax rebates; also extend to the procedures for the 
manifest, booking , packing and boxing of logistics. It is featured by the function of Supervis ion + 
Service. Shanghai's single window for international trade connects 22 departments and serves 
270,000 enterprises. As a part of the national integrated single window environm ent, the single 
window in Shanghai has been docked with the standard specification of the national single window, 
including cargo declaration, manifest declaration, enterprise qualification, trade licen ce and other 
functional sections, forming a central an d local two -level platform and an integrated environment in 
which basic "commonness" and port "characteristics" are integrated.  WT/TPR/M/3 75/Add.1  
 
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  Question  
4. Finalmente, se solicita conocer ¿cuáles son los avances que ha realizado China en relaci ón al 
Acuerdo de Facilitaci ón de Comercio, Art ículo 10 "Formalidades en la importaci ón, exportaci ón y 
tránsito, p árrafo 4) Ventanilla Única"?  
Reply  
I. The General Administration of Customs, P. R. China launched the nationwide customs clearance 
integration reform at the end of 2014. Its core content is two centr es and three systems, that is, 
the General Administration of Customs, P. R. China established the Risk Prevention and Control 
Centers (RPCC) and the Tax Collection and Administration Centers (TCAC), implementing Once 
declaratio n, stepped processing to reform the tax collection and management methods and optimize 
coordinated supervision.  
Through the establishment of the Risk Prevention and Control Centers and the Tax Collection and 
Administration Centers directly under the Genera l Administration of Customs of China (two centr es), 
the implementation of law enforcement operations such as control, audit, prevention and control are 
coordinated, completing the key businesses such as national customs risk prevention and control 
and tax collection and administration to be disposed in a concentrated, unified and intelligent way. 
The intermediate links of manual disposal are eliminated and simplified, and the non -essential 
enforcement operations before release are maximally reduced. At the same time, the 
implementation of Once declaration, stepped processing is carried out in the nationwide customs, 
that is, changing the current series -type operation process of the customs concerning the acceptance 
of the declaration, review, inspection, tax ation and release. Based on the advance transmission of 
the manifest, the risk prevention and control centr e and the tax collection and administration centr e 
shall move forward and push back the risk screening of the manifests and customs declaration and 
the business site disposal operations. After the enterprises complete customs declaration and tax 
self-reporting procedures, the safety access risks are mainly disposed at the customs clearance site, 
and the tax risks are mainly disposed after the release o f the goods. The tax collection and 
administration methods have also changed. In the customs clearance of goods, in the past, customs 
carried out inspections to determine the tax elements and tax payable of enterprises, which is 
converted into enterprises tax elements for self -declaration, self -calculation and payment of taxes, 
the goods are released after customs acceptance, and the whole process is checked randomly.  
After a period of preparation, on 1 June 2016, the pilot of national customs clearance int egration 
reform was launched; on 1 July 2017, the national customs clearance integration was fully promoted. 
This reform shall enable enterprises to enjoy a number of dividends: firstly, they can choose to 
declare at any place, eliminating the restrictions  on the declared customs area; secondly, the 
customs enforcement is more unified. Under the disposal of the "two centers," the national customs 
clearance policies and regulations are more consistent in the implementation standards; thirdly, the 
efficiency is greatly improved. The procedures for customs clearance at the port are simplified, which 
reduces the customs clearance time at the port.  
II. At the end of 2017, the standard version of the single -window was fully covered at all ports across 
the country.  Up to now, the nine basic functions of the standard version of the "single window", 
including the cargo declaration, manifest declaration, declaration of transport facilities, licen ce 
application, application of certificate of origin, enterprise qualifica tion, inquiry statistics, export tax 
rebate and tax payment, have been completed, realizing the total docking with the Ministry of Public 
Security, the Ministry of Environmental Protection, the Ministry of Communications and other 
11 ministries and commiss ions, and providing 148 external services, basically covering the main 
process of the major customs clearance business. For the next step, the General Administration of 
Customs will deepen the single window construction plan and incorporate the relevant se rvice 
functions such as the special customs supervision area, comprehensive test area for cross -border 
e-commerce, pilot free trade zone and free trade port into the single window, further promoting the 
coordination and simplification of the data, document s, process of customs clearance . 
Informe de la Secretaría - WT/TPR/S/375  
5. Respecto la p ágina 82, p árrafo 3.136, en el cual se menciona que "El principal texto legislativo 
por el que se rigen las prescripciones sanitarias y fitosanitarias de China no ha sido modificado desde WT/TPR/M/3 75/Add.1  
 
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  el anterior examen. La última revisi ón de la Ley de Inocuidad de los Alimentos e ntró en vigor el 
1 de octubre de 2015, y en ella se destacaban las siguientes cuestiones: 1) la gestión  de los riesgos 
relativos a la inocuidad alimentaria; 2) la gesti ón de la inocuidad de los alimentos en el origen; 3)  la 
responsabilidad principal que ti enen los productores y operadores alimentarios de garantizar la 
inocuidad de los alimentos; 4) la responsabilidad que tienen los gobiernos locales de garantizar la 
inocuidad alimentaria; 5) la supervisi ón y gesti ón de la inocuidad alimentaria; 6) la gobern anza 
social de la inocuidad alimentaria; y 7) la sanci ón de las infracciones graves de la Ley de Inocuidad 
de los Alimentos".  
OBSERVACI ÓN: En los puntos detallados respecto a la última revisi ón de la ley de Inocuidad de 
Alimentos se deber ía incluir una bre ve descripci ón de cada uno de ellos, con la finalidad de aclarar 
a lo que se refieren.  
Reply  
The 2015 amendment to the China 's Food Safety Law is a comprehensive revision. There are 
154 articles in total, one third of which are new terms, and more than two thirds of the original 
terms have been revised. In the case that the revised legal provisions have been fully disclosed, 
there is no need to explain them one by one. The main contents of this revision are as follows:  
1. Improve the basic system.  
2. Improve the food safety supervision system.  
3. Add requirements for risk grading management and implement risk grading 
management.  
4. Add a self -inspection system for production operators.  
5. Further refine the process management obligations of food producers  and operators.  
6. Improve the food traceability system.  
7. Add regulations on the registration, filing system and the approval system for 
advertisements of health food products, and standardize the use and function claims of 
raw materials for health foods . 
8. Further clarify the import and export food management system, focusing on the 
management of ports that import food.  
9. Add a responsibility interview system.  
10. Provide the reward reporting system for food safety to promote social supervision.  
11. Regulate food safety information release.  
12. Add a food safety liability insurance system.  
13. Highlight the civil liability for compensation and stipulate the implementation of 
advanced compensation system.  
14. Increase administrative penalties for illegal  acts. 
15. Create a good linking with criminal responsibility.  
Question  
6. De conformidad con la p ágina 163, p árrafo 4.105, en el que se indica "El 29 de diciembre de 
2016, el Ministerio de Agricultura public ó el Decimotercer Plan Quinquenal para el Desarrollo de la 
Mecanizaci ón Agr ícola, en el que se fij ó el objetivo de aumentar la tasa de mecanizaci ón de la 
plantaci ón y recolecci ón de los principales cultivos al 70% para 2020. En el plan "China 
Manufacturing de 2025", se considera el sector de la maquinaria agr ícola como uno de los 
diez sectores prioritarios".  
¿Podría China indicar cu áles ser án los impactos positivos o negativos de la implementaci ón de 
maquinaria agr ícola sobre la mano de obra? ¿En qu é nivel afecta este plan a la tasa de empleo 
nacional, la mano de obra seguramente ser reemplazada por maquinara, o c ómo se manejar esta 
implementaci ón de tecnolog ía en el área agr ícola, para evitar el desempleo?  
Reply  
The agricultural mechanization can effectively improve the agricultural productivity and the labo ur 
productivity so as to free labo ur force from heavy hand labo ur, better promote the employment 
quality of the rural labo ur force and increase the income level. In recent years, national rural 
residents ' incomes grow fast, in which the per capita disposable family income from wage and salary WT/TPR/M/3 75/Add.1  
 
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  and the net income from operations are increased from CNY 3,653, and CNY 3,935, respectively, in 
2013 to CNY 5,498 and CNY 5,028, respectively, in 2017, wit h annual growth of 10.8% and 6.3%, 
respectively.  
Although the agricultural mechanization will replace part of hand labo ur in a short term, the 
employment growth can be promoted in the long term through enlarging the production scale, 
promoting the transfer  employment of rural labo ur force. During 2012 -2017, the employees of the 
first industry were reduced from 258 million to 209 million, but a lot of labo ur forces were transferred 
to the second industry and the third industry. Particularly the employees of the third industry were 
increased from 277 million to 349 million, with an annual growth of 14.36 million people. In the 
corresponding period, the urban and rural employments in China continued to increase from 
767 million to 776 million, with an annual gr owth of 1.87 million people. Particularly the total number 
of peasant workers is increased from 263 million to 287 million, with an annual growth of 
4.78 million.  
To avoid unemployment of labo ur force in mechanization of the agricultural field, we will dee ply 
implement the employment priority strategies and more positive employment policies. 1. Stick to 
steady growth and promote employment. Stick to implementing positive fiscal policies and sound 
monetary policies, focus on promoting the structural reform o f the supply side, continue to enlarge 
the domestic demand, ensure the economic operation within a reasonable interval, promote 
economic growth and enlarge good employment interaction and support employment growth based 
on economic development. 2. Broaden the transfer employment channel of rural labo ur force. Strive 
to develop light industry, service industry and other industries and enterprises with strong absorptive 
employment capacity, cultivate and expand characteristic industry clusters of large counti es and 
townships, and actively develop the leisure agriculture, rural e -commerce and other new industries 
and new modes to create more employment opportunities. 3. Strengthen vocational training for rural 
labour force. Pursue lifelong vocational training s ystem, further strengthen public training base 
construction, and powerfully promote the basic ability of vocational training. Actively organize 
pointed vocational training actions, and focus on promoting the vocational skills of rural labo ur force 
and the ability of transfer employment. 4. Continue to strengthen the public employment service. 
Improve public employment service covering both urban and rural areas and enhance the ability of 
public employment service. Speed up the establishment of a uniform, op en, competitive and orderly 
human resource market system, and better promote free movement of rural labo ur force in urban 
and rural areas, regions and industries.  
Question  
7. De conformidad con la p ágina 83, p árrafo 3.3.2.2 , Certificaci ón de productos punto  3.127, con el 
cual se mencionan que "Las Leyes y Reglamentos que rigen el sistema de certificaci ón de China no 
han experimentado cambios desde su anterior examen. China tiene un sistema de certificaci ón 
voluntaria as como un sistema de certificaci ón de productos obligatoria. La Administraci ón Nacional 
de Certificaci ón y Acreditaci ón de China (CNCA), que depende de la AQSIQ, se encarga de la gesti ón 
de ambos sistemas. La certificaci ón y la acreditaci ón se rigen por los instrumentos siguientes: "(...) 
las Medidas relativas a la Administraci ón de la Certificaci ón de Productos Org ánicos (...) ". 
¿Podría China indicar cu áles son las medidas relativas a la Administraci ón de la certificaci ón de 
Productos org ánicos?  
Reply  
At present, China's management measure s for organic product certification are mainly the 
Administrative Measures for Organic Products Certification (AQSIQ Order No. 155). The measure 
has been implemented as of 1 April 2014.  
Question  
8. De conformidad con la p ágina 85, p árrafo 3.139, en el que se indica que "E n el Cat álogo de 
Productos B ásicos sujetos a Inspecci ón y Cuarentena de Entrada y Salida se enumeran todas las 
importaciones y exportaciones sujetas a inspecci ón obligatoria por las autoridades de cuarentena 
e inspecci ón de entrada y salida  antes de su comercializaci ón en China o su salida del pa ís. WT/TPR/M/3 75/Add.1  
 
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  ¿Podría China indicar si los productos org ánicos requieren de cuarentena e inspecci ón de entrada 
antes de su comercializaci ón en China?  
Reply  
Inspection organizations will inspect a certain proportion of agricultural products, including organic 
agricultural products, according to product risks and process supervision before putting them on the 
market in China (or exporting).  
Question  
9. De conformidad con la p ágina 86, p árrafo 3.142, donde se  menciona que existe "el proyecto de 
modificaci ón del reglamento referido a los organismos modificados gen éticamente ". 
¿Podría China indicar cu ál es la modificaci ón del reglamento de los organismos modificados 
genéticamente y en especial referente a la selecci ón de semillas de las variedades para cultivos 
modificadas gen éticamente?  
Reply  
As for the examination and approval of biotechnological products, China always follows the principles 
of law, science, standard and transparency, strictly observes laws  and regulations and conducts 
safety assessment, without any fundamental changes. At present, in order to standardize 
intermediary services of administrative approval, corresponding adjustments are made only 
according to unified deployment of administrativ e approval reform: 1. Relevant administrative 
approval is cleared up and fee collection is cancel led; 2. The Ministry of Agriculture and Rural Affairs 
entrusts a testing organization to conduct detection, which changes the main unit entrusted by the 
test, but there is no change on concrete approval procedures.  
Question  
Por otra parte, se solicita a la China que nos ayude con la siguiente informaci ón:  
La China, al igual que todos los pa íses busca cumplir con la normativa internacional respecto a la 
aplicaci ón de medidas sanitarias y fitosanita rias. En este sentido, es necesario que brinde un 
sustento t écnico para lo siguiente:  
El Ecuador es reconocido como "País libre de fiebre aftosa con vacunaci ón" por la Organizaci ón 
Mundial de Sanidad Animal - OIE, desde el 2015; sin embargo. China no reconoce esta certificaci ón 
alcanzada por Ecuador, y para el reconocimiento de su estatus frente a fiebre aftosa, China solicita 
se realice un an álisis de riesgo, proceso que actualmente el Ecuador se encuentra en esper a de una 
respuesta oficial.  
Reply  
According to WTO's and OIE's rules, in order to protect the safety of domestic animals, each member 
state is entitled to draw up measures higher than OIE standards based on scientific analysis. China 
has never had mad cow  disease, so China is cautious about lifting the ban related to the outbreak 
of mad cow disease. China conducts risk analysis on the premise of being recognized as a country 
with negligible BSE risk by OIE. At an earlier stage, China lifts the outbreak ban  of boneless beef 
aged below 30 months for Britain, France and other countries with negligible BSE risk on the basis 
of risk analysis. If Ecuador makes an application, China will conduct risk analysis according to the 
same standards.  
Question  
Se considera que esta medida carece de sustento t écnico, debido a que el estatus zoosanitario del 
Ecuador es reconocido por una organizaci ón internacional. Motivo por el cual solicitamos se nos 
otorgue una explicaci ón técnica de la aplicaci ón de esta medida por parte d e China al Ecuador.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
According to WTO's and OIE's rules, in order to protect the safety of domestic animals, each member 
state is entitled to draw up measures higher than OIE standards based on scientific analysis. China 
has never had mad cow disease, so China is cautious about lifting the ban related to the outbreak 
of mad cow disease. China conducts risk analysis on the premise of being recognized as a country 
with negligible BSE risk by OIE. At an earlier stage, China lifts the outbreak ban of boneless beef 
aged below 30 months for Britain, France and other countries with negligible BSE risk on the basis 
of risk analysis. If Ecuador makes an application, China will conduct risk analysis according to the 
same standards.  
Question  
Se solicita re mitir los documentos que hacen referencia a las siguientes normativas, del punto 3.3.3 
Prescripciones sanitarias y fitosanitarias:  
Medidas sobre la Supervisi ón y Administraci ón de la Inspecci ón y Cuarentena para la Entrada 
y Salida de Cereales (Decreto N 1 77, de 2016, de la AQSIQ).  
Reply  
http://www.aqsiq.gov.cn/xxgk_13386/jlgg_12538/zjl/2016/201602/t20160202_460414.htm  
Question  
Medidas para la Administraci ón de Unidades y Personal dedicados a la Cuarentena de Entrada 
y Salida (Decreto N 181, de 2016, de la AQSIQ).  
Reply  
http://www.aqsiq.gov.cn/xxgk_13386/jlgg_12538/zjl/2016/201605/t20160503_465692.htm  
Question  
Medidas Administrativas sobre las Licencias Sanita rias en Frontera (Decreto N 182, de 2016, 
de la AQSIQ) . 
Reply  
http://www.aqsiq.gov.cn/xxgk_13386/jlgg_12538/zjl/2016/201605/t20160531_467544.htm  
Question  
El Catálogo de Productos B ásicos sujetos a Inspecci ón y Cuarentena de Entrada y Salida se 
enumeran todas las importaciones y exportaciones sujetas a inspecci ón obligatoria por las 
autoridades de cuarentena e inspecci ón de entrada y salida antes de su comercia lización en 
China o su salida del pa ís.  
Reply  
http://www.gov.cn/xinwen/2017 -01/03/content_5155830.htm  
Question  
Normativa fitosanitaria mediante la cual China establece los Requisitos Fitosanitarios de 
Importaci ón de plantas, partes de plantas y otros art ículos reglamentados.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Additional law and regulations to comply with: The Law of the People's Republic of China on the 
Entry and Exit Animal and Plant Quarantine  and its implement ation regulations.  
 
  WT/TPR/M/3 75/Add.1  
 
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  TURKEY  
Report by China - WT/TPR/G/375  
3. APPLYING A NEW DEVELOPMENT VISION AND ESTABLISHING NEW INSTITUTIONS OF 
AN OPEN ECONOMY  
3.1 Setting new mechanisms for sustainable trade development, 3.1.2 Continuously 
enhancing trade facilitation, p age 5, paragraph 3.7 
It is stated in the Government Report that "In addition, China has also taken a series of substantial 
measures in foreign exchange administration to facilitate trade and investment. Pilot programme s 
were carried out to f acilitate foreign exchange payments concerning cross - border E -commerce or 
via third -party payment agencies. Supporting policies and measures were developed for the Bond 
Connect, i.e. cross -border bonds transactions and settlement. Prudent macro administra tion policies 
for cross -border financing were further improved. Reform of external debts administration through 
filing for record was pushed forward steadily to meet corporate financing needs. Foreign exchange 
market was also further opened to allow foreig n investors in the interbank bond market to participate 
in foreign exchange derivatives transactions in China. " 
Question  
Could China further explain pilot programme s concerning payments of cross -border e - commerce? 
Do these programme s concern collaboration  with local payment systems of different countries or do 
they only focus on promoting national payment systems in China such as Alipay?  
Reply  
Firstly, the policy and licen ce of cross -border foreign exchange payment business. In February 2013, 
the State Administration of Foreign Exchange issued the Notice on the Pilot Cross -border 
E-Commerce Foreign Exchange Payment Services of Payment Institutions  (HZF [2013] No. 5), which 
decides to launch pilot cross -border foreign exchange payment services of Internet payment 
institutions in Shanghai, Beijing, Zhejiang, Shenzhen and Chongqing. In January 2015, the Notice 
on the Pilot Cross -border Foreign Exchange Payment Services of Paymen t Institutions  (HF [2015] 
No. 7) was issued, and the pilot work was further pushed to the whole country. At present, a total 
of 33 payment institutions in China have obtained pilot qualifications for cross -border foreign 
exchange payment services. Second, the policy and licen ce of the cross -border RMB payment 
business. In June 2014, the People's Bank of China issued the Guiding Opinions of the People's Bank 
of China on Implementing Several Opinions of the General Office of the State Council on Supporting 
the Steady Growth of Foreign Trade  (YF [2014] No. 168), summarizing the experience and methods 
of payment institutions in cross -border RMB Internet payment services in the Shanghai Free Trade 
Zone and clarifying that banks may cooperate with payment institut ions to conduct cross -border 
RMB payment and settlement services. The bank shall sign a business agreement with the payment 
institutions and report it to the local branch of the People's Bank for the record. At present, 
105 payment institutions across the country have filed in the cross -border office of the local People's 
Bank. The third is the cross -border payment business of payment institutions. With the upgrading 
of Chinese residents' consumption, the transformation of the traditional foreign trade indu stry has 
been accelerating, and the cross -border payment business of payment institutions has been quite 
large. The payment institutions in China need to cooperate with overseas payment institutions, 
banks, bank card clearing institutions, etc. when provid ing cross -border payment settlement services 
of export business to domestic users. At the same time, when the payment institutions provide 
payment services to overseas local users, in addition to obtaining business qualifications, they may 
need to access t he local payment system.  
3.1.3. Developing new modes of trade and business models, p age 5 
It is stated in the Government Report that "China has been working hard in replacing driving forces 
and adjusting structures, and has undertaken and expanded pilots on cross -border e -commerce and 
market purchase trade mode. 13 pilot zones on cross -border e -commerce in Hangzhou and other 
cities were promoted. Policy framework conducive to the development of cross -border e -commerce 
is taking shape. " WT/TPR/M/3 75/Add.1  
 
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  Question  
Could China  further explain the characteristics of pilot zones on cross -border e -commerce? What are 
the different implementations on logistics, payment and customs procedures that take place in these 
pilot zones?  
Reply  
Since the launch of China's cross -border e-commerce pilot project in 2012, the Chinese government 
and relevant departments have issued a series of policies and measures to encourage and regulate 
the healthy and orderly development of cross -border e -commerce industry. China Customs has 
followed th e rules of e -commerce and exerts the traceability of e -commerce data in the whole 
process, innovating ideas and methods, reforming the supervision mode, and optimizing the 
supervision and service to make a positive attempt in the import and export of cross -border 
e-commerce retail. It has explored the regulatory measures adapt to the development of cross -
border e -commerce and proposed four new types of customs clearance supervision modes: general 
export, special regional export, direct purchase import and b onded import of online purchase. It has 
put forward the management measure of checklist verification and release and consolidated 
declaration.; added three new types of cross -border e -commerce supervision methods; established 
a filing management system for  cross-border e -commerce enterprises, and improved the relevant 
systems for cross -border e -commerce statistics; from May 2015, it has implemented operation time 
and customs clearance time requirement of the cross -border trade e -commerce, that is the restle ss 
year round(365 days) and clearance of customs within 24 hours after the goods arriving at the 
customs supervision area. It has designed and developed the information al customs clearance 
management system for cross -border e -commerce retail import and exp ort, at the same time, 
actively cooperated with local governments to build an e -commerce supervision service platform for 
promoting cross -border E -commerce development.  
3.5 Building pilot free trade zones according to high standard, 3.5.3 New and creative 
measures facilitating the role economy development, p age 10, paragraph 3.34 
It is stated in the Government Report that "The Shanghai Pilot FTZ developed a new model of 
administration of cross -border capital flow by creating a system of free trade accounts.  By the end 
of 2017, approximate 70,000 free trade accounts had been opened cumulatively in Shanghai Pilot 
FTZ, covering business transactions of more than 30,000 enterprises home and abroad which had 
involved over 120 countries and regions.  Supporting pub lic services systems in the pilot FTZs are 
also constantly improved. " 
Question  
Could China provide detailed information about supporting public services systems in Free Trade 
Zones?  
Reply  
The respective pilot free trade zone has made efforts to crack down the difficulties that constrain 
innovation and entrepreneurship, takes measures to create the talent environment that is in line 
with the international standards, and constantly improves the public service support system. For 
example, Shanghai and Tianjin Pilot Free Trade Zone have reformed the systems of high -level talent 
introduction and foreign student employment, etc. to solve the bottleneck of innovation; Guangdong 
Pilot Free Trade Zone has created an entrepreneurial service system integrating entrepre neurial 
services, incubator clusters, investment and financing; Hubei Pilot Free Trade Zone has innovated 
technology financial products to solve the financing problems of small and medium -size enterprises 
in the Pilot Free Trade Zone.  WT/TPR/M/3 75/Add.1  
 
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  Report by the Secretariat - WT/TPR/S/375  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports, 3.1.5 Import prohibitions, restrictions, and 
licensing, p age 52, paragraph  3.27 
It is stated in the Secretariat Report that "China classifies imports into three categories: not 
restricted, restricted and prohibited. The import of restricted goods is administered through licences 
or import quotas, although the latter have not been applied during the period under review. 
Non-automatic l icences do not differentiate between the origins of products. " 
Question  
Could China give more information on restricted and prohibited goods and explain on what grounds 
these categorizations are applied? In addition, could China explain the functioning of its 
non-automatic import licensing system?  
Reply  
Please refer to the notification (2016) submitted by China to the WTO with respect to the import 
licensing procedures. Those on the Catalogue of Goods Subject to Automatic Import Licensing are 
all commoditie s that can be imported freely, without restrictions in quantity or other terms. Since 
2002, the automatic import licensing has in all cases been practiced out of the need to monitor 
import in accordance with paragraphs 1 and 2, Article 15 of the law on for eign trade and Articles 22, 
23 and 24 of the Regulations on the Administration of the Import and Export of Goods.  
Page 53, paragraph 3.33 
It is stated in the Secretariat Report that "According to the Foreign Trade Law, China may maintain 
import prohibition s on grounds of national security; social interests; public morals; human, animal 
and plant health; environmental protection; balance -of-payments reasons; and commitments under 
international agreements. The Catalogue of Commodities Subject to Import Prohib ition issued by the 
MOFCOM lists all prohibited products. In 2015, China's notification listed 365 products (HS 8 -digit 
level) including mainly machinery and transport equipment. " 
Question  
Given the fact that imports of certain machinery and transport equipment products have been 
prohibited via Catalogue of Commodities Subject to Import Prohibitions, could China elaborate the 
legal ground of these restrictions especially within the framework of GATT Article XX?  
Reply  
China bans the import of some old ma chinery and transport equipment (see the Catalogue of 
Commodities Subject to Import Prohibitions (Second Batch) ) for the purpose of safeguarding 
national security, social public interest or public morality; for protecting people's health or safety, 
the lif e or health of animals and plants and the environment. This item complies with the provisions 
of Article 20 of GATT 1994.  
3.2 Measures directly affecting exports, 3.2.3 Export prohibitions, restrictions, and 
licensing, p ages 62-63, paragraphs 3.76 & 3.79 -3.80 
It is stated in the Secretariat Report that "The State may restrict or forbid exports to: maintain 
national security and public morality; protect human, animal and plant health; protect the 
environment; protect exhaustible natural resources that are in short supply or require "effective 
protection "; organize "export business management "; comply with China's international 
commitments; or under any other circumstance as provided for in any law or administrative 
regulation. " WT/TPR/M/3 75/Add.1  
 
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  It is also stated in the Secretariat Report that "Export restrictions take the f orm of quotas or licences. 
China imposes global and destination -specific export quotas  …" 
"Goods that are subject to restriction are subject to non -automatic export licences  …" 
Question  
Could China provide examples of export restrictions under organizing "export business 
management "? Could China also explain how it justifies the implementation of "destination -specific 
export quotas " within the framework of GATT Article XIII?  
Reply  
Please refer to the notification on the quotas restriction submitted by China . 
4. TRADE POLICY BY SECTOR  
4.3 Manufacturing, 4.3.1 Recent developments, p age 140, paragraph 4.85 
It is stated in the Secretariat Report that "The Government 's main initiatives in recent years to 
promote manufacturing in China included the adoption of the  "China Manufacturing 2025 " plan, 
which was issued on 8 May 2015; it is a 10 -year national plan aimed at comprehensively upgrading 
China's manufacturing sector. The authorities state that the plan includes strategies for various 
industries including "strategic emerging industries ", which had been announced previously ". 
4.3.2 Selected subsectors , 4.3.2.3 Machinery and equipment, page 145, paragraph 4.109  
It is also stated in the Secretariat Report that "On 8 December 2017, the Plan of Intelligent 
Manufa cturing Development (2016 -2020) was issued by MIIT and MOF with a view to guiding the 
development of intelligent manufacturing. The Plan, inter alia , sets the goal of completing the 
digitalization of traditional manufacturing sectors by 2020; and establish ing the intelligent 
manufacturing support system by 2025. " 
Question  
Could China elaborate on the interrelatedness of the "China Manufacturing 2025 " and the "Plan of 
Intelligent Manufacturing Development " and touch upon the implementation process regarding the 
areas that coincide?  
Reply  
The purpose of "China Manufacturing 2025" is to provide information guidance for the market, and 
to propose the direction of intelligent manufacturing from the perspective of responding to the new 
technological revolution; from the content, "China Manufacturing 2025" is mainly based on the 
transformation and upgrading needs of China's manufacturing industry itself. It has elaborated on 
various aspects such as innovation capa bility, structural adjustment, quality and efficiency, and 
green manufacturing, etc.  
2.3.2  Regional Trade Agreements and Unilateral Measures, page 35, paragraph 2.25  
It is stated in the Secretariat Report that "According to the authorities, as the next ste p, China 
intends to construct a high -standard FTA network starting with neighbouring countries, extending to 
the countries participating in the Belt and Road Initiative and opening up to the whole world. China 
intends, together with free trade partners, to  continue to reduce tariff and non -tariff barriers, to 
mutually open up trade -in-goods and to strive for mutual benefits and win -win outcomes. Meanwhile, 
China intends to actively open up trade in services and areas of investment, promote facilitation and 
liberalization of trade in services and investment, and create better market access and investment 
protection conditions for Chinese investors that "go global".  WT/TPR/M/3 75/Add.1  
 
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  Question  
In the context of FTAs, could China explain what concrete steps are planned to be taken to promote 
economic and commercial integration with Belt and Road Initiative countries?  
Reply  
FTA is an important element of the Belt and Road Initiative. Up to now, China has inked five FTAs 
with 13 countries along the Belt and Road, and is involved  in five on-going FTA negotiations with 
ten countries and conducting Joint Feasibility Studies with another three  countries. Through FTAs, 
China and its FTA partners reduce tariffs and trade barriers, substantially open up markets and 
realize the free flow  of goods, promote trade liberalization and facilitation, and further unleash the 
potential of bilateral cooperation.  
The Belt and Road initiative put forward by China adheres to the market disciplines and the common 
international rules, and focuses on th e market -oriented operation. With enterprises as the main 
body, economic and trade cooperation is conducted with co -building countries. In the past five years, 
China has worked together with the countries along the route to continuously optimize and improv e 
the investment and trade environment, stimulate and release cooperation potential, and expand the 
cake of cooperation. The trade in goods has accumulated more than US D 5 trillion, and direct 
investment in countries along the route has exceeded US D 70 bil lion. 
Others  
In March 2018, Chinese Government announced that a new State Administration for Market 
Supervision (SAMS) will be established combining the existing responsibilities of the State 
Administration for Industry and Commerce (SAIC), General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ), and China Food and Drug Administration (CFDA).  
Question  
Could China explain whether the new system established under SAMS will be just a combination of 
the existing responsibilities of SAIC, AQSIQ and CFDA or will it have further responsibilities?  
Reply  
The main duties of the State Administration for Market Regulation are to take charge of 
comprehensive market supervision and management, to uniformly register market entities and 
estab lish an information publication and sharing mechanism, to organize comprehensive law 
enforcement of market supervision, to undertake unified anti -monopoly law enforcement, to 
standardize and maintain market order, and to organize and implement quality powe r strategies, 
and to take charge of industrial product quality and safety, food safety, special equipment safety 
supervision, unified management measurement standard, inspection and testing, certification and 
recognition.  
 
 
  WT/TPR/M/3 75/Add.1  
 
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  THAILAND – BATCH  1 
Report by the Secretariat - WT/TPR/S/375  
3.1.3  Tariffs , 3.1.3.1  Applied MFN tariffs  
Question  
Since January 2017, China had imposed duties on ten multi -component semiconductors (MCOs) that 
had previously been duty -free under the ITA Expansion Agreement as a  result of an amendment to 
the Harmonized System in 2017. The ten duty -free tariff lines, based on HS2012 nomenclature, 
were as follows: 8473.30.10; 8473.30.90; 8517.70.30; 8517.70.60; 8543.90.21; 8543.90.29; 
8543.90.30; 8543.90.40; 9026.90.00; and 9027.90 .00. Thailand requested China to clarify whether 
or not it intended to respect its duty -free commitments undertaken in the ITA Agreement.  
Reply  
As a major trader of information technology products, China has fully participated in the WTO 
Information Technology Agreement (ITA) expansion negotiations and is seriously fulfilling its 
relevant commitments. According to the rules of the World Customs Organization's Harmonized 
System in 2017, China has reclassified the multi -component ICs (MCO) tariff lines and determined 
the relevant tax rates based on the original tariff lines. The adjustment measures are in line with 
the relevant tariff conversion regulations and China's commitments in the WTO.  
  WT/TPR/M/3 75/Add.1  
 
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  THAILAND – BATCH 2  
Report by the Secretariat - WT/TPR/S/375  
Paragraph  3.141 , page  77 
Question  
As China has restructured organizations related to Sanitary and Phytosanitary Measure, could China 
elaborate the new organization to be in charge of SPS measure and the expected timeline to 
complete their restructuring?  
Reply  
Institutional reform has not yet been in place at present, and the related functions have not been 
clarified finally.  
Upon completion of institutional reform and final determination of the responsibilities, China will 
notify WTO Secretariat and the related countries of the relevant conditions according to the 
procedure.  
Paragraph 4.12 , page 115  
Question  
We note that China impose VAT on agricultural domestic and imported goods, however, agricultural 
goods produced and sold directly by farmers remain exempt from VAT.  
- Could China explain the rational for this discrepancy?  
- What is the criteria for determining the "agricultural goods produced and sold directly 
by farmers "? 
- What is the difference (e .g. Producing process, quality of product) between the 
agricultural products subject to be imposed VAT and exempt from VAT?  
- What kind of agricultural products that are exempted from VAT? Please give the 
example?  
Reply  
China implements the tax exemption policies on products directly produced and sold by p easants 
based on the followings: firstly, it is difficult for financial accounting and tax declaration because 
small -scale agricultural production in China is based on peasants and more than 0.2 billion peasants 
reside all over the country, so it is comple tely unfeasible to levy VAT from every peasant household 
based on administrative cost. This is a root cause for implementing this policy in China. Secondly, 
Chinese agricultural production is based on family unit, with small production and sales volumes. 
VAT exemption is only limited to sales of peasants self -made agricultural products, which is 
completely different from import of bulk products. There is no comparability for VAT policies of the 
two. It is understood that other members using the VAT system h ave similar policies of tax 
exemption for self -made agricultural products produced by the agricultural producers, and they do 
not exempt from the imported agricultural products.  
Agricultural products sold by the agricultural producers refer to the self -made agricultural products 
sold by units and individuals directly engaged in plant cultivation and harvesting and animal feeding 
and catching, including primary products of various plants and animals produced by such industries 
of planting, breeding, forestr y, livestock farming and aquaculture as grains, vegetables and livestock 
(for more details, see Notes on the Scope of Agricultural Products Subject to Taxation  issued by 
State Administration of Taxation in 1995 and Notice on Simplifying the Relevant Polici es on Value -
added Tax Rates  issued by the State Administration of Taxation and the Ministry of Finance in WT/TPR/M/3 75/Add.1  
 
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  April 2017. VAT shall be levied based on the specified tax rate from outsourced agricultural products 
sold by the aforesaid units and individuals and the agricultural products, also within the scope of the 
note, produced, processed and sold by units and individuals with outsourced agricultural products, 
which do not fall into the exemption scope.  
Paragraph 4.23 , page 118 
Question  
Since China has rearra nged the support programme, one reason is to change the modalities of 
certain policies so as to switch them from a WTO point of view from the amber box to the green one. 
No information was made available regarding how the subsidies schemes notified to WTO.  Could 
China give more information about these new subsidies schemes ? How did China notify them to 
WTO?  
Reply  
China has introduced conditions of management mode of the List of Large Specific plus Tasks in its 
replies to the related members. If the members are interested in specific execution way of the 
management mode, please refer to Notice of the Ministry of Agriculture and the Ministry of Finance 
on Implementation of Agriculture Production Programs Funded by the Central Government in 2017  
(NCF [2017] No.  11, website:  
http://www.moa.gov.cn/govpublic/CWS/201706/t20170608_5665176.htm ).  
The Chinese government will notify the related subsidy programme s in the domestic support 
notification as per the provisions of Agreement on Agriculture .  
Paragraph 4.25 , page 123  
Question  
The report stated that minimum purchase prices remain in place for rice and wheat in major 
producing areas. Could china elaborate the calculation method of the said minimum purchase price 
for rice?  
Reply  
The lowest purchasing price of rice in china is formulated by taking into account the production cost 
of grain, market supply and demand, domestic and national market price, industri al development, 
etc.  
Paragraph  4.85, page 140  
Question  
As the report mentioned that Chinese government had launched a policy to promote more innovation 
driven industry? Could china provide information on the detail of incentive to drive this policy. 
Further, what are the priority sectors in this policy?  
Reply  
On the one hand, innovation driving presents an irresistible trend all over the world. Since the advent 
the 21st century, global scientific and technological innovation has entered a unprecedente dly intense 
and active period, in which a new round of scientific and technical revolution and industrial revolution 
is reconstructing the global innovation layout and remodeling the global economic structure. Science 
and technology have never affected peo ple's life as deeply as today. Innovation driving has been 
the core strategy for most countries. On the other hand, innovation driving is required by the 
development trend. We must implement the innovation driving development strategy since it is no 
longer  easy to sustain the extensive economic development mode. This is a necessary option to 
transform the development way, optimize the industrial structure and convert the growth impetus.  WT/TPR/M/3 75/Add.1  
 
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  In connection with the industrial base and development status, china adheres to the principle of 
positioning on local conditions in terms of location, industry and situation background, so as to form 
the key development direction. There are the following five aspects specifically. Firstly, broaden the 
new internet economy space; secondly, promote transformation and upgrading of traditional 
industries; thirdly, accelerate innovative development of the bioindustry; fourthly, promote NEV, 
new energy and energy -conversation industry to form the new sustainable development mode; 
fifthly, promote digital creative industrial development to guide new consumption.  
Paragraph 4.86 , page 140  
Question  
The report stated that the Chinese authorities recognize the issue of  excess capacity in some 
manufacturing sectors, such as iron and steel, and have made efforts to reduce capacity in recent 
years. Could china provide information on plan to reduce the steel production capacity in the 
upcoming years?  
Reply  
Opinions of the s tate council on resolving excess capacity in the steel industry for development out 
of poverty  (gf [2016] no. 6) issued by the state council puts forward the task objective of reducing 
crude steel production capacity by 100 million to 150 million tonnes during the 13th five-year plan. 
Through the effort of all parties, the crude steel production ca pacity had been reduced by more than 
120 million tonnes by the end of 2017. To give full expression to china's responsibilities, the Chinese 
government put forward the task objective in 2018 to reduce the crude steel production capacity by 
30 million tonne s, and continuously and actively carry out work to solve the related excess capacity 
problem. This will ensure completion of the objective task of steel capacity reduction by 100 million 
to 150 million tonnes during the 13th five-year plan. In the future, China will not formulate new 
objective of reducing production capacity.  
  WT/TPR/M/3 75/Add.1  
 
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  GUATEMALA  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS , 3.3.7.3 Derecho de autor y 
derechos conexos  
Question  
Párrafo 3.247 
¿Podría el Gobierno de China ampliar la información sobre los procedimientos que se utilizan para la 
protección y administración de los de Derecho de Autor de las Obras literarias en línea?  
Reply  
On 4 November 2016, the General Office of the National Copyright Administration issued the Notice 
on Strengtheni ng the Administration of Copyrights in Cyberliterature , which puts forward the work 
requirements for strengthening administration of copyrights in cyber literature, and details are as 
follows: First is to require and guide the service providers of cyber li terature to fulfill the copyright 
review and duty of care for spreading literatures according to law, perfect its own copyright 
administration system, establish an infringement handling mechanism, a copyright complaint 
mechanism, actively accept complaints  from right holders, and handle the legal claims of right 
holders in a timely manner; Second is to require the network service providers for providing services 
such as search engines, browsers, forums, network disk, application stores, and Post Bar, Weibo,  
WeChat, etc., to perform duties of review and care in accordance with the law, and clearly indicate 
the manner in which the right holders notify and complain in the prominent position of the service 
platforms, and timely accept the notices and complaints of the right holders, and remove the 
infringing works within 24 hours after receiving the notice and complaint from the right holder, and 
disconnect the relevant link; Third is to require the network disk service providers for providing 
information storage  space services to abide by the Notice on Regulating the Copyright Order of 
Network Disk Services  of the National Copyright Administration, actively shield, delete infringing 
literary works, and prevent users from uploading, storing and sharing the infring ing literary works. 
Fourth is to establish a "black list and white list system" for supervision of copyrights of cyber 
literature works, publish the "black list" of network service providers for infringement and piracy of 
literary works at the right moment , and the "white list" for key supervision of cyber literature works 
by the National Copyright Administration.  
Question  
Párrafo 3.253  
¿Podría el Gobierno de China proporcionarnos información sobre las medidas de buenas prácticas 
que implementas las sociedades de gestión colectiva, con relación al cobro de los derechos de sus 
representados ¿El Gobierno de China podría ampliarnos sobre las normas de convivencia o 
interacción que existe entre las diversas sociedades de gestión colectiva existentes en el  país? 
Reply  
At present, China's copyright collective administration system is still at an early stage. The relevant 
government departments, including the National Copyright Administration, further improve the legal 
system for copyright collective administration starting from the aspects of system improvement, 
effective administration, support reinforcement, environmental enhancement and experiences 
introduction, etc. First is to actively carry out legal revision and formulation, and improve the leg al 
system for copyright collective administration. Second is to strengthen the supervision and support 
of copyright collective administration organizations, and establish a standardized copyright collective 
administration order. Third is to strengthen the publicity of the copyright collective administration 
system and the law enforcement crackdown on the copyright infringement and piracy, improve the 
external environment of copyright collective administration. In addition, actively use various media 
means t o broaden the channels of publicity and enrich the means of publicity. At the same time, 
increase law enforcement, continue to maintain active cooperation with the copyright collective 
administration organizations over copyright infringement and piracy, gi ve full play to the role of the 
right holders in organizing complaints and reports and co -ordination, and create a good environment WT/TPR/M/3 75/Add.1  
 
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  for survival and development of the copyright collective administration. Fourth is to continue to 
strengthen international e xchanges and cooperation, and absorb the successful experience of the 
copyright collective administration in the international community.  
  WT/TPR/M/3 75/Add.1  
 
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  MALAYSIA – BATCH  1 
Report by the Secretariat – WT/TPR/S/375  
3.1.4  Other charges affecting imports , page 50 , paragraph 3.25  
Imports, like domestically produced goods, are subject to Value Added Tax (VAT). VAT on imports 
is collected by Customs on behalf of the State Administration of Taxation (SAT) and based on the 
c.i.f. price plus the import duty. If goods are also subject to the consumption (excise) tax, VAT is 
calculated including the consumption tax. VAT on goods has two rates: 11% (down from 13% in 
July 2017) and 17%. The lower rate applies to various food products, agricultural machinery, and 
books. The lis t of products that are exempt from VAT has not changed since the previous review. 
Domestically produced agricultural products sold directly by the producer continue to be exempted 
from VAT, while imported goods are not. According to the authorities, the ma in beneficiaries of this 
provision are small -scale farmers.  
Question  
What are the proportion of the agricultural goods which are exempted from VAT?  
Reply  
This tax exemption policy is only applicable to agricultural products produced and sold by small -
scale farmers. Since these products are mainly the remaining agricultural products of farmers 
deducting their household consumption, the quantity and value of such products, less than the 
agricultural output value of relevant products, are difficult to be accur ately counted, China has no 
way to evaluate the tax exemption amount involved in the relevant policy . 
3.1.5  Import prohibitions, restrictions, and licensing , page 53 , paragraph 3.35  
Pursuant to the Foreign Trade Law, the authorities may also restrict or pr ohibit imports in "infant 
industries" (which is not further defined); agriculture, animal husbandry, and fishery; and the 
precious metals industry. According to the authorities, this provision was not used during the review 
period.  
Question  
While the "infant industry " is not defined in the Secretariat Report, can China share with what may 
constitute infant industry? Can China cite some examples?  
Reply  
There is no specific definition of infant industry in the Foreign Trade Law, which regulates in Article  16 
as The State may restrict or prohibit the import or export of relevant goods and technologies for the 
following reasons that: (7) where the import shall be restricted in order to establish or accelerate 
the establishment of a  particular domestic indust ry. However, China has not yet applied this 
clause to restrict import of relevant goods in practice.  
3.3 Measures affecting production and trade , 3.3.1  Incentives , page 69, paragraph  3.112  
Support is also available for small and medium enterprises. The Pla n on Promoting the Development 
of Small and Medium -sized Enterprises (2016 -2020)72, issued by the Ministry of Industry and 
Information Technology, points out the objectives and key projects for the promotion of SMEs during 
the 13th Five-Year Plan. However,  no details were provided on the concrete measures taken during 
the period under review.  WT/TPR/M/3 75/Add.1  
 
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  Question  
Noting the importance of the SMEs and MSMEs, we are interested to seek further details on the 
measures undertaken during the period of review under the Plan o n Promoting the Development of 
Small and Medium -sized Enterprises (2016 -2020)  
Reply  
According to the Plan on Promoting the Development of Small and Medium -sized Enterprises 
(2016 -2020)  (hereinafter referred to as the Planning"), the main tasks and measures to promote 
the development of SMEs during the "13th Five-Year Plan" period are as follows: Firstly, make effort 
to support entrepreneurship by focusing on promo ting the development of SMEs, enhancing the 
capability of entrepreneurial organizations, encouraging large enterprises to provide entrepreneurial 
support, and improving entrepreneurial services; Secondly, enhance our innovative capability by 
focusing on th e promoting the innovation and development of SMEs, expanding the application of 
information technology for SMEs, encouraging the collaborative innovation between SMEs and large 
enterprises, establishing of an innovation mechanism with enterprises playing a major role, and 
improving intellectual property services for SMEs; Thirdly,  promote the transformation and 
upgrading of the industry  and improve supply by focusing on promoting the effective supply of 
products and services from SMEs, guiding SMEs to the path of profession, fineness, specialness and 
innovation, establishing the branding of SMEs, and promoting the green development of SMEs, the 
development of industrial clusters and the coordinated development of SMEs; Fourthly, expand 
domestic and foreign markets by focusing on creating a fair and open market, expanding opening 
fields, guiding SMEs to develop markets, and supporting SMEs to "attract investment" and "venture 
abroad"; fifthly, transform the functions of government and improve services by focu sing on 
transforming governmental functions, reducing the cost of SMEs, improving government services 
and service system.WT/TPR/M/3 75/Add.1  
 
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  MALAYSIA – BATCH 2  
Report by China – WT/TPR/G/375  
3.1 Setting new mechanisms for sustainable trade development , page 4 , paragraph 3.2  
In recent years, the underlying impact of the international financial crisis persists, and the 
international environment and domestic circumstances have undergone complicated and profound 
changes. Against this background, development of China's trade is fa cing tremendous difficulties 
and challenges. China has been actively promoting the optimization of the international market 
layout and domestic regional distribution, as well as that of commodity structure, business entities 
and modes of trade. New forms o f business and trade models are explored. Innovative developments 
of processing trade are transferred among regions in gradient. Proactive and effective import policies 
are implemented. These efforts have resulted in remarkable outcomes in the development of China's 
trade, with the structure further improved, and the shift of driving forces accelerated. It is now 
brought back to stability and turns for better, which not only provides countries and regions around 
the world with broader markets and more oppor tunities for cooperation, but also makes contributions 
to global trade growth and economic recovery.  
Question 1  
What is China's position on sustainably produced Palm Oil?  
Reply  
China is the world's largest consumer of edible oil, and palm oil consumption is an important part of 
edible oil consumption. China's current palm oil consumption is all dependent on imports. In 2017, 
the import volume reached 5.03 million tonnes , mainly imported from Malaysia and Indonesia. In 
terms of domestic production, China's pilot oil palms plantation is still in its scientific research stages, 
and commercial planting has not yet been developed, mainly due to the restriction of resources and 
environment such as land and climate. In addition, the area of land resources developm ent and 
utilization in the hot area has reached the limit, which is not suitable for large -scale planting. In 
terms of production and demand, the gap between the supply of and the demand for edible vegetable 
oil in China will exist for a long time, and div ersified imports are needed to meet rapidly increasing 
domestic demand. China welcomes the sustainable production of palm oil in major producers. In the 
future, China will continue to import edible vegetable oils including palm oil according to domestic 
market demand to meet the diversified domestic needs for edible oil.  
Question 2  
Will China consider the possibility to promote biofuel as part of the way forward in supporting the 
sustainable renewable energy agenda for its domestic energy consumption?  
Quest ion 3  
What will be the incentive given in encouraging biomass (such as Oil Palm Trunk (OPT)) product, 
bio-waste (such as Palm Oil Mill Effluent (POME) and Empty Fruit Bunches (EFB)) products and by -
products (which can be turned into biogas and biodiesel) i nto its market?  
Reply to Questions 2 and 3  
China continues to improve the level of rural energy development, vigorously promotes the 
transformation and upgrading of rural power grids, advances the construction of key projects such 
as rural power transmissi on, strengthens the planning and layout of bio -natural gas and bio -fuel 
ethanol industries, improves the energy utilization of agricultural and forestry surplus resources, and 
explores new channels for improving rural ecological environment and increasing farmers' income.  
3.1.2 Continuously enhancing trade facilitation , page 5 , paragraph 3.6  
On 1 July 2017, the integrated Customs clearance reform was rolled out nationwide. National centers 
for Customs risk prevention and control and for tariff collection and administration were established, WT/TPR/M/3 75/Add.1  
 
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  and Customs clearance operations began to follow "one -time declaration and phased processing" 
approach. Meanwhile, construction of Single Window for international trade has been further pushed 
ahead. Single Window in a standard format is now implemented in all ports of entry in China. To 
further increase transparency, all Customs in China have introduced the version  1.1 online integrated 
platform for businesses. The nationwide average import clearance time in 2017 was 15 .87 hours, a 
36.85% decrease compared with 2016, and the average export clearance time was 1.11 hours, a 
38.24% drop from the previous year.  
Question 4  
What are the elements/characteristics and documents exchange under the Single Window in all ports 
of entry in China?  
Reply  
The goal of constructing international trade Single Window in China is to help the applicants gain 
direct access to and submit all standardized documents and electronic information that meet the 
requirements of port management and inter national trade related departments through the 
electronic port platform. Relevant departments share data information and administer through this 
platform. Applicants will be informed of the processing status (results) through the Single Window. 
With contin uous optimization and integration, the function of Single Window will cover all major links 
of the international trade chain, and Single Window will gradually become a major service access 
platform for enterprises and port management related departments.  
Question 5  
Which FTA partners are currently utilizing the single window mechanism established by China?  
Reply  
China attaches importance to the Single Window international exchanges and cooperation, actively 
promoted the establishment of Single Window cooperation mechanisms with other countries and 
regions, established relevant expert working groups and exchange mechanisms, and strengthened 
exchanges and cooperation with international organizations such as APEC, UN/ESCAP, WTO, and 
WCO. In recent years, China pays great attention to the exploration and promotion of information 
and data interconnection among key countries (regions) along the Belt and Road.  
3.1.3 Developing new models of trade and business models , paragraph  3.8 
China has been working hard i n replacing driving forces and adjusting structures, and has 
undertaken and expanded pilots on cross -border e -commerce and market purchase trade mode. 
13 pilot zones on cross -border e -commerce in Hangzhou and other cities were promoted. Policy 
framework co nducive to the development of cross -border e -commerce is taking shape.  
Question 6  
What are the salient points of the policy framework to support cross -border e -commerce?  
Reply  
Since the launch of China's cross -border e -commerce pilot project in 2012, Chinese Customs have 
followed the rules of e -commerce, taken advantage of the traceability and detectability of 
e-commerce data, innovated ideas and methods, and reformed the regulatory model. Through 
optimizing supervision and service, China has made mean ingful attempts in the cross -border 
e-commerce retail import and export, actively explored regulatory measures for the development of 
cross-border e -commerce, and put forward with four new types of customs clearance supervision 
modes, i.e. General Exports,  Special Regions Exports, Direct Purchases and Online Purchases of 
Bonded Imports. The relevant administration measure is releasing the goods after checking the 
relevant documents and collecting all documents that have been approved periodically. Three new  
types of cross -border e -commerce supervision methods have been added; cross -border e -commerce 
enterprise filing management system has been established; and cross -border e -commerce statistics WT/TPR/M/3 75/Add.1  
 
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  related systems have been improved. Since May 2015, the Chinese customs have worked full -year 
(365 days) without holidays to deal with cross -border e -commerce matters and customs procedures 
have been completed within 24 hours after the goods arrive at the customs regulatory places. In 
addition, China has designed and d eveloped informational clearance management system for 
cross-border e -commerce retail import and export, and actively worked with local governments in 
building e -commerce service platform, which have promoted the development of cross -border 
e-commerce.  
3.2 Creating more attractive investment environment , paragraph  3.10 
Active utilization of foreign investment has always been an important part of China's fundamental 
national policy of opening up to the outside world. In 2017, the State Council released two C irculars 
in this respect, on measures to further open up to foreign investment and to promote foreign 
investment growth respectively, in a bid to perfect investment environment through enhancing 
facilitation, sharing international experiences and re -stress ing rule of law, promote domestic and 
foreign enterprises to compete on an equal footing, and improve both investment quality and 
quantity.  
Question 7  
As China endeavours to create ´more attractive ' foreign investment environment, how would that 
be distinguished from the existing strategy and approach? What are the newly targeted sectors that 
would be benefitted from such prospect of a better foreign investment regime?  
Reply  
The main features of the measures taken to create a more attractive foreign investment environment 
include: First, improving the fair competition mechanisms for domestic and foreign enterprises. It is 
clear that equal treatment shall be given to both domestic and foreign enterpris es in terms of, 
inter alia, qualification licen ces, government procurement, standards development, industrial 
policies, science and technology policies, enterprise listing, and registration. Second, further 
facilitating investment. The areas that are not i n the negative lists are administered in accordance 
with the principle of equal treatment for domestic and foreign enterprises. China has fully 
implemented the Single Window and Single Form for industrial and commercial registration and 
business filing of foreign -invested enterprises. We have acted according to international standards, 
and greatly reduced the time for starting a business, processing construction permits, and 
cross-border trade. On 28 June 2018, the National Development and Reform Commission  and the 
Ministry of Commerce jointly issued the Special Administrative Measures on Access of Foreign 
Investment (Negative List) (2018 Revision), introducing opening up measures in 22 areas, and 
reducing the number of restrictions to 48, a decrease of near ly 25%. Restrictions on foreign 
investment have been greatly lifted in areas of high concern to investors, such as automobiles, 
aircraft, shipbuilding as well as the financial sector.  
3.3.1 Advancing the reform of overseas investment administration system , page 8 8, 
paragraph 3.20 
In January 2018, MOFCOM together with other relevant government agencies issued the interim 
measures on regular reporting of outbound investment subject to administration of filing for record 
or administration of verification and approval. The interim measures, on top of the administration 
system featuring filing for record supplemented by verification and approval which was put in place 
in 2014, aimed to improve administration of outbound investment through identifying both a 
negative list and those that are encouraged.  
Paragraph 3.21  
In August 2017, NDRC, MOFCOM, PBOC and the Ministry of Foreign Affairs jointly issued guidelines 
on directions of overseas investment, signalling to the market the overseas investment activities 
that are encouraged, restricted or prohibited. In December 2017, NDRC revised and issued the 
measures on administration of overseas investment projects of enterprises requesting that sensitive 
overseas investment projects be verified and approved by NDRC, and t hat non - sensitive projects 
be subject to administration of filing for record. Projects of enterprises directly under the central WT/TPR/M/3 75/Add.1  
 
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  government, and those projects with Chinese investment of no less than US D 300 million are to be 
filed with the NDRC. Projects  with Chinese investment of less than US D 300 million are to be filed 
with the Development and Reform Commission of the provincial level government where the 
enterprise is registered. In February 2018, NDRC issued the catalogue of sensitive projects. In 
addition, NDRC and MOFCOM jointly issued in December 2017 the code of conduct for overseas 
investment and operation of private enterprises.  
Question 8  
Can China provide an update on its current policy regarding remittance of funds for projects 
participated b y Chinese investors overseas?  
Question 9  
Can China to provide the catalogue of sensitive projects issued by the NDRC in February 2018, and 
the code of conduct for overseas investment and operation of private enterprises jointly issued by 
NDRC and MOFCOM? Are these documents applicable to Chinese State -Owned Enterprises alike?  
Reply to 8 and 9  
The Catalogue of Overseas Investment Sensitive Industries (2018 Revision) and the Code of Conduct 
for Overseas Investment and Operation of Private Enterprises are ava ilable to the public. For details, 
please refer to the website of the National Development and Reform Commission. In terms of 
overseas investment management, the Chinese government has always insisted on equally treating 
all types of investment entities in cluding state -owned enterprises and private enterprises.  
3.3.2 Promoting the facilitation of overseas investment cooperation , page 8 , 
paragraph  3.22 
China believes that enterprises and individuals should go abroad to conduct investment cooperation, 
undertake engineering projects and provide labour services by demonstrating their own strengths 
and advantages and at their own risks. They can explore not only direct ways of green field 
investment and merger and acquisition but also innovative means incl uding securities and portfolio 
investment. Enterprises with sufficient capabilities are encouraged to conduct overseas cooperation 
in areas including infrastructure, energy and resources and etc. Agricultural cooperation can be 
promoted steadily. Technolog ies and technical standards should go abroad. Chinese investors and 
entities are also supported in their construction, management and upgrading of overseas economic 
and trade cooperation zones.  
Question 10  
Appreciate if China could clarify further on the l ast sentence "Chinese investors and entities are also 
supported in their construction, management and upgrading of overseas economic and trade 
cooperation zones. " Does the sentence reflect China worker to be hired in foreign countries in China 
based compan ies abroad?  
Reply  
As of the first half of 2018, Chinese enterprises have built 113 overseas economic and trade 
cooperation zones in 46 countries, with a total investment of 34.87 billion US dollars, 
4,422  enterprises in those zones, and 2.86 billion US dol lars in tax paid to the host country. They 
have brought 287,000 jobs to the local people. For a long time, the Chinese government has 
encouraged enterprises to uphold the principle of equality, mutual benefit, cooperation and win -win 
results and to conduct  outbound direct investment cooperation in accordance with business rules 
and international practices.  
Question 11  
How cooperation does benefit both countries if technology and experience are not shared with the 
locals?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Please refer to the reply to q uestion 10.  
3.5.1 Realizing the significant transformation of the FDI administration system , page 10 , 
paragraph 3.32  
The Shanghai Pilot FTZ began exploring the foreign investment administration model of 
pre- establishment national treatment plus negative list and issued the first negative list for foreign 
investment access in 2013 to replace the traditional model of case -by-case examination and 
approval. Since then, the negative list of the pilot FTZs has bee n revised and shortened three times. 
When the last 2017 revision of the negative list was issued in June 2017, the original 190 items had 
been reduced to 95 . 
Question 12  
Understand that China has issued the latest negative list of the pilot FTZs in 2018, c an China provide 
the latest negative list?  
Reply  
On 30 June 2018, the National Development and Reform Commission and the Ministry of Commerce 
issued the negative list of the pilot FTZs 2018 Revision. The number of entries was reduced from 95 
in the 2017 Revision to 45. For details, please refer to the Special Administrative Measures on Access 
of Foreign Investment to the Pilot Free Trade Zones (Negative List) (2018 Revision) on the official 
website of the State Council at:  
http://www.gov.cn/xinwen/2018 -06/30/5302507/files/63493c924b2042639893a9e484faa4bd.pdf.  
4.1.1 Proactively promoting international cooperation over the Belt and Road Initiative , 
page 12 , paragraph 4.2  
In the autumn of 2013, President Xi Jinping proposed in Kazakhstan and Indonesia respectively the 
building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, known as the Belt 
and Road Initiative. Later on, China issued  an action plan on the proposed Belt and Road Initiative 
namely the Vision and Proposed Actions Outlined on Jointly Building Silk Road Economic Belt and 
21st Century Maritime Silk Road, and held the first Belt and Road Forum for International Cooperation 
in Beijing in May 2017. Today, building the Belt and Road has had the strong support and active 
participation of more than 100 countries and international organizations around the world. The Belt 
and Road Initiative originates in China, but the opportunitie s and gains it brings belong to the world.  
Paragraph 4.3  
Under the Belt and Road Initiative, trade connectivity has been greatly increased. Total trade 
between China and other Belt and Road countries in 2014 -2017 has exceeded US D 4 trillion, and 
China's accumulative investment in these countries near US D 60 billion. Trade and investment 
facilitation has also been significantly enhanced. For example, for Kazakhstan and other Central 
Asian countries, Customs clearance time for agricultural produce exported to China has reduced 
by 90%.  
Paragraph 4.4  
China advocates the Silk Road spirit characterized by peace and cooperation, openness and 
inclusiveness, mutual learning and mutual benefit. President Xi Jinping pointed out that the Belt and 
Road should be built into a road for peace, a road of prosperity, a road of opening up, a road of 
innovation and a road connecting different civilizations. All parties should join hands to meet the 
challenges faced by the world economy, create new opportunities for development , seek new 
development momentum, expand new development space, achieve mutual complementarity and 
mutual benefit, and continuously move towards the direction of a community with a shared future 
for mankind.  WT/TPR/M/3 75/Add.1  
 
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  Question 13  
Can China provide more information regarding the progress of the Belt and Road Initiative proposed 
by President Xi Jinping in 2013? What are the achievements and challenges to date?  
Reply  
Firstly, promoting policy coordination to build growing international consensus on the Belt and Road. 
Over the past five years, China has carried out rewarding explorations with the Belt and Road 
countries regarding building consensus, establishing platform and improving mechanism. On 
14 May 2017, China successfully held the first Belt and Road Forum for International Cooperation, 
during which over 100 inter -governmental cooperation agreements were signed between China and 
about 100 countries and international organizations, and the Initiative on Promoting Unimpeded 
Trade Cooperation along the Belt and Roa d was released by China and 83 countries and international 
organizations.  
Secondly, enhancing infrastructure connectivity to build an inter -connectivity system of land, sea, 
air and network. The Mombasa -Nairobi railway has been built and put into operation , and the building 
of the China -Laos railway, the China -Thailand railway and the Hungary -Serbia railway has also been 
successively started. Progress has been made in the building of the Jakarta -Bandung high -speed 
railway and the implementation of port programme s. The China -Myanmar crude oil pipeline has been 
officially put into operation and the China -Russia second crude oil pipeline project has been 
completed. China has signed with 15 countries the memorandum of understanding on Online Silk 
Road cooperatio n, and launched together with these countries the Initiative of the Belt and Road 
Digital Economy International Cooperation. More than 9 ,000 China freight trains have been put into 
operation, reaching 42 cities in 14 European countries; since 2018, the Chi na-Europe freight train 
cooperation has been improved greatly with a substantially increasing number of trains have begun 
to operate back to China.  
Thirdly, facilitating unimpeded trade to enhance investment and cooperation in the field of trade and 
econom y. Over the past five years, China has been working with countries involved in the Belt and 
Road Initiative to improve and optimize trade and investment environment so as to release 
cooperation potential and promote better cooperation. Accumulative trade i n goods between China 
and the Belt and Road countries has exceeded US D 5 trillion and accumulative direct investment of 
China in the Belt and Road countries has surpassed US D 70 billion. China has established 75 overseas 
economic and trade cooperation zone s in the Belt and Road countries, making a total investment of 
over US D 27 billion, attracting nearly 3 ,500 enterprises to operate in the zones, and generating 
some US D 2.2 billion of tax revenue and over 200,000 jobs for these countries.  
Fourth, strengthe ning financial integration to set up a diversified system of investment and financing. 
Financial institutions in China have made great efforts in building a diversified investment and 
financing system. By far, the balance of loans provided by both the Chin a Development Bank and 
the Import & Export Bank of China to the Belt and Road programme s has exceeded US D 100 billion.  
Fifth, deepening people -to-people ties to enhance cultural exchanges and cooperation. China has 
signed cultural cooperation agreements wi th over 60 countries, and determined more than 
300 implementation plans for cultural exchanges. It has also signed a cooperation agreement for 
the educational development along the Belt and Road with over 60 countries.  
Question 14  
Can China provide detail ed information on the Belt and Road arrangements which China has 
concluded with other countries?  
Reply  
Up until 31 July 2018, China has signed 117 Belt and Road cooperation documents with 102 countries 
and organizations. Press coverage regarding the signing of the documents will be published on the 
website of the Chinese Ministry of Foreign Affairs, and the website of the Chinese government for 
future reference.  WT/TPR/M/3 75/Add.1  
 
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  Question 15  
Can China update on the internal processes to commence consultation with Mala ysia to implement 
the MoU on Belt and Road arrangement concluded in 2017?  
Reply  
During the Belt and Road Forum for International Cooperation in May 2017, the Chinese government 
signed with the Malaysian government a memorandum of understanding on Belt and Road 
cooperation. The signing of the memorandum is aimed to demonstrate the consensus reached 
between the two sides on advancing the Belt and Road cooperation. In the next stage, the two sides 
can conduct deeper consultations. The two countries can coopera te in a variety of fields, which will 
involve different authorities and project construction companies from the both sides. It is advisable 
that both China and Malaysia leave the responsibility of specific cooperation consultations to 
authorities and proje ct construction companies related to the cooperation. If the Malaysian side 
intends to discuss with China the next stage of the cooperation plan package, please approach the 
Department of Western Region Development of the National Development and Reform Co mmission 
in China.  
4.1.2 Preparing vigorously for the first China International Import Expo , paragraph 4.5  
In May 2017, President Xi Jinping announced at the first Belt and Road Forum for International 
Cooperation that China will host the China International Import Expo starting from 2018. Sponsored 
by China and participated by countries and regions all over the world, the China International Import 
Expo invites buyers both at home and abroad and serves as an open platform to buy from the world 
and sell to the world. The Expo will organize both country and enterprise exhibitions. More than 
120 countries, regions and international organizations are expected to participate, and over 
150,000  professional buyers will come for purchase. China will faci litate all countries and regions in 
their participation and offer more preferences to developing countries especially the Least Developed 
Countries (LDCs). At that same time, China will also host the first Hongqiao International Forum on 
Trade with the the me of "invigorating the new vitality of global trade and creating a new pattern of 
opening up and mutual benefit".  
Question 16  
Can China provide a comprehensive update on participation for the China International Import Expo 
scheduled in November 2018? Wh at is China's policies and the roadmap on trade and investment 
fairs/expos way forward in promoting imports?  
Reply  
The international trade fair held in 2018 invited international organizations such as the World Trade 
Organization, United Nations Conference  on Trade and Development, and the United Nations 
Industrial Development Organization as the cooperative unit. The International Trade Center, as a 
supporting unit, participated in the exhibition and the Hongqiao Economic and Trade Forum. 
International org anizations will focus on the three topics of the forum "trade and openness", "trade 
and innovation", "trade and investment", and discuss the topics about the liberalization and 
facilitation of trade and investment, the construction of an open world economy , the promotion of 
the growth of trade innovation and the sustainable development of trade and investment, and 
provide intelligence and technology support for the forum.  
In addition, the relevant international agencies also actively build up platforms for the participation 
of global SMEs in China's international import Expo. The international trade centr e will organize and 
support 100 SMEs from worldwide to participate in the exhibition, to help them access the overseas 
market and enhance their competitiven ess. 
The WTO, UNCTAD and UNIDO have confirmed their participation as cooperation agencies for the 
China International Import Expo (CIIE) and the Hongqiao International Economic and Trade Forum 
to be held in 2018. The International Trade Centre (ITC) will a lso play an important role as a 
supporting agency. All these international organizations will offer their expertise and technical 
supports for the Forum, whose topics will focus on trade and opening, trade and innovation and WT/TPR/M/3 75/Add.1  
 
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  trade and investment. They will  also be involved in the discussions on trade and investment 
liberalization and facilitation, building an open world economy, boosting trade innovation and growth 
and the acceleration of sustainable development of trade and investment.  
Besides, some inter national organizations will also serve as platforms to encourage world -wide SMEs 
to participate in the CIIE. For example, ITC will organize and support 100 SMEs globally to attend 
CIIE, to help them access overseas markets and enhance their competitiveness . 
According to the Preferential Measures for Participation in China International Import Expo, 
preferential measures for developing countries mainly include: 1) providing 256 square meters of 
free raw space for guest of honour and 136 square meters of free  raw space for other participating 
countries. 2) Offering a discount of 50% for booth design and construction; the sponsor will provide 
three  sets of standard construction schemes for the option of participating countries. After selection, 
the sponsor will  designate enterprise for booth construction. The upper limit of construction cost 
support is RMB 2,000/square meter. 3) Providing free international air tickets (economy class), and 
no more than eight-day and seven -night meal and accommodation in Shanghai for two booth 
personnel of the guest of honour; free international air tickets (economy class), and no more than 
eight-day and seven -night meal and accommodation in Shanghai for two booth personnel of other 
partici pating countries.  
Question 17  
Can China provide more information regarding the first Hongqiao International Forum on Trade with 
the theme of "invigorating the new vitality of global trade and creating a new pattern of opening up 
and mutual benefit"?  
Reply  
This forum, including an opening ceremony and three parallel forums, will focus on such topics as 
"trade and opening", "trade and innovation", and "trade and investment", and mainly discuss on, 
inter alia, the promotion of trade and investment liberalizati on and facilitation, the construction of 
an open world economy, the boosting of trade innovation growth and the acceleration of sustainable 
development of trade and investment. In addition, WTO, UNIDO and other related international 
organizations will be i nvited as co -operators to offer intellectual and technical support.  
The Chinese government sincerely welcomes political leaders and think tanks from industrial and 
academic circles as well as media professionals to the forum. We long for cooperation with a ll parties 
to build the forum into a platform for high -level dialogue where political leaders and professionals 
from industrial and academic circles can jointly discuss frontier issues of material science and 
international trade. This will contribute to th e development of global trade and economy.  
For more please refer to: https://www.ciie.org/zbh/en/ . 
4.2.1 Participating proactively in the multilateral trade negotiations and discussions and 
playing a constructive role , page 13 , paragraph 4.11  
China believes that the WTO should discuss new issues with development implications such as 
investment facilitation and E -commerce to respond to the expectations of the business community 
as well as to maintain it s relevance in global governance. The discussions should aim at multilateral 
results, adhere to the principles of openness, transparency and inclusiveness and mobilize all the 
membership to participate.  
Question 18  
What are the e -commerce priorities that C hina would like to advance at the WTO in particular, those 
that require multilateral cooperation/ harmonisation?  
Reply  
China attaches importance to and supports the discussion of e -commerce issues under the WTO 
framework, emphasizes respect for existing ma ndates, takes development as the core, fully WT/TPR/M/3 75/Add.1  
 
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  considers the actual conditions and concerns of different developing members, adheres to the 
principle of gradual and orderly progress, avoids setting over -ambitious goals and strives for 
maximum benefits for ea ch member. China suggests that the current discussion can focus on 
facilitating cross -border e -commerce goods trade and related logistics as well as payment services, 
and further discussions can be opened up on elements including, inter alia , electronic si gnatures and 
transparency.  
Paragraph 4.11  
China attaches great importance to and supports the work related to E -commerce within the WTO 
framework. China participated actively in the discussions, tabled important proposals, and joined 
the Friends of E-Commerce for Development (FED).  
Question 19  
China passed its cybersecurity law in 2017 to require network operators to store select data within 
China and to allow Chinese authorities to conduct inspection on a company's network operations. 
How does the regulation impact the e -commerce sphere and subsequently, the transition towards 
the digital economy?  
Reply  
Domestic data storage is a requirement for key information infrastructure operators. According to 
the Cyber Security Law, key information infrastruc ture operators shall receive security assessment 
when transferring important data collected and generated in China abroad. However, this is only 
limited to critical information infrastructure. Because the scope of critical information infrastructure 
is sma ll, and important data have a direct or indirect impact on national security, the outbound 
assessment of important data, therefore, does not restrict or affect the cross -border transmission of 
data. In order to implement the relevant provisions of the Cybe r Security Law, China is formulating 
the Measures for the Security Assessment of Outbound Personal Information and Important Data. 
The purpose is to safeguard the national network security and protect the interests of the people. It 
is not to prevent the c ross-border flow of data, nor to restrict international trade.  
5.1.1 Improving supply structure and further exploiting potential of domestic demand , 
page 17 , paragraph 5.2 
Since the last review, China has continued to promote the expansion and upgrading of  consumption, 
speed up the reform of the domestic distribution channels. A series of guidelines on expanding 
consumer demand in services of tourism, culture, health, information and etc. as well as on 
improving product quality have been issued. China has s triven to stimulate private investment, 
promote the Public -Private Partnership (PPP) model, so as to give play to the critical role of 
investment in optimizing the supply structure.  
Question 20  
Appreciate if China could briefly explain reasons of stopping  imports of recycle plastic waste from 
other country (including cleaned recycle plastic waste). Will this hamper Chinese recycling industry 
which converts the recycle material back into raw materials / feed stock (plastic pallets) for the 
growing plastic &  manufacturing industry?  
Reply  
Unlike ordinary raw materials, solid wastes are inherently polluting, and if improperly processed, will 
pollute air, water and soil and therefore impair ecological security and human health. Solid wastes 
constitute a common e nvironmental concern of the whole world. According to principles widely 
recognized by the international community, each country has the obligation to process and dispose 
its own solid wastes. As a developing country with the largest population in the world , China has a 
large stock, and newly generates a large amount of, solid wastes every year, thus facing an 
unprecedented difficulty in dealing with the pollution resulting therefrom. At the same time, China 
imports 45 million tonnes  or so of solid wastes ev ery year. The toxic, hazardous substances carried 
by these imported wastes, e.g. bacteria and viruses, may directly infect practitioners in the industry WT/TPR/M/3 75/Add.1  
 
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  concerned; the waste air or water generated in the process of disposing the imported wastes and 
the res idues of the wastes after processing or things mixed with them also are in need of disposal 
in the end, thus squeezing on the limited environmental capacity of China, significantly increasing 
the environmental burden of the country and severely harming the  health of Chinese people and the 
ecological and environmental security. In response, China decides to take a series of measures to 
strengthen the prevention and control of solid waste pollution. Restricting and prohibiting the import 
of solid wastes is on e of the important measures adopted by the Chinese government to implement 
its new development concept, strive to improve the ecological and environmental quality, and protect 
the national ecological security and public health.  
Question 21  
Does China's new policy on manufacturing do not include recycling industry?  
Reply  
Relevant policies will let the market play a decisive role in the allocation of resources and support 
the government in playing a better role. Specifically, they will strengthen the posit ion of enterprises 
as the main body of the market, stimulate enterprises spontaneous motivation generated by their 
need for survival and development, promote technological innovation, industrial breakthrough, 
platform construction and ecological constructi on, let the government play its role in, inter alia , 
enhancing planning and guidance, improving regulations and standards, protecting intellectual 
property rights, and maintaining market order, and create a sound development environment.  
5.3.4 Striving to create a market environment of fair competition for all types of market 
entities , page 20 , paragraph  5.17 
China has vigorously promoted the development of small and medium -sized enterprises (SMEs) and 
private businesses. On 1 January 2018, the revised Law on Promotion of Small and Medium -sized 
Enterprises took effect. It aims to safeguard the level playing field for SMEs in line with their 
development.  
Question 22  
What were the key revisions made to the Law on Promotion of Small and Medium -sized Enterprises 
in January 2018?  
Reply  
Key revisions have been made in terms of, inter alia, the development and promotion mechanism 
of SMEs, financing promotion, protection of rights and benefits, reduction of the burden on 
enterprises, special funds for SMEs  development, SMEs development funds, entrepreneurial 
innovation and market development, social services, supervision and inspection.  
6. THE WAY FORWARD  
Page 22 , paragraph 6.6  
Thirdly, China will continue to encourage normal technology exchanges and cooperation  between 
Chinese and foreign enterprises, and protect the lawful IPRs of foreign enterprises.  
Paragraph 6.10  
China is closely linked with other countries and shares weal and woe in development. China will 
remain committed to peaceful development  and will engage in global governance proactively, 
striving to build an open world economy. China will promote coordination and cooperation among 
countries, deepen the friendship and common development, and enhance further unity and 
cooperation with the de veloping world. China will continue to play its part as a responsible major 
developing country, and stands ready to work  WT/TPR/M/3 75/Add.1  
 
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  Question 23  
What does China mean by normal technology exchanges and cooperation  between Chinese and 
foreign enterprises?  
Reply  
It is ge nerally believed that normal technology exchanges and cooperation is reasonable and lawful.  
Question 24  
Does normal technology exchanges also include in the construction area of economy?  
Reply  
It is included.  
Question 25  
How does China continue to play its part as a responsible major developing country and stand ready 
to work with all other countries and regions especially ASEAN to build a community with shared 
future, technology and peace?  
Reply  
China will, together with the countries along the Belt and  Road including the ASEAN countries, uphold 
the principle of broad consultation, joint contribution and shared benefits, and further promote the 
Belt and Road international cooperation. It will build the Road into a road for peace, a road of 
prosperity, op ening up, and innovation, and a road connecting different civilizations, and it will 
continue its efforts in building a community of common destiny for mankind. China will build a new 
platform for international cooperation, ensure the successful opening of  the first China International 
Import Expo, and give full play to open platforms such as free trade pilot zones, various development 
zones and cooperation zones. With its focus on major investment cooperation projects, China will 
create a number of demonst ration projects which generate great comprehensive benefits, have 
enormous driving effects, and are welcomed in all aspects. In this way, China will create a great 
many Silk Road Pearls in the Belt and Road cooperation. China will also step up the building  of Silk 
Road E -commerce, encouraging enterprises to develop e -commerce along the Belt and Road, and 
provide services such as big data, cloud computing and artificial intelligence so as to help the Belt 
and Road countries develop digital economy and integr ate into economic globalization. China will 
continue to promote trade and investment liberalization and facilitation, and accelerate the 
implementation of trade facilitation agreements. It will cooperate with the Belt and Road countries 
to further simplify  customs clearance procedures, and sign free trade agreements with countries and 
regions out of their own will.  
ASEAN is the focus of the Belt and Road Initiative. ASEAN countries have been actively coordinating 
the Belt and Road Initiative and development  plans of their own, and thus become an important 
driving force for the Belt and Road initiative. China will continue to deepen economic and trade 
cooperation with the ASEAN under the framework of the Belt and Road, promote the early conclusion 
of the RCEP  negotiations, and strive for the full implementation of the China -ASEAN Free Trade Area 
Upgrade Protocol. China will take advantage of the China International Import Expo, the 
China -ASEAN Expo and other platforms to expand its imports from the ASEAN, stre ngthen bilateral 
cooperation on building inter -connectivity of production capacity and infrastructure, accelerate the 
construction of overseas economic and trade cooperation zones such as the Malaysia -China Kuantan 
Industrial Park, and tighten its interest  bonds with the ASEAN countries to achieve common 
development.  WT/TPR/M/3 75/Add.1  
 
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  Report by the Secretariat – WT/TPR/S/375  
SUMMARY  
Page 10 , paragraph 8  
China is an active Member of the WTO. It is an observer to the Committee on Government 
Procurement and is in the process of  negotiating its accession to the Plurilateral Agreement on 
Government Procurement (GPA). China is also an observer to the Plurilateral Agreement on Trade 
in Civil Aircraft, and, as a participant in the Information Technology Agreement (ITA), has agreed to  
its expansion. During the review period, China was involved in seven cases under the WTO dispute 
settlement system: in five cases as a respondent and in two as a complainant. It was also involved 
as a third party in ten cases brought to the Dispute Settle ment Body (DSB). During the review 
period, China submitted to the WTO a number of notifications; nonetheless, some notifications 
including those on state -trading enterprises, domestic support, and subsidies provided by the central 
government remain pending . 
Question 26  
When will China submit the pending notifications?  
Reply  
In July, China has notified the WTO of new state trading and subsidies. Please refer to the notification.  
Page 11 , paragraph 17  
Clearance times for exports were further reduced during the period under review, to a nationwide 
average of 1.1 hours in 2017. Export taxes apply mostly on metals and ores. As at October 2017, 
102 tariff lines (at the HS eight -digit level) were subject to statutory export duties, the same number 
as in 2015, whi le 179 tariff lines carried interim duties, down from 314 in 2015. The number of tariff 
lines subject to export licensing is 524. In 2017, global export quotas applied to 100 tariff lines. The 
authorities indicate that China did not maintain or introduce a ny export subsidies on agricultural 
products during the review period. Exporters are entitled to VAT rebates, which are usually lower 
than the VAT paid.  
Question 27  
Can China elaborate further why VAT rebates should not be considered as export subsidies?  
Reply  
China's export tax rebate system does not involve tax rebate subsidies. Our practice is also the 
international practice. It is based on the principle of rebating all that is necessary, that is, all the 
taxes paid out of producing goods and providing labour services in China will be refunded to 
exporters, so that export goods and labour services participate in international market competition 
fairly with tax -free price, which is in line with international practice.  
Page 13 , paragraph 28  
China's latest agricultural strategy is aimed at deepening the supply -side structural reform by 
improving structures, promoting "green" production, extending the sector's industrial and value 
chain, boosting innovation and consolidating rural development. China also plan s to deepen the 
reform on pricing mechanisms for major farm products to strengthen the role of market mechanisms 
and to reform, on a pilot basis, the land management system so as to loosen control on the land 
operating rights, while maintaining the princip le of collective ownership of land. The import and 
export regimes of agricultural products have remained stable during the review period. This is not 
the case of the direct support regime, which is undergoing a complex structural reform. China has 
not yet completed the regrouping of support programmes into mega programmes or the modification 
and decentralization of their disbursement procedures (so -called "large special programmes + task 
list management model"); numerous targeted programmes are being tested  in various regions on a WT/TPR/M/3 75/Add.1  
 
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  pilot basis. Price support mechanisms in China are also undergoing reform; some schemes have 
been suppressed or reduced in terms of geographical scope or in terms of support prices. Stockpiling 
has started regressing for some produ cts. China's overall level of support to agriculture continued 
to increase during the period under review.  
Question 28  
Can China elaborate on the reforms taken to reduce support for agriculture?  
Reply  
The Chinese government has always attached great impor tance to agriculture, rural areas and 
farmers. Our support for agriculture will not be weakened, but will be strengthened with the 
development of the national economy and the need to promote agriculture and rural development. 
Of course, increasing support for agriculture does not mean that China will increase the expenditure 
of subsidies in the Amber Boxes. China is adjusting and improving various subsidy policies including 
market price support, and the overall impact on the level of subsidies in the Amber Boxes remains 
to be seen.  
Page 14 , paragraph 34  
Regarding financial services, in June 2016 and June 2017, China issued two implementing 
regulations concerning the licencing of foreign bankcard  clearing institutions. In March 2017, China 
eased approval requ irements for foreign -owned banks to supply certain investment banking services 
in the country and to invest in domestic banking institutions. China also partially liberalized rating 
agencies services in July 2017 and announced in November 2017 that it would abolish restrictions 
limiting a single foreign investor's stake in a Chinese bank to 20% and capping total foreign 
ownership of any banking institution at 25%. During the review period, China opened the internet 
insurance market to both foreign and d omestic operators, and allowed foreign insurers to engage in 
reinsurance in the Shanghai Pilot Free Trade Zone. China has also opened further its interbank bond 
market.  
Question 29  
Can China update on the status of the abolition of restrictions on single foreign investors stake since 
its announcement?  
Reply  
In mid -April, during the Boao Forum for Asia, the Governor of the People 's Bank of China Yi Gang 
announced the specific measures and timetable for the opening up of the financial industry. The 
measures involved in cancelling the restrictions on the shareholding ratio of foreign investors include: 
1. Eliminating the restrictions on the foreign shareholding ratio of banks and financial asset 
management companies; allowing foreign banks to set up branches a nd sub -branches 
simultaneously in China; 2. The maximum shareholding ratio of foreign investment in securities 
companies, fund management companies, futures companies as well as life and health insurance 
companies is increased to 51%, and no restrictions a re imposed after three years; 3. It is no longer 
required that at least one domestic shareholder of an equity joint venture securities company shall 
be a securities company; 4. Allowing qualified foreign investors to operate insurance agency and 
insurance public valuation business in China, and expanding the business scope of foreign insurance 
brokerage companies so that it is the same as that of their Chinese counterparts; 5. Encourage 
foreign investment in the banking and finance sectors such as trust, fi nancial leasing, auto finance, 
currency brokerage, and consumer finance; 6. There is no restriction on the shareholding ratio of 
foreign investment in financial asset investment companies and wealth management companies 
newly established by commercial bank s; 7. The requirement that foreign insurance companies shall 
operate their Chinese offices for two years before their establishment in China was completely 
cancel led. WT/TPR/M/3 75/Add.1  
 
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  2.1 General Framework , page 31 , paragraph 2.2  
On 18 August 2017, China established an int ernet court (E -court) in Hangzhou. The court has 
jurisdiction over internet -related first instance civil and administrative cases that are within the 
jurisdiction of the grassroots people's courts within Hangzhou.5 According to the principle of "online 
trial of online cases", the court is to conduct prosecution, filing, testifying, court proceedings and 
referee processes via an online litigation platform so that parties may complete lawsuits without 
physically going to the court.  
Question 30  
Can China provide more information on the mechanism of internet court with regards to the number 
of cases tried since the establishment of the court?  
Reply  
Hangzhou Internet Court is a new exploration and attempt in the jurisdiction and trial mode to adapt 
to the ne w round of information technology revolution in the process of China's judicial system 
reform. The Hangzhou Internet Court was established under the framework of China's current court 
organization system. It is a grassroots people's court, established on t he basis of the Hangzhou 
Railway Transport Court. The staffing, appointment and dismissal of legal duties, the establishment 
of institutions, the guarantee of funds, the jurisdiction of cases, and the rules of trials of the 
Hangzhou Internet Court are all conducted in accordance with the relevant laws including the 
Constitution, the Court Organization Law, and the Litigation Law. Strictly following the legal 
provisions, China tried to innovate trial modes and the rules of litigation concerning online affair s. 
Since the establishment of the Hangzhou Internet Court on 18 August 2017, as of the end of June 
this year, a total of 10,271 internet -related cases have been accepted, and 8,522 cases have been 
concluded. The average trial time is 28 minutes, and the av erage trial period is 38 days, a decrease 
of three fifths and one half respectively comparing with the traditional trial mode. The rate of the 
first-instance judgment without further appeals is 99.06%.  
1.2 Recent Economic Developments , page 18 , paragraph 1.6 
Furthermore, future growth could also be boosted by the "Belt and Road" (or "One Belt and One 
Road") Initiative (Box 1), which aims to foster multinational cooperation in trade, investment and 
finance, bringing much needed infrastructure and connectivi ty to the region.  
Question 31  
Asian International Infrastructure Bank1 (AIIB) has recently partnered with Islamic Development 
Bank (IsDB) to support the project and initiative. Is there any specific percentage of total funding 
allocation (cost of project estimated to USD 1 trillion) in which Islamic financing instruments i.e . 
sukuk to be used for funding the projects?  
Reply  
No relevant statistics.  
Question 32  
The potential for the BRI to further spur trade and investments is enormous. However, this potential 
could only be realised if recipient countries are well -placed to ma ximise the benefits of these 
investments. Aside from financing, how do Chinese authorities plan to secure the success of BRI 
projects, from ensuring project feasibility to increasing transparency and safeguarding against 
fraudulent activities?   
                                                
1 The Chinese's government has put large sums of its fund in the  AIIB for mobilising fund and money to 
appropriate projects.   WT/TPR/M/3 75/Add.1  
 
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  Reply  
The BRI is an open and inclusive initiative which acts in accordance with the rule of the market, and 
specific projects are implemented through enterprises. It follows market rules and established 
international rules, and we welcome equal participation by ente rprises of all types. The Chinese 
government will focus on providing a fair and transparent business environment, favo urable 
investment policies and legal guarantee, support and guide more domestic and foreign enterprises 
to actively participate in the BRI , promote the smooth implementation of relevant projects, and 
enable more results of mutual beneficial and win -win cooperation to benefit the people of all 
countries at an earlier date.  
Most of the BRI projects are commercial projects and are the market be havio urs of enterprises. The 
way of operation and how to publish the initial information of the projects are determined by the 
project owners and do not depend on the Chinese government. However, the government will 
recommend enterprises to publish the ini tial information of the projects as much as possible, and 
timely announce the information on relevant projects to the society.  
1.2.4 Balance of payments , page 24 , paragraph 1.35  
China's current account surplus had been increasing since 2013; however, this trend was reversed 
in 2016, with the surplus declining to US D 202.2 billion (1.8% of GDP), mirroring a narrowing of the 
difference between gross national savings and gross investment. The decrease in current account 
surplus continued in 2017.  
Question 33  
Is there any concern on narrowing current account surplus and if so, what measures are being 
implemented to address these concerns?  
Reply  
Please refer to annual reports on http://www.pbc.gov.cn/english/130739/index.html . 
Page 27 , paragraph 1.42  
The QFII and the RQFII schemes were also further liberalized in February 2016 and August 2016, 
respectively.  
Question 35  
Are there plans to liberalise further regulation under QFII an d RQFII to promote investment into 
China?  
Reply  
Please refer to the Circular on Relevant Issues Concerning the Administration of Domestic Portfolio 
Investment by Renminbi Qualified Foreign Institutional Investors, People's Bank of China and the 
State Admin istration of Foreign Exchange (Yin Fa [2018] No. 157).  
Page 32 , paragraph 2.6  
Administrative decisions may be challenged within six months by those that deem their legitimate 
rights to have been damaged.8 Appeals can be made to a department at a higher level than the one 
that made the decision. There exist several independent administrative reconsideration 
commissions, on a pilot programme basis, in, for example, Beijing, Guangdong, Guizhou, Hainan, 
Heilon gjiang, Henan, Jiangsu, and Shandong; the authorities are not aware of the total number of 
provinces that have established administrative reconsideration committees. Complaints from 
foreign -invested enterprises (FIEs) are dealt with by the Complaint Coordi nation Office for 
Foreign -Invested Enterprises and the National Complaint Centre for Foreign -Invested  enterprises, 
both under MOFCOM. Between January 2016 and May 2017, seven complaints were filed by foreign 
investors.  WT/TPR/M/3 75/Add.1  
 
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  Question 36  
What are the actions tak en after complaints were received?  
Reply  
In September 2006, the Ministry of Commerce promulgated the Interim Measures for Complaints by 
Foreign -invested Enterprises, which stipulates, inter alia , the conditions, procedures and methods 
for receiving and handling complaints by foreign -invested enterprises. After receiving the complaint, 
the corresponding procedures will be implemented in accordance with the Measures, including, 
inter alia, reviewing the complaint materials to confirm whether it is within the scope of acceptance, 
registering accepted complaints, notifying the respondent, issuing an opinion letter, conducting 
administrative coordination with the relevant department, and handin g it over to the local complaints 
agency or to the relevant department.  
2.3.2 Regional trade agreements and unilateral measures , page 35 , paragraph 2.25  
According to the authorities, as the next step, China intends to construct a high -standard FTA 
network starting with neighbouring countries, extending to the countries participating in the Belt 
and Road Initiative and opening up to the whole world. China intends, together with free trade 
partners, to continue to reduce tariff and non -tariff barriers, to mut ually open up trade -in-goods and 
to strive for mutual benefits and win -win outcomes. Meanwhile, China intends to actively open up 
trade in services and areas of investment, promote facilitation and liberalization of trade in  services 
and investment, and cr eate better market access and investment protection conditions for  Chinese 
investors that "go global".  
Question 37  
On China's intention to construct a high -standard FTA network, in general, such initiative would bring 
countries closer to greater opportuni ties in terms of wider market access and more opened 
investment conditions. How would China go about in getting larger group of countries to be on board 
in such initiative taking into account the diverse scales of economy and development?  
Reply  
The multilateral trading system and regional trade arrangements are the two wheels driving 
economic globalization forward. While firmly defending the multilateral trading system as a main 
channel, China has actively promoted the establishment of free trade zon es. By May 2018, China 
had signed 16 free trade agreements (FTA) with 24 countries and regions. In 2017, trade between 
China and its FTA partners (excluding Hong Kong , China; Macao , China ; and Chinese Taipei ) 
accounted for 25.8 % of China's total foreign tr ade. In those free trade agreements, 90 % of imported 
products enjoy duty free treatment, and approximately 120 service sectors have been opened to 
foreign suppliers, compared to 100  service sectors in China's commitments to the WTO at the time 
when China j oined the organization. Committed to advancing economic globalization and 
safeguarding free trade, China is negotiating with relevant parties the Regional Comprehensive 
Economic Partnership for its early conclusion and implementation, and is accelerating t he building 
of Free Trade Area of Asia -Pacific and East Asia Economic Community. With all these efforts, China 
will build a high standard network of free trade areas open to the world.  
3.1.1 Customs procedures, valuation, and requirements , page 45 , paragra ph 3.1  
Customs procedures are regulated by several pieces of legislation (Table 3.1). In addition, the 
General Administration of Customs of the People's Republic of China (GACC) issues administrative 
customs announcements and decrees to introduce and enfor ce changes in customs procedures.  
Question 38  
The General Administration of Customs of the People's Republic of China (GACC) has issued a series 
of administrative customs announcements and decrees to introduce and enforce changes in customs 
procedures. What were the specific key reforms on custom procedures pertaining to e -commerce?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
Since the launch of China's cross -border e -commerce pilot project in 2012, the Chinese government 
and its relevant departments introduced a series of policies and measu res to encourage and regulate 
the healthy and orderly development of the cross -border e -commerce industry. Chinese Customs 
have followed the rules of e -commerce, taken advantage of the traceability and detectability of 
e-commerce data, innovated ideas and methods, and reformed the regulatory model. Through 
optimizing supervision and service, China has made meaningful attempts in the cross -border 
e-commerce retail import and export, actively explored regulatory measures for the development of 
cross-border e -commerce, and put forward with four new types of customs clearance supervision 
modes, i.e. General Exports, Special Regions Exports, Direct Purchases and Online Purchases of 
Bonded Imports. The relevant administration measure is releasing the goods after c hecking the 
relevant documents and collecting all documents that have been approved periodically. Three new 
types of cross -border e -commerce supervision methods have been added; cross -border e -commerce 
enterprise filing management system has been establish ed; and cross -border e -commerce statistics 
related systems have been improved. Since May 2015, the Chinese customs have worked full -year 
(365 days) without holidays to deal with cross -border e -commerce matters and customs procedures 
have been completed wit hin 24 hours after the goods arrive at the customs regulatory places. In 
addition, China has designed and developed informational clearance management system for 
cross-border e -commerce retail import and export, and actively worked with local governments i n 
building e -commerce service platform, which have promoted the development of cross -border 
e-commerce.  
3.1.5 Import prohibitions, restrictions, and licensing , page 52 , paragraph 3.33  
According to the Foreign Trade Law, China may maintain import prohibitions on grounds of national 
security; social interests; public morals; human, animal and plant health; environmental protection; 
balance -of-payments reasons; and commitments under international agreements. The Catalogue of 
Commodities Subject to Im port Prohibition issued by the MOFCOM lists all prohibited products.21 In 
2015, China's notification listed 365 products (HS 8 -digit level) including mainly machinery and 
transport equipment.22 In addition, prohibited items related to solid waste are liste d in the Catalogue 
of Prohibited Imports for Solid Waste. On 9 January 2017, the Ministry of  Environmental Protection 
made an Announcement on Adjusting the Catalogue of Wastes Subject to Import Administration 
(Announcement [2017] No. 3), which moved seven solid wastes from the Catalogue of Solid Wastes 
Used as Raw Materials and Subject to Import Restriction to the Catalogue of Solid Wastes Subject 
to Import . 
Question 39  
What is the procedure implemented by the China Government for importation or exportatio n of 
human remains, human tissues, microorganisms and pathogenic substances?  
Reply  
The Chinese Customs implement health and quarantine supervision on microorganisms, human 
tissues, blood and its products as well as biological products. Such substances and products shall 
receive health and quarantine examination and approval before their importation and exportation. 
Batch inspections will be carried out when importing and exporting, and sampling inspection is 
required where necessary. Entry risk assessment a nd follow -up supervision are required for high -
risk special items entering China.  
The Chinese Customs shall carry out health and quarantine inspections on the bodies and skeletons 
for funeral purposes, and forbid the entry and exit of the bodies and skelet ons for non -funeral 
purposes (human tissues for scientific purposes are regarded as special goods).  
Question 40  
If there is such procedure, what is the Regulation or Act that regulate the procedure? We seek your 
cooperation to share with us the Regulation  or Act that is related to the implementation of 
importation or exportation of human remains, human tissues, microorganisms and pathogenic 
substances.  WT/TPR/M/3 75/Add.1  
 
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  Reply  
The Law on Frontier Health and Quarantine and its implementing rules, the Regulation on the 
Prevent ion and Treatment of HIV/AIDS, the Administrative Regulations for Entry -Exit Health 
Quarantine on Special Goods (GACC Decree No. 240), the Regulation on the Bio -safety Management 
of Pathogenic Microbe Labs (State Council of the People's Republic of China D ecree No. 424), the 
Interim Measures for the Administration of Human Genetic Resources (Guo Ban Fa [1998] No. 36), 
and the Measures for the Sanitation and Quarantine of Entry/Exit Corpses and Skeletons.  
Question 41  
We would like to check the status of Zika  virus Fumigation requirements for shipments going into 
China. In relation to the requirements, we seek updated information about the country that will be 
implicated to the requirements.  
Reply  
When Zika broke out, China issued an announcement after the exp ert's assessment, requesting Zika 
virus fumigation for shipments going into China from the infected area. The validity period of the 
announcement is generally three  months. After the validity period, Zika virus fumigation is not 
required for shipments goin g into China. As of 27 July 2018, all the announcements have passed the 
validity period, and Zika virus fumigation requirements were not imposed on any countries 
shipments going into China.  
3.2.2 Taxes, charges and levies, page 61  
3.3.3 Sanitary and phytosanitary requirements , page 76 , paragraph 3.138  
Four institutions are in charge of the SPS system in China: the  National Health and Family Planning 
Commission, the China Food and Drug Administration (CFDA), the Ministry of Agriculture (MOA), 
and AQSIQ. The respective responsibilities have remained largely unchanged during the period under 
review; except for some internal organizational changes in the China Food and Drug Administration 
(CFDA) in July 2016.  
Question 44  
In considering the merging of  AQSIQ into GACC, can China elaborate on:  
• the Structure of AQSIQ and related agencies such as CNCA and CFDA  
• the agencies or department responsible for food safety generally in China and specifically 
for the following:   
a. Import and export control of food;  
b. Food import and export certification;  
c. Food standard; and  
d. Inspection of foreign food establishments  
Reply  
China is restructuring its institutions and the function of some restructured departments has not 
been confirmed. Please pay attention to the online pol icy information on the official website of the 
relevant departments.  
3.3.7.2.1 Patents , page 98 , paragraph 3.228  
Parallel imports of patented goods are allowed, in accordance with Article 69 of the Patent Law.  WT/TPR/M/3 75/Add.1  
 
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  Question 45  
What is the mechanism of parallel import in China?  
Reply  
After the patentee or the unit or individual licensed by the patentee have sold its patented product 
outside China or those obtained directly according to the patented method, the importation of the 
product into China does n ot constitute an infringement of the patent right.  
3.3.7.4.3 Undisclosed information and trade secrets , page 105 , paragraph 3.257  
The Regulations for the Implementation of the Law on Drug Control, last amended in February 2016, 
protects test data and other  data that are self -obtained, undisclosed, and submitted by 
manufacturers or sellers to obtain approval to manufacture or sell a drug that contains new chemical 
entities. Such undisclosed test data and other data may not be used for improper commercial 
purposes. The protection term for the manufacturer or seller is six years from the approval to 
manufacture or sell the drug. During this period, the authorities are mandated to deny approval to 
other applications using the same data. A similar protection term  is granted for undisclosed data on 
agro-chemicals under the Regulations on Administration of Agricultural Chemicals, which was last 
amended in March 2017.  
Question 46  
With regards to test data protection, is such protection also extended to biological products ? 
Reply  
Activities where patent right holders or units and individuals permitted by them sell the patented 
products outside China, or where they import the patented products to China after directly obtaining 
products according to the patented metho d do not constitute an infringement of the patent right.  
Question 47  
Is test data protection granted for a second/additional indication of products which have 
previously been given such protection? If so, what are the terms of protection?  
Reply  
According to the provision of the Anti -Unfair Competition Law, Trade secrets refers to any technology 
information or business operation information which is unknown to the public, can bring about 
economic benefits to the obligee, has practical utility and about whic h the obligee has adopted 
secret -keeping measures. Secondary/additional indications that are important parts of products 
which have previously been given test data protection will be protected by the trade secrets clause 
of the Anti -Unfair Competition Law.  
Question 48  
For a combination product , is test data protection granted to the new chemical entity only or to 
the whole product?  
Reply  
The object and scope subject to Drug test data protection do not require drugs component only, a 
certain period of data protection will be provided to drugs in accordance with relevant regulations.  WT/TPR/M/3 75/Add.1  
 
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  4.3.2.4 Iron steel, pages 145-148 
Question 49  
Malaysia complements China on its efforts to cut steel over -capacity and structural reform of the 
steel industry which has helped to stabilise the steel industry situation in ASEAN and worldwide. 
Chinese subsidies providing tax rebate on certain iron and steel products has caused influx and 
injury to ASEAN market. The trade measures taken by the US and China will also have potential 
impact of export shifting to other countries including ASEAN. What are the measures taken by China 
to prevent circumvention on the export rebate and the duty structure to ensure a fair and competitive 
market for all players?  
Reply  
China's export tax rebate  system does not involve tax rebate subsidies. Our practice is also the 
international practice. It is based on the principle of rebating all that is necessary, that is, all the 
taxes paid out of producing goods and providing labour services in China will b e refunded to 
exporters, so that export goods and labour services participate in international market competition 
fairly with tax -free price, which is in line with international practice.  
4.4.2.1 Market overview , page 154  
The main economic characteristics of China's financial services sector are described in Box 4.2.  
Question 50  
Can China clarify if Islamic finance is a new growth area within China's financial services sector?  
4.4.2.2 Regulatory developments for banking services , page 156 , paragraphs 4.147 -4.148  
On 8 June 2016, the Administrative Measures for bankcard  Clearing Institutions became effective . 
They stipulate that, in principle, an overseas institution that only provides bankcard  clearing services 
in foreign currencies for cross -border transact ions is not obligated to establish a bankcard  clearing 
institution within the territory of China  … However, the administrative measures also stipulate that 
if the overseas institution exerts significant impact on the sound operation of the domestic bankcar d 
clearing system or public payment confidence, it shall establish a legal entity within China.   
Question 51  
Is it a requirement for the processing, clearing and settlement of domestic payment card 
transactions2 to be performed by entities within the territory of China?  
Reply  
When a domestically issued bankcard is used in China, the processing, clearing and settlement of 
its transactions must be completed by entities within the territory of China. According to th e Decision 
of the State Council on Implementing Administration of the Access of Bankcard Clearing Institutions 
(Guo Fa [2015] No. 22, hereinafter referred to as the "Decision"), the bankcard clearing institution 
shall handle its business with domestic card  issuers or acquirers through domestic bankcard clearing 
business infrastructure, and complete the settlement of funds within the territory of China. According 
to Article 5 of the Measures for the Administration of Bankcard Clearing Institutions (People's Bank 
of China, China Banking Regulatory Commission [2016] No. 2, hereinafter referred to as the 
Measures), in order to protect financial information security, when a domestically issued bankcard 
is used in China, the relevant processing of its transactions  shall be completed by bankcard clearing 
business infrastructure within the territory of China. Article 6 stipulates that the transaction 
settlement of the bankcard of the bankcard clearing institution and the domestic internet -accessing 
issuer or acquirer  shall be completed through domestic banks in RMB, except for bankcard clearing 
services providing foreign currencies for cross -border transactions.  
                                                
2 Payment card transactions in China made using locally issued credit card and debit card/ bankcard . WT/TPR/M/3 75/Add.1  
 
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  Question 52  
What has been the impact to the domestic payment market, and the economy as a whole, following 
the implementation of the regulation? (e.g. cost efficiency, proliferation of payment card usage, less 
dependency on foreign bankcard  clearing institutions, etc .) 
Reply  
The implementation of the Measures for the Administration of Bankcard Clearing Institutions helps 
promote the diversification of the main body of bankcard clearing market, foster a market 
environment for fair competition in the bankcard industry, improve the level of bankcard clearing 
services in China, and build a good industrial ec osystem. It is conducive to promoting the sustained, 
stable and healthy development of the industry as a whole and the participants, accelerating the 
reform, opening up, and innovation of China's payment service market, and giving full play to the 
positive  role of bankcards in boosting citizens consumption and promoting economic growth.  
4.4.2.3 Regulatory developments for insurance services , page 158 , paragraph 4.162  
On 22 July 2015, the CIRC released the "Interim Measures for Regulating the Internet Insurance 
Business", which took effect on 1 October 2015. The measures allow both domestic and foreign 
insurance companies to engage in Internet insurance business.  
Question 53  
What have been the changes in the market following the implementation of the re gulation on internet 
insurance business? (e.g. increase in foreign insurance providers, more competitive products on 
offer, increase insurance take -up in China / non -urban municipalities, etc)  
Reply  
The Interim Measures for Regulating the Internet Insurance Business and other regulatory systems 
clearly lay down requirements on business entities, operation conditions, business areas, information 
disclosure, supervision and management of China's Internet insurance business, and set the 
standard for In ternet insurance business practices, which has promoted the healthy development of 
Internet insurance and effectively protected the rights and interests of the Internet insured.  
4.4.2.7 Regulatory developments concerning e -payments , page 160 , paragraph 4.1 71 
… followed by the "Administrative Measures for the Online Payment Services of Non -banking 
Payment Institutions" (Announcement No. 4/43 of the PBOC, issued on 28 December 2015). These 
measures set rules on: the management of customers, activities and ris ks; the protection of 
customers' rights; the supervision of non -banking payment institutions engaged in online payment 
services; and the legal liabilities of these institutions.  
Question 54  
With reference to PBOC's "Administrative Measures for the Online Payment Services of Non -banking 
Payment Institutions" and other related guidelines on QR code payments3, what is the broader 
outcome that China seeks to achieve especially with regards to the non -banking payment institutions 
that have significant presence in China (e.g. interoperability, risk management, consumer 
protection, etc)?  
Reply  
The People's Bank of China adheres to the principle of balancing innovation and risk prevention, and 
pays close attention to the development of payment business. First, the People's Bank of China 
encourages the main participants of payment market to apply payment products and innovate 
business, fully considers and satisfies the payment needs of different groups, continues to promote 
the construction of non -cash payment systems, provides multi -level and diversified payment service 
                                                
  3 Guideline on QR Payment Business Operation 2017 No. 296. 2017.  WT/TPR/M/3 75/Add.1  
 
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  options for social producti on and life and continuously improves the level of payment services. 
Second, in order to guide and regulate the healthy and sustainable development of the payment 
industry, the People's Bank of China has studied and formulated corresponding business 
specif ications for online payment and bar -code payment, and put forward requirements on, inter alia, 
business qualifications, technical specifications, merchants qualification examination and approval, 
risk transaction monitoring, strengthened business risk mana gement, and effectively protected the 
property safety and legitimate rights and interests of consumers.  
Question 55  
What is the impact to China's domestic payment market following a series of guidelines on 
non-banking payment institutions (e.g. cost effic iency, growth in usage of mobile payment by non -
bank, innovation, etc) ?  
Reply  
From 2013 to 2017, the payment business of payment institutions increased from 37.134 billion 
transactions and 17.57 trillion yuan to 319.314 billion transactions and 169.44 tri llion yuan, with a 
compound annual growth rate of 71% and 75% respectively. At the same time, the People's Bank 
of China encourages the innovative development of payment market, and guides all parties in the 
industry to continuously improve the standard fo r payment technology. In the field of payment 
products, payment institutions constantly introduce new forms of payment front -end applications 
and convenient payment products such as bar -code payment and NFC application payment. In the 
field of payment proc essing, payment institutions are guided to process their payment business 
through legal and qualified clearing institutions, and the information and funds processing procedure 
is continuously optimized.  
  WT/TPR/M/3 75/Add.1  
 
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  PHILIPPINES  
Report by China – WT/TPR/G/375  
3.1 Setting new mechanisms for sustainable trade development, page 4, paragraph 3.2  
In recent years, the underlying impact of the international financial crisis persists, and the 
international environment and domestic circumstances have undergone complicated a nd profound 
changes. Against this background, development of China's trade is facing tremendous difficulties 
and challenges. China has been actively promoting the optimization of the international market 
layout and domestic regional distribution, as well a s that of commodity structure, business entities 
and modes of trade. New forms of business and trade models are explored. Innovative developments 
of processing trade are transferred among regions in gradient. Proactive and effective import 
policies are imp lemented.  These efforts have resulted in remarkable outcomes in the 
development of China's trade, with the structure further improved, and the shift of driving forces 
accelerated. It is now brought back to stability and turns for better, which not only pro vides countries 
and regions around the world with broader markets and more opportunities for cooperation, but also 
makes contributions to global trade growth and economic recovery.  
Question 1  
Explain in detail the "proactive and effective import policies " that have been/are being implemented.  
Reply  
In July 2018, the General Office of the State Council forwarded the Opinions on Expanding Imports 
and Promoting Balanced Development of Foreign Trade  by the Ministry of Commerce and other 
departments. The Opinion s proposed 15 specific policies from four aspects, including:  
1. Optimizing import structure to promote the upgrading of production and consumption. This 
involves four policies including supporting the import of products related to people's livelihood, the  
development of service trade, increasing the import of technical equipment that is conducive to 
transformation, and increasing the import of agricultural products and resource -based products. 
Since 2015, in order to meet the demands of household consumpti on upgrades, China has approved 
the import of European consumer goods for four times in accordance with the approval of the State 
Council; in 2018, it has reduced import tariffs on automobiles, drugs and some consumer goods. We 
will continue to take measur es to reduce the import tax rate of some commodities, reduce 
intermediate circulation links, and clean up unreasonable price increases for the purpose of 
improving people's living standards.  
2. Optimizing the international market layout. This involves three policies, including strengthening 
the "Belt and Road" international cooperation, accelerating the implementation of the free trade 
zone strategy, and implementing preferential arrangements for  import goods and services from the 
least developed countries. We will continue to be committed to granting zero -tariff treatment to the 
least-developed countries with the 97% tax items exported to China. At present, China has signed 
16 free trade agreemen ts with 24 countries and regions. During 2015 -2017, the favoured value of 
China's imports from the least developed countries amounted to about USD 4 billion.  
3. Playing an active role in promoting multiple channels. This involves four policies including holding 
China -International Import Expo, continually promoting foreign capital's role in promoting imports, 
promoting the effective interactions of foreign trade and foreign investment, and innovating import 
trade methods.  
4. Improving the conditions for trade liberalization and facilitation. This involves four policies 
including endeavouring to provide import -promoting platforms, optimizing import customs clearance 
procedures, reducing institutional costs of import links, and accelerating improvement of d omestic 
business environment.  WT/TPR/M/3 75/Add.1  
 
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  3.1.2 Continuously enhancing trade facilitation, page 5, paragraph 3.7  
In addition, China has also taken a series of substantial measures in foreign exchange administration 
to facilitate trade and investment. Pilot programme s were carried out to facilitate foreign exchange 
payments concerning cross -border E -commerce or via third -party payment agencies. Supporting 
policies and measures were developed for the Bond Connect, i.e. cross -border bonds transactions 
and settlement. Prud ent macro administration policies for cross -border financing were further 
improved. Reform of external debts administration through filing for record was pushed forward 
steadily to meet corporate financing needs. Foreign exchange market was also further op ened 
to allow foreign investors in the interbank bond market to participate in foreign exchange 
derivatives transactions in China.  
Question  2 
Please describe in detail the efforts to further open the foreign exchange market  
Reply  
In order to expand the opening of the inter -bank bond market and facilitate foreign investors 
management of exchange rate risks, in February 2017, the State Administration of Foreign Exchange 
issued the Notice of Issues Concerning Foreign Exchange Risk Man agement of Foreign Institutional 
Investors in Inter -bank Bond Market by SAFE  HF [2017] No. 5), the main contents include: Firstly, 
inter-bank bond market Institutional investors can make RMB -to-foreign exchange derivatives 
transactions in qualified domesti c financial institutions so as to expand the opening of foreign 
exchange market. Secondly, overseas institutional investors shall adhere to the need -oriented 
principle when making foreign exchange derivatives transactions, which is limited to hedging the 
foreign exchange risk generated by the foreign exchange capital investment in the inter -bank bond 
market so as to ensure the order of the foreign exchange market. Thirdly, diversified trading tools 
and trading mechanism options are provided for foreign inst itutional investors when making foreign 
exchange derivatives transitions so as to facilitate the management of foreign exchange risk.  
3.2 Creating more attractive investment environment, page  5-6, paragraph 3.10  
Active utilization of foreign investment has  always been an important part of China's fundamental 
national policy of opening up to the outside world. In 2017, the State Council released two Circulars 
in this respect, on measures to further open up to foreign investment and to promote foreign 
investm ent growth respectively, in a bid to perfect investment environment through enhancing 
facilitation, sharing international experiences and re -stressing rule of law, promote domestic and 
foreign enterprises to compete on an equal footing, and improve both in vestment quality and 
quantity.  
Question  3 
Describe in detail the efforts to enhance investment facilitation and 'to promote domestic and foreign 
enterprises to compete on an equal footing '. 
Reply  
With regard to enhancement of investment facilitation, in recent years, China has reformed its 
foreign investment administration system from a comprehensive examination and approval system 
to an administration method in combination with universal filing and limited approval. At present, 
more than 96% of foreign i nvestment is carried out with localized filing management. At the same 
time, the implementation of the single window, single form" for filing and business registration by 
the domestic -funded enterprise simplifies the procedures for the establishment of dom estic-funded 
enterprise.  
In regard to promotion of fair competition of foreign and domestic -funded enterprises, in 2017, 
China issued the Notice of the State Council on Several Measures for Expanding the Opening Up to 
the World and Vigorously Utilizing For eign Investment (GF [2017] No. 5), in which definite 
requirements are pointed out on giving equivalent treatment to foreign and domestic -funded 
enterprises in the aspects of Made in China 2025 policy, government procurement, standard setting, WT/TPR/M/3 75/Add.1  
 
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  science and t echnology project and qualification licensing, etc. Each region and department actively 
implement these requirements. For example, the Standardization Administration of China (SAC), the 
National Development and Reform Commission (NDRC), and the Ministry of  Commerce of the 
People 's Republic of China issued the Guiding Opinions on Foreign -Funded Enterprises Participating 
in the Standardization Work of China , giving equivalent treatment to foreign -owned enterprises in 
the aspects of national standard developme nt, composition of the technical committee, and 
standardized service, etc. In addition, the MOST and the Ministry of Finance issued the Interim 
Measures for National Key R&D Program of China , which specifies that independent legal entities 
registered in Ch ina, such as overseas research institutions, universities and enterprises, can declare.  
Report by the Secretariat – WT/TPR/S/375  
1.3. Developments in Trade and Investment, 1.3.1 Trends and patterns in merchandise 
and services trade, page 27, paragraph 1.43  
Merchandise exports declined from US D 2,273.5 billion in 2015 to US D 2,097.6 billion in 2016. Over 
the same period, merchandise imports also declined from US D 1,679.6 billion to US D 1,587.9 billion. 
Based on the balance of payments data, merchandise trade  (the sum of imports and exports) 
declined from the equivalent of 33.5% of GDP in 2015 to 31.2% in 2016.  
Question  4 
Explain the possible reasons for the decline in merchandise exports and imports.  
Reply  
In 2016, the global economy is still in a period of deep adjustment after the international financial 
crisis, so the economic recovery proves fragile, and the international market demand is weak. 
According to the data calculation of the WTO website, the amount of exports and imports for 
70 major economic en tities in 2016 was about 2.5% reduced from 2015 (2.50% and 2.46%). In 
2016, the amount of exports of goods was mainly caused by the fragile international market 
demand; while the amount of imports of goods was affected by dramatic drop of the international  
market price of bulk commodities such as iron sand and crude oil.  
Page 27, paragraph 1.44  
Services exports declined from US D 217.4 billion in 2015 to US D 206.5 billion in 2017, while services 
imports increased from US D 435.7 billion to US D 471.9 billion o ver the same period. Trade in 
services (the sum of imports and exports) as compared with GDP declined to 5.5% in 2017.  
Question  5 
What are the sectors that have been involved in the decline in services exports?  
Reply  
In 2017, China's services exports w ere USD 228.1billion, while that of the imports was 
USD 467.6  billion, both were higher than those in 2015. Therefore, it is not the case of declining as 
was described in the question.  
Page 27 -28, paragraph 1.46  
Manufactures remain the largest import category,  accounting for nearly 65% of merchandise imports 
in 2016, a slight increase from 64.2% in 2015 (Chart 1.1 and Table A1.2). Within manufactures, the 
shares of electronic integrated circuits and micro assemblies, and automotive products rose. The 
share of i mports under processing trade declined as did that of primary products. Within primary 
products, the share of agricultural imports rose while that of fuels fell. The authorities state that the 
development, transformation and upgrading of the domestic manuf acturing industry resulted in 
increased demand for imports of integrated circuits, micromodules and other products in 2016. 
Increased consumption in China resulted in increased automobiles imports.  WT/TPR/M/3 75/Add.1  
 
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  Question  6 
Which categories have been mainly covered by th e manufactured goods and primary products in the 
largest scale imported by the China in recent years and which industries have been involved?  
Reply  
According to the relevant charts reported by the Secretariat (Fig. 1.1 and Table A1.2), in the 
classificatio n of manufactured imported products from China for 2013 -2016, the proportion range of 
office machinery and communication equipment to China's total imports in the same period (the 
same below) was 19.3% -23.3%, mainly involving the electronic integrated circ uits and 
micro -assembly industry; the proportion range of chemical imports was 9.7% -10.3%; and the 
proportion range of consumer goods imports was 8% -9%. 
In the classification of primary imported products in China, the proportion range of fuels to China's 
total imports in the same period (the same below) was 11.1% -16.2%; the proportion range of 
agricultural product imports was 8.5% -9.8%; the proportion range of ores and other minerals 
imports was 6.9% -9.1%.  
Question   
Which types of manufactured goods and co nsumer products are expected to increase as demanded 
by China in 2018?  
Reply  
It is not yet possible to accurately predict the import growth of specific types of manufactured goods 
and consumer goods. For details, please refer to the import and export data at the end of 2018.  
2.1 General Framework, page 32, paragraph 2.10  
As stated in the 13th Five-Year Plan for Economic and Social Development, China's main trade and 
investment objectives are: (1) accelerating the optimization and upgrading of trade; (2) imp roving 
the utilization of foreign capital; and (3) promoting the steady and healthy development of outward 
investment.  
Question  7 
What are the measures being undertaken to achieve the three objectives?  
Reply  
China is actively creating a relaxed and orderly  investment environment, broadening access to 
foreign investment, further simplifying the procedures for managing access to foreign investment, 
building a high standard pilot free trade zone, and strengthening investment promotion and 
investment protection  so as to further promote the legalization, internationalization and facilitation 
of the foreign investment environment, make the Chinese market more transparent and 
standardized and promote the growth of foreign investment and improve the quality of forei gn capital 
utilization.  
In the first half of 2018, China issued the Notice of the State Council on Measures for Using Foreign 
Investment Actively and Effectively to Promote High -Quality Economic Development , with a view to 
creating a more equitable, transparent and attractive investment environment, measures in 
six aspects are put forward therein, including liberalization of investment, investment facilitation, 
investment promotion, investment protection, optimization of regional opening layout and pr omotion 
of national development zones innovation and upgrading by drawing on the internationally accepted 
policy framework for attracting foreign investment. On 28 June 2018, the National Development and 
Reform Commission and the Ministry of Commerce joint ly issued the Special Management Measures 
for the Market Entry of Foreign Investment  (Negative List) (2018), introducing opening up measures 
in 22 fields, and reducing restrictive measures to 48 items, with nearly 25% reduced. Especially, in WT/TPR/M/3 75/Add.1  
 
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  some fields th at investors are highly concerned with, foreign investment restrictions are reduced 
remarkably combining with China's industrial development level.  
Page 33, paragraph 2.12  
In order to further liberalize the domestic market, China intends to focus on: the m odernization of 
existing industries; the development of clean and knowledge -based industries; and the services 
sector.  
Question  8 
Provide details on the measures being undertaken to achieve /operationalize the said initiatives.  
Reply  
The Chinese government  has listed industries regarding advanced manufacturing, high -tech, energy 
conservation and environmental protection and modern services into the encouraged foreign 
investment items. The foreign -invested enterprises engaging in the encouraged items are exe mpt 
from tariff when importing self -use devices within the aggregate investment.  
Page 33, paragraph 2.15  
China continues to promote its "Going Abroad Policy", as outward direct investment is considered a 
way to promote trade, as well as to integrate into g lobal production, value, and logistics chains. The 
Belt and Road Initiative, announced in 2014, aims at, inter alia , promoting connectivity and 
cooperation through the development of infrastructure among countries on the original Silk Road 
through Central Asia, West Asia, the Middle East and Europe.  
Question  9 
Please provide information on the projects being undertaken under the BRI and describe the 
participation of relevant partner countries/institutions in the funding and implementation of these 
projects  
Reply  
Most of the Belt and Road projects are commercial projects, so the government only performs its 
filing duties according to the rules and there is no need to grasp the details.  
2.4 Investment Regime, 2.4.1 Regulatory framework and market access, page 36-37, 
paragraph  2.30 
The main legislation regulating foreign direct investment in China includes: the Law on Sino Foreign 
Equity Joint Ventures, the Law on Sino -Foreign Contractual Joint Ventures, and the Law on Foreign -
Invested Enterprises, as well as th eir related administrative regulations and rules. Foreign invested 
enterprises in China are regulated by these laws, regulations and rules as well as the Company Law. 
According to the authorities, MOFCOM and related departments are in the process of drafti ng a new 
law on foreign investment.  
Question  10 
What will be the coverage of the new law on foreign investment and how is it going to be different 
from the previous laws?  
Reply  
The foreign investment law is the project of 2018  Legislative Work Plan of the NPC Standing 
Committee and 2018 Legislative Work Plan of the State Council. In December 2015, the Ministry of 
Commerce of the People 's Republic of China reported the Foreign Investment Law of the People's WT/TPR/M/3 75/Add.1  
 
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  Republic of China  (Draft Submitted for Approval)  to the State Council. At present, the Ministry of 
Justice is advancing the review and revision work in accordance with the legislative procedures.  
Page 39, paragraph 2.35  
The authorities indicate that the Government has never made, through existing Chinese l aws, 
regulations and policies, technology transfer a precondition for inward FDI, or issued any laws, 
regulations, or policies obligating investors to transfer their technologies . 
Question  11 
What are the measures undertaken by the Chinese government to address the concerns of some 
WTO members over China's technology licensing requirements?  
Reply  
In recent years, China has continuously improved its intellectual property policy and legal system 
and adhered to the principle of treating domestic and foreign entities equally, achieving positive 
outcomes.  
3.1.3 Tariffs, 3.1.3.5 Tariff exemptions and concessions, page 50, paragraph 3.23  
In addition, duty exemptions and reductions may apply in accordance with the relevant regulations 
by the State Council and on g oods imported into designated areas, for specific enterprises or for a 
specific use. For instance, imported commodities are exempt from import duties and other taxes 
when entering special customs supervision areas.  
Question  12 
Please provide a list on the goods imported and its designated areas that may benefit in the duty 
exemptions and reductions.  
Reply  
According to Article 46 of the Regulations of the People's Republic of China on Import and Export 
Duties , duty reductions or exemptions and temporary duty  reductions or exemptions may apply to 
goods imported and exported to designated areas, for specific enterprises or for specific uses in 
accordance with relevant regulations of the State Council.  
3.1.6 Anti -dumping, countervailing, and safeguard measures,  3.1.6.1 Anti -dumping 
measures, page 56, paragraph 3.45  
In accordance with the Provisional Rules Governing the Sampling (the Sampling Rules), MOFCOM 
must determine dumping margin separately for each individual responding exporter or producer. 
However, MOFC OM may make use of a sampling method when the number of exporters or producers 
is so large that it would be unduly burdensome and prevent the timely completion of the 
investigation. MOFCOM has the faculty to decide on the selection of exporters and produce rs for the 
sample and determines a separate margin of dumping for each individual exporter and producer 
selected in it. The dumping margin for responding exporters and producers not subject to individual 
examination is determined on the basis of the weight ed average margin of dumping determined for 
the sampled exporters and producers, calculated excluding zero or de minimis  (less than 2%) 
margins of dumping. The investigating authorities generally adopt random sampling, taking into 
account export volumes. T he Sampling Rules also allow MOFCOM to have recourse to the sampling 
of products if the number of types of product under investigation is too large. The procedures and 
means of determining dumping are similar to those used for exporter and producer samplin g. 
Question  13 
Please indicate the measures undertaken by the Chinese government to address the anti -dumping 
measures imposed by some WTO members.  WT/TPR/M/3 75/Add.1  
 
- 708 - 
 
  Reply  
Please further clarify the question.  
3.1.6.3 Safeguard measures, page 60, paragraph 3.65  
Final measures  may take the form of tariff increases or quantitative restrictions. Based on the 
findings and recommendations by MOFCOM, SCTC will make the final determination on whether to 
adopt measures in the form of tariff increases. Decisions to adopt a final measur e in the form of a 
quantitative restriction are made directly by MOFCOM. Final safeguard measures may not remain in 
place for more than four years; this period may, however, be extended if its continuation is deemed 
to be necessary to prevent or remedy ser ious injury. The total period of application of a safeguard 
measure and any extension cannot exceed ten years.  
Question  14 
Please provide details on the basis of determination whether to adopt measures in the form of tariff 
increases or quantitative restri ctions.  
Reply  
The related government departments will take the following elements into consideration, such as 
product features, domestic demand as well as import management methods and base on the specific 
circumstance of each case, and make a final decisi on on the measure to be taken.   
3.3 Measures Affecting Production and Trade, 3.3.1 Incentives, page 68, paragraph 3.101  
The NDRC also promulgated Interim Measures for the Administration of Central Budget Investment 
(Subsidy) on High -tech Industry Development Projects60 in December 2016. They establish that the 
Government can provide investment subsidies and interest discounts to high -tech promotion 
projects, including innovative capacity building projects, Internet and big data pilot projects, 
information and technology infrastructure building, and regional industrial concentration and 
promotion projects. However, details of the specific measures are as yet unknown.  
Question  15 
Please provide information on the investment subsidies and interest disc ounts being provided to the 
relevant industries.  
Reply  
The purpose of implementing the above measures is to stimulate the innovation vigor and 
entrepreneurial enthusiasm of the whole society, and to effectively promote the vigorous 
development of new techn ology, new industry, new form of industry and new mode. The specific 
measure is to provide investment subsidies for the development projects of the high technology 
industry that meet the relevant requirements of the Interim Measures for the Administration of 
Central Budget Investment (Subsidy) on High -tech Industry Development Projects.  
Page 69, paragraph 3.107  
As at January 2018, no subsidies had been notified for the period 2015 to 2017. The authorities 
indicated that a notification covering the years 201 5 and 2016 would be issued before the 
TPR meeting.  
Question  16 
Please provide updates on the subsidies notification for the period 2015 -2017. WT/TPR/M/3 75/Add.1  
 
- 709 - 
 
  Reply  
Please refer to the latest notification on subsidies submitted by the Chinese government before the 
seventh TPR. 
Page 69, paragraph 3.108  
In addition to the notified programmes, other programmes are in place to support different industries 
and attract foreign investment. However, no information on subsidies that extend beyond their 
notified programmes was provid ed to the Secretariat.  
Question  17 
Please elaborate on the programmes in place to support to different industries and attract foreign 
investments. What is China's rationale for not including said programmes in the previous subsidies 
notifications?  
Reply  
Please refer to the latest subsidy notification submitted by China.  
Page 69, paragraph 3.109  
Each province or city may also provide a certain amount of financial support to a particular industry 
for a fixed period, in addition to the support measures grant ed by the central government. For 
example, according to some reports, in 2016 more than 15 provinces, autonomous regions, and 
municipalities provided financial subsidies to projects in the photovoltaic industry  
Question  18 
Please provide information on the  provinces or cities and its industries being supported. In what 
form of financial support is being provided to these industries? Has this been included in the previous 
notifications? If not, will China include it in the next and subsequent notifications?  
Reply  
Please refer to the latest subsidy notification submitted by China.  
Page 69, paragraph 3.112  
Support is also available for small and medium enterprises. The Plan on Promoting the Development 
of Small and Medium -sized Enterprises (2016 -2020), issued by the Ministry of Industry and 
Information Technology, points out the objectives and key projects for the promotion of SMEs during 
the 13th Five-Year Plan. However, no details were provided on the concrete measures taken during 
the period under review.  
Question  19 
What are the initiatives/project/measures that were undertaken to implement the said plan on 
promoting SME development?  
Reply  
Please refer to the latest subsidy notification submitted by China.  
3.3.2 Standards and other technical requirements, 3. 3.2.1 Overview, page 73, 
paragraph  3.121  
Voluntary standards cannot in principle become mandatory standards since the nature of the 
standard has been determined at the beginning of its formulation procedures. However, a voluntary WT/TPR/M/3 75/Add.1  
 
- 710 - 
 
  standard could be referenc ed in a technical regulation, making it mandatory. Government agencies, 
such as the NDRC and the MIIT, have the faculty to approve and promulgate technical regulations 
that may make reference to voluntary standards, rendering them mandatory.  
Question  20 
Indicate areas where voluntary standards apply? How are these regulated and operationalized?  
Reply  
According to the Standardization Law of the People's Republic of China , mandatory technical 
standards shall be established for protection of people's health, l ife, property safety, national security, 
ecological environment safety and meeting the basic technology needs for economic and social 
management. For the rest, recommended standards may be formulated.  
Competent agencies for standardization of the people's government at or above the county level and 
relevant authorities shall guide and supervise the formulation of standards in accordance with their 
statutory duties, supervise and inspect the implementation of standards.  
3.2.3 Labelling and packaging, page 76 , paragraph 3.139  
The Catalogue of Entry -Exit Commodities Subject to Inspection and Quarantine lists all imports and 
exports subject to statutory inspection by the entry and exit inspection and quarantine authorities 
prior to their commercialization (or ex it) in (from) China. Regarding imports, in November 2017 the 
Catalogue contained 4,591 tariff lines at the HS 8 -digit level. In 2017, regulatory conditions changed 
for some 200 tariff lines  
Question  21 
Provide details on the change of regulatory conditions  and what sectors/products were mainly 
affected?  
Reply  
The adjustments to the Catalogue of Import and Export Commodities for Inspection and Quarantine 
by Entry -Exit Inspection and Quarantine Institutions  in 2017 are as follows: customs supervision 
conditions of 12 10 -digit customs commodity codes "A/B" are cancelled, and they are immune from 
entry -exit inspection and quarantine; customs supervision conditions of 17 10 -digit customs 
commodity codes is adju sted from "A/B" to "A/" and they are only subject to entry inspection and 
quarantine; customs supervision conditions of 168 10 -digit customs commodity codes "A/" are 
cancelled, and they are immune from entry -exit inspection and quarantine.  
 
See the table below for details:  
No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
1 2826121000  Anhydrous aluminium  fluoride  A/B  
2 2826129000  Other aluminium  fluoride  A/B  
3 2842901100  Sodium thiocyanate  A/  
4 2903771000  Trichlorofluoromethane  (CFC-11) A/B  
5 2903791013  Trifluorochloroethane  A/B  
6 2922421000  Glutamic acid  A/B A/ 
7 2922422000  Sodium glutamate  A/B A/ 
8 2922429000  Other glutamate  A/B A/ 
9 2922499911  Chloramben  A/B A/ 
10 2922499916  Carbaryl, dimetan, promacyl  A/B A/ 
11 2922499917  Cloethocarb  A/B A/ 
12 2922499918  Hydrochloride  A/B A/ 
13 2922509020  Threonine  A/B A/ 
14 2922509090  Other amino -alcoho l-phenols, amino -acid phenols 
(including other amino - compounds  with oxygen function  A/B A/ WT/TPR/M/3 75/Add.1  
 
- 711 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
15 2930400000  Methionine  A/B A/ 
16 2930901000  Cystine  A/B A/ 
17 2930909091  DL-hydroxy methionine  A/B A/ 
18 2933692100  Dichloroisocyanurate acid  A/B  
19 3302101000  Preparations based on odoriferous sub stances, of a kind 
used for the manufacture of beverages, alcoholic strength 
by volume ≤0.5%  A/B A/ 
20 3303000010  Perfume and toilet water  A/B  
21 3303000020  Perfume and toilet water  A/B  
22 3605000000  Matches, other than pyrotechnic articles of heading  3604 A/B  
23 3802109000  Activated carbon other than of wood  A/B  
24 3823120000  Oleic acid  A/B A/ 
25 3903110000  Polystyrene expansible, in primary form  A/B  
26 7202210010  Ferro-silicon, contai ning more than 55% but less than 90% 
of silicon  A/B  
27 7202290010  Ferro-silicon, containing more than 30% but less than 55% 
of silicon  A/B  
28 8404101010  Auxiliary equipment for non -pipe steam boilers using 
(renewable) biomass fuel  (eg. superheaters, ash removers, 
gas recyclers)  A/  
29 8404101090  Auxiliary equipment for other steam boilers and 
superheated water boilers (eg. superheaters, ash 
removers, gas recyclers)  A/  
30 8404102000  Auxiliary equipment for central heating hot water boilers 
(e.g. super -heaters, ash removers, gas recyclers)  A/  
31 8404200000  Condensers for water and other steam power plants  A/  
32 8407342010  Natural gas engines with displacement  ≥5.9 litres (spark -
ignition reciprocating piston engines for vehicles listed in 
Chapter 87)  A/  
33 8407342090  Other reciprocating piston  engines with displacement 
>3000cc (spark -ignition reciprocating piston engines for 
vehicles listed in Chapter 87)  A/  
34 8414301400  Compressor for air conditioning machines, motor power 
>5kW  A/  
35 8414301500  Compressor for refrigerators or freezers, motor power 
>5kW  A/  
36 8414599050  Axial fans for heat elimination of electronic products  A/  
37 8414599099  Other fans  A/  
38 8415200000  Air conditioners for motor vehicles  A/  
39 8415830000  Air conditioners without refrigerating unit  A/  
40 8422309010  Filling equipment (dual -use item s control)  A/  
41 8422902000  Parts of bottling or canning machinery for beverages or 
liquid food  A/  
42 8434900000  Parts of milking machines and dairy machinery  A/  
43 8435900000  Parts of presses, cr ushers and similar machinery used in 
the manufacture of wine, fruit juices or similar beverages  A/  
44 8438900000  Parts of machines for the food and beverage industry 
(machines listed in heading 8438)  A/  
45 8458110010  Horizontal lathes for cutting metal controlled by dual -use 
items (including turning centr es) A/  
46 8458911010  Vertical lathes for cutting metal controlled by dual -use 
items (including turning centres)  A/  
47 8458912010  Other  lathes for cutting metal controlled by dual -use items 
(including turning centres)  A/  
48 8479899951  Isostatic press (dual -use item s control machines and 
mechanical appliances)  A/  
49 8479899952  Bioreactor  (dual-use item s control machines and 
mechanical appliances)  A/  
50 8479899953  Chemostat  (dual-use item s control machines and 
mechanical appliances)  A/  
51 8479899954  Continuous perfusion system  (dual-use item s control 
machines and mechanical appliances)  A/  
52 8479899955  Filament winding machines coordinated and programmed 
in three or more axes  (dual-use item s control machines 
and mechanical appliances)  A/  
53 8479899959  Other dual-use item s control machines and mechanical 
appliances  A/  
54 8506901000  Parts of manganese dioxide primary batteries  A/  
55 8506909000  Parts of other prim ary batteries  A/  
56 8507100000  Lead acid, of a kind used for starting piston engines  A/B A/ WT/TPR/M/3 75/Add.1  
 
- 712 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
57 8507809010  Other electric accumulators , fuel cell  A/B A/ 
58 8507809090  Other electric accumulators , other battery  A/B A/ 
59 8507901001  Electrode of lead -acid battery, parts  A/  
60 8507901090  Other lead -acid battery parts  A/  
61 8507909000  Other battery parts  A/  
62 8517121011  GSM digital telephone sets  A/  
63 8517121021  CDMA digital telephone sets  A/  
64 8523292100  Unrecorded magnetic tapes of a width ≤ 4mm  A/  
65 8528591010  LCD monitors, specially used for navigation systems  A/  
66 8544110000  Winding wire of copper  A/  
67 8544190000  Winding wire other than of copper  A/  
68 8544200000  Co-axial cable and other co -axial conductors  A/  
69 8544302001  Wiring harness for electronically controlled diesel engines 
for vehicles  A/  
70 8544302090  Other ignition wiring sets and other wiring sets used for 
motor vehicles  A/  
71 8544309000  Other ignition wiring sets and other wiring sets  A/  
72 8544421100  Electric connector cables for a voltage ≤80V  A/  
73 8544421900  Other electric conductors for a voltage  ≤80V  A/  
74 8544491100  Other electric cable s for a voltage  ≤80V  A/  
75 8544491900  Other electric conductors for a voltage  ≤80V  A/  
76 8544492900  Other electric conductors for a voltage >80V but ≤1000V  A/  
77 8544601300  Electric cables for a voltage >35kV but ≤110kV  A/  
78 8544601400  Electric cables for a voltage >110kV but ≤220kV  A/  
79 8544601900  Electric cables for a voltage >220kV  A/  
80 8544609001  Gas insulated metal -enclosed power transmission line with 
rated voltage ≥500kV  A/  
81 8544609090  Other electric conductors with a  rated voltage ＞1kV A/  
82 8544700000  Optical fibre cables  A/  
83 8607191000  Axles  for railway and tramway locomotives, including parts  A/  
84 8607199000  Wheels for railway  and tramway locomotive, including 
parts A/  
85 8703214090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
86 8703215090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
87 8703219090  Motor vehicles, with only spark -ignition internal 
combustion reciprocating piston engine, of a cylinder 
capacity ≤1,000 cc, CKD  A/  
88 8703223090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
89 8703224090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
90 8703225090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
91 8703229090  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,000 cc and ≤1,500 cc, CKD  A/  
92 8703234190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capaci ty >1,500 cc and ≤2,000 cc, CKD  A/  
93 8703234290  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
94 8703234390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
95 8703234990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >1,500 cc and ≤2,000 cc, CKD  A/  
96 8703235190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 713 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
97 8703235290  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  
98 8703235390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capaci ty >2,000 cc and ≤2,500 cc, CKD  A/  
99 8703235990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >2,000 cc and ≤2,500 cc, CKD  A/  
100 8703241190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >3,000 cc and ≤4,000 cc, CKD  A/  
101 8703241390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capac ity >3,000 cc and ≤4,000 cc, CKD  A/  
102 8703241990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >3,000 cc and ≤4,000 cc, CKD  A/  
103 8703242190  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc, CKD  A/  
104 8703242390  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc,  CKD A/  
105 8703242990  Motor vehicles,  with only spark -ignition internal 
combustion reciprocating pi ston engine, of a cylinder 
capacity >4,000 cc, CKD  A/  
106 8703311190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity ≤1,000 cc, CKD  A/  
107 8703311990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi-diesel), of a 
cylinder capacity ≤1,000 cc, CKD  A/  
108 8703312190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
109 8703312290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
110 8703312390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
111 8703312990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
112 8703321190  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
113 8703321290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD A/  
114 8703321390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
115 8703321990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
116 8703322190  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
117 8703322290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD A/  
118 8703322390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
119 8703322990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 714 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
120 8703331190  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
121 8703331290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD A/  
122 8703331390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
123 8703331990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
124 8703332190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
125 8703332290  Motor vehicles, with only compression -ignition internal 
combustion piston engi ne (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
126 8703332390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD A/  
127 8703332990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
128 8703336190  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
129 8703336290  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi-diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
130 8703336390  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
131 8703336990  Motor vehicles, with only compression -ignition internal 
combustion piston engine (diesel or semi -diesel), of a 
cylinder capacity >4,000 cc, CKD  A/  
132 8703401290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity ≤1,000 cc, CKD  A/  
133 8703401390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity ≤1,000 cc, CKD  A/  
134 8703401990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to externa l source of electric power, 
of a cylinder capacity ≤1,000 cc, CKD  A/  
135 8703402190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
136 8703402290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
137 8703402390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >1,000 cc and ≤1,500 cc, CKD  A/  
138 8703402990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being A/  WT/TPR/M/3 75/Add.1  
 
- 715 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
charged by plugging to external source of elec tric power, 
of a cylinder capacity >1,000 cc and ≤1,500 cc, CKD  
139 8703403190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
140 8703403290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
141 8703403390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
142 8703403990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >1,500 cc and ≤2,000 cc, CKD  A/  
143 8703404190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
144 8703404290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
145 8703404390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
146 8703404990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >2,000 cc and ≤2,500 cc, CKD  A/  
147 8703405190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
148 8703405290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
149 8703405390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
150 8703405990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >2,500 cc and ≤3,000 cc, CKD  A/  
151 8703406190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 716 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
152 8703406290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
153 8703406390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
154 8703406990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of elec tric power, 
of a cylinder capacity >3,000 cc and ≤4,000 cc, CKD  A/  
155 8703407190  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >4,000 cc, CKD  A/  
156 8703407290  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >4,000 cc, CKD  A/  
157 8703407390  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >4,000 cc, CKD  A/  
158 8703407990  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >4,000 cc, CKD  A/  
159 8703409090  Motor vehicles, with both spark -ignition internal 
combustion reciprocating piston engine and electric motor 
as motors for propulsion, other than those capable of being 
charged by plugging to external source of electric power, 
of a cylinder capacity >4,000 cc, CKD  A/  
160 8703501190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity ≤1,000 cc, CKD  A/  
161 8703501990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity ≤1,000 cc, CKD  A/  
162 8703502190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to exter nal source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
163 8703502290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
164 8703502390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 717 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
165 8703502990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,000 cc and 
≤1,500 cc, CKD  A/  
166 8703503190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
167 8703503290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
168 8703503390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
169 8703503990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >1,500 cc and 
≤2,000 cc, CKD  A/  
170 8703504190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
171 8703504290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
172 8703504390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
173 8703504990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,000 cc and 
≤2,500 cc, CKD  A/  
174 8703505190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
175 8703505290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  WT/TPR/M/3 75/Add.1  
 
- 718 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
176 8703505390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
177 8703505990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >2,500 cc and 
≤3,000 cc, CKD  A/  
178 8703506190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
179 8703506290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
180 8703506390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plu gging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
181 8703506990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >3,000 cc and 
≤4,000 cc, CKD  A/  
182 8703507190  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
183 8703507290  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to exter nal source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
184 8703507390  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
185 8703507990  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to exter nal source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
186 8703509090  Motor vehicles, with both compression -ignition internal 
combustion piston engine (diesel or semi -diesel) and 
electric motor as motors for propulsion, other than those 
capable of being charged by plugging to external source of 
electric power, of a cylinder capacity >4,000 cc, CKD  A/  
187 8703900090  Complete parts of passenger vehicles of subheading 
8703.9000  A/  
188 8705909930  Vehicles for carrying missiles, rockets, etc.  A/  
189 9006591000  Laser photo typesetting equipment (for roll film of a width 
＞35mm)  A/  
190 9006592900  Cameras used for preparing printing plates or cylinders, 
other than electronic colour scanners  A/  
191 9006599010  Framing cameras (rate of recording >225,000 frames/sec)  A/  WT/TPR/M/3 75/Add.1  
 
- 719 - 
 
  No. Customs HS 
Code in 
2017  Name of Customs HS Code in 2017  Customs 
Supervision 
Conditions 
before 
adjustment  Customs 
Supervision 
Conditions 
after 
adjustment  
192 9006599020  Electronic framing cameras (frame exposure ≤50 
nanoseconds)  A/  
193 9018129190  Parts and accessories of co lour ultrasonic diagnostic 
instrument  A/  
194 9018139000  Parts for magnetic resonance imaging equipment (medical, 
surgical, dental or veterinary)  A/  
195 9018193090  Parts and accessories of patient monitors  A/  
196 9018903090  Parts and accessories of endoscopes  A/  
197 9018909099  Parts and accessories of other medical, surgical or 
veterinary instruments  A/  
3.3.3 Sanitary and phytosanitary requirements , page 76, paragraph 3.142  
During the period under review, eight specific trade concerns (STCs) were raised by Members in the 
Committee on Sanitary and Phytosanitary Measures regarding SPS measures maintained by China, 
of which three were raise d for the first time. These STCs refer to: lack of transparency for certain 
SPS measures; import restrictions in response to the Fukushima nuclear power plant accident; 
measures on bovine meat; quarantine and testing procedures for fish; import restriction s due to 
African swine fever, Schmallenberg virus, and avian influenza; proposed amendments on GMOs; and 
an import ban on fresh mangosteen.  
Question  22 
How did China address these STCs?  
Reply  
Since the nuclear leakage accident caused by the Fukushima earthquake in Japan in 2011, in order 
to prevent health damage caused by radioactive pollution to consumers, China has taken restrictions 
on Japanese foods imported to China, and it has adjusted relevant measures for several times 
through risk analysis acc ording to the progress of the events. The relevant measures are scientific, 
reasonable and in line with the internationally accepted practice. At present, China and Japan have 
set up a joint expert group for radioactive pollution problems to jointly study and deal with the 
problem of the impact of Japanese radioactive pollution on the export of foods and agricultural 
products to China.  
China implements the inspection and quarantine access control system for the imported meat 
products. In order to prevent the introduction risks of the epidemic, China prohibits the import of 
related meat and meat products from countries or regions with major animal epidemics such as foot -
and-mouth disease and mad cow disease. If the export countries or regions have effective ly 
controlled the epidemics, the related ban lifting procedures of China shall be performed firstly. After 
the ban is lifted, China will start the inspection and quarantine access procedures for meat according 
to the application.  
The quarantine and inspect ion procedures for fish are as follows: China formulates the monitoring 
plan of inbound and outbound aquatic animal epidemic diseases and the safety risk monitoring plan 
of edible aquatic animals every year, based on which the inspection is carried out. Ch ina allows to 
import 65 kinds of aquatic products from 110 production and processing enterprises in the 
Philippines. In 2017, the Philippines exported 6 ,500 tonnes of aquatic products (USD 11.58 million) 
to China. At present, the exports of aquatic product s of the Philippines to China are normal. China 
has not received any problems from the Philippines about the inspection and quarantine procedures 
for Chinese fish imports.  
Import restrictions arising from Schmallenberg virus and avian influenza due to Afri can swine fever: 
China prohibits the import of pigs and their products from the countries or regions in which African 
swine fever occurs, the import of cattle, sheep semen and embryos from the countries or regions in 
which Schmallenberg epidemic occurs, an d the import of poultry and their products from the 
countries or regions in which avian influenza outbreak occurs.  WT/TPR/M/3 75/Add.1  
 
- 720 - 
 
  In accordance with the relevant laws and regulations of China, the fruits after completion of 
quarantine access can be imported. At present, the quarantine access work for the mangosteens 
from the Philippines has not yet been completed, so they cannot be exported to China.  
3.3.5 State trading, state -owned enterprises, and privatization, page 87, paragraph 3.179  
During the period under review, C hina replied to the questions asked in the Working Party on State 
Trading Enterprises. Questions were asked by Australia, the European Union, and the United States. 
In the Working Party, a Member submitted a counter -notification on Chinese STEs in 
December  2017, listing seven companies that it thinks should be considered as STEs.  
Question  23 
How did China address these issues related to STEs?  
Reply  
Please refer to the latest issue of state trading notification submitted by China.  
3.3.6 Government procurement, 3.3.6.1 Overview, page 89, paragraph 3.190  
According to data provided by the Chinese authorities, the total value of government procurement 
in China was RMB 2.11 trillion in 2015 and RMB 3.11 trillion in 2016 (the latest year for which data 
were made available), accounting for 3.1% and 4.2% of GDP, respectively (Table 3.22). This 
relatively low ratio may reflect the fact that important infrastructure projects implemented by SOEs 
are not covered by the Government Procurement Law. The majority of  procurement takes place at 
the sub -central government level. Procurement by local entities accounted for 95% of China's total 
value of government procurement in 2016; in the same year, procurement by the Central 
Government accounted for 5%.  
Question  24 
How does the Chinese government monitor/ensure coherence in the implementation of various 
government procurement related laws and activities?  
Reply  
Regulatory activities shall be carried out in strict accordance with law. Relevant parties may file for 
questi ons and complaints, and the regulatory authorities shall handle them according to law.  
3.3.6.3 Procurement methods and procedures, page 91, paragraph. 3.197  
The Government Procurement Law retained its "buy -domestic" (Article 10) provision when it was 
amend ed in 2014. The provision requires that procuring entities purchase domestic goods, 
construction projects and services, except in circumstances where: (i) the goods, construction, or 
services required are unavailable in China or, if available, cannot be pr ocured on reasonable 
commercial terms; (ii) the goods, construction, and services are procured for use abroad; or 
(iii) where otherwise provided for by other laws and administrative regulations. While there have 
not been official criteria for defining dome stic products, the authorities' state that the Government 
adopts the same rules when treating domestic and foreign -invested enterprises, and in practice 
China provides non -discriminatory and equal treatment to all products manufactured in China 
regardless of the degree of foreign affiliation or ownership of producers.118 The Administrative 
Measures on Government Procurement of Imported Products (issued by the Ministry of Finance, 
27 December 2017) require pre -approval for procurement of imported products.11 9 The authorities 
state that there are no data on actual government procurement, including goods, services and 
construction services that are sourced domestically.  WT/TPR/M/3 75/Add.1  
 
- 721 - 
 
  Question  25 
We note that China is on the process of accession to the WTO Government Procurem ent Agreement 
(GPA), will China amend its GP Law, specifically on the buy domestic provision, in time for the 
completion of China's accession to GPA?  
Reply  
Once China joins in the GPA, the legislature will revise the government procurement law.  
4.1.2 Polic y objectives and administration, page 113, paragraph 4.5  
The broader policy goals stated in the 12th Five-Year Plan (2011 -2015) and the 13th Five-Year Plan 
(2016 -2020) of accelerating modernization in the sector to improve farmers' well -being was 
reiterate d in the CPC Central Committee No. 1 Document of 2017. This document calls for deepening 
the supply -side structural reform in agriculture, by improving structures, promoting "green" 
production, extending the sector's industrial and value chain, boosting in novation and consolidating 
shared rural development. In that context, national grain security must be guaranteed. China plans 
to deepen the reform on pricing mechanisms for major farm products to strengthen the role of 
market mechanisms, so as to assure th at farmers sell their harvest at reasonable prices. A key goal 
is to increase the output of high -quality products based on green and innovative production. To 
achieve that goal, China is to maintain its zero increase in the usage of pesticides and fertiliz ers, 
vigorously control water usage in the sector, and enhance research. The reform also aims to refine 
the quality supervision and standards system for farm produce, control soil pollution and encourage 
agricultural businesses to gain international certif ications. China plans to promote the export of 
competitive farm produce and the cross -border operation of agricultural enterprises.  
Question  26 
What are these high -quality products being referred to?  
Reply  
High-quality agricultural products refer to all kinds of agricultural products, which are mainly the 
agricultural products for food and feed.  
4.3 Manufacturing, 4.3.1 Recent developments, page 140, paragraph 4.86  
The authorities recognize the issue of excess capacity in some manufacturing sectors, such as iron 
and steel, and have made efforts to reduce capacity in recent years.  
Question  27 
Please describe in detail the efforts made to reduce excess capacity in some manufacturing sectors.  
Reply  
In February 2016, the State Council issued the Opinions of th e State Council on Resolving Excess 
Capacity in the Steel Industry for Development Out of Difficulty  (GF [2016] No. 6), in which a 
comprehensive deployment for resolving excess capacity of the iron and steel industry is conducted, 
and an objective for redu cing 100 -150 million tonnes of crude steel production capacity in five years 
from 2016 is set. In order to ensure that all work are promoted orderly and solidly, the 
inter-ministerial joint meeting was held. Since 2016, the inter -ministerial joint meeting has sent 
special inspection groups, acceptance and spot check groups for several times to inspect all iron and 
steel enterprises undertaking capacity reduction tasks on site, organized and performed three special 
actions, including elimination of that lagg ard, cleaning of illegal construction projects and joint law 
enforcement, and adhered to actively promote the resolving of excess capacity work of steel. The 
crude steel production capacity has been reduced by more than 120 million tonnes, making a 
promine nt contribution for improvement of global steel industry.  
  WT/TPR/M/3 75/Add.1  
 
- 722 - 
 
  PERU  
Sobre la base de lo señalado en los documentos WT/TPR/S/375 y WT/TPR/G/375 del 6 de junio 
del 2018, el Perú tiene las siguientes preguntas:  
Informe de la Secretar ía - WT/TPR/S/375  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan a la producción y al comercio, 3.3.1. Incentivos , párrafo 3.110  
Question 1  
China también presta apoyo específico a proyectos destinados a revitalizar y modernizar 
determinadas regiones. De conformidad con lo dispuesto en los Dictámenes del Comité Central del 
Partido Comunista de China y del Consejo de Estado sobre la Revitalizaci ón General de la Antigua 
Base Industrial del Nordeste de China, así como en el Decimotercer Plan Quinquenal y en el 
Decimotercer Plan Quinquenal para la Revitalización del Nordeste de China, el Estado respalda 
proyectos de transformación industrial y moder nización de las bases de demostración (cuadro  3.13) , 
a fin de acelerar la transformación y modernización de las antiguas ciudades industriales. La mayor 
parte de estas medidas de ayuda no se limitan necesariamente a antiguas ciudades industriales o a 
indus trias de alta intensidad de recursos.  
Cuadro 3.13 Medidas de ayuda para proyectos de transformación y modernización 
industrial  
Política 
de apoyo  Medidas conexas  
Política 
industrial  Fondo para la Orientación del Capital de Riesgo en aras de la Industria Nacional Emergentea 
Fondo Nacional para el Desarrollo de las Pequeñas y Medianas Empresasb 
Fondo Especial para la Transformación y Modernización Industrial (China Manufacturing 2025)c 
Fondo Nacional para la Construcción Especializada  
Políticas fiscales pre ferenciales para la adquisición y utilización de aparatos que fomentan el 
ahorro energético, la protección del medio ambiente y la producción segura  
Política de 
innovación  Fondo Nacional para la Transferencia y Comercialización de Tecnologíad 
Fondo de Inversión Industriale 
Financiación de Garantías en materia de Propiedad Intelectualf 
Política de 
inversión  Fondo Especial para Mejorar la Competitividad Básica del Sector Manufacturero  
Fondo Especial para el Fomento y Desarrollo de las Industrias Emergent es en el Nordeste 
de China  
Fondo Especial de Subvenciones para Grandes Proyectos de Revitalización en el Nordeste de 
China y para Proyectos de Cooperación Interprovincialg; Medidas Provisionales sobre la Gestión 
de las  Subvenciones a la Inversión y la Dedu cción de Intereses Previstas en el Presupuesto 
Centralh 
Política 
financiera  Fondo de Inversión Industriali 
Diversificación de los canales de financiación para respaldar los proyectos industriales 
innovadores  
¿Cómo se evalúa el impacto de las medidas de a yuda para proyectos de transformación y 
modernización industrial?  
Reply  
By adopting the supporting measures for industrial transformation and upgrading projects, 
necessary assistances are provided in the fields and the industrial chain links in which the m arket 
fails to play an effective role so as to improve the production level of enterprises (especially middle 
and small -sized enterprises), and all types of enterprises are treated equally without discrimination 
to guarantee market demand and promote fair competition in the market.  WT/TPR/M/3 75/Add.1  
 
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  Informe de China - WT/TPR/S/375  
Question 2  
3. APLICACIÓN DE UNA NUEVA VISIÓN DEL DESARROLLO Y ESTABLECIMIENTO DE LAS 
NUEVAS INSTITUCIONES DE UNA ECONOMÍA ABIERTA, p árrafo 3.6  
El 1º de julio de  2017 se empezó a aplicar en todo el país la reforma del despacho de aduana 
integrado. Se han establecido centros nacionales de prevención y control del riesgo aduanero y de 
cobro y administración de aranceles, y se ha empezado a aplicar a las operaciones de despacho de 
aduana un enfoque de d eclaración única y tramitación por etapas. Asimismo, se ha seguido 
avanzando en el establecimiento de la ventanilla única para el comercio internacional. Actualmente 
se encuentra en funcionamiento una ventanilla única de formato uniforme en todos los puert os de 
entrada al país. Para reforzar la transparencia, todas las aduanas chinas han introducido la 
versión  1.1 de la plataforma integrada en línea para empresas. En 2017, el tiempo necesario para 
el despacho de las importaciones era por término medio de 15 ,87 horas a nivel nacional, lo cual 
supone una reducción del 36,85% con respecto a 2016, y el tiempo medio necesario para el 
despacho de las exportaciones era de 1,11 horas, esto es, un 38,24% menos que en el año anterior.  
Actualmente la República Popular de China ¿cuenta con algún sistema para el intercambio de 
información con otras aduanas?  
Reply  
China has established an electronic data exchange system for origin under some preferential trade 
arrangements for transmitting relevant information on the certi ficates of origin to facilitate the 
implementation of the agreement.  
 
  WT/TPR/M/3 75/Add.1  
 
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  SAUDI ARABIA, KINGDO M OF  
Report by China - WT/TPR/G/375  
Question  1 
In paragraph 3.17, it was mentioned that in May 2016 , China launched the experimental Work of 
comprehensive pilot programme s on establishing new institutions of an open economy in 12 cities.  
Can you further explain the purpose, functions and development of such programme s in economic 
and administrative reform policies?  
Reply  
China has accelerated the building of an open and new economic system, established 11 free trade 
pilot zones, put into force a regulatory system for foreign capital based on pre -establishment national 
treatment with a negative list approach, and adopted more than 300 innovative measures. China 
has conducted amendment to the Foreign Investment Catalogue, and constantly expanded the 
opening up of service, manufacturing and mining sectors. China will open more sectors to foreign 
investment, relax restrictions on market access, work proactively and ef fectively to bring in foreign 
capital and advanced technology, and increase the overall efficacy of foreign capital utilization. China 
will work to create a business environment that is more internationalized, convenient, and based on 
the rule of law. Chin a will unify laws and regulations for domestic and foreign capital, introduce basic 
laws on foreign capital, and protect the legitimate rights and interests of foreign companies. China 
will improve work in developing pilot free trade zones, encourage explo ration and experimentation 
and apply successful experiences to other areas. China will put into force a regulatory system across 
the board for foreign capital based on pre -establishment national treatment with a negative list 
approach.  
Question 2  
In sectio n 3.3.2. , it was mentioned that "enterprises with sufficient capabilities are encouraged to 
conduct overseas cooperation in areas including infrastru cture, energy and resources and etc. 
Agricultural cooperation can be promoted steadily. Technologies and te chnical standards should go 
abroad. Chinese investors and entities are also supported in their construction, management and 
upgrading of overseas economic and trade cooperation  zones".  
Given the importance of overseas cooperation, what specific policies an d procedures were taken to 
encourage such cooperation with GCC countries in general and Saudi Arabia in particular?  
Reply  
For a long time, the Chinese government has encouraged enterprises to carry out foreign investment 
and cooperation by upholding the pr inciple of equality, mutual benefit and win -win cooperation and 
observing business rules, international practices and local laws, and has actively conducted 
intergovernmental negotiations to create a good business environment for such investment and 
cooper ation, but China has no specific policies for Saudi Arabia.  
Question 3  
From section 3.5.1. we understand that the Shanghai Pilot FT/began exploring the foreign 
investment administration model of pre -establishment national treatment plus negative list and 
issued the first negative list for foreign investment access in 2013 to replace the traditional model 
of case -by-case examination and approval.  
What are the criteria used to build the negative list and how could implementing such criteria help 
promote fore ign investment administration model?  WT/TPR/M/3 75/Add.1  
 
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  Reply  
At the end of June 2018, China revised and introduced new versions of the nationwide negative list 
for foreign investment and the negative list for foreign investment in pilot free trade zones. The 
revised negative lists for foreign investment are important documents for China to substantially 
widen market access for foreign investment. They include two negative lists applicable to the whole 
country and pilot free trade zones respectively, and the negative l ist for pilot free trade zones is 
more open than the nationwide negative list. The opening up of manufacturing sectors will be a focus 
of the new negative lists. In the automobile industry, for example, China will implement transitional 
opening periods for  different types and will remove foreign equity caps on manufacturing of special -
purpose vehicles and new -energy vehicles in 2018; the foreign equity caps on commercial vehicles 
will be removed in 2020; the foreign equity caps on passenger vehicles and the  restriction that there 
shall be not more than two joint ventures will be removed in 2022. Through five -year transitional 
period, all the restrictions in the automotive industry will all be removed. As regards the shipbuilding 
industry, China will lift for eign equity caps for companies engaged in the design, manufacturing and 
repair of vessels in 2018. Moreover, China will lift foreign equity caps on airplane manufacturing of 
trunk airliners, regional jets, utility aircrafts, helicopters, drones and lighter -than-air aircrafts in 
2018. The new negative lists will also introduce a series of opening up measures in areas of high 
concern to the market such as energy, resources, infrastructure, transportation, commercial 
circulation, and professional services. In addition to the opening up measures of 2018, the new 
negative lists will also introduce the opening up measures of some industries in automobile and 
financial sectors in the next few years, which will greatly enhance the predictability of opening up.  
Quest ion 4  
In paragraph  3.40. it was mentioned that features of inward direct investment development included 
the continuation of development of the sectoral distribution of foreign investment.  
Kindly explain in more details how the sectoral distribution of for eign investment is encouraged?  
Reply  
Please refer to answer to question 3.  
Question 5 
From section 5.7,  we understand that China has continued to implement targeted poverty reduction 
and alleviatio n measures so as to ensure that by the year 2020  all rural residents living below the 
current  poverty line will have been out of poverty.  
Can you provide us with more insights about the policy reduction programmes used by the 
government to achieve this target?  
Reply  
China has promulgated guiding opinion s on doing a good job in poverty alleviation through 
employment, and has actively implemented poverty alleviation through employment through getting 
a clear picture of the basic information, promoting transfer employment, strengthening labour 
service coope ration and other measures.  
Table 1: 2010 -2016 Rural poverty in China  
Year Poverty Stricken 
Population  
(10,000 people)  Reduce Poverty 
Population  
(10,000 people)  Poverty Incidence 
(%) Decrease of Poverty 
Incidence (%)  
2011 12238  4329 12.7 4.5 
2012 9899 2339 10.2 2.5 
2013 8249 1650 8.5 1.7 
2014 7017 1232 7.2 1.3 
2015 5575 1442 5.7 1.5 
2016 4335 1240 4.5 1.2 
Note:  The current rural poverty line is 2,300 yuan a year per person (at 2010 prices).  WT/TPR/M/3 75/Add.1  
 
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  Table 2: 2013 -2016 Household Survey Data of Major Indicators  
Indicators  Unit 2013  2014  2015  2016  
National per capita disposable income  yuan 18311  20167  21966  23821  
Per capita disposable income of urban residents  yuan 26467  28844  31195  33616  
Per capita disposable income of rural residents  yuan 9430 10489  11422  12363  
Urban -rural resident income ratio (rural resident income as 1)   
2.81 2.75 2.73 2.72 
Gini Coefficient of per capita resident income   0.473  0.469  0.462  0.465  
Table 3: 2013 -2016 Per capita disposable income of residents in Eastern, Middle, Western 
and North -Eastern China  
Types  Year National  East Middle  West  Northeast  
All residents  2013 18311  23658  15264  13919  17893  
2014 20167  25954  16868  15376  19604  
2015 21966  28223  18442  16868  21008  
2016 23821  30655  20006  18407  22352  
Urban residents  2013 26467  31152  22665  22363  23507  
2014 28844  33905  24733  24391  25579  
2015 31195  36691  26810  26473  27400  
2016 33616  39651  28879  28610  29045  
Rural residents  2013 9430 11857  8983 7437 9761 
2014 10489  13145  10011  8295 10802  
2015 11422  14297  10919  9093 11490  
2016 12363  15498  11794  9918 12275  
 
Question 6 
In section 5.17,  it is mentioned that China has vigorously promoted the development of small and 
medium -sized enterprises (SMEs) and private businesses. On 1 January 2018 , the revised law on 
promotion of small and medium -sized e nterprises took effect.  
Can you provide us with more details about the revised SMEs law and how does it plan to develop 
this vital sector?  
Reply  
Assistance programmes for SMEs: The Plan on Promoting the Developme nt of Small and Medium -
sized Enterprises (2016 -2020) was formulated in accordance with the Law of the People's Republic 
of China on the Promotion of Small and Medium -sized Enterprises and the Outline of the 
13th Five-Year Plan for the National Economic and  Social Development of the People's Republic of 
China. The Outline points out general ideas, development goals, main tasks, key projects and special 
campaigns for the promotion of and guidance for SME development during the 13th Five-Year Plan. 
There are n o changes to the definition and classification of SMEs.  
Report by the Secretariat - WT/TPR/S/375  
Question 1 
In section 1.3, according to the OEC D, high enterprise investment was financed by debt, fuelled by 
interest subsidies and implicit guarantees for state-owned enterprises (SOEs) and other public 
entities . 
How do authorities respond to the above statement regarding the SOEs support? Can the authorities 
provide legitimate evidence to j ustify the interest rate differences?  
Reply  
After nearly 40 years of  reform and development, China has gradually achieved the separation of the 
functions of the government from those of enterprises and state assets management authorities. All 
ownership enterprises have been equally treated under Chinese laws and government  regulation, 
and the state -owned enterprises have become independent and market -oriented players.  Currently, 
the listed companies hold the assets of most central enterprises whose profits mainly come from 
operating income, capital gain and investment incom e. And the incremental enterprise revenue is WT/TPR/M/3 75/Add.1  
 
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  the result of market development, technological innovation and improved management level.  At 
present, there is no special stipulation in China's laws and regulations regarding subsidies for 
state-owned enterpris es, and state -owned enterprises do not enjoy subsidies based on ownership.  
Credit is an independent behaviour of market player, in terms of which the Chinese government does 
not intervene.  The Commercial bank loans should not only take a single indicator s uch as an 
enterprise's return on net assets into consideration, but also comprehensively measure factors 
including future solvency, reputation and sustainable development.  The current differences in 
corporate loan limit and interest rate in practical are n ot caused by the differences in ownership, but 
the behaviour of commercial bank based on its own market judgments.  
Question 2 
In section 1.4, the report stated that China continues to be in a transition to a more sustainable 
develop ment path and refo rms have advanced across many areas, including the introduction of 
measures to reduce overcapacity, strengthen local  government borrowing frameworks and address 
financial sector risks.  
Can you please explain what nature of such monitoring mechanism is; its  policies and performance 
evaluation methods for all of these important transitions?  
Reply  
In the report by the Secretariat, the monitoring mechanism is not mentioned there, so we have no 
idea what the nature of the monitoring mechanism inquired in the que stion refers to.  
As regards the reforms on how to prioritize modern corporate system perfection, improvement of 
state-owned asset management system based on asset management, development of mixed 
ownership economy, and supervision enhancement on and preven tion of loss of state -owned assets,  
according to the deployment and arrangement of the leading group of the state -owned enterprises 
reform of the State Council, since 2016, the State -owned Assets Supervision and Administration 
Commission of the State Counc il has issued the Program on the Pilot Work Matters and Division of 
the State -owned Enterprises Reform , which requires to improve the state -owned assets management 
system and develop mixed ownership economy and other reform tasks based on asset management 
around the improvement of the modern enterprise system, and it put forward ten pilot reform 
projects, including implementation of the function and power of the board of directors, market -
oriented selection of management managers, promotion of professional manager system, 
differentiation of enterprise salary distribution, state -owned capital investment for operation of 
companies, and mixed ownership reform in some important areas, etc. to promote the 
implementation of overall reform measures, explore mature and feasible reform paths and ways, try 
out new systems, new mechanisms and new models, and form reproducible and transferable 
experiences through promoting work in all areas by drawing upon the experience gained on key 
points and with the part pushing the  whole by means of pilot organization, pilot linkage reinforcement 
and others.  
The monitoring mechanism and performance appraisal methods adopted in the above reform areas.  
On the one hand, the leading units of various reform pilots will conduct follow up and supervise 
regularly to ensure the direction and progress of the pilot.  On the other hand, the departments of 
deepening reform in an all -round way around the country will also incorporate the important reform 
pilot projects into the annual key supervisi on tasks and urge the implementation of the tasks.  At the 
same time, the state -owned assets supervision and management institutions at all levels will also 
consider the implementation of specific pilot tasks by pilot units in the annual performance apprais al. 
Question 3  
In section 1.5. the report mentioned that the IMF report suggests that the Chinese authorities should: 
further boost consumption by increasing social spending and making the tax code more progressive; 
increase the role of market forces by reducing implicit subsidies to SOTs and opening more key 
sectors to private investment; and further deleverage the private sector with continued regulators 
supervisor) tightening, greater recognition of bad assets, and more market -based credit allocation.  WT/TPR/M/3 75/Add.1  
 
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  How do the Chinese authorities assess all these suggestions from the IMF? Concerning opening more 
sectors to private sector and making tax code more progressive, what is your opinion on these 
policies?  
Reply  
Since 1 May 2016, China has carried out nationwi de pilots for replacing business tax with value -
added tax. The pilots have covered business tax payers in construction, real estate, financial and life 
service industries, and included in the deductible range the VAT of all the newly added corporate 
real e state. A complete consumption -type VAT system has taken shape, effectively lightening the 
burden on enterprise, eliminating repeat taxation, and creating sound environment for fair 
competition and replacing traditional drivers of growth with new ones.  
Ques tion 4  
In section 1.10. Major monetary policy decisions on benchmark lending and deposit rates continue 
to go through the State Council: rates on money market instruments such as repos and SLFs are 
set by the PBOC. In August 2016, as concerns emerged of a bubble in the debt market caused by 
investors using cheaper short -term financing (seven -day repos) to invest in longer -dated bonds, the 
PROC intervened and started using longer -term instruments, such as 14 -day repo agreements and 
medium -term loan facilitie s, which have a higher interest rate.  
How responsive the monetary authority to circumstances and changes in monetary policies for 
advanced economies and specifically U S? 
Reply  
At present, facing complicated economic and financial situations at home and abr oad, PBOC will do 
well the following work in the next stage: first, implement sound monetary policies, provide funds 
in strict accordance with rules, strengthen pre - and fine adjustments, and maintain reasonable and 
enough liquidity; encourage financial in stitutions to increase their support for the real economy, and 
reduce the financing costs of the real economy. Second, proactively and steadily prevent and defuse 
financial risks, and better integrate the prevention and mitigation of financial risks with t he goal to 
serve the real economy; carefully put the aforesaid measures in place in strict accordance with the 
deployment and requirements of the three -year action plan for preventing and defusing major risks. 
Third, continue to improve the financial servi ces of small and micro enterprises; strengthen the 
examination and encouragement, and implement various policies and measures to deepen the 
financial services of small and micro enterprises; continue to promote financial support to perfectly 
implement thre e-year programme  for poverty alleviation, place more focuses on the poverty -
stricken areas, and increase the efforts made for the financial -based poverty alleviation in poverty -
stricken areas. Fourth, further expand the financial opening, steadily promote the 
internationalization of RMB, and orderly realize the convertibility of the RMB capital account. Fifth, 
pay more attention to the communication with the market about policies, and create a good 
atmosphere for the development and stability of financial r eform.  
Question 5  
In section 1.37. The report mentioned that the services deficit has been rising for a number of years, 
and the trend continued in 2016, with the deficit rising to US D 233.1 billion.  The Widening deficit is 
on account of both increasing se rvices payments and declining receipts.  
Is the government working on the services deficit trying to decrease it? If yes, what is the plan to 
do so?  WT/TPR/M/3 75/Add.1  
 
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  Question 6  
In section  1.19, in 2016. the fis cal deficit rose to 3.8% of GDP from 3.4% in 2015. The increase was 
due to declining tax re venue as a share of GDP; it fell from 18.1% of GDP to 7.5% over the same 
period. Total expenditure also declined slight ly from 25.5%  of GDP to 25.3% over the review period. 
Government total debt declined from 38.7% of GDP in 2015 to 36.7% in 2016.  
How do the Chinese authorit ies plan to balance between government debt and economic growth 
targets?  
Reply  
Local governments moderate debts according to law conforms to the principle of  intergenerational 
equity, which is conductive to promoting the economic growth, while disordered debts are 
unsustainable. By the end of 2017, local governments in China have total debts of RMB 16.47 trillion, 
with the debt ratio (debt balance/comprehensiv e financial resources) of 76.5%, which is lower than 
the internationally -accepted alert standard. The total debts of China amounted to RMB 29.95 trillion 
if the Central Governments debts of RMB 13.48 trillion within the budget management are 
considered. Ac cording to the preliminary GDP accounting number of RMB 82.71 trillion published by 
the National Bureau of Statistics in 2017, the debt ratio (debt balance/GDP) of governments at all 
levels in China is 36.2%, which is 0.5% lower than that in the previous y ear and also lower than the 
level of major market economies and emerging market countries.  
In the next step, China will strictly control the local governments debts, leverage support to the 
structural reform on the supply side, and improve the drawbacks facing the economic and social 
development according to the laws and relevant regulations on the premise that all kinds of risks 
are effectively prevented. In the meantime, China will resolutely stop illegal debts by local 
governments, thus effectively avo iding financial risks.  
Question 7  
In section 1.27. the report mentioned that in September 2015. China's Guidelines on Deepening SOF 
Reforms were released the Guidelines identify priority areas for reform, which include improvement 
of the modem enterprise s ystem; improvement of the administration of state -owned assets with a 
focus on capital management; development of mixed ownership; and strengthening of supervision 
so as to avoid loss of state -owned assets.  
How did you prioritize these areas and based on w hat criteria?  
Can you provide us with your monitoring mechanism for achieving all these areas of reforms: 
performance evaluation methods?  
Reply  
In September 2015, China issued the Guiding Opinions on Deepening the Reform of State -owned 
Enterprises , which c learly put forward the main objectives of the reform of state -owned enterprises 
that requires to improve the modern enterprise system around the objectives and improve the 
management system of state -owned assets based on asset management and develop mixed 
ownership economy and other key tasks.  Later, a series of supporting documents were issued, 
forming a 1 + N document system, which became the policy basis for the reform of state -owned 
enterprises in the new period.  
 
__________