WT/TPR/M/342/Add.1  
28 October 2016  
(16-5925) Page: 1/491 
Trade Policy Review Body  
20 and 22 July 2016          Original: English/French/Spanish  
 anglais/français/espagnol  
inglés/ francés/ español  
 
  TRADE POLICY REVIEW  
CHINA 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Ms. Irene Young (Hong Kong, China)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  China . 
 
 
Organe d 'examen de s politiques commerciales  
20 et 22 juillet  2016 
EXAMEN DES POLITIQUE S COMMERCIALES  
CHINA 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président e: Mme Irene Young (Hong Kong, Chine ) 
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 . 
 
 
Órgano de Examen de las Políticas Comerciales  
20 y 22 de julio de 2016 
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
CHINA 
ACTA DE LA REUNIÓN  
Addendum  
President a: Sra. Irene Yo ung (Hong Kong, China ) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas 
por China . WT/TPR/M/3 42/Add.1  
 
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  CONTENTS  
1  ARGENTINA  ................................ ................................ ................................ ..................  4 
2  AUSTRALIA  ................................ ................................ ................................ ................  12 
3  BENIN (ON BEHALF OF THE LDC GROUP)  ................................ ................................ ... 43 
4  BRAZIL  ................................ ................................ ................................ .......................  49 
5  BRUNEI (ON BEHALF OF  ASEAN)  ................................ ................................ ................  74 
6  CANADA  ................................ ................................ ................................ .....................  75 
7  CANADA (FOLLOW -UP) ................................ ................................ ............................  124  
8  CHILE  ................................ ................................ ................................ .......................  127  
9  CHINESE TAIPEI  ................................ ................................ ................................ ...... 140  
10  COLOMBIA ................................ ................................ ................................ ..............  147  
11  COSTA RICA  ................................ ................................ ................................ ...........  154  
12  COSTA RICA (ADD.) ................................ ................................ ................................  155  
13  DOMINICAN REPUBLIC ................................ ................................ ...........................  157  
14  DOMINICAN REPUBLIC ( ADD.1)  ................................ ................................ .............  160  
15  DOMINICAN REPUBLIC ( ADD.2)  ................................ ................................ .............  162  
16  ECUADOR  ................................ ................................ ................................ ...............  165  
17  ECUADOR (ADD.)  ................................ ................................ ................................ .... 170  
18  EL SALVADOR  ................................ ................................ ................................ .........  173  
19  EUROPEAN UNION ................................ ................................ ................................ .. 174  
20  EUROPEAN UNION (FOLL OW-UP) ................................ ................................ ...........  198  
21  GUATEMALA  ................................ ................................ ................................ ...........  206  
22  HONG KONG, CHINA  ................................ ................................ ...............................  207  
23  INDIA  ................................ ................................ ................................ .....................  211  
24  INDIA (ADD.)  ................................ ................................ ................................ .........  219  
25  INDONESIA  ................................ ................................ ................................ ............  224  
26  ISRAEL  ................................ ................................ ................................ ...................  240  
27  JAPAN  ................................ ................................ ................................ ....................  242  
28  JAPAN (FOLLOW -UP) ................................ ................................ .............................  258  
29  KOREA, REPUBLIC OF  ................................ ................................ .............................  264  
30  KOREA, REPUBLIC OF ( ADD.)  ................................ ................................ .................  274  
31  MALAYSIA  ................................ ................................ ................................ ..............  281  
32  MEXICO  ................................ ................................ ................................ ..................  282  
33  NEW ZEALAND  ................................ ................................ ................................ ........  329  
34  NORWAY  ................................ ................................ ................................ ................  335  
35  OMAN  ................................ ................................ ................................ .....................  337  
36  PERU  ................................ ................................ ................................ ......................  338  
37  PERU (ADD.1)  ................................ ................................ ................................ ........  344  
38  PERU (ADD.2)  ................................ ................................ ................................ ........  346  
39  RUSSIAN FEDERATION  ................................ ................................ ...........................  348  WT/TPR/M/3 42/Add.1  
 
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  40  RUSSIAN FEDERATION ( FOLLOW -UP) ................................ ................................ .... 366  
41  SINGAPORE  ................................ ................................ ................................ ............  367  
42  SWITZERLAND  ................................ ................................ ................................ ....... 372  
43  THAILAND  ................................ ................................ ................................ ..............  383  
44  THAILAND (ADD.)  ................................ ................................ ................................ .. 393  
45  TURKEY  ................................ ................................ ................................ ..................  395  
46  UKRAINE  ................................ ................................ ................................ ................  411  
47  UNITED STATES  ................................ ................................ ................................ ..... 420  
48  UNITED STATES (FOLLO W-UP) ................................ ................................ ...............  477  
 WT/TPR/M/3 42/Add.1  
 
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  1  ARGENTINA  
WT/TPR/S/342  
Párrafo 2.7. En la Gaceta de Comercio Exterior y Cooperación Económica de China, del MOFCOM, 
se publican las leyes, normas nacionales y reglamentos relacionados con el comercio.  
1. Pregunta: ¿Existe alguna posibilid ad de que en la brevedad se empiecen a publicar las leyes, 
reglamentos, normas y proyectos de normas en alguno de los idiomas oficiales de la OMC?  
Reply:  
1) The Legal Affairs Working Committee under the National People 's Congress publishes, 
on a regular ba sis, 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 
Governing Foreign -related Matters. On February 24th, 2003, the General Office of the 
State Council issued the Notice on the Examination and Approval of Official English 
Translation of Regulations (Guo Ban Fa [2003 ] No. 10 ), requiring that the drafting 
departments of regula tions be responsible for translating the regulations 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 exam ination and approval of the Legislative Affairs Office of the State Council.  
3) On March 23rd 2015, the General Office of the State Council issued the Notice on 
Enhancing the Work of Translating Trade -related Departmental Rules into English, 
requiring tha t, in principle, an English translation shall 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 
afterwa rds under special circumstances.  
Párrafo 2.12. Los principales objetivos de la política comercial de China no han cambiado 
sustancialmente desde el último examen, en 2014. Según las autoridades, China está dispuesta a 
seguir liberalizando su régimen de com ercio e inversión para reformar su economía.  
2. Pregunta: ¿Mediante qué acciones China tiene pensado seguir liberalizando su régimen de 
comercio e inversión para reformar su economía?  th 
Reply: With regard to investment, China has relaxed foreign investmen t access 
restrictions by revising the Catalogue for the Guidance of Foreign Investment Industries 
(Investment Catalogue); simplified the approval process and improved foreign 
investment facilitation by reforming the foreign investment management system; an d 
built a market environment for fair competition by improving the business environment. 
With regard to trade, China has improved trade facilitation; communicated, cooperated 
and implemented mutual recognition with its trading partners; promoted facilitati on and 
liberalization of trade in services, formulated service standardization systems in line 
with the international practices, actively participated in the negotiation of multilateral 
and bilateral trade agreements, boosted the trade liberalization progr ess under the WTO 
framework, signed free trade agreements with more trading partners, and further 
improved the trade liberalization level.  
Párrafo 2.15. Se menciona que, con respecto a la reforma de la política comercial, la  Decisión 
sobre Determinadas Es feras para la Profundización para las Reformas Globales  comprende los 
siguientes cambios: a) reformar el sistema de comercio y distribución; b) reformar el régimen de 
inversiones (entradas y salidas); c) acelerar la aplicación de los acuerdos de libre come rcio; 
d) acelerar el desarrollo de la Zona Franca Experimental (Shanghái) de China; y e) abrir las zonas 
interiores y fronterizas.  
3. Pregunta: ¿Podrían explicar en qué instancias se encuentra actualmente el proceso de cambios 
descriptos?  WT/TPR/M/3 42/Add.1  
 
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  Reply: With regar d to the investment system reform, in 2014, China initiated a major 
reform in respect of foreign investment project management system, promoted the 
foreign investment project management system combining universal filing and limited 
verification. More than 95% of foreign investment projects are subject to filing 
management with local authorities. Filling will generally be finished within 10 working 
days as long as the involved projects do not violate laws, regulations or industrial 
policies. Project verifica tion has basically been delegated to local authorities. At present, 
the management for domestically - and foreign -funded projects is by and large unified. 
Except for a few areas, uniform filing and verification management is carried out for 
domestically - and foreign -funded projects.  
With regard to opening -up of inland and border areas, China is building a strategic 
inland opening support belt relying on the inland central cities and urban agglomeration; 
and supports the building of inland open economic pilo t zone in Ningxia and other inland 
areas. At present, China is moving forward the building of key open pilot zones in 
Dongxing of Guangxi; Ruili and Mengla (Mohan) of Yunan; and Manzhouli and Erenhot of 
Inner Mongolia. The State Council approved the establ ishment of the SuifenheDongning 
Key Development and Open Pilot Zone in Heilongjiang in April 2016.  
Párrafo 2.24. Menciona que el Ministerio de Comercio (MOFCOM) está revisando las tres leyes 
principales sobre inversión extranjera directa (empresas conjunt as con inversión de capital chino y 
extranjero, empresas conjuntas cooperativas con capital chino y extranjero, y sobre empresas de 
propiedad exclusiva extranjera) para fusionarlas en un solo instrume nto jurídico.  
4. Pregunta: ¿Cuá les son los objetivos que  llevaron a China a revisar los instrumentos jurídicos 
que regulan la inversiones extranjeras y cual es función del MOFCOM en la implementación de 
estas normas?  
Reply: China 's Ministry of Commerce drew up Foreign Investment Law of the People 's 
Republic of China (Draft for Public Comments)  in January 2015 to solicit opinions from 
the public, with the purpose of creating a more stable, transparent and predictable legal 
environment for foreign investment.   
Párrafo 2.25. Menciona que el Catálogo de industrias p ara la orientación de la inversión extranjera 
(Catálogo de inversiones), que se revisa periódicamente, es el principal instrumento de orientación 
de la IED en China y en el cual se enumeran los sectores en los que se alienta, restringe o prohíbe 
la IED.  
5. Pregunta: Se solicita explicar en mayor detalle el funcionamiento del Catálogo, en particular 
cuales son los sectores abiertos y restringidos y los criterios y periodicidad establecidos para su 
determinación.  
Reply: The Investment Catalogue is the industr y policy to guide foreign investment in 
China, and classifies foreign investment projects as encouraged, restricted and 
prohibited. Projects that fall outside of these three categories are identified as 
permitted. Please refer to the restricted category of  2015 revision of the Catalogue for 
the restricted projects. Specific standards for determining the encouraged, restricted 
and prohibited categories are set out in the Provisions on Guiding Foreign Investment 
(State Council Decree No.  346). China actively opens up wider to the outside world, 
revises the Catalogue as appropriate, and continues to relax foreign investment access 
restrictions.  
Párrafo 2.31. Indica que las IED pueden estar sujetas a exámenes de seguridad nacional si se 
considera que pueden afe ctar a la seguridad nacional.  
6. Pregunta: ¿Qué criterios se utilizan para determinar las IED que están sujetas a exámenes de 
seguridad? ¿Cuáles son los sectores incluidos actualmente bajo este examen? ¿En qué consiste el 
examen?  
Reply: According to the cu rrent regulations, foreign M&A security review covers 
acquisition by overseas investors of domestic military and military supporting WT/TPR/M/3 42/Add.1  
 
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  enterprises, key and sensitive military installation peripheral enterprises, and other 
units involving national security; a nd acquisition by overseas investors of domestics 
enterprises engaged in key agricultural products, important energy and resources, 
important infrastructure, important transportation services, key technology, and key 
equipment that involve national securit y, in which overseas investors may acquire the 
actual controlling right. The review concerns the impact on national security, economic 
stability, social order, and R&D abilities of key technology related to national security. 
China' s foreign investment sec urity review lays emphasis on well dealing with the 
relations between opening -up and national security, to positively attract foreign 
investment, and does not generalize security review.  
Párrafo 2.38. Menciona que se inició, en 2013 un programa piloto de reforma del régimen de 
inversión extranjera, mediante el establecimiento de la Zona Franca Experimental (Shanghái), el 
cual se amplió en 2015 para abarcar otras tres zonas experimentales en Guangdong, Fujian y 
Tianjin.  
7. Pregunta: ¿Cuáles fueron las conse cuencias y/o resultados del programa piloto? ¿Se prevé su 
continuidad?  
Reply: Between January and May of 2016, 4,060 new foreign -invested enterprises were 
established in the Pilot Free Trade Zones, of which 4,030  were incorporated through 
record -filing, ac counting for 99.9%. Currently, the combined management mode of pre -
establishment national treatment and negative list experimented for foreign investment 
has delivered good results generally, and has considerably improved the level of 
investment facilitati on. The Chinese government will timely summarize the pilot 
experience and get it replicated and spread nationwide as soon as possible.  
Párrafo 3.7. China aplica diferentes procedimientos aduaneros en determinadas zonas, a veces con 
carácter experimental, para determinar su eficacia.  
8. Pregunta: ¿En qué consisten estos procedimientos y cuál es su finalidad?  
Reply:  
1. Since 1990, the State Council has approved in succession the establishment of 6 kinds 
of special customs supervision areas, including bonded zones, export processing zones, 
cross -border industry zones, bonded logistics parks, bonded port areas, and 
comprehensive bonded zones.  
2. Policies applicable to bonded zones are as follows: i. Overseas goods that have 
entered the border are bonded in such  zones; ii. Transactions in the zones are exempted 
from VAT; iii.  Importation of capital construction materials, machines, equipment and 
self-use articles for enterprises in the zones is duty free; iv. Duties are levied on the 
goods exported from the zones  (processed products are dutiable according to the 
imported materials and parts contained in the products); v. Domestic goods that have 
entered the zones and left the border are subject to tax rebate. Policies applicable to 
export processing zones, cross -border industry zones, bonded logistics parks, bonded 
port areas and comprehensive bonded zones are as follows : i. Overseas goods that have 
entered the border are bonded in such zones; ii. Transactions in the zones are exempted 
from VAT; iii. Importation o f capital construction materials, machines, equipment and 
self-use articles for enterprises in the zones is duty free; iv. Goods are subject to duties 
based on their status when exported from the zones; v. Domestic goods that have 
entered the zones are sub ject to tax rebate.  
3. According to the requirements under the Guiding Opinions of the State Council on 
Promoting Scientific Development of the Special Customs Supervision Areas (Guo Fa 
[2012] No.  58) and the Notice of the General Office of the State Coun cil on Printing and 
Publishing the Accelerated Integration and Optimization Proposal of Special Customs 
Supervision Areas (Guo Ban Fa [2015] No.  66), the existing export processing zones, 
bonded logistics parks, cross -border industry zones, bonded port are as, and qualified 
bonded zones will be gradually integrated into comprehensive bonded zones. The newly -WT/TPR/M/3 42/Add.1  
 
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  established special customs supervision areas are uniformly named  comprehensive 
bonded zones.  
4. So far, the State Council has approved the establishmen t of 128 special customs 
supervision areas.  
Párrafo 3.11. El Arancel de China comprende tipos NMF, tipos arancelarios "de acuerdo", tipos 
arancelarios preferenciales especiales, tipos arancelarios generales y tipos aplicados dentro de 
contingentes arancel arios. Además, se aplican tipos arancelarios provisionales, que suelen ser 
inferiores a los tipos NMF, durante un período especificado (normalmente un año).  
9. Pregunta: ¿En qué consisten los aranceles  provisionales ? ¿Cuál es su finalidad? ¿A qué 
producto s se aplica?  
Reply: The interim duty mentioned herein shall be the interim import duty rate of China; 
it is temporarily applicable to certain imported goods and is mainly determined based on 
the actual national economic development needs and the macro -econ omic policy 
orientation, with the purposes of reducing the duty as appropriate and encouraging the 
importation of advanced equipment, key parts, energy and resource products to meet 
the need of domestic industry development.  
Párrafo 3.29. De conformidad c on el artículo 16 de la Ley de Comercio Exterior, las importaciones 
de productos agrícolas, de origen animal y pesqueros también se pueden restringir cuando las 
circunstancias lo exijan.  
10. Pregunta: ¿Bajo qué circunstancias las importaciones de estos pro ductos pueden ser 
restringidas? ¿En qué consiste esta restricción? ¿Cuál es la base legal en los acuerdos de la OMC 
que permiten esta restricción?  
Reply: Please refer to Article 16 of the Foreign Trade Law of China. Related laws of China 
are in compliance with the WTO rules . 
Párrafo 3.30. En 2015 se impusieron 40 prohibiciones temporales por motivos sanitarios, 
principalmente respecto de productos de origen animal procedentes de países europeos.  
11. Pregunta: ¿Cuáles fueron los motivos por los que se impusi eron las prohibiciones? ¿A qué 
productos? ¿Por cuánto tiempo?  
Reply: In 2015, China issued three epidemic prohibitions based on the epidemic 
situations of animals in relevant European countries to prohibit the export of relevant 
animals and animal products  into China. The enforcement duration of the prohibitions 
depends on the following: the epidemic situations in the relevant countries have been 
eliminated and effective controlled. Upon notification to and recognition by OIE, an 
application has been submit ted to the General Administration of Quality Supervision, 
Inspection and Quarantine (AQSIQ) of China for lifting the prohibition. Upon evaluation 
by AQSIQ that the epidemic situation elimination conditions are met, the time to lift the 
prohibition will be published.  
Párrafo 3.60. Indica que se pueden elaborar normas empresariales para una empresa cuando no 
existen normas nacionales, de ramas de producción/sectoriales o locales.  
12. Pregunta: ¿Podrían explicar en detalle en qué consiste el procedimiento par a la elaboración de 
dichas normas, las circunstancias bajo las cuáles de desarrollan y sus implicancias para los 
productos importados? ¿Podrían brindar ejemplos?  
Reply: According to the Standardization Law, in order to improve the product quality and 
make technical progress, the Chinese government encourages enterprises to formulate 
enterprise product standards that are stricter than the national standards, industrial 
standards and local standards. The enterprise standards are formulated by the 
enterprises based on their own needs, only applicable to the enterprises themselves as 
the basis for production organization.  WT/TPR/M/3 42/Add.1  
 
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  Párrafo 3.70. Indica que China se está esforzando para facilitar la integración y optimización de las 
normas nacionales, industriales y local es obligatorias a fin de reducir el número de normas.  
13. Pregunta: ¿Podrían explicar qué acciones concretas se están llevando a cabo?  
Reply: The integration and simplification of mandatory standards is one of the important 
measures for China to deepen its  standardization reform. With regard to the standard 
system, the existing mandatory national standards, industrial standards and local 
standards will be gradually integrated into mandatory national standards. With regard 
to the standard scope, mandatory na tional standards will be strictly limited to the 
protection of personal health, life and property safety, national security and biological 
environment safety, and meeting the basic social and economic management 
requirements. With regard to the standard ma nagement, relevant departments under 
the State Council are responsible for the proposing, drafting organization, opinions 
soliciting, technical review, implementation and supervision the mandatory national 
standard projects. The competent standardization d epartment under the State Council is 
responsible for the unified filing and numbering of the mandatory national standards, 
and their notification according to the rules of WTO; the mandatory national standards 
are issued by the State Council or with its ap proval and authorization. Supervision, 
inspection and administrative law enforcement will be intensified based on the 
mandatory national standards. The texts of the mandatory national standards will be 
made available to the public free of charge. The stati stical analysis report system 
regarding the implementation of the mandatory national standards will be established.   
Párrafo 3.93. Los exportadores deben cumplir los requisitos establecidos en el Catálogo de 
mercancías de importación y exportación sujetas a inspección reglamentaria, que se modifica cada 
año para agregar o eliminar productos, según sea necesario para proteger la salud de las personas 
y los animales, el medio ambiente y la seguridad nacional, así como para promover un crecimiento 
constante de  las exportaciones y ajustar la estructura de las mismas.  
14. Pregunta: ¿De qué manera se puede acceder al Catálogo?  
Reply: Please visit the website of AQSIQ at : http://tgyws. aqsiq.gov.cn/xxfw/ 
fjml/201504/ t20150403_435864.htm .  
Párrafo 3.107. La más reciente notificación a la OMC sobre subvenciones a la exportación, en la 
que China indicó que no mantenía ni había introducido subvenciones a la exportación para los 
productos a grícolas, corresponde al año 2012.  
15. Pregunta: ¿Tiene pensado el gobierno de China actualizar su notificación? ¿Se aplicaron 
subvenciones con posterioridad al año 2012?  
Reply: China attaches great attention to and has seriously implemented its notificati on 
obligations under the WTO agreement. China will update its notifications as required by 
the WTO rules.  
Párrafo 3.112. Los créditos a la exportación para el comprador consisten en préstamos concedidos 
en yuan o divisas a prestatarios extranjeros, mientra s que los créditos a la exportación para el 
vendedor consisten en préstamos en yuan o divisas otorgados a empresas nacionales que 
exportan embarcaciones, equipo, productos electromecánicos, productos agrícolas, productos 
culturales y servicios.  
16. Pregunt a: ¿Podrían brindar más detalles sobre las características de estos créditos y las 
condiciones requeridas para solicitarlos?  
Reply: Export buyers credit refers to the loans in domestic currency and foreign 
currencies provided by the Export -Import Bank of C hina (Exim bank) to the overseas 
borrowers to facilitate the export of Chinese products, technologies and services; export 
sellers credit refers to the loans in domestic currency and foreign currencies provided by 
the Exim bank to the domestic enterprises to export ships, equipment, mechanical and 
electrical products, agricultural products, cultural products and services.  WT/TPR/M/3 42/Add.1  
 
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  Any enterprises that have been registered with the administration for industry and 
commerce in China and have independent legal person c apacity, and overseas legal 
persons recognized by the Exim bank could apply for export credit facilities. The 
borrower shall meet the following conditions: with good operation and management 
status, financial positions and credit rating, and the ability to  repay the loan principal 
and interest; the home country of the borrower and the projects have stable economic 
and political conditions; the borrower shall have sound economic and social benefits; the 
borrower shall have self -owned funds to a certain propo rtion; when necessary, the 
borrower purchases corresponding export credit insurance policy; and the borrower 
provides repayment guarantee acceptable to the Exim bank.  
Párrafo 3.120. Durante el período examinado, China siguió concediendo incentivos a difer entes 
sectores o industrias. Algunos de esos planes de incentivos tienen, entre otros fines, los de 
modernizar los métodos de producción en sectores que utilizan tecnologías obsoletas; promover el 
desarrollo en zonas remotas y reducir las diferencias de in gresos entre regiones.  
17. Pregunta: ¿Podría China describir con mayor detalle las características de los incentivos 
concedidos?  
Reply: The measures to promote industry upgrading focus on the combination of market 
orientation and government efforts. On one  hand, the market -oriented practice is 
adopted to give play to the decisive role of the market in resource allocation, and the 
role of enterprises as major market players, promote reasonable flow of production 
factors through the competition mechanism, and  facilitate the industry layout 
optimization and orderly industry transfer. On the other hand, the government has 
improved the investment environment, standardized the market order and promoted fair 
competition by further streamlining administration and de legating power to the lower 
levels.  
Measures to promote the development of remote areas and bridge the regional income 
gap bear the following features: 1. giving play to the comparative advantages of remote 
areas; 2. Focusing on transferred payment to lagg ing-behind remote areas, and 
promoting equitable access to basic public services; 3. Emphasizing capacity building to 
help lagging -behind remote areas to cultivate self -development abilities and new 
economic growth points.   
Párrafo 3.122. Indica que China no ha facilitado a la OMC información sobre medidas de ayuda 
adoptadas a nivel subcentral. Sin embargo, las autoridades han indicado que están preparando 
una notificación de los programas que se mantienen a ese nivel.  
18. Pregunta: ¿Cuándo se presentará la  notificación mencionada?  
Reply: China has submitted the Notification on Subsidies at Sub -central Government 
Level for 2001 -2014 to the WTO prior to this review. This is the first Notification on 
Subsidies at sub -central government level from China. For de tails, please refer to 
relevant notification document.  
Párrafo 3.124. Según se indicó en el último examen de 2014, además de los programas notificados 
por China, hay otros programas de ayuda y otros medios de apoyo a los diferentes sectores. Sin 
embargo, e n el contexto del presente examen, no se ha facilitado información relativa a esos 
programas específicos o políticas industriales de China.  
19. Pregunta: ¿Cuál es la razón por la cual China no ha facilitado información al respecto?  
Reply: China does not ag ree that there are other support programmes and other means 
to support different industries and the industrial subsidy information is not provided to 
the Secretariat for this review period in the Trade Policy Report for this review. China 
noted that the te xt in paragraph  3.124 comes from paragraph 3.125 of the 2014 Report 
by the Secretariat. At that time, China had not submitted the most recent notification on 
subsidies. However, in 2015, China already submitted its notification on subsidies at 
central gove rnment level for 2009 -2014, and before the review meeting, its first WT/TPR/M/3 42/Add.1  
 
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  notification on subsidies at sub -central government level, covering 14  years from 2001 
to 2014. These notifications contain the subsidy policies that are required to be notified 
to the WT O according to China' s understanding of the relevant definitions and rules 
requirements of the SCM Agreement. It 's a pity that the relevant paragraphs of Report 
by the Secretariat failed to be updated in light of the above -mentioned important latest 
develo pments.  
Párrafo 3.126. En los planes quinquenales sectoriales y los planes provinciales se establecen 
directrices normativas y políticas industriales, pero no se enuncian las medidas de aplicación 
concretas.  
20. Pregunta: ¿Podría China brindar información sobre estos planes y normativas?  
Reply: Generally, the local five -year plan will be released to the public, which may be 
available on the website of relevant local governments. The plan mainly aims at 
mapping out  development blueprint and specifying the ma cro-objectives for the 
economic and social development, and generally do not involve specific policies and 
measures.  
Párrafo 3.177. La parte de la producción correspondiente a las empresas públicas del sector 
industrial se redujo del 28,2% en 1998 al 26,6 % en 2010 y al 22,3% en 2014. También se ha 
reducido el número de subsectores manufactureros en los que las empresas públicas 
representaban una parte mayoritaria de los ingresos.  
21. Pregunta: ¿Podría China explicar a qué se debe las reducciones mencionada s en el párrafo?  
Reply: China is promoting resources allocation to realize maximized benefit and 
optimized efficiency based on market rules, market price and market competition, as 
required by the Decisions of the Third Plenum of 18th CCP.  
Párrafo 3.206. El informe refiere a cambios en la legislación china sobre derecho de propiedad 
intelectual.  
22. Pregunta: ¿Podría China explicar en qué consisten estos cambios?  
Reply: For example, China has revised several patent related departmental rules. The 
State Int ellectual Property Office has revised the Patent Examination Guidelines, the 
Measures for the Administration of the Patent Agency, and the Measures for Patent 
Administrative Law Enforcement, etc.  
Párrafo 3.212. Se refiere a las solicitudes de patentes ext ranjeras o internacionales referida a 
invenciones o modelos de utilidad con contenido  sustancial  en territorio chino, así como en  función 
del interés nacional. Además del examen de confidencialidad, el contenido  sustancial  lo define caso 
por caso y puede p resentar limitaciones adicionales.  
23. Pregunta: Si bien deciden examinar cada caso concreto: ¿qué pautas en cuanto a la 
interpretación de  contenido sustancial  pueden facilitarse a fin de brindar algún grado de 
previsibilidad jurídica? ¿Qué significa  en función del interés nacional?  
Reply: The scope of the substantial content is defined on a case -by-case basis according 
to specific patent claims and specifications. Please refer to China' s relevant science and 
technology development plans for the national ke y projects.  
Párrafo 3.221. Trata sobre el régimen de impugnación de registro de marca de fábrica o de 
comercio y su revocación. Allí informa límites al plazo para la impugnación y que ella no es 
aplicable en supuestos de registro abusivo.  
24. Pregunta: ¿Q ué plazo dispone para estas acciones y qué se entiende por  registro abusivo  en la 
legislación china vigente?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Article 45 of the Trademark Law sets forth that: should the registered trademarks 
violate the provisions of Paragraphs II and III of Article  13, Article 15, Paragraph I of 
Article 16, Article  30, Article 31 and Article 32, the priority right owner or the interested 
parties may request the Trademark Review and Adjudication Board to announce such 
registered trademarks null and void within 5 year s from the trademark registration date. 
In case of malicious registration, the owners of the well -known trademarks are not 
subject to such limitation of five years. China' s new Trademark Law implemented since 
May 1st, 2014 has made relevant modifications o n malicious registration. With regard to 
malicious registration and mass malicious registration of the prior trademarks of others, 
the priority right owner may claim their own rights through objection procedure, and 
request the Trademark Office to make dec ision on rejection of the objected trademarks. 
If the opponent holds that his/her prior unregistered trademark is registered illegally, 
he/she may apply to the Trademark Office for objection according to Articles 15 and 33 
of the Trademark Law.  
Párrafo 3. 230. Afirma que la Administración General de Calidad, Supervisión, Inspección y 
Cuarentena de China (AQSIQ) formuló, en 2015, medidas relativas a la protección de las 
indicaciones geográficas extranjeras de productos.  
25. Pregunta: ¿Cuáles son las medidas concretas?  
Reply: Specific protection measures in connection with geographical indications also 
include the Measures for the Registration and Administration of Collective Trademarks 
and Certification Trademarks formulated by the SAIC.  
Párrafo 4.90. Se ref iere a la Zona Franca Experimental (Shanghái) de China (CSPFTZ) de 2013 que 
autoriza, desde 2015, a instituciones médicas de propiedad mixta aunque con participación 
extranjera mayoritaria.  
26. Pregunta: ¿Qué opciones y límites de participación se presenta n? 
Reply: According to the current legal provisions, foreign investment in medical 
institutions must be made in the form of equity or cooperative joint venture, and foreign 
equity shall not exceed 70%.  
El párrafo 3.78  (y subsiguientes) se refiere a la ley de inocuidad de los alimentos revisada, 
adoptada en abril de 2015, con el propósito de fortalecer el sistema nacional de gestión de la 
inocuidad de los alimentos y exigir más responsabilidad en este ámbito a los productores, 
comerciantes y gobiernos locale s. 
27. Pregunta: ¿Podría China indicar si la misma se basa en los estándares CODEX, OIE y CIPF 
aplicables en la materia o, por el contrario, contiene exigencias mayores a los mismos?  
27. Are the standards for the raw materials based on the food additives r egulations, OIE and 
International Plant Protection Convention the same? [NHFPC, AQSIQ, SFDA] Technology Office of 
the Department of WTO Affairs . 
Reply: The standards for the raw materials based on the food additive norms are 
consistent with the standards o f CAC in principle.  
 WT/TPR/M/3 42/Add.1  
 
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  2  AUSTRALIA  
WT/TPR/ G/342  
2. ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION   
2.3 Adjusting economic structure and transforming development pattern   
2.3.3 Strengthening the protection of intellectual property rights  
Page 8, paragraph 2.23  
1. Could China provide more information on the main features of the "QingFeng action " referred to 
in paragraph 2.2 3? 
Reply: The goal of the QingFeng action is to crack down on the illegal actions of 
exporting infringing and counterfeit  goods, maintain the import and export trading 
order, and promote the healthy development of foreign trade. The time frame is from 
2015 to 2017. According to rough statistics, in the first half of 2016, China Customs have 
seized 4,529 batches of goods duri ng the QingFeng action.  
2.3.3 Strengthening the protection of intellectual property rights  
Page 8,  paragraph s 2.22-2.24  
2. Could China provide more statistical information showing to what degree IPR infringements and 
the manufacturing or selling of counte rfeit commodities have been effectively suppressed?  
Reply: The basic information on the IPR cases dealt with by the People 's Courts in the 
recent three years is as follows. (The following are only the numbers of cases. Cases 
closed do not necessarily mean infringements established.)  
Intellectual property cases dealt with by courts   2013  2014  2015  
First instance civil IPR cases accepted   88,583 95,522 109,386 
First instance civil IPR cases closed   88,286 94,501 101,324 
Patent cases accepted   9,195 9,648 11,607 
Patent cases closed   9,174 9,225 10,182 
Trademark cases accepted  23,272 21,362 24,168 
Trademark cases closed  22,358 21,336 22,289 
Copyright cases accepted  51,351 59,493 66,690 
Copyright cases closed   52,254 59,174 62,822 
Technical contract cas es accepted  949 1,071 1,480 
Technical contract cases closed   908 1,016 1,292 
Unfair competition cases accepted  1,302 1,422 2,181 
Unfair competition cases closed   1,195 1,355 1,802 
Other IPR cases accepted   2,304 2,355 3,093 
Other IPR cases closed  2,211 2,209 2,778 
Second instance civil IPR cases accepted  11,957 13,760 15,114 
Second instance civil IPR cases closed   11,553 13,708 15,025 
In 2014, China Customs seized 24,000 batches of suspected infringing goods, involving 
92 million products. In 2015, China Customs seized 23,000 batches of suspected 
infringing goods, involving 70 million products. Judicial and law enforcement activities 
have effectively curbed IPR infringement and protected the lawful rights and interests of 
the IP owners.  
3. Could Chin a provide statistics on the number of court cases, number of joint operations / crack 
downs and numbers and economic value of seizures over a specific time period (i.e. 5 years)? For 
example, could China provide a graph showing seizures/court cases/operati ons across a few 
years?  
Reply: The basic information on the IPR cases dealt with by the People 's Courts in the 
recent three years is as follows. ( The following  are only the numbers of cases. Cases 
closed do not necessarily mean infringements established.)  WT/TPR/M/3 42/Add.1  
 
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  Intellectual property cases dealt with by courts  2013  2014  2015  
First instance civil IPR cases accepted  88,583 95,522 109,386 
First instance civil IPR cases closed   88,286 94,501 101,324 
Patent cases accepted   9,195 9,648 11,607 
Patent cases closed   9,174 9,225 10,182 
Trademark cases accepted  23,272 21,362 24,168 
Trademark cases closed  22,358 21,336 22,289 
Copyright cases accepted  51,351 59,493 66,690  
Copyright cases closed  52,254 59,174 62,822 
Technical contract cases accepted  949 1071 1,480  
Technical contract cases closed   908 1,016 1,292 
Unfair competition cases accepted  1,302 1,422 2,181  
Unfair competition cases closed  1,195 1,355 1,802 
Other IPR cases accepted  2,304 2,355 3,093  
Other IPR cases closed  2,211 2,209 2,778 
Second instance civil IPR cases accepted  11,957 13,760 15,114  
Second instance civil IPR cases closed  11,553 13,708 15,025  
In addition, in 2014, China Customs seized 24,000 batches of suspected infringing 
goods. In 2015, China Customs seized 23,000 batches of suspected  infringing goods.  
Judicial and law enforcement activities have effectively curbed IPR infringement and 
protected the lawful rights and interests of the IP owners.  
2.3.6 Consolidating and strengthening the foundation for agriculture  
Page 9,  paragraph 2.32 
4. Can China please provide more information in relation to the development of natural gas 
infrastructure in rural areas. How will public investment in natural gas infrastructure be delivered 
in a way which specifically assists agricultural producers?  
Reply: The natural gas mentioned in the government report is purified methane gas 
made from dung or straw, which is different from the natural gas produced in the oil and 
gas extraction. The objective of the infrastructure programs is to transform the 
"polluta nt waste " into useful resources in proper scale. The methane gas can be 
provided to neighbouring area, and the purified natural gas can be supplied through the 
pipeline network to enterprise users or further transported for consumption in the urban 
area.   
2.4 Continuing to Deepen the Reforms Steadfastly   
Page 11,  paragraph 2.38  
5. Australia would welcome an update on the implementation of the 'Draft Negative List for Market 
Access ' trialled in Tianjin, Shanghai, Fujian and Guangdong?  
Reply: According to th e Opinions of the State Council on the Implementation of the 
Market Access Negative List System (Guo  Fa [2015] No. 55), pilots of the Market Access 
Negative List System Reform have been launched on 1 January 2016 in Tianjin, 
Shanghai, Fujian and Guangdong.  The Draft Negative List for Market Access (Trial 
Version), which represents the content of the pilot programs, has been issued (Fagai 
Jingti [2016] No. 442, and can be referred to on the website of the National 
Development and Reform Commission at: www.ndrc.gov.cn ). The four places have also 
developed their own work programs. Going forward, China will assess and study the 
work in the piloting areas and the problems emerging from their operations, and start 
the first r evision of the Draft Negative List for Market Access, in coordination with the 
work on amending laws, sorting out State Council documents, and streamlining 
administration and delegating power.  WT/TPR/M/3 42/Add.1  
 
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  Page 11, paragraph 2.42  
6. China has abolished verifications fo r foreign investment projects except for those involving 
sensitive countries and regions and sensitive industries. What are those sensitive countries and 
regions? Is information on which countries and regions are sensitive publicly available?  
Reply: Accord ing to the Administrative Measures for Verification and Registration of 
Overseas Investment Projects (NDRC Order No. 9 of 2014), sensitive countries and 
regions refer to countries with no diplomatic relations with China or under international 
sanctions, or  countries and regions in battle or in turmoil; and sensitive industries refer 
to basic telecommunications operations, cross -border water resources development and 
utilization, large -scale land development, power mains and grids, news media, etc.  
Page 12, paragraph 2.46  
7. This paragraph refers to demonstrations and pilots on mixed -ownership reforms; fulfilling the 
functions and rights of boards of directors; and market -oriented recruitment of managers and the 
professional manager system. What were the outc omes of those demonstrations and pilots, and is 
China considering implementing broader reforms as a result?  
Reply: In September 2015, the State Council distributed the Opinions on State -owned 
Enterprises' Development of Mixed Ownership Economy (Guo Fa [201 5] No.  54), further 
identifying the general requirements, main principles, major tasks and supporting 
facilities for SOEs' development of mixed ownership economy. Industries of electricity, 
oil, natural gas, railway, civil aviation, telecommunications, mil itary industry, etc., in 
which SOEs hold a dominate position, are key fields to promote the development of 
mixed ownership economy, and various kinds of capitals (including foreign capital) are 
encouraged to participate in the reform of mixed ownership of SOEs. In terms of pilot 
reform of mixed ownership, in June 2014, China National Building Materials Group 
Corporation and China National Pharmaceutical Group were chosen as the pilot 
enterprises of mixed ownership reform. In terms of implementing the functi ons and 
powers of board of directors, China pushed forward the building of standard board of 
directors with most directors being external ones. Currently, 87 of 106 SOEs have 
established standard board of directors and the boards of some enterprises are 
authorized with responsibilities of planning medium - and long -term development 
strategies and selecting and recruiting senior administrative officers. In the terms of the 
market -oriented systems of selecting and recruiting administrators and professional 
managers, the boards of directors of 5 SOEs adopted market -oriented approaches and 
recruited 14  administrators and managers. For the next step, China will continue deeply 
promoting the reform of SOEs.  
3. TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
3.1 Trade and Investment Development  
Page 17, paragraphs 3.12 -3.15 
8. Is China taking any specific measures to boost inwards and outwards foreign direct investment? 
If so, could China describe those measures?  
Reply: Regarding inward direct investment, the C hinese Government is promoting a new 
round of high -level opening up, improving investment environment and facilitating 
investment. In terms of opening up industries, the Catalogue for the Guidance of Foreign 
Investment Industries issued in 2015 has largely  decreased access restrictions, focused 
on the opening up of the service industry and the general manufacturing industry. The 
number of items listed in the restrictive category has decreased by 50%, items listed in 
the category with requirements on the pro portion of shares has  decreased by 40%. As 
for facilitating trade and investment, the new government has been working on 
streamlining administration and delegating power, combining delegation and regulation, 
and optimise service reforms. The State Council has reduced the number of items that 
require administrative approval by more than 1/3, items that require pre -approval in 
business registration by 85%, items that require qualification and certification by 44%. 
The system of general filings and limited app roval for foreign investment project WT/TPR/M/3 42/Add.1  
 
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  management is being fully implemented. Over 95% of the foreign investment projects 
are managed through filing.  
In terms of outwards investment, China follows the principle of 'government as guider, 
enterprise as major p layer and market as operation platform ', encourages businesses to 
engage in outwards investment based on their needs, actively get involved in economic 
growth of host countries for mutual benefit. The Chinese government pushes forward 
such investment throu gh streamlining administration and delegating power to lower 
levels. Measures include: 1. Streamline foreign investment review and approval 
procedures in accordance with Administrative Measures Outbound Investment  by the 
Ministry of Commerce; 2. Provide pu blic service products including Guidance for 
countries (regions) of Outwards Investment Partnership; 3. Release risk alert timely for 
better risk control of businesses.  
9. Is China focussing on any particular sectors in its efforts to boost inwards and ou twards foreign 
direct investment?  
Reply: China welcomes foreign investment in areas including new agricultural 
technology, comprehensive agricultural development and energy, transportation, and 
key industrial raw material; hi -tech technology, advanced appl ied technology, new 
equipment and material that improve product performance, economic benefit or 
insufficient domestic productivity; new technology and equipment, energy -saving raw 
material, integrated utilization of resources and renewable resources, etc.  
In terms of outwards investment, China encourages domestic businesses to engage in 
investment based on their strength, strategic orientation and need of host countries, as 
well as market law and international business practice, including infrastructure, 
interconnection projects and overseas productivity partnership for mutual benefit and 
common growth of countries involved.  
3.2 Promoting foreign trade innovation and development   
Page 19,  paragraph 3.23  
10. Could China please provide an update on the Inte rim Regulation Program on Cross -Border 
E-Commerce Retail Importation Taxation Policies recently released by China 's Ministry of Finance?  
Reply: In order to create a fair and impartial market and encourage sound development 
of cross -border e -commerce, the M inistry of Finance, General Administration of 
Customers, and State Administration of Taxation issued Notification on Tax Policy for 
Import Tax of Retail Goods of Cross -border E -commerce  ([2016] No. 18 by MF, GAC and 
SAT) on March 24, 2016. In late May, Gen eral Administration of Customers and State 
Quality Inspection Administration issued notification to require a one -year transition 
period for those under regulation in Imported Retail Goods of Cross -border E -commerce  
(including 2nd batch).  
Page 19,  paragra ph 3.24  
11. Could China please provide an update on the pilots on innovation and development of trade in 
services in 15 provinces to explore the systems and mechanisms to facilitate development of trade 
in services? What sectors is the pilot focusing on? How do the pilots operate in practice?  
Reply: The State Council approved establishment of innovative development of service 
trade pilots in 15 regions including Tianjin in February, 2016, and departments involved 
formulated pilot scheme. Currently the 15 r egions are in different development stages 
with various industrial features and strengths. Thus their focuses are different as well. 
Local governments of pilots are the key entities responsible for exploring management 
system, promotion mechanism, policy p ackage and regulation mode to build a law -
oriented, international and convenient business environment and provide replicable 
experience for projects afterwards.  WT/TPR/M/3 42/Add.1  
 
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  3.3 Paying equal attention to the strategies of FDI attraction and going global  
Page 21,  parag raph 3.37 
12. Could China please provide an update on the new measures of 'financial opening up ' 
implemented in the pilot free trade zones? What were the outcomes and is China considering 
broader reforms as a result? What future plans are there for financi al services liberalisation in the 
free trade zones?   
Reply: China has launched a series of financial opening up pilots in the four pilot free 
trade zones of Shanghai, Tianjin, Guangdong and Fujian. There are new measures in 
areas including banking, insuran ce, and securities. For details, please refer to the official 
websites of the four pilot FTZs. To make it easier for the Members to understand, China 
shares a summary on RMB business as follows:  
First, further improving the policy framework on financial op ening up and innovation for 
pilot FTZs. In October 2015, China printed and issued the Plan on Further Advancing 
Financial Opening Up and Innovation Pilots in China (Shanghai) Pilot Free Trade Zone 
and Accelerating the Construction of Shanghai International  Financial Center to conduct 
pilot on RMB convertibility under capital account in the pilot FTZ and gradually enhance 
the convertibility under capital account. In December 2015, China issued guiding 
opinions on providing financial support to the constructi on of pilot FTZs in Tianjin, Fujian 
and Guangdong to facilitate various financial reform and innovation tasks in the pilot 
FTZs. Second, further expanding the cross -border use of RMB by providing written 
replies to the applications for the cross -border use  of RMB submitted by the pilot FTZs in 
Guangdong, Tianjin and Fujian. Third, steadily promoting the opening up of the financial 
markets in the pilot FTZs. Since 2015, PBOC has successively approved the National 
Interbank Funding Center, the Interbank Marke t Clearing House Co., Ltd. and Bank of 
China through written replies to issue RMB bonds, offer financial asset transaction 
services using RMB for pricing and account settlement and issue over -the-counter bonds 
in China (Shanghai) Pilot Free Trade Zone so a s to steadily press ahead with financial 
opening up. Fourth, facilitating pilots on management over the entry of foreign -funded 
credit reporting agencies in the pilot FTZs.  
Achievement: First, the copying and popularization of cross -border RMB businesses. 
PBOC carries out pilots on expansion of the scope of cross -border use of RMB in pilot 
FTZs and successively popularizes a number of the pilots throughout the country 
including RMB settlement in personal merchandise trade and service trade, two -way 
cross -border RMB cash pooling of multinational enterprise groups, cross -border RMB 
centralized collection and payment under the current account and cross -border 
e-commerce RMB settlement. Second, the copying and popularization of the full -calibre 
macro prudential management of cross -border financing of integrated local and foreign 
currencies. In February 2015, based on free trade accounts, PBOC first conducted pilot 
on the full -calibre macro prudential management of cross -border financing of integrated 
local and fo reign currencies in China (Shanghai) Pilot Free Trade Zone to establish and 
improve the macro prudential management system of external debts. In April 2016, the 
policy on the full -calibre macro prudential management of cross -border financing was 
popularize d throughout the whole country. Third, the copying and popularization of 
management over the entry of foreign -funded credit reporting agencies. PBOC and the 
Ministry of Commerce issued an Announcement of People 's Bank of China and Ministry of 
Commerce in J anuary 2016 to apply the principle of national treatment to foreign -
funded credit reporting agencies, allow the establishment of foreign -funded credit 
reporting agencies throughout the country, unify the entry requirements and 
management standards on domes tic and foreign credit reporting agencies, conduct 
approval management on foreign -funded personal credit reporting agencies and conduct 
record management on foreign -funded enterprise credit reporting agencies.  
Next, the Chinese Government will continue to press ahead with financial opening up 
and innovation in pilot FTZs; support the financial industry to adopt the 
pre-establishment national treatment and negative list management system for foreign 
funds and, according to the principles of vigorous yet stea dy efforts, rhythm controlling, 
macro prudence and controllable risks, hold on to the bottom line of preventing 
systematic or regional financial risks, and press ahead with various financial opening up WT/TPR/M/3 42/Add.1  
 
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  measures in a reliable and orderly fashion; reasonably  bring the rhythm and progress 
under control and implement convertibility under capital account in the pilot FTZs in a 
reliable and orderly fashion.  
3.4 Constructing Economic and Trade Partnerships Based On Mutual Benefit And 
Win-Win  
3.4.2 Safeguarding th e multilateral trading system with concrete actions  
Page 23,  paragraph 3.50  
China 's report notes that China has actively responded to the Aid for Trade initiative of the WTO.  
13. Can China outline if it is providing any aid for trade to assist developing  countries and LDCs 
implement the WTO Agreement on Trade Facilitation?  Is China providing any bilateral assistance or 
multilateral assistance through other donor organisations?  
Reply: As the biggest developing country, the Chinese Government will, as its c apacity 
allows, provide various forms of aid for trade (including contents relevant to trade 
facilitation) to other developing countries and the least developed countries within the 
framework of South -South cooperation. In addition, China is actively consi dering 
providing donation to the Trade Facilitation Agreement Facility (TFAF) so as to help the 
developing members and the least developing countries facing implementation 
difficulties to better conduct needs assessment and improve implementation capacity,  
and promote the Agreement on Trade Facilitation to come into effect for implementation 
at an earlier date.  
WT/TPR/S/342  
1 ECONOMIC ENVIRONMENT   
1.1 Recent Economic Developments   
Page 16,  paragraph 1.2  
14. Could China provide information on how it is stri king the balance 'between preserving stable 
economic growth, promoting reform, adjusting the economic structure, improving people 's living 
standards, and preventing risks '? 
Reply: As China is in a stage where healthy development may only be maintained 
through economic transformation and upgrading, it is very important to make overall 
planning on preserving stable economic growth, adjusting the economic structure and 
promoting reform. On the one hand, economic growth will be maintained within a 
reasonable ra nge through steady macroeconomic policies. On the other hand, while 
firmly grasping the main contradiction of supply -side structural reform and deepening 
reform, China will vigorously facilitate economic restructuring and optimization and lay 
a solid found ation for sustained and healthy economic development. Meanwhile, China 
will invest more resources in people 's livelihoods, implement more livelihood programs 
and try to enable all the people to share the results of development. We will also pay 
close atten tion to various risk factors and take active measures to do our utmost to 
avoid systematic risks that may exert major impacts on steady economic growth.  
1.2 Fiscal Policy and Structural Refor m 
Page 19, Table 1.3 Government Operations  
A tariff is levied on imports from WTO members of +15.1 % for agricultural products and +9.0% 
for non -agricultural products (see Table 3.2 on p. 50).  Value Added Tax (VAT) is also applied to 
imports at either 13% or 17% (see  paragraph 3.1.5, p. 53). However, as indicated on pp.  76-77: 
VAT rebate of exports of the majority of final goods are either ( -)15% or ( -)17%; Textiles and 
articles ( -17%), Footwear ( -15%), Machinery ( -17%) and Transport Equipment ( -17%).  While 
paragraph  3.2.4 indicates that rebates are usually lower than VA T paid, Australia would like to 
clarify how this applies to imported Australian intermediate inputs e.g. wool, specialised 
cloth/materials, electronic components and mechanical parts etc. for incorporation/assembly into 
Chinese final products which receive  export VAT rebates at the highest levels (i.e. 15% and 17%).   WT/TPR/M/3 42/Add.1  
 
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  15. Can China clarify whether Australian intermediate inputs imported into China for incorporation 
into final outputs are subject to an import VAT, and whether the export VAT rebate on Chinese 
final manufactures also include the VAT paid on imported inputs?  
Reply: Among the intermediate inputs imported into China from Australia, except for the 
commodities  involved in processing trade that are allowed to declare tax returns, the 
rest intermediate  inputs need to pay import VAT. When they are exported upon being 
processed into finished products, the import VAT is also covered in VAT refund.  
2 TRADE AND INVESTMENT REGIME  
2.3 Participation in the World Trade Organization  
Page 36,  paragraph 2.17 
The Se cretariat report notes that China submitted its notification of Category A commitments 
under the Agreement on Trade Facilitation (TFA), and on 4 September 2015 China ratified the TFA.  
16. On the assumption that the WTO TFA will enter into force shortly, ca n China outline the 
expected timeframes to implement provisions not designated as Category A (i.e., Articles 7.6, 
10.4, 10.9 and 12)?  When does China intend to notify its Category B commitments?   
Reply: Currently, China is actively studying and assessing t he implementation dates of 
Category B measures, and will submit a notification as required by the TFA.  
Page 36,  paragraph 2.19 
17. Australia welcomes the advice in the Secretariat report that China has improved its record of 
notifications to the WTO in a range of areas.  Can China please advise when it expects to provide 
the outstanding notifications on Domestic Support identified in the Secretariat report?  It is 
important that China provide such information, especially given its "four subsidies" programs 
(valued at RMB 262 billion in 2014), which include, among a range of other subsidies, direct 
payments to farmers for a range of important agricultural products i.e. rice, wheat and corn.  
Reply: China has always attached great importance to the principle of transparency 
which is a fundamental principle of the WTO. In the field of agriculture, China has 
generally done well in performing its transparency obligations. According to the 
statistics of WTO Secretariat, overdue notifications are quite common in the f ield of 
agriculture, and China has fewer overdue notifications than other main members. As for 
the notification regarding domestic support, China is preparing its notification regarding 
domestic support after 2010 and will submit it upon completion as soon  as possible.  
It should be noted that agricultural subsidy is limited in China, and the subsidy must be 
provided in the approach that match the local conditions best. As China is a vast country 
with a large agricultural sector, there are huge differences in agricultural production 
conditions among different regions, there is a large agricultural population and wide 
variety of agricultural products, therefore, it is almost impossible to make one policy 
that fits for all regions, and local subsidy policies o ften have their own characteristics. 
Such situation makes it very difficult to handle the sorting and calculation of support 
measures in a simple and unified manner.  This has increased our workload and working 
hours in collecting information on agricultura l subsidy and preparing the notification. 
We hope that Members may understand this.  
18. Can China also advise when it intends providing notifications on the already implemented 
changes and updates to laws and regulations in different areas, and the creati on of new agencies, 
also identified in the Secretariat 's report?  
Reply: China attaches great importance to and earnestly fulfills the notification 
obligations under the WTO agreements. Since the last review, China has stepped up its 
efforts in this respect , and submitted to the WTO Notification on Subsidies at central 
government level for 2009 -2014, Notification on Subsidies at sub -central government 
level for 2001 -2014, the Notification on State Trading for 2003 -2014, Notification on 
Quantitative Restricti ons for 2010 -2014, Notification on Domestic Support (Table DS:1 WT/TPR/M/3 42/Add.1  
 
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  and the relevant Supporting Tables) for 2009 and 2010, Notification on Export Subsidy 
Commitments (Table ES:1) for 2013 and 2014, Notification on Imports under Tariff 
Quotas (Table MA:2) for 2 013 and 2014, as well as 135 TBT notifications and 401 SPS 
notifications, etc. China has also submitted to the WTO notifications on the change of 
the authorities administrating trade remedy measures, and on non -preferential rules of 
origin, regarding chang es and updates of laws and regulations and the creation of new 
agencies. Australia may, through the member website, search the notifications 
submitted by China during the period under review. China will continue fulfilling the 
notification obligations as r equired by the WTO agreements.  
19. Could China explain the reason for using the global  COAL Standard Coal Trading Agreement 
measure rather than the relevant and internationally recognised ISO standard (ISO 13909) under 
notification G/TBTN/CHN/1057 listed i n Table A2.1?  
Reply: 5.2.2 of Inspection Procedures for Imported and Exported Coal (SN/T 2952) 
formulated by the AQSIQ explicitly listed ISO 13909 as the sampling standard.  
In the global  COAL Standard Coal Trading Agreement , most of the indicators prescrib ed 
in the Trading Agreement such as St, d, Qnet.ar and Ad (e.g. St,  d <1%, lower 
Qnet.ar>23MJ/kg; Ad<16%,  some Ad<23%) are within the prescribed range of the 
quality indicators of lignite (Qnet.ar≥16.5MJ/kg, Ad≤20% ，St, d≤1%) and other types 
of coal (Qnet.a r≥18MJ/kg, Ad≤30%, St,d≤2%)  subject to long -distance transportation 
within the territory of China prescribed by the Interim Measures. This means that the 
Interim Measures for the Administration of Commercial Coal Quality (the "Interim 
Measures ") is consist ent with global GOAL. As a standard for mechanical sampling, ISO 
standard (ISO 13909)  has nothing to do with the requirements of the indicators on coal 
quality.  
20. Could China provide details of how the global  COAL Standard Coal Trading Agreement measure 
is applied to the testing of China 's domestic coal under notification G/TBTN/CHN/1057 listed in 
Table A2.1 ? 
Reply: By mentioning the Standard Coal Trading Agreement, the notification simply 
explained the consistency between the coal quality indicators in t he Interim Measures 
and the indicator requirements of global Coal.  
As there are no specific mandatory requirements on the testing of such quality 
indicators as Ad, St, d, Qnet,  ar, Hgd, Pd, Asd, Cld and Fd prescribed by the Interim 
Measures, they may be te sted based pm existing domestic testing standards and 
internationally accepted testing standards as follows:  
Domestic testing standards: Ad - Proximate analysis of coal (GB/T212 -2008), Proximate 
analysis of coal by instrumental method (GB/T30732 -2014); St,  d - Determination of 
total sulfur in coal (GB/T214 -2007), Determination of total sulfur in coal by IR 
spectrometry (GB/T25214 -2010); Qnet,  ar - Determination of calorific value of coal 
(GB/T213 -2008); Hgd - Determination of mercury in coal (GB/T16659 -2008 ); Pd - 
Determination of phosphorus in coal (GB/T216 -2003); Asd - Determination of arsenic in 
coal (GB/T3058 -2008); Cld - Determination of chlorine in coal (GB/T3558 -2014); Fd - 
Determination of fluorine in coal (GB/T4663 -2014).  
International testing stand ards: Ad - Solid mineral fuels - Determination of ash 
(ISO1171: 2010); St,  d - Solid mineral fuels - Determination of sulfur by IR spectrometry 
(ISO19579 ：2006), Determination of sulfur phosphorus arsenic and chloride in coal for 
import and export - X-ray f luorescence spectrometric method (SN/T2697 -2010); Qnet,  
ar - Solid mineral fuels - Determination of gross calorific value by the bomb calorimetric 
method and calculation of net calorific value (ISO1928: 2009); Hgd - Determination of 
mercury in minerals - General rules of direct mercury determining with solid injection 
method (SN/T3511 -2013), Standard test method for total mercury in coal and coal 
combustion residues by direct combustion analysis (ASTMD6722 -11), Simultaneous 
determination of arsenic and merc ury content in coal -hydride generation -atomic 
fluorescence spectrometry (SN/T 3521 -2013); Pd - Standard test method for major and WT/TPR/M/3 42/Add.1  
 
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  minor elements in coal and coke ash by X -ray fluorescence (ASTMD4326 -13), 
Determination of sulfur phosphorus arsenic and chlor ide in coal for import and export —
X-ray fluorescence spectrometric method (SN/T2697 -2010); Asd - Simultaneous 
determination of arsenic and mercury content in coal -hydride generation -atomic 
fluorescence spectrometry (SN/T 3521 -2013), Determination of sulfur  phosphorus 
arsenic and chloride in coal for import and export —X-ray fluorescence spectrometric 
method (SN/T2697 -2010), Determination of arsenic,  bromine and iodine in coal and 
coke (SN/T 2263 -2009); Cld - Determination of chlorine content in coal. Part 2:  
Combustion bomb -auto potentiometric titration method (SN/T2087.2 -2011), 
Determination of sulfur phosphorus arsenic and chloride in coal for import and export —
X-ray fluorescence spectrometric method (SN/T2697 -2010).  
21. Could China provide evidence that d omestic coal is also subject to the same standards and 
testing methodologies under notification G/TBTN/CHN/1057 listed in Table A2.1?  
Reply: According to the coal quality criterion of Interim Measures, the quality and 
quality standards of domestic and impo rted coals are the same, which means the test 
can be conducted according to China's applicable test standards and general 
international testing standards (as above). Currently, the above -mentioned standards 
are applied to the quality examination and testin g during the production, processing, 
storage and transportation, sales, importing and use.  
2.4 Regional Trade Agreements  
Page 37,  paragraph 2.22, footnote 22  
22. Could China provide an outline of the policy reasons for, and the commitments included,  in the  
Closer Economic Partnership Arrangements (CEPA) Agreement between mainland China and 
Hong Kong, China to achieve liberalization of trade in services in Guangdong (18 December 2014) 
and the CEPA Agreement between mainland China and Macao, China to achieve liberalization of 
trade in services in Guangdong?   
Reply: The Agreement between the Mainland and Hong Kong/Macau on Achieving Basic 
Liberalization of Trade in Services in Guangdong (the Agreement) was signed on 
December  18, 2014, under the framework of the  Mainland and Hong Kong/Macau Closer 
Economic Partnership Arrangement (CEPA). The Agreement is the first of its kind 
committed by the Mainland China to using pre -establishment national treatment and a 
negative list in setting out liberalization measures, a s a pilot means of the Mainland 
open -up policy in Guangdong. The breadth and depth of liberalization surpass the 
previous CEPA measures implemented in Guangdong.  
Overall speaking, the Agreement sets out the liberalization measures for trade in 
services in Guangdong by way of both positive and negative listing, and the Mainland 
opens up 153 services trade sectors to the Hong Kong/Macau services industry in 
Guangdong.  In respect of the mode of "commercial presence", national treatment 
applies to Hong Kong/Mac au each in 58 sub -sectors. The negative list covers 
134 services trade sectors, keeping 132 non -conforming measures as inconsistent with 
or inapplicable to the obligation of national treatment.  Measures under the mode of 
"cross -border supply", "consumption  abroad" and "movement of natural persons", as 
well as the sectors of telecommunications and culture are positively listed, committing a 
total of 27 and 24 new liberalization measures to Hong Kong/Macau respectively.  With 
regard to investment facilitation,  the establishment of companies in Guangdong by 
Hong  Kong/Macau service suppliers and the related contract/articles of association 
becomes subject to filing of record instead of prior approval in pilot services trade 
sectors.  
The Agreement came into effec t on the day of signing and was implemented starting 
from March  1, 2015.  WT/TPR/M/3 42/Add.1  
 
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  2.5 Foreign Investment Regime  
2.5.1 Regulatory Framework and Market Access  
Page 37,  paragraph 2.24  
23. Could China please provide an update on the progress to merge the Law on Sino -Foreign 
Equity Joint Ventures, the Law on Sino -Foreign Cooperative Joint Ventures, and the Law on Wholly 
Foreign -Owned Enterprises?  
Reply: From January 2015, the Draft Foreign Investment Law of the People's Republic of 
China has solicited the public 's opini ons. This law aims at creating a more stable, 
transparent and predictable law environment for foreign investment. For the next step, 
China will promote the law for early entry into force according to the set legislative 
procedures.  
Page 39, paragraphs 2.27 , 2.28 and 2.30  
Australia welcomes the advice in the Secretariat report that the 2015 Investment Catalogue  no 
longer contains certain restrictions such as requirements for Sino -foreign equity/cooperative joint 
venture operations, or control by Chinese shar eholders in key industries such as e -commerce, 
chain -store operation, the wholesale of refined oil products, insurance brokerage, and trust and 
finance companies.  
As noted by the Secretariat, the revision of the Investment Catalogue  appears to be consisten t 
with the goals of the 12th Five -Year Plan, which calls for a more efficient use of foreign investment 
in sectors such as modern agriculture, high and new technology, advanced manufacturing, energy 
conservation and environmental protection, new power sour ces, and modern service industries ", 
areas which are of high importance to the future Chinese economy.   
24. Could China  provide greater clarification of the policies in place to guide FDI into the 
"encouraged" sectors, as identified in the Secretariat repo rt? 
Reply: According to the Provisions on Guiding Foreign Investment, any circumstance 
that are consistent with one of the following five aspects can be regarded as encouraged 
foreign investment project: (I). Agricultural new technology, comprehensive agri cultural 
development, and energy, transportation and important industrial raw materials. 
(II). New high technology and advanced applicable technology, and new equipment and 
materials that can improve product performance, reinforce technical and economic 
performance of enterprises, or provide support for insufficient domestic production 
capacity. (III). Meeting the market demand, and improving product quality, exploring 
emerging market or enhance the international competition ability of products. (IV). New 
technology and new equipment, and being able to save energy and raw materials, 
comprehensively utilize resources and renewable resources, and prevent environmental 
pollution. (V) Be able to make full use of favourable factors in central and western 
regions and in accordance with national industrial policy.  
For the foreign investment projects that accord with "encouraged" sectors of the 
Catalog ue for the Guidance of Foreign Investment Industries, within the total amount of 
investment, the import self -used equ ipment and the technology, accessories, spare 
parts that are imported along with the equipment according to contracts are exempt 
from custom duties, except they are falling into the Catalog ue of Products Imported for 
FIPs and Not Eligible for Tax Exemption . 
25. Is China planning  further liberalisation of its foreign investment regime, and the removal of 
requirements such as those identified in the Secretariat report, into further sectors of the Chinese 
economy ? 
Reply: The Chinese Government has been exercis ing the foreign investment regulatory 
system of pre -establishment national treatment plus negative list, and will timely draw 
experience from the FTZs, and promote it throughout the country as soon as possible. 
Going forward, according to the Several Opini ons on the Building of a New System of 
Open Economy and the Outline of the 13 th Five-Year Plan for National Economic and WT/TPR/M/3 42/Add.1  
 
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  Social Development, China will carry out a new round of opening up at a higher level, 
open up the service industry and further open up the manufacturing industry. China is 
willing to discuss the mutual opening up of the service industry with Australia within the 
framework of the Doha Development Round.  
26. Could China  explain how the negative list for foreign investment, issued in the Oct ober 2015 
Opinion by the State Council, will relate to the investment catalogue that is currently used to guide 
investment ? 
Reply: The Special Administrative Measures for Access of Foreign Investment to Pilot 
Free Trade Zones (the "Negative List ") specifie d the special administrative measures for 
access of foreign investment that do not conform to national treatment and other 
principles. Currently, the Measures are only applicable to the four Pilot FTZs in Shanghai, 
Tianjin, Guangdong and Fujian. The sector s other than those specified in the Negative 
List will be managed in accordance with the principle of treating domestic and foreign 
investors equally within the FTZs. The Catalogue for the Guidance of Industries for 
Foreign Investment (the Investment Catal ogue) is applicable to investments within the 
territory of China by overseas investors. Currently, foreign investors need to abide by 
China 's laws and regulations when investing in China, including the Investment 
Catalogue and other relevant provisions. In  the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management 
system for foreign investment.  
2.5.2 Examination and Approval Procedures  
Page 41,  paragraph 2.34 
27. Could China please provide informat ion on the number of applications, approvals and 
rejections for the categories provided in table 2.1 Foreign Direct Investment Subject to 
Verification?  
Reply: In 2014, important reforms in management system of foreign investment 
projects has been carried o ut through fully implementing the system of general file -
recording and part approval. At present the recording system is applicable for more than 
95% foreign investment projects and is implemented by local management. For the 
small part of foreign investme nt projects that need to be reviewed, most of them were 
approved.  
Page 43,  paragraph 2.42  
28. Could China provide information on the number of applications, approvals and rejections for 
the reviews related to the Trial Measures on National Security Review  of Foreign Investment in the 
Pilot Free Trade Zones?  
Reply: Currently there is no data available for public.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
Pages 46 -48, paragraph s 3.1 and 3.5   
The Secretariat report notes that export and import declarations can be made through paperless 
procedures,  and that a pilot paperless customs clearance scheme is being introduced for products 
subject to automatic import licensing.   
29. Can C hina provide an update on the pilot paperless customs clearance scheme?  Has this been 
implemented for all China ports and across China nationwide?  
Reply: Since 1 August 2012, pilot reforms on paperless customs clearance were 
launched in 12  customs offices.  On 1 April 2014, they were introduced to all business 
sites of customs offices across the country. Throughout the 2015, the paperless customs WT/TPR/M/3 42/Add.1  
 
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  clearance has bec ome an efficient customs clearance mode for all law -abiding 
enterprises.  
To support the reforms of paperless customs clearance, since 1 February 2016, MOFCOM 
and General Administration of Customs of China implemented the reforms of paperless 
customs clearance for automatic import licensing all over the country. Enterprises can 
apply for electronic li cense according to relevant regulations and declare to the customs 
in the paperless way. The customs will examine and check the electronic license through 
the automatic import licensing network without any label.  The above mentioned reforms 
fulfilled the E lectronic License by using electronic seals and signatures in the electronic 
data of licensing; and at the same time realized the paperless management in the full 
process of license application, reviewing, approving, issuing and customs clearance.  
Page 48,  paragraphs 3.6 and 3.7  
The Secretariat report notes that Goods entering (and exiting) bonded zones, export processing 
zones and other special customs supervision areas, as well as border trade imports (and exports), 
are subject to different customs proced ures formulated by GACC, and to different inspection and 
quarantine requirements, which are formulated by the AQSIQ with the GACC. The Secretariat 
report notes that China applies different customs procedures to specific areas, in some instances 
on a trial basis, to assess if they work.   
30. Can China clarify when such customs procedures will be harmonised so as to assist with 
implementation of the WTO Agreement on Trade Facilitation?  
Reply: According to the requirements of Guiding Opinions of the State Coun cil on 
Promoting the Scientific Development in Special Customs Supervision Area (Guo Fa 
[2012] No.  58) and Notice of General Office of the State Council on Issuing the Scheme 
of Accelerating the Integration and Optimization of Special Custom Supervision Zo nes 
(Guo Ban Fa [2015] No.  66), export processing zones, bonded logistics zones, cross -
border industrial zones, bonded port zones and eligible bonded zones will be gradually 
integrated into comprehensive bonded zones. The new special customs supervision 
areas will be named as comprehensive bonded zone.  
31. Can China clarify how conformity assessment testing and certification processes can be 
consistent across all China importation ports, when customs procedures vary across customs areas 
and importation and exportation ports?  
Reply:  According to the Custom Law, the General Administration of Customs (GAC) 
administrates all customs throughout the country in a unified manner. The legal basis of 
the customs procedures applied to each custom area and port are the Customs Law, the 
regulations issued by GAC and relevant normative documents, which are unified.  
In recent years, General Administration of Customs has combined the discretion with 
enforcement closely to effectively promote the unified and standard enforcem ent. 
Through clearing up and comprehensively summarizing of the discretionary power of 
customs, the Catalogue of Administrative Discretion of Customs is formed covering 
106 discretions. 20 of the discretions in key areas such as examination and checking, 
levy and punishment are regarded as the priorities to further improve and hone 
discretion criterion and regulation measures.   
3.1.4 Tariffs  
3.1.4.1 Applied tariffs and tariff structure  
Page 50, Table 3.2  
Australia notes that almost 3% of China 's tariffs are  "nuisance " tariffs i.e. less than 2%. This is 
unchanged from 2013 , higher than in 2011 and  is higher than the number of nuisance tariffs in its 
bound schedule.  WT/TPR/M/3 42/Add.1  
 
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  32. Given the above, does China have any plans to eliminate, or otherwise reduce, the number o f 
such tariffs, which could help to improve the overall efficiency of China 's customs administration at 
little expense?  
Reply: Tax revenue is not only related to tax rate, but also trade volume. Lower rates do 
not mean less trade volume. The customs calcul ated the tax payable by computer, and 
there is no direct relationship between the administration efficiency and the tax rate. 
China temporarily has no plan to eliminate the number of nuisance tariffs.  
3.1.6 Import prohibitions, restrictions, and licensing  
Page 56,  paragraph 3.29 
33. Can Chinese authorities please provide information on what circumstances were foreseen that 
would result in restrictions being applied to imported products (agricultural, animal and fish) under 
Article 16 of the Foreign Trade La w? 
Reply: Details are stipulated in Article 16 of the Foreign Trade Law.  
3.1.7.1  Anti-Dumping Measures  
Page 57, paragraph 3.33  
34. The report states that "The TRB  ... is currently responsible for AD, countervailing duty, and 
safeguards investigations and d eterminations and for other trade remedy measures " (emphasis 
added). Can it be clarified what other trade remedy measures the TRB is responsible for beyond 
safeguards and anti -dumping and countervailing measures?  
Reply: The TRB has not yet adopted other tr ade remedy measures. But Chapter VIII of 
Foreign Trade Law of China stipulates other trade remedy measures beyond safeguards 
and anti -dumping and countervailing measures.  
35. Do MOFCOM and the Ministry of Agriculture also jointly conduct the injury investi gation 
component of countervailing investigations involving agricultural products?  
Reply: Yes, MOFCOM and the Ministry of Agriculture jointly conduct the injury 
investigation component of countervailing investigations involving agricultural products.  
Page 57, paragraph 3.34  
36. Has MOFCOM self -initiated any anti -dumping investigations during the period under review?  
Reply: MOFCOM has never self -initiated any anti -dumping investigations during the 
period under review.  
Page 57, paragraph 3.35  
37. Has China ex tended any provisional measures beyond four months? If so, on what basis would 
it do so given  the requirement for "special circumstances ", which the report states as referring to 
where the investigating authority are examining a lesser duty, given that in paragraph 3.40 it is 
stated China does not currently examine a lesser duty.  
Reply: China currently did not examine whether a duty lower than the margin of 
dumping would be sufficient to remove the injury. Recently, there are no cases for China 
to extend an y provisional measures beyond four months.  
Page 58, paragraph 3.37  
38. What factors does MOFCOM take into account in selecting the exporters/producers to be 
included in the sample?  WT/TPR/M/3 42/Add.1  
 
- 25 - 
 
  Reply: According to the Provisional Rules for the Anti -dumping Sampling Sur vey, if the 
number of exporters, producers, product models or transactions is so large that it would 
be unduly burdensome (to determine the dumping margin for every individual export 
and producer and to examine all of project models and transactions) and p revent the 
timely completion of the investigation, the investigating authorities will make use of a 
sampling method in investigation. During the sampling, the export volume is the most 
important factor that the investigating authorities will consider, and the exporter with 
the largest volume will be chosen. In some specific cases, investigating authorities will 
consider to conduct random sampling, systematic sampling or other applicable 
statistical sampling ways.  
Page 59, paragraph 3.45  
39. During the revie w period, has China made any decisions to not impose or collect anti -dumping 
duties because to do so was not in the public interest under Article 37 of the Regulations of the 
People 's Republic of China on Anti -Dumping?  
Reply: This has never happened.  
Page 60, paragraph 3.50  
40. Are there published rules for the conduct of administrative reconsideration/review of 
countervailing decisions by the Department of Treaties and Law (or similar), as there is for 
anti-dumping decisions?  
Reply: Yes, as an administrati ve action, it could be reconsidered or reviewed according 
to the Administrative Reconsideration Law and its implementing regulation.  
3.1.8.1 Standards and technical regulations  
Pages 62 -65, paragraphs 3.60 -3.70 
41. Does China apply generic principles of g ood regulatory practice (GRP) to the development and 
implementation of regulations relating to standards and technical regulations?  
Reply: in the revision of the Standardization Law, China always upholds that generic 
principles of good regulatory practice (GRP)  must be clarified. For example, standards 
should be in favour of promoting foreign economic and technological cooperation and 
foreign trade; prohibiting the development of standards that may disturb market order 
and impede fair competition and so on.  For example, in draft regulations, China 
encourages the participation in international standardization activities  and the 
development and application of international standard s; China encourages the 
implementation of standardization  international cooperat ion and exchanges, so as to 
promote the transformation and application between Chinese standards and 
international ones. For example, draft regulations rule that mandatory  standards should 
be notified to the WTO and so on.  
42. What type of public consulta tion is required and mandated by regulation?  Does this vary by 
the agency that develops and implements the regulation?  
Reply: The Standardization Law makes it clear that industrial associations, research 
institutions for science and technology and academi c organizations should play a role in 
formulating standards. According to the Regulations for the Implementation of the 
Standardization Law , industrial associations, research institutions for science and 
technology and academic organizations should set up standardization technical 
committees consisting of experts from users, production units, industrial associations, 
research institutions for science and technology, academic organizations and the 
departments concerned, which shall be responsible for draftin g standards and 
examining the technical aspects of the drafts. It is necessary to fully heed the opinions 
of the users and research institutions for science and technology in formulating 
enterprise standards.  WT/TPR/M/3 42/Add.1  
 
- 26 - 
 
  Page 63,  paragraph 3.60 
The Secretariat report notes enterprise standards may be developed for an enterprise when 
national, industry/sectoral or local standards are not available.  
43. Does China mandate enterprise standards when international standards are available?  
Reply: According to the Standardiza tion Law, enterprise standards are voluntary 
standards, applying within enterprises.  
44. What is the percentage of mandatory standards that are based on enterprise standards?  
Reply: According to the Standardization Law, enterprise standards are voluntary 
standards, applying within enterprises.  
Page 63, Footnote 74,  paragraph 3.61 
The Secretariat report notes both domestic and registered foreign -funded enterprises may 
participate in China's national standardization activities.  They must file an application to participate 
in the corresponding technical committee.  
45. Could China please explain the application process for a foreign business to participate in a 
particular technical committee that develops specific standards?  
Reply: According to the  Administrat ion Provisions on National Professional 
Standardization Technology Committee, members of technical committees should come 
from legally registered corporations within China. Hence, representatives of foreign 
enterprises temporarily cannot participate in the  National Professional Standardization 
Technology Committee.  
Page 64,  paragraph 3.68 
The Secretariat report notes that some 74.3% of mandatory standards and some 75.2 % of 
voluntary standards were adoptions or an adaptation of international standards.  
46. Could China clarify which international standards these statistics are based on (e.g. ISO, IEC)?  
47. What percentage of mandatory standards are adopted in full, and based solely on an 
international standard?  Please provide a breakdown by sector.  
Reply to Q uestion s 46 & 47: Up to 2014, the number of mandatory national standards 
China has reached 3798, among which 938 standards have correspondence with 
international standards (including IDT, MOD and NEQ). These international standards 
mainly refer to Internat ional Organization for Standardization (ISO), International 
Electrotechnical Commission (IEC) and International Telecommunication Union (ITU). 
And among those standards have correspondence with international standards, IDT 
accounts for 492, MOD takes 205.  
Page 65,  paragraph 3.69 and Page 71,  paragraph 3.91 
48. The WTO Secretariat report notes that in 2014 and 2015 Chinese authorities made 141 TBT 
notifications (paragraph 3.69) and between 2013 and 2015 made 417 SPS Notifications 
(paragraph 3.91). However, table 3.7 advises that 20,701 National, Sector and Local standards 
were approved in 2014 and 2015 (776 mandatory and 19925 voluntary standards). Can China 
advise when outstanding TBT and SPS Notifications will be made?  
Reply:  Mandatory standards  needed to be notified refer to those with an impact on 
trade , not resulting from the adoption of an international standard  (whether there is a 
corresponding one or not) or having substantial differences with international 
standards.  WT/TPR/M/3 42/Add.1  
 
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  Page 65,  paragraph 3.69 
The Secr etariat report notes AQSIQ is China's TBT Enquiry Point and the body responsible for 
preparing, checking and submitting China's TBT notifications.  
49. Which agency is responsible for responding to comments submitted by other WTO Members 
through the China T BT Enquiry Point?  
Reply: Agencies listed in the second column "Agency responsible " of China 's notification 
form will respond to comments submitted by other WTO Members through the China TBT 
Enquiry Point.  
50. What process does China undertake to respond to  comments?  How long does it take for China 
to respond to comments, and to discuss the comments raised as requested by other WTO 
Members?  
51. Can China please outline how it has taken written comments into account as a result of 
discussions and comments rai sed by other WTO Members through the China TBT Enquiry Point?  
Reply to Question s 50-51: After receiving the comments from other Members, China TBT 
Enquiry Point transfers the comments to the responsible agencies. When the responsible 
agencies have responde d, the Enquiry Point then replies to the Members.  
Page 65,  paragraph 3.70 
The Secretariat report notes that work has been carried out to eliminate unnecessary standards: 
the authorities indicated that by January 2015, 4,354 local standards had been annulle d. However, 
Table 3.7 shows growth in the number of local standards from 3,239 in 2013 to 4,004 in 2015.  
52. Over what time period have the 4,354 standards been annulled?  What is the process for the 
annulment of standards?  
Reply:  The 4,354 standards are a ccumulatively annulled, including the local standards 
annulled by the standardization authorities of provinces, autonomous regions and 
municipalities directly under the Central Government . Annulment procedures are 
conducted according to the Standardization  Law of the People's Republic of China , 
Administrative Measures on Local Standards  and relevant administrative measures on 
local standards of provinces, autonomous regions and municipalities directly under the 
Central Government . 
Page 65,  paragraph 3.70 
The Secretariat report notes China was invited to streamline and review the domestic standards 
framework, and to look into replacing local standards with national standards, where relevant.  
53. Could China provide further information about current and future  efforts to streamline the 
domestic standards framework, such as replacing local standards with national standards, and 
enterprise standards with international standards, where relevant?  
Reply:  According to Article 6 of the Standardization Law of the Peopl e's Republic of 
China , local standards shall be annulled on the publication of the national standards. 
Enterprises make their own choices on whether adopting international standards or not.  
3.1.8.2  Product Certification  
Pages 65 -67, Paragraph s 3.71-3.77 
54. Australia has concerns over the timeframes for approval of pharmaceuticals (especially in 
regards to complementary medicines) as raised at the WTO Technical Barriers to Trade Committee 
Meeting (June 2016). This is in addition to previously raised concer ns about registration fees for 
Drugs and Medical Device Products, specifically the cost differentials between foreign and domestic 
applications (particularly for medical device manufacturers).  WT/TPR/M/3 42/Add.1  
 
- 28 - 
 
  Can China clarify the process of certification, and the applica tion process for China 's Compulsory 
Certificates, in regards to pharmaceuticals and manufactured medical devices?  
Reply : In terms of the medical devices, in 2014, the State Council issued the newly -
edited  Regulation on the Supervision and Administration o f Medical Devices  
(No. 650 Decree of the State Council), the State Food and Drug Administration issued 
such supporting regulations and criteria documents as the Medical Devices Registration 
Administration Method , the  Registration Administration Methods of In Vitro Diagnosis 
Reagents , Announcement about Relevant Matters of First Class Medical Devices Backup , 
Technical Guidelines for Clinical Appraisal of Medical Devices , Content of Second and 
Third Class Medical Devices Free from Clinical Trials , etc.; besid es, it has implemented 
and detailed relevant requirements on registration as well as managed Chinese medical 
devices by category and level. In respect of the risk level, the medical devices are 
classified to three classes, among  which, the third class high lights the highest risk and 
the first class highlights the lowest risk. The first class medical devices shall be filed and 
managed by the municipal food and drug administration department; the second and the 
third medical devices shall be registered. The f ood and drug supervision department at 
the provincial level shall be responsible for domestic second class medical devices and 
the State Food and Drug Administration shall be responsible for the domestic third class 
and imported medical devices. As to the backup of medical devices, the medical devices 
applicants shall submit the backup information to the food and drug supervision 
department, which will then file such  information as submitted for examination. As to 
the registration of medical devices, the fo od and drug supervision and administration 
department, as per the applicant 's application, will carry out systematic assessment of 
the researches and results in respect of the medical devices ' safety and validity 
according to statutory procedures so as to decide whether to agree with the application 
or not. As to the backup of the first class medical devices, registration of the second and 
third class medical devices, the product risk analysis information, the product technical 
requirements, the product ins pection report, the clinical assessment information, the 
product instructions and the label sample manuscript, the quality management system 
documents in relation to the product 's manufacturing and production, other information 
to certify the product 's saf ety and validity, etc. shall be submitted. If the backup 
information conforms to requirements, the food and drug administration department 
may file on the spot. As to the application for medical devices registration, the technical 
review institution of the  food and drug supervision and administration department shall 
accomplish the technical review of registration of the second class medical devices 
within 60 business days and within 90 business days as to the technical review of 
registration of the third c lass medical devices. Upon technical review, those in 
conformity with the safety and validity requirement shall be registered and as to those  
not allowed to be registered,  explanations will be made in writing.  
In term of medicine, it has been defined in th e State Council 's Opinions on Reforming 
the Examination and Review System of Medicines and Medical Devices  that efforts shall 
be devoted to review the medicine registration applications within the stipulated time 
limit before the end of 2018.  
Page 65,  paragraph 3.71 
The Secretariat report notes that various Chinese regulations and laws regulate certification, 
accreditation and testing arrangements.  
55. What foreign laboratories and conformity assessment bodies have Mutual Recognition 
Agreements (MRAs) with CNCA? Could China list its agreements and the scope of products 
covered?  
Reply : in case of bilateral recognition, generally, the State Certification and 
Accreditation Administration will conclude the mutual recognition and cooperation 
agreement with releva nt departments overseas; then the inspection and accreditation 
institution of both parties will carry out specific mutual recognition of the inspection and 
accreditation results according to this agreement. In terms of multi -lateral recognition, 
as to the accreditation of enforceable products, CB report within the scope of IECEE -CB 
which China accessed shall be acknowledged. As to the accreditation institutions not WT/TPR/M/3 42/Add.1  
 
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  established in China, CCC accreditation and assessment shall be carried out. At present, 
no relevant plan has been developed.  
56. Which particular domestic regulation requires that testing of foreign products must be 
undertaken in China?  Is this a blanket provision covering all products or does it vary by product?  
Which domestic regulations requir ing the testing of foreign products must be undertaken in China 
apply to which particular products?  
Reply: The legal basis is the Law on Inspection of Import and Export Commodities and 
the Implementing Regulations for the Law on Inspection of Import and Ex port 
Commodities  
Page 65,  paragraph 3.73  
57. We note China 's response to the 2014 review notes that certifying bodies must be established 
in mainland China although foreign laboratories can participate in the testing for CCC certification 
in accordance wi th the cooperation agreement signed by the two governments. Does China 's CNCA 
have plans to facilitate the certification of any non -China -based bodies?  
3.1.9 Sanitary and phytosanitary requirements  
Page 67,  paragraph 3.80/Page 71,  paragraph 3.91 
58. Austra lia notes the importance of notifying all SPS measures, including laws, implementation 
regulations, decrees and ordinances to the WTO in a transparent manner.  Since the last review in 
2014, which Chinese agencies have been involved in developing, implement ing and modifying SPS 
measures and what steps are being taken to ensure that SPS measures, particularly those that 
spread across different agencies are notified to the WTO?  
Reply:  As stipulated in Article 5 of Appendix B of WTO/SPS Agreement that "as long  as 
the international standards, guideline or suggestions have no such regulation, or the 
intending sanitary and phytosanitary regulations have substantial difference from the 
international standards, guideline or suggestions, and if such regulations may e xert 
important influence on the trading of other members ", such regulation shall be reported 
to WTO and China shall assess whether to report domestic SPS measures according  to 
such regulation and then perform the  notification  obligation in time.  
Page 68,  paragraph 3.81  
59. Regarding the Food Safety Law and registration system for infant formula powder and 
formulas for special medical purposes, could China  provide information  on how it intends to  ensure 
that the registration of suitable imports is done in a  timely and low -cost manner?  
Reply : The Administrative Measures on Registration of Formula  Food for Special Medical 
Purposes  (No. 24 State Food and Drug Administration Decree) and the Administrative 
Measures on Registration of Formula of Formulated Milk Po wder Products for Infants 
and Young Children (No. 26 State Food and Drug Administration Decree)  have made 
definite stipulations therein on the administrative acceptance, the technical review, the 
on-site examination and the sampling inspection, etc. as wel l as the respective time 
limit for the registration of formula food for special medical purposes and the 
formulated milk powder products for infants and young children respectively; besides, it 
also stipulates therein that the on -site examination and the t ime limit for sampling 
inspection of imported products shall be confirmed in accordance with the actual 
conditions of the overseas production enterprises. At present, the State Food and Drug 
Administration  is studying the charging of registration of the  formula food for special 
medical purposes and the formula of formulated milk powder products for infants and 
young children, and then will  confirm the corresponding charging standards according to 
the actual registration situation.  WT/TPR/M/3 42/Add.1  
 
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  Page 69,  paragraph 3.84 
60. China is a member state of the World Organisation for Animal Health (OIE) and actively 
participates in the development of transparent and internationally harmonised standards to enable 
countries to self -declare disease freedom. Does scope exist for China  to recognise such self -
declarations without the need for an on -site survey?  Have MOA/AQSIQ established target 
timeframes for assessing and responding to written applications from a country for recognition of 
their disease free status?  
Reply : As to such se rious animal epidemic diseases as highly pathogenic avian influenza, 
and African swine fever, etc., Chinese party must carry out on -site assessment. As to the 
relief procedures of prohibition of animal epidemic, when the animal epidemic of the 
output count ry or region is extinguished and under effective control, it is necessary to 
submit the epidemic  termination report to OIE for recognition ; when  the report  is 
approved and the output country or region has no new case within successive two 
months, the compe tent national department of the output country or region may submit 
the epidemic  relief application with the General Administration of Quality Supervision, 
Inspection and Quarantine of the People 's Republic of China. Upon receipt of such 
application, the G eneral Administration of Quality Supervision, Inspection and 
Quarantine of the People 's Republic of China will carry out the risk assessment and risk 
communication with relevant departments of the Ministry of Agriculture , and  then 
decide whether or not to develop on -site risk assessment and relieve the epidemic 
prohibition according to the assessment result.  
Page 70,  paragraph 3.87 
61. The WTO Secretariat report notes that "If the imported food fails to meet China's national food 
safety standards, or may ha rm human health as proved by "evidence", the importer concerned will 
be prohibited from continuing to import the product and all imports of the concerned products 
must be recalled. " Can China clarify what "evidence " is required before imported food has bee n 
identified as failing China 's national food safety standards?  
Reply : The "evidences " shall include 1) the food safety risk assessment result, the 
safety risk assessment result of edible agricultural products, the risk analysis result of 
domestic and ove rseas epidemic situation, epidemic diseases, poisonous and harmful 
substances, as well as the risk assessment result according to relevant international 
standards and international food safety; 2)  the imported pre -packaged food and food 
additives shall hav e Chinese labels; in case the specification is necessitated according to 
law, the Chinese specification  shall be attached therewith.  The label and the 
specification shall conform to the requirements of Food Safety Law , other relevant laws 
and administrativ e regulations of China and the national standards for food safety . 
Besides, the food 's place of origin, the domestic agent 's name, address and contact 
method shall be indicated. In case there 's neither Chinese label nor Chinese 
specification in the pre -packaged food, or the label or the specification fails to conform 
to this regulation, such food shall not be imported.  
Page 71,  paragraph 3.91 
65. When adopting SPS measures, does China take into consideration agreed bilateral protocols for 
products and if so , are countries with bilateral protocols exempt from those requirements provided 
the exporting party adheres to the importing country 's requirements as specified by the bilateral 
protocol?  
Reply: China will communicate with countries concerned and solve pr oblems through 
negotiation in accordance with the SPS agreement.  
66. China participates strongly in multilateral standard setting fora, such as WTO SPS Committee 
and Codex Alimentarius to develop internationally harmonised standards. Will there be a greate r 
direction in the future to align its SPS measures with existing international standards where 
possible?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China has always participated strongly in multilateral standard setting fora and 
abided by the rules provided by WTO SPS measures. In the futur e, China will formulate 
our SPS measures in line with the rules of the WTO and domestic laws and regulations.  
67. The report notes that most SPS measures that China notified between 2013 and January 2016 
are not based on international standards. Could Chin a provide information on how it intends to 
adopt SPS measures based on international standards?  
Reply: China has kept complying with the SPS requirements and fulfilling our 
obligations. In the future, the Chinese side will continue to set  and amend our SPS  
measures in accordance with the provisions of the SPS agreement.  
3.2 Measures Directly Affecting Exports  
3.2.2 Export taxes, charges, and levies  
Pages 73 -74, Table 3.10 and  paragraph 3.98 
Australia acknowledges the improvements made by China in its applic ation of export taxes, as 
identified in the Secretariat 's report.  However, the report also notes that China continues to apply 
a wide range of export taxes on important global commodities.  The use of these taxes is significant 
- covering more than 4% of all tariff lines – and is extensive, ranging from statutory duties, 
interim duties and a special export duty (which is applied seasonally, and can be much higher than 
interim duties).  Duty rates are generally high, and range up to 5 0%, such that in some case s 
China does not export any of these products.  As the Secretariat report also notes, China is the 
world 's leading exporter of some of these products.  
68. Given China 's unique position in the markets for many of these commodities - and the impact 
on global supply and prices - can China please advise if it has any plans to further eliminate, or 
otherwise at least reduce, the use of export taxes on these globally important commodities in the 
future, and allow markets to function more independently and efficien tly? 
Reply: China  always  respect s the WTO rules. The export duties on some raw materials 
reflect  the scientific regulation o f resource product s to achieve sustainable development  
against the ever severe resources and environment pressure, and are a compone nt in 
the comprehensive measures to strengthen eco -environment protection. It is in line with 
WTO rules. Frictions related to export duties will be resolved according to WTO dispute 
resolution process.  Members can follow the discussion under the dispute settlement 
mechanism . 
3.2.3 Export prohibitions, restrictions, and licensing  
Page s 75-76, paragraphs 3.104 and 3.106  
In addition to the export duties noted above, China also applies global export quotas on 193 tariff 
lines, and export licensing to 450 tariff  lines in 48 categories of goods – unchanged since 2013.  
69. Can China please explain the rationale for maintaining such restrictive controls on so many of 
its exports?  
Reply: The export quota on industrial raw materials of China is to achieve the policy g oal 
of protecting natural resources and environment to realize sustainable development. 
WTO emphasizes free trade and also respects national sovereignty of natural resources 
and allows members to take necessary measures to accomplish objectives of protecti ng 
resources and environment. China always abides by the rules of WTO and hono urs its 
commitments to the WTO. China regulates the export of industrial raw materials 
according to WTO rules.  
3.2.3 Export prohibitions, restrictions, and licensing  
Page 75,  paragraph 3.105  
70. Can China please explain why "Goods that are freely exported may be subject to automatic 
export licensing for monitoring purposes " i.e. why is it necessary to monitor such exports?  WT/TPR/M/3 42/Add.1  
 
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  Reply: This sentence is wrong, as there is no such adminis tration as automatic export 
licensing in China. At the request of China, the Secretariat has already deleted the 
sentence, and this will be reflected in the revised version of the Secretariat Report.  
3.2.4 Export support and promotion  
Page 76, paragraphs 3 .107 and 3.110  
71. The WTO Secretariat report notes that China has not provided any notification updates since 
2012 on whether China maintains export subsidies. When will China provide updated advice on its 
use of export support measures?  
Reply: As stated in Article 10 of the Protocol on the Accession of China, China shall 
eliminate all subsidy programmes falling within the scope of Article 3 of the SCM 
Agreement upon accession. China has hono ured its commitment to the WTO and 
performed its obligations unde r the WTO agreements. In the past few years, China 
Council for the Promotion of International Trade (CCPIT) and the Trade Development 
Bureau of the Ministry of Commerce have organized training courses and economic 
forums to get Chinese enterprises familiar  with overseas laws and regulations, and to 
facilitate foreign companies ' development in China.  
3.2.5 Export finance, insurance, and guarantees  
Page 77,  paragraph 3.112  
72. Can China please identify and describe the range of financial products made availab le to 
exporters of Chinese agricultural products, by Chinese state -owned banks and financial entities?  
What has been the annual level of support provided by these institutions to Chinese agricultural 
exporters?  
Reply: Both China 's policy -oriented banks and  state -owned commercial banks have not 
provided financial support measures that are specifically and exclusively designed for 
the export of agricultural products. Some of China Eximbank 's export credit programs 
provide exporters of agricultural products wi th working capital; the Agricultural 
Development Bank of China provides short -term trade financing for exporters of 
agricultural products. The above financial products or services are all commercial 
businesses carried out by banks in line with market condi tions. China 's state -owned 
commercial banks provide various financial products to enterprises, including 
agricultural production enterprises, and some of which export their products to foreign 
countries and Hong Kong, Macao and Taiwan regions. All products  are provided 
according to market conditions as the enterprise 's independent commercial behavio urs. 
The Chinese government does not monitor the overall scale of these financial products 
for the present stage since the above financial products are not invol ved in agricultural 
domestic support and there was no discipline to restrict such support measures in the 
past.   
China Export Credit Insurance provides short -term export credit insurance for exporters 
of agricultural products. In 2015, the insured amount o f agricultural products under the 
short -term export credit insurance item of China Export Credit Insurance account for 
around 3.3% of its total short -term insured amount . 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 80, paragraphs 3.12 1, 3.122 , and 3.124  
73. Can China please explain why the notification it submitted to the Committee on Subsidies and 
Countervailing in 2015 contained 30 programs that had not previously been notified to the WTO?  
Reply: The 30 newly added programs are under  the policy measures issued and 
implemented during the period from 2009 to 2014. They did not exist before 2009, and 
therefore, had not been reflected in the previous notifications.  WT/TPR/M/3 42/Add.1  
 
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  74. Similarly, can China please advise why the new notification did not in clude one specific 
program – the preferential tax policies for the relief of grain producer s - previously notified to the 
WTO and that appears to be in force?  
Reply: This program involves the preferential tax policies for reservoir resettlement 
rations.  Since it was no longer in force due to policy adjustment, it was no longer 
notified.  
75. Can China advise when the notification of programs maintained at the sub -central level will be 
available?  
Reply: Prior to this review conference, China had already submi tted to the WTO 
Notification on Subsidies at sub -central government level for 2001 -2014, which was 
China 's first Notification on Subsidies at sub -central government level. Please refer to 
the document for details.  
76. Is China able to assist the Secretaria t in clarifying the "other support programmes and other 
means to support different industries " - the identification of which the Secretariat reports it has 
found difficult?  
Reply: China does not agree to the point of "there are other support programs and o ther 
means  to support different industries " and "the identification of these programmes 
remains difficult " in the  Report  by the Secretariat  for this review . China noted that the 
wording  in paragraph 3.124 comes from paragraph 3.125 of the 2014 China TPR Re port 
by the Secretariat. At that time, China had not submitted the most recent notification on 
subsidies. However, in 2015, China already  submitted its notification on subsid ies at 
central government level for 2009 -2014, and before the review meeting, its  first 
notification on subsidies at sub -central government level , covering 14 years from 20 01 
to 2014. These notifications contain  the subsidy policies that are required to be notif ied 
to the  WTO, according to  China 's understanding of the relevant definitio ns and rules 
requirements  of the SCM Agreement. It's a pity that  the relevant paragraphs of 
Secretariat's Report failed to be updated in the light of  the above -mentioned important 
latest  developments . 
Page 80,  paragraph 3.123  
77. Can China please provide d etails on how they are progressing their "improvements " in 
agricultural subsidy policies and what form these improvements will take?  
Reply: Please refer to the fourth part of the Secretariat Report (4.1.3.2.1 Support 
measures and 4.1.3.2.2 & 4.1.3.2.2 Pric e controls and marketing). China will continue to 
push forward relevant market -oriented reforms and further improve the role of the 
market mechanism; Meanwhile, China will give more prominence to protecting 
agricultural production capacity through measures  that help to protect and improve 
environment, and enhance the productivity of the farm land . 
Page 91,  paragraph 3.164  
78. Could China please clarify how it assesses the impact of foreign investment on local culture 
and public morality?  
Reply: Based on su fficient research and demonstration and learning from the experience 
of European and American countries and regions, the Chinese government issued the 
Notice on Printing and Distributing the Trial Measures for the National Security Review 
of Foreign Invest ment in Pilot Free Trade Zones in 2015, which specifies  the scope, 
content , working mechanism and procedures of national security review of foreign 
investment in pilot free trade zones. The impact of foreign investment on cultural 
security and public moral ity security, including the influence on national culture and 
public order and morality of the society, is the key content of security review of all 
countries. It is of no exception in China.  WT/TPR/M/3 42/Add.1  
 
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  3.3.5 State trading and state -owned enterprises  
Page 94,  paragra ph 3.173  
79. Can China please provide details on the proportion of imports subject to state trading 
administration that are traded by non -state trading enterprises, including the proportion imported 
by these entities?  
Reply: Besides the import TRQs for sta te trading, the STEs can also act as agents for the 
import and export businesses for various types of other enterprises including non -state 
enterprises. It is therefore difficult to differentiate transactions conducted on their own 
and on behalf of other e nterprises.  
80. The report notes that imports subject to state trading administration can only be imported by 
authorised enterprises. Does China have plans to relax this requirement?  
Reply: China will study it further.  
Page 98, Paragraph 3.182  
81. What me asures is China taking to encourage the private sector to participate in sectors 
dominated by SOEs? Would it be possible for foreign enterprises to enter these sectors?  
Reply: In September, 2015, the General Office of the State Council prints and distribut es 
the Notice on State -owned Enterprises (SOEs) Developing Mixed Ownership (Guo  Fa 
[2015] No.  54), mandat ing the SOEs to "combine the reforms in areas including power, 
oil, natural gas, railways, civil aviation, telecommunications, and military industry to  
carry out business featuring openness and competitiveness and promote pilot 
demonstration for mixed ownership reform ". For the  major industries and key fields 
whose main projects relate to national security and economic lifeline, and commercial 
state -owne d enterprises mainly undertaking major special projects, work should be 
done to guarantee the majority shareholding  of state -owned capital and support the 
non-state -owned capital participation. For the natural monopoly industries, we will  
separate network from operation and open business featuring  competitiveness to 
promote the marketization of public resource allocation. Currently, we have formulated 
a pilot work plan and decided to choose some qualified central enterprises in above 
areas for mixed ownersh ip pilot reform. Meanwhile, governments at provincial level are 
also carrying out pilot reform for local SOEs in line with their local conditions. The Notice 
on State -owned Enterprises Developing Mixed Ownership proposes to attract foreign 
capital to parti cipate in the mixed ownership reform for SOEs, introduce foreign capital 
to SOEs system adjustment and restruct ion and joint venture cooperation in  an orderly  
way. The foreign capital can enter the above major industries according to the 
regulations set by  the current Catalogue for the Guidance of Foreign Investment 
Industries. On July 1, 2016, the State Council issued the Notice of the General Office of 
the State Council on Further Promoting Private Investment . It mandate s efforts  be taken 
to streamline ad ministration and delegate power and a favorable market environment 
be created for fair competition, with all parties treated equally. We will unremittingly 
encourage, support and guide the non -public sector development, ensure economies of 
all ownership ca n utilize production factors equally in accordance with the law, 
participate in market competition fairly and be protected by the laws on an equal basis.  
Page 99,  paragraph 3.187  
82. The report notes that the Government Procurement Law includes a "buy-domestic" provision 
and that there are no criteria specified as to what constitutes domestic good or provisions on local 
content. Does China have plans to change the Government Procurement Law?  
Reply: T he Government Procurement Law  stipulates  that the governm ent shall procure 
domestic goods, projects and services. The definitions of domestic goods, projects and 
services should be decided in accordance with the relevant regulations of the State 
Council. At present, the Ministry of Finance is working on the form ulation of the judging 
standards and relevant administrative measures on government 's purchase of domestic WT/TPR/M/3 42/Add.1  
 
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  products. The National People 's Congress (NPC) is responsible to amend the legislation, 
and it is reported that the NPC has not included the amendmen t of t he Government 
Procurement Law  into its plan yet.  
83. Does China have plans to collect statistics o n the government purchase of foreign products?  
Reply: The Ministry of Finance is working on the formulation of the judging standards 
and relevant admini strative measure on government 's procurement of domestic 
products. Before the introduction of that measure, the statistics on the government 
purchase of foreign products cannot be collected.  
3.3.7 Intellectual property rights  
3.3.7.1 Overview and instituti onal developments  
Page 103,  paragraph 3.3.7.1  
84. Could China provide more information on the particular mechanisms being implemented under 
the Opinions on further improving the Quality of Patent Applications issued in December 2013?  
Reply: The main goal of that policy is to further improve the quality of patent 
applications, and to give full play to the role of the patent system initiative and 
innovation protection. We will mainly take the following measures: firstly, establishing a 
supervision mechanism that is conducive to improving the quality of patent applications, 
including strengthening the supervision of the patent application behaviours violating 
the regulations in the patent review process, intensifying communication and 
coordination with the loc al department in charge of managing patent affairs, setting up 
the credit archives management system of application entities, and improving 
monitoring and feedback of the quality of patent applications. Secondly, optimizing the 
policy orientation that is c onducive to improving the quality of patent applications, 
including optimizing the assessment criteria of regional patent policy, and highlighting 
the policy orientation that takes the patent quality as the priority.  
3.3.7.1 Overview and institutional deve lopments  
Page 103, paragraph 3.205  
85. Could China please provide more information on what measures are being undertaken to 
strengthen IP protection in the cyber environment?  
Reply: Many relevant departments in China have conducted IP protection in the cyb er 
space in cooperation. Efforts can be seen as follows: in terms of the IP protection  in the 
E-commerce field, in 2014, the State Intellectual Property Office (SIPO) issued the work 
plan for the IP protection  in the E -commerce field. In 2015, the SIPO lau nched the 
special campaign called "Lightning " to enhance the patent law enforcement and rights 
protection in the E -commerce field. The coordination mechanism of the patent law 
enforcement and rights protection in the E -commerce field has been deepened. In early 
2016, the SIPO issued the Circular of the State Intellectual Property Office to Deepen 
the Patent Law Enforcement and Rights Protection in the E -commerce Field, established 
the Control Center (Zhejiang) of coordination in the patent law enforcement a nd rights 
protection in the E -commerce field, improving planning and coordination of the national 
work of the patent law enforcement and rights protection in the E -commerce field. We 
have also innovated in the working mechanism of the patent law enforcemen t and rights 
protection in the E -commerce field, promoted active cooperation among local 
Intellectual Property Offices, IP Protection Assistance Centers and E -commerce 
platforms, and significantly reduced the handling time of patent infringement and 
counte rfeit cases in the E -commerce field.  
Since 2005, the National Copyright Administration  (NCA) has, along with the M inistry of 
Public Security , the  Ministry of Industry and Information Technology  of China and the 
State Internet Information Office, launched t he "Sword -Net Campaign " to crack down 
on Internet infringement and piracy for more than ten years. In 2015, the NCA has 
launched special campaigns in such fields as network music, on -line cloud storage 
space , smart  mobile terminal third -party applications  (APP)  and Internet reproduction WT/TPR/M/3 42/Add.1  
 
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  respectively . In addition, the NCA also  issued the Circular of Ordering Network Music 
Service Providers to Cease the U nauthorized Dissemination of Music Works, the Circular 
of Regulating the Patent Order of the Network Disk , and the Circular of Regulating the 
Patent Order of the Network Reproduction.  
3.3.7.2 Industrial Property  
3.3.7.2.1 Patents  
Page 105, paragraph 3.215  
86. Could China please provide the figures on the number of graphical user interface applications 
that ha ve been received and how many of these are now registered?  
Reply: No relevant statistic is available yet.  
3.3.7.2.3 Geographical indications  
Page 108, paragraph 3.228  
87. Could China provide information on the progress of establishing a joint recognition m echanism 
for Geographical Indications?  
Reply: At present, the State Administration for Industry and Commerce of China (SAIC), 
the Ministry of Agriculture, the Ministry of Commerce, the General  Administration of 
Quality Supervision, Inspection and Quarantin e (AQSIQ) and other relevant 
departments are conducting communication and internal negotiation, in an effort to 
establish a joint coordination mechanism for Geographical Indications at an early date, 
and negotiate to establish a joint recognition mechanism  for Geographical Indications 
on that basis, and conduct the research work of the joint recognition mechanism for 
Geographical Indications . 
88. Could China also provide specific GI figures for 2015?  
Reply: In 2015, the Trademark Office of SAIC has approved  and registered 
419 geographical indications collective trademarks and certification trademarks. By the 
end of 2015, the number of the registered geographical indications collective 
trademarks and certification trademarks has reached 2984. In 2015, the Min istry of 
Agriculture registered 204 geographical indications of agricultural products, and AQSIQ 
approved 171 geographical indication protection products.  
89. Can China please provide detailed information on the registration process when a single GI is 
registered for protection with different agencies? For example, is a new application required with 
each agency or is the proponent only required to make a single submission?  
Reply: Currently, t here are two models of protection for Geographical Indications  (GI) in 
China, namely, the Special Law protection model and the Trademark Law protection 
model, carried out by the Department of Industry and Commerce in accordance with the 
Trademark Law and its implementing regulations respectively, and conducted by the 
Department of Agriculture and the Department of Quality Control in accordance with 
their regulations. Obligees can voluntarily choose the model of protection according to 
the level of protection model and their self -protection needs. On condition that the 
obligee is the same entity, obligee can register under different systems at the same 
time, thus obtaining different models of protection.   
To obtain different models of registered protection, a single GI  needs to submit applications to 
SAIC, the Ministry of A griculture  and AQSIQ . For instance, to obtain trademark protection, foreign 
applicants should submit the following materials to SAIC, including application form, proxy 
statement, main body qualifications proof, supervision and inspection capability proof, the proof of 
the GI under the tutelage of law in the country of origin in its own name as well as use 
management rules. Chapter Two of the Measures on the Administration of Agriculture Product 
Geographical Indications issued by the Ministry of Agriculture has stipulated relevant procedures 
for agricultural products ' GI registration.  Chapter Two of AQSIQ 's Protection Measures on Foreign WT/TPR/M/3 42/Add.1  
 
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  Geographical Indication Products provides the application and acceptance of the protection of 
foreign geographical indicati ons products in China.  
90. Does China have any mechanism to prevent two different parties registering the same term as 
a GI with different agencies?  
Reply: Yes, China has mechanisms to prevent two different parties registering the same 
term as a GI with d ifferent agencies. For instance, the Ministry of Agriculture verifies, 
based on the provisions of the Measures on the Administration of Agricultural Product 
Geographical Indications , whether the name of the application product (the name of 
agricultural pro duct' geographical indication) has been registered as a common 
trademark, collective trademark or certification trademark. If the name of the 
application product has been registered as a trademark, trademark registrant or 
registered applicant who belongs t o the same enterprise can register. Otherwise, the 
registered applicant should provide the commitment document of the trademark 
registrant. After the registration of GI, the holder of certificate and relevant users of the 
indication can use this name as lo ng as the two sides have no legal dispute. Otherwise, 
the application of the registration will be declined.   
AQSIQ stipulates  in Article 12  of the Protection Measures on Foreign Geographical 
Indication Products , that "the objection period of accepting  the announcement is 
60 days, and is calculated from the date when AQSIQ accepts  the announcement. During 
the objection  period, any domestic and foreign organization or individual  can raise 
written objections to AQSIQ. " 
Under  the protection system  of the T radem ark Law, if the obligees of GI find that their 
rights are violated, they are eligible to maintain their rights  in accordance with the 
Trademark Law through such remedies as  trademark objection, apply for declaring the 
registered trademark void.  
Page 108,  paragraph 3.230  
91. Can China provide details of how the "10 plus 10 " system conforms to international standards 
and how legitimate users of terms sought for GI protection in China have their existing rights 
protected and are engaged in the assessment proce ss? 
Reply: Complying with the definition of WTO/TRIPS,  all the GI products accepted by 
AQSIQ , including China -EU geographical indications "10 plus 10 ", protect domestic and 
foreign GI products equally based on the Provisions on the Protection of Geographic al 
Indication Products and Protection Measures on Foreign Geographical Indication 
Products in terms of the application, acceptance, objection, revocation, technical  review  
and the use of names.  
Page 108,  paragraph 3.230  
92. Australia understands that the EU and China are negotiating a broader bilateral GI agreement 
with the EU, building on from the "10 plus 10 " agreement (see http://europa.eu/rapid/press -
release_IP -12-1297_en.htm ). Can China provide more details about this agreement and when it is 
likely to be finalised?  
Reply: The  negotiation of China -EU Geographical Indications Agreement was launched in 
March,  2011. Up till now, the two sides have conducted 11 rounds of negotiation and 
have reached consensus on most parts of the agreement. China and EU are working hard 
to strive f or an agreement at the earliest date, but having not set any specific timetable.  
3.3.7.5.3 Judicial enforcement  
Page 113, paragraph 3.250  
93. Australia notes China 's extensive enforcement efforts, in particular the introduction of a series 
of specialised I PR Courts. It appears that the jurisdiction for administrative cases applies to all 
trademarks, however the civil jurisdiction only extends to well -known trade mark cases. Could WT/TPR/M/3 42/Add.1  
 
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  China please provide further information on how marks that have not been award ed "well-known " 
status in China access civil case enforcement measures?  
Reply: In 2014, Article 3 of the Interpretation of the Jurisdiction of Trademark Cases 
and the Application of Laws after the Implementation of Revision of Trademark Law laid 
out by the  Supreme People 's Court provides that the first instance of trademark civil 
case should be under the jurisdiction of Intermediate People 's Court and Basic People 's 
Courts designated by the Supreme People 's Court. The civil and administrative cases 
involved  the protection of well -known trademark should be under the jurisdiction of the 
Intermediate People 's Court and other Intermediate People 's Courts designated by the 
Supreme People 's Court in People 's Governments of certain provinces and autonomous 
regions,  cities specifically designated in the state plan and municipalities directly under 
the central government.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.1 Features and market developments  
Page 115,  paragraph 4.1 
94. Is there a policy document that determ ines how the stockpile of grains is regulated to ensure 
price stability?  
Reply: Regulations on the Administration of Central Grain Reserves provide the use of 
central grain reserve. For relevant documents, please refer to the website of the State 
Administr ation of Grain: Notification on the Implementation of Regulations on the 
Administration of Central Grain Reserves and Regulations on the Grain Circulation newly 
revised by the Office of the State Grain Administration.  
Reference Website:  http://www.chinagrain.gov.cn/n316640/n316903/c923045/ 
content.html . 
95. What else is the stockpile of grains used for?  
Reply: In addition to the basic functions of regulating the supply and de mand of grains 
and stabilizing grain market, grain reserves may be used in case of natural disasters 
relief or other emergencies. (Refer to Article 25 in Regulations on the Grain Circulation)  
96. Is there a policy about the turnover of the grain reserve? i .e. How long can a particular 
commodity be held in reserve?  
Reply: According to the Regulations on the Administration of Central Grain Reserves, the 
rotation of central grain reserve shall comply with the principles of ensuring the 
quantity, quality and st orage safety of the central grain reserve, maintaining the 
stability of the grain market, preventing drastic fluctuations of the market prices of the 
grain, saving costs and enhancing efficiency. The Administrative Measures for the 
Rotation of the Central Grain and Oil Reserves for Trial Implementation has stipulated 
the time that each specific grain variety can be reserved in certain regions (starting 
from the time of production): for regions south of the Yangtze River, 2 to 3 years for 
rice, 3 to 4 years for wheat,1 to 2 years for corn, and 1 to 2 years for beans; for regions 
north of the Yangtze River, 2 to 3 years for rice, 3 to 5 years for wheat, 2 to 3 years for 
corn, and 1 to 2 years for beans.  
4.1.3 Policy instruments  
4.1.3.1 Border measures  
Page 117 , paragraph 4.9 
97. Can China please outline the process by which quota licences are distributed between state -
trading enterprises and other importing entities, for wheat, sugar, wool and cotton?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Since China 's accession to the WTO, the Chinese gover nment has seriously 
fulfilled its commitment concerning the tariff -rate quotas (TRQs), and the relevant 
departments have allocated the import tariff -rate quotas of agricultural products in 
accordance with the Interim Measures on the Administration of Impor t Tariff -Rate 
Quotas of Agricultural Products. Every year, the National Development and Reform 
Commission and the Ministry of Commerce publish such information as the total import 
tariff quota, the proportion of state trading, application conditions, alloc ation principles 
and application process on their websites. In terms of the allocation process, after 
receiving the applications of the enterprises, the competent department will allocate the 
tariff quotas to the qualified state trading enterprises and non -state trading enterprises 
in accordance with the quantity applied, historical record of import, production capacity 
and other relevant business criteria. After being allocated with the import tariff quota, 
enterprises can conduct imports independently acc ording to the market condition.  
Page 118,  paragraph 4.10 
98. Can China please advise the proportion of domestic agricultural production that is not subject 
to retail Value Added Tax (VAT) arrangements?   
Reply: The Chinese government has exempted the agricu ltural products produced and 
marketed all by farmers from Value Added Tax (VAT), that is mainly because China 's 
agricultural production takes family as the unit, which is small in scale and scattered in 
production, and most farmers only sell a small amount  of agricultural products in the 
market besides those they keep for self use, and both the quantity and the amount of 
money involved are relatively small, thus the tax sources are difficult to control, the 
amount of tax is limited, and the cost is too high  to levy. The Chinese government does 
not have relevant data.  
99. Is there a definition to what constitutes a 'small -scale farmer ' for the VAT exemption?  
Reply: The Chinese government has exempted the agricultural products produced and 
marketed all by farm ers from Value Added Tax (VAT), that is mainly because China 's 
agricultural production takes family as the unit, which is small in scale and scattered in 
production, and most farmers only sell a small amount of agricultural products in the 
market besides t hose they keep for self -use, and both the quantity and the amount of 
money involved are relatively small, thus the tax sources are difficult to control, the 
amount of tax is limited, and the cost is too high to levy.  
Page 118,  paragraph 4.11 
100. Can China  please explain why it is necessary to apply non -automatic import licensing to all 
agricultural products?  
Reply : The sentence is wrong. At the request of China, the Secretariat has already 
deleted it. Please refer to the revised version of Secretariat Repo rt.  
Page 119,  paragraph 4.17 
101. Can China please provide more information about the following programs, which are 
identified in Table 4.4., including a description of the eligibility criteria for each program as 
appropriate, and the objectives of each p rogram:  
a) Fund for agricultural comprehensive development  
b) Fund for specialized economic cooperatives of farmers  
c) Fund for subsidizing the training of the rural migrant labour force . 
Reply:  For details, please respectively refer to Program No. 50, 43 and 44 of  the 
Notification on Subsidies at central government level for 2009 -2014 
(G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN) . WT/TPR/M/3 42/Add.1  
 
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  Page 123,  paragraph 4.23 
102. Can China explain what changes there will be from products being removed from the 
Catalogue of Gover nment -set Prices but still having minimum prices set by the National 
Development and Reform Commission (NDRC)?  
Reply: Since 2004, China has stopped government pricing for the grains and price are 
formulated by the market. At present, China only imposes the  minimum procurement 
price scheme for the two most important grain products, namely, rice and wheat, with 
the main purpose of ensuring domestic grain supply and national food security, instead 
of controlling the sources of grain.  
Page 123,  paragraph 4.24 
103. How closely linked is the minimum procurement price scheme for grains linked to the volume 
of China 's grain reserve ?  
Reply: The aim of the minimum procurement price scheme is to prevent excessive fall in 
grain price, and protect the interests of farme rs; the policy applies to a few key grain 
varieties in some major grain producing areas, and it has nothing to do with the volume 
of government 's grain reserve.  
104. Does the minimum procurement price fluctuate in direct relation to the volume of grain 
reserve? How does this operate, is it on a sliding -scale?  
Reply: The minimum procurement price is set based on factors including the grain 
production cost. The minimum procurement price scheme for grains has nothing to do 
with the amount of reserves of the go vernment, and the price will not fluctuate with 
changes in the volume of the grain reserve.  
105. What drives a decision to increase or decrease the grain reserve ?  
Reply: The volume of the grain reserve is determined in accordance with the national 
macro -control needs and the financial capacity of the government.  
Page 123,  paragraph 4.25 
106. China reported in its domestic support notification for the calendar years 2009 and 2010 
(G/AG/N/CHN/28) a 10% increase in expenditure under public stockholding.  
a) Can China explain how expenditure under this programme is determined and what is the 
method by which wheat, corn, rice, vegetable oils and sugar are procured and distributed?  
b) What is the price that these products are procured at and how much production is proc ured?  
c) What is the total production of these commodities?  
d) What is the explanation for the increase in public stockholding expenditure between 2009 
and 2010?  
Reply: The public stockholding expenditure for grain security is determined by the actual 
needs o f implementing the programs. Rice and wheat are purchased at the minimum 
procurement price, corn, vegetable oil and sugar are purchased under the temporary 
procurement and stockholding scheme, and the prices reflect the market price level.  
Page 123,  paragr aph 4.25 
107. Can China please provide an update of the operation of the pilot cotton support system 
undertaken in Xinjiang Province, and provide an update on the roll -out of similar cotton support WT/TPR/M/3 42/Add.1  
 
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  programs in Shandong, Henan, Hebei, Hubei, Hunan, Jiangsu,  Jiangxi, Gansu, Anhui and Tianjin 
Provinces?  
Reply: Since 2014, the Chinese government has undertaken the pilot reform of target 
price support in Xinjiang. At present, the pilot project enters into the third year 's 
operation, and has achieved positive re sults. On the one hand, the cotton price is 
determined by the market again, and is closely connected with that of the international 
market. On the other hand, the planting area and yield of cotton has decreased 
obviously, and the production is gradually co ncentrated in the advantageous areas like 
Xinjiang.  
108. Can China clarify to what extent cotton farmers in these provinces are compensated for price 
movements below any target pricing in place?  
Reply : Cotton farmers can receive the payment made at a fixed  rate of 2000 yuan per 
ton in 2014.  
4.1 Agriculture  
4.1.3 Policy instruments  
109. Can China please confirm the value of Chinese international food aid that was provided on a 
cash-based basis in 2015?  
Reply: All the international food aid provided by the Ch inese government is untied 
emergency food aid in response to the United Nations initiative or the affected countries ' 
requests.  
110. Where China provides in -kind international food aid, could China please identify the 
commodities provided in 2015 and also provide a description of the value and quantity of 
commodities provided?  
Reply: China provides international emergency humanitarian food aid directly or through 
WFP to the recipient countries in accordance with their needs, and there is no restriction 
on the grain variety.  
111. If China permits the monetisation of international food aid, could China please outline the 
reasons for allowing monetisation?  
Reply: Australia may have certain misunderstandings of China 's reply to the export 
competition questionnai re. In fact, China has not clearly prohibited the monetization of 
the aided grain in the aid contract. This is mainly for respecting the aided countries. In 
the previous cases of providing food aid, the aid provided by China is on the basis of 
emergency fo od aid, and is tailored to the needs of aided countries in the forms of both 
in-kind food aid and money. Part of the assistance was provided through Word Food 
Programme. These diversified ways of assistance can fully meet various demands of the 
aided count ries. They basically don 't need to obtain money through monetization. 
Therefore, China has not clearly prohibited the monetization of the aided grain.  
4.2.1.2 Regulatory Framework  
Page 126,  paragraph 4.36 
112. Could China provide an update on the impact of  the 2015 amendments to the Provisions on 
the Management of Interconnection between Public telecom Networks?  For example, have the 
number of interconnections provided by the leading telecom business operator (China Telecom and 
China Unicom), particularly t o foreign firms, increased?  
Reply: To streamline administration and delegate power, according to the Decision of 
the State Council on Abolishing  and Delegating to Lower Levels a Batch of 
Administrative Approval Items issued on 28 January 2014, the State Co uncil has lift the 
requirements of "reaching and filing the agreements on the interconnection between 
public telecom networks " and "getting approval for terminating the link -ups". China 's WT/TPR/M/3 42/Add.1  
 
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  telecom authority has accordingly revised relevant clauses in the Pr ovisions on the 
Management of Interconnection between Public Telecom Networks. The revisions 
include: 1. Deleting "formulated by the Ministry of Information Industry " in Article 21 
Paragraph 1; 2. Replacing "and register with the telecom authority " in Arti cle 26 with 
"and report and submit to the telecom authority "; 3. Revising "without the approval of 
the Ministry of Information Industry, telecom operators should not terminate the link -
ups between networks " in Article 38 Paragraph 1 into "telecom operators  should ensure 
the smooth connection between networks, and should not arbitrarily terminate the 
interconnection "; 4. Changing "Ministry of Information Industry " in every Article except 
Article 49 into "Ministry of Industry and Information Technology ".  
The Provisions are specific to the regulation of the interconnection between the 
networks of China 's basic telecom operators, and have no direct impact on foreign 
businesses providing services.  
Page 127,  paragraph 4.40 
113. Could China outline the impact on t he price of telecommunications from implementation of 
the 2014 State Council Resolution that moved from a system where government -guided prices, 
government -set prices and market -adjusted prices were entirely replaced by market -adjusted 
prices?  Could China provide information on how market -adjusted prices are arrived at?  
Reply: In 2014, China 's telecom authority issued the Announcement on the Market -
regulated Prices for Telecom Services. All telecom charges will be regulated by the 
market. Telecom enterprise s can independently determine their specific charge 
standards in line with the market condition and the users ' demand. In practice, the 
implementation of market -regulated prices has helped enterprises to make price 
schedules base on the users ' demand, furt her decreased the telecom charges, and better 
benefited the users. For example, in 2015, the unit bandwidth average charge of fixed 
and wireless broadband and the average charge of mobile traffic have been cut by 61% 
and 43.9% respectively.  
Page 130,  parag raph 4.53 
114. Could China provide an update on the implementation of Guo  Fa [2015] No. 22 which sets 
out the conditions and procedures for the market access of bankcard transaction clearing 
institutions?  For example, how many applications, including appli cations from foreign enterprises, 
have been received and how many have been approved under these rules?  
Reply: After the release of the Decision of the State Council on the Implementation of 
Access Regulation of Bank Card Clearing Institutions (Guo  Fa [201 5] No.  22, hereafter 
referred to as the Decision), the People 's Bank of China (PBOC) formulated the 
supporting Administrative Measures for Bank Card Clearing Institutions (hereafter 
referred to as the Measures ) with the China Banking Regulatory Commission (CBRC) and 
the Ministry of Commerce of the People 's Republic of China (MOFCOM) and released it in 
June 2016. The Measures  further expands on the conditions for the access of institutions 
and specifies the application requirements and procedures. Institutio ns with the 
intention of application are speeding up efforts to improve their applications in 
accordance with the Decision and the Measures . To date, PBOC has not yet received any 
application from relevant institutions. But Visa, Mastercard and other forei gn 
institutions have consulted PBOC about the application for many times. Next, PBOC will 
accept and approve these applications strictly pursuant to the stipulations of the 
Decision and the Measures.  
 WT/TPR/M/3 42/Add.1  
 
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  3  BENIN (ON BEHALF OF THE L DC GROUP)  
The LDC Group is pl eased to submit this communication to launch its participation as a Group in 
the Trade Policy Reviews (TPR) of Members and will seek, through the Trade Policy Review 
Mechanism questions procedure, to better participate in the work of the WTO, as the premie r 
multilateral trading institution. The following questions are calibrated to documents circulated for 
the China TPR this year, WT/TPR/G/342 (Government of China Report) and WT/TPR/S/342 
(Secretariat Report).  
WT/TPR/S/342  
2 TRADE AND INVESTMENT REGIME  
Duty  Free Quota Free Regime  
Page 37 , paragraph 2.23; Page 51 , paragraph 3.17 
The LDC Group welcomes the extension of China's  Duty-Free Quota Free (DFQF) scheme to 97 % 
of its tariff lines as of December 2015. China has become the largest export destination for LDCs 
as a group and account for more than  of total LDCs exports of goods. This enhanced DFQF scheme 
can play a significant role in further strengthening trade relations between China and LDCs and 
China should be praised for taking such an initiative. As wi th any DFQF scheme, however, strict 
rules of origin or specific product exemptions can have significant effects on the effectiveness of 
the scheme.  
The Secretariat Report indicates that as of 1 January 2015, China granted unilateral tariff 
preferences to 40 LDCs. The preferences vary across different LDCs. Of the 40 LDCs granted 
preferences, 24 were granted DFQF treatment on 97% of their tariff lines; 14 on 95% of their tariff 
lines; and the remaining 2 on 62% of their tariff lines. Of the 40 the report no tes that from 
December 2015, China granted DFQF treatment on 97% of tariff lines to only 33 LDCs.  
1. Can China indicate the percentage of China's  overall imports that are comprised of LDC 
products?  
Reply:  here is no such data available.  
2. Which products have been excluded from the scope of the scheme? What are the MFN tariffs 
applied to those products?   
Reply: The remaining 3% of tariff lines mainly include grain, cotton, sugar, chemical 
fertilizer, vegetable oil, alcohol and tobacco, natural rubber, leat her, some organic 
chemicals (diesel oil, alcohol, styrene, caprolactam, etc.), medium and small -
displacement cars and their engines, as well as some wood and paper products. MFN 
tariff rates at 2% -65% are applicable to these products.  
3. This element is of  particular importance in the light of the fact that LDC exports tend to be 
concentrated on a fairly narrow set of products.  
4. Will China include products excluded from its DFQF scheme?  
Reply: There is no such plan at present.  
5. In terms of cotton and i ts derivatives, when and how will China implement the recent Nairobi 
Decision on Cotton?  
Reply: The commitments have been reflected in China's  custom tariffs for 2016.  
6. Is China going to take any step to relax its rules of origin in line with the Nairob i decision on 
preferential rules or/of  origin for LDCs?  WT/TPR/M/3 42/Add.1  
 
- 44 - 
 
  Reply: In respect of preferential rules or/of origin for LDCs, a decision by ministers at 
the meeting held in Nairobi requires that all members notify their latest implementation 
before December 31st, 2016. China Customs plan to revise the current preferential rules 
or/of origin for LDCs within this year and will make timely notification of relevant 
information.  
Is China planning to include bilateral cumulation?  
Reply: China will include bilateral cu mulation for specific LDC members.  
7. Can China identify the 33 countries granted 97 % coverage?  
Reply: The Federal Democratic Republic of Ethiopia, the Republic of Burundi, the 
Republic of Equatorial Guinea, the Democratic Republic of Congo, the Republic  of 
Djibouti, the Republic of Guinea, the Republic of Guinea -Bissau, the Kingdom of Lesotho, 
the Republic of Madagascar, the Republic of Malawi, the Republic of Mali, the Republic of 
Mozambique, the Republic of South Sudan, the Republic of Sierra Leone, th e Republic of 
Senegal, the Republic of Sudan, the Federal Republic of Somalia, the United Republic of 
Tanzania, the Republic of Uganda, the Republic of Chad, the Central African Republic, the 
Islamic Republic of Afghanistan, the Republic of Yemen, the Repu blic of Vanuatu, Union 
of Comoros, the Islamic Republic of Mauritania, the Republic of Togo, the Republic of 
Liberia, the Republic of Rwanda, the Republic of Angola, the Republic of Zambia, the 
Federal Democratic Republic of Nepal, and the Republic of Nige r. 
8. Why does China not offer DFQF to all LDCs in accordance with the Hong Kong DFQF Decision?  
Reply: China is among the first developing countries granting zero tariff treatment to 
LDCs. In 2005, the then Chinese President Hu Jintao announced five major  measures to 
promote China's  economic cooperation with other developing countries at the Summit 
on the 60th Anniversary of the UN establishment and granted zero tariff treatment to 
LDCs that have established diplomatic relations with China for some product s. In 2008, 
the then Chinese Premier Wen Jiabao announced at the High -level Meeting on the UN 
Millennium Development Goals that zero tariff treatment would be granted to related 
LDCs for 95% of their tariff lines imported to China, in order to promote the economic 
development of LDCs. In March 2013, President Xi Jinping announced at the meeting of 
BRICS leaders and African leaders held in Durban of South Africa that China would grant 
zero tariff treatment to LDCs that have established diplomatic relations w ith China for 
97% of their tariff lines and the related measures would be put into place within 2015. 
So far, China has granted zero tariff treatment to 97% of the tariff lines of 33 LDCs that 
have established diplomatic relations and exchanged notes with China. In the future, 
China will gradually extend the scope of the aforesaid treatment to cover other LDCs 
that have established diplomatic relations with China, in light of the performance of 
bilateral notes exchanging . 
3 TRADE POLICIES AND PRACTICES BY M EASURE  
Trade Facilitation  
Page 46 , paragraph 3.2 
The Secretariat Report states that import and export declarations must be made in paper and 
electronic format or through the paperless procedure, and can be made either by a natural person 
or by a customs de claration enterprise.  
9. Is there a distinction or different meaning attached to electronic format and paperless 
procedure? Does the paperless procedure involve more than submission in electronic format? 
Please clarify.  
Reply: Paperless customs clearance means that the customs clearance mode under 
which the customs, on the basis of classified enterprise management and risk analysis, 
classify imported and exported goods according to risk grades, apply information 
technologies to convert the customs' practic e of handling customs clearance formalities WT/TPR/M/3 42/Add.1  
 
- 45 - 
 
  from examining the paper customs declaration forms and attached documents submitted 
by import and export enterprises, into direct paperless examination of the electronic 
data of customs declaration forms and atta ched documents submitted online by 
enterprises for declaration, as well as the inspection and release of goods.  
Since August 1st, 2002, pilot paperless customs clearance reform has been carried out in 
some service sites selected by China Customs; on April 1st, 2014, the General 
Administration of Customs released the Announcement on Further Promoting Paperless 
Customs Clearance  (GACC Announcement [2014] No. 25), and extended the reform 
measures and pilot scope to cover all service sites and service areas of customs all over 
China, thus realizing full coverage of paperless customs clearance reform. Paperless 
customs clearance has been a highly efficient customs clearance mode commonly 
applicable to law -abiding enterprises.  
When paperless customs clearance is i mplemented, free declaration can be made by 
import and export enterprises without limitation by working time or place of customs, 
greatly reducing the time to and from customs sites as well as for waiting.  
Standards  
Page s 62-63, paragraphs 3.60-3.61 
The LD C Group observes that, according to the Secretariat Report, China still maintains a number 
of layers for standards requirements at the national, local, industry and enterprise level.  LDC 
suppliers can be challenged by these layers of requirements, in parti cular mandatory ones.   
10. Does China have technical assistance schemes for LDC traders to meet China's  standards?   
Reply: China is willing to further explore and discuss this issue with related countries.  
Page 66 , paragraph 3.75 
The Secretariat Report ref ers to 22 mandatory certification bodies in China and the procedures for 
certification.  
11. If these procedures apply to LDC products destined for import into China, does China have 
technical assistance and capacity building programmes that enable LDC expo rters to comply with 
the certification procedures?  
Reply: China may provide technical assistance, training and other programs to LDCs 
according to the arrangement by the Ministry of Commerce of China at the request of 
foreign parties.  
Page 71 , paragraphs 3.84-3.91 
Besides tariff barriers, non -tariff measures including sanitary and phytosanitary (SPS) measures 
can have a significant effect on LDCs exports. Given their limited financial, human and technical 
capacities, compliance with international SPS stand ards and other requirements in importing 
markets is a constant challenge for LDC exporters. Capacity to meet SPS requirements is 
particularly important for high -value agri -food products, including fisheries. According to the 
Secretariat report, China made some 417 SPS notifications between 2013 and January 2016.  
12. Does China have programmes to assist LDC traders to meet China's  SPS requirements?  
Reply:  China has programmes to assist LDC traders to meet China's  SPS requirements.  
Intellectual Property Righ ts 
Page 106 , paragraph 3.216; Page 107 , paragraph 3.220  
During the Trade Policy Reviews of Members, LDCs would like to learn the extent of LDC 
participation in the economies of Members to better gauge LDC integration into the multilateral 
trading system an d their ability to avail themselves of the trade tools afforded by their WT/TPR/M/3 42/Add.1  
 
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  membership in the WTO, as well as potential to use them. The Secretariat Report reveals progress 
in China's  reforms and implementation of intellectual property rights, in particular p atents and 
trademarks.  
13. Has China received any filings from any LDC nationals for patents or trademarks?  
Reply: Yes, China has received filings from LDCs for patents, and granted patent rights 
to those meeting the conditions.  
14. If so, have any of the m been granted?  
Reply: For example, the State Intellectual Property Office received an industrial design 
application from a Benin applicant in 2011, the patent was granted in 2012. Please refer 
to the official site of the State Intellectual Property Offic e at http: //www.sipo.gov.cn  for 
all patent applications published or patents announced by the State Intellectual Property 
Office.  
15. Can China treat any future filings from LDCs favourably through technical assista nce schemes 
as well?  
Reply: In recent years, the State Intellectual Property Office of China has been actively 
engaged in providing technical assistance to developing countries, specially including: 
(1) providing dozens of trading courses  of intellectual p roperty in China for hundreds of 
trainees in total; (2) dispatching examination experts to intellectual property agencies 
of some developing countries to support their efforts in cultivating patent examination 
talents; (3) providing patent retrieval and ex amination services on behalf of some 
developing countries; (4) cooperating with developing countries in cloud patent 
examination system (CPES), and patent retrieval and analysis system, sharing patent 
information and data, etc. In the future, China will co ntinue to provide support and 
assistance to developing countries in their intellectual property capability building.  
4 TRADE POLIC IES BY SECTOR  
Agriculture  
Page 116 , paragraphs 4.2-4.3 
While a number of China's  population suffers from food insecurity, the Secretariat report notes 
that the country has achieved impressive progress in reducing undernourishment over the last few 
years and deserves to be praised for such achievements. The LDC Group welcomes in particular 
the fact that China has gradually liberal ized the price of most agricultural products including on 
sugar, and tobacco leaf, as indicated in the Secretariat Report. The Group also welcomes 
information that payments under the four main subsidy schemes have lately remained relatively 
stable.  
16. The LDC Group wishes to know if any of the support measures China has in place that are 
described in the Secretariat Report have trade impact or effect on products of specific interest to 
LDCs, including grains, cotton, sugar or tobacco?  
Reply: The support measures by China cover products including grains, sugar and 
cotton. These measures are targeted at protecting the livelihood of farmers against the 
negative impacts of subsidized imports, and safeguarding food security.  
Page 123 , paragraph 4.25 
As a major  importer of cotton, China represents a critical export market for cotton producing LDCs. 
The LDC Group welcomes recent attempts by China at reforming its stockholding program for 
cotton. However the Secretariat Report indicates that the cotton subsidy was  extended to nine 
other provinces, whereby it is not clear what kind of subsidy applies to these provinces and that a 
target price is applied.  
17. Has China released its stocks domestically or on the world market?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China is handling cotton stocks i n its domestic market.  
18. Does China consider that there are any trade distorting effects of these new cotton subsidies 
for LDC exporters?  
Reply: The support measures for cotton are not targeted at the cotton export of LDCs.  
Services  
Page 127 , paragraph 4.43 
The LDC Group congratulates China on its progress in the provision of universal 
telecommunications services which, according to the Secretariat Report, has resulted in telephone 
and broadband networks covering all rural areas.   
19. Does China expect to  deploy similar capacity building initiatives in LDCs to assist them in their 
efforts to provide universal services in rural areas?  
Reply: China is working on pilot universal telecommunication services in order to 
promote broadband network construction and  development in rural and remote areas 
and ensure equitable access to basic public services of urban and rural areas. These 
services are currently targeted at rural areas in China. At the same time, to improve the 
informatization level of LDCs and help the m get rid of the LDC status, China has been 
dedicated to promoting cooperation between Chinese information communication 
enterprises and LDCs in the construction of information communication infrastructure 
and other aspects. In the future, China will conti nue to focus on promoting deep 
cooperation in infrastructure construction between Chinese information communication 
enterprises and LDCs in Africa and Asia, and help LDCs popularize internet and improve 
the level of informatization.  
Page 130 , paragraph 4.51 
The Government policy statement and the Secretariat report section on financial services describe 
a number of progressive developments and staged liberalization efforts by China, including with 
respect to certain non -bank activities.   
20. How does China' s regime treat foreign check cashing and money transfer services?  
Reply: Foreigners may have access to foreign check cashing and money transfer services 
from any banking financial institution legally established in China.  
Paragraph 1.43  
The LDC Group also  notes that the Secretariat Report states that China's  imports of transport 
services account for 16% of China's  services imports. In addition, Box 2.2 in the Secretariat Report 
reveals that China has included in its investment Catalogue for 2015 Industries  that are no longer 
restricted to Sino -foreign equity/cooperative joint venture operations or equity shareholding 
requirements (i.e. Chinese parties as the controlling shareholders) or for which these restrictions 
have been somewhat relaxed: services secto rs such as construction and operation of urban 
subway, light rail way and other modes of track transport and operation of performance sites.   
21. In relaxing restrictions in these sectors, does China have programs or incentives to include 
participation fro m LDC suppliers?  
Reply: Investment by enterprises from all countries is welcome while China opens up 
wider to outside world, including those from LDCs.  WT/TPR/M/3 42/Add.1  
 
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  WT/TPR/G/342  
Page 9 , paragraph 2.21 
China mentions that a/the number of practitioners in the service se ctor has steadily increased, 
citing among the reasons for this progress, reduced costs like tax and fees having stimulated 
market vitality.   
1. What kind of fees have been reduced for new services suppliers?  
2. Are any of the practitioners LDC services su ppliers having benefited from reduced fees?  
Reply to Questions 1 -2: In recent years, the Chinese Government has made further 
efforts to sort out and standardize charges. During the office of the current government, 
496 items of administrative undertaking charges and governmental funds were 
cancelled, waived or exempted accumulatively at the central level, and over a thousand 
local administrative undertaking charges were cancelled or exempted accumulatively at 
the provincial (district/municipal) level. Acco rding to statistics, enterprises and 
individuals were relieved from a burden of more than RMB 150 billion each year. Now 
only 99 charges at the central level are maintained. This reform achievement will also 
benefit the service providers and other supplier s from LDCs.  
Page 19 , paragraph 3.28 
The LDC Group welcomes China's progress to streamline port clearance procedures and set up 
single window. China indicates that this included changes from "tandem" to "parallel" type 
clearance procedures.   
3. Can China e xplain the differences between these types of procedures?  
Reply: According to the actual situation of the port management system in China, a 
seaport sees 4 law enforcement departments (customs, border inspection, inspection & 
quarantine and maritime affair s); an airport, rail port and road port generally sees 3 law 
enforcement departments (customs, border inspection, inspection & quarantine). Goods, 
transport vehicles and persons need to respectively declare and present documents and 
data to 3 to 4 law enfo rcement departments, resulting in multiple and repeated 
declaration. Since China implemented the single -window measure in 2014, enterprises 
have been allowed to submit documents and data required by several law enforcement 
departments through a single wind ow platform for only once, and the platform will 
automatically send the data to each law enforcement department and feedback the 
handling results to the single window platform. In this way, enterprises dont have to 
handle formalities among several law enfo rcement departments, submit documents 
respectively and wait for the examination and approval results on site, etc., thus saving 
a large amount of labour  and time. Therefore, the clearance procedure has been 
changed from the "tandem" to "parallel" type.  WT/TPR/M/3 42/Add.1  
 
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  4  BRAZIL  
WT/TPR/S/342  
Page 8,  paragraph 2 
1. The Secretariat affirms that "measures were introduced to discourage or reduce production in 
industries such as iron and steel, electrolytic aluminum, cement, plate glasses and vessels ". Could 
China clarify which me asures were introduced?  
Reply: For steel, the Opinions of the State Council on Reducing Excess Capacity in the 
Steel Industry to Achieve Development by Solving the Difficulties (Guo Fa [2016] No. 6) 
requires that the market should serve as a check, the ro le of enterprises as the major 
actors be brought into full play, and efforts be made to ensure the exit of steel capacity 
that cannot meet the requirements according to laws and regulations, through strict 
implementation of laws, regulations and industrial  policies on environmental protection, 
energy consumption, quality, safety and technology. The equipment of obsolete capacity 
must be dismantled.  Law enforcement and supervision should be strictly implemented, 
the "blacklist " of bad records be timely relea sed for better information disclosure and  
public 's supervision. Support should be provided to the hiving -off and reemployment of 
personnel as a result of local endeavo ur to reduce overcapacity.  
For electrolytic aluminium, the Guiding Opinions of the Gener al Office of the State 
Council on Creating a Favorable Market Environment to Promote Structural Adjustment, 
Transformation and Increases in Benefits in the Non -Ferrous Metal Industry (Guo Ban Fa 
[2016] No.  42) requires that efforts be made to strengthen fa ir and impartial law 
enforcement in environmental protection, energy conservation, quality, safety and 
technology, to ensure the exit and disposal of excess capacity according to laws and 
regulations, and guide the transfer and exit of uncompetitive capaci ty.. 
For cement, plate glasses and other industries,  the Guiding Opinions of the State Council 
on Promoting Steady Growth, Structural Adjustments and Increased Efficiency of the 
Building Materials Industry (Guo Ban Fa [2016] No. 34) put forward specific 
requirements that expansion of production capacity shall be strictly prohibited and  
outdated production capacity be closed down. Specifically, the requirements include 
severe measures such as strictly prohibiting the record -filing of new production capacity 
(cement and other investment projects are not subject to examination and approval, but 
only to record -filing);  the projects failing to engage in production capacity displacement 
according to stipulations thus resulting in new production capacity shall be s eriously 
investigated and penalized, and departments for land resource management, 
environmental protection and quality inspection shall not support these projects; where 
a project violates regulations, its application for production permit shall not be 
accepted, and, in case that its application has been accepted, the permit shall not be 
granted.  
Page 8,  paragraph 5 
2. The Secretariat underlies that "The PBOC has also guided financial institutions to raise the 
proportion of credit granted to rural projects  and to small and micro businesses by establishing an 
incentives mechanism ". What were the policy instruments used by the Government to guide the 
financial institutions? Could China provide an assessment of the results of that new guideline?  
Reply: From 2 011, PBOC has carried out assessment on the guiding effects of credit 
policies for agriculture, rural areas, farmers, small and micro -sized enterprises and 
conducted comprehensive evaluation on the services provided by financial institutions to 
agriculture , rural areas, farmers and small and micro -sized enterprises. The main 
purpose of the assessment was to provide objective references for financial institutions 
to assess their services provided to agriculture, rural areas, farmers, small and micro -
sized en terprises and guide financial institutions to optimize business flows and create 
innovative financial products. The assessment results were not linked with other policies 
and had no mandatory constraints over financial institutions.  WT/TPR/M/3 42/Add.1  
 
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  Page 9,  paragraph 10 
3. According to the Secretariat report: "the authorities are aware that some risks to future growth 
and development persist, including aggregate debt levels "; "they have identified a roadmap to deal 
with risks and achieve  stable medium -term growth through a  number of measures to strengthen 
the role of the market "; "other proposed measures, on the other hand, such as increasing financial 
support to the real economy, especially credit support to key and weak areas, and supporting the 
development of strategic e merging industries, would seem to point in a different direction ". Could 
China identify the strategic emerging industries being supported? What is China 's assessment of 
the outcomes of those policies so far?  
Reply of a -d: As stated in Article 10 of the Pro tocol on the Accession of China, China 
shall eliminate all subsidy programmers falling within the scope of Article 3 of the SCM 
Agreement upon accession. China has hono ured its commitment to the WTO and 
performed its obligations under the WTO agreements. D etails of the support measures 
for strategic emerging industries can be found in Program No.  81 of the Notification on 
Subsidies at central government level for 2009 -2014 (G/SCM/N/220/CHN, 
G/SCM/N/253/CHN, G/SCM/N/284/CHN) submitted by China.  
Page 10, paragraphs 13/14  
The Investment Catalogue, which is revised periodically, remains the main instrument used to 
guide FDI in China. Under the Catalogue, foreign investment projects are classified as encouraged, 
restricted or prohibited. Projects that fall outsi de of these three groups are permitted. Projects in 
the encouraged category are eligible for preferential treatment. During the period under review, 
China has continued encouraging FDI as well as joint ventures between Chinese and foreign 
companies, partic ularly in areas in which it has a strategic interest. FDI has been encouraged in 
areas such as high -end manufacturing, high -tech industries, service industries, new energy, and 
energy -saving environmental protection industries. It has also encouraged FDI i n the central and 
western regions, where projects may benefit from favourable policies.  
4. What are the criteria used by China in order to establish priority sectors and regions?  
Reply : Details can be found in Program No.  7-10 and 11 of the Notification o n Subsidies 
at central government level for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, 
G/SCM/N/284/CHN) submitted by China.  
5. How is discretion exercised by Chinese authorities in order to recognize eligible projects?  
Reply : Details can be found in Pr ogram No.7 -10 and 11 of the Notification on Subsidies 
at central government level for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, 
G/SCM/N/284/CHN) submitted by China. Please also note that the tax policies 
mentioned in Program No. 7 -10 are a transitional preferential policy for foreign -invested 
enterprises after the implementation of the new Enterprise Income Tax Law in 2008, 
and will be invalidated at the expiration of the transitional period. After that, foreign -
invested enterprises will enjoy the same p referential enterprise income tax as that for 
domestic enterprises and there will be no tax preferential treatment tailored to foreign -
invested enterprises.  
Page 14,  paragraph 31 
6. The Secretariat informs that "amended regulations on the administration of  foreign -invested 
banks, in effect since January 2015, further ease market access for foreign banks ". Did the new 
regulations result in an increased presence of foreign banks in China? How does China evaluate 
the results of the amended regulations so far?  
Reply: The newly revised Regulations of the People's Republic of China on the 
Administration of Foreign -funded Banks entered into force  in January 2015. Based on 
the actual establishment and operation of foreign -funded banks in China, the revised 
Regulatio ns further opens up and lower entry barriers to provide a more relaxed and 
convenient policy environment for foreign -funded banks ' businesses in China under the WT/TPR/M/3 42/Add.1  
 
- 51 - 
 
  precondition of strengthened effective regulation. The revised Regulations firstly 
eliminated t he requirement that foreign corporate banks or branches of foreign banks 
have to maintain a representative office within the Chinese territory for over two  years 
before they can establish foreign -corporate banks and branches of foreign banks in 
China, allo wing them to make an independent choice of establishing operational or non -
operational institutions first according to business principles. The revised Regulations 
also removed the RMB  100 million minimum working capital requirements for branches 
of a whol ly foreign -funded bank or a Chinese -foreign joint venture bank, enabling the 
banks to allocate working capital effectively among branches based on their actual 
business requirements. According to the revised Regulations, the minimum operation 
period requir ement for business institutions of foreign -funded banks first applying to 
conduct RMB businesses in China was lowered from three years to one  year, and the 
two-year profit -making requirement was eliminated, making it easier for the willing 
operational fore ign funded banks to apply to conduct RMB businesses in a shorter period 
of time.  
Page 19,  paragraph 1.11 
7. According to the Secretariat report, "the IMF considers that the official budget deficit is not a 
good indicator of the fiscal stance since fiscal developments continue to be dominated since 2008 
by off -budget activity, mainly off -budget spending ". Could China provide an assessment of the off -
budget spending impact on the fiscal stance?  
Reply: According to the requirement to promote full -covered bud get management, China 
has included all off -budget income into budget management since 2011. Currently, the 
concept of "off-budget expenditure " no longer exists in China, and all fiscal 
expenditures have been included in budget integrated management. Thus, the fiscal 
balance of payments condition and deficit listed in the current budget are real, which 
can reflect the actual condition of China. Specifically, China has arranged 
RMB 2.18 trillion R MB of fiscal deficit for 2016, an addition of RMB 560 billion c ompared 
with that of last year, and the deficit rate has increased to 3%. Among them, the central 
fiscal deficit amounts to RMB 1.4 trillion, local fiscal deficit RMB 780 billion and the local 
special bonds RMB 400 billion.  
We believe that  it is inappropri ate for IMF to include the net income from land sales and 
the expenditures of Local Government Funding Vehicle in fiscal deficit and put forward 
the concept of "extended deficit ". The main reasons are as follows: first, land transfer is 
a transfer of one t ype of assets, gaining cash flow through the transfer of the right to 
use the land, which has nothing to do with the deficit. The inclusion of land transfer 
revenue in the government fund budget management enables the local governments to 
decide the expend itures according to the incomes in line with the principle of "more 
income, more spending; less income, less spending; no income, no spending ". It will 
constitute no financial risk, nor deficit. Second, in line with the Budget Law and the 
Notice of the Sta te Council on Strengthening Local Government Debt Management (Guo 
Fa [2014] No.  43), efforts should be made to separate Funding Vehicle  from government 
finance . The corporations should conduct market -oriented operation and financing to 
internalize the risk s. The government takes limited responsibilities according to the 
amount it invests, and it is not appropriate  to include its spending in deficit.  
Page 22,  paragraph 1.23 
8. Could China clarify what kind of measures it intends to adopt to deal with overca pacity in 
sectors such as steel, aluminum, coal, glass and other building materials?  
Reply: The question is the same as Question 1. Please refer to the reply to Question 1.  
Page 23,  paragraph 1.28 
9. The Secretariat affirms that "The last few years have wi tnessed a rapid increase in monetary 
indicators. Domestic credit expanded at an annual average rate of 16.1% between 2011 and 2014. 
At end -October 2015, the broad money supply (M2) stood at RMB 136.1 trillion, slightly over WT/TPR/M/3 42/Add.1  
 
- 52 - 
 
  200% of GDP, having increased by  13.5% year -on-year". Could China comment on the current 
aggregate debt levels and the sustainability of the credit support for the economic activity?  
Reply: China 's debt level, especially the debt of the non -financial sectors has increased 
at a faster pac e. The debt ratio, however, should be considered on an objective basis 
under different situations. Since the economic structure, stage of development and 
national conditions vary in different economies, we cannot make a simple analogy of 
debt ratio. China should pay attention to the following three factors: 1) China has a high 
national saving ratio. Large savings are converted to debts via financial intermediaries; 
2) China 's capital market has yet to be mature, indirect financing, debt financing in 
particu lar, remains an important way to raise money; 3) Per capita wealth in China is 
relatively small. Insufficient wealth accumulation makes more Chinese enterprises 
resort to debt financing. As China is conducting economic restructuring and reform, it 
has full  confidence in controlling its debt level while maintaining steady economic 
growth.  
Having adhered to the prudent, neutral and moderate monetary policy in recent years, 
the PBOC makes pre -emptive adjustments and fine tuning of its monetary policy 
accordin g to the changing prices and economic situation. By making flexible adjustment 
of the growth of M2, the PBOC keeps the inflation within a reasonable range, 
maintaining a moderate growth of monetary loans with no sudden changes in the 
increase of M2 supply and credit growth. M2 increased at a rate of around 13% from 
2011 to 2015, averaging 13.3%, 2.6 percentage points faster than the average growth 
of nominal GDP. The average growth of RMB loans over the same period is 14.6%, 
almost in line with M2 growth, w hile CPI grows at 2.8% on average, both of which are 
kept within the reasonable range. M2 is expected to increase at about 13% in 2016, 
which is still a prudent arrangement.  
Page 23,  paragraph 1.29 
10. The Secretariat underlines that "China has continued to maintain a managed floating exchange 
rate regime, which takes a basket of currencies as reference. Since 2013, the PBOC has pushed 
forward reform to let the market play a more decisive role in exchange rate formation ". How does 
China assess the results of the exchange rate reforms being implemented?  
Reply: China has continued to push forward market -based reform of RMB exchange rate 
formation in a safe and orderly manner since 2013. On March 17, 2014, the fluctuation 
range of RMB against US$ was widened from 1% to 2%. Since July 2014, China has 
removed the floating range restrictions over banks on US$ quotations  to their 
customers. Since 2015, the PBOC has further strengthened the market supply and 
demand -based mechanism that adjusts exchange rates in ref erence to a basket of 
currencies. On 11  August  2015, the PBOC improved the quotation mechanism of the 
central parity of RMB against US$, and enhanced the role of market supply and demand. 
On 11 December 2015, the release of the CFETS RMB exchange rate inde x increased the 
reference to a basket of currencies, so as to better maintain the basic stability of RMB 
exchange rates against a basket of currencies. Currently the formation mechanism of 
the central parity of RMB against US$ based on "the closing rate +  the changing rate 
against a basket of currencies " has taken shape, which has well balanced the relations 
among the trend of market supply and demand, maintaining basic stability against a 
basket of currencies and stabilizing market expectations.  
Generally speaking, the reform of RMB exchange rate formation mechanism has made 
significant progress with the market playing a more decisive role in exchange rate 
formation. The RMB  exchange rate  against the US$ has moved in  both ways  with 
improved  flexibility.  The RMB exchange rate against a basket of currencies has been 
basically stable on a reasonable and equilibrium level, playing an important part in 
promoting international balance of payment and economic restructuring, and 
strengthening the resilience of macro -economy in cushioning external shocks. At the 
end of June 2016, the central parity of RMB against US$ appreciated 24.81% compared 
with the level of 2015 when the exchange rate reform was conducted. CFETS RMB 
exchange rate index was 95.02, while the RMB ex change rate indexes in reference to the 
BIS currency basket and the SDR currency basket were relatively stable, trading at WT/TPR/M/3 42/Add.1  
 
- 53 - 
 
  96.09 and 95.76, respectively. Of 244 trading days throughout 2015, the RMB fell 
against the US$ in 138 trading days, while appreciat ed against the dollar in 106 days. 
China 's current account surplus to GDP in 2015 had fallen to 2.7% from its peak of 10% 
in 2007, which falls within an internationally recognized reasonable range.  
Page 23,  paragraph 1.30 
11. According to the Secretariat report, "in 2015, direct trading between the RMB and the Swiss 
Franc was launched. The PBOC has also continued to promote direct trading between the RMB and 
other currencies ". Could China provide the list of currencies that can be traded directly with the 
RMB? Could China provide figures for the amount of direct trading between currencies in the last 
few years? Could China assess the results of the direct trading agreements signed?  
Reply: After the outbreak of the international financial crisis in 2008, th e fluctuations in 
the exchange rates of major international currencies increased. In order to avoid the 
risks to bilateral economic relations and trade caused by fluctuations in the exchange 
rates of third -party currencies, demands for settlement in local currencies and the direct 
trading between currencies gradually appeared in the market. To meet market needs, 
since 2010, PBoC has successively launched the direct trading between the RMB and 
other currencies in the interbank foreign exchange market. Curren tly, the 12 currencies 
listed in the interbank foreign exchange market in China for direct transaction include 
the US dollar, the Euro, the Japanese yen, the Pound Sterling, the Australian dollar, the 
New Zealand dollar, the Singapore dollar, the Swiss Fra nc, the Russian ruble, the 
Malaysia Ringgit, the South African Rand and the Korean Won. The market and the 
media view the direct trading between the RMB and other currencies positively. It is 
widely believed that it will help to reduce the currency convers ion cost s and deepen 
bilateral economic and trade contacts and financial cooperation.  
The historical  data concerning  the direct  trading  between  the RMB and the 
above -mentioned  currencies  are available  in open  market  information.  Among  them,  the 
"monthly  report on spot RMB-foreign  exchange  rates " of the market  information  section  
of chinamoney.com.cn  provides  monthly  data on the transaction  volumes,  weighted  
prices  and number  of transactions  of the direct  trading  between  the RMB and the above -
mentioned  curre ncies;  the quarterly  China  Monetary  Policy  Report  of the Central  Bank  
provides  quarterly  transaction  volumes  between  the RMB and various  currencies  and 
other  relevant  information.  
China has never entered into any agreements with any countries or territorie s on the 
direct trading of the RMB. As mentioned above, the direct trading between the RMB and 
other currencies has been developed to meet the market needs. Some countries adopt 
certain foreign exchange controls over their currencies, and foreign exchange 
transactions face obstacles in capital settlement. In order to eliminate unnecessary 
limitations, the monetary authorities on both sides engaged in some cooperation before 
but did not sign any agreements for it. In the future, if demands or voices for the direct 
trading between other currencies and the RMB appear in the market, China will continue 
to support the Chinese foreign exchange market to develop the direct trading between 
the RMB and other currencies, and is willing to strengthen cooperation with t hese 
countries and territories to facilitate bilateral economic and trade development.  
Page 25,  paragraph 1.36 
12. The Secretariat states that "during the period under review, the SAFE continued to take 
measures to liberalize the capital account and move t owards convertibility ". Could China provide 
the list of those measures? What are the next steps towards capital account convertibility?  
Reply : 
1) Reform the foreign exchange management system for qualified foreign institutional 
investors (QFII). In Februar y, the State Administration of Foreign Exchange issued the 
Provisions on the Administration of Foreign Currencies of Investments in Domestic 
Securities by Qualified Foreign Institutional Investors  (the State Administration of WT/TPR/M/3 42/Add.1  
 
- 54 - 
 
  Foreign Exchange announcement [2016] No.  1), which relaxed the upper quota limit of 
an individual QFII, in order to simplify the procedures of quota approval and further 
facilitate inward and outward remittance of capital.  
2) Push forward the macro -prudential reform of foreign debts. In January 2016, the 
PBOC issued and implemented the Circular on Expanding the Macro -prudential 
Management Pilots of Full Coverage Cross -border Financing (Yin Fa [2016] No . 18) with 
the support of the State Administration of Foreign Exchange, allowing 27 p ilot financial 
institutions and enterprises registered in four free trade zones to carry out independent 
local or foreign currency cross -border financing within the cross -border financing upper 
limit matched with their respective assts or net assets. In Ma y, the PBOC issued the 
Circular of the PBOC on Implementing the Macro -prudential Management Policy of the 
Full Coverage Cross -border Financing Nationwide (Yin Fa [2016] No.  132) with the 
support of the State Administration of Foreign Exchange, extending th e macro -
prudential management policy of full coverage cross -border financing to the whole 
country, which increased financing channels for domestic market players and reduced 
the cost of financing.  
3) Promote the opening up of the  inter -bank bond market. I n May 2016, the State 
Administration of Foreign Exchange issued the Circular of the SAFE on Foreign Exchange 
Management for the Investment by Foreign Institutional Investors in Domestic Inter -
bank Bond Market (Hui Fa [2016] No. 12). In April 2016, the Stat e Administration of 
Foreign Exchange issued the Circular of the SAFE on Further Facilitating Trade 
Investment and Improving Authenticity Verification (Hui Fa [2016] No. 7), and the 
Circular of the SAFE on Reforming and Regulating Settlement Management Poli cy of 
Capital Projects (Hui Fa [2016] No. 16) in June.  
Next, the State Administration of Foreign Exchange will continue deepening the reform 
of foreign exchange management, maintaining the management system of foreign debts 
and cross -border capital flows u nder the sound and macro -prudential framework, and 
pushing forward the capital account convertibility of the RMB in an orderly manner.  
Page 31,  paragraph 1.48 
13. According to the report, "on the supply side, the authorities have stated that they are inten t on 
cutting surplus production capacity and inventories ". Could China provide examples of the 
measures undertaken so far in order to cut surplus production capacity?  
Reply: The question is the same as Question 1. Please refer to the reply to Question 1.  
Pages 38 -39, Box 2.2 "Summary of the major changes in the 2015 Investment 
Catalogue " 
14. The Secretariat lists areas included in the Prohibitive Category by China 's Government. 
Although it registers the withdrawal of the prohibition of research and developm ent of genetically 
modified varieties, among others, the list includes the prohibition of "seed selection of genetically 
modified varieties ". Given existing scientific evidence on the safety of such seed selection, as well 
as China 's efforts to comply with  international standards, please provide additional clarifications for 
the prohibition of seed selection of genetically modified varieties.  
Reply: First, China has clear policies about genetical modification: stud ying proactively, 
spreading prudently, man agement according to law and ensuring safety. Second, 
according to Regulations on Administration of Agricultural Genetically Modified 
Organisms Safety, offshore companies who i ntend to export Agricultural Genetically 
Modified Organisms to China need to mak e sure the products are approved in the 
country o f origin of export before applying for safety review. This institutional 
arrangement aims to prevent the technological risk of genetical modification and make 
sure the safety of Genetically Modified products ; it is not prohibitive regulation on 
transgene technology. Third, genetically modified cotton has already been widely 
planted in China. China 's relevant regulations are for the safety of Genetically Modified 
products.  WT/TPR/M/3 42/Add.1  
 
- 55 - 
 
  Page 39,  paragraph 2.29 
15. In 2015, China published a Catalogue for the Guidance of Foreign Investment Industries with 
some very specific changes in comparison to the Catalogue released in 2011. In order to better 
understand what these changes mean in terms of market access, could China prov ide more details 
on the policies in place to guide FDI into the "encouraged" sectors?  
Reply : Details can be found in Program No.  7-10 and 11 of the Notification on Subsidies 
at central government level for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, 
G/SC M/N/284/CHN) submitted by China. Please also note that the tax policies 
mentioned in Program No. 7 -10 are a transitional preferential policy for foreign -invested 
enterprises after the implementation of the new Enterprise Income Tax Law in 2008, 
and will be  invalidated at the expiration of the transitional period. After that, foreign -
invested enterprises will enjoy the same preferential enterprise income tax as that for 
domestic enterprises and there will be no tax preferential treatment tailored to foreign -
invested enterprises.  
Pages 39/40,  paragraph 2.30 
16. In the wake of an Opinion issued by the State Council in 2015, China will gradually implement 
the use of two negative lists for FDIs. Are the types of measures that will be addressed by the 
market acces s negative list the same as those listed, for instance, in GATS Article XVI?  
Reply: The Market Access Negative List will clearly specify the sectors, areas and 
businesses prohibited or restricted from the market within the territory of the People's 
Republ ic of China, and a series of institutional arrangements for governments at various 
levels to take corresponding management measures according to laws. The sectors not 
listed in this Negative list are open to all the market players. This negative list is in  
compliance with the WTO rules and China 's commitment on the schedule of the GATS. 
The measures listed in this negative list are categorized based on China 's domestic 
sectors, which is not corresponding to the categories listed in Article 16 of GATS. For 
Details please refer to the Draft Negative List for Market Access  (pilot edition) published 
in April 2016 for details.  
17. Could China provide more information on how these negative lists will relate to the Catalogue 
for the Guidance of Foreign Investment Industries?  
Reply: The Special Administrative Measures for Access of Foreign Investment to Pilot 
Free Trade Zones (the "Negative List ") specified the special administrative measures for 
access of foreign investment that do not conform to national treatmen t and other 
principles. Currently, the Measures are only applicable to the four Pilot FTZs in Shanghai, 
Tianjin, Guangdong and Fujian. The sectors other than those specified in the Negative 
List will be managed in accordance with the principle of treating domestic and foreign 
investors equally within the FTZs. The Catalogue for the Guidance of Industries for 
Foreign Investment (the Investment Catalogue) is applicable to investments within the 
territory of China by overseas investors. Currently, foreign inve stors need to abide by 
China 's laws and regulations when investing in China, including the Investment 
Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list ma nagement 
system for foreign investment.  
Pages 43/44, paragraphs 2.43 to 2.46  
18. According to paragraphs 2.43 and 2.46, "China still offers various tax incentives to promote 
sectors deemed beneficial to the development of its economy " and "incentives are a lso granted to 
companies importing technologies or products included in the Catalogue of Encouraged Technology 
and Product Imports ". Could the Chinese delegation clarify whether aircraft production is one of 
those sectors eligible for tax incentives, prefe rential interest rate or any other form of incentive 
under the Enterprise Income Tax Law?  WT/TPR/M/3 42/Add.1  
 
- 56 - 
 
  Reply: Aircraft production is not eligible for tax incentives under the Enterprise Income 
Tax Law.  
19. In paragraph 2.46 it is stated that the mentioned support is financed through a special fund 
set up by the Government to promote economic development and trade. According to the 
authorities none of these preferential policies are currently in place. Despite the fact that these 
preferential policies are not currently  in place, does the Special Fund of Foreign Economy and 
Trade Development mentioned in footnote number 55 still exist? What is the source of its funding 
and its current budget? How are the resources applied?  
Reply: For more details, please refer to the Program No.  39 in Central Subsidy 
Notification for the period 2009 -2014 (G/SCM/N/220/CHN , G/SCM/N/253/CHN , 
G/SCM/N/284/CHN).  
Page 44,  paragraph 2.47 
20. As mentioned in the Secretariat 's report, preferential tax treatment continues to be provided 
under the E IT Law for both foreign - and domestic -invested enterprises under certain 
circumstances (Table 2.2).  
This Law allows for tax reduction, the application of an accelerated depreciation method or the 
shortening of the depreciation period when the depreciation of a fixed asset is accelerated. In 
Table 2.2 it  is informed  that high and new technology enterprises are among the eligible actors for 
preferential tax treatment.  
(i) What are the parameters companies must meet in order to be recognized as high and new 
technology enterprises? Are there thresholds for R&D expenses and number of R&D personnel? 
What are the thresholds?  
Reply: According to the Administrative Measures for the Determination of High and New 
Technology Enterprises ，the determination of high and ne w technology enterprises 
should satisfy some certain conditions, such as time of registration, R&D expenses and 
the percentage of R&D personnel.  
According to the measures, the standards for R&D expenses are: the ratio of its total 
R&D expenditure in 3 late st accounting years to its total sales revenue should meet the 
following requirements: 1. If the sales revenue of the enterprise during the last year is 
less than RMB 50 million, the proportion shall not be lower than 5%; 2. If the sales 
revenue of the ent erprise during the latest year is RMB 50-200 million, the proportion 
shall not be less than 4%; 3. If the sales revenue of the enterprise during the latest year 
is more than RMB 200 million, the proportion shall not be lower than 3%.  
The standards for the number of R&D personnel are: the number of research and 
development personnel accounts for at least 10% of the total number of employees of 
the enterprise in that year.   
(ii) For the purposes of this preferential tax treatment, how does the government defi ne high -end 
new technological products?  
Reply: Article 20 of the Enterprise Income Tax Law stipulates that as regards to 
important high -tech enterprises supported by the State, the enterprise income tax shall 
be levied at the reduced tax rate of 15%. The Regulations on the Implementation of 
Enterprise Income Tax Law explicitly stipulates that an important hi -tech enterprise 
supported by the State refers to an enterprise that owns the core proprietary intellectual 
property rights and fulfils all following c onditions: (1) the percentage of research and 
development expenses in the sales income shall exceed the prescribed level; (2) the 
percentage of incomes from hi -tech products (services) in its total incomes shall exceed 
the prescribed level; (3) the percent age of the number of technicians in the total 
number of employees shall exceed the prescribed level; and (4) other conditions as 
prescribed in the administrative measures for the determination of hi -tech enterprises. 
The determination of hi -tech enterprise s shall be implemented according to the Circular WT/TPR/M/3 42/Add.1  
 
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  of Ministry of Science and Technology, Ministry of Finance and State Administration of 
Taxation on Amending and Issuing the Administrative Measures for the Determination of 
Hi-tech Enterprises (Guo Ke Fa Huo  [2016] No.  32).  
Page 54,  paragraph 3.22 
22. According to paragraph 3.22, "import prohibitions, restrictions and non -automatic licensing are 
maintained in China to safeguard national security; public morality; human, animal and plant 
health; the environme nt and exhaustible natural resources; to comply with China 's obligations 
under international agreements; and for balance -of-payments reasons ". The following paragraphs 
refer to licensing procedures applied by China. In what concerns the sales of commercial  aircrafts 
to China, please provide the following clarifications:  
(i)  What are the applicable licensing procedures?  
(ii)  Please provide a list of the regulatory procedures involved in the sale of commercial 
aircrafts to China.  
(iii)  Are the buyer and/ or the seller required to submit the purchase contract for approval 
by the sector regulator?  
(iv)  How can the buyer and/or the seller prove that the purchase contract has been 
submitted for approval by the sector regulator? Is the regulatory authority obl iged to 
issue any sort of documentation attesting the contract has been submitted for 
approval? Is this a numbered document?  
(v)  What is the role of the National Development and Reform Commission in the sale of 
commercial aircrafts to China?  
(vi)  Are th e buyer and/or the seller required to submit the purchase contract for approval 
by the NDRC?  
(vii)  How can the buyer and/or the seller prove that the contract has been submitted for 
approval by the NDRC? Is the regulatory authority obliged to issue any so rt of 
documentation attesting the purchase contract has been submitted for approval? Is 
this a numbered document?  
(viii) How can the seller follow up on the progress of the approval procedures of the 
purchase contract? Is there an online system in place wh ere such information can be 
found?  
(ix)  How are such additional requirements involved in the purchase of commercial aircrafts 
by Chinese airlines compatible with the provisions of the GATT?  
Reply to Question (i) -(ix): All the above questions have been an swered in the last Trade 
Policy Review of China . Please refer to the replies made in the last Review.  
Pages 54 -57, paragraphs 3.22 to 3.30  
23. The Secretariat mentions that import prohibitions, restrictions and non -automatic licensing are 
maintained in Ch ina to safeguard, 'inter alia ', the environment and exhaustible natural resources. 
Products subject to non -automatic licensing are listed in a "Catalogue of Import Goods Subject to 
Licensing " and in a "Catalogue of Restricted Imports of Solid Waste ", while  prohibited products are 
listed in a "Catalogue of commodities Subject to Import Prohibitions " and in a "Catalogue of 
Prohibited Imports for Solid Waste ". The Secretariat report also mentions a "Catalogue of 
Commodities Prohibited under Processing Trade ". Could the Chinese government clarify the criteria 
it uses to include and to exclude goods in these catalogues with the objective of safeguarding the 
environment and exhaustible natural resources?  
Reply: For example, t he standards for products included in the "Catalogue of 
commodities Subject to Import Prohibitions " (the 6th batch) are: (1) prohibited in the WT/TPR/M/3 42/Add.1  
 
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  Stockholm Convention on Persistent Organic Pollutants but China has not applied for 
exemption, namely the products are not produced or used in China an ymore; (2) already 
prohibited from producing and using in China. According to Rotterdam Convention on 
the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in 
International Trade, similar regulation measures are imposed on imp ort and export.  
Page 58,  paragraph 3.36 
24. After MOFCOM has made a preliminary affirmative determination of dumping injury and 
causation, price undertakings can be offered by the exporter or suggested to the exporter by 
MOFCOM. To decide to accept an unde rtaking, MOFCOM must take into account whether it would 
result in the elimination of the injury determined, and the possibility of circumvention. If the price 
undertaking is accepted, MOFCOM may suspend or terminate the AD investigation. When deciding 
whether it would accept or decline a price undertaking, MOFCOM must take into account the 
possibility of circumvention.  
(i) Could China be more specific on how this possibility may interfere in the decision of accepting 
or declining a price undertaking?  
Reply: Rules on the acceptance or rejection of price undertakings  have been clearly 
specified in Chapter 3 of the Interim Rules on Price Undertaking in Antidumping 
Investigations .  
When considering whether to accept a price undertaking or not, Ministry of Comm erce 
should review the following factors:  
(1) Whether it can remove the dumping injury or not;  
(2) Whether it includes effective monitoring measures or not;  
(3) Whether it complies with the public interests of the People 's Republic of 
China or not;  
(4) Whether there is possibility of circumvention or not;  
(5) Other factors that Ministry of Commerce deems necessary.  
The increase of the prices undertaking should be in accordance with the  margin of 
dumping affirmed in the preliminary ruling. If it is lower bu t still sufficient to remove the 
injury to the domestic industry, it can be accepted.  
(ii) How exactly does China measure that possibility and at what point that possibility becomes 
decisive to the decision of rejecting a price undertaking?  
Reply: Minist ry of Commerce can reject a price undertaking as long as it goes against 
any of the five factors above.  
(iii) Finally, does the exporting party have to meet any requirement in order to withdraw this 
possibility?  
Reply: According to Article 24 of Interim Rules on Price Undertaking in Antidumping 
Investigations, exporters and manufacturers that made price undertakings can revoke 
them at any time within the valid period, but they should submit the request to the 
Ministry of Commerce 30 days prior to the revo ke. 
Page 59,  paragraph 3.43 
25. Article 56 of the AD Regulations allows for the imposition of retaliatory measures in cases 
where Chinese producers are deemed to have been unjustly treated in foreign AD investigations. 
The authorities have repeatedly state d that these provisions have not been used. In the course of WT/TPR/M/3 42/Add.1  
 
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  China's last Review, Members asked whether Art. 56 contradicted Art. 17 of the Anti -Dumping 
Agreement (ADA), to which China replied that there was no direct connection between both and 
reaffirmed  that it would resort to WTO rules for dispute settlement before taking counter 
measures. In spite of China 's statements, even in TPR 2012, that the Article 56 of the 
AD Regulations have never been used:  
(i) In the situation that this legal provision is pu t into practice, could China clarify which would be 
the criteria to consider that a Chinese producer has been unjustly treated until the point a 
retaliatory measure is required?  
Reply: Currently, there is no relevant practice in China.  
(ii) Would the retal iation be restricted to the same product or sector under investigation of the 
foreign AD investigation?  
Reply: Currently, there is no relevant practice in China.  
Page 59,  paragraph 3.45 
26. The number of AD investigation initiations by China fell from 11 i n 2013 to seven in 2014, but 
rose again to 11 in 2015. Initiations during the period affected imports from Canada; Brazil; the 
European Union; India; Japan; the Republic of Korea; Singapore; Thailand; and the United States. 
Of the 18 investigations initiat ed in 2013 and 2014, 16 resulted in provisional measures and two 
were terminated due to the withdrawal of the complaint. In 13 of the 16 cases subject to 
provisional measures, the measures took the form of duties; in the remaining three cases, the 
provisio nal measures took the form of a deposit. Despite the lower number of initiations in 2014, 
there was a higher number of definitive AD duty orders issued in that year (12), compared to 2013 
(8) and 2012 (5). This was due to the fact that 9 out of the 11 inve stigations initiated in 2013 
resulted in definitive AD duty orders, while only one was terminated due to the withdrawal of the 
complaint, and in another the volume of dumped imports was found to be less than 3% of imports, 
and no definitive duties were app lied. Only five definitive AD measures were applied in 2015. All 
11 cases initiated in 2015 were still under investigation as at 31 December 2015; in three cases 
provisional duties had been applied.  
China highlighted that in 16 of the 18 cases initiated i n 2013 and 2014 a provisional measure had 
been applied, while in the next year, from 11 initiations only 3 provisional duties had been applied. 
Was there any adjustment in China 's criteria of application of provisional measures throughout this 
period that could be reflected in that difference in the proportion of application of provisional 
duties?  
Reply: According to Article 28 of the Anti -Dumping Regulations, The following 
provisional anti -dumping measures may be applied if the preliminary ruling establish es 
the existence of dumping and the injury caused by dumping to a domestic industry:  
(1) Levying provisional anti -dumping duty;  
(2) Provision of deposit, bond or other forms of security.  The amount of the 
provisional anti -dumping duty, cash deposit, bond o r other forms of security 
provided shall not exceed the margin of dumping established in the 
preliminary determination.  
An anti -dumping investigation shall be concluded within 18 months. Due to the specific 
date of initiation, the number of cases to which provisional anti -dumping measures 
applied varies annually.  
Page 60,  paragraph 3.50 
27. The Secretariat Report notes that countervailing investigations are subject to procedures 
similar to those applied for AD investigations, with a few exceptions, which i ncludes the absence of 
published rules for the use of sampling, or to conduct interim or judicial reviews and the lack of 
provisions to regulate the use of price undertakings to settle a CV investigation.  WT/TPR/M/3 42/Add.1  
 
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  (i) Despite the fact that China does not have large  experience on CV investigations, are there any 
guidance or established practice related to the analysis and acceptance of price undertakings on 
CV investigations?  
Reply: Up to now, there is no practice related to price undertakings on CV investigations  
in China.  
(ii) Would China apply the lesser duty rule in countervailing measures?  
Reply: Currently, China has no relevant laws, regulations and practices.  
Page 65,  paragraph 3.69 
28. Concerning Paragraph 3.69, Brazil acknowledges that AQSIQ is China's TBT Enquiry Point. 
However, Brazilian regulatory authorities and industry representatives are still experiencing 
difficulties in receiving answers to their questions, legal texts, and clarifications from AQSIQ staff. 
These type of difficulties were raised duri ng previous China´s TPR processes but have not ceased 
yet. What are the actions AQSIQ is planning to take to address this issue?  
Reply: Other members can make enquiries about TBT/SPS at China 's national TBT/SPS 
Enquiry Points. Members can receive answers t o their questions, legal texts, and 
clarifications through emails. The email addresses are tbt@aqsiq.gov.cn  and 
sps@aqsiq.gov.cn  respectively.  
Page 65, table 3.7 and  paragraph 3.70 
29. According to figures on table 3.7, China still maintained, in 2015, 4,004 local standards of 
which 3,879 were voluntary; and 4,414 Sectorial standards, of which 4,344 were voluntary. 
Paragraph 3.70 of the WTO report states that "China was invited to st reamline and review the 
domestic standards framework, and to look into replacing local standards with national standards 
where relevant ". China replied that it was actively facilitating integration and optimization of 
mandatory national, industrial and loc al standards to reduce the number of standards. During the 
current Review, the authorities noted that a reform of the standardization system is under way, 
and that a new mandatory national standards system will be established. As a result, the State 
Counci l issued a Plan for Deepening Standardization Reform on 15 March 2015 and work has been 
carried out to eliminate unnecessary standards: the authorities indicated that by January 2015, 
4,354 local standards had been annulled. " 
Reply: The Plan for Deepening Standardization Reform puts up requirements for 
recommended standards reform, that is optimizing and improving recommended 
standards. Based on the standard system, recommended national, industrial and local 
standards systems will be further optimized. Reas onably set the scope of standards at 
all levels and gradually reduce the number and scale of existing recommended 
standards. Next, the optimization and strea mlining of recommended standard system 
are also needed. Large amounts of general products and servi ces standards will be 
transformed to social group standards instead of government recommended standards 
gradually.  
Currently, the Standardization Administration of China (SAC) has initiated the 
optimization of recommended standards system and review pilot s. And the Plan for 
Centralized Review of Recommended Standards  was issued based on pilots.  
(i) It seems that this ongoing reform is aimed at covering only mandatory standards. Considering 
that a majority of local and sectorial standards published in China  in 2015 were voluntary 
standards (according to Table 3.7), we wish to seek greater clarity on China 's approach concerning 
voluntary national, sectorial and local standards.  
Reply: Currently, the Standardization Administration of China (SAC) has initiated the 
optimization of recommended standards system and review pilots. And the Plan for 
Centralized Review of Recommended Standards  was printed and distributed based on 
pilots.  WT/TPR/M/3 42/Add.1  
 
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  (ii) In light of advances by the Plan for Deepening Standardization Reform, from March 2015, 
please offer additional information on measures adopted to reduce the number of national 
standards that differ from international standards.  
Reply: Actively applying international standards is the general principle for China 's 
standardization e fforts and an important technical and economic policy. And if there are 
differences from international standards, it 's due to the full consideration of China 's 
specific conditions like geographical, climate conditions and so on. There is no need to 
reduce the number of national standards that differ from international standards.  
According to Article 6 of the draft Standardization Law, China encourages the adoption 
and promotion of international standards. In 2001, Administration of Quality 
Supervision, Insp ection and Quarantine (AQSIQ) developed the Management Method of 
Adopting International Standards, which clarifies how to adopt international standards.  
Pages 65 -67, paragraphs 3.71 to 3.77  
30. When it comes to product certification in China, how do the Ch inese authorities can ensure 
foreign companies that the certification fees and certification -related expenses, such as tests in 
Chinese laboratories, do not constitute a technical barrier to trade? What is the scientific evidence 
behind the need for new te sts even for products that have been widely used for a long time in 
many other countries?  
Reply: Take the CCC certification as an example. All the products listed in the 
CCC Catalogue need to comply with relevant CCC technical requirements, which are the 
same for domestic and overseas enterprises, when they are sold and used in Chinese 
mainland market. Besides, the authorized accredited certification bodies make 
reasonable and transparent charging standards based on their costs.  
Pages 67 -72, paragraphs 3.8 0 to 3.91  
31. With reference to Item 3.1.9 ( "Sanitary and Phytosanitary Requirements "), could the Chinese 
delegation please clarify the following issues:  
(i) Concerning the registration requirements for foreign companies exporting agricultural products 
or meat  to China, could the Chinese delegation describe each step of the registration process 
conducted by CNCA and AQSIQ since the submission of the application?  
Reply: In accordance with the Provisions for the Administration of the Registration of 
Overseas Man ufacturers of Imported Food (AQSIQ Decree [2012] No. 145), the 
application for registration of overseas manufacture rs should be submitted to CNCA by 
overseas competent authority. Namely, the competent organ of the export country 
should submit official writ ten application and the list of recommended enterprises to 
CNCA and the documents concerning food security management system and relevant 
materials of individual enterprise applying for registration should also be submitted. The 
working process is as follo ws: 
 
Authorities of exporting 
countries recommend 
and submit official 
questionnaires and 
enterprises' application 
materialsOn-site registration 
assessment (based 
on actual situations)CNCA accepts
the applicationsDocument
review
 
 WT/TPR/M/3 42/Add.1  
 
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  (ii) Once a foreign company exporting agricultural products or meat to China has applied for 
registration, how can it follow up on the progress of the registration process?  
Reply: It is suggested that questions about registration progress should b e asked  by 
overseas competent authority or its official agencies in China to CNCA since these 
questions involve national and enterprises ' specific information.  
(iii) What is the average timeframe for the registration of a foreign company exporting agricult ural 
products or meat to China?  
Reply: Review report will be sent to overseas competent authority officially within 
60 working days after the on -site review; within twenty working days after the technical 
review deems that they have met the requirements, the name list will be updated.  
(iv) Does the 2015 Food Safety Law aim at making the registration process for foreign companies 
exporting agricultural products or meat to China more transparent and predictable?  
Reply: The Chinese government will take active  policies to create an open, transparent, 
stable and predictable business environment on the basis of laws and regulations.  
(v) How can foreign companies or governments obtain information on pending approvals?  
Reply: It is suggested to inquire the CNCA by  overseas competent authority or its official 
agencies in China.  
Pages 69/70, paragraphs 3.84/3.85  
32. According to the Report by the Secretariat, the 2015 Food Safety Law seeks to streamline the 
SPS evaluation process by Chinese authorities. Given the rec ent specific trade concerns mentioned 
by WTO member countries at the SPS Committee, in light of registered delays of AQSIQ 
authorities to evaluate the information sent by exporting countries, please provide clarification on 
the adopted measures ' effectiven ess in contributing to the flow of trade between China and foreign 
markets.  
Reply: Since 2013, according to the transparency principle of the Agreement on the 
Application of Sanitary and Phytosanitary Measures (SPS) by the WTO, Ministry of 
Agriculture of P eople 's Republic of China submitted its notification of 4 pesticide residue 
limit standards and 1 management regulation on transgenosis. The notification is as 
follows:  
Time  Number  Content  
13 February 2013  G/SPS/N/CHN/600  137 MRL for 62 pesticides like Ab amectin in food etc.  
10 March 2014  G/SPS/N/CHN/635  164 MRL for 91 pesticides like 2,4 -D in food etc . 
14 November 2014  G/SPS/N/CHN/701  223 MRL for 35 pesticides like Chlorothalonil in food etc.  
30 April 2014  G/SPS/N/CHN/875  56 MRL for 108 pesticides like  2,4-D Butylate in food etc.  
2 June 2015  G/SPS/N/CHN/881  Amended Management Measures on the Evaluation of the Safety of 
Agricultural GMOs  
33. In accordance with the Law on the Entry and Exit Animal and Plant Quarantine, based on a risk 
analysis, China ca n prohibit the importation of plants or animals that originate in countries or 
regions where there are plant diseases or epidemics. China imposes restrictions on Brazil's exports 
of live cattle and animal products, such as bovine offal, pork offal, and mec hanically separated 
poultry. Brazil believes that these measures are more restrictive than the international 
recommendations of the World Organization for Animal Health - OIE and are not supported by 
scientific justifications, as disciplined in Article 3.3  of the WTO SPS Agreement. Would China please 
present the scientific justifications supporting its restriction to import Brazilian live cattle and 
animal products, such as bovine offal, pork offal, and mechanically separated poultry, especially 
considering  that Brazil complies with the requirements stipulated by the OIE and other 
international organizations of reference?  
Reply: Some areas of Brazil are still the foot -and-mouth disease epidemic area, and 
Brazil still belongs to the countries where there is mad cow disease. If wishing to export WT/TPR/M/3 42/Add.1  
 
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  live cattle to China, Brazil can apply for lifting the ban related to mad cow disease from 
AQSIQ. When the ban on mad cow disease is lifted after China 's risk assessment, the 
live cattle that is conform to Chinese insp ection and quarantine requirements can be 
imported from Brazil after it fulfills inspection and quarantine access procedures.  
On July 18, 2014, General Administration of Quality Supervision, Inspection and 
Quarantine and the Ministry of Agriculture jointly  issued an announcement ([2014] 
No. 80) on lifting the ban on bovine blood products and deboned beef from cattle under 
thirty months of age from Brazil.  
Pages 70/71,  paragraph 3.87  
34. The 2015 Food Safety Law indicates that imported (and exported) food m ust be subject to the 
supervision of state entry -exit inspection and quarantine authorities both at the central and sub -
central level. However, such supervision procedures must be in accordance with the provisions of 
Article 8, Annex C (Control, inspection  and approval procedures) of SPS Agreement, specifically 
letter (e), which sets forth that any requirements for control, inspection and approval of individual 
specimens of a product are limited to what is reasonable and necessary, in order to avoid 
unneces sary obstacles to international trade.  
Reply: China notified the Food Safety Law (Draft) to the WTO on Feb 18, 2015 and 
reserved 60  days for review. China has given serious consideration to the comments of 
the members and has revised many provisions in ac cordance with these comments. 
Therefore, China has actively fulfilled the obligations stipulated by the SPS agreement in 
the process of amending the Food Safety Law.  
China's requirement to receive, in advance, the list of signatures of Brazilian veterinary  authorities 
which may sign the international health certificates regarding Brazilian exports of bovine meat, 
pork and poultry is causing retention of shipments at Chinese ports and unnecessary losses to the 
Brazilian exporters, even though Brazilian autho rities (MAPA)  offer equivalent security measures to 
ensure the authenticity of the certificates. These measures include, but are not limited to, the use 
of paper money, the alphanumeric code ensuring authenticity that accompanies each certificate, 
and a bi weekly table reporting each and every shipped load.  
Would China please present its reasons for not acknowledging the equivalence of the security 
measures applied to Brazilian certificates, as provided for in the rules governing equivalence in 
Article 4.1 of the SPS Agreement?  
Reply: China has replied this question by letter (Quality Inspection on Food Diplomatic 
Letter [2016] No.  151) on March 7, 2016. The reason why China requires the exporter to 
provide relevant information about signing veterinary offi cers is mainly to assist the 
inspection personnel at the port to identify the authenticity of the certificates, which has 
been defined in relevant protocols between China and Brazil. Brazilian authorities shall 
provide relevant information in line with the  bilateral agreements so as to avoid impacts 
on the inspection caused by Brazilian side. Chinese requirements for all countries are 
the same, which are in line with the international rules.  
Page 71,  paragraph 3.91 
35. According to the Report by Secretariat , "between 2013 and January 2016, China made some 
417 notifications regarding adopted SPS measures or measures that they were to adopt. Most of 
the measures notified are not based on international standards ". Bearing in mind its commitments 
to adopt measur es that reflect standards agreed and acceptable to all WTO parties, could China 
provide additional information to justify the notification of measures that are not based on 
international standards?  
Reply: Part of the pesticide maximum residue limit (MRL) d rafted by China may be 
different from CAC Standard. And the standard adopted by China in drafting the 
pesticide MRL is formulated through scientific methods, in accordance with international 
practice. Countries make MRL based on local GAPs. China takes CAC  standard in 
consideration when drafts the pesticide MRL. But due to different pests and environment WT/TPR/M/3 42/Add.1  
 
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  in the world, the ways regions and countries use pesticide differ. So China 's pesticide 
MRL is different for CAC Standard. For comments made by WTO members  on China 's 
pesticide MRL notification, China provided the scientific basis for relevant members. For 
regulations on health foods, China conducted systematic research on laws and 
regulations on foreign health foods and learned from many international stand ards and 
experience in the formulation of the Management Measures on the Registration and 
Registration of Health Foods etc.  
Pages 73 -75, paragraphs 3.95 to 3.104  
36. According to the Report, China continues to apply export taxes in accordance with the 
Regulations on Import and Export Tariffs. The list of goods subject to "statutory" and interim 
export duties is issued on a yearly basis. China's Foreign Trade Law also distinguishes between 
goods that may be freely exported and those that may be restricted. Restricted exports may be 
subject to quotas and/or licenses. China imposes global and destination -specific export quotas. 
The list of products subject to quotas and the quota volumes for the following year is published on 
31 October of each year.  
(i) Acco rding to table 3.10, statutory export duties were applied to HS chapter on Iron and Steel 
and Inorganic Chemicals, among others. Is there any additional information on how long a product 
may remain subjected to such duties?  
(ii) Are these policies subject  to governmental evaluation?  
(iii) What are the effects of such measures on the Chinese domestic market?  
(i)- (iii) Reply: Information concerning relevant export tariffs may be obtained through 
the Customs Tariff of Import and Export of the People 's Repu blic of China 2016 (Legal 
Text) (compiled by Office of Customs Tariff Commission of the State Council and 
Department of Tariff of the Ministry of Finance) and the official website of the Ministry 
of Finance.  
China has always been respecting the world trade  rules. China 's export tariff 
management measures on relevant raw materials are scientific management on 
resources products for achieving sustainable development under increasingly serious 
resource and environment pressure. It is a component of the compreh ensive measures 
for strengthening ecologic environmental protection, which is in accordance with the 
WTO rules. Problems concerning export tariff will be settled properly according to the 
WTO disputes settlement procedure, and the members can pay attention  to the 
discussion under dispute settlement mechanism.   
Pages 76/77, paragraphs 3.107 to 3.110  
37. With reference to Item 3.2.4 ( "Export support and promotion "), could the Chinese delegation 
clarify the nature and extent of tax incentives granted on the ex ports of steel products?  
Reply: There are no preferential tax policies tailored to steel and iron industry in China.  
38. With reference to paragraph 3.108,  how VAT rates and rebate rates are established? And how 
does China make sure that companies do not  get over -rebate or excess refund of indirect taxes? 
Does China have in place and apply a system or procedure to confirm which inputs are consumed 
in the production of the exported products and in what amounts?  
Reply: Since 1994, China, under the principl e of "rebate as much as collected ", has 
developed and improved export rebate policies. Ministry of Finance and State 
Administration of Taxation develop export rebate policies based on their mandate. Local 
SATs take charge of specific VAT refund according t o relevant policies. Rebate rates of 
exported products are equal to or lower than their VAT rates.   WT/TPR/M/3 42/Add.1  
 
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  39. With reference to paragraph 3.110, the Secretariat Report notes that the Chinese authorities 
were unable to provide any other information regarding expo rt support. Could China provide more 
information regarding export support for the period covered by the 2015 NFN?  
Reply: As stated in Article 10 of the Protocol on the Accession of China, China shall 
eliminate all subsidy programmes falling within the sco pe of Article 3 of the 
SCM Agreement upon accession. China has hono ured its commitment to the WTO and 
performed its obligations under the WTO agreements. In the past few years, China 
Council for the Promotion of International Trade (CCPIT) and the Trade De velopment 
Bureau of the Ministry of Commerce have organized training courses and economic 
forums to get Chinese enterprises familiar with overseas laws and regulations, and to 
facilitate foreign companies ' development in China.  
Pages 77/78 , paragraphs 3.11 2 to 3.114  
a) According to the Secretariat 's Report, China Eximbank's mandate is to provide support for the 
importation and exportation of capital goods and services. It also states that China Eximbank 
provides export buyers' credit and export sellers' cr edit and that the Chinese authorities have 
noted that loans are granted at commercial interest rates.  
(i) Given that, according to the Report, the main beneficiary industries of Eximbank's credit in 
2014 were hi -tech products (29.9 % of the total), and als o considering that the Central 
Government Five -Year Plans includes incentives for this sector, could China give more details on 
how the policy of EximBank relates to the Central Government and Sub -Central level Five -Year 
Plans?  
Reply: As a policy bank, th e Export -Import Bank of China will refer to Five -Year Plans 
made by the central government when they develop credit policies. But there are no 
corresponding relations between them. The credit policies are determined based on a 
full consideration of multipl e elements, including the national development plans, 
conditions of regional development and industrial market etc and combined with their 
functions and business development. By the end of June 2016, the outstanding amount 
of loans for the export of high a nd new technological products reached 
RMB 114.2  billion.  
(ii) Considering that Export buyers' credit increased steadily from 2012 to 2014 when the total 
amount of disbursements stood at RMB 59.4 billion, we would like to know what is the distribution 
of resources among different sectors of the Chinese economy and how this increase relates to 
government -set priorities?  
Reply: In the distribution of resources among different sectors of the Chinese economy, 
the export buyers' credit is not only related to gov ernment -set priorities, but also 
contains uncertainties. But the specific credit plans are independently determined by the 
Export -Import Bank of China based on the conditions of projects.   
(iii) Which products would China consider to be hi -tech products? I s there any legislation in which 
this category would be described? If applicable, we kindly ask China to provide a list with 
products/companies/sectors eligible.  
Reply: The determination of hi -tech enterprises shall be implemented according to the 
Circula r of Ministry of Science and Technology, Ministry of Finance and State 
Administration of Taxation on Issuing the Administrative Measures for the 
Determination of Hi -tech Enterprises (Guo Ke Fa Huo [2016] No. 32).  
(iv) Could China provide, for this review, the average lending rate of commercial banks to state -
owned enterprises?  
Reply: Currently, the control over interest rates in China has basically removed. The loan 
and deposit businesses of commercial banks are operating under the principles of 
commercial ization independently. The interest rates are also determined independently 
by commercial banks themselves. Due to the fact that the nature of enterprises is not an WT/TPR/M/3 42/Add.1  
 
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  important factor in deciding loan and deposit rates by commercial banks, the Chinese 
govern ment hasn 't conduct a survey on the average lending rate of commercial banks to 
state -owned enterprises. Hence, relevant information is not available.  
(v) What are the factors taken into account in setting the lending rates?  
Reply: In recent years, China speeds up market -based reform of interest rates. On 
24 October  2015, the removal of deposit interest rate cap over commercial banks and 
rural financial cooperatives marks the removal of the control over the interest rates. 
Commercial banks can independentl y determine their specific interest rates according to 
business principles and their own operating strategies. Banks will comprehensively 
consider multiple factors related to the borrowers, such as the overall operation 
situation, management situation, cre dit condition, financing targets, loan repayment 
ability, cooperation records with banks and industrial risks etc., combined with the cost 
of capital, management and so on.  
(vi) Is there any difference in the interest rates offered to state owned enterpris es and to private 
enterprises?  
Reply: When determining lending rates, banking financial institutions take a 
comprehensive consideration of multiple elements, like their costs of capital, credit 
rating of the borrowers, length of maturity, asset guarantee etc. Lending rates are 
determined reasonably based on market principles. The nature of enterprises is not a 
key element in determining the lending rates of banking financial institutions.  
Page 79,  paragraph 3.119  
According to the Report, by the end of 2015 , SINOSURE had supported export, domestic trade and 
investment with a total value of US$2,401.73 billion. Its policies covered thousands of exporters 
and hundreds of medium -and long -term projects concerning exports of high -technology products, 
large electr o – machinery and complete -set equipment, as well as overseas engineering contracts.  
We would appreciate if China could give more details about the distribution of the support offered 
by SINOSURE to different sectors of the Chinese economy.  
Reply: SINOSUR E does not have the classified statistics of the above specified 
industries.  
41. As established in item (j) of Annex I of the SCM Agreement, is the provision of export credit 
guarantees and similar measures by SINOSURE offered at premium rates adequate to cover its 
long-term operating costs and losses?  
Reply: Yes. It can cover long -term operating costs and losses.  
Page 80, paragraphs 3.124/3.125   
The Secretariat 's Report notes that, at the time of the last Review in 2014, in addition to the 
programmes noti fied by China, there are other support programmes and other means to support 
different industries.  However, no information was provided in the context of this Review regarding 
these specific programmes or China's industrial policies. The identification of these programmes 
remains difficult, as there is no information published in English and no itemized central budget (to 
help identify outlays) was provided for the Review.  
43. Could China please indicate if there is any public information in English availab le on those 
programs? In any case, could China provide detailed information on industries, volumes disbursed 
and application policies applied for those programs?  
Reply: China does not agree that "there are other support programs and other means to 
support different industries " and "not able to provide the Secretariat with industrial 
subsidy information for this review period " in the Report prepared by the Secretariat for 
this review. China noted that the text in paragraph 3.124 comes from paragraph 3.125 WT/TPR/M/3 42/Add.1  
 
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  of the 2014 China TPR Report by the Secretariat. At that time, China had not submitted 
the most recent notification on subsidies. However, in 2015, China already submitted its 
notification on subsidies at central government level for 2009 -2014, and before th e 
review meeting, its first notification on subsidies at sub -central government level, 
covering 14 years from 2001 to 2014. These notifications contain the subsidy policies 
that are required to be notified to the WTO  according to China 's understanding of t he 
relevant definitions and rules requirements of the SCM Agreement. It 's a pity that the 
relevant paragraphs of Secretariat's Report failed to be updated in the light of the 
above -mentioned important latest developments.  
Page 95,  paragraph 3.175  
China con tinues to maintain a basic economic system in which public ownership is kept as the 
mainstay of the economy while allowing diverse forms of ownership to develop side by side. As a 
result, the private sector is dominant in industries such as clothing, food,  and assembly for export, 
while sectors of strategic importance (e.g. energy; utilities; and transport, financial, telecom, 
education, and health care services) remain only partially open to private investment. These 
sectors are often dominated by large SO Es. The authorities stated that even though for historic 
reasons SOEs still hold an important market share in certain sectors of the economy, the 
Government is in the process of reforming SOEs to further develop a mixed ownership economy in 
China, as requi red by the Guiding Opinion on Further Deepening the Reform of State -Owned 
Enterprises. They also noted that SOEs are divided into for -profit entities and public services 
entities, thus many SOEs function as if they were private enterprises.  
44. What are C hina's SOEs roles within the trade, industrial and innovation policies? Are they 
supposed to fulfill goals set in the Five -Year Plan?  
Reply: The tasks such as the anticipated targets, industrial development and structure 
adjustments etc. in the Five -Year P lans are mainly achieved depending on the 
independent behavio urs of market players (including SOEs, private enterprises etc.).  
45. Could you describe the general governance framework of China's SOEs, in particular, the 
degree of participation of governmen tal authorities in their decision making processes?   
Reply: According to the Law of the People's Republic of China on the State -Owned 
Assets of Enterprises  and the Interim Measures for the Supervision and Administration 
of State -Owned Assets of the Enterpr ises, the state -owned assets in enterprises belong 
to the state. Competent government agencies like SASAC, on behalf of the state, perform 
the contributor's duties based on the principles of separation of government bodies and 
enterprises, separation of th e administrative functions of public affairs and the functions 
of the state -owned assets contributor, and non -intervention in the legitimate and 
independent business operations of enterprises, and enjoy the owner's rights and 
interests.  
46. Are prices of g oods and services regulated by SOEs? If so, how?   
Reply: Currently, over 97% of the prices of commodities and services in China are based 
on market. Government -set prices only cover a small number of commodities and 
services and are limited to important pu blic utilities, public services and natural network 
monopolies. Government -set prices need to be formed and adjusted by price authorities 
at all levels according by the law and permissions. SOEs  have no right to control prices.  
Page 99,  paragraph 3.187  
"The Government Procurement Law includes a "buy -domestic" (Article 10) provision, which was 
not modified by the 2014 amendment. As a result, the  Government must procure domestic goods, 
construction projects and services, with certain exceptions: i) when the g oods, construction, or 
services required are unavailable in China or, if available, cannot be procured on reasonable 
commercial terms; ii) when the goods, construction, and services are procured for use abroad; or 
iii) when otherwise provided for by other laws and administrative regulations. There are no criteria 
specified as to what constitutes domestic goods or provisions on local content. (…) In addition, WT/TPR/M/3 42/Add.1  
 
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  article 8 of MOF Order No. 18 of 11 August 2004 states that the suppliers participating in bids to 
supply goods or services must be domestic suppliers who supply domestic goods or services. 
Domestic -sourcing legal requirements would have to be modified for procurement above GPA 
thresholds for China to join the GPA Agreement. "  
47. Could China please prov ide more information regarding which goods, construction projects and 
services are considered domestic in accordance with Chinese Government Procurement Law, 
Article 10? Also, could China please provide more information regarding which suppliers, goods 
and services are considered domestic in accordance with Article 8 of MOF Order No.  18 of 
11 August 2004?  
Reply: The authority is formulating identification standards and management methods 
for government procurement of domestic products, and studying the appr oach to 
identify domestic suppliers and service.  
Page 99,  paragraph 3.188  
"(…) Imports used for procurement purposes continue to require approval from the Ministry of 
Finance, or its corresponding departments at the local level. Importation is governed by the 
Administrative Measures for Government Procurement of Imported Products, which set out the 
conditions for government procurement of imported products. (…) ". 
48. Could China please provide details on the conditions for government procurement of imported  
products, according to Administrative Measures for Government Procurement of Imported 
Products?  
Reply: The products that need to be purchased are not available within the territory of 
China or are unable to obtain by reasonable commercial conditions, or s ome laws and 
regulations stipulate that it does require the purchase of imported products.  
Page 100, paragraphs 3.191/3.192  
49. The recent new approach on government procurement, called competitive consultations 
procurement method, already reached a partic ipation of 4.2%, ranked 2nd amongst all 
procurement methods. We would be glad if the following questions could be answered:  
(i)  Is it possible to list some products/services that are being procured by China through 
these methods?  
(ii) Could it be given f urther explanation on how consultation teams are built?  
(iii) What are the requirements for suppliers' selection?   
(iv) What are the steps for suppliers' selection?  
Reply: The information and procurement results of the government procurement 
conducted by t he competitive consultations procurement method have been released 
through such media as  the website of Chinese government 
procurement （www.ccgp.gov.cn ）. Please refer to The Interim Measures for 
Administration of Competitive Consultation Procurement Method in Government 
Procurement for the information concerning the establishment of consultation grou p, 
and suppliers ' selection requirements and processes . Please  refer to the website of 
Chinese government procurement （ www.ccgp.gov.cn  ）and other media for more 
details.  
Page 107,  paragraph 3.219  
50. According to para graph 3.219, "the Trademark Law was amended in August 2013 and the 
amendments entered into force in May 2014. They include: (…), the protection of well -known 
trademarks; the introduction of the principle of good faith for the registration and use of 
tradem arks". Bearing in mind these new developments in the protection of trademarks, would WT/TPR/M/3 42/Add.1  
 
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  China agree that if a single person carries out the registration of over a hundred well -known 
foreign brands before the Trademark Office he or she would be in bad faith an d, therefore, the 
registration would be illegal? What are the measures being undertaken to ensure that the 
aforementioned amendments are being duly implemented both by specialized and non -specialized 
courts?  
Reply: Currently, the Supreme People 's Court is formulating The Judicial Interpretation 
of the Supreme People 's Court on Issues Concerning the Trial of Administrative Cases 
Involving the Authorization and Determination of Trademark Rights . According to the 
draft of this interpretation for public comment s issued in September 2014, when 
trademark applicants obviously lack the intention of real use or apply for a large number 
of trademarks without good reasons, the Trademark Review and Adjudication Board will 
not allow registration or announce the trademark s null and void according to Article 4 
and Article 44 of the Trademark Law , and it will get support from the People's Courts. As 
to large -scale registration of foreign famous brands, the Supreme People's Court will 
strive to regulate in the Judicial Interp retation according to Article 7 of the Trademark 
Law and relevant laws and regulations related to the principle of good faith, and based 
on the full consideration of opinions from all sides. Forceful measures will be adopted to 
contain such large -scale reg istration.  
Page 116,  paragraph 4.1.2.1  
51. According to the Report by the Secretariat, the pursuit of economic development in the 
agricultural sector involves the modernization of the production cycle as well as the application of 
measures "to provide mor e flexibility to transfer farmers ' contract rights ". The same paragraph 
also states that productivity and self -sufficiency will be attained by "increasing support to the 
sector, providing more benefits to farmers, improving the current subsidy policy (i.e.  by 
eliminating some and creating new ones), and reforming the 'price system ' for agricultural 
products ". With regards to the WTO 's Agreement on Agriculture and China 's commitments to avoid 
unnecessary barriers to trade, please provide further clarificatio ns on how the above mentioned 
objectives can be achieved without harming trade flows.   
Reply: In recent years, the Chinese government has kept improving agricultural support 
policy in the direction of market -oriented reform. With the advancement of the ref orm, 
the level of Amber box support is decreasing, and to compensate the possible income 
loss of farmers, decoupled direct payments are made to farmers to compensate for the 
possible income loss of farmers, and promote the protection of production capacity  of 
the farmland as well as the environment, and ensure the sustainable development of 
agriculture. Thus, we believe that the reform of agricultural subsidy policy will not lead 
to trade distortion, nor will it adversely affect trade growth.  
Page 120,  paragraph 4.19 
52. According to the Report by the Secretariat, in the Direct Subsidy to Farmers program, "the 
payment is provided to the person who holds the contract rights of the land, not to the person who 
cultivates the land ". Please provide additional cla rifications as to the efficiency and economic and 
social rationale of such a Program.  
Reply: The purpose for providing direct subsidies to farmers is to promote the growth of 
farmers ' income, encouraging the protection of the production capacity of the fa rmland 
and the environment, and thus promote the sustainable development of the agriculture. 
The payments are based on the right to contract land, which is determined by the two 
considerations: first, farm land will continue to be used as the guarantee for  the 
livelihood of farmers, but the process of defining the right to contract farmland is still 
underway; and second, the need to satisfy the requirements for green box subsidy as 
provided for in Annex 2 of the Agreement of Agriculture.  
Page 129,  paragraph  4.47 
Regarding preferential and bilateral policies, during the period under review China signed six new 
preferential agreement related to trade in services including banking services. The Agreement on WT/TPR/M/3 42/Add.1  
 
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  Achieving Basic Liberalization of Trade in Services in  Guangdong with Hong Kong, China, and the 
Agreement on Achieving Basic Liberalization of Trade in Services in Guangdong with Macao, China. 
These agreements follow a hybrid approach different from that of the previous Closer Economic 
Partnership Arrangement s (CEPAs) and their supplements: a negative list to regulate restrictions 
related to commercial presence and a positive list for cross -border commitments in financial 
services. It is difficult to compare these commitments one -by-one with those of China und er the 
GATS or under the previous CEPAs.   
53. In terms of preferential and bilateral Policies, we would appreciate to know if the texts, 
including the schedules, of the new recently signed preferential agreements related to trade in 
services are available  electronically in a website: The Agreement on Achieving Basic Liberalization 
of Trade in Services with Hong Kong, China, and the Agreement on Achieving Basic Liberalization 
of Trade in Services with Macao, China. We are especially interested to know more a bout the 
negative list approach to regulate restrictions related to commercial presence and the positive list 
for cross -border commitments in financial services.  
Reply: On 18 December 2014, under the framework of CEPA, the Agreements on 
Achieving Basic Lib eralization of Trade in Services in Guangdong with Hong 
Kong/Macau, China were signed respectively. The above texts are available on the 
Ministry of Commerce of the People's Republic of China (MOFCOM) website, the 
Government of the Hong Kong Special Admini strative Region of the People 's Republic of 
China website and Govemo da Regiao Administrativa Especial de Macau website. 
Electronic edition can be downloaded through the following URL: 
http://tga. mofcom.gov.cn/article/zt_cepanew/  .  
Pages 132/133,  paragraph 4.61  
Shadow banking emerged as an important source of funding for sectors benefitting from the post -
crisis stimulus (real estate, local governments' infrastructure projects and state -owned 
enterprises) and became the fastest growing segment of the financial service sector in recent 
years. By March 2014, the stock of shadow banking had risen to nearly 53% of GDP, with annual 
growth rates averaging around 30% during 2012 -2013. However, following a series of measures 
strengthening the regulatory framework taken by the authorities in April and May 2014, credit 
growth has decelerated significantly and shifted towards conventional loans. Some of the 
measures adopted were targeted at reining in interba nk activity as a channel for fuelling shadow 
banking by restricting the ways to fund off -balance sheet credit through the interbank market. The 
regulation of non -standard products has also been tightened and trusts have been forbidden from 
funding cash pay -outs on maturing products with the proceeds of new wealth management 
products (WMP).  In addition, a trust protection fund has been established and a registry system 
for trust products is under preparation, and the standardized operation of financing guara ntee 
companies, small -loan companies, and network credit business has been promoted.  
54. Concerning new measures to restrict shadow banking activities, we would appreciate to know 
what was done from April to May 2014 regarding interbank activities and non -standard products.  
Reply: In April 2014, the PBoC, the China Banking Regulatory Commission (CBRC), the 
China Securities Regulatory Commission (CSRC), the China Insurance Regulatory 
Commission (CIRC) and the State Administration of Foreign Exchange jointly  issued the 
Circular on Regulating Interbank Businesses of Financial Institutions (the Circular).  
Under the prerequisite of encouraging financial innovations and protecting the 
independent operation of financial institutes, the Circular proposes 18 articl es to 
regulate interbank businesses operation behavio urs strengthen and improve internal 
and external management of interbank businesses, promote standardized asset and loan 
businesses innovation etc, according to the overall thinking of "safeguarding legi timate 
business, strengthening management and promoting development ".  
The Circular emphasizes the requirements on the internal and external management of 
interbank businesses, regulates the requirements on accounting and assets measuring, 
establishes requ irements on the timeframe and degree of risk concentration of 
interbank businesses and stresses the importance of enhancing mobility management. WT/TPR/M/3 42/Add.1  
 
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  At the same time, the Circular regulates the interbank businesses of financial 
institutions, supports the promo tion of the normal development of asset securitization 
and the active participation in pilots of interbank deposit receipt business, so as to make 
asset and loan management more proactive, standard -based and transparent.  
55. Any other measure in cross bor der supply of financial services considered important to be 
mentioned?   
Reply: On 29 April 2016, the People's Bank of China (PBoC) issued Circular of the PBoC 
on Implementing Nationwide Macro and Prudent Management for Full -Scale Cross -
Border Financing, st arting from 3 May 2016, the PBoC and the State Administration of 
Foreign Exchange will not conduct pre -examination and approval procedures for 
financial institutions and enterprises ' external debts. Instead, financial institutes and 
enterprises can indepen dently carry out cross -border financing of various types of local 
and foreign currencies, including getting loans from foreign financial institutions, under 
the cap of cross -border financing linked to their capital or net assets. Besides, the PBoC 
organize d the establishment of the Cross -border Interbank Payment System (CIPS) (the 
1st stage) to facilitate the use of RMB around the world. At current stage, China 
welcomes the indirect participation of Brazilian financial institutions in this system.   
WT/TPR/G /342  
Page 9,  paragraph 2.29 
56. The Chinese government mentions the adoption of controls over coal consumption in "key 
cities for air pollution treatment ". 
(i) Could the Chinese government inform the complete list of cities where such measures have 
been pu t in place?  
(ii) In selecting these cities, has the Chinese government taken into consideration their degree of 
openness to foreign trade and investment? What are the criteria the Chinese government uses to 
choose these cities?  
(iii) Has any study on the  economic impact of such measures being released? If so, could the 
Chinese government summarize the results of the studies carried out?  
(i)- (iii) Reply: The list of key cities is adjusted dynamically every year. According to the 
report on urban air qualit y of last year issued by the Ministry of Environmental 
Protection, National Development and Reform Commission lists the Top 10 cities with 
the worst air quality as the key ones for air pollution treatment. In 2015, the key cities 
are Baoding, Xingtai, Shij iazhuang, Tangshan, Handan, Hengshui, Jinan, Langfang, 
Zhengzhou and Tianjin. Currently, there are no relevant studies on the economic impact 
of such measures.  
Page 18,  paragraph 3.18 
The Chinese government has continued to implement interim tariff rates on certain imported 
products which were lower than the applied MFN rates. In 2015, interim tariff rates were applied to 
749 items of commodities, and in 2016, to 787 items of commodities, thus further increasing 
import to meet the needs of domestic consump tion and industrial structure . 
57. Would China please indicate the 749 items of commodities in 2015 and 787 items of 
commodities 2016 lowered as interim tariff rates?  
Reply: For relevant information, please refer to the 2015 Customs Tariff and the 2016 
Customs Tariff.  
Page 18,  paragraph 3.19 WT/TPR/M/3 42/Add.1  
 
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  58. Import administration procedures have been further simplified. On 1 July 2014, the Ministry of 
Commerce removed the automatic import licensing administration of goods under 81 HS 10 digit 
commodity items. The onlin e license application and the paperless customs clearance for 
automatic import licensing are under way smoothly. The pilot program on paperless customs 
clearance for automatic import licensing was launched in the Shanghai Pilot Free Trade Zone in 
August 20 14 and was introduced nationwide in February 2016.  
Reply: Measures to conduct import bans, licensing and export prohibitions, restrictions, 
and licensing are formulated by relevant authorities. The customs implement 
supervision in accordance with laws, adm inistrative regulations and rules made by the 
State Council or regulations issued by relevant authorities under the State Council 
according to the laws and administrative regulations authorization. Concerning relevant 
policies, opinions given by authoritie s will prevail.  
59. When will China introduce online license application and the paperless customs clearance for 
non-automatic import licensing?  
Reply：Please check the website of MOFCOM which will update the recent progress.  
Page 18,  paragraph 3.20 
It has  enabled trade promotion institutions to organize import procurement, encouraged well -
known exhibitions and fairs to explore import functions, attracted trading partners to China for 
holding exhibitions and business negotiations and supported various indus tries and enterprises to 
carry out trade promotion activities abroad. Public service platforms for foreign trade promotion 
were proactively established, to strengthen information disclosure, trade policy introduction, 
information searching, trade barrier c omplaining and IPR protection.  
60. Would China please indicate which promotion institutions organized import procurement 
events?  
61. Would China please indicate the public service platforms for foreign trade promotion 
established?  
Reply to question s 60 & 6 1: The activities organized by China Council for the Promotion 
of International Trade (CCPIT) to promote import include holding special import 
exhibitions and trade fairs to strengthen the publicity of import policies; researching and 
developing exhibition s and holding forum s during the exhibition period to strengthen 
the publicity of import policies  and organize enterprises to participate in the exhibitions 
organized by developing countries and emerging markets.  
The public service platforms for promoting import and export under the CCPIT include 
the CCPIT small and medium foreign trade enterprises import and export service 
platform, which mainly provides services include supply and demand information and 
commercial matches, foreign trade orders follow -up, import and export procedure 
management and domestic and foreign market access consultation and management.  
Page 21, paragraphs 3.35 to 3.38  
Building Pilot Free Trade Zones (hereinafter referred to as pilot FTZs) is a significant measure 
taken by the Chines e government on its own initiative to open up.  
62. Which kind of investments are being received with incentives of FTZ? Greenfield? Brownfield? 
Portfolio investments?  
Reply: The Chinese government encourages various kinds of foreign investments 
according t o law. No particular policies are adopted based on different investments.  
63. Using the United Nations CPC approach, what industries or service provider has the 
government incentives or preferences to be stablished in a FTZ and what investments are 
alread y being made?  WT/TPR/M/3 42/Add.1  
 
- 73 - 
 
  Reply: To facilitate investment, the Chinese government adopts pre -establishment 
national treatment and negative list for foreign investment management in pilot free 
trade zones. Negative lists for foreign investment suitable for FTZs are als o introduced. 
The lists are classified based on national industries. Restrictive measures on foreign 
investment are included. As to questions about using the CPC approach, the comparison 
table between classification of China 's national industries and the C PC approach made 
by National Bureau of Statistics of the People's Republic of China can act as a reference.  
64. How is made the decision of a FTZ location?  
Reply: The Chinese government will take an overall consideration of setting up new pilot 
free trade  zones according to national strategies on economic development.   
65. In terms national legislation/regulation, direct investment from abroad have the same 
treatment as domestic investment in a FTZ?  
Reply: According to relevant regulations in Pilot Free Tr ade Zones, foreign investors can 
enjoy pre -establishment national treatment when they invest in sectors not included in 
the negative list of pilot free trade zones.  
Page 24,  paragraph 3.56 
66. Currently, China is actively engaged in a number of FTA negoti ations, including the Regional 
Comprehensive Economic Partnership (RCEP), China -GCC FTA, China -Japan -Republic of Korea FTA, 
China -Georgia FTA and etc. Would China please indicate all the FTA negotiations currently in 
negotiation?  
Reply: Currently, China is  actively engaged in a number of FTA negotiations, including 
the Regional Comprehensive Economic Partnership (RCEP), China -Japan -Republic of 
Korea FTA, China -GCC FTA, China -Sri Lanka FTA, China -Maldives FTA, China -Israel FTA, 
China -Georgia FTA etc. Besides , China is engaged in the 2nd stage of China -Palestine FTA 
negotiation and follow -up negotiations on the Cross -straits Economic Co -operation 
Framework Agreement.  
Page 25,  paragraph 3.60 
67. During last year 's UN Sustainable Development Summit (New York, 2 5-27 September 2015), 
China pledged to establish a US$2 billion assistance fund and an institute for South -South 
cooperation and development. The report from the Chinese government reiterates China 's 
intention to create both the fund and the institute. Cou ld the Chinese government inform the 
current stage of creation of both the fund and the institute and provide additional details as to 
their goals and operational guidelines?  
Reply: Chinese President Xi Jinping announced the establishment of South -South 
Cooperation Assistance Fund at the Sustainable Development Summit of the 
70th anniversary of the United Nations. The fund for the first phase is 2 billion US dollars. 
The Ministry of Commerce of PRC has taken active measures to implement this initiative 
and is stepping up efforts to promote the preparatory work to ensure that the fund can 
be put into operation as soon as possible. We have the confidence that the launch of 
South -South Fund will further promote South -South cooperation so as to help the 
developi ng countries implement the 2030 sustainable development goals set by the 
United Nations.  
The Institute for South -South Cooperation and Development was established in 
April,  2016, in Peking University, China. This institute aims at summarizing and sharing 
the experience that China and other developing countries gained during their economic 
development and the state governance so as to help other developing countries cultivate 
high-end government management talents of comprehensive theoretical knowledge, 
broad international vision and open scientific thinking. Diversified development paths 
can be jointly explored and the implementation of 2030 sustainable development goals 
be promoted.  WT/TPR/M/3 42/Add.1  
 
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  5  BRUNEI (ON BEHALF OF  ASEAN)  
WT/TPR/G/342  
Page 7, paragraph  2.17 
ASEAN note s that China has sped up reform in the circulation system of domestic trade through 
comprehensive pilots which were launched in August, 2015. As efforts have been made to explore 
the establishment of traceability systems for important products with the par ticipation of a group 
of enterprises connecting urban and rural areas.  
1. Is there any information or publications of these pilot studies available that China can share?  
Reply : While making efforts to establish traceability systems for important products,  
China pays great attention to publishing and sharing relevant data and information. 
Please visit the following websites for the detailed information related to the pilot areas 
of traceability systems : http: //traceability.mofcom.gov.cn  ; http://www.zyczs.gov.cn  . WT/TPR/M/3 42/Add.1  
 
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  6  CANADA  
WT/TPR/G/342  
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; 
Macroeconomic Policy; Fiscal policy:  paragraph 2.11, page 6  
It is noted that fiscal expenditure has continued to favour areas including energy conservation, 
emission reduction and ecological environment. Government investment in these areas is also 
referenced in paragraph 2.18, page 7.  
1. Could China provide example s of the types of programs and initiatives that have received 
government support in the areas of energy conservation, emission reduction and ecological 
environment at the central level, as well as the amount of government support?  
Reply: Regarding governme ntal supporting measures for energy saving and 
environmental protection, etc., please refer to Program No. 14 -26 on pages 68-79, 
China's  Central Government Subsidy Notification  G/SCM/N/220/CHNG/SCM/N/253/  
CHNG/SCM/N/284/CHN for the year 2009 -2014.  
Part II.  Economic and Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; Modestly expanding 
domestic demand and doing a good job in supply -side structural reforms: 
paragraph  2.16, page 7  
It is n oted that six consumption projects were conducted in 2014, including in the area of green 
consumption. The concept of green consumption is also referred to in  paragraph 15, page 17 of 
the Secretariat report (as energy -saving products).  
2. Could China provi de information on the objectives, scope and results of the project undertaken 
in the area of green consumption? Are the 2014 projects linked to the guidelines on green 
consumption released by China in March 2016, and if yes, how?  
Reply: The promotion of th e green consumption project , which is one of the six major 
consumption projects, is aimed at promoting resource conservation and environmental 
improvement and nurturing ecological civilization idea and green consumption idea by 
promoting green products. Th e green consumption project includes the project of 
energy -saving products benefiting the public, project of replacing old products with new 
ones and reduction of purchase taxation on vehicles with displacement below 1.6 L, etc. 
The green consumption has e ffectively propelled the production and consumption of 
green products in China. The guidelines on green consumption released by China in 
March 2016 mainly aims at nurturing the idea of green production consumption, guiding 
the way of green life and consump tion modes, increasing the supply of green products 
and services and establishing the long -term mechanism for green consumption. The 
guidelines and the green consumption project are different policy expressions of the 
same guiding thought, with different f ocuses but mutual complementary.  
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; Accelerating the 
development of the service sector:  paragraph 2.20, page 7  
It is noted that the Chinese government has focused on promoting the development of emerging 
industries, such as energy conservation and environment protection.  
3. Could China describe the policy measures it is taking to promote these industries?  
Reply: China a ttaches great importance to the development of energy saving and 
environmental protection. In August 2013, the State Council issued Opinions on 
Accelerating the Development of Energy -saving and Environmental Protection Industry 
to drive the development of energy -saving and environmental protection industry by 
means of technical transformation, pollution abatement, and transformation of recycling WT/TPR/M/3 42/Add.1  
 
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  in industrial parks. It is to expand market consumption of energy saving and 
environmental protection products, p ropel market consumption of environmentally 
friendly products and renewable products and promote the government to purchase 
products of energy saving and environmental protection. In January 2013, the Ministry 
of Environmental Protection issued the Guideli nes on the Development of 
Environmentally Friendly Service Industry and issued the Notice of Approval on 
Launching the 5 th Batch of Environmental Service Pilots in July, 2016 to render active 
support to environmental service industry for exploring new deve lopment modes and 
mechanism.  
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; Accelerating the 
development of the service sector:  paragraph 2.21, page 7  
It is not ed that since the last review, the number of practitioners in the service sector has steadily 
increased, reduced costs like tax and fees have stimulated the market vitality, fixed assets 
investment has grown fast, and the ability to attract foreign capital  has improved. Trade structure 
has been constantly optimized  
4. With regard to the regulation of the professional services sector, could  China describe how costs 
have been reduced and how the attraction of foreign capital has improved? Could China also 
provide statistics on the number of foreign and domestic services practitioners in specific sectors 
(such as architecture and engineering) operating in its market?  
Reply : With respect to decreasing enterprise operational costs, recently, the Chinese 
governmen t has further promoted the streamlining of administration and the delegation 
of powers to lower levels; improved regulation and optimized services; rescinded and 
delegated 311 items of examination and approval of all non -administrative licensing; 
rescinded  123 items subject to vocational qualification licensing or identification; and 
put to a complete end the examination and approval of all non -administrative licensing. 
85% of the pre -stage examination and approval procedures of industrial and commercial 
registration were streamlined with the policy of three certificates in one and one license 
and one code in full operation. In -process and follow -up regulation is intensified and 
public service process is optimized. The general public and enterprises enjoy mo re 
convenience in business handling and the whole society is more enthusiastic about 
business launching and innovation. For the attraction of foreign investment, the first 
point is to further expand opening up, relax the access limitations to foreign funds  to 
service sectors; the second point is to fully exercise the foreign investment 
administrative system of pre -establishment national treatment plus negative list. The 
third point is to continuously improve investment environment and further intensify the 
IPR protection and protect the legitimate rights and interests of foreign investors 
according to laws and regulations, fostering the market environment featuring fair 
competition of all kinds of market players.  
With regard to the data of practitioners, the re are only overall statistics for the service 
industry and no data specifically regarding foreigners engagement in sub -industries. 
Details are as follows:  
Number of industry -based urban practitioners in 2014  
Industry   Number of practitioners  
(ten thousand  people)  
Agriculture, forestry, animal husbandry, fishery   284.6  
Mining  596.5  
Manufacturing   5,243.1  
Electric power, thermal power, natural gas, water production and supply  403.7  
Construction   2,921.2  
Wholesale and retail  888.6  
Transportation, ware housing and postal service   861.4  
Accommodation and catering  289.3  
Information communication, software and IT service  336.3  
Finance   566.3  
Real estate   402.2  
Leasing and business service  449.4  WT/TPR/M/3 42/Add.1  
 
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  Industry   Number of practitioners  
(ten thousand  people)  
Scientific research and technical service  408 
Hydropower , environment, public facility management  269.1  
Resident service, repair and other service sectors  75.4 
Education  1,727.3  
Health and social work  810.4  
Culture, physical education and entertainment   145.5  
Public management, social security and social o rganization   1,599.3  
(Data source: National Bureau of Statistics of China. ) 
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; strengthening the 
protection of inte llectual property rights: paragraph 2.22, page  8 
Canada notes that the report by the Government of China mentions that it has reinforced  the 
long-term mechanism.  
5. Could China clarify what this long -term mechanism refers to?  
Reply: It refers to informatio n disclosure regarding cracking down on IPR infringement 
and counterfeiting, the link of administrative enforcement of laws to criminal judicature, 
and the development of credit system, etc.  
Canada notes that implementation of China's  law enforcement in re lation to IPR infringement and 
counterfeiting is carried out by joint actions between central and local governments.  
6. Are China' s local governments also involved in the implementation of other aspects of China's  IP 
strategy aside from IPR enforcement?  
Reply: Chinese local governments mainly participate in the implementation of the 
following aspects of China's  IP strategy: formulate the policy measures for 
implementing the Guidelines on National Intellectual Property Right Strategies; 
establish working sys tems that promote the implementation of local IPR strategies; and 
collaborate in completing major tasks stipulated by the Guidelines on National 
Intellectual Property Right Strategies, such as providing service to medium -sized and 
miniature enterprises.  
7. To what extent are representatives from all central government agencies/departments 
responsible for IP situated at the local government level? For example, Canada understands that 
SIPO oversees provincial/municipal IP offices, and SAIC oversees provincial /municipal 
administrations for industry and commerce. Do other central government agencies/departments 
with responsibility for IP have similar local representation?  
Reply: SIPO is in charge of administrating the patent affairs of the whole country while 
intellectual property offices of provinces, autonomous regions and municipalities are in 
charge of administrating the patent affairs in their own administrative regions. SIPO 
directs local IP offices to implement work.   
Canada welcomes the statement that IPR  infringements and the manufacturing or selling of 
counterfeiting commodities have been effectively suppressed.  
8. Could China clarify how IPR infringements and the manufacturing or selling of counterfeiting 
commodities been effectively suppressed? What ki nd of measurement did China use to assess this?  
Reply: In 2014, the Chinese Customs detained nearly 24,000 batches of imported and 
exported goods suspected of IP infringements; in 2015, the figure was over 23,000. 
According to incomplete statistics, in the  first half of 2016, the Chinese Customs 
searched out 4,529 batches of IPR infringing commodities in the QingFeng Action. It can 
be seen that IPR infringements and counterfeit fabrication and sales have been WT/TPR/M/3 42/Add.1  
 
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  effectively curbed. The assessment on containmen t of IPR infringement is mainly carried 
out through annual social satisfaction surveys.  
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; Strengthening the 
protec tion of intellectual property rights:  paragraph 2.23, page 8  
Canada notes that China mentions the launch of the QingFeng action.  
9. Could China provide additional information about this action, including its objectives, tasks, 
timeline and results?  
Reply: QingFeng Action is aimed at stringently craking down the illegal conducts of 
exporting IPR infringing commodies, maintaining normal import and export trade 
orders, promoting the healthy develo pment  of foreign trade, lasting from 2015 to 2017. 
According to incomplete statistics, in the first half of 2016, Chinese Customs searched 
out 4,529 batches of IPR infringing commodities during QingFeng Action.  
Canada notes that China mentions that the Chinese government strengthened management over 
the source of produ ction.  
10. Could China outline what activities are conducted under this strengthened management, and 
what source of production refers to?  
Reply: Management over the source of production mainly refers to cracking down IPR 
infringing counterfeiting during th e link of production. The focus includes investigating 
and punishing such illegal conducts as unlicensed production, counterfeiting factory 
names, fake logos, standard non -conformity, cheating  on workmanship  and materials, 
selling inferior products at pric es of good quality and also includes cracking down on 
forging certificates of origin of production, in order to promote the quality of the regions 
with concentrated production . 
Canada notes that China is working to amend its Patent Law : 
11. Could China ind icate whether it plans, in that context and in the broader context of China's  
focus on innovation as a development priority, to review its approach to the grace period for 
patents?  
Reply: There are no related plans at present.  
Part II. Economic and Trade E nvironment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern; Pursuing innovation -driven 
development: paragraph  2.25, page  8 
Canada notes the statement according to which the Chinese government made effor ts to cultivate 
new elements, develop new industries and create new models for innovations.  
12. Could China clarify what these new elements, industries and models are?  
Reply: New elements refer to elements with innovative connotation, distinctive from 
traditional elements (such as capital and land) that promote economic development. 
New elements include scientific and technological achievements, patents, innovative 
entrepreneurs and managerial innovation, etc. New industries refer to emerging 
industries dri ven by innovation, such as new energy industry, green environmental 
protection industry, digital and cultural industry, etc. New modes refer to the sharing 
economic development modes and business operation modes driven by technology and 
managerial innovati on, such as carpool  (Didi Taxi), group buying, crowdfunding, 
crowdsourcing, etc.  
Canada notes that China refers to a boom in entrepreneurship and innovation.  WT/TPR/M/3 42/Add.1  
 
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  13. Could China indicate the extent to which non -practicing patent entities and patent quality, 
respectively, play any role in China's  innovation environment?  
Reply: There are no uniform definitions for non -practicing entities. Generally speaking, 
universities, scientific research institutes and patent operation organizations, etc. all 
can be regarded as non -practicing entities, the healthy development of which is 
conducive to the implementation transformation of innovation and IPR. SIPO continues 
to improve patent review quality and strives to protect the legitimate rights and 
interests of patentees, p romote the application of creations and inventions, and improve 
creativity with the view of promoting the scientific and technological progress and social 
and economic development by providing reliable review results for the society.  
Part II. Economic and  Trade Environment and Macroeconomic Policy Direction; Adjusting 
Economic Structure and Transforming Development Pattern, Advancing transformation 
and upgrading of traditional industries and energy conservation and emission 
reduction:  paragraph 2.29, page 9 
It is noted that pilots of carbon emissions permit trading are run in seven localities including 
Beijing, Tianjin, Shanghai, Chongqing, Guangdong, Hubei and Shenzhen. Canada understands that 
China intends to eventually implement a nationwide carbon tradi ng system.  
14. Could China provide additional details on the results of these pilots of carbon emissions permit 
trading, and how these pilots will contribute to the development of the nationwide system?  
Reply: November, 2011 marks the launch of pilots of c arbon emissions permit trading in 
Beijing, Tianjin, Shanghai, Chongqing, Hubei and Shenzhen. At present, the pilot work is 
in smooth progress with stable market operation. Based on the experience of pilot 
works, China is actively promoting the establishmen t of carbon emissions permit trading 
market in China, making steady progress in terms of system design, supporting policies 
and competence development, etc., has promulgated the Interim Measures for the 
Administration of Carbon Emission Permit Trading, dev eloped a state carbon trading 
registration system, put forward a total quota setting and allocating program for carbon 
emissions permit trading, established a carbon emission data report and auditing 
system, and plans to launch the carbon emissions permit trading market in China 
in 2017.  
Part II. Economic and Trade Environment and Macroeconomic Policy Direction; 
Continuing to Deepen the Reforms Steadfastly; Further promoting reform of the  
administrative examination and approval:  paragraph 2.38, page 10 
It is noted  that on 2 October 2015, the State Council released the  Opinions of the State Council on 
Implementing the Negative List System for Market Access . According to the Opinions, a negative 
list system would be piloted in some regions and will be official ly adopted across the country as 
of 2018.  
15. Is there any plan for developing a negative list for cross -border trade in services?  
Reply: As stipulated in the Opinions of the State Council on Implementing the Negative 
List System for Market Access, the neg ative list system for market access refers to a 
series of institutional arrangements where the State Council clearly lists the sectors, 
areas and businesses prohibited or restricted from the market within the territory of the 
People's Republic of China, an d governments at various levels take corresponding 
management measures according to law. All kinds of market players may enter the 
sectors, areas and businesses outside the negative list on an equal basis and according 
to law. Therefore, China assumes that  the requirements in the current negative list of 
market access for prohibiting and limiting investment business scope have covered 
sectors and authorities possibly involved in cross -border service.  There is no plan for 
developing a negative list for cross -border trade in services.  WT/TPR/M/3 42/Add.1  
 
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  Part II. Economic and Trade Environment and Macroeconomic Policy Direction; 
Continuing to Deepen the Reforms steadfastly: Reform of state -owned enterprises and 
development of the private economy:  paragraph 2.46, page 12  
The repor t mentions that in 2015, the State Council printed and issued the Guiding Opinions on 
Promoting the Model of Public -Private -Partnership in Public Service Sectors. The report goes on to 
note that private investment in fixed -assets (excluding rural household s) rose in 2015 by 10.1%, 
accounting for 64.2% of total investment.  
16. How are these public -private partnerships structured and implemented?  
Reply: In the public -private partnerships, the government, with a competitive 
mechanism, selects optimal private capital that is capable of investment, operation and 
management and both parties enter into contracts based on fairness and consultation 
where rights and responsibilities are defined, private capital provides public services 
and the government pays private  capital the equivalent price on the basis of results of 
evaluation on public service performance to guarantee private capital with reasonable 
profits.  
17. What incentives are used to attract private participation?  
Reply: To encourage the public -private pa rtnerships, we employ social  media  promotion, 
intensify legislation, formulate policies, develop demonstrative projects, etc.   
The report mentions that based on the Guiding Opinions on Deepening the Reform of State -Owned 
Enterprises , SOEs were divided into  commercial enterprises and non -profit enterprises.  
18. a) What were the criteria used for distributing SOEs amongst the two categories?  
 b) How are these two categories different from each other? For example, do non -profit 
enterprises have a responsibilit y in provide services to the general public? Are 
commercial enterprises expected to operate in accordance with commercial 
considerations?  
 c) To what extent is the running of commercial SOEs left to professional and independent 
managers?  
 d) What will happ en to SOEs that are debt -ridden and low performing? Will the 
government close down underperformers?  
 e) Will private investment be permitted in SOEs falling under the commercial category?  
Reply to Questions a -e:  
In December 2015, the State -owned  Assets  Supervision  and Administration  Commission , 
the Ministry of Finance, and NDRC jointly issued the Guiding Opinions on Deepening the 
Reform of State -Owned Enterprises(Guo Zi Fa Yan Jiu  [2015 ] No. 170) , which clearly 
divides SOEs into commercial and non -profit enterprises on the basis of strategic 
orientation and development objectives of State-owned capital, the roles, status quo and 
necessity of SOEs in economic and social development, and the main and core business 
scope. Meanwhile, there are clear provisions on such aspects as connation, reform, 
development, and regulation and performance evaluation of commercial and non -profit 
SOEs. Non -profit SOEs provide service to the society while commercial SOEs conduct 
commercialized operation as required by the market. China is actively handling the SOEs 
that are with huge debts, little profit and poor operation. We are also actively 
introducing other state -owned capital or non -state -owned capital of all kinds for equity 
diversification.  
The report mentions that based on the Guiding Opinions on Deepening Refo rm of State -Owned 
Enterprises , pilots on mixed -ownership reforms were accelerated in some protected industries, 
such as the railway, civil aviation, telecommunications and military industries.  WT/TPR/M/3 42/Add.1  
 
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  19. a) To what extent is private participation envisioned under  the mixed -ownership 
reforms? For example, is it anticipated that private investment will be permitted in 
parent SOEs?  
 b) To what extent will these mixed -ownership reforms be open to private foreign 
investors?  
 c) Could China please provide further detai ls on how these pilots were conducted and the 
 criteria used to evaluate the mixed -ownership reforms and any subsequent pilot 
 results?  
 d) Were these pilots conducted at both the central and local level? If yes, what were the 
pilots?  
 e) Can China provide  details on any next steps for reforms in these specific industries? 
For example, will the reforms be competed in the next five years?  
Reply to Question a -e: China encourages all kinds of capitals such as state -owned, 
collective and foreign capital to part icipate in the mixed ownership reform on SOEs. 
China allows the exploration of mixed ownership reform at the level of parent 
companies of SOEs. We insist state -owned capital hold stocks in particular areas clearly 
specified by the state to form reasonable market -oriented operation mechanism while in 
other areas, we encourage active introduction of investors of all kinds to form operation 
mechanism featuring diversified equity and efficient and flexible operation. 
September  2015, the State Council distribute d the Opinions on State -owned Enterprises' 
Development of Mixed Ownership Economy (Guo Fa [2015] No.  54), further identifying 
the general requirements, main principles, major tasks and supporting facilities for 
SOEs' development of mixed ownership economy.  Industries of electricity, oil, natural 
gas, railway, civil aviation, telecommunications, military industry, etc., in which SOEs 
hold a dominate position, are key fields to promote the development of mixed ownership 
economy, and various kinds of capitals (including foreign capital) are encouraged to 
participate in the reform of mixed ownership of SOEs. We have made a list of the first -
batch central enterprises, and are organizing the formulation of the implementation 
program for each pilot. At the same tim e, each province is also carrying out pilot work in 
local SOEs based on local conditions. In the second half of 2016, we will promote the 
implementation of the first -batch pilots and then the second -batch at appropriate time, 
to form duplicable and practic al modes and experience and to accelerate the 
establishment and improvement of legal systems. We will not set a timetable for the 
reform of mixed ownership but will publicize one example after another when it is well 
developed.  
The report notes that state -owned capital investment and operation companies were reorganized 
and rebuilt.  
20. Can China provide details on:  
a) How state -owned companies were selected as part of this process?  
b) Why were some of these organizations rebuilt? What policies were used to re -organize 
and rebuild these companies?  
c) Are there systems in place to track and monitor the progress of these newly re -
organized companies?  
Reply to Question a -c: Rebuilt should be more accurately translated as established. At 
present, the reorganization and establishment of the state -owned capital investment 
and operation companies is in progress. To follow up with the development of enterprise 
pilots, SASAC is in close contact with pilot enterprises to guide them in formulating 
reform measures and study the problems reflected by the pilot enterprises in a timely 
manner.  WT/TPR/M/3 42/Add.1  
 
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  Part III. Trade and Investment Development and Related Policies:  paragraph 3.1, 
page  15 
In paragraph 3.1, China notes that since the last review, the Chinese government has been 
committed to b uilding a new system of open economy and constantly improved the 
internationalized and convenient business environment based on rule of law. China also notes that 
it has continuously promoted opening up domestically and to the outside world, highly efficie nt 
resource allocation and in -depth market integration, fostered new advantages in participating and 
leading in the international economic cooperation and competition at a faster pace, and promoted 
reform through opening up.  
21. Canada welcomes the increa se to the minimum wage standard as well as the average monthly 
income of migrant workers in 2014 and 2015. In an environment of increased global economic 
integration which affects working conditions as well as further economic reform, what policies and 
measures has China put in place for the protection of the Chinese workers, including the protection 
of workers ' rights?  
Reply: The Chinese government attaches great importance to the issue of migrant 
workers to guarantee the legitimate rights and interests o f migrant workers with main 
measures as follows: 1. We improve the system of minimum -salary standards, properly 
guaranteeing the remuneration rights for low -income workers including migrant 
workers; 2. We are actively and prudently advancing the system of collective negotiation 
on salary to promote the normal salary increase for enterprise workers including 
migrant workers; 3. We continue to improve the long -term mechanism for salary 
payment for migrant workers. We have formulated the system of cash deposit  for salary 
payment and the responsibility system that general contractors are obliged to solve the 
problem of subcontractors owing salary. In 2016, we released the Opinions on 
Comprehensive Rectification on Outstanding Salary Payment for Migrant Workers; 4. We 
strengthen the supervision and enforcement of labo ur security and labo ur dispute 
solving; 5.  We promote migrant workers into urban citizenship in order. We promote the 
equalization of basic public services to gradually expand the scope of public serv ices 
that can be enjoyed by migrant workers.  
Part III. Trade and Investment Development and Related Policies; Trade and 
Investment Development; Inward and outbound direct investment:  paragraph 3.14, 
page 17  
The Secretariat report notes that investors from mainland China made direct investment in 
6,532  enterprises of 155 countries and regions.  
22. Can China provide a breakdown on how many of these outbound Chinese investors were 
Chinese SOEs?  
Reply: In 2015, the investors in the territory of China had direct  investment in 
6,532  enterprises from 155 countries and regions, of which 437 overseas enterprises 
are directed invested by state -owned enterprises.  
Part III. Trade and Investment Development  and Related Policies ; Promoting Foreign 
Trade Innovation and Dev elopment: Pushing forward transformation and upgrading of 
foreign trade: paragraph 3.23, page 19  
It is noted that China has improved the environment for the development of cross -border 
e-commerce via the internet. It is also noted in paragraph 3.24 that Ch ina has vigorously 
developed trade in services and created a favorable environment, resulting in an improved level of 
liberalization and facilitation.  
23. Could China explain what will be the implications of the new legislative measures on cyber 
security o n the business activities of foreign information technology  companies? How will China 
ensure that those measures will not impede commerce and stifle innovation?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China' s new legislation will neither affect the business activities of foreign IT 
compan ies nor affect innovation or cause unnecessary trade burden.  
Part III. Trade and Investment Development and Related Policies; Promoting Foreign 
Trade Innovation and Development; Pushing forward transformation and upgrading 
foreign trade:  paragraph 3.24, pa ge 19  
It is noted that In February 2016, the State Council decided to carry out pilots on innovation and 
development of trade in services in 15 provinces and municipalities (areas) including Tianjin to 
explore the systems and mechanisms suitable for and ca n facilitate the innovation and 
development of trade in services.   
24. Could China provide further information on the systems and mechanisms reference and specify 
which services were tested and whether the same services were tested in all 15 provinces?   
Reply: On February 22, 2016, the Chinese government released the Approval by the 
State Council on the Innovative Development of Trade Services in Pilot Sites. The 
approval put forward the exploration and improvement of management system for trade 
in services , whose contents include: to establish the promoting, servicing and regulating 
system linked with internationally prevailing practices of trade in services and explore 
the system and regime suitable for the innovation and development of trade in services. 
We carry out exploration on the legislation of local regulations in trade in services to 
develop a law -ruled, internationalized and convenient business environment. We 
strengthen overall coordination and establish inter -departmental coordination regime 
for trade in services to promote effective link and beneficial interaction between 
industry policies, trade policies and investment policies. We improve the promotion and 
service system for trade in services, featuring synergistic collaboration between 
govern ment, industry associations and enterprises and set up the system of 
communication with major enterprises engaged in trade in services.  
Part III. Trade and Investment Development and Related Policies; Paying Equal 
Attention to the Strategies of FDI Attract ion and Going Global; Improving 
competitiveness through going global:  paragraph 3.39, page 22  
The Ministry of Commerce recently revised the Measures on the Administration of Overseas 
Investment Projects. Can China please provide details on:  
25. The criteri a used to select overseas projects . 
Reply: The Chinese government upholds the principle of government guidance, 
enterprise dominance and market operation, encourages enterprises to have overseas 
investment and cooperation based on their own need and market  conditions and have 
active participation in the economic development of host countries for mutual benefit 
and win -win results. Enterprises can decide overseas investment projects on their own 
based on their own business principle, free from governmental i nterference.  
26. The extent to which overseas investment projects are tracked or monitored by the government 
of China.  
Reply: The Chinese government upholds the principle of government guidance, 
enterprise dominance and market operation, encourages enterpr ises to have overseas 
investment and cooperation based on their own need and market conditions and have 
active participation in the economic development of host countries for mutual benefits 
and win -win results. The Chinese government promotes the overseas  investment and 
cooperation of enterprises by streamlining administration, delegating authorization and 
improving service, including:  
1. Implementing examination and approval facilitation measures for overseas 
investment in the principle of registration pl ays a dominant role while 
examination and approval play an auxiliary role to streamline examination 
and approval procedures for overseas investment.  WT/TPR/M/3 42/Add.1  
 
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  2. Regularly publishing such public service products as Country -Based 
Guidelines for Overseas Investment an d Cooperation to offer information 
services to overseas investment of enterprises.  
3. Releasing timely risk warnings and reminding to help enterprise prevent 
risks.  
Part III. Trade and Investment Development and Related Policies: Paying Equal 
Attention to the Strategies of FDI Attraction and Going Global; Improving 
competitiveness through going global:  paragraph 3.40, page 22  
It is noted that China proposed the major cooperation initiative of jointly building a Silk Road 
Economic Belt and a 21st Century Mar itime Silk Road.  
27. Will foreign services providers be able to compete for these construction -related contracts?  
Reply: In pressing ahead with the Belt and Road Initiative, China adheres to the 
principle of market operation, follows market rules, internat ionally prevailing practices, 
gives full play to the dictating role of market and the principal role of enterprises of all 
kinds in resource allocation and gives proper play of the role of government. China 
welcomes enterprises with intent and capability w ho participate in the development of 
the Belt and Road Initiative and the cooperation in each area in the promotion of 
continued mutually beneficial cooperation between countries and enterprises.  
Part III. Trade and Investment Development and Related Polic ies: Paying Equal 
Attention to the Strategies of FDI Attraction and Going Global: Improving 
competitiveness through going global:  paragraph 3.41, page 22  
It is noted that the Guiding Opinions on Promoting International Capacity and Equipment 
Manufacturing Cooperation is a new measure taken by the Chinese Government to adapt to the 
New Normal for global economic growth.  
28. Can China please elaborate on how it will open up further to the outside world? What policies 
will be used to guide this new global econ omic growth initiative?  
Reply: The acceleration of economic recovery in the world entails strengthened real 
economy and reinforced international cooperation. By advocating the combination of 
international production capacity and equipment manufacturing, Ch ina means the 
combination of China's  fine-quality capacity and equipment with the key technologies 
and advanced equipment of the developed countries and with the need of urbanization 
and industrialization of developing countries for better allocation of re sources and 
element in the world. To promote the international capacity cooperation, China will 
further improve foreign cooperation system, reform the management system of foreign 
cooperation, promote facilitation for foreign cooperation of enterprises and  encourage 
financial organizations, equity investment organization and insurance organizations, etc. 
to offer strong financial and insurance support to enterprises.  
It is noted that China has launched bilateral institutional capacity cooperation with 17 c ountries.  
29. Can China elaborate on policies used to launch bilateral institutional capacity cooperation, and 
the criteria used to select countries for bilateral cooperation.  
Reply: China has launched bilateral capacity cooperation with 17 countries, sig ned 
contracts of bilateral capacity cooperation, set up an inter -ministerial work platform 
between bilateral governments and organized policy exchanges and project coordination 
in various forms. China choose the countries for bilateral capacity cooperation  mainly 
based on the cooperation willingness of both parties, resource endowment, industry 
supporting facility, market demand and other factors and China is in a position of 
launching institutional capacity operations with countries of which conditions are  
mature.  WT/TPR/M/3 42/Add.1  
 
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  Part III. Trade and Investment Development and Related Policies: Constructing 
Economic and Trade Partnerships based on Mutual Benefit and Win -Win; Safeguarding 
the multilateral trading system with concrete actions:  paragraph 3.52, page  24 
It is n oted that with China's active participation, the negotiations to expand the coverage of the 
Information Technology Agreement (ITA) concluded in December 2015.  
30. China's  expanded ITA tariff elimination schedule indicates that the first tariff cuts for the  
covered products were to take place on July 1, 2016. Can China confirm when implementation of 
the first tariff cuts under the agreement will begin?  
Reply: According to the Chinese law, China needs to submit the schedule of concessions 
for the ITA expansio n to the Standing Committee of the National People's Congress for 
consideration and approval, before eliminating tariffs and submitting notifications to the 
WTO. China has already started the domestic approval process, and will implement the 
outcome of the  ITA expansion negotiations soon after the process.  
Part III. Trade and Investment Development and Related Policies: Constructing 
Economic and Trade Partnerships based on Mutual Benefit and Win -Win; Safeguarding 
the multilateral trading system with concret e actions:  paragraph 3.53, page 24  
It is noted that China promotes trade liberalization of environmental goods by participating in the 
negotiation of the Environmental Goods Agreement (EGA).  
31. Could China elaborate on the environmental benefits it expect s to achieve in the EGA? More 
specifically, how does China see the EGA helping to address the environmental challenges it faces?  
Reply:  China launched the negotiations on EGA in 2014 with 13 other WTO members 
including Canada with the goal of promoting fre e trade in green goods. China believes 
that reducing tariffs on environmental goods would contribute to the proliferation of 
green goods and technologies thus help addressing the environmental challenges that 
we all face. In this regard, China believes tha t other WTO members, in particular those 
who are the signatories to the Paris Agreement on climate change are welcome to join 
this initiative, thereby promoting the international environmental protection agenda and 
contributing to the implementation of the  Paris Agreement.  
32. What other mechanisms does China use to promote trade liberalization of environmental 
goods?  
Reply: Along with other APEC economies, China has made great efforts to promote green 
growth and seek practical, development -supportive and t rade enhancing solutions to 
address environmental challenges. China committed in 2012 to reduce the applied tariff 
rates of a list of 54  environmental goods to 5% or below by the end of 2015 and 
implemented this commitment last year.  
Part III.  Trade and In vestment Development and Related Policies: Constructing 
Economic and Trade Partnerships based on Mutual Benefit and Win -Win; Safeguarding 
the multilateral trading system with concrete actions : paragraph 3.54, page 24  
It is noted that China has been continu ously pushing forward its accession negotiation to the 
Government Procurement Agreement (GPA) . In December 2014, China submitted its 6 th offer and 
conducted in -depth consultations with the GPA parties. Canada welcomes China's  continued efforts 
towards GPA accession.  
33. When  will China table its next revised GPA market access offer?  
Reply: Currently, China is making preparations for the revised offer. The specific time of 
submission depends on the evaluation and coordination.  WT/TPR/M/3 42/Add.1  
 
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  WT/TPR/S/342  
Part I. Economic E nvironment: Fiscal Policy and Structural Reform; Structural reform 
measures:  paragraph 1.18, page 20  
It is noted that China continues to promote private participation in the economy as an integral part 
of the process of structural reform and that the numbe r of private enterprises and individual 
industrial and commercial households has been steadily growing.  
34. Could China provide information on the current level of participation of foreign firms, including 
any related growth trends, in the services sector?  
Reply: In 2015, there were 26,575 foreign -invested enterprises established all over the 
country with a year -on-year growth of 11.8%, actually utilizing foreign investment 
totaling RMB  781.35  billion (equivalent to US$126.27 billion) with a year -on-year 
growth of 6.4% (excluding data of banks, securities and insurance). As of late 
December  2015, there were 836,404 foreign -invested enterprises in the non -financial 
sectors, with the actually utilized foreign investment amounting to US$1,642.3 billion. 
In 2015 , the average investment intensity of foreign -invested enterprises was further 
increased. The average investment amount of a single newly established foreign -
invested enterprise was US$15,300,000 with an increase of 5.1% compared with that in 
2014 (US$14,5 60,000). The industrial structure of foreign investment was further 
optimized. The service sector actually utilized foreign investment totaling 
RMB 477.05  billion (equivalent to US$77.18 billion) with a year -on-year growth of 
17.3%, accounting for 61.1% of  total foreign investment in China. The manufacturing 
sector actually utilized foreign investment totaling RMB 245.23 billion (equivalent to 
US$39.54  billion), basically the same as the previous year, accounting for 31.4% of 
China's total foreign investmen t. In 2015, 1,466 foreign -invested enterprises were 
established by way of merger and acquisition, actually utilizing foreign investment 
US$17.77 billion, with a respective year -on-year growth of 14.4% and 137.1%. The 
proportion of merger and acquisition to  the actually utilized foreign investment rose 
from 6.3% in 2014 to 14.1% in 2015.  
Part I Economic Environment: Fiscal Policy and Structural Reform; Structural reform 
measures:  paragraph 1.23, page 22  
As we have seen in documents released by China, such as  the 13th Five Year Plan and the Draft 
Steel Adjustment Policy (2015), China appears to be concerned with overcapacity in the steel 
sector. In this regard China has mentioned that it intends to cut capacity by 100 to 
150 million  tonnes.  
35. Could the gover nment of China provide an update on the amount of capacity that has been cut 
in the steel sector in 2015 and provide further details about its plans and the timeline by which its 
stated goal of a reduction of 100 to 150 million tonnes will be achieved?  
Reply: In recent years, China has vigorously pressed ahead with the reduction of steel 
production capacity and has already achieved significant results. On this basis, the State 
Council has set the following goal: starting from 2016, another 100 to 150 millio n tons 
of production capacity of crude steel will be reduced in five years so as to optimize  the 
rate of capacity utilization. The Chinese Government will work together with the 
industry to enhance overall consideration and coordination, strengthen supervi sion and 
examination, and implement  the measures put forward by the Guiding Opinions.  
36. Could China elaborate on the total capacity of the electrolytic aluminum industry in China?  
Reply: According to the statistics of National Bureau of Statistics, the p roduction 
capacity of electrolytic aluminum was 35,490,000 tons in 2014.  
37. Could China explain how China ensures that the backward production capacities remain 
closed? Will there be oversight by central, provincial or local authorities to ensure that the  WT/TPR/M/3 42/Add.1  
 
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  provincial and local authorities do their due diligence to ensure backward production capacities 
remain closed. What are there penalties if not compliant?   
Reply: The backward production capacities are closed down by demolition and sealing 
up. Those that have already been closed down will not resume production. It is pointed 
out in the Guiding Opinions of the State Council on Resolving Overcapacity  (Guo Fa 
[2013] No. 41) that, it is necessary to strengthen the supervision and inspection of the 
implementati on, adopt the accountability system for law enforcement, and circulate a 
notice of criticism. We will strengthen the investigation and handling of cases, and hold 
relevant persons responsible  for the ineffective supervision of the establishment of 
industri al projects with excess capacity in violation of laws and rules. Containing 
repeated construction and resolving overcapacity shall be listed in the performance 
assessment index system of local governments.  
38. In addition to curbing new capacity expanding projects, has the government of China identified 
specific targets for capacity reduction in the aluminum sector as it has done for the steel sector?  
Reply: The Guiding Opinions of General Office of the State Council on Building a 
Favorable Market Environme nt for Promotion of Structural Adjustment, Transformation 
and Benefit Creation of Nonferrous Metals Industry (Guo Ban Fa [2016] No. 42) came up 
with an objective to maintain the capacity utilization rate of electrolytic aluminum 
higher than 80%.  
39. Is the  government of China taking any other measures to address overcapacity issues in the 
aluminum sector? If so, could China provide further details on actions being taken?  
Reply: The Guiding Opinions of the General Office of the State Council on Creating a 
Favorable Market Environment to Promote Structural Adjustment, Transformation and 
Increases in Benefits in the Non -Ferrous Metal Industry (Guo Ban Fa [2016] No.  42) 
requires that efforts be made to strengthen fair and impartial law enforcement in 
environment al protection, energy conservation, quality, safety and technology, to 
ensure the exit and disposal of excess capacity according to laws and regulations, and 
guide the transfer and exit of uncompetitive capacity.  
Part I. Economic Environment: Table 1.5 Com position of trade in services, 2011 -15, 
page  29 
It is noted that China has shown growth in trade in services over the 2011 -2015 period.  
40. Could China provide more disaggregated data, e.g. by main trading partners and by main 
sectors?  
Reply: See the deta ils on the website of China Trade in Services at : 
http://tradeinservices.mofcom.gov.cn/c/index.shtml  . 
Part II.  Trade and Investment Regime: Institutional and Legal Framework:  
paragraph  2.4, page 32  
It is noted that China's  judicial system includes special courts dealing with railway and maritime 
issues.  
41. Could China please provide information regarding the scope of the special railway and 
maritime courts jurisdiction, including their jur isdiction outside of China' s territory?  
Reply: The Supreme People's  Court formulated the Regulations of the Supreme People's  
Court on the Scope of Case Acceptance of Maritime Courts  in December 2015, stipulating 
the scope of jurisdiction of maritime courts , including six categories, i.e. maritime 
infringement disputes, maritime commerce contract disputes, disputes over 
development, utilization and environmental protection in the ocean and maritime 
navigable waters, other maritime and maritime commerce dispu tes, maritime WT/TPR/M/3 42/Add.1  
 
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  administrative cases, as well as cases under special maritime procedures, totaling 
108 specific types of cases.  
In 2012, the Supreme People's  Court formulated the Regulations on the Scope of 
Jurisdiction of Cases of Railway Transportation Cou rts, stipulating the jurisdiction of 
railway transport courts, including criminal cases to which the railway transportation 
procuratorate at the same level institutes a public prosecution in accordance with the 
law, relevant criminal cases of private prose cution, relevant civil lawsuits relating to 
railway transport, railway safety and railway property, as well as the relevant civil cases 
of the first instance, as designated by the high people's court, to be accepted by the 
railway transportation court.  
Part II. Trade and Investment Regime - Institutional and Legal Framework:  
paragraph  2.5, page 33  
It is noted that Special Economic Zones may also develop regulations that can be applied in their 
jurisdiction, in accordance with the Legislation Law.  
42. Could China clarify whether labour and environment laws in the pilot FTZs are different or the 
same as the rest of China? If they are different, please elaborate on the differences.  
Reply: The existing environment laws and regulations in the FTZs are the same as  those 
in the rest of China.   
Part II. Trade and Investment Regime: Box 2.1 Procedures to Approve Legislation in 
China, page  33 
It is noted that the State Council can determine that it is not necessary to publish for public 
comment certain draft laws and a dministrative regulations.  
43. Could China describe the criteria that are used to determine when draft laws and regulations 
are not required to be published for public comment?  
Reply: China has been attaching great importance to the enhancement of legislat ion 
transparency and public participation. The Legislation Law  revised in March 2015 
increases the principle of openness of legislation in the General Provisions. It is 
provided in Article 37 of the Legislation Law that, for a bill which has been put on th e 
agenda of the session of the Standing Committee, after the session of the Standing 
Committee, the draft law, and drafting and amendment explanations, shall be presented 
to the public for comments, unless the Chairman 's Committee decides by meetings not 
to make them public. It is provided in Clause 2 of Article 67 of the Legislation Law  that, 
drafts of administrative laws and regulations shall be made public for comments, unless 
the State Council decides not to make them public.   
It is noted that regulatio ns may be formulated at the local level in areas including environmental 
protection.  
44. Could China elaborate on specific areas of environmental protection that can be regulated at 
the local level? How are regulatory authorities in the field of environmen tal protection shared 
between the local, provincial and central levels? Who is responsible for implementing and enforcing 
regulations once they are made?  
Reply: According to Chinese environmental protection laws and regulations, and the 
principle of local management, the environmental supervision and law enforcement shall 
be mainly conducted by local authorities. The provincial and central organs mainly 
provide supervision and guidance. They may directly participate in the investigation and 
handling of the trans -regional cases or material cases of violation against environment 
laws.  According to the environmental protection laws, the environmental protection 
shall be enforced and implemented by enterprises, individuals, local people 's 
governments or environm ental protection departments at various levels. Generally 
speaking, the local people 's government is responsible for the environmental protection WT/TPR/M/3 42/Add.1  
 
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  within its region, and the environmental protection department is responsible for the 
unified supervision and management of the environmental protection within the region. 
Once formulated, the environmental protection regulations shall be enforced by 
departments designated  by laws.   
It is noted that approved Departmental rules are published.  
45. Could China please  confirm whether draft Departmental rules applying to the financial sector 
are generally published for comment before final rules are approved?  
Reply: According to the Procedural Regulations on the Formulation of Rules (Guo Ling 
[2001] No.  322) and the Standard Procedures for Formulation of Rules  (Yin Ban Fa 
[2002] No. 268) of People's Bank of China, where the drafted rules are directly relating 
to the immediate interests of citizens, legal persons or other organizations, and relevant 
authorities, organizat ions or citizens hold much different opinions, such rules shall be 
made public to the society or at the public hearings for comments from all sectors of 
society.  
According to the Regulations on Formulation Procedures and Management of Normative 
Documents o f People's  Bank of China , the drafting departments, when drafting 
normative documents, shall solicit opinions in writing, or hold symposiums or 
argumentation meetings, etc. to obtain opinions from relevant organizations and 
individuals, based on the conten ts involved in the normative documents.  
When normative documents of significant influence on the economy and finance within 
the jurisdiction, or relevance to important rights and obligations of citizens, legal 
persons or other organizations are drafted, t he drafts shall be made known to the 
society for extensive opinions from people and the public concerned. The drafts shall be 
made public for comments on the official website or in other ways that can make them 
extensively known for no less than 30 days. T he opinions gathered and adopted shall be 
made public in an appropriate form.   
Part II. Trade and Investment Regime: Institutional and Legal Framework:  
paragraph  2.7, page 34  
It is noted that China's  Foreign Trade and Cooperation Economic Gazette, issued b y MOFCOM, 
publishes China's  trade -related laws, regulations and rules but that the text is only available in 
Chinese.  
46. Does China intend to make the text of trade -related laws, regulations and rules published on 
the Gazette available in English in the f uture?  
Reply: The Ministry of Commerce issues 80 gazettes per year, comprising 
339 documents of about 5,000 pages, which are simultaneously, published on the 
website of the Ministry of Commerce with available email subscriptions.  Currently, the 
titles of l aw, regulations and governmental rules as published in the Gazettes are both in 
Chinese and English.  
47. Can China please clarify how it determines what financial sector measures are considered 
trade -related and therefore published?  
Reply: People's  Bank of  China verifies all the normative documents that are released to 
the public. If it is found in the verification that any normative document will affect the 
trade in goods, services, intellectual property rights and foreign exchange control, PBOC 
shall copy  it to the Ministry of Commerce when releasing such normative document, 
which will then be published by the Ministry of Commerce in China Foreign Trade and 
Cooperation Economic Gazette . WT/TPR/M/3 42/Add.1  
 
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  Part II. Trade and Investment Regime: Trade Policy Framework and Objec tives; 
Institutional framework:  paragraph 2.10, page 35  
It is noted that, in additional to the roles of the National Development and Reform Commission 
(NDRC) and MOFCOM, the Ministries of: Agriculture, Environmental Protection, Finance, Industry 
and Inform ation Technology, and Transportation are also involved in the formulation and 
implementation of trade policy.  
48. Could China provide additional detail on the specific role and responsibilities of the Ministry of 
Environmental Protection in the formulation  and implementation of trade policy ? 
Reply: As to the domestic performance management of international convention for 
ozone depleting substances (ODS), Ministry of Environmental Protection (former State 
Environmental Protection Administration), Ministry of  Commerce (former MOFTEC) and 
General Administration of Customs jointly established National Management Office for 
Import and Export of ODS in July of 2000 in charge of the daily examination and 
approval of ODS import and export and in coordination with re levant departments in 
cracking down the illegal import and export trade activities of ODS at the same time. 
The office is set in the Ministry of Environmental Protection, mainly responsible for the 
daily administrative examination and approval of ODS impor t and export, besides, 
externally in coordination with international organizations and contractural states in 
management of ODS import and export and internally in execution of unified ODS import 
and export under centralized management, setting management quota of ODS import 
and export, collecting, sorting and analyzing data in ODS import and export trade and 
supervising the regulations compliance of import and export enterprises.   
In addition, as the competent authority of chemical products for industrial use involved 
in Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain 
Hazardous Chemicals and Pesticides in International Trade , the leading ministry for the 
performance of Stockholm Convention on Persistent Organic Pollutants (POP s), and the 
contact point and competent authority of Basel Convention on the Control of 
Transboundary Movements of Hazardous Wastes and Their Disposal , the Ministry of 
Environmental Protection needs to take measures to ensure that the import and export 
of related chemicals and wastes under the control of such conventions abide by the 
provisions of conventions. The specific duties include coordination with such relevant 
departments as Ministry of Commerce in formulation of trade policy to ensure the trade 
policy in conformity with the requirements of relevant international environmental 
conventions. The Ministry of Environmental Protection will also cooperate with the 
Ministry of Commerce in formulation of trade policy involving environmental protection 
and p rovide technical advice on the environmental issues concerned.   
Part II. Trade and Investment Regime: Trade Policy Framework and Objectives; 
Institutional framework:  paragraph 2.11, page 35  
It is noted that MOFCOM is involved in the subgroup dealing with e conomic reform and 
environmental protection under the National Leading Group for Comprehensive Deepening Reform 
established in 2013.  
49. Could China indicate which other Ministries participate in the economic reform and 
environmental protection subgroup an d could China provide an update on the priorities and focus 
areas of this subgroup, any planned projects or areas of research, and the timeline for next steps?  
Reply: Over ten ministries and commissions including National Development and Reform 
Commission,  Ministries of: Environmental Protection, Science and Technology, Finance, 
Land and Resources, Agriculture, Water Resources and Commerce join hands in research 
on important reform issues in economic system and ecological civilization system, in 
coordinatio n and promotion of the formulation and implementation of relevant reform 
policies and measures. In 2016, the key reform in ecological civilization field focuses on 
dozens of tasks including: regulations on formulation, demarcation and adherence to 
ecologic al protection red line, formulation of implementation scheme for pollutant 
discharge license system and promotion of vertical management system reform for WT/TPR/M/3 42/Add.1  
 
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  monitoring, supervision and law enforcement by environmental protection agencies at 
sub-provincial le vel.  
Part II. Trade and Investment Regime: Trade Policy Framework and Objectives: Trade 
policy formulation and objectives:  paragraph 2.13, page 35  
In the context of trade policy objectives, it is noted that China remains concerned about the 
protection of the environment. The report also notes the guiding of FDI into environmental 
protection industries as one example of where these goals are reflected.  
Besides the FDI example given in the report, are there other areas of trade policy where China's  
environm ental goals are reflected, and what other mechanisms are being used to advance such 
goals?  
Reply: For instance, the first is the Administrative Measures for Import and Export of 
Ozone Depleting Substances  (Ministerial Decree No. 26) issued by Ministry of 
Environmental Protection together with Ministry of Commerce and General 
Administration of Customs in January of 2014; the second is the Guidelines for 
Environmental Protection in Foreign Investment Cooperation  issued by Ministry of 
Commerce and Ministry of Environmental Protection in February of 2013. Furthermore, 
according to Basel Convention on the Control of Transboundary Movements of 
Hazardous Wastes and Their Disposal , the environmental objective in China is to 
implement non -hazardous disposal of hazard ous wastes all over the world. Therefore, 
China shall start from its own by performing the prior informed consent procedure in 
strict accordance with requirements of convention before exporting hazardous wastes, 
and export upon the approval of relevant com petent authorities.   
Part II: Trade and Investment Regime: Trade Policy Framework and Objectives: Trade 
policy formulation and objectives:  paragraph 2.14, pages 35 -36 
The Secretariat report refers to China's  Going Abroad Policy, which encourages outward di rect 
investment. The Draft Steel Adjustment Policy (2015) also appears to encourage Chinese 
enterprises to accelerate investment in the steel sector of other countries. Since the excess 
capacity in the steel sector is global in nature, Canada is concerned that moving or expanding 
steelmaking capacity in other countries will not resolve the problem.  
50. Can the Government of China comment on whether the Going Abroad Policy applies to the 
steel sector?  
Reply: China supports Going Abroad policy in enterprises  making overseas investment 
while sticking to market orientation and independent decision -making principle for 
enterprises. Going Abroad policy also applies to the steel sector. Enterprises are 
encouraged to go abroad and conduct capacity cooperation in va rious sectors including 
steel sector, integrating the respective advantages of China and other countries to 
better meet the needs of different countries, which is to encourage enterprises to 
optimize the allocation of resources throughout the world in esse nce.  
51. Could China please identify in what sectors Chinese companies, including SOEs, are 
encouraged to make foreign investments?  
Reply: China supports Going Abroad policy in enterprises making overseas investment 
while sticking to market orientation an d independent decision -making principle for 
enterprises. Enterprises will autonomously determine the overseas investment direction 
pursuant to such factors as the economic environment at home and abroad, market 
situation, their comparative advantages and d emands of investment destination 
countries.   WT/TPR/M/3 42/Add.1  
 
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  Part II.  Trade and Investment Regime; Participation in the World Trade Organization:  
paragraph 2.17, page 36  
On 1 April 2014, China submitted its notification of Category A commitments under the Agreement 
on Tra de Facilitation and on 4 September 2015 China ratified the Trade Facilitation Agreement.  
52. When does China plan to submit its Category B commitment notification?  
Reply: At present, China is actively researching and evaluating the implementation date 
for Category B measures and will make notification in accordance with requirements in 
the Trade Facilitation Agreement .  
53. What is China's  timeline for implementing the remaining TFA provisions?  
Reply: China will implement Category A commitments upon validat ion of the agreement 
as per the provisions of the Trade Facilitation Agreement .  
Part II. Trade and Investment Regime: Participation in the World Trade Organization:  
paragraph 2.19, page 36  
China has submitted a large number of notifications to the WTO dur ing the period under review, 
notifications on domestic support remain pending. Canada would welcome this notification as part 
of China's  WTO commitments.  
54. Could China explain why its notifications on domestic support remain pending?  
Reply: China has alw ays attached great importance to the transparency principle as a 
basic principle of the WTO. The general situation of China's  performing transparency 
obligation is sound in terms of agriculture sector. According to the statistics of the WTO 
Secretariat, th e overdue notification in agricultural field is rather common while the 
number of overdue notification in China is less than other major members. As to the 
notification of domestic support, Chinese party is preparing for the notification 
regarding domestic  support since 2010 and will provide the information as soon as 
possible upon completion. As a great agricultural country, China features huge regional 
differences in agricultural production conditions, along with large agricultural 
population, a wide vari ety of agricultural products and multifarious subsidy policies 
required by various regions. Hence, it is rather difficult to deal with agricultural policy of 
China in a simple one size fits all way. During the process of summarizing the 
agricultural subsid y policies in various regions and preparing the notification documents 
as required by Agreement on Agriculture , we face very heavy workload, quite time -
consuming and wishing for understanding from all parties.  
It should be noted that agricultural subsidy is limited in China, and the subsidy must be 
provided in the approach that match the local conditions best. As China is a vast country 
with a large agricultural sector, there are huge differences in agricultural production 
conditions among different region s, there is a large agricultural population and wide 
variety of agricultural products, therefore, it is almost impossible to make one policy 
that fits for all regions, and local subsidy policies often have their own characteristics. 
Such situation makes it  very difficult to handle the sorting and calculation of support 
measures in a simple and unified manner.  This has increased our workload and working 
hours in collecting information on agricultural subsidy and preparing the notification. 
We hope that Membe rs may understand this.  
Part II. Trade and Investment Regime: Foreign Investment Regime; Regulatory 
framework and market access:  paragraph 2.24, page 37  
It is noted that China is in the process of amalgamating its regulations on foreign investment into 
one statute, the draft Foreign Investment Law . 
What are the expected timelines for implementing the draft Foreign Investment Law?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China's  Ministry of Commerce drew up Foreign Investment Law of the People's 
Republic of China  (Draft for Public Opinions)  in January of 2015 to solicit opinions from 
the public, with the purpose of creating more stable, transparent and predictable legal 
environment for foreign investment. The Chinese party will push the early issuance of 
relevant laws according to domestic le gislation procedures in the next step, while there 
is no specific validation timetable by now.   
55. Article 32 of the draft Foreign Investment Law lists a broad array of factors to be considered in 
the review of market entry license applications, including , but not limited to, the investments 
impact on energy resources, technological innovation, employment, environmental protection, 
work safety, regional development, capital account management, competition, public interests, 
etc. Does China intend to furthe r clarify how these factors will contribute to review decisions?  
Reply: At present there is no final conclusion in regard thereof because Foreign 
Investment Law  is in the process of formulation.  
56. Does China intend to include a mechanism for the review and appeal of decisions under the 
proposed Foreign Investment Law?  
Reply: At present there is no final conclusion in regard thereof because Foreign 
Investment Law  is in the process of formulation.  
Part II. Trade and Investment Regime: Foreign Investment R egime; Examination and 
approval procedures:  paragraph 2.33, page 40  
It is noted that, in addition to the restrictions detailed in China's  Catalogue for the Guidance of 
Foreign Investment Industries (revised 2015), foreign investment projects in China are a lso 
subject to NDRC verification (approval) in accordance with the Catalogue of Investment Projects 
Subject to Government Verification (2014).  
57. Is it China' s intention that this separate catalogue and investment verification regime will be 
replaced by t he forthcoming Foreign Investment Law and the Market Access Negative List (2016)?  
Reply: The Special Administrative Measures for Access of Foreign Investment to Pilot 
Free Trade Zones (the Negative List) specified the special administrative measures for 
access of foreign investment that do not conform to national treatment and other 
principles. Currently, the Measures are only applicable to the four Pilot FTZs in Shanghai, 
Tianjin, Guangdong and Fujian. The sectors other than those specified in the Negative  
List will be managed in accordance with the principle of treating domestic and foreign 
investors equally within the FTZs. The Catalogue for the Guidance of Industries for 
Foreign Investment (the Investment Catalogue) is applicable to investments within th e 
territory of China by overseas investors. Currently, foreign investors need to abide by 
China's  laws and regulations when investing in China, including the Investment 
Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management 
system for foreign investment.   
58. If not, can China clarify the role of a separate verification regime and catalogue and how the 
Catalogue of Investment Projects Subject to Gover nment Verification will interact with the 
forthcoming Foreign Investment Law  and the Market Access Negative List (2016)?  
Reply: Refer to the Reply in Item 58.  
Part II. Trade and Investment Regime: Foreign Investment Regime; Examination and 
approval proced ures:  paragraph 2.42, page 43  
It is noted that the Circular of the State Council on Distributing the Trial Measures on National 
Security Review of Foreign Investment in the Pilot Free Trade Zones (2015) clarifies standards for 
conducting security reviews o f foreign investment in the pilot free trade zones. Specifically, 
reviews will evaluate foreign investments against a broad array of factors, including economic 
stability, social order, morality, and Internet safety.  WT/TPR/M/3 42/Add.1  
 
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  59. Can China clarify what is meant by these terms, and how they will contribute to review 
decisions to ensure greater certainty for foreign investors?  
Reply: Trial measures for the national security review of foreign investment in pilot free 
trade zones have listed factors to be considered for  reviews, including the impact on 
national defence security, stable operation of national economy and social basic life 
order etc. All such factors are around the core, namely national security. According to 
National Security Law of the People's Republic o f China , national security refers to the 
state of relatively no danger and free from internal and external threat for state power, 
sovereignty, unity and territorial integrity, people 's well -being, economic and social 
sustainable development and other majo r national interests, as well as the ability of 
guaranteeing continuous security state. China's  security review of foreign investment 
will always take good disposal of relationship between opening to the outside world and 
national security as an important principle, so as to actively attract foreign investment 
and avoid generalization of security review.   
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Tariffs; Bilateral and Regional Trade Preferences:  paragraph 3.17,  page 51  
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, reads as a Most -Favoured 
Nation (MFN) forward commitment, stating that the rep resentative 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 Par ty 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.  
60. Will China extend this  preferential access on wood and paper products to all WTO Members on 
an MFN basis? If so, when?  
Reply: China has already taken note of this issue. As the scope of wood and paper 
products is not specified in relevant commitments, China will study it furthe r. 
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports; 
Other Charges Affecting Imports:  paragraph 3.20, page 53  
Imported agricultural products are charged a Value Added Tax (VAT), calculated on the basis of 
the cost/insu rance/freight price of the good plus the import duty. On the other hand, domestically 
made agricultural products sold directly by the producer are not charged the VAT. The situation 
remains unchanged from China's  last TPR in 2014.  
61. Would China please ex plain how this measure is consistent with China's  national treatment 
commitments under Article III of GATT 1994?   
Reply: The existing policy in China is exemption of value -added tax for self -produced 
agricultural products sold by agricultural producers and  value -added tax levy as per the 
tax rate as prescribed after entering into the intermediate links, which won't  exert any 
adverse impact on import agricultural products. The main reasons for Chinese 
governments exemption of value -added tax for agricultural  products produced and sold 
by farmers lie in the agricultural production with the family as the unit in China, small in 
scale and distributed production, and that most farmers only send small quantity of 
agricultural products after their own use to the ma rket for sale, with relatively small 
quantity and amount, tax source difficult to control and limited tax amount, while rather 
high cost of taxation.  
62. Could China clarify whether all domestically -produced agricultural products sold directly by the 
produ cer are exempted from VAT or if only those produced by small -scale farmers receive that 
benefit?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The main reasons for Chinese governments exemption of value -added tax for 
agricultural products produced and sold by farmers lie in the agricultural pro duction 
with the family as the unit in China, small in scale and scattered production, and that 
most farmers only send small quantity of agricultural products after their own use to the 
market for sale, with relatively small quantity and amount, tax source  difficult to control 
and limited tax amount, while rather high cost of taxation.   
63. If VAT exemption extends only to agricultural products procured by small -scale farmers, could 
China share its definition of small scale farmers and provide more informat ion as to the percentage 
of agricultural products produced and sold domestically that are exempt from VAT payments?  
Reply: We do not have the relevant data of the percentage of agricultural products 
produced and sold in China and exempted from VAT.  
Part I II. Trade Policies and Practices by Measure: Measures Directly Affecting Imports; 
Other charges affecting imports: paragraph  3.21, page  53 
It is noted that China imposes consumption (excise) tax on a number of imported and 
domestically -produced goods that are harmful to human health, social order and the environment; 
luxury goods; high -energy consumption and high -end products; and non -renewable and non -
replaceable petroleum products.  
64. Could China indicate which of the above rationales applies to the curr ent imposition of a 
5% consumption tax on solid wood flooring?  
Reply: Solid wood flooring refers to the block or strip shaped decorative materials of 
floors with wood as raw materials and processed by various working procedures. The 
raw materials used are mainly from wood, demanding consumption of immense amounts 
of forest resources, leading to deforestation and damaged ecological environment. In 
view of the forest resources shortage, low quantity per capita and the ecological 
environment in urgent need of improvement in China, we have included solid wood 
flooring in to the scope of consumption tax so as to build a favorable inhabitant 
environment for residents, protect the forest resources and increase the forest 
coverage. Meanwhile, the same consumption ta x policy should be adopted for the similar 
products imported from other countries to maintain the fair market environment and tax 
policy.   
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports; 
Import Prohibitions, restrict ions, and licensing:  paragraph 3.28, page 56  
China maintains a Catalogue of Commodities Prohibited under Processing Trade. Inputs listed 
therein may not be imported by Chinese companies for further processing into finished products. 
Canada notes that the C atalogue has been expanding over the years and now covers the 
Harmonized System of commodity codes (HS 1 to 97). Prohibited input materials include 
coniferous wood pulp, coniferous lumber, and chemicals.  
65. Given the importance of industrial processing fo r the Chinese economy, would China please 
elaborate on the reasoning for prohibitions on imported inputs across this many codes?  
Reply: The government adjust the sectors and products under processing trade 
dynamically for the purpose of environment protect ion, etc. Prohibition input materials 
include coniferous wood pulp, coniferous lumber are mainly taking the environment 
protection into consideration.  
China imposes prohibitions on certain imported inputs to protect national security, 
public morality; prot ect human, animal and plant health and protect the environment. 
Details for the catalogue of Prohibitions on Goods subject to Processing Trade could be 
found in MOFCOM, GAC Announcement 90 of 2014.  WT/TPR/M/3 42/Add.1  
 
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  Part III. Trade Policies and Practices by Measure: Measur es Directly Affecting Imports; 
Import Prohibitions, restrictions, and licensing:  paragraph 3.29, page 56  
The list of imports subject to restriction or prohibition can be adjusted as necessary, and imports 
of goods that are not included in a Catalogue can b e restricted or prohibited on atemporary basis 
by the relevant authorities. China's legislation also allows the authorities to, inter alia , restrict 
imports to allow the establishment of a particular domestic industry or to accelerate its 
development.  
66. Would China please explain how its legislation to restrict imports to allow for the establishment 
or development of domestic industries is consistent with China's  obligations under Article XI of 
GATT 1994?  
Reply: The purpose of China's  import prohibition f or some products is to maintain 
national security and public morality; protect human, animal and plant health and 
protect the environment, which constitutes the embodiment of the exception in 
Article  20 of GATT, in conformity to the WTO rules.   
Part III.  Trade Policies and Practices by Measure:  Measures Directly Affecting Imports ; 
Anti-dumping, countervailing and safeguard measures; Anti -dumping measures: 
paragraph 3.34, page  57 
It is noted that information that is considered non -confidential regarding an a nti-dumping 
investigation is available to the public. If MOFCOM decides to treat the information provided as 
confidential, interested parties are requested to provide non -confidential summaries.  
67. Could China please clarify whether other parties (e.g. in dependent counsel for opposing 
parties) are granted access to business confidential information provided that the appropriate 
undertakings have been completed?  
Reply: There are no relevant regulations in China allowing the trade remedy 
independent counsel for opposing parties to obtain the authority to access to the 
commercial confidential information.   
Part III.  Trade Policies and Practices by Measure:  Measures Directly Affecting Imports;  
Anti-dumping, countervailing and safeguard measures; Anti -dumping me asures: 
paragraph 3.39, page  58 
It is noted that the State Council Tariff Commission (SCTC) makes the final decision as to whether 
to impose definitive anti -dumping duties based on MOFCOMs recommendations.  
68. Could China please explain what factors may b e considered by the SCTC when deciding 
whether to impose anti -dumping duties following a recommendation from MOFCOM?  
Reply: SCTC will consider such factors as public interests in combination with the 
suggestions from Ministry of Commerce.  
69. How often ha s the SCTC made a decision that was not in accordance with MOFCOMs 
recommendation?  
Reply: Not often.  
70. If the  SCTC makes a decision not in accordance with MOFCOMs recommendation, are the 
reasons for such a decision made public? Are SCTCs decisions subjec t to domestic appeal or 
judicial review?  
Reply: SCTC will consider  the factors such as public interest in its decision making.  WT/TPR/M/3 42/Add.1  
 
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  Part III.  Trade Policies and Practices by Measure:  Measures Directly Affecting Imports;  
Anti-dumping, countervailing and safegua rd measures; Anti -dumping measures: 
paragraph 3.42, page s 58-59 
Chinese legislation allows importers to apply for a refund within three months of payment of the 
duty if evidence is provided demonstrating that the anti -dumping duty paid was higher than the 
margin of dumping. Following such application, MOFCOM will calculate an updated margin of 
dumping for the product and refund the difference to an importer if the updated margin of 
dumping is lower than the initial duty determination.  
71. Could China pleas e clarify whether the updated margin of dumping will be applied on future 
importation of subject goods or is the updated margin of dumping applicable only to the refund 
application?  
Reply: Article 46 of Anti-Dumping Regulations  stipulates that: where an im port operator 
of dumped imports has evidence to prove that the amount of paid anti -dumping duty 
exceeds the dumping margin, he may apply to Ministry of Commerce for refund; after 
Ministry of Commerce has examined and verified and proposed the refund, the S CTC 
may, upon the proposition of Ministry of Commerce, make the decision on the refund 
and the customs shall execute the refund. Article 19 of Provisional Rules for Refund of 
Anti-Dumping Duty  stipulates that: the review result of refund application shall not 
affect the validity of the original anti -dumping measures.   
72. If the updated margin of dumping is found to be higher than anti -dumping duty paid, will 
MOFCOM recover the difference from the applicant?  
Reply: Article 14 of Provisional Rules for Refund  of Anti -Dumping Duty  stipulates that: 
Ministry of Commerce shall reject the refund application in case the margin of dumping 
is not reduced as compared with the original ruling result upon review by Ministry of 
Commerce.   
Part III.  Trade Policies and Prac tices by Measure:  Measures Directly Affecting Imports;  
Anti-dumping, countervailing and safeguard measures; Countervailing measures; 
paragraph 3.50, page  60 
It is noted that there are no published rules for the use of sampling to conduct interim or judicia l 
reviews and to regulate the use of a price undertaking to settle countervailing duty investigations.  
73. Could China please clarify whether recourse to interim or judicial reviews are available for 
countervailing duty investigations? If so, what are the  legislative bases for such recourse?  
Reply: Article 48 of PRC anti -subsidy regulations stipulates the review of anti -subsidy 
duty and Article 52 stipulates the judicial review.   
Part III.  Trade Policies and Practices by Measure: Measures Directly Affectin g Imports;  
Standards and other technical requirements; Standards and technical regulations: 
paragraph 3.60, page  62 
It is noted that China maintains four types of standards, national, industry/sectoral, local and 
enterprise standards. With respect to natio nal versus local standards, national standards replace 
local standards unless the local standard is stricter than the national standard.  
74. Could China provide examples of how this is implemented in practice?  
Reply: For instance, the Environmental Protect ion Law of the People's Republic of China  
provides that as to the items that have been regulated under the national standard for 
pollutant  discharge, it is allowable to make stricter local standard. However, t he 
standard for pollutant  discharge here doesn' t refer to the standard described in the 
Agreement on Technical Barriers to Trade .  
75. Can China provide a listing of local standards that supersede national standards?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Currently, no such listing is available.  
76. What resources  are available to h elp exporters and importers familiarize themselves with local 
product standards?  
Reply: The product standards are available on the public service platform of enterprise 
standard information.  
Part III.  Trade Policies and Practices by Measure: Measures Dire ctly Affecting Imports;  
Standards and other technical requirements; Standards and technical regulations: 
paragraph 3.61, page  63 
77. Canada understands that the Standards Administration of China (SAC) is responsible for the 
standards system in China.  
78. Does SAC provide online resources for importers and exporters to familiarize themselves with 
China's  voluntary and mandatory standards?   
Reply: At present, SAC provides free online full -text browsing service for the public in 
terms of national mandatory standard s. The standard information center also provides 
online browsing service in terms of national recommend atory standard s, but the service 
is not free.  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and  other technical requirements; Standards and technical regulations: 
paragraph 3.62, page  63 
While Canada notes that the SAC is responsible for the administration of China's  standards system 
generally, it appears that other agencies may also be responsible for maintaining voluntary and 
mandatory standards, such as the Ministry of Industry and Information Technology (MIIT).  
79. Can China explain the relationship between SAC and the MIIT with respect to China's  
standards system?  
Reply: China adopts the standa rd administration mode of "unified administration and 
divided responsibility". SAC is authorized by the State Council to perform administrative 
function and carry out unified administration on national standardization including 
initiation, approval and iss uance of national standards. MIIT is responsible for initiation, 
approval and issuance of industrial standards for industry  sector . SAC is responsible for 
"unified administration" while MIIT assumes "divided responsibility".  
80. Are agencies such as MIIT o r local bodies responsible for publishing the voluntary or 
mandatory standards in their area of responsibility, or is their publication still the responsibility of 
SAC  
Reply: National standards , whether  voluntary or mandatory, are subject to  unified 
initiation, approval, numbering and issuance by SAC; industrial standards are prepared 
by relevant competent administrative departments of the State Council; local standards 
are prepared by administrative departments in charge of standardization of provinces, 
autonomous regions and municipalities  directly under the central government . For 
example, national standards for the sector of industry and information are approved and 
issued by SAC while industrial standards for the sector are approved and issued by MIIT.   
81. Can national, industry/ sectoral, local or MIIT voluntary and mandatory standards be accessed 
by the public in a single window?  
Reply: Since January  1, 2017, SAC will provide a free professional navigation website of 
standards for the public. The use rs can get easy access to China's national standards, 
industrial standards, local standards and the information about various group standards, 
including mandatory and voluntary standards on this website or by clicking on  its links.  WT/TPR/M/3 42/Add.1  
 
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  Part III.  Trade Policie s and Practices by Measure: Measures Directly Affecting Imports;  
Standards and other technical requirements; Standards and technical regulations: 
paragraph 3.64, pages  63-64 
China enacted new charging standard/fee for registering pharmaceuticals and medica l devices with 
the China Food and Drug Administration (No. 53, 2015) and Canada is concerned with China's  
approach of combining registration fees with on -site inspection fees for foreign manufacturers.  
82. Could China explain how much of the new charging s tandard/fee is for the on -site inspection 
fees and how much is for the registration fees so that it is clear what manufacturers are being 
charged and for which services?  
Reply: According to  the new charging standard, the registration fees for imported dru gs 
and medical devices are higher than those of indigenous drugs and medical devices ; this 
is because of the difference in travelling expense, accommodation expense, board 
expense and other expenses for the purpose of inspection, which is also explained in  
Announcement on Publishing Registration Charging Standard of Drugs and Medical 
Devices  (CFDA Announcement [2015] No.  53).  
83. Can China also provide the registration fees to be levied by China's  provinces on domestic 
manufacturers?  
Reply: China adopts hi erarchic administration system on the supervision of foods and 
drugs. Local food and drug supervision departments are in the charge of the registration 
authority of some drugs and medical devices, the registration charging standards  in this 
case are jointl y determined by provincial food and drug supervision departments, 
financial departments and commodity price departments. So far, total eight provinces 
(municipalities and autonomous regions), including Beijing, Shanghai, Shandong, Fujian, 
Jiangxi, Hainan, Inner Mongolia and Jilin, have formally formulated  their local 
registration charging standards.  
In 2014, China issued the revised Regulations on the Supervision and Administration of Medical 
Devices  - Order No. 650 of the State Council.  
84. Does China int end to make changes to this regulation to allow in vitro diagnostic products that 
have received prior regulatory approval without requesting a duplicative clinical evaluation in 
China?  
Reply: According to the Regulations on the Supervision and Administrati on of Medical 
Devices  (The State Council  Decree  No. 650 ) and the Administrative Measures for the 
Registration of In Vitro Diagnostic Reagents  (CFDA Decree No.  5), the period of validity 
of the registration certificate of in vitro diagnostic reagent is 5 ( five) years; the 
application for extension  of registration, if necessary, should be submitted to the 
original registration competent department 6 (six) months before the expiring date of 
the existing registration certificate. As to the in vitro diagnostic reagents that obtained 
registration approval before the implementation of abovementioned regulations, this 
provision  shall also apply for the extension . According to the Announcement on  
Materials Requirement of Registration Application and Form of Approval  Certificate of In 
Vitro Diagnostic Reagents  (CFDA Announcement  [2014] No.  44), no clinical assessment 
information is required  in the application for extension of registration.  
85. What is the rationale for China's  requirements that imported medical devic es obtain market 
approval from the country where the applicants business is registered or the product is produced?  
Reply: The main reason is that according to Article 11 of the Regulations on Supervision 
and Administration of Medical Devices  (the State Cou ncil Decree No.  650), overseas 
manufacturer that exports Class II or III medical device s into China should authorize its 
representative body established in China or designate the legal person of an enterprise 
in China to submit to the food and drug adminis tration and supervision departments 
under the State Council the registration application materials and the supporting 
documents  issued by the competent departments of the applicant's country (region)  WT/TPR/M/3 42/Add.1  
 
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  proving that the marketing of medical devices has been a pproved . This provision can 
also be seen in the  Regulations on Supervision and Administration of Medical Devices  
(the State Council Decree No.  276)  implemented in 2000 .  
86. The Electromagnetic Compatibility (EMC) standard that China uses is identical to t he one 
issued by the International Electro -technical Commission (IEC), of which China is a member. 
However, China has previously not accepted test reports issued by internationally accredited 
laboratories that abide by the IEC standard. Will China accept t he results of safety and EMC testing 
of medical devices conducted at laboratories outside of China?  
Reply: Article 57 of the Regulations on Supervision and Administration of Medical 
Devices  (the State Council Decree No.  650) stipulates that only the inspec tion 
institutions jointly identified by certification and accreditation administration 
departments of the State Council and food and drug administration departments of the 
State Council are qualified to carry out inspection on medical devices. Therefore, t he 
registration inspection report attached to the application materials for medical devices 
registration should be issued by the qualified medical devices inspection institutions. In 
other words, if the inspection institutions are jointly identified by cer tification and 
accreditation administration departments of the State Council and food and drug 
administration departments of the State Council, the China Food and Drug 
Administration will accept the registration inspection report issued by such inspection 
institutions. The IECEE -CB is a voluntary multilateral mutual -recognition system and 
China has not joined its EMC mutual -recognition program yet.  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and other t echnical requirements; Standards and technical regulations: 
paragraph s 3.65-3.67, page  64 
Canada notes that China's  standards development processes vary depending on whether they are 
voluntary or mandatory, industrial/sectoral, national or local.  
87. Who can participate in the consultation processes provided for under the Measures on 
Administration of National Standards?  
Reply: According to the Measures on Administration of National Standards , during the 
standards development process, the technical committ ee will issue the exposure draft to 
the major units and colleges & universities related to production, distribution, 
utilization, scientific research, inspection and other links to seek for their comments, 
lasting for two months.  
88. If interested foreign  parties can provide comments, can they participate even if the draft 
measure has not been notified to the WTO Technical Barriers to Trade Committee?  
Reply: Yes, they can. Any individual and organization can provide comments on the draft 
that is issued for  comments .  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and other technical requirements; Standards and technical regulations: 
paragraph 3.70, page  65 
Canada appreciates  China's  efforts to streamline it s domestic standards framework, and notes that 
China has annulled 4,354 local standards as of January 2015.  
89. Does China have a work plan for future streamlining of standards?  
Reply: After the State Council issued the Plan for Furthering the Standardizat ion Reform , 
the General Office of the State Council published the Action Plan for the Implementation 
of Plan for Furthering the Standardization Reform (2015 -2016). The Action Plan 
proposes 14 detailed promoting measures. Besides, SAC issued special documen ts for 
integration and simplification of mandatory standards, concentrated review of 
recommendatory standards and development of group standards.  WT/TPR/M/3 42/Add.1  
 
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  90. If yes, is the work plan available to the public?  
Reply: These documents are available on the official web sites of the State Council and 
SAC (http://www.sac.gov.cn ).  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and other technical requirements; Product certification: paragraph 3.71, 
page  65 
Canada notes that the China National Certification and Accreditation Administration (CNCA) is 
responsible for China's  voluntary and compulsory conformity assessment regimes. Canada also 
notes that there are many regulations governing the accreditation and administration of 
certification bodies.  
91. Canada understands that under the Import and Export Commodity Inspection Law, the 
authority to perform testing has been delegated to local import and export commodity inspection 
authorities.  Can China confirm that the Export Commodity Inspection Law will also allow for 
recognition of testing done by a third party (non -local import and export commodity inspection 
authorities)?  
Reply: In some sectors, China recognizes the third -party test repor t. For example, 
Shanghai Free Trade Zone has consider ed recognizing  the third -party test reports on 
motor vehicle.  
92. If so,  under what circumstance does China recognize a third party test report for commodities 
covered under the Import and Export commod ity Inspection Law?  
Reply: If the third party can participate in the implementation of China Compulsory 
Certification (CCC) system through the multilateral and bilateral international mutual -
recognition cooperation, its test data and results can be accepte d or recognized 
according to corresponding cooperation agreements.  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and other technical requirements; Product certification: paragraph 3.75, 
page  66 
Canada is  interested in a number of processes with respect to China Compulsory Certificate (CCC) 
certification and accreditation procedures  CCCs. 
93. The Secretariat Report notes that there are currently 22 mandatory certification bodies for the 
CCC. Can China prov ide a list of these bodies with contact information or links to this information?   
Reply: The information about CCC certification bodies is available on the official website 
of the Certification and Accreditation Administration (CNCA), http://www.cnca.gov.cn/ 
cnca/rdht/qzxcprz/jcjggljg/4731.html . 
94. How many -non-Chinese certification bodies are currently accredited to certify to 
CC requirements, and what is the process for non -Chinese certification bodies to become 
accredited for China CCC certification?   
Reply: According to current regulations, only domestic bodies can be designated as 
CCC certification bodies.  
Part III. Trade Policies and Practises by Measure: Measures Directly Affecting Imports;  
Sanitary and Phytosanitary Requirements: paragraph 3.80, page 67   
Canada notes the significant work China has undertaken in modernizing its food safety system 
under the Food Safety Law, the Grains Law, the Law on Farm Product Quality and  Safety, the 
Administrative Rules for Pesticides, and the Administrative Rules for Animal and Poultry Slaughter. 
While we note that these measures have been notified to the WTO, Canada understands that WT/TPR/M/3 42/Add.1  
 
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  additional rules, regulations and standards are being developed to support the implementation of 
these laws/rules.  
95. Can China provide a detailed overview of how these laws will be implemented, any rules, 
regulations and standards that will be developed in support of these laws, and an indication of 
when th ey will be notified to the WTO?  
Reply: All of the 3,650 indicators covered in the Maximum Residue Limits for Pesticides  
in Food  (GB2763 -2014), one of China's national standard s for food safety, have been 
notified to WTO members according to the Agreement o n the Application of Sanitary and 
Phytosanitary Measures (SPS) . Since 2010, we have issued eight batches of official 
review notifications about the standards for pesticide residue limits: 
G/SPS/N/CHN/313, G/SPS/N/CHN/376, G/SPS/N/CHN/511, G/SPS/N/CHN/522, 
G/SPS/N/CHN/600, G/SPS/N/CHN/635, G/SPS/N/CHN/701 and G/SPS/N/CHN/875. 
During the development and implementation of the standards for maximum pesticide 
residue limits in foods, China strictly observes  SPS agreement  to ensure the scientificity, 
transparency  and timeliness. The main content of the Measures for the Administration 
on Health care Foods Registration and Record -Filing and the Administrative Measures for 
Raw Materials Catalogue and Healthcare Function Catalogue of Health Food  have  also 
been  notified  to the WTO.  
96. Can China confirm that Members will be provided  the recommended timeframe of at least six 
months to adjust to the new rules before they come into force, to ensure trade is not disrupted 
and exporters have time to become acquainted with fin al measures?  
Reply:  The main content of the Measures for the Administration on Healthcare Foods 
Registration  and Record -Filing and the Administrative Measures for Raw Materials 
Catalogue and Healthcare Function Catalogue of Health Food  have been notified t o the 
WTO. All drafts of national food safety standards (except inspection method standard) 
and relevant food regulations being drafted have been also notified to the WTO 
members pursuant to the stipulated procedure.  
Part III. Trade Policies and Practises  by Measure: Measures Directly Affecting Imports;  
Sanitary and Phytosanitary Requirements: paragraph 3.91, page 71   
Canada notes that between 2013 -2016, China notified 417 SPS measures to the WTO and 130 of 
these measures will be implemented this year. Can ada submitted written comments on Chinese 
measures, notably Measures of Inspection and Quarantine for the Entry and Exit of Grain 
(G/SPS/N/CHN/882) on October 2, 2015, and looks forward to receiving a written response before 
these measures come into force.  
97. Can China provide information on the next steps with regards to these measures, including 
when Canada will receive a response to its comments?  
Reply: China abides by the SPS agreement and follows SPS provisions to formulate and 
amend sanitary and phyt osanitary measures . 
Canada notes China's  proposed amendments to the implementation regulations on the safety 
assessment of agricultural GMOs.  
98. Can China provide an update on its proposed amendments to the implementation regulations 
on the safety assessm ent of agricultural GMOs (G/SPS/N/CHN/881), including next steps and 
proposed timelines?   
Reply:  As of August 1, 2015, the end of review period, China has received the comments 
from of Canadian government and enterprises  on amendments for the Administrativ e 
Measures for Safety Assessment of Agricultural GMOs . The Ministry of Agriculture 
attaches great importance to these comments. At present, the Measures are still under 
amendment and perfection.  WT/TPR/M/3 42/Add.1  
 
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  99. Could China explain the policy objectives of this regulat ory review and whether China intends 
to introduce non -science -based considerations, such as social and economic factors?  
Reply: China amends and enacts new measures for the supervision and administration of 
inspection and quarantine of grain fully for purp ose of scientific safety protection and 
risk prevention, controlling the risk to acceptable level, instead of taking any zero -risk 
measures, also, pursuant to Chinese relevant laws and regulations and international 
rules and standards, for the purpose of m inimizing the influence on trade as possible 
within SPS principle.  
100. Will China use this opportunity to improve the predictability, transparency and timeliness of 
its process, and to better align it with principles outlined in the WTO SPS Agreement?   
Reply: China abides by SPS agreement and perform s the obligations all the time. As 
always, China will follow the SPS agreement  to formulate and amend sanitary and 
phytosanitary measures in future . 
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Exports: 
Export procedures and requirements:  paragraph 3.93, page 72  
It is noted that exporters must comply with the requirements stipulated in the Catalogue of Import 
and Export Commodities Subject to Compulsory Inspection, which is ame nded every year to add 
or subtract commodities as required for the protection of human and animal health, the 
environment, and national security, and to promote steady export growth and adjust the export 
structure.  
101. Are those enterprises that deal with  the export of overcapacity commodities (steel, 
aluminium) considered a high -risk enterprise given the need to ensure the appropriate application 
of the export tariffs?  
Reply: Please clarify the definition of high-risk. Is it based on credit risk of enterp rises? 
Imposition of the export tariffs is irrelevant to credit of export enterprises.  
Part III. Trade Policies and Practices by Measures ; Measures Directly Affecting Exports; 
Export prohibitions, restrictions, and licensing: paragraph 3.105, page 75 
The Secretariat report notes that wheat is one of several products subject to both export quotas 
and export licensing. China has notified an export quota and licensing administration for wheat 
under its notification of quantitative restrictions to the Committe e on Market Access 
(G/MA/QR/N/CHN/3), citing food security reasons under Article XI, XX of GATT 1994.  
102. Given that world wheat import prices are low, China's exports to the world are minimal, and 
the fill rate for its import quota is low, could China pl ease provide more information on the 
rationale for an export quota on wheat?  
Reply: Export quota and licenses for agricultural products are important instruments of 
China's food security policy and it is necessary for China to reserve the rights to regulat e 
and control the export through these measures. But it doesn't mean that these 
measures are strictly implemented every year. In fact, Chinese government doesn't 
apply strict restrictions on wheat export when food security is assured. In recent years, 
the wheat export volume is very low just because the low price and other factors have 
great impact on the export intent of the enterprises. It should be noted that as 
agricultural products in the international market often face drastic price fluctuations, 
the present low price of agricultural products may only be a periodic phenomenon. The 
possibility of upturn or even soaring of price cannot be ruled out, and if this so happens, 
China may face export pressure. In such case, China needs to apply export quota an d 
licenses to ensure food security.  WT/TPR/M/3 42/Add.1  
 
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  Part III. Trade Policies and Practices by Measure ; Measures Affecting Exports; Export 
support and promotion: paragraph s 3.107 -3.109, page 76  
The Secretariat report notes that VAT rebates given to exporters are usually l ower than the VAT 
paid. Moreover, given that domestically produced agriculture products are exempt from VAT, 
imported agriculture products are subject to VAT, and the level of VAT rebate on exported 
agriculture products varies, Canada is concerned that VAT  is influencing trade flows.   
103. Could China confirm whether in any instances, exporters have received rebates or payments 
above what they had paid in VAT?  
Reply: China's VAT rebate is set not higher than the input VAT on  the exported products, 
so VAT re bates given to the exporters are not higher than the input VAT  on their 
exported products.  
104. Is China considering a policy shift to a trade -neutral VAT system for agriculture products?  
Reply: Since 1994, China, based on the principle of " VAT rebat es equ al to VAT Paid ", has 
kept improving  export tax rebate policy to reflect the neutral principle of VAT.  
Part III: Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade: Incentives:  paragraph 3.122, page 803  
It is noted that China' s authorities are preparing a notification of programmes maintained at the 
sub-central level.   
105. Could China give an approximate timeline regarding the notification being prepared on 
sub-central subsidies?  
The Secretariat Report notes that China's  2015 notification to the Committee on Subsidies and 
Countervailing Measures does not include one program, previously notified to the WTO, which 
appears to be in force. In addition, it is noted that there are other support programs and means to 
support different  industries. However, no information was provided in the context of this TPR and 
identification of programs in China remains difficult as there is no information published in English 
and no itemized central budget was provided for the TPR.  
Canada believes that the subsidy notification process is a fundamentally important transparency 
exercise for achieving the aims of the Agreement on Subsidies and Countervailing Measures, and is 
concerned with how China appears to be approaching its transparency obligation s.  
106. Would China indicate what steps it will take to make information on other support programs 
available and duly notified to the WTO?  
107. Could China provide the list of specific programmes or China's  industrial policies that support 
key industrial sectors and explain whether there are plans to increase the transparency of internal 
administrative measures and the central budget?  
108. Would China indicate which industries benefit from these support programmes?  
109. Would China please indicate when it plans to provide its notification covering sub -central 
subsidies to the Committee?  
Reply to questions 105 -109: China has submitted Notification on Subsidies at sub -
central government level for 2001 -2014 to the WTO before this review, which is China's 
first sub-central subsidy notification. Please refer to the relevant notification document 
for more details. China has earnestly implemented the transparency obligation under the 
WTO  agreements. In its Notification on Subsidies at central government level for 2 009-
2014  submitted in October 2015, China has notified support policies in such industries 
as environmental protection, energy conservation, new energy, agriculture, forestry and 
fishery.  For more details, please refer to China's notification documents 
(G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN). China will continue to WT/TPR/M/3 42/Add.1  
 
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  implement its transparency obligation in accordance with the relevant provisions of the 
WTO agreements.  
Part III.  Trade Policies and Practices by Measure:  Measures Affecting Productio n and 
Trade;  Incentives: paragraph 3.126, page  81 
It is noted that sectoral and provincial five -year plans set policy guidelines and establish industrial 
policies but do not outline specific measures to be applied. However, it is not always clear how the 
different plans and catalogues published by the central and sub -central governments interact as 
they may sometimes overlap and appear to conflict.  
110. Does China plan to increase the transparency of catalogues and sectoral and provincial 
five-year plans, to allow a clearer understanding of specific support measures available?  
Reply: Basically, the Outline of national five -year plan and other plans are available to 
the whole society by means of internet and other media. During the development 
process, the p ublic opinions are also be asked, absorbed and coordinated. The contents 
about industrial development in Chinese five -plans mainly represent the expectation on 
future development direction made by Chinese government giving full consideration to 
economic an d social development demand, industrial development progress and 
condition, economic structural adjustment, environmental bearing capacity and other 
factors. The contents neither cover the determination on what industries should be 
given priority to nor in clude the detailed policies and mea sures for the preferential 
industries. The industrial development in the future will be realized based on the 
autonomic behavio ur of the market players while the government only takes charge of 
perfecting the "internation alized and convenient business environment based on the 
rule of law" and ensuring good marketing operation. China doesn't agree with Canadian 
expression that "five -year plans reflect specific support measures". The FYPs do  not 
include any specific supporti ve measure, there is no clue or hint to understand better 
the specific supports through reading such FYPs.  
Part III: Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Competition policy: Legislative and institutional framewo rk: paragraph 3.131, 
page  843 
It is noted that the anti -monopoly law (AML) contains an exception for associated or concerted 
conduct by agricultural producers and rural economic organizations in the production, processing, 
sales, transportation, and storag e of agricultural products.  
111. Could China explain the rationale for each of the components of that exception?  
Reply: Please refer to  the Anti-Monopoly Law of the People's Republic of China  for the 
detail.  
It is noted that China has a plan to open its ec onomy to the private sector and that the AML allows 
the exercise of  exclusive activities by SOEs or enterprises that have been granted exclusive 
production and sales rights legally.  
112. In light of China's  plan and the current favourable AML treatment of SOEs, is there a reform 
of the AML planned to allow SOE -dominated sectors to be more open to foreign competition? If so, 
which sectors may be opened? ] 
Reply: The Anti-Monopoly Law of the People's Republic of China  is applicable to all 
operators. According to Article 7 of the Law, as to the SOE -dominated industries that are 
critical to national economic lifelines and national security and the industries that are 
subject to franchised monopoly, the legal business activities of the operators in these 
industrie s should be protected by the country pursuant to the laws, but at the same 
time, their business activities should be subject to the Anti-Monopoly Law of the 
People's Republic of China. It is explicitly prohibited to make use of the dominating 
position or e xclusive position to infringe upon the consumers' interests. During actual 
enforcement  the Law , China's AML enforcement authority adheres to the principle of WT/TPR/M/3 42/Add.1  
 
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  "fairness, justice and objectiveness" and equally treats all market players without 
discrimination . 
The Several Opinions of the State Council on the Building of a New System of Open Economy  
issued in September 2015 make a comprehensive description on the roadmap of opening -up 
expansion and foreign investment policy. At the same time, China is also acti vely promoting mixed 
ownership reform  among SOEs , encouraging various capitals to investment in SOE -dominated 
industries.  
Part III.  Trade Policies and Practices by Measure:  Measures Affecting Production and 
Trade;  Competition policy; Mergers and acquisiti ons: paragraph 3.157, page  90 
From the date of implementation of the AML in August 2008 up to the end of 2015, MOFCOM 
received 1,480 applications for the approval of the concentration of undertakings, accepted 
1,380  and concluded 1,302 cases.   
113. Could C hina please provide a yearly account on the number of applications and approvals 
that were made in respect of state -owned enterprises?  
Reply: Currently, no  relevant  statistical data is available.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; National security review of concentrations:  paragraph 3.159, page 90  
The Secretariat report describes China's  national security review procedures for foreign 
investments, but does not mention China's  National Security Law  (2015), which includes a very 
broad definition of national security, within which is included the concepts of economic security, 
cultural security, societal security, and public morality.  
114. Can China clarify what is meant by these terms to ensure greater certainty for foreign 
investors?  
Reply: According to the National Security Law of the People's Republic of China , national 
security refers to the status that state regime, sovereignty, unification and territorial 
integrity, people's well -being, sustainable  economic and social development and other 
national significant interest s, relatively speaking, face neither  danger nor foreign or 
domestic threat, and the capability to maintain constant secur e status. As an important 
principle, China always pays high att ention to the relation between opening -up and 
national security during security review on foreign investment , actively attracting 
foreign investments  but not  generaliz ing security review.  
Part III.  Trade Policies and Practices by Measure: Measures Affecti ng Production and 
Trade;  State trading and state -owned enterprises; State -owned enterprises: 
paragraph  3.175, page  95 
It is noted that the Government is in the process of reforming SOEs to further develop a mixed 
ownership economy.  
115. Can China provide details on criteria used to select sectors and individual SOEs for reform?  
116. What criteria and/or policies are used to reform SOEs? What systems are in place to monitor 
reformed SOEs?  
117. What is the current state of the SOE reforms? What are the antic ipated next steps in the 
process?  
118. Are there plans to privatize SOEs in specific sectors? If so, will foreign investors be eligible to 
participate?  
119. Does China have an anticipated end date for the SOE reform process?  WT/TPR/M/3 42/Add.1  
 
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  Reply to Questions 1 15-119: The  pilot projects are designed for the following reform 
explorations, depending on their conditions. (1) actively introduce qualified non -state -
owned investment entities; (2) actively explore holistic listing of group company; 
(3) establish and perfect corpo rate governance structure featuring coordinated 
operation and efficient counterbalance; (4) explore and perfect market -oriented 
incentive and restraint mechanism; (5) explore and perfect professional manager 
system and market -oriented labour  employment sys tem; (6) explore employee 
shareholding system for mixed -ownership enterprises; (7) explore and establish 
efficient supervision mechanism of mixed -ownership enterprises; etc.   
China encourages non -public capital, collectively -owned capital and foreign capit al to 
participate in mixed ownership reform  among SOEs . China allows SOE parent companies 
to explore mixed ownership reform: as to the specific sectors expressly regulated by the 
country, the state -owned capital should keep the holding position; as to othe r sectors, it 
is encouraged to gradually adjust state -owned equity ratio and actively introduce 
various investors for the purpose of forming an efficient and flexible operating 
mechanism with multiple equity structure, by means of holistic listing, M&A and  
reorganization, issuance of convertible bonds, etc.  
Currently, the pilot mixed ownership reform has been planned for some qualified central 
enterprises engaging in electricity, oil, gas, railway, civil aviation, telecom and military 
industry ; the first b atch of pilot enterprises  have been listed  and the pilot 
implementation plans are being formulated. At the same time, local authorities are also 
practicing local SOE pilot reform based on the actual conditions. In the second half of 
this year, China will i mplement the first batch of pilot reform and will launch the second 
batch at the right time, if possible. Mixed ownership reform has no specified schedule 
and relevant measures will be advanced once the condition permits.  
Part III.  Trade Policies and Prac tices by Measure: Measures Affecting Production and 
Trade;  State trading and state -owned enterprises; State -owned enterprises: 
paragraph  3.176, page  96 
The Secretariat report provides a breakdown of the various forms of state -owned or controlled 
enterprise s.  
120. In enterprises where there is no government ownership, can China appoint management 
and/or Board Members?  
Reply: According to the Company Law of the People's Republic of China  and other laws 
and regulations, members of the board of directors and s enior executives of the 
enterprises should be selected and recruited by the stockholders under the corporate 
governance structure.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  State trading and state -owned en terprises; State -owned enterprises: 
paragraphs  3.177 & 3.181, page  96 
The Secretariat report notes that SOEs retain a significant share of the market in strategic 
subsectors (e.g., telecommunication, air transport services, etc.) and play an important role  in 
certain sectors (e.g. technology, natural resources, energy and transport).   
121. Are there any planned reforms for SOEs in strategic subsectors where SOE dominance is 
currently maintained? Are there plans to open up these sectors to private enterprise s? 
Reply: China encourages non -public capital, collectively -owned capital and foreign 
capital to participate in SOE mixed ownership reform. China allows SOE parent 
companies to explore mixed ownership reform: as to the specific sectors expressly 
regulated by the country, the state -owned capital should keep the holding position; as to 
other sectors, it is encouraged to gradually adjust state -owned equity ratio and actively 
introduce various investors for the purpose of forming an efficient and flexible opera ting WT/TPR/M/3 42/Add.1  
 
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  mechanism with multiple equity structure, by means of holistic listing, M&A and 
reorganization, issuance of convertible bonds, etc.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  State trading and state -owned enterprises; State -owned enterprises: 
paragraph  3.182, page  98 
It is noted that guidelines published in 2015 and the Recommendations for the Development of the 
13th Five -year Plan refer to the need to reform SOEs so as to make them more profit -oriented  and 
call for a shift to mixed ownership, while keeping government control. At the same time, the plan 
encourages the private sector to participate in sectors dominated by SOEs and to invest in SOEs.  
122. Could China please indicate whether the government intends to maintain majority ownership 
in non -strategic SOEs? If so, why does China believe it necessary to maintain government control 
in non -strategic industries?  
Reply: Please refer to the Reply  to Q121.  
123. Could China please elaborate on how the gove rnment specifically intends to encourage 
private sector participation in sectors dominated by SOEs and to invest in SOEs?  
Reply: Please refer to the Reply  to Q121.  
Part III.  Trade Policies and Practices by Measure : Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.183, page  98  
The report mentions the Centralized Procurement Catalogue.  
124. Can China please describe what the Centralized Procurement Catalogue is, and indicate 
whether the document available at the following link is  the Centralized Procurement Catalogue? 
http://www.ccgp.gov.cn/cgml/zy/201411/t20141107_4708666.htm . If not, is the catalogue 
publicly available online?  
Reply: The Centralized Proc urement Catalogue defines the scope of centralized 
procurement. The centralized procurement catalogue of government procurement 
subject to the budget of the Central Government shall be defined and published by the 
State Council , and that subject to the bud get of the local government s shall be defined 
and published by the government s of province s, autonomous region s and municipalit ies 
or institute s authorized by such governments. The items listed in the Centralized 
Procurement Catalogue shall be procured by the Centralized Procurement Agenc ies. The 
Centralized Procurement Catalogue is available for reference at www.ccgp.gov.cn , which 
is a link to the 2015 -2016 Centralized Procurement Catalogue and Standards for the 
Centr al Budget Unit s.  
125. Which Ministry is responsible for drafting the Centralized Procurement Catalogue and how 
often is it modified?  
Reply: The Centralized Procurement Catalogue of the Central Budget Unit s is drafted by 
the Ministry of Finance and submitt ed to the State Council for approval, revised every 
2 years. The Centralized Procurement Catalogue of the local government s is defined and 
published by the government s of province s, autonomous region s and municipalit ies or 
institute s authorized by such gov ernments. Please visit www.ccgp.gov.cn  for details.  
126. Are stakeholders consulted when the Centralized Procurement Catalogue is modified?  
Reply: The advice from the interested parties, including the Centralized Proc urement 
Agenc ies and Procurement Agent s, will be taken into consideration.  
127. Is the Centralized Procurement Catalogue used for procurement by entities at sub -central 
levels of government?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Please refer to the Reply  to Q125 . 
The report outlines th e 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 government procurement.  
128. Could China please prov ide similar figures on procurement by SOEs?  
Reply: No related statistic data is available.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.187, page  99 
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 the report as possibly conflicting with 
GPA rules:  
 Government Procurement Law (2014), in particular the buy -domestic provision found 
in Article 10;  
 Administrative Measures for Government Procurement of Imported Products (2007) . 
129. When does China plan to modify its domestic government pro curement framework to bring it 
in conformity with the provisions of the Agreement on Government Procurement?  
130. Are some of the measures listed above undergoing revision?  
Reply to Q129  130: China is not a member to the GPA yet and the law -based 
administr ation of government is required. In addition, China's  access to the GPA does 
not necessarily mean the  abandonment of the buy -domestic terms under the 
Government Procurement Law . It depends on the negotiation results as to whether non -
application of this pr ovision to the contracting parties could be co nfirmed.  At present, 
we have fully integrated the link -up with the GPA rules into the government 
procurement reform of China.  
131. Are there other measures in China's  domestic government procurement framework that will 
need to be adjusted before China can accede to the GPA?  
Reply: The related departments/units are making comparative study on Government 
Procurement Laws and GPA rules.  
The report mentions that according to the Government Procurement Law the Gover nment must 
procure domestic goods, construction projects and services . However, there are no criteria 
specified as to what constitutes domestic goods or provisions on local content.  
132. Are there government documents available that define domestic product  for the purpose of 
the Government Procurement Law?  
133. If not, can China clarify what domestic product means in the Government Procurement Law?  
Reply to Q132  133: China has not explicitly defined the scope of domestic products. 
Thus, the related departme nts/units of Chinese Government are developing an 
identification standard and management method regarding the domestic product 
procurement by government.  
134. Do products produced by foreign -invested enterprises in China qualify as domestic products?  WT/TPR/M/3 42/Add.1  
 
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  135. If yes: (i) are there any exceptions for such goods produced by foreign -invested enterprises? 
(ii) do any requirements apply for such goods produced by foreign -invested enterprises to qualify 
as domestic goods?  
Reply to Q134 -135: The related departments/un its of Chinese Government are 
developing an identification standard and management method regarding the domestic 
product procur ement, which will be uniformly applicable to and binding upon the 
products produced by both foreign -invested enterprises and dome stic-invested 
enterprises. That is, such products produced by both foreign -invested enterprises and 
domestic -invested enterprises within the territory of the People's Republic of China will 
be treated equally without discrimination for the purpose of procu rement by Chinese 
Government.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.190, page  100 
The report mentions that Public tendering is the main procurement method; it is req uired for 
procurement of items exceeding the prescribed procurement thresholds. The  thresholds for central 
government procurement for 2014 -2015 were RMB 1.2 million for goods and services, and 
RMB 2 million for construction projects. The thresholds for ite ms that come under local budgets 
are prescribed and published by the respective governments of provinces, autonomous regions or 
municipalities directly under the Central Government or the department authorized by them.  
136. Can China please share the upda ted thresholds for 2016 and advise whether they are 
available online?  
137. Can China please share the thresholds for the provinces, autonomous regions and 
municipalities directly under the Central Government?  
Reply to Q136  137: The thresholds for governmen t procurements subject to the budget 
of the Central Government  shall be defined and published by the State Council , and that 
subject to the budget to the local government s shall be defined and published by the 
government s of province s, autonomous region s and municipalit ies or institute s 
authorized by such governments . The related information is available at the website of 
Chinese Government Procurement  (www.ccgp.gov.cn ) and other media.  
Part III.  Trade Policies and Pra ctices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph  3.191, page  100 
It is noted that: The selective tendering method may be chosen when the goods or services to be 
procured are special and can only be obtained from  a limited number of suppliers or when the cost 
of holding a  public tender represents an excessive proportion of the total value of the procured 
items  
138. Can China explain how goods or services are considered special and can thus be procured 
under the se lective tendering method?   
Reply: In case of fewer suppliers due to any urgent need or professional factor, the 
procurement by invitation to bid may be preferred.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.198, page  101 
The report mentions: The 2015 Implementing Regulations introduced provisions to step up 
governance in procurement. They require the purchaser to make the budget of the relevant 
procurement project public.  
139. Can China please indicate where information on the budget made public by the purchaser can 
be found?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The related information on the budget , Tendering Documents and other 
procurement documents are available at the website of Chinese Government 
Procurement ( www.ccgp.gov.cn ) and other media.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.199, page  102 
The report mentions that Procur ing entities must announce government procurement and bidding 
information in media designated by the Ministry of Finance.  
140. Can China please share information on the media used at the central and sub -central levels of 
government, including the URL addr esses where the media can be consulted?  
Reply: The related information on the budget, Tendering Documents and other 
procurement documents are available at the website of Chinese Government 
Procurement ( www.ccgp.gov.cn ) and other media.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement: paragraph 3.200, page  102 
The report mentions that in 2014, the finance authorities at various levels all over China accepted 
1,337 government procurement complaints raised by suppliers . 
141. Have complaints raised by suppliers been rejected?  
142. On what grounds can complaints by suppliers be rejected?  
143. Are there statistics on the number of complaints by supplier that have no t been accepted?  
144. Are the decisions on supplier complaints made publicly available? If so, where can they be 
found?  
Reply to Q141 - 144: As specified in the Measures for Handling the Complaints of the 
Government Procurement Suppliers  (MOF Order No.  20) issued by the Ministry of 
Finance of the P.R.C, the non -conforming complaints by suppliers shall be rejected. 
There is no statistical data in relation to the complaints rejected. The complaint handling 
decision will be published at the website of Chinese Government Procurement 
(www.ccgp.gov.cn ) and other media according to related rules.  
Part III.  Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade;  Government procurement:  paragraph 3.202,  page  102 
The report mentions that 930,000  announcements related to government procurement information 
were published in 2014.  
145. Where are these announcements published?  
146. Does the figure 930,000 include announcements by local levels of government?  
Reply to Q145 -146: The related information is available at the website of Chinese 
Government Procurement ( www.ccgp.gov.cn ) and other media, including the notices 
issued by the Central Government and Local Governments.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; Intellectual property rights; Industrial property; Patents: paragraph s 3.209, 
3.213 and  3.214, pages  104-105 
Canada notes that these paragraphs discuss compulsory licenses; in particular,  paragraph 3.213 
says that compulsory licenses can be granted where a patent owner, without justification, refused 
requests to authorize exploitation of a patent on reasonable conditions.  WT/TPR/M/3 42/Add.1  
 
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  147. Could China clarify how it determines w hether refusal to authorize exploitation of a patent is 
without justification?  
Reply: Whether refusal to authorize exploitation of a patent in an individual case is  with 
justification or not shall be determined according to the unenforced laws, economy and  
technology related arguments of the involved patent.  
148. Could China indicate whether the fact that a patentee is not yet ready to enter the Chinese 
market would, legally speaking, justify a refusal to authorize others to exploit its patents?  
Reply: Whether refusal to authorize exploitation of a patent in an individual case is  with 
justification or not shall be determined according to the unenforced laws, economy and 
technology related arguments of the involved patent.  
149. How does China determine whet her the conditions offered in exchange for the right to work 
the patent are reasonable?  
Reply: Whether the condition  in an individual case is reasonable or not shall be 
determined according to the specific situations regarding the invention or patent for 
utility models.  
150. To what extent is the patentee involved in the decision making process leading to the grant of 
a compulsory license?  
Reply: According the Measures for Compulsory License on Patent , the patentee may 
make a statement and require and part icipate in hearing upon the acceptance by the 
State Intellectual Property Office of the application for a compulsory license, with 
possible defence or cross -examination.  
151. Under the  Chinese compulsory licensing regime, is there an obligation to pay comp ensation? 
If so, how is the appropriate level of compensation determined?  
Reply: According to Article 57 of the Patent Law , an entity or individual that is granted a 
compulsory license for exploitation shall pay to the patentee a reasonable royalty or 
deal with the royalty issue under the relevant international treaties to which the 
People's Republic of China has acceded. If a royalty is to be paid, the amount of the 
royalty shall be decided by both parties upon negotiation. If the parties fail to reach an 
agreement, the issue shall be settled by the patent administrative department of the 
State Council.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; Intellectual Property Rights; Industrial Property; Trademarks:  paragraph 3.223, 
page  107 
Canada notes the statement according to which well -known trademarks are recognized on a case -
by-case basis, and are subject to the principle of passive protection.  
152. Could China outline what is the principle of passive protectio n? 
Reply: According to Clause 14.1 of the  Trademark Law , whether a trademark is a well -
known trademark or not shall be determined upon request of a party as a fact to be 
found in the handling of a trademark case.  
Part III. Trade Policies and Practices by M easure: Measures Affecting Production and 
Trade; Intellectual Property Rights; Industrial Property; Trademarks:  paragraph 3.224, 
page  107 
Canada notes that the TMO has the right to revoke any trademarks that are not used for three 
consecutive years without  any justified reasons.  WT/TPR/M/3 42/Add.1  
 
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  153. Could China indicate whether courts have determined examples of what could be justified 
reasons?  
Reply: It is determined according to the specific conditions of each individual case.  
Part III. Trade Policies and Practices by Me asure: Measures Affecting Production and 
Trade; Intellectual Property Rights: Industrial Property; Copyright and related rights:  
paragraph 3.231, page  109 
Canada notes that Table 3.27 provides figures for both administrative and judicial patent -related 
disputes.  
154. Could China provide a breakdown of these disputes according to whether they relate to, 
respectively, invention patents, design patents and utility model patents?  
Reply: In China, there is currently no statistic data on the breakdown of such pat ent 
related disputes.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; Intellectual Property Rights; Industrial Property; Trademarks:  paragraph 3.226, 
page  108 and  paragraph 3.235, page 109  
Canada notes that Chin a currently has no rules on parallel imports in the fields of trademarks or 
copyright and that parallel imports are not covered in the current copyright legislation.  
155. Could China  explain how parallel imports are dealt with under its regime?  
Reply: The Patent Law of the P.R.C  allows parallel imports of patents. The Trademark 
Law and the Copyright Law provide no rules concerning parallel imports of trademark or 
copyright.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production an d 
Trade; Intellectual Property Rights: Enforcement: Overview:  paragraph 3.244, page 112  
Canada notes that right protection assistance centres have been established to handle a variety of 
patent infringement and counterfeit cases.  
156. Could China provide m ore information about the protection assistance centres, including the 
purpose of the centres, who operates them, what services they provide, who uses their services 
and if these centres have assessed their effect on patent infringement and counterfeiting.  
Reply: The Intellectual Property Right Protection Assistance Center aims to provide the 
foreign and domestic intellectual property rights holders with efficient intellectual 
property right protection assistance. So far, there are 76 such centr es widely sp read in 
China (except for Tibet and Qinghai), all of which are established and operated by the 
local intellectual property offices. The assistance centr es actively accept various reports 
and complaints relating to any violation to the intellectual property  rights through the 
hotline 12330, network and petition letters, which are then transferred to the law -
enforcing departments. Furthermore, the assistance centr es are also responsible for 
case tracking and feedback. The intellectual property right protectio n conditions are 
further optimized due to the establishment and operation of such centr es. 
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; Intellectual Property Rights: Enforcement; Administrative Enforcement:  
paragraph 3.247, page  112 
Canada notes that China conducted campaigns to strengthen administrative law enforcement, 
including the Network Sword Campaign, through which cases of online copyright infringements and 
piracy were investigated by the local copyrigh t authorities.  WT/TPR/M/3 42/Add.1  
 
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  157. Could China provide more information about the Network Sword Campaign, including 
information about the number and types of online copyright infringement and piracy cases that 
were investigated and the results of such investigations . 
Reply: Since 2005, jointly with the Ministry of Public Security, the Ministry of Industry 
and the Information and National Internet Information Office, the NCAC has stuck to the 
Network Sword Campaign. In June 2015, the NCAC and the aforesaid ministries and 
office initiated the 11 th Network Sword specially for fighting against the online 
copyright infringements and piracies, with several industries covered, including the 
network music, network cloud storage, smart mobile terminal third -party application 
(APP) and reprinting online. During the campaign, there were 383  cases investigated 
and handled, with 59 cases submitted to the judiciary authorities as criminal cases.  
158. Did any of the investigations involve Canadian copyright material?  
Reply: Could Canada clarify the meaning of Canadian copyright material ?  
159. What tools are available under China's  law for copyright owners to address infringement in 
the online/digital environment?  
Reply: Lawsuit and report or complaint to the copyright enforcement organiz ations are 
recommended to address such infringements.  
Part III. Trade Policies and Practices by Measure: Measures Affecting Production and 
Trade; Intellectual Property Rights; Enforcement; Administrative Enforcement:  
paragraph 3.248, page  113 
Canada notes  that the National Copyright Administration of China has encouraged government 
agencies to use legitimate software.  
160. Could China provide further information as to how it encourages government agencies to use 
legitimate software?  
Reply: Please refer to The Administrative Measures for Copyrighted Software Application 
by the Government Agencies  issued by the State Council in 2013.  
Canada notes that Chinese authorities have issued the Opinion on Public Information Disclosure of 
Administrative Cases Concerni ng IPR Infringement and Manufacture and Distribution of Counterfeit 
and Shoddy Commodities (For Trial Implementation) . 
161. Could China clarify whether and how the Opinion addresses goods that mislead consumers 
regarding their country of origin?  
Reply: Ple ase refer to http://www.gov.cn/xxgk/pub/govpublic/mrlm/201402/ 
t2014021866640.html  for the full text.  
Part III. Trade Policies and Practices by Measure: Measures Affecti ng Production and 
Trade; Intellectual Property Rights; Enforcement; Judicial enforcement:  
paragraph  3.250, page 113  
Canada notes that China has created specialized IP courts, and we have been following the related 
developments with interest.  
162. Could Chi na indicate whether the August 31, 2014 Decision on Establishing Intellectual 
Property Rights Courts , or other provisions, provide IP courts with the authority to order, at the 
conclusion of proceedings, that the prevailing party be awarded payment by the losing party of 
court costs or fees and appropriate attorneys fees?  
Reply: According to Article 63 of the Trademark Law , the amount of damages shall 
include reasonable expenses of the right holder for stopping the infringement. Similar 
regulations may be r eferenced in Article 65 of the Patent Law  and Article 49 of the WT/TPR/M/3 42/Add.1  
 
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  Copyright Law . According to Article  29 of the Measures for the Payment of Litigation 
Costs , the unsuccessful party shall assume the litigation costs, unless the successful 
party is voluntary t o assume such costs. In case of winning/losing a lawsuit in partial, 
the parties shall pay the litigation costs in proportion as determined by the people 's 
court based on the specific case conditions.  
Part III. Trade Policies and Practices by Measure: Meas ures Affecting Production and 
Trade; Intellectual Property Rights; Enforcement; Customs Law Enforcement:  
paragraph  3.253, page 114  
Canada notes that China Customs is seeking to strengthen international cooperation on IPR 
protection.  
163. Could China indica te what form it seeks this cooperation to take (e.g., general cooperation, 
specific bilateral initiatives)?  
Reply: China Customs has entered into bilateral and multi -lateral customs cooperation 
agreements on intellectual property right protection with the customs of USA, EU, Japan, 
Korea, Russia and members of SCO. In addition, China Customs has also positively 
played its role in the joint action initiated by WCO, INTERPOL, WHO, WIPO, APEC, SEM, 
etc. 
Part IV. Trade Policies by Sector: Agriculture; Policy ob jectives and administration; 
Policy formulation, institutional and legal framework:  paragraph 4.2, page 116  
According to the Secretariat report, China's  13th Five-Year Plan (2016 -2020) aims at modernizing 
the agriculture sector through mechanization and pr omoting the development of moderate -scale 
operations to increase productivity, deepen the reform of land contract rights and finance policies 
in rural areas, protect the quality of farmland, and ensure grain self -sufficiency (at least 95%) and 
food safety.  One of the listed methods to achieve these aims is reform of the price forming 
system.  
164. Could China provide more information about its price forming system and the reforms to the 
system being undertaken for agricultural products during its 13th Five-Year Plan (2016 -2020)?  
Reply : In 2014, China stopped its temporary procurement and stockholding policy for 
cotton. Meanwhile, the pilot target price reform was launched in Xinjiang, with the pilot 
soybean target price reform in Northeast China. Upon which, China abandoned the 
procurement of such items from the market at a fixed price. The price shall be 
determined based on the supply and demand. In case the market price is lower than the 
target price pre -set by the State, the producers concerned will be able  to receive direct 
payments that may fill the gap. In 2016, China replaced the temporary stockholding 
policy with a new mechanism composed of two elements, namely selling in the market 
by farmers and appropriate level of direct payment by the govern ment. The price shall 
be determined and reflect the market conditions, which may help to adjust the 
production and demand, and the corn producers sell their products at market price. The 
procurement entities shall operate independently in the market. The direct p ayment for 
corn producers will be established and applied in Jilin, Liaoning, Heilongjiang and Inner 
Mongolia Autonomous Region. In future, Chinese Government will adjust and optimize 
the related support measures based on the real effect of the reform of t he relevant 
subsidy policies.  
165. Could China please provide further details on specifically what products or grains is it aiming 
to be self -sufficient in? Are the tools and mechanisms used to achieve this goal specifically 
applicable for certain grains or do they apply to other products as well?  
Reply : The basic objective of food security of China is achieving self -sufficiency on 
grains and ensuring absolute security on staple foods. The grains include: wheat, rice, 
corn, barley, oat, sorghum, millet and  other coarse grains, with soybean excluded. For 
such purpose, China has taken a lot of measures, and make due adjustments according WT/TPR/M/3 42/Add.1  
 
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  to the changes of the situation. Such measures consist of both product specific support 
and decoupled payments (such as the  direct payment to farmers) . 
Part IV. Trade Policies by Sector: Agriculture; Policy instruments; Border measures; 
Measures affecting imports:  paragraph 4.8, page 117  
The Secretariat report states that wheat is among a list of products for which state -trading 
enterprises (STEs) and other entities can import products into China using portions of the 
established wheat tariff rate quota (TRQ). Canada understands that non -STE traders must apply to 
the National Development and Reform Commission of the People's Re public of China (NDRC) 
between 15 and 30 October each year for an import quota for the next calendar year. The NRDC 
subsequently determines the ultimate amount to be granted. If a quota -holder has not contracted 
for the total assigned quantity by 15 Septem ber of a given year, the unused portion of the tariff -
quota quantity will be reallocated, with new allocations assigned by 1 October. Canada also 
understands that specific conditions for applying for reallocation of tariff quotas are published 
officially o ne month in advance of the application period.  
166. Could China provide the fill rates for the STE portion of the TRQ and for the non -STE portion 
for the years covered in its most recent notification (G/AG/N/CHN/30) to the Committee on 
Agriculture?  
Reply: Since the accession to WTO, China has fully kept its commitments to manage the 
import tariff quota and agricultural products subject to state trading. The basis for the 
import tariff quota related to agricultural products is the Interim Measures for the 
Administration of Import Tariff Quotas of Agricultural Products  (MOC, NDRC Order 2003 
No. 4), with the agricultural products related import tariff quota, state trading quota, 
application conditions, allocation rules and relevant procedures published at the o fficial 
website based on the principles of equity, transparency and non -discrimination. In 
addition, the notice on the re -allocation of agricultural products related import tariff 
quota is released without delay.  
167. Could China define which end -users ar e eligible to apply for the non -STE share of TRQ? 
Specifically, are end -users which are partly state -, or provincially -owned, still eligible?  
Reply : The detailed rules on the allocation of TRQ are published well in advance, which 
clearly provide the requir ement for applicants. All the enterprises fulfill the 
requirements can apply for the TRQ and such qualification has nothing to do with the 
state shareholding.  
168. Could China explain the criteria by which non -STE traders are assessed for the non -STE 
share, for example the traders historical import performance, grain processing capacities, etc.?  
Reply : The basis for the import tariff quota related to agricultural products is the Interim 
Measures for the Administration of Import Tariff Quotas of Agricultura l Products (MOC, 
NDRC Order 2003 No.  4). China allocate to qualified state trading enterprises and non -
state trading enterprises applicants according to the amount applied, historical record of  
imports, production capacity and other related business standa rds. The historical record 
of import is a significant factor in the quota allocation.  
169. Given the process, could China outline the procedures by which TRQs are allocated and 
redistributed to non -state traders? Is there a lower limit on the size of indiv idual allocations to 
ensure that reallocated quotas are not too small to be commercially viable?  
Reply : For qualified applicants, China will allocate in accordance with the quantity of 
quotas under application, historical record of import, production capac ity and other 
relevant commercial standards. Before January 1 every year, China will allocate all 
quotas for the year concerned to enterprises, and the importation will be conducted by 
enterprises based on the market conditions, without interventions of th e Chinese 
government. The import tariff -rate quotas cannot be transferred among companies, and 
the quotas acquired must be used by the enterprises themselves. In addition, the goods 
imported shall be processed and operated by the same enterprise. Unused qu otas shall WT/TPR/M/3 42/Add.1  
 
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  be returned on middle August each year to be reallocated in a unified way. See the 
Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products 
(MOFCOM and NDRC Decree No. 4 issued in 2003) for specific procedures and  
requirements.  
Part IV. Trade Policies by Sector: Agriculture; Policy instruments; Border measures; 
Measures affecting imports,  paragraph 4.11; page  118 
It is noted that all agriculture products are subject to non -automatic import licenses. It is further 
noted that as of September 2015, automatic import licenses apply to barley, sorghum, cassava 
and maize. We understand that automatic import licenses are in place to monitor trade volumes of 
imports that are not restricted.  
170. Could China please elaborate on the purpose of requiring automatic import licenses for these 
four agriculture products? Is China considering the establishment of automatic import licenses for 
other agriculture goods?  
Reply : The main purpose for China to conduct automatic import licens ing to certain 
agricultural products is to enhance the import monitoring for the products concerned, 
lower the operation risk of enterprises, maintain the import order of goods and reduce 
irrational and disordered operation. The agricultural products manag ed by automatic 
import licenses include: beef and its by -products, port and its by -products, mutton and 
its by -products, chicken and its by -products, fresh milk, milk powder, soybean, soybean 
pulp, rapeseed, soya -bean oil, palm oil, colza oil, olive oil, s olid palm stearin, sugar out 
of the tariff -rate quota, cassava, barley, broomcorn, corn distiller and tobacco and its 
by-products.  
Part IV. Trade Policies by Sector: Agriculture; Policy instruments; Internal measures; 
Price controls and marketing:  paragrap h 4.23, page 123  
The Secretariat report notes that China has gradually liberalized the prices of most agricultural 
products, including grains. Part of this price liberalization has been the removal of products 
classified as key reserve materials (including  grains), from the Catalogue of Government -set Prices 
and Government -guided Prices. The report goes on to state that a minimum procurement price 
scheme remains in place for rice and wheat, and that minimum prices are set by institutions of 
government.  
171. Could China provide more information on how prices for grains, specifically rice and wheat, 
have been liberalized since being removed from the Catalogue of Government -set Prices and 
Government -Guided Prices given that the minimum procurement price scheme  remains in place?  
Reply : China has completely removed the restrictions on its grain market and price 
control since 2004, and the grain price is totally determined by the market. Generally, 
the farmers sell grains at market prices, without interventions by  the government. 
Under the precondition of exerting the leading role of the market mechanism, China 
applies the minimum procurement price policy for (unhusked) rice and wheat, which are 
two of the most important grain varieties, in main grain -producing are as in order to 
protect the farmers ' incentives to grow grains. Only when the market prices of 
(unhusked) rice and wheat in main grain -producing areas are significantly reduced, the 
policy will be triggered, and farmers may sell grains to enterprises design ated by the 
government with the minimum procurement price, avoiding the loss resulted from the 
fall of grain price. This type of domestic support is market price support, and China has 
already notified relevant supports to the WTO.  
Part IV. Trade Policies by Sector: Services; Telecommunications services: Regulatory 
framework:  paragraph 4.36, page 126  
It is noted that amendments to the 2000 Regulations on Telecommunications eliminated the filing 
obligation for network interconnection agreements.  WT/TPR/M/3 42/Add.1  
 
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  172. Could C hina provide information on its current requirements for filings by telecommunications 
service suppliers, including the relevant procedures?  
Reply: At present, after canceling the recording and approval of network interconnection 
agreements of public telec om networks, interconnection agreements shall be submitted 
to competent telecom department within 15 days since being signed in accordance with 
the Provisions on the Management of Interconnection between Public Telecom 
Networks . 
Part IV. Trade Policies by Sector: Services; Telecommunications services: Regulatory 
framework:  paragraph 4.37, page 126  
It is noted that t here were some developments with respect to facility sharing during the review 
period as it pertained to communications towers.  
173. Could Chin a provide information on its current requirements for the sharing of 
telecommunications facilities?  
Reply: The specific requirement s for co -construction and sharing of telecom 
infrastructures of China is that the supporting facilities for base stations , such as the 
iron tower, the indoor distribution systems, the pole lines and the pipelines , must be 
shared and co -constructed as long as relevant criteria for sharing and co -construction 
are met. The rate for facility sharing shall be negotiated and determine d by relevant 
enterprises.  
In particular, which facilities are required to be shared by telecommunications service suppliers 
and are these facilities subject to approved tariffs setting out the rates, terms and conditions for 
access to these facilities?  
Reply: Please refer to the Reply to Q173. 
Part IV. Trade Policies by Sector: Services; Telecommunications services: Regulatory 
framework:  paragraph 4.38, page 126  
It is noted that Internet access service providers in China can provide Internet access service s to 
users by renting the network resources from basic telecommunications companies and wired 
access facilities service providers.  
174. Could China confirm if any service supplier would be permitted to lease network resources 
from a telecommunications com pany or is access to these leased circuits limited to certain service 
suppliers such as an Internet service supplier?  
Reply: On the one hand, any service provider may rent network resources from basic 
telecom enterprises or network access facilities and se rvice enterprises and constitute a 
private network for their interior communication. Unless the operation licenses for 
telecom business are required, the service provider shall not provide exterior telecom 
services utilizing the rented network resources. O n the other hand, the basic telecom 
enterprises or network access facility and service enterprises, upon finding anyone who 
rents the network resources is conducting telecom business through the rented network 
resources without the licenses specified above , are obliged to terminate the renting of 
the network resources involved. In addition, the market -based pricing mechanism is 
adopted for the rental charges of network resources, which are not determined by the 
government.  
175. Could China provide informati on on its regulatory regime with respect to access to network 
resources by basic telecommunications companies and wired access facilities service providers? 
For example, is the access to these network resources provided through approved tariffs setting 
out the rates, terms and conditions?  
Reply: Please refer to the Reply to Q175. WT/TPR/M/3 42/Add.1  
 
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  Part IV. Trade Policies by Sector: Services; Telecommunications services: Regulatory 
framework:  paragraph 4.39, page 126  
It is noted that there have been developments with respect to number portability.  
176. Could China provide information on its current regime for number portability?  
Reply: Chinese number portability refers to that within the local telephone network the 
mobile phone subscribers can change the signed basic telecommu nication operating 
companies without changing the subscriber number. At present, China has conducted 
number portability trials within five provinces (cities), and will carry out the next step 
according to the experimental results.  
177. Does China plan on e xpanding number portability to all Provinces?  
Reply: Please refer to the Reply above.  
Part IV. Trade Policies by Sector: Services; Financial Services : paragraph  4.44, page 127  
Canada notes that self -regulatory organizations (SROs) were not discussed in the  section of the 
Secretariat report dealing with financial services.  
178. Can China please confirm what self -regulatory organizations (SROs) exist in the financial 
sector? Additionally, what are their mandates and regulatory activities, their relationship with the 
Chinese banking, insurance and securities regulatory commissions, and, if applicable, under which 
government measures do the SROs exercise their powers?  Further, do any SROs restrict the ability 
of foreign firms to become members or treat foreign members differently?  
Reply: Self-regulatory organizations (SROs) in financial sector form  an important part of 
the financial regulatory system. Chinese banking, insurance and securities all have their 
own industry SROs, e.g. the China Banking Association, National Association of Financial 
Market Institutional Investors, Insurance Association of China, China Association of 
Actuaries, Securities Association of China, and China Futures Association.  Like other 
industry associations, most of these SROs of financ ial sector are non-profit social 
organizations, which are voluntarily organized to realize the common aspirations of 
members and conduct activities according to the regulations. The current relevant 
statutory regulation mainly refers to Regulation on Regis tration and Administration of 
Social Organizations . Taking the insurance as an example, the China Insurance 
Regulatory Commission is the professional authority of the community organizations of 
insurance, and the Ministry of Civil Affairs of the People's R epublic of China  is the 
registration administrative agency. The management responsibilities of professional 
authority given by Regulation on Registration and Administration of Social Organizations  
include: to be responsible for the investigation before the  registration of the 
establishment, amendment of register and cancellation of registration of social 
organization; to supervise and guide the social organizations to comply with 
constitution, laws, regulations and national policies, and conduct activities according to 
its regulations; be responsible for the preliminary investigation of annual inspection of 
social organizations; to help the registration administrative agency and other related 
departments with the investigation and treatment on illegal activi ties of social 
organizations; to guide the liquidation of social organizations jointly with relevant 
agencies. On this basis, the communities host the meeting dependently. CIRC will not 
intervene in the decision and work of insurance community organization s. As for the 
foreign companies in China and joint venture insurance companies approved by CIRC, 
there is no limit and discriminatory for being the member of an SRO.  
Part IV: Trade Policies by Sector: Regulatory framework for pension funds:  
paragraph  4.84,  page 137  
It is noted that the licensing conditions for annuity funds are centred on qualifications and 
prudential considerations and that, currently, there are 34 institutions qualified to engage in the WT/TPR/M/3 42/Add.1  
 
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  management of enterprise annuity funds, 20 of which with a certain degree of foreign investment 
participation.  
179. Canada recognizes the significant, ongoing efforts of China to modernize both the public and 
private components of its retirement income system. Can China please describe what limitations it 
places on participation by foreign companies in the enterprise annuity business and other aspects 
of the Pillar 2 workplace pension industry, both with respect to establishing new operations and 
investing in existing Chinese firms? For instance, can wholly -owned foreign firms be established 
and be granted an Enterprise Annuity license?  
Reply: According to the current Chinese policy, China issues the license irregularly on 
the basis of  the demands of business development on management qualification of 
enterpr ise / occupational annuity fund. For t he specific practice of license issue , the 
conditions and procedures specified in  Interim Measures for Qualification Accreditation 
of Enterprise Annuity Fund Management Institutions  (MOHRSS Decree No. 24)  shall 
apply . 
Part V. Appendix Tables: Table A1.1 Status of Selected Reforms Announced in the Third 
Plenum of the 18th CCP Central Committee Communiqu é (12 November 2013), and the 
Decisions on Major Issues Concerning Comprehensively Deepening Reform 
(15 November 2013), April 2016: page  145 
The Secretariat notes China's  intent to engage in manufacture reform through the 8 trillion yuan 
Made in China 2025 subsidy program to upgrade Chinese industry across targeted sectors. The 
program seeks to increase localization, with t he aim to raise domestic content of core components 
and materials to 40% by 2020 and 70% by 2025.  
180. Would China please indicate how it plans to manage the localization goal of the program 
consistently with its WTO obligations?  
181. How will China addres s foreign company participation and competition concerns with respect 
to the localization goals of the program?  
182. Will China  notify Made in China 2025 subsidies at all levels of government?  
Reply on questions 181 -183: The report by the Secretariat does not mention China's  
intent to make an investment of RMB 8 trillion to implement the subsidies program Made 
in China 2025. Canada has misinterpreted the report by the Secretariat.   
Part V. Appendix Tables: Table A1.2 Summary of the Outline of the 13th Five-Year Plan 
for National Economic and Social Development (2016 -2020), as endorsed by the NPC: 
page 147  
Under Announced reform initiatives, an item on broaden environmental taxes is listed.   
183. Could China elaborate on the specific of environmental taxes co ncerned and on progress in 
this area? For example, could China provide an update on the status of its draft Environmental 
Protection Tax Law released in 2015?  
Reply: At present, China is studying and improving the Environmental Protection Tax 
Law (Draft) . 
Under New administrative system: Fiscal reform an item on prioritize the use of innovative and 
green products in government procurement is listed.   
184. Could China elaborate on the ways in which the prioritization of the use of innovative and 
green produc ts in government procurement is integrated into central, provincial and local 
procurement policies?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China has formulated the government procurement policy to improve the 
procurement of innovative and green products, and implemented uniformly nationw ide. 
And China will further improve relevant policies.  
Part V. Appendix Tables: Table A2.3 Industries in which FDI was/is restricted, 2011 
and/or 2015 (Section VII), page 158  
Canada is pleased to see that online sales have been removed from the 2015 list o f industries in 
which foreign direct investment is restricted.  
185. Does China maintain other measures applicable to foreign service suppliers selling products 
online within in or into China?  
Reply: The reform and opening -up policy is the basic state polic y of China. The Chinese 
government will consider the further opening measures in the future according to the 
demand of domestic market development.  
Part V. Appendix Tables: Table A2.3 Industries in which FDI was/is restricted, 2011 
and/or 2015 (section XI) , page 159  
In 2015, new FDI restrictions were placed on institutions of higher learning and pre -school 
educational institutions.  
186. What is the purpose of these new restrictions?   
Reply: Foreign education service providers may only provide education serv ices in a 
collaborative form in China, which is one of the definite requirement s of China 
committed when joining the WTO. The foreign merchants may only make invest ment  in 
institutions of higher learning and pre -school educational institutions directly by 
collaborating with the relevant Chinese educational institutions, and this  is not a new 
restriction. Based on the demand of ensuring the integrity of Chinese education system, 
this requirement is also beneficial for foreign investors to establish the educa tional 
institution suitable for the Chinese education system as well as education demands.  
It is noted that FDI in ordinary senior high schools is restricted.  
187. Is there a legal definition of ordinary senior high school?  
Reply: The ordinary senior high school is a conventional usage or abbreviation, rather 
than a strict legal concept. From the legal point, it refers to the senior secondary 
education implemented after the 9 -year compulsory education, with three years of 
schooling ; it is a kind of educatio n of making preparation for college entrance and is 
different from senior secondary specialized education after the 9 -year compulsory 
education.  
188. Are there institutions in China providing secondary education services covered by CPC 922 
(secondary educa tion services), which are not ordinary senior high schools? If yes, please describe 
them.   
Reply: A s specified in A rticle 17 of Education Law of the People's Republic of China : the 
State applies a school education system embracing pre -school education, pri mary 
education, secondary education and higher education. In China, the secondary education 
refers to the secondary ordinary education and secondary specialized education 
continuously implemented on the basis of primary education. The school s implementing 
secondary ordinary education are ordinary secondary school s; the school s implementing 
secondary specialized education are secondary specialized school s, including secondary 
technical school and secondary normal school, which are responsible for training 
secondary specialized technicians for each national economy sector.  
It is noted that FDI in institutions of higher learning must be a cooperative joint venture.  WT/TPR/M/3 42/Add.1  
 
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  189. Is there a legal definition of institutions of higher learning?  
Reply: According to the High er Education Law of the People's Republic of China , Chinese 
higher education institutions include institutions of higher learning, scientific research 
institutes and other higher education institutions capable of graduate education task. 
The higher educati on institutions include universities implementing undergraduate 
course and the education at a still higher level, colleges set independently, and junior 
colleges implementing specialized education. Other higher education institutions 
implement non -academic  credential higher education.  
190. Are there institutions of higher learning in China providing services not captured by CPC 923 
(higher education services)? If yes, please describe them.  
Reply: please refer to the Reply above.  
191. Is the State Administra tion of Foreign Experts Affairs responsible for training received by 
Chinese technical and managerial professionals at institutions of higher learning located in China?  
Reply: The State Administration of Foreign Experts Affairs (SAFEA) is the centralized 
management department of the Chinese government conducting the nationwide training 
of going abroad for public affairs, mainly responsible for the examination and approval 
of the annual plan and project implementation of going abroad for public affairs 
natio nwide. The going abroad training of the technical and managerial professionals at 
institutions of higher learning located in China is declared by relevant national and local 
competent authorities such as the Ministry of Education and provincial (municipal or 
regional) education departments according to actual situation and implemented by the 
organization of project unit (institutions of higher learning) in charge of the project.  
Part V.  Appendix Tables: Table A2.4 Industries in which FDI was/is prohibited, 2011 
and/or 2015 (Section IX and X), Page 161 
It is noted that Foreign Direct Investment (FDI) in compulsory education institutions is prohibited, 
as well as education institutions in military affairs, police, politics and other special fields, and 
Party s chools.  
192. Could China please provide a definition of special field?  
Reply: The services provided by education institutions engaged in military affairs, police, 
politics and other special fields are the fields specifically excluded from the Schedule of 
Commitments on China Entering WTO, and there is no specialized definition on special 
fields currently.  
Part V.  Appendix Tables: Table A2.4 Industries in which FDI was/is prohibited, 2011 
and/or 2015 ( section XI), Page 162 
It is noted that online publicatio n services have been added to the list of industries in which 
foreign investment is prohibited.  
193. Could China provide information on the scope of its new rules with respect to online 
publication services? For example, do these rules cover all content p ublished on the Internet?  
Reply: According to Article 2 of the Regulations on the Administration of Online 
Publication Services , the online publications service refe rs to the provision of internet 
publications to the public through information network. The  internet publications mean 
the digital works provided to the public through information network and with 
publishing characteristics of edition, production, processing, etc., mainly includ ing: 
(I) original digital works with knowledge and thoughtfulness in  fields including 
literature, art and science, such as text, picture, map, game, animation, and audio/video 
reading; (II) digital works consistent with published books, newspaper, periodicals, 
audio and video products, E -journals, etc. in contents; (III) d igital works formed 
through selection, layout, collection, etc. of above works, such as network document WT/TPR/M/3 42/Add.1  
 
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  database; (IV) digital works in other types affirmed by the State Administration of 
Press, Publication, Radio, Film and Television (SAPPRFT).  
194. Will foreign service suppliers with servers located outside of China be allowed to provide their 
published content into China under the new rules?  
Reply: According to Article 8 of the Regulations on the Administration of Online 
Publication Services,  one of the basic conditions for online publication service to be 
provided in China is that the servers and storage devices must be stored within the 
territory of the People's Republic of China.  WT/TPR/M/3 42/Add.1  
 
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  7  CANADA (FOLLOW -UP) 
Part III.  Trade Policies and Practices by Measure: M easures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph 3.60, page  62 
It is noted that China maintains four types of standards, national, industry/sectoral, local and 
enterprise standards. With respect to national versus local st andards, national standards replace 
local standards unless the local standard is stricter than the national standard.  
77. What resources are available to help exporters and importers familiarize themselves with local 
product standards?  
Reply from China : The product standards are available on the public service platform of enterprise 
standard information.  
Follow -up question : Can China provide a web address to the public service platform of 
enterprise standard information?  
Reply: The website is  http://www.cpbz.gov.cn/ ; you may also browse this website from 
the public service platform of enterprise product standard information on the bottom left 
of the homepage of  the website of Standardization Administration of the Peop le's 
Republic of China  www.sac.gov.cn . 
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph 3.61, page  63 
Canada understands  that the St andards Administration of China (SAC) is responsible for the 
standards system  in China.  
Does SAC provide online resources for importers and exporters to familiarize themselves with 
China's  voluntary and mandatory standards?  
Reply from China : At present, SA C provides free online full -text browsing service for the public in 
terms of national mandatory standards. The standard information center also provides online 
browsing service in terms of national recommendatory standards, but the service is not free.  
Follow-up question : Can China provide a web address to the online browsing service where the 
national mandatory standards can be found?  
Reply: Web address is http://gb123.sac.gov.cn/gb/index . You may also browse  this 
website from Full Text of National Mandatory Standards Released on the bottom right of 
the homepage of the website of Standardization Administration of the People's Republic 
of China www.sac.gov.cn . 
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph 3.64, pages  63-64 
China enacted new charging standard/fee for registering pharmaceuticals and medical devices with 
the China  Food and Drug Administration (No. 53, 2015) and Canada is concerned with China's  
approach of combining registration fees with on -site inspection fees for foreign manufacturers.  
83. Can China also provide the registration fees to be levied by China's  provinces on do mestic 
manufacturers?  
Reply from China : China adopts hierarchic administration system on the supervision of foods and 
drugs. Local food and drug supervision departments are in the charge of the registration authority 
of some drugs and medical devices, the registration charging standards in this case are jointly 
determined by provincial food and drug supervision departments, financial departments and 
commodity price departments. So far, total eight provinces (municipalities and autonomous 
regions), including  Beijing, Shanghai, Shandong, Fujian, Jiangxi, Hainan, Inner Mongolia and Jilin, 
have formally formulated their local registration charging standards.  WT/TPR/M/3 42/Add.1  
 
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  Follow -up question : Can China please provide Canada with the relevant local registration 
charging standar ds and methodology for determining those charging standards adopted by the 
eight provinces for all domestic items for which a set charge has not been disclosed?  
Reply: China adopts a tiered administration modality  on the regulat ion of food and 
drugs. Local  food and drug regulatory  departments are in the charge of the registration 
administration  of some drugs and medical devices . According to Regulations for 
Management of S tandard/fee for Registering Pharmaceuticals and Medical Devices , the 
registration char ging standards in this case are determined by provincial price and 
financial departments in accordance with relevant articles in the Regulations . Relevant 
information can be searched on the websites of provincial price and financial 
departments.  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph s 3.65-3.67 inclusive, page  64 
Canada notes that China's  standards development processes vary depending on whether they are 
volunta ry or mandatory, industrial/sectoral, national or local.  
87. Who can participate in the consultation processes provided for under the Measures on 
Administration of National Standards?  
Reply from China : According to the Measures on Administration of Nation al Standards, during the 
standards development process, the technical committee will issue the exposure draft to the major 
units and colleges & universities related to production, distribution, utilization, scientific research, 
inspection and other links t o seek for their comments, lasting for two months.  
Follow -up question : Can China please elaborate on what is meant by major units? Would foreign 
private entities be entitled to participate in this process?  
Reply: Units from which comments are sought for ar e representative ones in relevant 
industries, and foreign -invested enterprises may be selected as representative units. 
What  is more, the technical committee will generally post the draft on its website to 
seek  public comments, and foreign private entities  are entitled to make their 
suggestions and comments.  
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph 3.71, page  65 
Canada notes that the China National Certification an d Accreditation Administration (CNCA) is 
responsible  for China's  voluntary and compulsory conformity assessment regimes. Canada also 
notes that there are many regulations governing the accreditation and administration of 
certification bodies.  
91. Canada un derstands that under the Import and Export Commodity Inspection Law, the 
authority to perform testing has been delegated to local import and export commodity inspection 
authorities. Can China confirm that the Export Commodity Inspection Law will also allow  for 
recognition of testing done by a third party (non -local import and export commodity inspection 
authorities)?  
Reply from China : In some sectors, China recognizes the third -party test report. For example, 
Shanghai Free Trade Zone has considered recogniz ing the third - party test reports on motor 
vehicle.  
Follow -up question : Can China please provide further information for which sectors China 
recognizes third -party testing? In addition, can China provide the specific websites and 
documents?  
Reply: In some industries, China recognizes the third -party test report. For example,  
Shanghai Pilot Free Trade Zone has considered to recogni ze the third - party test reports 
on motor vehicle s. WT/TPR/M/3 42/Add.1  
 
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  91. If so,  under what circumstance does China recognize a third party test re port for commodities 
covered under the Import and Export commodity Inspection Law?  
Reply from China : If the third party can participate in the implementation of China Compulsory 
Certification (CCC) system through the multilateral and bilateral internationa l mutual -recognition 
cooperation, its test data and results can be accepted or recognized according to corresponding 
cooperation agreements.  
Follow -up question : Can China provide a list of mutual recognition agreements it has entered 
into with other Partie s for the recognition of test reports, and specify in which sectors they apply?  
Reply: China has signed with other Parties some mutual recognition agreements on 
conformity assessment. For example, China has signed with New Zealand The 
Agreement between the  Government of the People's Republic of China  and the 
Government of New Zealand on Cooperation in the Field of Conformity Assessment in 
Relation to Electrical and Electronic Equipment and Components  under the framework of 
bilateral FTA  and China has signed  with the Republic of Korea the Arrangement on 
Closer Cooperation in the Field of Conformity Assessment in Relation to Electronic 
Products and Implementing Arrangement on Cooperation in the Field of Mutual 
Recognition of Conformity Assessment . 
Part III.  Trade Policies and Practices by Measure: Measures Directly Affecting Imports;  
Standards and Technical Regulations: paragraph 3.75, page  66 
Canada is interested in a number of processes with respect to China Compulsory Certificate (CCC) 
certification and accr editation procedures.  
94. How many non - Chinese certification bodies are currently accredited to certify to 
CCC requirements, and what is the process for non - Chinese certification bodies to become 
accredited for China CCC certification?  
Reply from China : According to current regulations, only domestic bodies can be designated as 
CCC certification bodies.  
Follow -up question : In response to question 92, China indicated that the third party can 
participate in the implementation of China Compulsory Certificat ion (CCC) system through the 
multilateral and bilateral international mutual -recognition cooperation. Given China's  response to 
question 94 which indicates that according to current regulations only domestic bodies can be 
designated as CCC certification bo dies, can China please explain under what domestic legislative or 
regulatory authority such mutual -recognition cooperation agreements are undertaken?  
Reply: The certification bodies, inspection bodies and labs designated as 
CCC certification bodies shall c onduct international mutual recognition activities under 
the framework of international mutual recognition agreements recognized by the State 
Council or signed by relevant authorized State Council departments . WT/TPR/M/3 42/Add.1  
 
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  8  CHILE  
I. 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES,  POR MEDIDAS  
3.2 Medidas que afectan directamente a las exportaciones  
3.2.1 Procedimientos y requisitos en materia de exportación  
Párrafo 3.94 : En el marco de la reforma del despacho de aduana clasificado, iniciada en 2009 y 
adoptada por todas las oficinas  de aduanas para facilitar los procedimientos de exportación, las 
empresas se clasificaron en grupos diferentes en función de un análisis del riesgo. (109) La 
inspección y supervisión aduaneras dependían de la calificación de la empresa. Los productos 
expor tados por empresas calificadas como empresas de alto riesgo eran sometidos a inspección, 
mientras que las demás exportaciones se despachaban por una vía rápida o mediante un "examen 
de exportaciones de bajo riesgo". (110) En 2015 se modificó el sistema de c lasificación de 
empresas, de modo que actualmente las empresas se clasifican como sigue en función de su 
calificación crediticia: empresas autorizadas (antes, AA y A), empresas de integridad general 
(antes, categoría  B), y empresas deshonestas. (111) La ref orma del despacho de aduana sin 
documentación impresa, iniciada en 2012 como un programa piloto, se amplió al resto del país en 
2014. Ahora, para el despacho de aduana, las empresas solo necesitan presentar los formularios 
de declaración y la documentación  justificante en formato electrónico. (112)" 
Pregunta 1:  El párrafo 3.94 señala que las empresas son clasificadas de acuerdo a un análisis de 
riesgo, para fines de inspección y supervisión en aduanas. Chile agradecería a China dar más 
información sobre cómo  realiza esta clasificación y bajo qué criterios. Asimismo, en el caso de que 
una empresa esté clasificada como "deshonesta ", ¿tiene la oportunidad de cambiar esta 
clasificación?  
Reply: Since December 2014, the China General Administration of Customs (GAC)  has 
implemented the reform of enterprise credit management, replacing the original 
classified enterprise administration system. Enterprise credit status will be evaluated 
according to their internal control, financial status, and their compliance with rul es and 
trade security; and enterprises will be classified as authorized enterprises, enterprises 
of general integrity and dishonest enterprises. Authorized enterprises can enjoy and 
benefit from special customs clearance privileges; enterprises of general integrity are 
subject to intermediate customs clearance; dishonest enterprises are subject to stricter 
controls. Authorized enterprises are "Authorized Economic Operators " (AEO) of the GAC, 
including advanced authorized enterprises and generally authorized  enterprises. As 
stipulated, since December 1, 2014, enterprises formerly labeled as AA -class are 
classified as advanced authorized enterprises; enterprises formerly known as A -class 
are classified as generally authorized enterprises; enterprises formerly as B-class are 
classified as enterprises of general integrity; enterprises formerly labeled as C or D class 
are to be reassessed by the GAC. The GAC will implement a dynamic adjustment system 
to evaluate enterprise credit ratings according to enterprise cr edit status. Customs will 
review the qualifications of advanced authorized enterprises every three years and 
perform a reassessment on generally authorized enterprises on a random basis. 
Dishonest enterprises conforming to relevant requirements of credit m anagement may 
be reclassified as an enterprise of general integrity after one year of good behavio ur; 
and they may apply for reclassification, as an authorized enterprise, one year after 
becoming an enterprise of general integrity.  
3.2.2 Impuestos, cargas y gravámenes a la exportación  
Párrafo 3.95 : China sigue aplicando impuestos de exportación de conformidad con el Reglamento 
sobre derechos de importación y exportación. (113) Cada año se publica la lista de productos 
sujetos a derechos de exportación "legal es" y provisionales. Las exportaciones sujetas a derechos 
legales también pueden gravarse con un derecho provisional, generalmente a un tipo más 
bajo.(114) Las exportaciones sujetas a derechos provisionales también pueden estar gravadas con 
un derecho de e xportación especial, que se aplica sobre una base estacional y puede ser 
considerablemente más elevado que los derechos provisionales. Los derechos de exportación 
pueden ser ad valorem , específicos, o de otro tipo establecido por el Estado; no obstante, en  la 
práctica, la mayor parte de ellos son derechos ad valorem ." WT/TPR/M/3 42/Add.1  
 
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  Pregunta 2 : El párrafo 3.95 explica que en China se aplican impuestos de exportación "legales " y 
provision nales. Chile agradecería a China, explicar los fundamentos de política pública para es tos 
dos tipos de medidas.  
Reply: The formulation basis is Article 9 of Regulations on Import and Export Tariffs.  In 
addition, the special export duty mentioned above has been cancelled.  
3.2.2 Impuestos, cargas y gravámenes a la exportación  
3.3.2.2 Acuerdos  monopolísticos y posición dominante en el mercado  
Párrafo 3.140:  Se prohíben a las empresas que se considera que gozan de una posición 
dominante en el mercado determinados tipos de conducta que pueden dar lugar a un abuso de esa 
posición: por ejemplo, ven der productos a precios injustificadamente elevados o comprar 
productos a precios injustificadamente bajos; y, sin razones válidas, vender productos a precios 
inferiores al costo, o realizar compras o ventas vinculantes de productos o imponer condiciones d e 
comercio poco razonables. La NDRC y la SAIC realizan investigaciones caso por caso para 
determinar si se considerará que una empresa goza de esa posición. Las empresas consideradas 
con posición dominante están obligadas a proporcionar a los competidores,  en condiciones 
razonables, acceso a sus servicios o instalaciones esenciales. También pueden ser objeto de 
multas… " 
Pregunta 3:  El párrafo 3.140 establece que se prohíbe que las empresas que gozan de una 
posición dominante tengan ciertas conductas dado qu e pueden dar lugar a un abuso de esa 
posición. Se menciona como ejemplo de esas conductas el "vender productos a precios 
injustificadamente elevados o comprar productos a precios injustificadamente bajos… " Chile 
agradecería a China dar mayor información so bre cómo evalúan y determinan las autoridades 
pertinentes que un precio es injustificadamente bajo o elevado. Asimismo, ¿deben las empresas 
justificar cada determinación de precio? ¿Se les multa si se determina que estaban incurriendo en 
dichas conductas?  
Reply: The control on the pricing of commodities and services  in China has already been 
deregulated, which is independently set by operators and formed by market 
competition. Article 17 of the Anti-Monopoly Law  explicitly stipulates that, operators 
with ma rket dominant positions are prohibited from selling products at unreasonably 
high prices or purchasing products at unreasonably low prices . Therewith, the 
anti-monopoly enforcement agencies  shall pay more attention to whether there exist 
"unfair " behavio urs in the price -setting process by operators with market dominant 
positions. Taking Qualcomm case for example, it is convicted of high license fees 
considering its series of unfair operations including license fees charged on expired 
patents. These unfair o perations combined lead to unfair high license fees.  
The National Development and Reform Commission is entitled to investigate and treat price 
behavio urs violating the Anti-Monopoly Law , the Price Law  and other laws and regulations.  
II. 
3.1 Medidas que afe ctan directamente a las importaciones  
3.1.8  Normas y otras prescripciones técnicas  
3.1.8.1 Normas y reglamentos técnicos  
Párrafo 3.60:  China tiene cuatro tipos de normas: nacionales, de ramas de 
producción/sectoriales, locales y empresariales. Las normas d e los tres primeros tipos pueden ser 
voluntarias u obligatorias (reglamentos técnicos). Las normas nacionales se elaboran para su 
adopción a nivel nacional; mientras que las normas de ramas de producción/sectoriales, que 
también son aplicables a nivel naci onal, se elaboran cuando no existe una norma nacional pero es 
necesario cumplir condiciones específicas en determinado ámbito profesional a nivel nacional. Las 
normas también se pueden elaborar a nivel local (normas locales) cuando no existen normas 
nacion ales o de ramas de producción/sectoriales. No obstante, si se elaboran normas nacionales 
equivalentes, estas sustituyen a las normas locales y a las normas de ramas de 
producción/sectoriales. La excepción en estos casos se da cuando las normas locales son más 
estrictas que las nacionales. Se pueden elaborar normas empresariales para una empresa cuando 
no existen normas nacionales, de ramas de producción/sectoriales o locales.   WT/TPR/M/3 42/Add.1  
 
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  Pregunta 4:  Chile agradecería a China responder si las normas mencionadas en este  párrafo, se 
basan en normas internacionales. Asimismo, dar mayor información sobre el o los criterios 
utilizados para elaborar dichas normas.  
Reply: As early as in 2001, China issued Management Measures for Adopting 
International Standards  to set the adop tion of international standards as an important 
technical economic policy, and require setting standards according to relevant 
international standards (including the international standards about to be formulated), 
making great efforts to enhance the coord ination between China 's national standards 
with international standards. Currently, a high proportion of China 's national standards 
adopt international standards, and the formulations of a large number of specific 
product standards in industrial and local standards mainly comply with the actual 
demands of China due to lacking of corresponding international standards.  
According to The Standardization Law , the basis to formulate national, industrial, local and 
enterprise standards is: national standards shoul d be formulated for the technical requirements 
that need to be unified nationwide; industrial standards may be developed for the technical 
requirements that need to be unified in a certain industry nationwide when national standards are 
not available; loca l standards may be developed for the safety and sanitary requirements on 
industrial products that need to be unified in provinces, autonomous regions, direct -controlled 
municipalities when national and industrial standards are not available; Chinese govern ment 
encourages enterprises to develop enterprise standards stricter than national standards, industrial 
standards and local  standards to enhance product quality and technical progress.  
Pregunta general asociada a Normas y reglamentos técnicos   
Pregunta 5 : Chile agradecería a China informar si cuando se elaboran los reglamentos técnicos, se 
lleva a cabo un mecanismo de evaluación de impacto regulatorio.  
Reply: Please clarify. The specific meaning of  evaluation and regulation. As understood 
by us, currently , the necessity and feasibility of the national standards shall be 
evaluated by experts before project initiation. Only the projects that have passed 
evaluation procedures can be set up to formulate as national standards. Some industrial 
standards also ado pt the appraisal mechanism at project initiation.  
3.1.8.2 Certificación de productos  
Preguntas generales asociadas a Certificación de productos:  
Pregunta 6:  Chile agradecería a China informar si respecto al procedimiento general de 
certificación de produc tos, China acepta certificaciones extranjeras.   
Reply: Chinese certification bodies accept certification application of foreign products.  
Pregunta 7:  De ser afirmativa la respuesta a la pregunta anterior, Chile agradecería a China dar 
mayor información sob re exigencias y sectores o productos que pudieran estar excluidos para las 
certificaciones extranjeras.  
Reply: Applicants can submit compulsory certification application to certification bodies 
appointed by CNCA, or submit voluntary certification applicati on to certification bodies 
approved by CNCA. Refer to the corresponding certification enforcement regulations for 
specific certification requirements.  
Pregunta 8:  Chile agradecería a China, dar mayor información sobre cómo funciona el sistema de 
acreditaci ón. Asimismo, ¿China es parte de los Acuerdos de Reconocimiento Multilateral (MLA) del 
Foro Internacional de Acreditación (IAF)?  
Reply: CNAS is a multilateral and mutual recognition member.  WT/TPR/M/3 42/Add.1  
 
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  Preguntas generales asociadas a Normas y otras prescripciones técn icas 
Pregunta 9:  Chile agradecería a China dar mayor información sobre la existencia de algún 
mecanismo de coordinación nacional en materia de Obstáculos Técnicos al Comercio (OTC) a nivel 
público y/o a nivel privado.   
Reply : Yes. For example, Joint Confer ence of National Technical Trade Measures.  
Pregunta 10:  Chile agradecería a China dar mayor información sobre el proceso para llevar a cabo 
la fiscalización de productos, incluyendo información de si es en frontera o en el mercado y sobre 
qué organismos la  llevan a cabo.   
Reply : Please clarify the term "marginalization ", which is defined unclearly.  
3.1.9 Prescripciones sanitarias y fitosanitarias  
En el cuadro 3.8 de la sección 3.1. 9 se lista una serie de Leyes y reglamentos relativos a medidas 
sanitarias y  fitosanitarias. Al respecto:   
Pregunta 11: Chile agradecería a China indicar un acceso directo o un sitio web de descarga para 
poder visualizar dichos reglamentos y Leyes, así como sus modificaciones. De ser posible, en 
Inglés.  
Reply: The Food Safety Law  can be inquired on the websites of the National People 's 
Congress of the People 's Republic of China ( http://www.npc.gov.cn ) and China Food 
and Drug Administration ( http://www.sfda. gov.cn ). Inspection and quarantine 
regulations can be searched and downloaded on http://wsjyjgs.aqsiq.gov.cn/flfg/ .  
Pregunta 12: Chile agradecería a China indicar la razón de por qué los instrumentos jurí dicos 
"Medidas en frontera para la prevención y tratamiento del SIDA " y "Medidas para la supervisión y 
administración de la inspección y cuarentena de los productos cosméticos importados y 
exportados ", parecen no estar dentro del ámbito MSF y sin embargo s e encuentran en la lista de 
Leyes y reglamentos relativos a medidas sanitarias y fitosanitarias.  
Reply: Measures for the Prevention and Treatment of AIDS  at Frontier has nothing to do 
with "Médecins  Sans Fronti ères". 
III. 
3 POLÍTICAS Y PRÁCTICAS COMERCIALE S, POR MEDIDAS  
3.3 Medidas que afectan a la producción y al comercio  
3.3.7 Derechos de propiedad intelectual  
3.3.7.1 Panorama general y evolución del marco institucional  
Pregunta 13:  Chile agradecería a China dar mayor información sobre qué sistema de ago tamiento 
de los derechos de propiedad intelectual aplica. Asimismo, indicar si el sistema es el mismo para 
todas las categorías de derechos de propiedad intelectual, especialmente patentes, marcas y 
derechos de autor  
Reply: As stipulated by The Trademark L aw, as to trademark infringement cases, parties 
involved can file lawsuits in People's Court, or request the administrative authorities for 
industry and commerce  for processing as well. The administrative authorities for 
industry and commerce can not only i nvestigate and treat trademark infringement cases 
in response to complaints from parties involved, but also investigate and treat 
trademark infringement cases according to tip -offs from anyone, or can proactively 
investigate and treat trademark infringemen t cases ex officio.  
The Patent Law  has formulated corresponding provisions on patent infringement and 
counterfeiting that disturb market order. Article 60 of the Patent Law  states that 
patentees or interested parties can file lawsuits in People's Court or request 
departments administrating patent work for processing on patent infringement 
behavio urs. In addition, Article 63 of the Patent Law requires that, those counterfeit WT/TPR/M/3 42/Add.1  
 
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  patents, other than legally bear civil liabilities, are to be instructed and a publi c 
announcement will be made., Illegal gains will be confiscated and penalty under four 
times of the illegal gains can be imposed by departments administrating patent work; 
those without illegal gains can be imposed with penalty under 200,000 yuan; those 
constitute a crime shall be legally given criminal sanctions.  
3.3.7.2 Propiedad industrial  
3.3.7.2.1 Patentes  
Párrafo 3.210:  El período de vigencia de la protección mediante patente es de 20 años contados 
a partir de la fecha de la presentación de la solicit ud en el caso de las invenciones, y de 10 años 
contados a partir de la fecha de presentación de la solicitud en el caso de los modelos de utilidad y 
los dibujos y modelos industriales. Las solicitudes de patentes se presentan en la SIPO. Las 
solicitudes de  patentes de invenciones deben ser publicadas sin demora después de transcurridos 
18 meses desde la fecha de su presentación (o la fecha a partir de la cual se reconoce la prioridad, 
si se alega esa prioridad). Debe presentarse una solicitud de examen sust antivo antes de que 
transcurra un plazo de tres años contados a partir de la fecha de la solicitud (o la fecha a partir de 
la cual se reconoce la prioridad), pues de no hacerse así se considera que la solicitud ha sido 
retirada. Los derechos de patente de invenciones están protegidos provisionalmente desde la  fecha 
de la publicación de la solicitud hasta la fecha de concesión de la patente. El tiempo medio 
requerido para llevar a término el examen sustantivo con respecto a una patente de invención era 
de 21 ,8 meses en 2014, frente a 22,6 meses en 2012.  
Pregunta 14:  La ley China de patentes establece que el solicitante debe presentar una solicitud de 
examen antes de que transcurra el plazo de tres años contados desde la fecha de la solicitud o de 
la prioridad . Chile agradecería China, dar mayor información sobre si existen medidas 
subsanadoras transcurrido el plazo de tres años. Asimismo, si pueden los solicitantes restaurar su 
derecho.  
Reply: Clause 1, Article 35 of The Patent Law  states that, the applicatio n is deemed to be 
withdrawn if the applicant does not apply for substantive examination within the time 
limit without justified reasons. Meanwhile, Clause 2, Article 6 of  The Rules for 
Implementation of the Patent Law  requires that, parties involved beyond  the deadline 
set by  The Patent Law  or the Rules under discussion or the time limit designated by 
administrative departments of the State Council due to valid reasons, which lead to loss 
of rights, can apply for the recovery of rights to patent administrat ive department of the 
State Council within 2 months since receiving the notice from patent administrative 
department of the State Council.  
Pregunta 15:  El período de vigencia de las patentes en China es de 20 años contados desde la 
fecha de presentación de  la solicitud. Chile agradecería a China dar mayor información de si existe 
en China la posibilidad de solicitar una ampliación del plazo de vigencia de las patentes en algunos 
sectores, como el farmacéutico o agroquímico. Asimismo, si esta extensión estar ía sujeta a 
limitaciones y cuáles.  
Reply: China has no regulations about prolonging the period of patent protection.  
Párrafo 3.211: Las decisiones sobre las solicitudes de patentes pueden ser reexaminadas por la 
Junta de Reexamen de Patentes, integrada por  expertos técnicos y jurídicos nombrados por la 
SIPO y presidida por su Comisionado. Si la Junta considera que la decisión de la SIPO no se ajusta 
a las disposiciones de la Ley de Patentes, o de las normas y reglamentos que la acompañan, puede 
revocar la d ecisión y pedir a la SIPO que continúe el examen de la patente. En 2014, la Junta de 
Reexamen de Patentes aceptó 24.452 solicitudes de reexamen, 20.393 de las cuales se llevaron a 
término  
Pregunta 16:  Chile agradecería a China indicar el porcentaje de deci siones de la SIPO sobre 
patentes concedidas que son reexaminadas anualmente por la Junta de Reexamen. Asimismo, 
agradecería indicar en qué proporción las decisiones de SIPO son revertidas por la Junta y en qué 
proporción son validadas por la Junta. También , si existe algún recurso judicial frente a las 
decisiones de la Junta de Reexamen.  WT/TPR/M/3 42/Add.1  
 
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  Reply: In 2014, the Patent Re -examination Board accepted 24,452 applications for 
re-examination, of which 21,564 are re -examination applications  for invention patents, 
occupying 28% of the total applications. Clause 2, Article 41 of the Patent Law  states 
that, those refuse to accept the re -examination decisions by the Patent Re -examination 
Board can file lawsuits to the People 's Court within three months since receiving the  
notice.  
Párrafo 3.212 : Las solicitudes de patentes extranjeras o internacionales relativas a invenciones o 
modelos de utilidad en las que el contenido sustancial de la solución técnica se haya generado en 
territorio chino, o sea resultado de actividades d e investigación y desarrollo en el marco de 
proyectos nacionales importantes, son objeto de un proceso preliminar de aprobación en función 
del interés nacional. (200) Para que pueda presentarse una solicitud debe llevarse a cabo un 
examen de la confidencial idad. El contenido sustancial se define caso por caso. Las licencias de DPI 
obtenidas en el marco de proyectos nacionales importantes son objeto de algunas limitaciones, 
entre ellas, que las licencias no pueden ser exclusivas dentro del territorio de China  continental. La 
posible concesión de licencias o la transferencia de los derechos a extranjeros están sujetas a las 
disposiciones del Reglamento sobre la administración de la importación y exportación de 
tecnología, revisado en diciembre de 2010.   
Pregunt a 17:  En relación con las solicitudes extranjeras cuyo contenido sustancial ha sido hecho 
en China o resultado de I&D de proyectos nacionales de China. Chile agradecería a China dar 
mayor información respecto del proceso preliminar de aprobación, en partic ular, respecto de las 
bases para su procedencia así como del examen de confidencialidad y los límites establecidos al 
licenciamiento.   
Reply: Article 20 of The Patent Law  stipulates that, any unit or individual intending to 
file applications for invention patents or utility models completed in China  to foreign 
countries should report to patent administrative department of the State Council for 
security review in advance. The security review procedures before applying for patents 
to foreign countries shall c omply with Article 8 and 9 of  The Rules for Implementation of 
the Patent Law . 
Párrafo 3.213 : Se pueden conceder licencias obligatorias de patentes por razones de interés 
público o en caso de emergencia nacional o en situaciones extraordinarias. También pue de 
concederse una licencia obligatoria en caso de que el titular de la patente, sin justificación para 
ello, haya rechazado las solicitudes de autorización de la explotación de una patente en 
condiciones razonables o no haya explotado suficientemente los d erechos de patente durante tres 
años o utilice esos derechos de forma que suprima o restrinja la competencia mediante el abuso 
de los DPI protegidos por una patente. Se entiende que la explotación insuficiente de una patente 
significa que la explotación po r el titular de los derechos o de la licencia no satisface la demanda 
interna del producto patentado o los conocimientos patentados. También pueden concederse 
licencias obligatorias en determinadas circunstancias para productos farmacéuticos patentados en 
aplicación de la Decisión de la OMC sobre la aplicación del párrafo 6 de la Declaración de Doha 
relativa al Acuerdo sobre los ADPIC y la Salud Pública . 
Pregunta 18:  China puede conceder licencias obligatorias por razones de interés público, en caso 
de emer gencia nacional, en situaciones extraordinarias, negación de otorgar licencia en términos 
razonables o no haya explotado suficientemente los derechos de patentes durante tres años o 
utilice su derecho de forma que suprima o restrinja la competencia. Chile agradecería a China 
indicar qué circunstancias constituyen situaciones extraordinarias. Asimismo, cuántas solicitudes 
de licencias obligatorias han sido denegadas en los últimos 10 años?  
Reply: National emergency or extraordinary state of affairs mainly re fers to wars, riots 
and other emergency conditions jeopardizing national security, and natural disasters or 
prevalence of disease and other serious cases influencing social stability.  
China has not accepted any compulsory license request yet.  WT/TPR/M/3 42/Add.1  
 
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  Cuadro 3.26 Solicitudes y concesiones de derechos de propiedad intelectual, 2013 a 
2015  
Párrafo 3.216:  Durante el período objeto de examen, las solicitudes y las concesiones de 
patentes siguieron aumentando a un ritmo rápido. En 2015, fueron presentadas por ciudadanos  
chinos 968.251 solicitudes de patentes para invenciones, 1.119.714 solicitudes de patentes para 
modelos de utilidad y 551.481 solicitudes de patentes para dibujos y modelos industriales, frente a 
801.135, 861.053 y 548.428 solicitudes, respectivamente, en  2014. En 2015, el número de 
solicitudes presentadas por ciudadanos chinos en el marco del PCT alcanzó la cifra de 30,548, 
frente a 26.169 en 2014 (cuadro 3.26).   
Pregunta 19:  La calidad de las patentes es una cuestión fundamental de la cual varios países están 
tomando conciencia y estableciendo distintos mecanismos para mejorarla. Esta es una de las 
cuestiones identificadas por China en 2014. Chile agradecería a China señalar los indicadores para 
medir el impacto que han tenido las medidas implementadas pa ra mejorar la calidad de las 
patentes en lo que se refiere a la calidad del procedimiento, reforzamiento de la supervisión, 
intensificación del examen y mejora de la eficiencia . 
Reply: Setting "objective, fair, accurate, timely " requested in The Patent Law  as the 
work objective, the State Intellectual Property Office has always paid attention to 
continuously improving examination quality. Therewith, the SIPO has established 
quality assurance system, including office, department, bureau, and has officially s et up 
quality evaluation institution, which mainly evaluates from the two indicators of 
retrieval quality and settlement quality.  
Meanwhile, the State Intellectual Property Office has also established patent 
examination complaint platform to accept and han dle feedback opinions on the 
examination work from all sectors of society, and carried out satisfaction survey 
activities on patent examination quality every year to hear opinions and suggestions 
from the society and promote work improvement.  
Pregunta 20: Algunas provincias China's  han establecido sistemas de ayuda (subsidio) al 
patentamiento de invenciones de ciudadanos chinos en el exterior. Chile agradecería a China 
indicar a cuánto alcanza esa ayuda por región. Asimismo indicar si este sistema beneficia  tanto a 
universidades como empresas y cuántas empresas/personas han recibido este beneficio.  
Reply:  Currently , there is no any form of financial subsidies to encourage PCT application 
at the national level  in China , and there are no relevant subsidies  for Chinese citizens ' 
application for patent for invention abroad at the provinc ial level.  
Pregunta 21:  En el período 2009 -2013, el número de solicitudes de modelos de utilidad ha crecido 
en una proporción muy mayor en China en relación a la del resto de mund o, resultando que del 
total de solicitudes de modelos de utilidad que se presentan en el mundo, el 91% se presenta en 
China y el 99% de esas solicitudes pertenecen a solicitantes residentes en China. Chile agradecería 
a China dar a conocer su interpretació n respecto de las razones o causas que han producido dicho 
incremento exponencial de solicitudes de parte de residentes chinos.  
Reply: The sustainable growth of the application quantity of patent for utility models 
mainly attribute to the overall environme nt of China's national intellectual patent 
strategy and the design of patent for utility model itself. Compared with patent for 
invention, the application of patent for utility models is characterized with the features 
of rapid approval and relatively low cost, etc., which is always chosen by many 
enterprises, especially small and medium -sized enterprises to protect innovation 
achievements.  
3.3.7.2 Propiedad industrial  
3.3.7.2.2 Marcas de fábrica o de comercio  
Párrafo 3.225:  Se otorga protección a las marca s de fábrica o de comercio en el comercio 
electrónico a través de varias circulares u otro tipo de medidas. La Circular de la SAIC sobre los 
dictámenes relativos a la extensión de la observancia interprovincial al comercio de productos a WT/TPR/M/3 42/Add.1  
 
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  través de Internet  y sus servicios conexos (Gong Shang Shi Zi 2011/11), publicada el 27 de mayo 
de 2011, facilita el procedimiento para la realización de investigaciones interprovinciales relativas a 
infracciones de los DPI a través de Internet. Las Medidas relativas a la a dministración del comercio 
a través de Internet, modificadas recientemente y promulgadas por la SAIC en enero de 2014, 
hacen que el operador de una plataforma comercial en Internet sea responsable de las infracciones 
de las marcas de fábrica o de comercio y de los daños causados por el mal uso de la plataforma.   
Una interpretación judicial emitida por el Tribunal Supremo del Pueblo en relación con la 
responsabilidad de los intermediarios de Internet (Normas del Tribunal Supremo sobre varias 
cuestiones relat ivas a la aplicación de la ley en la resolución judicial de diferencias civiles  
relacionadas con la infracción del derecho de comunicación a través de las redes de información), 
con efectos a partir del 1º de enero de 2013, aclara algunas cuestiones en mat eria de aplicación 
de las leyes al especificar que aquellos que faciliten las infracciones en línea se considerarán 
responsables solidariamente de esa conducta.   
Pregunta 22: En relación con la determinación de infracciones marcarías en línea, Chile 
agrade cería a China dar mayores antecedentes respecto a que se entiende por operador de una 
plataforma comercial de internet, en particular, si los operadores de servicio de internet están 
comprendidos en dicha definición.  
Reply: The background information of In ternet service providers is enterprise data, and 
therefore, government departments cannot provide relevant information.  
Párrafo 3.229 : Las indicaciones geográficas de países extranjeros deben estar registradas en 
China para estar protegidas. Si el titular del derecho decide registrar su indicación geográfica en la 
TMO, el período de protección otorgado será igual al de otras marcas de fábrica o de comercio, es 
decir, 10 años, renovables indefinidamente por períodos sucesivos de 10 años. Tras el registro en 
el Ministerio de Agricultura o en la AQSIQ, las indicaciones geográficas quedan protegidas de modo 
permanente.   
Pregunta 23: Chile agradecería a China dar mayor información sobre si existen casos en que 
indicaciones geográficas extranjeras hayan sido recon ocidas en China en virtud de un acuerdo 
celebrado por el país y vice versa? En caso afirmativo, indicar  qué medios disponen los ciudadanos 
chinos para oponerse al registro o reconocimiento de indicaciones geográficas extranjeras 
reconocidas en virtud de un  tratado celebrado por China.  
Reply: Geographical indication s must apply for registration in Trademark Office to obtain 
trademark protection.  
IV. 
2 RÉGIMEN DE COMERCIO E INVERSIÓN  
2.1 Marco institucional y jurídico  
Párrafo 2.6:  "A fin de promover la transp arencia, los proyectos de ley y de reglamento se 
publican en línea durante 30 días para que el público pueda formular observaciones, salvo que el 
Consejo de Estado decida que se debe mantener su carácter confidencial, de conformidad con los 
artículos 37 y 67 de la Ley sobre la Legislación… " 
Pregunta 24:  Chile agradecería a China indicar cuáles son las causales para calificar la 
confidencialidad de un proyecto de ley o de reglamento, de conformidad con los artículos 37 y 67 
de la Ley sobre la Legislación, al udida en el párrafo 2.6.  
Reply: China places great importance on the work of legislative transparency and public 
participation. Legislation Law revised in March 2015 was added with the principle to 
stick to legislation publicity in general principles. Acco rding to the stipulation in 
Article  37 of Legislation Law, the bill of act that have been listed in the conference 
agenda of Standing Committee conference shall publish the legislative bill and 
instructions on drafting, revising and others to the society t o ask for opinions after the 
standing committee conference, but those decided by the Council of Chairman not to 
publish excluded. According to the stipulation in Paragraph 2, Article 67 of Legislation WT/TPR/M/3 42/Add.1  
 
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  Law, administration regulation draft shall be published  to the society and ask for 
opinions, but those decided by State Council not to publish excluded.  
Párrafo 2.8:  "Las decisiones administrativas pueden ser impugnadas en un plazo de seis meses 
por las personas que consideran que se han infringido sus derecho s legítimos. Por lo general, los 
recursos se presentan a un departamento de un nivel superior al que ha emitido la decisión… " 
Pregunta 25:  Chile agradecería a China indicar en qué casos o materias, los recursos para 
impugnar decisiones administrativas no s e presentan a un departamento de un nivel superior al 
que ha emitido la decisión.  
Reply: As stipulated by  Article 14 of Administrative Reconsideration Law of the People 's 
Republic of China, those refuse to accept  any disobedience for specific administrativ e 
acts by departments under State Council or  governments of province s, autonomous 
region s, direct -control municipalities shall apply for administrative reconsideration to 
departments under State Council or  governments of province s, autonomous region s, 
direct-control municipalities that make  such specific administrative acts.  
Pregunta 26:  En aquellos casos o materias en que los recursos no se presentan a un departamento 
de un nivel superior al que ha emitido la decisión, Chile agradecería a China indicar com o se 
resguarda la independencia e imparcialidad de la autoridad que decide.  
Reply: When departments under State Council or  governments of province s, autonomous 
region s, direct -control municipalities deal with reconsideration cases at the Council -
level , the institution in charge of legilative affairs shall specifically review the 
reconsideration case, and this institution shall be independent with the business 
institution undertaking the original specific administrative acts; meanwhile, 
Administrative Recon sideration Law and its enforcement regulations stipulates hearing 
of witnesses, paper inspection and other procedures that applicants participated in to 
ensure the fairness of administrative  reconsideration . 
2.3 Participación en la Organización Mundial del  Comercio  
Párrafo 2.19:  "En el período objeto de examen, China presentó a la OMC un gran número de 
notificaciones, en el marco de diversos Acuerdos, por ejemplo, sobre subvenciones, comercio de 
Estado y restricciones cuantitativas, esferas en las que China  tenía retraso (cuadro A2.1). Sin 
embargo, aún faltan notificaciones sobre la ayuda interna. Las modificaciones y actualizaciones de 
leyes y reglamentos ya aplicadas en diferentes esferas, y la creación de nuevos organismos (por 
ejemplo, en el ámbito de lo s procedimientos aduaneros, la inspección de las importaciones y 
exportaciones, la inocuidad de los alimentos, la contratación pública y la propiedad intelectual) 
también deben ser notificadas mediante una actualización o modificación de notificaciones 
anteriores a la OMC. " 
Pregunta 27:  Chile agradecería a China indicar si ha determinado una fecha o periodo estimado 
para la remisión de sus notificaciones pendientes, incluyendo aquellas relativas a ayuda interna.  
Reply: China pays high attention to and serio usly fulfils the notification requirement 
under WTO  Agreement. China has further enhanced work efforts since last deliberation, 
and has successively submitted Notification on Subsidies at Central Government Level 
for 2009 -2014 , Notification on Subsidies at  Sub-central Government Level for 2001 -
2014 , Notification on State Trading for 2003 -2014 , Notification on Quantitative 
Restrictions for 2010 -2014 , Notification on Domestic Support (Table DS:1 and the 
relevant Supporting Tables) for 2009 and 2010 , Notificat ion on Export Subsidy 
Commitments (Table ES:1) for 2013 and 2014 , Notification on Imports under Tariff 
Quotas (Table MA:2) for 2013 and 2014  as well as 135 TBT notifications and 401 SPS 
notifications and many other notifications. Meanwhile, notifications o n the 
transformation of China 's responsible organ of trade remedy measures, Non -Preferential 
Rules of Origin and other laws and regulations in relevant fields and the establishment 
of new institutions have been submitted to WTO, and the notifications submi tted by 
China during the deliberation period can be inquired on member websites . In the future, WT/TPR/M/3 42/Add.1  
 
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  China will continue to implement the notification requirement as required by WTO 
Agreement.  
As to Domestic Support Notification, China is preparing Domestic Sup port Notification after 2010, 
which will be provided after completion as soon as possible.  
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.5 Otras cargas que afectan a las importaciones  
Párrafo  3.21: "Varias mercancías importadas y de producción nacional también están sujetas al 
impuesto (especial) sobre el consumo, que grava a los siguientes productos: productos que 
representan un riesgo para la salud humana, el orden público y el medio ambient e; los bienes 
suntuarios; los productos que consumen mucha energía y los productos con un alto grado de 
elaboración; y los productos del petróleo no renovables y no reemplazables. Los tipos del impuesto 
siguen variando considerablemente de un producto a ot ro; pueden ser ad valorem , específicos o 
compuestos. Si se considera necesario se pueden modificar los tipos impositivos y la lista de los 
productos sujetos al impuesto (cuadro 3.4). " 
El citado cuadro 3.4, titulado: "Impuestos especiales (o sobre el consum o), 2013 -2015", bajo el 
ítem Bebidas alcohólicas y alcohol,  informa las siguientes tasas diferenciadas:  
Alcohol destilado de cereales, patata o uva (20% más 0,5 ¥ por 500 g (o por 500 ml); Vino 
amarillo de arroz (240 ¥ por tonelada); Cerveza de malta de v alor igual o superior a 370 $EE.UU. 
por tonelada (250 ¥ por tonelada); Cerveza de malta de valor inferior a 370 $EE.UU. por tonelada 
(220 ¥ por tonelada); y Otras bebidas alcohólicas fermentadas (10%); Alcohol etílico (5% -
suprimido el 1.12.2014).  
Pregunta  28: Chile agradecería a China indicar bajo cuales de los objetivos de política 
mencionados en el párrafo 3.21, se ampara para gravar las bebidas alcohólicas con el impuesto 
especial sobre el consumo .  
Reply: Consumption tax is a kind of indirect tax impos ed on special products and special 
consuming behavio urs, which sets totally 15 tax items at present, as cigarette, wine, 
cosmetics, precious accessories and gems, firecrackers and fireworks, refined oil 
product, motorcycle, car, balls and clubs of golf, lu xury watch, houseboat, wooden 
disposable chopsticks, solid wood floor, battery, painting and so on respectively. The 
problems influencing consumption tax submitted in Problem Single  may refer to two 
aspects as understood by us. One is whether products in a ccordance with these reasons 
shall all be brought into the scope of expropriation, while other products other than the 
special products listed in the tax items have not been brought into the scope of 
consumption tax expropriation, which are not influenced by the consumption tax, but we 
will timely adjust the scope of expropriation, tax rate of consumption tax in 
comprehensive consideration of national industrial policy, consumption level of 
residents. The other is whether the consumption tax will influence on products being 
brought into the scope of expropriation, and the objective to impose consumption tax is 
to regulate industrial policy, guide residents to moderately consume, regulate resident 's 
income distribution and so on, and consumption tax expropria tion will make the 
manufacture and sales of products comply to the developing direction of macroeconomic 
regulatory objectives further more. Meanwhile, similar products imported from abroad 
also adapt to the same consumption tax policy in order to maintain  fair market 
environment and tax policy.  
Pregunta 29: Chile agradecería a China indicar las razones que justifican la aplicación de tasas 
diferenciadas para gravar los distintos tipos de bebidas alcohólicas con el impuesto especial sobre 
el consumo.  
Reply : China has comprehensively considered the division of classification of different 
wine products according to the manufacturing technique, trade practice and other 
factors of wine products and has confirmed the tax rates of all kinds of wine products. 
Mode rate drinking is beneficial to physical health, which can enhance relationships WT/TPR/M/3 42/Add.1  
 
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  between parties, while excessive drinking may be quite harmful to physical health and 
family life, which will increase social medical cost, destroy family harmony and stability , 
and also cause drunken driving, fight and a series of other problems seriously harming 
social safety. Therefore, in order to better protect physical health, guide moderate 
consumption, wine products are brought into the scope of consumption tax 
expropria tion.  
Pregunta 30: Chile agradecería a China dar información de la producción nacional y consumo de 
bebidas alcohólicas, desagregada por tipo de bebida alcohólica.  
Reply:  
Output and Growth Rate of Wine Products  
Indicator  2015  Increase compared to the same  
period of the previous year （%） 
White wine (equivalent to 65 degree, amount of 
commodity) (million liter)  1,312.8  5.1 
Beer (million liter)  4,715.7  -5.1 
Vintage wine  (million liter)  114.8  -0.7 
Pregunta 31:  Chile agradecería a China indicar cuál es el im puesto sobre el valor agregado o 
añadido (IVA), el impuesto especial sobre el consumo y otros impuestos internos que gravan la 
producción, comercialización, importación y exportación de bebidas alcohólicas.  
Reply: The consumption tax of wine products is i mposed in the production linkage or 
import linkage, not imposed in the sales linkage and export linkage, and the specific 
standards of consumption tax imposed on wine products are divided into four kinds as 
stipulated: white wine, rice wine, beer and other  wines. As to the value -added tax, the 
manufacture, sales, export of alcoholic beverage implement the same policy as other 
commodities.  
3.1.6 Prohibiciones, restricciones y licencias de importación  
Párrafo 3.22:  "En China se mantienen prohibiciones, restri cciones y licencias no automáticas de 
importación por los siguientes motivos: seguridad nacional; moral pública; protección de la salud 
de las personas y los animales y preservación de los vegetales; protección del medio ambiente y 
de los recursos naturale s agotables; cumplimiento de las obligaciones contraídas por China en el 
marco de acuerdos internacionales; y balanza de pagos. China ha notificado que aplica un régimen 
de licencias de importación en el marco del cual existen tres tipos de licencias: lice ncias 
automáticas, licencias no automáticas y certificados de contingentes arancelarios. Según la última 
notificación de China, el régimen de licencias no ha cambiado sustancialmente desde el anterior 
examen, realizado en 2014. " 
Párrafo 3.24 : "China clasif ica las importaciones en tres categorías: no restringidas, restringidas y 
prohibidas… ". 
Párrafo 3.27 : Los productos prohibidos se enumeran en el Catálogo de productos sujetos a 
prohibiciones de importación, que publican el MOFCOM y otros ministerios y órga nos competentes, 
como la GAC y la AQSIQ, y que data de 2005. En la notificación presentada por China en 2015 
figuraban 365 productos (al nivel de 8 dígitos del SA), con inclusión principalmente de máquinas 
(capítulo 85) y material de transporte (capítulo 8 7). En lo que respecta a los desechos sólidos, los 
artículos prohibidos se enumeran en el Catálogo de importaciones prohibidas de desechos sólidos, 
modificado por última vez en 2015. " 
Párrafo 3.28 : "Además de las prohibiciones generales de importación incl uidas en el Catálogo de 
productos sujetos a prohibiciones de importación, se aplican otras prohibiciones a los productos 
importados en régimen de tráfico de perfeccionamiento, que se enumeran en el Catálogo de 
productos prohibidos en el marco del tráfico d e perfeccionamiento. En el Catálogo de 2014 
figuraban 486 líneas arancelarias (en la nomenclatura del SA 2012 al nivel de 8 dígitos), frente a 
394 en 2010. Este aumento del número de líneas afecta principalmente al capítulo 72 del SA 
(Fundición, hierro y a cero). Los demás productos sujetos a esas prohibiciones no han variado 
desde el anterior examen. " WT/TPR/M/3 42/Add.1  
 
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  Pregunta 32:  Chile agradecería a China indicar bajo qué objetivos de política mencionados en el 
párrafo 3.22, el país prohíbe las importaciones de la maquinar ia específica mencionada en 
párrafo  3.27 (incluidas en el Capítulo HS 85), material de transporte, mencionado en el mismo 
párrafo (incluido en el Capítulo HS 87), y productos de la fundición de hierro y acero (incluidos en 
el Capítulo HS 72).  
Reply: The pu rpose of China 's import prohibition for some products is to maintain 
national security and public morality; protect human, animal and plant health and 
protect the environment, which constitutes the embodiment of the exception in 
Article  20 of GATT. Therefo re, these measures are in conformity with the WTO rules.   
Pregunta 33: Chile agradecería a China indicar si produce los productos que se incluyen en las 
listas de productos con prohibición o restricción de importación, mencionados en los párrafos 3.27 
y 3.28, específicamente los productos de: maquinaria específica mencionada en párrafo 3.27 
(incluidas en el Capítulo HS 85), material de transporte, mencionado en el mismo párrafo (incluido 
en el Capítulo HS 87), y productos de la fundición de hierro y acero ( incluidos en el 
Capítulo  HS 72).  
Reply: Yes.  
Párrafo 3.29:  "La lista de importaciones sujetas a restricciones o prohibiciones puede modificarse 
cuando es necesario, y las autoridades competentes pueden restringir o prohibir temporalmente la 
importación de  mercancías no incluidas en un Catálogo. La legislación china también autoriza a las 
autoridades a, entre otras cosas, restringir las importaciones para favorecer el establecimiento de 
una rama de producción nacional específica o para acelerar su desarroll o. De conformidad con el 
artículo 16 de la Ley de Comercio Exterior, las importaciones de productos agrícolas, de origen 
animal y pesqueros también se pueden restringir cuando las circunstancias lo exijan. Según las 
autoridades, esta disposición no se ha a plicado nunca. " 
Pregunta 34:  Chile agradecería a China informar cuáles son los requisitos o condiciones en virtud 
de las cuales se ajustan las restricciones o prohibiciones a las importaciones de bienes, en el 
Catálogo de productos sujetos a prohibiciones de importación, y/o se incluyen nuevos bienes 
sujetos a prohibición o restricción . 
Reply: The policy measures on import ban, permission and export prohibitions, 
restriction, permission are all researched and formulated by relevant competent 
departments, an d Customs implements supervision according to laws, administrative 
regulations, provisions by State Council or provisions made by relevant departments 
under State Council according to the authorization by laws, administrative regulations, 
and relevant poli cies subject to the opinions filled in by competent departments.  
Pregunta 35:  Chile agradecería a China informar cómo se notifican al público general los ajustes o 
adiciones al Catálogo de productos sujetos a prohibiciones de importación y en qué plazo o 
momento posterior a su determinación.  
Reply: As is provided by the Protocol on the Accession of China, policies of the Ministry 
of Commerce that restrict the import of goods are published to the whole society in 
advance through channels such as government w ebsites.  
Pregunta 36:  Chile agradecería a China informar cual es la autoridad que verifica y supervisa que 
se cumplan los requisitos o condiciones en virtud de las cuales se ajustan las restricciones o 
prohibiciones a las importaciones de bienes, en el Cat álogo de productos sujetos a prohibiciones de 
importación, y/o se incluyen nuevos bienes sujetos a prohibición o restricción.  
Reply: The lists of products subject to import restrictions or prohibitions are adjusted by 
industrial authorities under the State  Council in coordination with the General 
Administration of Customs and the General Administration of Quality Supervision, 
Inspection and Quarantine. Local customs are responsible for implementing the import 
and export prohibitions.  WT/TPR/M/3 42/Add.1  
 
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  Pregunta 37:  Chile agra decería a China dar mayor información de si existe algún procedimiento 
para impugnar las modificaciones o adiciones al Catálogo de productos sujetos a prohibiciones de 
importación. En caso de ser afirmativa la respuesta, informar cual es este procedimiento . 
Reply: Please refer to Article 18 of the Foreign Trade Law: "The department in charge of 
foreign economic cooperation and trade under the State Council shall, together with 
other relevant departments under the State Council, draw up, revise and publish t he 
catalogues of goods and technologies whose import or export are restricted or banned in 
accordance with the provisions of Articles 16 and 17 of this law. The department in 
charge of foreign economic cooperation and trade under the State Council may, 
independently or together with other relevant departments under the State Council, take 
prompt decisions to restrict or ban the import or export of special goods or technologies 
not listed in the catalogue mentioned in the Articles 16 and 17 of this law. " 
Pregunta 38:  Si la respuesta a la pregunta anterior es afirmativa, Chile agradecería a China indicar 
quienes tienen la titularidad activa para impugnar en tales procedimientos.  
Reply: Please refer to Article 18 of the Foreign Trade Law: "The department in cha rge of 
foreign economic cooperation and trade under the State Council shall, together with 
other relevant departments under the State Council, draw up, revise and publish the 
catalogues of goods and technologies whose import or export are restricted or ban ned in 
accordance with the provisions of Articles 16 and 17 of this law. The department in 
charge of foreign economic cooperation and trade under the State Council may, 
independently or together with other relevant departments under the State Council, take  
prompt decisions to restrict or ban the import or export of special goods or technologies 
not listed in the catalogue mentioned in the Articles 16 and 17 of this law. " WT/TPR/M/3 42/Add.1  
 
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  9  CHINESE TAIPEI  
WT/TPR/S/342  
I. ECONOMIC ENVIRONMENT  
1.2 Fiscal policy and structural r eform  
Page 22  (paragraph 1.23)  
Measures were introduced to discourage production in areas where there is overcapacity. In 
accordance with the Circular of the State Council on Publishing the Catalogue of Investment 
Projects subject to Government Approval (2 014 Version) (Guo Fa [2014] No. 53) , projects in 
industries with excess capacity, such as the iron and steel, electrolytic aluminium, cement, plate 
glasses and vessels industries, are now subject to filing with local governments. The Circular 
further spec ifies that the above projects are strictly subject to the Guiding Opinions of the State 
Council on Resolving Overcapacity (Guo Fa [2013] No. 41) , under which local authorities and 
central departments are not allowed to approve any new capacity expanding p rojects in those 
areas.  
1. Could China please share with us the results of those measures implemented to curb the 
development of overcapacity by industries?  
Reply: The Chinese government attaches great importance to overcapacity.  In 2013, the 
State Council is sued the Guiding Opinions of the State Council on Resolving Serious 
Production Overcapacity Conflicts  (Guo Fa [2013] No. 41), which was geared to resolve 
the problem of  overcapacity in iron and steel  and other  industr ies. Over the last  
two years  and more , initial success  has been achieved due to the earnest 
implementation of the Opinions.  During  the 12th Five-Year Plan (2011 -2015)  period, 
China has a ccumulative ly resolved and eliminated backward production capacities of 
over 90  million tons in  crude steel,  230 million tons in  cement  and over 1 million tons in  
electrolytic aluminum.  
II. TRADE AND INVESTMENT REGIME  
2.2.2 Trade policy formulation and objectives  
Page 35 (paragraph 2.12) 
China's economic, trade, investment and development policies are outlined in  a number of legal 
instruments, including Central Government Five -Year Plans, sectoral and provincial Five -Year Plans 
and different Catalogues that provide guidance on the implementation of the overall policies, 
listing, inter alia, those products that are  subject to licences or export taxes; industries that can 
benefit from preferential treatment; and sectors in which investment is encouraged, permitted, or 
prohibited. China's main trade -policy objectives have not changed substantially since the last 
review in 2014; according to the authorities, China is prepared to continue liberalizing its trade 
and investment regime to reshape its economy. China considers that the multilateral trading 
system (MTS) plays a leading role in China's process of opening up, an d RTAs are viewed as a 
complement to the MTS.   
2. Volume 12 of China's  13th five -year plan encourages Taiwan -funded enterprises located 
around the Yangtze River Delta, Pearl River Delta, and the Bohai Bay to make use of their 
advantages, support their upgrade  and transformation, and guide their transfer to bases in the 
central and western areas. Could China please elaborate more specifically on the measures that 
support the upgrade and transformation of Taiwan -funded enterprises?  
3. Regarding the previous questi on, please explain in more detail the current situation.  
Reply: Taiwan -funded enterprises are very important in promoting the cross -strait 
economic and trade development. With the improvement of economy in China, driving 
the original industries to upgrade and transform has become a common problem that 
the local governments fac e. In recent years, China has actively supported the 
transformation and upgrading, as well as innovation and development of processing 
trade enterprises, including Taiwan -funded enterp rises. The Third Plenary Session of the 
18th CPC Central Committee put forward: "Seize the opportunity for global industrial WT/TPR/M/3 42/Add.1  
 
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  relocation, and promote coordinated development of inland trade, investment and 
technology innovation. In novate the mode of process ing trade, and form systems and 
mechanisms which are conducive to promoting the cluster development of inland 
industries. This further specifies the direction for transformation and upgrading. In 
recent years, the Ministry of Commerce and other relevant de partments jointly 
constructed the demonstration zone of transformation and upgrading of processing 
trade in the Pearl River Delta region, carried out pilots of transformation and upgrading 
of processing trade in Suzhou and Dongguan, and fostered and identi fied 58 model 
enterprises and 44 key undertaking places of graded shifting for processing trade, which 
achieved positive results.  
In the next step, we will continue to reinforce and improve the relevant policies and 
measures to create better conditions for  the investment as well as transformation and 
upgrading of foreign -funded enterprises, including Taiwan -funded enterprises.  
2.4 Regional Trade Agreements  
Page 37 ( paragraph 2.21)  
During the period under review, China signed FTAs with Australia and with the  Republic of Korea. 
The agreements with Iceland and Switzerland entered into force in 2015. As at December 2015, 
China had signed 15 preferential trade agreements. China is a member of the Asia -Pacific 
Economic Cooperation (APEC) forum (1991), and a signat ory to the Asia -Pacific Trade Agreement 
(APTA) (2001) and to the Association of Southeast Asian Nations (ASEAN) (2004).  
4. Could China please elaborate on its utilization ratio for all FTAs that China has signed? Which 
FTA has been implemented more effective ly than the others?   
Reply: Without internationally unified method for calculating the utilization ratio of FTA, 
China hasn't made any statistics in this aspect yet. Currently, China has signed 14 FTAs, 
which have been well implemented as a whole and promo ted trade and investment 
liberalization and facilitation between China and its partners in free trade.  
III. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.8.1 Standards and technical regulations  
Page  65 (paragraph 3.69) 
AQSIQ is China's TBT Enquiry Point and the body responsible for preparing, checking and 
submitting China's TBT notifications. In 2014 and 2015 China submitted 141 TBT notifications, 
most of them under Article 2.9. The majority of the technical regulations notified were applied to 
regulate the m arket and to protect human health, safety and the environment, and were related to 
chemical products, machinery, electronic equipment, and transport equipment.  During the review 
period, Members raised 11 specific trade concerns against China. Concerns were  raised regarding 
inter alia, the rationale, legitimacy and transparency of the applied measure. These measures 
applied to: cosmetics; drugs and medical devices; IT equipment; children's footwear; and new 
chemicals.  
5. According to China's  current regulations , foreign exporters should apply for three certificates to 
export cosmetics to China, which take a great deal of time to get approved. Please explain if any 
simplification measures have been implemented to streamline the application process.  
Reply: The aut horities will carry out revisions to cosmetic product regime in accordance 
with the level of scientific and technological development and the needs of industrial 
development.  
3.1.8.2 Product certification  
Page 66  (Para graphe s 3.75, 3.76)  
3.75. To obtain th e CCC mark, an application must be submitted to the authorized accredited 
certification bodies (ACB) designated by the CNCA, each of which is authorized to provide WT/TPR/M/3 42/Add.1  
 
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  certification for several products subject to the CCC. In the context of the present Review,  the 
authorities have indicated that there are 22 mandatory certification bodies.  
3.76. In 2014, the CNCA reformed the issuance and record -filing of CCCs and cancelled the annual 
examination requirement of the printing and mould pressing of CCC marks (Ann ouncement No. 36 
of 2014). Along with the reform of the compulsive product certification system, the CNCA adopted 
various measures to facilitate certification procedures for enterprises, shortening the time period of 
certification and easing the burden for  enterprises during the application process. In 2015, another 
10 certification bodies were designated to undertake CCC certification, and certification bodies and 
laboratories were designated on a unified basis so as to facilitate enterprises certification  and 
testing, and, in addition, the three categories of information technology, audio and video 
equipment, and telecommunication terminal equipment were integrated into one (electronic 
products). The authorities have noted that some certification bodies ar e already providing one -stop 
services.  In addition, designated certification and testing bodies have been encouraged to improve 
their "one -stop" service capacity to shorten the time period of the certification.  
6. Can foreign conformity assessment bodies (CAB ), such as testing laboratories and certification 
bodies, located inside/outside of China be authorized and designated by the CNCA to undertake 
testing and certification of products subject to the CCC?  
7. If so, how many foreign CABs have been authorized as A CBs, and which acts, regulations or 
guidelines stipulate the qualifications and application procedures for a foreign CAB to be 
authorized?  
6-7 Reply: Considering the assumption of legal responsibilities, certification bodies or 
laboratories that are design ated to undertake compuls ory product certification must be 
located within the territory of China. Laboratories located outside China can participate 
in the implementation of compul sory product certification system through international 
mutual recognition a nd cooperation between two or more parties, and their test data 
and results can be accepted or acknowledged according to the relevant cooperation 
agreements.  
3.3. Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 80  (paragraph 3.121)  
In 2015, C hina submitted a notification to the Committee on Subsidies and Countervailing 
Measures regarding its support programmes maintained at the Central Level covering the 
2009-2014 period. The notification contains 86 programmes, of which 30 had not been notifi ed to 
the WTO previously (Table 3.12)  
8. According to the programmes list (Table 3.12), there are subsidies for the promotion of 
energy -saving products and renewable energy -saving building materials. Please provide further 
information about these measures.  
9. Are these programmes applicable to foreign companies which are registered in China?  
Reply: Please refer to Program No. 73, 74 and 75 of the Notification on Subsidies at 
central government level for  2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, 
G/SCM/N/284/CH N). 
Page  81 (paragraph 3.125 ) 
According to the Recommendations on Developing the 13th Five -Year Plan, China will continue to 
encourage the development of Strategic Emerging Industries ( SEIs) through the design of 
appropriate industrial policies, which shou ld promote their competitiveness, and through the 
guidance of investment towards these emerging industries.  However details of the specific 
measures are as yet unknown.  
10. Could China elaborate about more specific measures that encourage the development of 
Strategic Emerging Industries ( SEIs) as stipulated in the 13th Five-Year Plan?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Measures that encourage the development of Strategic Emerging Industries 
(SEIs) include: Strengthen the research and development in such areas as aerospace 
and oceanography , information network, bioscience and nuclear technology; Enhance 
international cooperation in research and development, and strengthen the protection of 
intellectual property rights of emerging industries; Give full play to the industrial 
investment guide  fund of the emerging industries, based on enterprises and private 
capital, entrust a professional  team to operate management in a market -oriented way, 
and make equity investment in innovative enterprises, which are at the initial and 
middle stage of devel opment.  
Page 82 ( paragraph 3.128)  
China provides industry -specific support to firms that the central and provincial governments 
perceive as strategically important or to revitalize them, as called for by the National Old Industrial 
Base Adjustment and Reno vation Plan (2013 -2022) of the NDRC. However, according to the 
authorities, this Plan is intended to promote the development of old cities and as it is only a 
guiding opinion, it does not involve the provision of any kind of support. Nonetheless, the polic y of 
supporting specific industries seems to remain in place. For instance, the energy sector receives 
support to develop particular alternative energy sources (e.g. natural gas, wind power, solar 
power, geothermal power and nuclear power). To this end, in  2014, the State Council issued an 
Action Plan on the Energy Development Strategy (2014 -2020) to improve the policies regulating 
the energy sector, support scientific research in the field, promote the use of renewable energy, 
and encourage financial insti tutions to support projects related to the production and use of clean 
energy. In addition, in 2015, the Ministry of Finance (MOF) circulated the Interim Measures on the 
Administration of the Renewable Energy Development Special Fund, which aim at supporti ng the 
production and use of renewable energy and "new" energy. There are no details with respect to 
the types of energy to be supported or how the Fund will be managed.  
11. Are there local content requirements when companies apply for funding under the Renew able 
Energy Development Special Fund?  
12. Following the incentive concern addressed in the Secretariat Report, please further explain 
about the interconnections between the policy goals, action plans and specific measures.  
Reply: According to the Interim Meas ures for the Administration of Special Funds for 
Development of Renewable Energy  issued by the  Ministry of Finance (MOF)  in 2015 , 
China has not set local content requirements  for the application of the fund.  
Page 83 ( paragraph 3.129)  
In addition to the sup port granted to the energy industry, China continues to support, inter alia, 
SMEs, the "international economy and trade" and the purchase of household electric appliances in 
rural areas. According to the authorities the measures that were in place to suppo rt the production 
of aircrafts were removed in 2013.  
13. As for the Chinese government 's measures to support the international economy and trade, 
what is the situation concerning central and provincial financial authorities on subsidizing SMEs 
that participate  in overseas solar power plants, R&D and operations?  
Reply: Within the range of measures taken by the Chinese government to support the 
international economy and trade, China does  not provide any subsidy for SMEs to 
participate in the construction, resear ch and development as well as operations of solar 
power plants in foreign countries.  
3.3.2 Competition policy  
Page 85 ( paragraph 3.133)  
The State Administration for Industry and Commerce (SAIC), on the other hand, issued the 
Provisions on Prohibiting the A buse of Intellectual Property Rights to Preclude or Restrict 
Competition, SAIC Decree No. 74 of 7 April 2015. The Provisions, effective since 1 August 2015, WT/TPR/M/3 42/Add.1  
 
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  are geared to addressing the conflict between intellectual property (IP) protection and 
enforcement  of competition policy.  
14. How difficult has it been to implement the Provisions on Prohibiting the Abuse of Intellectual 
Property Rights to Preclude or Restrict Competition? Has the SAIC met any resistance from the 
business community?  
Reply: Through the onli ne interviews, symposiums and seminars, the State 
Administration for Industry and Commerce of the People's Republic of China  (SAIC) 
disseminates and introduces the Provisions on Prohibiting the Abuse of Intellectual 
Property Rights to Preclude or Restrict Competition , answers the questions concerned 
by all walks of life, actively helps the enterprises to understand the boundary in the 
reasonable exercise of IPR, and guide s the enterprises about compliance management, 
achieving fruitful results.  Many enterpr ises now attach more importance to the 
compliance of exercising IPR , have carried out internal training or seminars on the 
Provisions on Prohibiting the Abuse of Intellectual Property Rights to Preclude or 
Restrict Competition  issued by the SAIC, and consc iously adjust their operation 
behaviour.  
IV. TRADE POLICY BY SECTORS  
4.2.1 Telecommunications services  
Page  125 ( paragraph s 4.32, 4.34)  
4.32. The 2015 Investment Catalogue, which entered into force in April 2015, eliminated electronic 
commerce businesses r un by foreign -invested telecom companies from its restricted category. In 
addition, the Notice of Liberalization of Foreign Shareholding Ratio in Online Data Processing and 
Transaction Processing Business (operational electronic commerce) issued by the MII T in 
June 2015 eliminated the foreign shareholding ratio limit for online data processing and 
transaction processing businesses ("operational electronic commerce") nationwide, which can now 
be up to 100% . 
4.34. In the China (Shanghai) Pilot Free Trade Zone  (CSPFTZ), one activity, online data processing 
and transaction processing services for e -commerce ("operational electronic commerce"), was 
further liberalized as the maximum foreign shareholding participation allowed previously of 55% 
was raised to 100% i n January 2015.  
15. Does China have any plans to allow foreign suppliers to provide the above services on a cross -
border basis?   
Reply: According to the demands of the domestic market development, China is studying 
the policies for further opening the online i nformation and transaction processing of 
e-commerce.  
16. Does China have liberalization plans for other services sectors which are also carried out in the 
Pilot Free Trade Zone and then applied throughout China? If so, could China please elaborate on 
these pla ns and their implementation timeframes?  
Reply: The main task of the pilot Free Trade Zone is to test new initiatives of reform and 
opening up, including the further opening of the service sectors.  After a period of the 
pilot operation, and through assessme nt, the pilot proved to be effective will be 
replicated and promoted in a proper time.  The pilot programs have been carried out in 
some areas listed in the Catalogue of Industries for the Guidance of Foreign Investment 
(2015 Revision).   WT/TPR/M/3 42/Add.1  
 
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  4 TRADE POLICIES BY  SECTOR  
4.1 Agriculture  
4.1.3  Policy instruments  
4.1.3.2  Internal measures  
4.1.3.2.2  Price control and marketing  
Page 123 ( paragraph 4.24) 
A minimum procurement price scheme remains in place for rice and wheat in major producing 
areas. Minimum prices f or grains (i.e. rice and wheat) continue to be set by the NDRC on a yearly 
basis, in consultation with the Ministry of Agriculture and  other governmental institutions. The 
minimum price for rice and wheat increased during 2012 -2014, due to an increase in p roduction 
costs, but remained unchanged in 2015. The state -owned company Sinograin, purchases grains 
when the market price falls below the established support level. The minimum procurement price 
scheme for grains is linked to the volume of China's grain r eserves; the minimum -price system is  
in place to ensure a stable supply of grains. Grain reserves of maize, rice, soya beans and wheat 
are maintained by central and local authorities to ensure food security. According to the 
authorities, the purchase of th e reserves is  carried out by appointed enterprises at market prices 
or at the minimum procurement prices set by the Government.   
17. As a major grain producing nation, how does Chinese authority set the minimum procurement 
prices for rice and wheat? Does it in volve a specific calculation formula? And lastly, except being 
stored as national reserve, would these procured grains be resold or serve other purposes?  
Reply: Since 2004, the grain price has been  liberalized by the market in China. In order 
to protect fa rmers ' benefits and improve their motivation, China adopted the policy of 
minimum procurement prices for rice and wheat in main grain -producing areas 
since  2004 and 2006, with the leading role played by market mechanism as premise. In 
general, farmers sell  their food at the market price without any intervention from the 
government. Only when the market prices for rice and wheat in main grain -producing 
areas decrease sharply to the level below the minimum procurement prices, can farmers 
sell their grain to t he enterprises designated by the government to reduce the losses 
arising from the falling in grain price. The minimum procurement prices are identified 
with comprehensive considerations of production costs, market supply and demand, 
domestic and internatio nal market prices, and other factors. The minimum procurement 
prices are issued to the public to guide the planting before the sowing of the rice and 
wheat every year.  
WT/TPR/G/ 342 
III. TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
Page  15, paragra ph 3.1 
The opening up and reform of China have gone hand in hand and been mutually reinforcing. Since 
the last review, the Chinese government has been committed to building a new system of open 
economy and constantly improved the internationalized and conv enient business environment 
based on rule of law. Under the new circumstances of economic globalization, China has 
continuously promoted opening up domestically and to the outside world, better integrated FDI 
utilization and going global, facilitated the o rderly and free flow of international and domestic 
factors, highly efficient resource allocation and in -depth market integration, fostered new 
advantages in participating and leading in the international economic cooperation and competition 
at a faster pac e, and promoted reform through opening up.  
1. What is the status of progress on the draft Foreign Investment Law?  
Reply: In January 2015, the Foreign Investment Law of the People's Republic of China  
(Draft for Public Comments) was drafted by the mainland gove rnment and announced to 
the public for comments. The purpose of the Foreign Investment Law  is to create a more 
stable, transparent and predictable legal environment for foreign investment. In the 
next step, China  will promote the issuance of the Foreign In vestment Law  according to  
the domestic legislative procedure as soon as possible.  WT/TPR/M/3 42/Add.1  
 
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  3.2.2 Pushing forward transformation and upgrading of foreign trade  
Page 19 , paragraph 3.23 
Electronic commerce (e -commerce) has become a new highlight in international trade  and a new 
impetus for economic growth. The Chinese government has constantly improved the environment 
for the development of cross -border e -commerce. In 2015, the State Council successively released 
the Guiding Opinions concerning Vigorously Moving Forwar d the Internet Plus Actions and the 
Guiding Opinions on Promoting the Healthy and Rapid Development of Cross -border E -Commerce, 
putting forward the idea of promoting the transformation and upgrading of foreign trade through 
foreign trade via the Internet. In March 2015, the State Council approved the establishment of 
China (Hangzhou) Cross -border E -Commerce Comprehensive Pilot Area to accumulate replicable 
and transferable experiences for the development of cross -border e commerce through 
institutional inno vation, management innovation and service innovation. In January 2016, new 
cross-border e -commerce comprehensive pilot areas were established in 12 cities including 
Ningbo, Tianjin, Shanghai and Chongqing. Since the launch of pilots on cross border e -comme rce 
services in 2012, China Customs and other port management departments have also adopted a 
series of policy measures in support of the healthy, orderly and fast development of e -commerce.  
2. In addition to the newly established 13 cross -border e -commerce p ilot areas, including 
Hangzhou, China also established the cross -border e -commerce demonstration park in the CSPFTZ 
in Mar. 2016. Both have mentioned they will optimize the cross -border e -commerce supervision 
services system and provide measures that facil itate operation of e -commerce. Will there be a 
certain degree of competition or cooperation in the future?  
Reply: In 2015, the State Council successively released the Guiding Opinions Concerning 
Vigorously Moving Forward the Internet Plus Actions  and the Guiding Opinions on 
Promoting the Healthy and Rapid Development of Cross -border E -Commerce , putting 
forward the idea of promoting the transformation and upgrading of foreign trade with 
Internet -based foreign trade. In  March 2015, the State Council approved the 
establishment of China (Hangzhou) Cross -border E -Commerce Comprehensive Pilot Area 
to accumulate replicable and transferable experiences for the development of 
cross -border e -commerce through institutional innovation, management innovation and 
service innovation. We are convinced that, as the facilitation of the cross -border 
e-commerce and the implementation of opening policy, the cross -border e -commerce in 
China will maintain healthy, orderly and fast development with the promising future in 
market.  
3.4.2 Safeguarding the multilateral trading system with concrete actions  
Page 24 ( paragraph 3.52)  
China has also actively participated in other rule -making and market access negotiations within the 
WTO framework. With China's active participation, the negoti ations to expand the coverage of the 
Information Technology Agreement (ITA) concluded in December 2015. According to the WTO 
statistics, the negotiations involved over US$1.3 trillion worth of trade and will boost trade of IT 
products as well as global eco nomic growth.  
3. As we know , some parties have already begun to eliminate or reduce customs duties for 
products covered in the expansion of the ITA. Could China please give us a timeframe when the 
elimination or reduction of custom duties of such products will take effect?  
Reply: According to the relevant laws and regulations of China, after the review and 
approval of the Standing Committee of the NPC, the expansion negotiation schedule of 
the Information Technology Agreement (ITA) can be submitted to the WTO and taxes 
reduction can be implemented. At present, China has launched the domestic procedures 
of examination and approval and will carry out the results of negotiation as soon as 
possible once the procedure is completed.  WT/TPR/M/3 42/Add.1  
 
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  10  COLOMBIA  
WT/TPR/S/342  
3 POLÍTICAS  Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.6 Prohibiciones, restricciones y licencias de importación  
El párrafo 3.29 del informe de la Secretará indica que... “La lista de importaciones sujetas a 
restricciones o prohibiciones puede modificarse cuando es necesario, y las autoridades 
competentes pueden restringir o prohibir temporalmente la importación de mercancías no incluidas 
en un Catálogo. La legislación china también autoriza a las autoridades a , entre otras cosas, 
restringir las importaciones para favorecer el establecimiento de una rama de producción nacional 
específica o para acelerar su desarrollo. De conformidad con el artículo 16 de la Ley de Comercio 
Exterior, las importaciones de producto s agrícolas, de origen animal y pesqueros también se 
pueden restringir cuando las circunstancias lo exijan. Según las autoridades, esta disposición no se 
ha aplicado nunca.”  
1. ¿Qué criterio tienen, y cuáles son las causales para restringir las importacio nes? ¿Cómo 
determinan por cuánto tiempo restringen o prohíben una importación?. En el caso de las 
restricciones a las importaciones de productos agrícolas, de origen animal y pesqueros ¿Qué 
significa cuando las circunstancias lo exijan?  
Reply: China's  impo rt prohibitions on certain products are to safeguard the national 
security and public morals, protect the health of the mankind, animals and plants, and 
protect the environment. This represents the exceptions in Article 20 of GATT, and is in 
line with WTO rules.  
3.1.7 Medidas antidumping, compensatorias y de salvaguardia  
3.1.7.1 Medidas antidumping  
El párrafo 3.31 del informe de la Secretaría indica que… “Al igual que cuando se realizó el anterior 
examen, durante el período considerado el número de medida s antidumping aplicadas continuó 
disminuyendo. Las medidas siguieron concentradas en unas pocas categorías de productos, en 
particular productos químicos, a los que afectaba más del 60% del número total de medidas 
vigentes al 31 de diciembre de 2015. Aunqu e el número de medidas en vigor había disminuido con 
respecto al anterior examen, su duración media había aumentado (seis años y medio en promedio) 
frente a seis años cuando se realizó el anterior examen. A este respecto, las autoridades afirman 
que, norma lmente, las medidas antidumping que impone China se suprimen al cabo de diez años.”  
2. ¿Las medidas antidumping impuestas por China en promedio por cuánto tiempo se imponen la 
primera vez y por cuánto tiempo se imponen las prórrogas de las mismas medidas?  
Reply: In general, China's  initial anti -dumping measures have a valid period of 5 years. 
If the extension decision is made after review and investigation, then the measures will 
be applicable for another 5 years.  
El párrafo 3.32 del informe de la Secreta ría indica que… “Durante el período objeto de examen no 
se modificó el marco jurídico de China para las investigaciones antidumping y la aplicación de 
medidas antidumping. La Ley de Comercio Exterior, modificada, que entró en vigor el 1º de julio 
de 2004, junto con los reglamentos pertinentes (Reglamento Antidumping) y varias normas 
publicadas, algunas de las cuales son provisionales, constituyen la base para investigar los casos 
de dumping y aplicar medidas correctivas antidumping”  
3. ¿Cuáles son los camb ios establecidos en las normas que modifican la Ley de Comercio Exterior 
que entró en vigor el 1 de julio de 2004?  
Reply: After China's  entry into the WTO, in order to adapt to the new situation, China 
amended the Foreign Trade Law in 2004. With respects t o trade remedy, the amended 
law added Chapter Seven Foreign Trade Investigation, which stipulated investigation 
items, procedures and requirements. The amended law also added Chapter Eight Foreign WT/TPR/M/3 42/Add.1  
 
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  Trade Remedy. Articles relating to trade remedy in Chapter Five Foreign Trade Order of 
the original Foreign Trade Law were kept in the amended version with more detailed, 
scientific amendment and supplementary provisions that are in line with WTO 
agreements.  
Los párrafos 3.33 y 3.34 del informe de la Secretaría in dican “El MOFCOM es el organismo 
encargado de iniciar y realizar las investigaciones antidumping, así como de determinar la 
existencia de dumping, de daño y de la relación causal entre ambos. Recientemente se han 
realizado cambios internos en el MOFCOM con  respecto a las funciones asignadas a sus distintas 
oficinas. En abril de 2014 se estableció en el MOFCOM la Oficina de medidas comerciales 
correctivas e investigaciones, que asumió las funciones de la antigua Oficina de Comercio Leal de 
Importación y Expo rtación (BOFT) y de la Oficina de investigaciones sobre la existencia de daño a 
una rama de producción (IBII) en la esfera de las investigaciones sobre medidas comerciales 
correctivas. Actualmente se ocupa de las investigaciones y determinaciones en materi a de medidas 
antidumping, derechos compensatorios y salvaguardias, así como de otras medidas comerciales 
correctivas. En cambio, en lo que respecta a las investigaciones antidumping relacionadas con 
productos agropecuarios, la investigación sobre la existe ncia de daño la realizan conjuntamente el 
MOFCOM y el Ministerio de Agricultura. Las autoridades consideran que esos cambios mejorarán la 
eficiencia de las investigaciones sobre medidas comerciales correctivas, reducirán la carga de los 
procedimientos cont enciosos para las partes interesadas y racionalizarán los procedimientos de 
investigación, sin comprometer la independencia en la determinación del margen de dumping y de 
daño.”  
3.34. Las Normas provisionales del Ministerio de Comercio Exterior y Cooperac ión Económica sobre 
la iniciación de una investigación antidumping regulan la iniciación de las investigaciones 
antidumping. Esas investigaciones pueden iniciarse a petición de una parte interesada o por 
iniciativa del MOFCOM. Las solicitudes de iniciación  de una investigación antidumping en nombre 
de la rama de producción nacional de que se trate deben presentarlas por escrito al MOFCOM 
personas físicas o jurídicas, u organizaciones, que representen a esa rama de producción nacional.  
El MOFCOM debe decidi r, dentro de los 60 días siguientes a la fecha de recepción de la solicitud, si 
hay razones válidas para iniciar una investigación. Si decide hacerlo, se publica un Aviso público. 
La información que se considera no confidencial en relación con una investig ación se pone a 
disposición del público; si el MOFCOM decide tratar la información suministrada como confidencial, 
se pide a las partes interesadas que faciliten resúmenes no confidenciales, de conformidad con lo 
dispuesto en el artículo 22 de la Ley de Co mercio Exterior.”  
4. Además de las investigaciones por dumping, subvenciones y salvaguardias, que otra clase de 
medidas comerciales correctivas investiga el MOFCOM, cual es el procedimiento de investigación y 
cuál es la base legal para ello?  
Reply: In the  Foreign Trade Law of China, multiple remedial measures such as anti -
dumping, counter -vailing and protection are included in Chapter Eight.  
5. Las medidas provisionales y finales son impuestas solo por el MOFCOM o interviene en su 
aprobación o recomendaci ón algún comité y en ese caso como estaría constituido y que 
atribuciones tendría?  
Reply: According to the Foreign Trade Law of People's Republic of China  and the 
Regulations of the People's Republic of China on Anti -dumping, anti -doping 
investigations are  initiated by China's  Ministry of Commerce. The Customs Tarif f 
Commission does not involve in the registration of anti -dumping cases.  
El párrafo 3.35 del informe de la Secretaría indica que... “El MOFCOM debe formular una 
determinación preliminar de la ex istencia de dumping y de daño, y de si existe o no una relación 
causal entre ambos. Esa determinación preliminar debe publicarse. Si es positiva, la investigación 
continúa y pueden aplicarse medidas antidumping provisionales, aunque no antes de transcurrid os 
60 días desde la fecha de publicación de la decisión de iniciar la investigación. Las medidas 
provisionales adoptan por lo general la forma de derechos antidumping provisionales, pero 
también se puede solicitar la constitución de un depósito, una fianza  u otro tipo de garantía. La 
decisión de aplicar derechos antidumping provisionales la toma la Comisión Arancelaria del WT/TPR/M/3 42/Add.1  
 
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  Consejo de Estado (SCTC) por recomendación del MOFCOM, pero si se trata de medidas de otro 
tipo, como la constitución de un depósito o u na fianza, la decisión la toma directamente el 
MOFCOM. En principio, las medidas provisionales no se pueden aplicar durante más de cuatro 
meses; no obstante, el plazo puede prorrogarse hasta nueve meses cuando se considera que 
concurren "circunstancias esp eciales", que, según las autoridades, se refieren a aquellos casos en 
los que las autoridades investigadoras examinan si bastaría un derecho inferior al margen de 
dumping para eliminar el daño causado a la rama de producción nacional.”  
6. ¿La Comisión Ara ncelaria del Consejo de Estado (SCTC), que atribuciones y competencias tiene 
en la aplicación de medidas compensatorias y de salvaguardia?  
Reply: The Customs Tarif f Commission under the State Council makes decisions based on 
the suggestions of Ministry of Commerce, and takes due measur es according to the 
Regulations of the People's Republic of China on Import and Export Duties, the 
Regulations of the PRC on Anti -subsidy and the Regulations of the PRC on Safeguard 
Measures .  
7. ¿Es posible conocer los cargos  y las entidades a las que pertenecen los integrantes de la citada 
comisión?  
Reply: The Customs Tari ff Commission is an institution of deliberation and coordination 
under the State Council, the specific work is undertaken by the Ministry of Finance. 
Formi ng members of the Customs Tarif f Commission include the Ministry of Finance, the 
NDRC, Ministry of Commerce, MIIT, Ministry of Land and Resources, Ministry of 
Agriculture, General Administration of Customs, State Administration of Taxation, AQSIQ 
and the L egal Affairs Office of State Council.  
El párrafo 3.36 del informe de la Secretaría señala que... “Si el MOFCOM formula una 
determinación preliminar positiva de la existencia de daño causado por el dumping y de la relación 
causal, el exportador puede ofrece r compromisos relativos a los precios o el MOFCOM puede 
proponer dichos compromisos al exportador. Antes de poder aceptar un compromiso, el MOFCOM 
debe tener en cuenta si este daría lugar a la eliminación del daño determinado, así como la 
posibilidad de el usión. Si se acepta el compromiso relativo a los precios, el MOFCOM puede 
suspender o poner fin a la investigación antidumping”  
8. En que investigaciones por dumping aprobaron compromisos relativos a los precios y en qué 
condiciones los establecieron?  
Reply: According to the Regulation of People's Republic of China  on Anti -dumping and 
the Interim Rules on Price Undertaking for Anti -doping, the Ministry of Commerce will 
look at the following factors when deciding whether to accept a price undertaking:  
 (1) Whether the price undertaking can remove the damage caused by doping;  
 (2) Whether there are feasible measures of monitoring;  
 (3) Whether it 's in line with the public interest of People's Republic of China ; 
 (4) Whether there is the possibility to avoid t he doping;  
 (5) Other factors MOFCOM deems necessary to look into.  
MOFCOM only accepts the price -undertaking applications of exporters and producers 
that are fully cooperative during the investigation.  
9. En el caso de establecer derechos antidumping dife renciales dependiendo del exportador, la 
Autoridad tuvo información que el nombre del exportador del otro país coincide con el registrado 
en la base de datos de las autoridades chinas para el producto objeto de investigación?  
Reply: When an anti -dumping c ase is filed, the investigatory authority will grant 20 days 
to the exporter for registration, during which period the exporter shall submit such 
information as the exporter name and export volume to the authority. After the 
investigatory questionnaire is collected back, the investigatory authority will review the 
consi stency of the registered information of the exporter in his own country (region) 
and in China.  WT/TPR/M/3 42/Add.1  
 
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  En el párrafo 3.43 del informe de la Secretaría indica que... “El artículo 56 del Reglamento 
Antidumping permite la imposición de medidas de retorsión en los casos en que se considera que 
los productores chinos han sido tratados injustamente en investigaciones antidumping realizadas 
en el extranjero. Las autoridades han manifestado reiteradamente que  no se ha recurrido a esas 
disposiciones. Durante el anterior examen de China, los Miembros preguntaron si el artículo 56 
contradecía lo dispuesto en el artículo 17 del Acuerdo Antidumping, a lo que China respondió que 
no había ninguna relación directa ent re ambos y reafirmó que recurriría a las normas sobre 
solución de diferencias de la OMC antes de adoptar contramedidas”  
10. De acuerdo con lo establecido en el artículo 56 del Reglamento Antidumping de China, cuales 
son los criterios que tiene la Autorida d para considerar que los productores chinos han sido 
tratados injustamente en investigaciones antidumping realizadas en el extranjero. Adicionalmente, 
la Autoridad china impone medidas de retorsión sin que previamente hayan llevado el caso al 
Órgano de So lución de diferencias?  
Reply: According to Article 56 of the Regulations of People's Republic of China  on Anti -
dumping, where a country (region) discriminatorily imposes anti -dumping measures on 
the exports from the People's Republic of China, China may, o n the basis of the actual 
situations, take corresponding measures against that country (region). So far China has 
yet practiced such article in reality. Identifying the discriminatory nature of an 
anti-dumping measure requires an analysis based on that spe cific case.  
3.1.7.2 Medidas compensatorias  
El párrafo 3.50 del informe de la Secretaría señala que... “Las investigaciones en materia de 
derechos compensatorios están sujetas a procedimientos similares a los de las investigaciones 
antidumping, con pocas e xcepciones. La principal diferencia es que el Gobierno del país exportador 
participa en las investigaciones, ya sea mediante un proceso de consulta con el MOFCOM antes de 
que se inicie la investigación, o mediante la respuesta al cuestionario sobre derecho s 
compensatorios. Si se alcanza una solución mutuamente aceptable gracias a la consulta, el 
MOFCOM podrá decidir no iniciar una investigación. Otras diferencias son la ausencia de normas 
publicadas sobre la utilización del muestreo o la realización de exám enes intermedios o revisiones 
judiciales, y la falta de disposiciones que regulen el uso de compromisos relativos a los precios 
para resolver una investigación sobre derechos compensatorios”  
11. El Acuerdo sobre Subvenciones y Medidas Compensatorias estab lece en el artículo  23 que cada 
Miembro mantendrá tribunales o procedimientos judiciales, arbitrales o administrativos destinados 
entre otros fines a la pronta revisión de las medidas administrativas vinculadas a las 
determinaciones definitivas. ¿Podría ex plicar China en el caso de Subvenciones porqué se señala 
que no existen normas publicadas sobre revisión judicial, como se contempla en materia de 
antidumping?  
Reply: The Regulations of People's Republic of China  on Anti -subsidy stipulated 
procedures for judicial investigation. According to Article 52 of the Regulation, where 
anyone refuses to accept the final awards of subsidy, he may apply for administration 
reconsideration according to the law, or lodge a complaint to the people 's court 
according to law .  
El párrafo 3.51 del informe de la Secretaría indica que... “Los solicitantes deben facilitar al 
MOFCOM una descripción de la supuesta subvención, con información acerca de la existencia, 
naturaleza y cuantía de la subvención, así como una estimación de la subvención por unidad. Las 
audiencias destinadas a determinar la existencia de una subvención serán públicas, a menos que 
el MOFCOM decida lo contrario, generalmente en los casos en que pueden verse afectados 
secretos comerciales, secretos de Estado o l a intimidad de las personas”  
12. ¿Cuándo se presenta alguna información de carácter confidencial no se realiza la audiencia 
pública?  
Reply: According to MOFCOMs Interim Rules on Investigatory Hearing of Anti -subsidy, 
the subsidy awarding hearing should be  held in an open format. Should the case WT/TPR/M/3 42/Add.1  
 
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  involves national secret, business secret or individual privacy, the hearing can take 
other formats decided by the investigatory authority.  
El párrafo 3.52 del informe de la Secretaría indica que... “Desde las tres  investigaciones en 
materia de derechos compensatorios iniciadas en 2012 en relación con los automóviles de turismo 
y vehículos todo terreno (examen de nuevos exportadores) originarios de los Estados Unidos y el 
polisilicio de grado solar (SA 2804.61.90) o riginario de la UE y los Estados Unidos, solo se inició 
una investigación, (UE, vinos) en 2013, a la que se puso fin al retirarse la solicitud. En 2014 y 
2015 no se iniciaron investigaciones. En la investigación relativa al polisilicio de grado solar 
iniciada en 2012 se determinó la existencia de una subvención, un daño y una relación causal 
entre la subvención y el daño; en consecuencia, se impusieron derechos compensatorios en el 
caso de los Estados Unidos y un compromiso y derechos en el caso de la UE. E l 31 de diciembre de 
2015 se estaban aplicando cuatro medidas compensatorias que afectaban a importaciones 
procedentes de la UE y los Estados Unidos (cuadro 3.6). Dado que el MOFCOM no recibió una 
solicitud de examen por extinción, el 10 de abril de 2014 e xpiró una quinta medida relativa al 
acero magnético laminado plano de grano orientado procedente de los Estados Unidos.  (71) Al 
final de 2015, la medida compensatoria de más larga duración llevaba en vigor algo más de cinco 
años. A finales de agosto de 201 5, China inició un examen por extinción de la medida aplicada a 
los productos de pollo de engorde procedentes de los Estados Unidos.”  
13. ¿Por cuánto tiempo se impusieron las medidas compensatorias y se fueron prorrogadas, por 
cuánto tiempo?  
Reply: Accord ing to the Regulation of People's Republic of China  on Anti -subsidy, the 
duration of anti -subsidy tax and undertakings shall not exceed 5 years. But if a review 
deems that a termination of levying the anti -subsidy tax may lead to the continuity or 
reccurence of subsidy and damage, the levying duration for the anti -subsidy tax can be 
appropriately extended. Please refer to Table 3.6 of the Secretariat Report about the 
implementing time of various anti -subsidy measures, and the Awarding Notification of 
an ind ividual case will indicate the due time of the measure. But the implementing time 
and due time of the measure also hinges upon whether there is a terminal review of the 
measure and the investigation result of the terminal review.  
3.1.7.3 Salvaguardias  
El párrafo 3.58 del informe de la Secretaría señala que... “Las medidas de salvaguardia definitivas 
no se pueden mantener durante más de cuatro años, excepto cuando concurran circunstancias 
especiales. El período de aplicación de una medida de salvaguardia po drá prorrogarse si su 
continuación se considera necesaria para prevenir o reparar un daño grave, hay pruebas de que se 
ha iniciado un reajuste de la rama de producción afectada, y la medida de salvaguardia prorrogada 
no es más restrictiva que la inicial. E l período de aplicación de una medida de salvaguardia y toda 
prórroga de la misma no podrá exceder de 10 años. Si su duración excede de tres años, el 
MOFCOM deberá realizar un examen a mitad de período de esa medida. Cuando el período de 
aplicación de una medida de salvaguardia sea superior a un año, la medida aplicada se liberalizará 
progresivamente a intervalos regulares durante el período de aplicación. No existe un mecanismo 
de recurso contra las decisiones adoptadas por las autoridades”  
14. Con respec to a salvaguardias China menciona que no han iniciado ninguna investigación en el 
marco del Acuerdo de Salvaguardias de la OMC. Sin embargo, llama la atención que en menciona 
que en su procedimiento no existe un mecanismo de recurso frente a las decisiones  adoptadas por 
las autoridades. ¿Podría explicar China porqué en materia de salvaguardia no existe el recurso 
ante el MOFCOM como si se contempla en el párrafo 3.41 del TPR para las decisiones de medidas 
antidumping?  
Reply: On May 20, 2002, China launched a safeguard measure investigation against 
some imported steel products. The final award was released on November 19, 2002. On 
November  20, 2002, China started to take safeguard measures against 5 types of 
imported steel products. On December 26, 2003, the safeguard measures were 
terminated.  WT/TPR/M/3 42/Add.1  
 
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  The WTO Agreement on Safeguards does not have requirement with respect to the 
judicial investigation system of safeguard measures.  
3.2 Medidas que afectan directamente a las exportaciones  
3.2.1 Procedimientos y requis itos en materia de exportación  
El párrafo 3.94 del informe de la Secretaría indica que… “En el marco de la reforma del despacho 
de aduana clasificado, iniciada en 2009 y adoptada por todas las oficinas de aduanas para facilitar 
los procedimientos de expor tación, las empresas se clasificaron en grupos diferentes en función de 
un análisis del riesgo. (109) La inspección y supervisión aduaneras dependían de la calificación de 
la empresa. Los productos exportados por empresas calificadas como empresas de alto r iesgo eran 
sometidos a inspección, mientras que las demás exportaciones se despachaban por una vía rápida 
o mediante un "examen de exportaciones de bajo riesgo". En 2015 se modificó el sistema de 
clasificación de empresas, de modo que actualmente las empre sas se clasifican como sigue en 
función de su calificación crediticia: empresas autorizadas (antes, AA y A), empresas de integridad 
general (antes, categoría B), y empresas deshonestas. (111) La reforma del despacho de aduana 
sin documentación impresa, inic iada en 2012 como un programa piloto, se amplió al resto del país 
en 2014. Ahora, para el despacho de aduana, las empresas solo necesitan presentar los 
formularios de declaración y la documentación justificante en formato electrónico”  
15. En los párrafos 3.2 y 3.94. China señaló que realizaron una reforma del despacho de aduana 
sin documentación impresa desde el año 2014, en donde para el despacho de aduana, las 
empresas solo necesitan presentar los formularios de declaración y la documentación justificant e 
en formato electrónico. ¿Podría China compartir en cuanto se han disminuidos los tiempos en las 
operaciones de importación y exportación con la implementación de esta reforma?  
Reply: According to statistics, since the paperless customs clearance is prac ticed, the 
average national clearance time is shortened by more than 40% for imports and more 
than 60% for exports.  
3.3 Medidas que afectan a la producción y al comercio.  
3.3.1 Incentivos  
El párrafo 3.123 del informe de la Secretaría indica que… “Los pr ogramas enumerados en la 
notificación comprenden incentivos concedidos a empresas con inversión extranjera (sección 2); 
zonas económicas especiales; regiones menos desarrolladas; pequeñas y medianas empresas 
(pymes); sectores estratégicos (es decir, sector  energético e industrias emergentes estratégicas); 
y agricultura. La agricultura sigue recibiendo ayudas para garantizar los ingresos de los 
agricultores, proteger al sector, desarrollar las zonas rurales y garantizar la seguridad alimentaria 
(sección 4). Según las autoridades, China está "mejorando" su política de subvenciones agrícolas.”  
16. Las autoridades de la China manifiestan que están mejorando su política de subvenciones 
agrícolas. ¿Qué gestiones está adelantando para llevar a cabo esta mejora?  ¿Qué compromiso 
tienen para mejorar esa política?  
Reply: Since 2016, the Chinese government launched an agricultural reform nationwide 
featuring three subsidies,  combining the subsidy for superior crop varieties, direct 
subsidy to farmers and comprehensive a griculture subsidy into the agriculture support 
and protection subsidy. The policy target is adjusted to mainly support farmland fertility. 
The agr iculture support and protection subsidy takes green and eco -agriculture as its 
orientation and encourages to take multiple measures and innovative approaches to 
improve the comprehensive use of crop straw, guide farmers to return straw to 
farmland, engage in subsoiling and land preparation, reduce the use of fertilizers and 
pesticides and use more organic fertili zers so as to earnestly strengthen the protection 
of farmland and improve fertility.  
3.3.5.2 Empresas públicas  
3.184 Los párrafos 3.175, 3.184 y 3.187 del informe de la Secretaría indican que “En China sigue 
vigente un modelo económico básico en el que l a propiedad pública continúa siendo el pilar central 
de la economía, al tiempo que se permite la evolución paralela de diversas formas de propiedad. WT/TPR/M/3 42/Add.1  
 
- 153 - 
 
  Como resultado, el sector privado es predominante en industrias como las del vestido, los 
alimentos y el mo ntaje para la exportación, mientras que los sectores de importancia estratégica 
(por ejemplo, la energía; los servicios públicos; y los servicios de transporte, financieros, de 
telecomunicaciones, de enseñanza y de atención sanitaria) siguen solo parcialme nte abiertos a la 
inversión privada. Con frecuencia, esos sectores están dominados por grandes empresas públicas. 
Las autoridades han indicado que, si bien por razones históricas las empresas públicas siguen 
representando una importante cuota de mercado en  determinados sectores de la economía, el 
Gobierno está llevando a cabo la reforma de esas empresas para seguir desarrollando una 
economía de propiedad mixta en China, según lo dispuesto en las Orientaciones sobre la 
profundización de la reforma de las emp resas públicas. También han señalado que las empresas 
públicas se dividen en entidades lucrativas y entidades de servicio público, por lo que muchas 
empresas públicas funcionan como si fueran empresas privadas.  
3.184. Desde el anterior examen, China ha in troducido algunos cambios en su régimen legislativo 
y reglamentario de contratación pública. La Ley de Contratación Pública (Orden del Presidente de 
la República Popular China Nº 68, de 29 de junio de 2002, en vigor desde el 1º de enero de 2003) 
se modific ó el 31 de agosto de 2014 (con efecto a partir del 31 de octubre de 2014), y el 
Reglamento de aplicación de la Ley de Contratación Pública (Decreto del Consejo de Estado 
Nº 658, de 30 de enero de 2015) entró en vigor a comienzos de 2015. Además, en 2014 se  
introdujeron nuevos reglamentos tanto para las licitaciones competitivas como para las no 
competitivas. La legislación sobre contratación pública comprende también la Ley de Licitaciones 
de la República Popular China y su Reglamento de aplicación, por los  que se rige la contratación de 
proyectos de construcción y los bienes y servicios conexos cuando se utiliza el método de 
licitación. Entre las leyes con posibles efectos en la contratación pública figuran la Ley de 
Presupuesto, la Ley de Contratos, la Ley  sobre la calidad de los productos, la Ley de Precios y la 
Ley Antimonopolio.  
3.187. La Ley de Contratación Pública contiene una disposición sobre la compra de productos 
nacionales (artículo 10) a la que no afectó la modificación de 2014. Así pues, el Gob ierno debe 
contratar bienes, proyectos de construcción y servicios nacionales, con las excepciones siguientes: 
i) cuando los bienes, los proyectos de construcción y los servicios requeridos no están disponibles 
en China o, si lo están, no pueden adquirirse  en condiciones comerciales razonables; ii) cuando los 
bienes, los proyectos de construcción y los servicios se adquieren para su uso en el extranjero; o 
iii) cuando se dispone otra cosa en otras leyes y reglamentos administrativos. No se han 
establecido c riterios para determinar lo que son productos nacionales ni disposiciones sobre 
contenido nacional. En respuesta a las observaciones formuladas por los Miembros durante su 
anterior examen, China afirmó que, en la práctica, el Gobierno aplicaba un régimen d e 
contratación pública igual y no discriminatorio a los productos fabricados por empresas con 
financiación nacional y empresas con financiación extranjera dentro del territorio de China, y que 
era frecuente que el Gobierno adquiriese productos extranjeros,  aunque no se disponía de 
estadísticas a ese respecto. Además, el artículo 8 de la Orden del Ministerio de Hacienda Nº 18, de 
11 de agosto de 2004, establece que los proveedores que participen en concursos para suministrar 
bienes o servicios deben ser prov eedores nacionales que suministren bienes o servicios nacionales. 
Para adherirse al ACP, China tendría que modificar las prescripciones legales sobre utilización de 
fuentes de abastecimiento nacionales para contratos de valor superior a los umbrales previs tos en 
el ACP.”  
17. ¿Cómo podría asegurar/probar China que estas medidas no tienen o tendrían efectos 
discriminatorios a la luz del artículo III del GATT?  
Reply: Article 3.8 of the GATT stipulates that internal taxes and national treatment 
based on inter nal regu lations do not apply to government procurement. The national 
treatment for government procurement is stipulated in GPA.  
17.  ¿Cómo podría asegurar/probar China que estas medidas no configurarían subvenciones 
prohibidas del Art. 3 del ASMC al ser de  aquellas “…subvenciones supeditadas al empleo de 
productos nacionales con preferencia a los importados, como condición única o entre otras varias 
condiciones…”?  
Reply: Chinese government does  not provide import substitution subsidies to 
enterprises that a re prohibited by the Agreement on Subsidies and Countervailing 
Measures.  WT/TPR/M/3 42/Add.1  
 
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  11  COSTA RICA  
WT/TPR/S/ 342 
Page 81 , paragraph 3.128  
3.128. China provides industry -specific support to firms that the central and provincial 
governments perceive as strategically import ant or to revitalize them, as called for by the National 
Old Industrial Base Adjustment and Renovation Plan (2013 -2022) of the NDRC. (150) However, 
according to the authorities, this Plan is intended to promote the development of old cities and as 
it is onl y a guiding opinion, it does not involve the provision of any kind of support. Nonetheless, 
the policy of supporting specific industries seems to remain in place. For instance, the energy 
sector receives support to develop particular alternative energy sou rces (e.g. natural gas, wind 
power, solar power, geothermal power and nuclear power). To this end, in 2014, the State Council 
issue an Action Plan on the Energy Development Strategy (2014 -2020) to improve the policies 
regulating the energy sector, support scientific research in the field, promote the use of renewable 
energy, and encourage financial institutions to support projects related to the production and use 
of clean energy. (151) In addition, in 2015, the Ministry of Finance (MOF) circulated the Inter im 
Measures on the Administration of the Renewable Energy Development Special Fund, which aim at 
supporting the production and use of renewable energy and "new" energy. (152) There are no 
details with respect to the types of energy to be supported or how th e Fund will be managed. An 
additional Energy Saving and Emission Reduction Fund was established by the MOF in 2015 to 
provide incentives for the development of technologies that save energy and reduce 
emissions. (153) The CPC Recommendations on Developing t he 13th Five Year Plan also mention 
"new" energy" as one of the areas that will get government support with the aim of replacing 
traditional energy and improving the environment.  
1. Can China give further details on the approach they are giving to address renewable energy 
options? Can China please explain if there have been actions taken to address fossil fuel subsidies?  
Reply: In order to develop renewable energy, China introduced the first Renewable 
Energy Law in 2006 and amended it in 2009. The law set the priority of energy  
develop ment as  developing and utiliz ing such renewable energy as wind, solar and 
biomass energy. In addition to the Renewable Energy Law in 2006, the Chinese 
government formulated the Medium -and-Long -Term Development Plan for Renewab le 
Energy and the 11th, 12th Five Year Plan and the 13th Five Year Plan that is currently 
being drafted . All plans regard  renewable energy as the key area of energy 
development, and wind power, photovoltaic, all types of biomass energy, solar and 
thermal p ower have all been developing rapidly. The formulation of Renewable Energy 
Law and relevant development plans of different periods aim at further promoting the 
development and utilization of China's renewable energy, actively guiding the 
transformation of China's energy mix and the path for rapid development of its 
renewable energy so as to realize at an early date the targets China committed to the 
world that non -fossil fuels would account for 15% of China's energy mix by 2020, by 
2030 carbon dioxide emiss ion would reach its peak and non -fossil fuels would account 
for 20% of China's energy mix.  
 WT/TPR/M/3 42/Add.1  
 
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  12  COSTA RICA (ADD .) 
WT/TPR/ G/342  
Page 11 ( paragraph 2.4.1) Further promoting reform of the administrative examination 
and approval  
In March 2016, National Developmen t and Reform Commission and the Ministry of Commerce 
released the Draft Negative List for Market Access (to be used in pilot regions) which has been put 
into trial use in Tianjin, Shanghai, Fujian and Guangdong.  
1. Could you please provide us this Draft Ne gative List of Market Access that is being used in pilot 
in Tianjin, Shanghai, Fujian and Guangdong?  
Reply: The draft can be accessed at www.ndrc.gov.cn  , the official website of NDRC, with 
the document number Fa Gai Jing Ti [2016] No. 442.  
WT/TPR/S/342  
Page 53 ( paragraph 3.1.5) Other charges affecting imports  
VAT has two rates: 13% and 17%. The list of products subject to the 13% rate and those that are 
exempt from the VAT has not changed since the previous Review.  
2. Can China please provide more information about the products subject to a 17% VAT rate?  
Reply: Imported products are usually subject to a 17% VAT rate, while some, such as 
grains and edible vegetable oil are subject to a 13% rate. For detailed information , 
please refer to Report by the Secretariat.  
Page 123 ( paragraph 4.25) Support measures  
4.25. () Through the new mechanism, if the market price falls below the target price, the central 
government provides a subsidy to cotton farmers, the amount of which d epends on the land 
farmed (which is given a weight of 60% in the calculation of the subsidy) and the amount of cotton 
sold for processing in the domestic market (a weight of 40%). In 2015, the cotton subsidy was 
extended to nine other provinces. However, i t is not clear what form of subsidy applies in these 
provinces, it seems that a target price has also been established.  
3. Can China please provide more information about this subsidy?  
Reply: Since 2014, the Chinese government has undertaken the pilot refo rm of target 
price support in Xinjiang. At present, the pilot project enters into the third years 
operation, and has achieved positive results. On the one hand, the cotton price is 
determined by the market, and is closely connected with that of the interna tional 
market. On the other hand, the planting area and yield of cotton has decreased 
obviously, and the production is gradually concentrated in the advantageous areas like 
Xinjiang.  
Page 10 ( paragraph 15) Summary1015  
14. () In October 2015, the State Cou ncil issued an Opinion that calls for the creation of two 
negative lists, one for market access, to be applied to both domestic and foreign companies, and 
another for foreign investment. The use of these lists will be gradually implemented; it is not clear  
as yet how they will relate to the Investment Catalogue.  
4. It is not clear how these lists will relate to the investment catalogue that is currently used to 
guide investment. Could China provide more information about this topic?  WT/TPR/M/3 42/Add.1  
 
- 156 - 
 
  Reply: Market access neg ative list system refers to a series of institutional arrangement 
under which the State Council clearly identifies in a list the industries, sectors and 
business with prohibition and restrictions on investment and operation in them within 
the People's Repu blic of China , and governments at various levels take corresponding 
management measures as by. For the industries, sectors and business outside the 
market access negative list, various market entities have equal access to the market. 
The market access nega tive list is a management measure consistently applicable to 
investors at home and abroad, as well as the unified requirement for market access 
management of various market entities.  
The Special Administrative Measures for Access of Foreign Investment to Pilot Free Trade Zones 
(the Negative List) specified the special administrative measures for access of foreign investment 
that do not conform to national treatment and other principles. Currently, the Measures are only 
applicable to the four Pilot FTZs in Shanghai, Tianjin, Guangdong and Fujian. The sectors other 
than those specified in the Negative List will be managed in accordance with the principle of 
treating domestic and foreign investors equally within the FTZs.  
The Catalogue for the Guidance of Indu stries for Foreign Investment (the Investment Catalogue) is 
applicable to investments within the territory of China by overseas investors. Currently, foreign 
investors need to abide by China's  laws and regulations when investing in China, including the 
Investment Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management system for 
foreign investment.  WT/TPR/M/3 42/Add.1  
 
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  13  DOMINICAN REPUBLIC  
1. Párrafo 4.22. Pág 140  
4.22. Las au toridades han indicado que ninguno de esos programas fue objeto de reformas 
importantes durante el período objeto de examen; sin embargo, China está reestructurando su 
política general de subvenciones agrícolas. El objetivo de esa reforma es proteger la ti erra y 
alcanzar la seguridad alimentaria. En 2015 se aplicó un programa piloto de reforma de las 
subvenciones agrícolas en cinco provincias (Anhui, Shandong, Hunan, Sichuan y Zhejiang) 
(cuadro  4.6). La reforma consiste en agrupar tres programas de subvenci ones (las Subvenciones 
directas a los agricultores, la Subvención para fomentar las cepas y semillas de calidad superior, y 
la Subvención global a los insumos agrícolas) en uno solo, a saber, la Subvención para apoyar y 
preservar la agricultura, que tendrá  dos componentes separados y está encaminado a una 
utilización más eficiente de los fondos. Los fondos que anteriormente se asignaban por separado a 
los tres programas de subvenciones se destinarán al nuevo programa, cuya finalidad es proteger la 
calidad d e las tierras agrícolas y apoyar la producción según un modelo de explotación de escala 
media. La Subvención para la adquisición de maquinaria y herramientas agrícolas seguirá en vigor. 
Esa reforma parece ser compatible con el objetivo general de la políti ca agrícola de China de 
apoyar la mecanización y la explotación de escala media, y con la reforma en curso de los 
derechos contractuales de los agricultores sobre la tierra.  
Pregunta:  
¿Cuál es la duración de estas subvenciones agrícolas?  
Reply: Reply: Sin ce 2016, the Chinese government has extended to nationwide the scope 
of the reform on the three main agricultural subsidies namely, Subsidy for Promoting 
Superior Strains and Seeds, the Direct Subsidy to Farmers, and the Comprehensive 
Subsidy for Agricultu ral Inputs by combining them into one programme, the Agriculture 
Support and Preservation Subsidy, and adjusting the policy objective into mainly 
supporting the protection of the production capacity of the cultivated land.  The 
green -and-ecology -oriented Ag riculture Support and Preservation Subsidy will be mainly 
used for protecting the capacity of cultivated land. In light of the great environment and 
resource pressure faced by agricultural production in China, further improving 
agricultural policies and pr omoting agricultural sustainable development will become an 
important task. The timing for implementing agriculture subsidy has not been defined so 
far, and it would be defined based on the improvement of the overall reform for 
agricultural support policie s. 
2. Párrafo 15, Pág 11  
El programa piloto de reforma del régimen de inversión extranjera, iniciado en 2013 mediante el 
establecimiento de la Zona Franca Experimental (Shanghái) de China, se amplió en 2015 para 
abarcar otras tres zonas francas experimentales  en Guangdong, Fujian y Tianjin. El acceso de la 
IED a estas cuatro zonas se basa en una lista negativa. Los proyectos con inversión extranjera que 
no figuran en la lista negativa reciben trato nacional, ya que están exentos del requisito de 
examen y aprob ación, y solo están sujetos al registro. Las autoridades parecen tener el propósito 
de ampliar gradualmente a todas las inversiones el planteamiento de lista negativa. En octubre de 
2015, el Consejo de Estado emitió un Dictamen sobre la elaboración de dos listas negativas: una 
para el acceso a los mercados, aplicable tanto a las empresas nacionales como a las extranjeras, y 
otra para las inversiones extranjeras. Estas listas se irán poniendo en aplicación progresivamente; 
de momento no está claro qué relaci ón tendrán estas listas con el Catálogo de inversiones.  
Preguntas:  
a) ¿Podrían indicar exactamente cuáles son los sectores que se incluyen en esta lista?  
Reply:  According to the Opinions of the State Council on Implementing a Market Access 
Negative List System (Guo Fa [2015] No.  55), the market access negative list system 
refers to a series of system arrangement for the State Council to clearly list the 
industries, fields and businesses, whose investment and operation are prohibited and WT/TPR/M/3 42/Add.1  
 
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  limited within the  boarder of PRC. For those items off the negative list, all market 
participants are entitled to enter the market equally in accordance with law. For more 
details, please refer to: http://img.project.fdi.gov.cn//21/1800000121/File/201604/ 
201604131016095434628.pdf  
b) ¿Qué criterios se utilizan para incluir sectores en dicha lista y con qué periodicidad se actualiza 
la misma?  
Reply: According to the Opinions of  the State Council on Implementing a Market Access 
Negative List System (Guo Fa [2015]  No. 55), it is the laws, administrative laws and 
regulations, and decisions of the State Council that determine the contents of the list. 
For new items that have not bee n specified by laws, administrative laws and 
regulations, and decisions of the State Council, but should be included in the market 
access negative list, they should be considered during the formulation and amendments 
of laws, administrative laws and regula tions and the decisions of the State Council in 
accordance with legal procedures on the basis of scientific evaluation. For major issues 
related to national economic and social development and professional fields, it is 
necessary to follow the decision mak ing procedures including public participation, 
expert review, risk assessment, legal review and collective discussions.  
After adopting the market access negative list, appropriate adjustment should be made 
on the principle of streamlining administration an d delegating power, strengthening 
regulation and optimizing services according to the overall progress of reform, economic 
restructuring and revision of laws and regulations.  
Please refer to the Opinions of the State Council on Implementing a Market Access  
Negative List System (Guo Fa [2015] No.  55) for more information.  
3. Párrafo 3.6, Pág 53  
3.6. Además del régimen ordinario de importación, China tiene otros seis regímenes: importación 
de mercancías sin costo para sustituir productos dañados; importación de mercancías arrendadas; 
entrada temporal de mercancías; entrada de mercancías para su mantenimiento y reparación; 
importación de mercancías devueltas; e importación a zonas especiales bajo supervisión aduanera. 
Esos regímenes no han sido objeto de cambios i mportantes desde 2014. Las mercancías que 
entran en zonas bajo control aduanero, zonas de elaboración para la exportación y otras zonas 
especiales bajo supervisión aduanera (y que salen de ellas), así como los productos importados (y 
exportados) en el marc o del comercio fronterizo, están sujetos a diferentes procedimientos 
aduaneros que establece la GAC y a distintas prescripciones en materia de inspección y cuarentena 
que determina la AQSIQ en colaboración con la GAC.  
Preguntas:  
a) ¿Qué bienes están incluido s en este régimen?  
b) ¿A qué se considera un "producto dañado"?  
Reply: This question seems irrelevant to the text. It is not clear to us what information it 
needs, so we are unable to provide any answer.  WT/TPR/M/3 42/Add.1  
 
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  4. Párrafo 3.7, Pág 53  
3.7. China ha proseguido sus esfuer zos de armonización de los procedimientos aduaneros en sus 
42 zonas aduaneras. Sin embargo, siguen existiendo "zonas especiales bajo supervisión 
aduanera", que se rigen por diferentes reglamentos, a pesar de las orientaciones publicadas por el 
Consejo de E stado en 2012, en las que se pedía la unificación de las normas aplicadas en esas 
zonas. China también aplica diferentes procedimientos aduaneros en determinadas zonas, a veces 
con carácter experimental, para determinar su eficacia. Más recientemente, en 2 014, China 
empezó a promover la integración de las zonas aduaneras con el fin de armonizar los 
procedimientos de despacho. Según las autoridades, se ha llevado a cabo esa integración entre las 
42 zonas aduaneras para crear cinco grupos: en Beijing/Tianjin/ Hebei, las provincias del Río de las 
Perlas, y el Cinturón Económico del Río Yangtsé.  
Pregunta:  
Por favor indicar en qué plazos y/o etapas prevé el Consejo de Estado unificar estos 
procedimientos.  
Reply: According to the Custom Law, the General Administra tion of Customs (GAC) 
administrates all customs throughout the country in a unified manner. The legal basis of 
the customs procedures applied to each custom area and port are the Customs Law, the 
regulations issued by GAC and relevant normative documents, which are unified. 
According to the requirements of Guiding Opinions of the State Council on Promoting the 
Scientific Development in Special Customs Supervision Area (Guo Fa [2012] No.  58) and 
Notice of General Office of the State Council on Issuing the Sc heme of Accelerating the 
Integration and Optimization of Special Custom Supervision Zones (Guo Ban Fa [2015] 
No. 66), export processing zones, bonded logistics zones, cross -border industrial zones, 
bonded port zones and eligible bonded zones will be gradua lly integrated into 
comprehensive bonded zones. The new special customs supervision areas will be named 
as comprehensive bonded zone.  
5. Párrafo 3.123, Pág 91  
3.123. Los programas enumerados en la notificación comprenden incentivos concedidos a 
empresas con i nversión extranjera (sección 2); zonas económicas especiales; regiones menos 
desarrolladas; pequeñas y medianas empresas (pymes); sectores estratégicos (es decir, sector 
energético e industrias emergentes estratégicas); y agricultura. La agricultura sigue recibiendo 
ayudas para garantizar los ingresos de los agricultores, proteger al sector, desarrollar las zonas 
rurales y garantizar la seguridad alimentaria (sección 4). Según las autoridades, China está 
"mejorando" su política de subvenciones agrícolas.  
Preguntas:  
a) ¿Podría China indicar específicamente cuáles son las zonas económicas especiales o 
especialmente designadas?  
b) ¿Cualquier empresa puede gozar de este beneficio?  
c) ¿Cuáles son los requisitos que debe cumplir una empresa para acceder al mismo?  
Reply to questions a -c: The preferential policy of Special Economic Areas can be seen in 
Program No. 7 -10 of Notification on Subsidies at central government level for 2009 -2014 
(G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN). It should be noted 
that the sa id notified programs belong to transitional preferential policy for foreign -
invested enterprises after the implementation of the 2008 new Enterprise Income Tax 
Law. The policy will be invalid upon expiration of the transitional period. Thereafter, 
foreign -invested enterprises and domestic enterprises will enjoy the same policies on 
enterprise income taxes, with no preferential policies tailor -made for foreign -invested 
enterprises.  WT/TPR/M/3 42/Add.1  
 
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  14  DOMINICAN REPUBLIC  (ADD. 1) 
Preguntas:  
En el Párrafo 3.5 Pág. 53, se hace ref erencia a que en el año 2012 se inicio, sobre la base 
experimental, la aplicación del programa "Reforma del despacho de aduanas sin documentación 
impresa ".  
1. ¿Podrían explicarnos su experiencia en la aplicación del mismo?  
Reply: Paperless clearance is an  IT-based initialtive aiming to replace paper -based 
practice in which imports and exports are categorised based on risk ratings, and 
declaration forms and other documents as well as inspection and clearance are 
processed electronically.  
Several service ven ues have been selected for a pilot scheme since 1 August 2012, and 
this initiative has been extended to all service venues for all service fi elds following the 
release of the Announcement of General Administration of Customs Concerning the 
Relevant Matters  on the Advancement of Paperless Clearance Reforms (GAC 
Announcement (2014) No. 25). It has become a highly efficient customs clearance 
modality universally applied to compliant e nterprises.  
This initiative has enabled the vast number of import and export enterprise to declare 
their goods freely, without limitations of time or location, and has greatly saved their 
time to and from customs venues and also for waiting in line.  
El Párrafo 3.7 Pág. 53 indica que a pesar de los esfuerzos de armonización de los p rocedimientos 
aduaneros, aún siguen existiendo "zonas especiales de bajo supervisión aduanera ", que se rigen 
por diferentes reglamentos.  
2. ¿Podrían indicarnos cuales medidas se han tomado para lograr la armonización eficaz de los 
procedimientos aduaneros  en sus 42 zonas aduaneras?  
Reply: The consistency of enforcement activities is ensured through a range of 
regulations, rules and specific normative documents.  
Aranceles  
En la página 54, párrafos 3.11 y 3.12, se indica que los aranceles de la República Pop ular de China 
comprende los tipo NMF; los preferenciales especiales, que constituyen preferencias unilaterales 
aplicadas a las importaciones de países menos adelantados que tienen acuerdos comerciales con 
China; los aplicados dentro de contingentes arancel arios; y los generales, que son aplicados a 
productos cuyo origen no puede determinarse, a productos procedentes de países que no tiene 
acuerdos comerciales recíprocos con China, a países que no son miembros de la OMC, y a 
determinados territorios de la Un ión Europea.  
Adicionalmente, la Comisión Arancelaria del Consejo de Estado de China  aplica aranceles 
provisionales, que se imponen sobre las importaciones, por un periodo determinado (usualmente 
un año).1 Son utilizados como una medida antidumping, contra el comercio desleal, para prevenir 
daño a la industria doméstica mientras el asunto está bajo investigación y antes que una decisión 
final sea alcanzada.2 Se aplican en el régimen de nación más favorecida, pero sustituyen a los 
derechos NMF para las líneas  arancelarias afectadas.  
Pregunta:  
3. ¿En qué consiste la provisionalidad del arancel, su alcance, significado, y cuál es su aplicación?  
                                                
1 Diccionario de términos de Comercio, Sistema de Información sobre Comercio Exterior: 
http://www.sice.oas.org/dictionary/SF_s.asp   
2 Artículo 6 del Acuerdo sobre Salvaguardias, Información Técnica sobr e Salvaguardias: 
https://www.wto.org/spanish/tratop_s/safeg_s/safeg_info_s.htm#provisional   WT/TPR/M/3 42/Add.1  
 
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  Reply: The interim tariff rates are temporarily applied to some imported and exported 
goods according to the actual dem and of economic development. According to the Tariff 
Regulations, imported goods applicable to the MFN rates, agreement rates, special 
preferential rates, tariff -rate quota rates may be subject to interim rates within a certain 
period; exported goods appli cable to export tariff rates that are subject to the interim 
rates should apply the interim rates. Please refer to the table of interim tariff rates for 
imports and exports for the scope of interim rates at http://gss.mof.gov.cn/ 
zhengwuxinxi/zhengcefabu/201512/t20151209_1604527.html . WT/TPR/M/3 42/Add.1  
 
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  15  DOMINICAN REPUBLIC ( ADD.2)  
WT/TPR/S/342  
OTRAS PREGUNTAS ADICIONALES FORMULADAS POR REPBLICA DOMINICANA  
1.3.4 Perspectivas (página 3 4) 
1.48. Las autoridades seguirán aplicando una estrategia de reequilibrio para promover un 
crecimiento más basado en la demanda interna, en particular en el consumo privado, que, según 
sus previsiones, desempeñará una importante función como motor del cre cimiento económico. En 
lo que respecta a la oferta, las autoridades han manifestado su intención de reducir la capacidad 
de producción excesiva y las existencias. Consideran que, ahora que China ha iniciado una "nueva 
normalidad", los motores del crecimien to se han diversificado más. Asimismo, han señalado que se 
harán esfuerzos constantes para promover la nueva industrialización, el desarrollo orientado a la 
información, y la modernización urbana y agrícola. Según sus previsiones, la profunda reforma 
estructural y la continuación de la política de apertura de la economía y la promoción de la 
innovación permitirán a China alcanzar tasas de crecimiento anual del 6,5% al 7%, 
aproximadamente.  
1.49. Las autoridades son conscientes de que sigue habiendo riesgos p ara el crecimiento y el 
desarrollo futuros, entre ellos, los niveles crecientes de la deuda global, el aumento de los costos 
de producción, la insuficiente financiación para las pequeñas empresas y las microempresas, el 
exceso de oferta en algunos sectores  y la escasez en otros, y los estrangulamientos estructurales. 
Para gestionar los riesgos y lograr un crecimiento estable a medio plazo, las autoridades han 
establecido una hoja de ruta que comprende las medidas siguientes: a) seguir aplicando una 
política  fiscal proactiva y una política monetaria racional; b) utilizar una reglamentación con fines 
específicos; c) mejorar los mecanismos de financiación de la deuda pública local; d) seguir 
aplicando reducciones fiscales estructurales y suprimiendo tasas; e) a plicar políticas fiscales 
preferenciales para las pequeñas empresas y las microempresas; f) aumentar el apoyo financiero a 
la economía real, especialmente mediante el incremento de las ayudas crediticias a los sectores 
fundamentales y débiles de la economí a; g) optimizar la estructura del crédito; y h) promover 
precios y tipos de cambio más basados en los mercados.  
Preguntas:  
1. ¿Cuáles esfuerzos se están realizando para impulsar el desarrollo orientado a la información?  
Reply: The Chinese government has attached great importance to the development of 
informationization. In recent years, especially since the 18th National Congress of the 
Communist Party of China, a leading group for network security and informatization was 
established, and a series of majo r policy decisions to implement the cyber -power 
strategy, national big data strategy and Internet Plus action plan were made. First, 
promote the leap=forward development of the construction of information 
infrastructure. At present, the Internet penetratio n in China has reached 50.3%, and the 
scale of Internet users and broadband users ranks the first in the world. Second, 
establish an information industry ecological system, achieve breakthroughs on core 
technologies in key fields such as integrated circuit s, super computers and LCD panels of 
advanced generation, and a bunch of world -class net -credit enterprises have been 
founded. Thirdly, nurture network economy and information consumption has increased 
substantially. In 2015, the volume of e -commerce trans actions reached 
RMB 21.79  trillion and cross -border e -commerce has developed vigorously. Fourthly, 
deepen the application of e -government. A complete and unified national e -government 
network and fundamental information resources sharing system have been e stablished. 
E-government services have been constantly extended to governments at grassroot 
level. The levels of transparency of government affairs, networking and government to 
people interactions have been remarkably improved. Fifthly, continuously scale  up the 
level social informationization. The level of informationized application in fields such as 
medical treatment, education, population development and social security has been 
significantly enhanced. Sixthly, to continuously deepen international comm unication and 
collaboration on cyberspace. A series of international conferences like World Internet WT/TPR/M/3 42/Add.1  
 
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  Conference, US -China Internet Industry Forum and  China -UK Internet Roundtable have 
been successfully held.  
2. ¿Cómo se está promoviendo la innovación en C hina?  
Reply: The measures adopted by China to promote innovations include: First, to enhance 
the original innovation capacity, constantly strengthen fundamental researches, build 
stable and supportive scientific research bases, and accelerate the cultivati on of 
innovative personnel; Second, to encourage popular entrepreneurship and innovation, 
comprehensively upgrade the development level of science and technology service 
industry and establish an innovative undertaking incubating system which serves the 
real economy; Thirdly, to deepen the reform of scientific and technological systems in an 
all-round way, establish an effective R&D organizational system, perfect the transferring 
and transformation mechanism of scientific and technological achievements; Fou rthly, to 
reinforce international cooperation in science and technology and comprehensively 
integrate into the global innovation network; Fifthly, to strengthen the popularization of 
science and the cultivation of innovative culture, comprehensively improv e public 
scientific literacy, promote scientific spirit and innovative culture, and create a social 
and cultural atmosphere which inspires innovation.  
3. ¿Existe alguna ley o programa para la promoción de la innovación?  
Reply: Laws on promoting innovation s in China includes Law of the People's Republic of 
China  on the Progress of Science and Technology, Law of the People's Republic of China  
on Promoting the Transformation of Scientific and Technological Achievements, Law of 
the People's Republic of China  on Popularizing Science and Technology, Patent Law of 
the People's Republic of China , Contract Law of the People's Republic of China  
(Chapter  18 Technology Contracts), etc.  
4. ¿En qué consisten sus políticas fiscales preferenciales para las pequeñas empresa s y las 
microempresas?  
Reply : In terms of VAT, China classifies VAT taxpayers into general taxpayers and small -
scale taxpayers. Since 1 August 2013, VAT has been exempted for small -scale taxpayers 
with monthly sales of no more than RMB 20,000.  
In terms of  business tax, since 1 August 2013, business tax has been exempted for 
enterprises or non -enterprise entities with monthly turnover of no more than 
RMB 20,000.  
The application scope of the above policies of VAT and business tax exemption was 
widened to VAT  and business tax taxpayers with monthly sales or turnover less than 
RMB 30,000 for the period from 1 October 2014 to 31 December 2015, and later further 
extended to 31 December 2017. On 1 May 2016, after the pilot program on levying VAT 
in lieu of busines s tax was comprehensively launched, the preferential business tax 
policy for small and micro enterprises has been transferred to VAT. Small -scale 
taxpayers in the pilot program on levying VAT in lieu of business tax can enjoy the 
preferential VAT policy in  accordance with the regulations.  
In terms of corporate income tax, China identifies the enterprises among corporate 
income tax taxpayers that conform to certain conditions as small and low -profit 
enterprises. From 1  January  2015 to 31 December 2017, for small and low -profit 
enterprises with an annual taxable income not exceeding RMB 200,000, only 50% of 
their taxable income are subject to corporate income tax, and at a rate of 20%. This was 
further extended to small and low -profit enterprises with an annu al taxable income over 
RMB 200,000 but not exceeding RMB 300,000 from 1  October  2015 to 
31 December  2017. From 1 November 2011 to 31 December 2017, small and micro 
enterprises are exempted from the stamp tax on loan contracts that they sign with 
financial institutions.   WT/TPR/M/3 42/Add.1  
 
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  3.2.5 Financiación, seguro y garantías de las exportaciones (página 88)  
3.112. El Banco EXIM de China tiene el mandato de prestar apoyo para la importación y 
exportación de bienes de equipo y servicios. También financia las exportaciones en ámbitos en los 
que es difícil que entre capital social y comercial, así como proyectos de construcción e inversiones 
en el extranjero de empresas chinas. El Banco EXIM concede créditos a la exportación para el 
comprador y para el vendedor. Los créditos a l a exportación para el comprador consisten en 
préstamos concedidos en yuan o divisas a prestatarios extranjeros, mientras que los créditos a la 
exportación para el vendedor consisten en préstamos en yuan o divisas otorgados a empresas 
nacionales que exporta n embarcaciones, equipo, productos electromecánicos, productos agrícolas, 
productos culturales y servicios. Las autoridades han indicado que los préstamos se conceden a 
tipos de interés comerciales. El Banco EXIM también dispone de líneas especiales de cré dito y 
diferentes instrumentos financieros para las pymes. El Banco mantiene dos instrumentos 
preferenciales destinados a la ayuda oficial para el desarrollo que presta el Gobierno de China a los 
países en desarrollo y que consisten en préstamos del Estado  en condiciones de favor y créditos 
preferenciales a la exportación para el comprador. El Banco EXIM es el único banco designado por 
el Gobierno de China para ofrecer esas modalidades de financiación.  
Preguntas:  
5. ¿Cuáles instrumentos financieros tiene e l Banco EXIM especialmente dirigidos para el apoyo a 
las pymes?  
Reply: The Exim Bank of China provides financial services including loan and 
international settlement to small and medium -sized enterprises.  WT/TPR/M/3 42/Add.1  
 
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  16  ECUADOR  
Informe de la Secretaria de la OMC  
1. De conformidad con la página 40, párrafo 2.23:  
"China sigue otorgando preferencias unilaterales a los PMA. El 1o de enero de 2015, otorgaba 
preferencias arancelarias unilaterales a 40 PMA. Esas preferencias varían entre los beneficiarios: 
24 PMA gozaban de tra to libre de derechos respecto al 97% de sus líneas arancelarias; 14 PMA 
respecto al 95% de sus líneas arancelarias; y los dos PMA restantes, respecto al 62% de sus líneas 
arancelarias. En diciembre de 2015, 33 PMA gozaban del régimen de franquicia arancela ria 
respecto al 97% de las líneas arancelarias ". 
¿Podría informarnos China por qué existe una variación sobre los porcentajes de preferencias 
arancelarias entre sus beneficiarios PMAs y si se encuentra aplicando la Decisión de la Conferencia 
Ministerial de  Nairobi respecto de las Normas de Origen Preferenciales para los Países Menos 
Adelantados?  
Reply: China has applied zero -tariff to least developed country (LDC) members in 
roughly three phases. The first phase began from 1 July 2010, in which China applie d 
zero-tariff to 60% of the tariff lines of 33 LDCs that had exchanged notes with China. 
Since 1 January 2012, the number of LDCs eligible for this treatment has increased 
to 37. The second phase began from 1 July 2013, in which China applied zero -tariff t o 
95% of the tariff lines of 30 LDCs that had exchanged notes with China. Since 
1 January  2014, the number of LDCs eligible for this treatment has increased to 35. The 
third phase began from 1 January 2015, in which China applied zero -tariff to 97% of the 
tariff lines of LDCs that had exchanged notes with China. At present, China has applied 
zero-tariff to 97% of the tariff lines of 33 LDCs that have established diplomatic ties and 
completed the exchanges of notes with China. In the future, China will gradu ally extend 
the scope of the aforesaid treatment to cover other LDCs that have established 
diplomatic ties with China depending on the performance of bilateral notes exchanging. 
The widened application of zero -tariff special preferential tariff rates for t ariff lines from 
60% to 95% and from 95% to 97% both requires resigning of exchanges of notes. 
Therefore, the application of special preferential tariff rates at different percentage to 
LDCs having diplomatic ties with China depends on the percentage set o ut in their 
signed exchanges of notes with China.  
As for preferential rules of origin for LDCs, a decision by ministers at the meeting held in 
Nairobi requires that all members notify the latest implementation before 
31 December  2016, and China will provid e related notification in a timely manner.   
2. De conformidad a las páginas 43 y 44, párrafo 2.30, respecto del Dictamen para la elaboración 
de una lista negativa para el acceso a los mercados. Entendiendo el concepto de una lista 
negativa, con el objetivo  de comprender el concepto de la medida, ¿podría informarnos China si la 
lista busca limitar –quizás - el acceso al mercado para determinados bienes? ¿Cómo esa lista se 
relacionaría con los compromisos de China en la OMC?  
Reply: The Market Access Negative L ist clearly lists the industries, areas and businesses 
with prohibition or restriction on investment and operation in them within the territory 
of the People's Republic of China, and it does not involve the market access for goods.  
3. De conformidad con l a página 52 párrafo 3.4, en referencia a la reforma para el despacho de 
aduana clasificado. Según el párrafo mencionado, la clasificación de las empresas depende, 
principalmente de su calificación crediticia. También se menciona que: "El despacho de aduana  
sigue dependiendo de la clasificación de la empresa y de otros cuatro aspectos: control interno, 
situación financiera, cumplimiento de las normas, y seguridad del comercio". Sobre la base de lo 
expuesto, cómo se relacionan las variables expuestas con la c alificación crediticia si en el mismo 
párrafo se expresa que: "Las empresas pueden cambiar de categoría en función de su calificación 
crediticia".  WT/TPR/M/3 42/Add.1  
 
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  Conociendo las limitaciones que pueden enfrentar las PYMES en la mayoría de países en desarrollo 
¿Podría info rmarnos China qué medidas ha tomado para asegurarse que esas empresas puedan 
acceder a una clasificación crediticia que les ayude a obtener un despacho de aduana simplificado?  
Reply: On 1 December 2014, China Customs implemented the Interim Measures of the  
Customs of the People's Republic of China  for the Administration of Enterprise Credit  in 
lieu of  Measures of the Customs of the People's Republic of China for the Classified 
Management of Enterprises . Centering on four aspects - internal control, financia l 
status, compliance with rules and trade security, the Customs assess enterprise credit 
standing, and identify them as the authorized enterprises, enterprises of general 
integrity and dishonest enterprises. Corresponding management measures apply under 
the principle of giving facilities to enterprises of integrity and compliance with law while 
punishment to dishonest enterprises that break the law, with more simplified customs 
clearance facilitation applied to the authorized enterprises with better rating.  
The authorized enterprises are Authorized Economic Operators (AEOs), including senior 
and ordinary authorized enterprises. According to stipulations, the enterprises formerly 
subject to Category AA management are reclassified as senior authorized enterpri ses 
since 1  December  2014; the enterprises formerly subject to Category A management are 
reclassified as ordinary authorized enterprises; the enterprises formerly subject to 
Category B management are reclassified as enterprises of general integrity; the 
enterprises formerly subject to Category C and D management will be re -identified by 
the Customs.  
Dynamic regulation will be implemented by the Customs for results of enterprise credit 
rating. Senior authorized enterprises shall be re -certified once every t hree years, and 
ordinary authorized enterprises shall be re -certified on an irregular basis. The 
authorized enterprises which fail to pass recertification and are therefore subject to 
management of enterprises of general integrity shall not apply for recla ssification as an 
authorized enterprise within one year; senior authorized enterprises which fail to pass 
recertification but comply with the standard for ordinary authorized enterprises are 
subject to management of ordinary authorized enterprises. The Cus toms shall reclassify 
a dishonest enterprise as an enterprise of general integrity after one year if it meets 
requirements related to credit management. Dishonest enterprises may apply for 
reclassification as an authorized enterprise one year after becomin g an enterprise of 
general integrity.  
On a voluntary basis, any enterprise which registered with the Customs (irrespective of 
its size) may apply to the Customs for becoming an authorized enterprise. China 
Customs certif y enterprises according to standards  related to enterprise certification. 
Once the applicant enterprises meet requirements for becoming an authorized 
enterprise, they can be eligible for obtaining authorization and benefit from customs 
clearance facilitation.  
4. De conformidad con la página 55, párrafo 3.13 en relación a: "34 líneas están sujetas a tipos 
específicos, 3 a tipos alternativos y 5 están gravadas con tipos ad valorem  si el precio es inferior o 
igual a determinada cuantía, o con tipos compuestos si su precio supera esa cuantía".  
a) ¿Podría indicarnos China cómo se determina esa cuantía o precio. Qué variables se toman en 
cuenta para definir las líneas arancelarias que están sujetas a derechos específicos, alternativos y 
ad valorem ? 
Reply: The specified amount in the formula of compo und rate is determined according to 
the condition of supply and demand for related domestic products. In addition, 
according to China's  HS, about 99.5% of tariff lines are subject to an ad valorem  rate. 
Those subject to non -ad valorem  rates account for a t iny proportion, and most of the 
tariff lines subject to a specific rate remain unchanged and relatively stable since the 
previous review.  
b) Adicionalmente ¿Podría explicarnos China cómo se asegura, en el caso de la aplicación de un 
arancel compuesto que s uperó determinada cuantía, que la medida se ajuste a su compromiso de WT/TPR/M/3 42/Add.1  
 
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  consolidaciones arancelarias y en materia de valoración en aduanas, en el caso de productos 
importados con un valor por debajo del precio determinado?  
Reply: When the price  is higher tha n a specific amount, the tariff amount calculated at a 
combined ad valorem  and specific rate is lower than the amount calculated at 
ad valorem  rate at the same price level, which can fulfill the tariff binding commitment. 
For the commodities subject to a c ompound rate, if the price of imported commodities is 
lower than a specific price, China Customs assess and determine duty -paid value on the 
basis of transaction price of the imported goods according to the relevant stipulations in 
the WTO's Customs Valuat ion Agreement  and the Measures of Customs for Assessing 
and Determining Duty -Paid Value of Imported and Exported Goods . China Customs 
implement customs valuation in strict compliance with regulations and rules regarding 
customs valuation, and take supporti ng measures such as price monitoring analysis, 
seminars and training courses, which have effectively upheld China's  commitment on 
customs valuation.  
5. De conformidad a la página 59, párrafo 3.20, en relación a: "Siguen estando exentos del IVA los 
producto s agropecuarios de producción nacional vendidos directamente por los productores, pero 
no los importados".  
Asumiendo que los productos importados se tratan de productos similares, directamente 
competidores o sustituibles en relación a los productos de prod ucción nacional, ¿podría indicarnos 
China bajo qué disposiciones del GATT de 1994, respecto del principio de trato nacional, se 
justificaría la medida?  
Reply: In the process of production, agricultural producers are exempted from VAT for 
the sales of their  self-produced agricultural products; while in the process of circulation, 
VAT is imposed as on imported agricultural products, with no difference.  
6. De conformidad a la página 61, párrafo 3.22: "En China se mantienen prohibiciones, 
restricciones y licenc ias no automáticas de importación por los siguientes motivos: seguridad 
nacional; moral pública; protección de la salud de las personas y los animales y preservación de 
los vegetales; protección del medio ambiente y de los recursos naturales agotables; cum plimiento 
de las obligaciones contraídas por China en el marco de acuerdos  internacionales; y balanza de 
pagos ". 
Al respecto, ¿podría indicarnos China cómo implementa este tipo de medidas por temas de balanza 
de pagos en cuanto a los procedimientos interno s y disposiciones multilaterales?  
Reply: The policy measures regarding import bans, licensing and export bans, 
restrictions  and licensing are studied and formulated by rel evant  competent authorities. 
The customs authorities carry out supervision and regula tion as per laws, administrative 
regulations and the provisions from the State Council or as per the stipulations by the 
relevant  departments  of the State Council as mandated by the  laws and administrative 
regulations.  
7. De conformidad a la página 63, pár rafo 3.29, en relación a: "La lista de importaciones sujetas a 
restricciones o prohibiciones puede modificarse cuando es necesario, y las autoridades 
competentes pueden restringir o prohibir temporalmente la importación de mercancías no incluidas 
en un Cat álogo. La legislación china también autoriza a las autoridades a, entre otras cosas, 
restringir las importaciones para favorecer el establecimiento de una rama de producción nacional 
específica o para acelerar su desarrollo."  
¿Podría indicarnos China cómo implementa la medida de restringir las importaciones para 
favorecer el establecimiento de una rama de producción nacional específica y su justificación bajo 
las disposiciones de la normativa multilateral? ¿Su justificación normativa tendría que ver con las  
disposiciones del artículo XVIII Sección C del GATT de 1994?  
Reply: The purpose of China's  import prohibition on some products is to maintain 
national security and public morality; protect human, animal and plant health and WT/TPR/M/3 42/Add.1  
 
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  protect the environment, which reflects the exception as stated in Article 20 of GATT, in 
conformity with the WTO rules.   
8. De conformidad con la página 94, párrafo 3.127, en lo referente a la orientación para que las 
instituciones financieras aumenten el "crédito verde". ¿Podría infor marnos China a qué tipos de 
bienes, en un mayor porcentaje, se dirigen los créditos conforme a la clasificación internacional 
que se utiliza para el efecto (como se muestra a continuación):  
Reply: Green Credit generally refers to a series of policies and i nstitutional 
arrangements as well as practices that the banks apply credit facilities to support 
projects beneficial to environmental protection and restricting negative environmental 
effects, including green agricultural development projects, green forest ry development 
projects, industrial energy -saving and water -saving environmental protection projects, 
natural protection, ecological remediation and disaster prevention & control projects, 
renewable energy and clean energy projects, rural and urban water p rojects, building 
energy efficiency and green building, green transportation projects and energy 
efficiency and environmental protection projects.  
With a view to promoting green development, the People's  Bank of China (PBOC) 
flexibly uses monetary policy t ools to improve and optimize credit structures, and guide 
banking financial institutions to act upon commercial principles to provide financial 
support for green projects in respect of tackling climate change, environmental 
protection, sustainable developm ent, etc., to well implement the supply -side structural 
reform of financial services and address production overcapacity. PBOC encourages 
banking financial institutions to develop and improve green credit availability standards, 
establish environmental ris k assessment systems for green projects and improve 
assessment level for investment benefits and credit risks in the area of green industry, 
energy -saving environmental protection, to serve economic players transformation of 
pollution discharge technologie s, reduce environmental costs and protect natural 
resources, thus promoting economic restructuring and transformation in development 
mode so as to realize sustainable green development of the economy and society.  
According to CBRCs estimate, by the end of 2014, due to projects supported by green 
loans, 167  million tons of standard coal and 934 million tons of water  were expected to 
be saved annually,  emission of 400 million tons of carbon dioxide equivalence, 
5,876,500 tons of sulfur dioxide, 3,413,000 tons  of chemical oxygen demand, 
1,600,900  tons of nitrogen oxides and 340,800 tons of ammonia nitrogen were expected 
to be reduced. By the end of 2015, due to projects supported by the green loans, 
221 million tons of standard coal and 756 million tons of wate r were expected to be 
saved; emission of 550 million tons of carbon dioxide equivalence, 4,849,600 tons of 
sulfur dioxide, 3,552,300 tons of chemical oxygen demand, 2,270,000 tons of nitrogen 
oxides and 384,300 tons of ammonia nitrogen were expected to be reduced.  
1. Bienes que generan un beneficio directo y cumplen una función de prevención y/o control, y 
que contribuyen en la eficiencia en el uso de insumos ( ex ante ) o de protección y/o limpieza ( ex 
post); y, 
2. Bienes cuya producción, uso final o gestión  posterior tienen un efecto negativo menor o un 
impacto ambiental positivo si los comparamos con productos o substitutos "tradicionales".  
9. De conformidad con la página 106, párrafo 3.170, en referencia a que "en las principales zonas 
productoras de cerea les (siete provincias para el arroz y seis provincias para el trigo) siguen  en 
vigor precios de compra mínimos para el arroz (sin descascarillar) y el trigo.  
Según la notificación de China G/AG/N/CHN/28, en el cuadro justificativo "Medida Global de la 
Ayuda por productos específicos: sostenimiento de los precios del mercado: período fiscal 2010 ", 
se notificó medidas de sostenimiento de precios para el trigo a través del sistema de compra 
mínimos. Para el caso del arroz no se notificaron valores sin embargo consta en el mismo 
documento con la medida de sistema de compra mínimos. ¿Podría indicarnos China por qué no se 
notificaron valores correspondientes al arroz si se menciona que aplican medidas de compra 
mínimos?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China only adopts minimum procurement  prices for wheat and rice. From 2011 to 
2015, the minimum procurement prices for wheat were respectively 0.93  Yuan/Jin or 
half a kilogram (for white wheat: 0.95  Yuan/Jin), 1.02  Yuan/Jin, 1.12  Yuan/Jin, 
1.18 Yuan/Jin and 1.18Yuan/Jin. The minimum procureme nt prices for early long -grain 
non glutinous rice were respectively 1.02  Yuan/Jin, 1.20  Yuan/Jin, 1.32  Yuan/Jin, 
1.35 Yuan/Jin and 1.35  Yuan/Jin; for medium and late indica rice were respectively 
1.07 Yuan/Jin, 1.25 Yuan/Jin, 1.35 Yuan/Jin, 1.38 Yuan/Jin a nd 1.38 Yuan/Jin; for 
round -grained non  glutinous rice were respectively 1.28 Yuan/Jin, 1.40 Yuan/Jin, 
1.50 Yuan/Jin, 1.55 Yuan/Jin and 1.55 Yuan/Jin.  
10. De conformidad a la página 134, párrafo 4.8, respecto a:  "Las importaciones de esa clase de 
algodón f uera del contingente pueden estar sujetas a un derecho variable que depende del precio 
del algodón, pero que no puede exceder del 40% (es decir, del tipo consolidado para el algodón). 
Con arreglo a ese sistema, China fija un precio de umbral (15  yuan/kg en  2015). Las 
importaciones están sujetas a un derecho específico de 0,57 yuan/kg cuando su precio es igual o 
superior al precio de umbral; cuando el precio de importación es inferior al precio de umbral se 
aplica un tipo ad valorem basado en una fórmula ". 
Podría indicarnos China cómo se fija el precio del umbral y qué sucede con las importaciones cuyos 
precios se encuentras por debajo de ese umbral, cómo se ajusta este procedimiento al 
compromiso de China en la OMC, en materia de consolidaciones arancelarias  y valoración en 
aduanas.  
Reply: Cotton import is subject to TRQ administration. According to the commitment 
upon China's  accession, cotton imported under TRQ is subject to the in -quota tariff of 
1%, and the cotton imported out of TRQ is subject to the out -of-quota tariff of 40%. In 
certain years, quota for cotton subject to sliding duty is issued, which allows users to 
import cotton beyond the committed quantity with tariff not higher than the out -of-
quota tariff. Under this system, a threshold price is se t annually, based on various 
factors, including domestic production and supply. Cotton imported above the threshold 
price is subject to a fixed specific tariff, while the cotton imported below the threshold 
price is subject to the tariff level calculated a ccording to the formula for sliding duty, 
which will be not higher than 40%.  
11. De conformidad con la página 73, párrafo 3.67, respecto de lo siguiente: "No obstante, en un 
reglamento técnico se puede hacer referencia a una norma (voluntaria), lo que da a  esta carácter 
obligatorio".  
Con base en las definiciones del Acuerdo sobre Obstáculos al Comercio de la OMC, la 
obligatoriedad de la norma se produciría por un cambio de la misma, en lo referente a su 
contenido conforme la definición del Anexo 1 del Acuer do OTC.  
Podría informarnos China cómo se justificaría esa obligatoriedad de la norma conforme las 
disposiciones multilaterales, específicamente con el Acuerdo OTC de la OMC.  
Reply: Recommended standards becoming compulsory in the enforcement through 
refere nce of technical regulations is not originated in China, many countries have similar 
practices. It also frequently appeared in the WTO TBT notifications that voluntary 
standards become compulsory as they are cited in technical regulations, and therefore 
need to be notified to WTO.  
 WT/TPR/M/3 42/Add.1  
 
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  17  ECUADOR  (ADD .) 
WT/TPR/S/342  
1. Capítulo 3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Párrafo 3.56, en lo relacionado a las investigaciones de salvaguardias para productos agrícolas.  
¿Existe un organismo adscrito al Ministeri o de Agricultura de China que se encargue de realizar los 
temas de investigación?  
Reply: The Agricultural Product Trading Office of the Ministry of Agriculture is the body 
that performs such investigation.  
2. Sección 3.1.9 Prescripciones sanitarias y fito sanitarias. - 
Párrafo 3.81. - "La Ley sobre inocuidad de los alimentos de 2015 tiene por objeto fortalecer el 
sistema nacional de gestión de la inocuidad de los alimentos. Impone una mayor responsabilidad 
en cuanto a la inocuidad de los alimentos a los produ ctores y comerciantes de alimentos y a los 
gobiernos locales; al mismo tiempo, establece sanciones muy severas en caso de infracción de la 
Ley. Estas son algunas de las principales modificaciones introducidas por la Ley sobre inocuidad de 
los alimentos en 2015:  
"Se promueve la utilización de los resultados de la vigilancia de los riesgos en materia de 
inocuidad de los alimentos ". ¿Se utilizan planes o programas de vigilancia y control para llevar a 
cabo esta actividad?  
"Se establece un sistema de intercambi o de información sobre riesgos para la inocuidad de los 
alimentos " ¿Qué organismos intervienen en este proceso de intercambio de información?, ¿son 
solo organismos del sector público o también interviene el sector privado?  
Reply to the two questions above:  According to Article 23 of the lately revised Food 
Safety Law, food and drug regulators and other related departments at county level and 
above, the expert committee of food safety risk assessment as well as its technological 
institutions shall, based on the principles of being scientific, objective, prompt and open, 
organize the food producers and operators, food inspection institutions, food 
certification agencies, organizations of the food industry, the consumers associations as 
well as news media to ex change information on food safety risk assessment and food 
safety regulation. Therefore, food producers and operators, food inspection institutions, 
organizations of the food industry and etc. can all participate in the communication on 
risks.  
"Se dispone  que los límites de los residuos de plaguicidas y de medicamentos veterinarios, así 
como los métodos y las normas de ensayo, sean establecidos por las autoridades administrativas 
del Consejo de Estado encargadas de las cuestiones sanitarias y agrícolas en colaboración con el 
organismo regulador de los productos alimenticios y farmacéuticos dependientes del Consejo de 
Estado ". 
¿Se toma en cuenta lo establecido por el Codex Alimentarius?  
Reply: China has published the Maximum Residue Limits for Pesticides in Food 
(GB2763 -2014), including 87 pesticides and 3,650 limit indicators, of which 
1,230  indicators have been converted from CAC standards, taking up one third of the 
total. Besides, the risk assessment principle and the technological requirements adopted 
for determining the residue limit for pesticides in food are generally in conformity with 
relevant CAC codes.  
"Se da a los productores y comerciantes de alimentos una mayor responsabilidad en lo que 
respecta a la aplicación de las normas para la gestión de la inocuidad de los alimentos ". 
¿En qué se basa esta "mayor responsabilidad " para la aplicación de normas?  WT/TPR/M/3 42/Add.1  
 
- 171 - 
 
  Reply: Increases the responsibility of food producers and traders for the implementation 
of food safety management rules is to stress the fact that f ood producing and operating 
enterprises are the first responsible entity for food safety based on two points: First, the 
dominant position of food producers and operators in food production and operation. 
With the development of science and technology, mod ern food production and operation 
are becoming more and more complicated, therefore food safety situation depend on the 
safety awareness, safety conditions and safety management of food producing and 
operating enterprises; Second, China is strict with regu lation of food safety. Food 
production and operation are closely related to people 's health and life, and the Food 
Safety Law further emphasizes the fulfillment of responsibilities by various parties.  
"Se promueve el establecimiento de un sistema de rastr eabilidad para la inocuidad de los 
alimentos ". ¿Se podría dar un mayor detalle sobre el funcionamiento de este sistema de 
rastreabilidad? ¿Cuáles son las sanciones establecidas en caso de incumplimiento de la Ley sobre 
Inocuidad de Alimentos en China? Podr ía China detallarnos las seis circunstancias en las que han 
de evaluarse los riesgos para la Inocuidad de Alimentos.  
Reply: The Food Safety Law explicitly stipulates that Full -process food safety traceability 
system shall be established by the state, and f ood producers and operators shall, in 
accordance with the regulations of this Law, establish the food safety traceability 
system to make sure that food is traceable. The state encourages food producers and 
operators to take informationized means to collect  and retain production and operation 
information and to establish the food safety traceability system. In order for the 
enterprises to fulfill their main responsibilities, China is pressing ahead with the 
formulation of the Opinions on Perfecting Food and Drug Traceability System , and will 
put forward general requirements on the building of the food and drug traceability 
system, explicitly requiring that food and drug producing enterprises have to, in 
accordance with the requirements of relevant laws and re gulations, make true records 
of raw and auxiliary material procurement, production, and the direction of product 
sales, and make sure the data are true, accurate, complete and traceable.  
¿Cuáles son los límites de residuos de plaguicidas – LMR establecidos , cómo se establecen y cada 
qué tiempo son revisados?  
Reply: All of the 3,650 limit indicators set out in the Maximum Residue Limits for 
Pesticides in Food (GB2763 -2014), one of China's national standards for food safety, 
have been notified to the WTO acco rding to the Agreement on the Application of 
Sanitary and Phytosanitary Measures (SPS). Since 2010, we have submitted eight 
batches of official review notifications on the standards for pesticide residue limits, i.e. 
G/SPS/N/CHN/313, G/SPS/N/CHN/376, G/SPS /N/CHN/511, G/SPS/N/CHN/522, 
G/SPS/N/CHN/600, G/SPS/N/CHN/635, G/SPS/N/CHN/701 and G/SPS/N/CHN/875. 
During the development and implementation of the standards for maximum residue 
limits for pesticides in foods, China has strictly observed the SPS agreement  to ensure 
that the process is scientific, transparent and timely.  
3. Párrafo 3.84 (comentario). - Se solicita una mayor especificidad en cuanto a este párrafo. Un 
mayor nivel de detalle aportará a un mejor entendimiento acerca de su aplicación y evitaría 
controversias relacionadas a los Acuerdos de Medidas Sanitarias y Fitosanitarias de la Convención 
Internacional de Protección Fitosanitaria (CIPF).  
El sistema sanitario y fitosanitario en China, establece claras competencias entre las diversas 
instituciones  públicas, lo que facilita las negociaciones; no obstante, existe la percepción de que 
las negociaciones fitosanitarias tienen una considerable demora y los productos tienen elevados 
aranceles.  
¿Existe un tiempo estimado para la elaboración de análisis de riesgo de plagas?  
En cuanto al proceso de acceso a mercados AGROCALIDAD  (Agencia Ecuatoriana de 
Aseguramiento de Calidad del Agro) ha realizado dos solicitudes para el ingreso de fruta fresca de 
pitahaya y grano de quinua, que se encuentran en negociación.  WT/TPR/M/3 42/Add.1  
 
- 172 - 
 
  Reply: China welcomes the export of plant source food from Ecuador into China to enrich 
the food types on the dining table of Chinese consumers. Regarding Ecuador 's export of 
quinoa to China, China has always been holding an active attitude. So far, Chine se 
experts have initially completed the inspection and quarantine risk assessment on the 
Ecuador 's quinoa exports to China. China has sent a letter to Ecuador and sent experts 
to Ecuador for field investigation so as to complete the final risk assessment r eport. It is 
hoped that Ecuador could assist China and start the work related to filed risk 
investigation and assessment as soon as possible, thus promoting the early export of 
quinoa by Ecuador.  
4. Párrafo 3.86. - ¿El Catálogo de mercancías de importación  sujetas a permisos de seguridad y 
calidad, en el que se establecían las normas generales aplicables a los productos altamente 
sensibles en cuanto a inocuidad, higiene y protección del medio ambiente, todavía se encuentra en 
vigor?  
¿Podría China indicarno s en dónde se lo podría obtener en idioma inglés ? 
5. Párrafo 3.88. - En caso de no cumplir con una medida de inocuidad, ¿cuánto tiempo dura la 
prohibición?  
¿Es posible que el exportador sancionado vuelva a entablar relaciones comerciales con China? de 
ser así, ¿cuáles serían los requisitos?  
6. Párrafo 3.89. - ¿Cuál es el tiempo de validez de este registro?  
Reply to Questions 4 -6: The Catalogue of Import Commodities Subject to Safety and 
Quality Permits  is no longer applicable.  
7. Pregunta: ¿Cuál es el proces o para obtener una licencia de exportación automática y no 
automática?  
Reply: Please refer to responses from China to the Questionnaire on Import Licensing 
Procedures submitted to the Committee on Import Licensing . WT/TPR/M/3 42/Add.1  
 
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  18  EL SALVADOR  
P/ En el párrafo 3.4 del Inf orme de gobierno, se hace referencia a que China presentó la iniciativa 
del Programa de Trabajo Solidario, para promover las negociaciones comerciales multilaterales, 
podría China ampliar en qué consiste dicha iniciativa y como la misma contribuirá a logra r 
consensos en los temas de interés de todos los Miembros de la OMC?  
Traducci òn libre al ingl ès: 
P / In paragraph 3.46. on the Report of the government, indicates that China put forward the 
Solidarity Work Program initiative to promote multilateral trade n egotiations. Could China provide 
more information about this initiative and how it will contribute in achieving consensus on topics of 
interest to all Members of the WTO?   
Reply: By formulating a work program and timetable, the Solidarity Work Program was 
proposed by China with the aim to setting priorities and the road map for negotiations in 
the two years after the MC10.  This program will help members implement their 
commitments and advance the Doha Development Agenda. This Program include s two 
sets of is sues. The first set should contain agriculture, NAMA, services, rules and 
development, namely the remaining Doha issues. The other set should include issues 
which are relevant to business practices  today and have significant bearing on trade 
growth , such a s e-commerce and investment. With regard to the remaining issues of 
Doha, multilateral approach should be adopted to address them in parallel and in line 
with Doha framework. With regard to the new issues, the multilateral approach should 
also be adopted.  China believes that the Solidarity Work Program can encourage and 
impel members to deepen their communication and enhance their consensus with a 
sense of urgency and help the MC11 achieve more tangible outcomes.  WT/TPR/M/3 42/Add.1  
 
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  19  EUROPEAN UNION  
Summary   
Paragraph 2, page 8   
The report states that China has recently taken steps aimed at dealing with overcapacity in certain 
industries, introducing a set of measures for discouraging or reducing production in industries such 
as iron and steel, electrolytic aluminium, cement, pl ate glasses and vessels.   
EU questions No . 1-4: Could China clarify whether its plan to reduce its crude steel production 
capacity by "between" 100 -150 million metric tons (mmt) over the coming 5 years is a compulsory 
objective and what is the phase out se quencing over the 5 coming years? Which are the specific 
targets of reduction by local governments/individual enterprises and the sanctions foreseen in case 
the targets are not met? Could the Chinese authorities explain the underlying parameters (notably 
production/consumption/exports and import volumes) on the basis of which it was decided that 
this net reduction will be appropriate and sufficient to tackle the excess capacity problem of the 
Chinese steel sector? Could the Chinese authorities explain the m onitoring mechanism put in place 
to ensure the implementation of this target?   
Reply: In recent years, China has vigorously pressed ahead with the reduction of steel 
production capacity and has already achieved significant results. On this basis, the State  
Council has set the following goal: starting from 2016, another 100 to 150 million tons 
of production capacity of crude steel will be reduced in five years so as to optimize the 
rate of capacity utilization. The Chinese Government will work together with the 
industry to enhance overall consideration and coordination, strengthen supervision and 
examination, and implement the measures put forward by the Guiding Opinions.   
The Opinions of the State Council on Reducing Excess Capacity in the Steel Industry to 
Achieve Development by Solving the Difficulties (Guo Fa [2016] No. 6) requires that the 
market should serve as a check, the role of enterprises as the major actors be brought 
into full play, and efforts be made to ensure the exit of steel capacity that can not meet 
the requirements according to laws and regulations, through strict implementation of 
laws, regulations and industrial policies on environmental protection, energy 
consumption, quality, safety and technology. The equipment of obsolete capacity must  
be dismantled.  Law enforcement and supervision should be strictly implemented, the 
"blacklist " of bad records be timely released for better information disclosure and 
public 's supervision. Support should be provided to the hiving -off and reemployment of 
personnel as a result of local endeavour to reduce overcapacity.  
1 ECONOMIC ENVIRONMENT   
1.2.2 Structural reform measures   
Paragraph 1.17, page 20   
The "Made in China 2025" plan aims to comprehensively upgrade Chinese manufacturing industry 
with clear princ iples, goals, tools, and a clear sector focus.  It has been followed by a series of 
implementing measures, notably a roadmap that sets, for instance, minimum domestic content, 
the promotion of domestically produced products, envisaged subsidies and funding programmes, 
and the construction of tech innovation  centres .  
EU questions No . 5-7: Could China explain how it will ensure that the know -how and IP rights of 
foreign companies will be protected? How will China comply with WTO rules considering that the 
plan contains targets to raise the minimum domestic content of certain core components and 
materials to 40% by 2020 and 70% by 2025?  Could China elaborate on the guardrails that it will 
put in place to avoid overcapacity in the strategic sectors?   
Reply : The weak fundamental industrial capability in core basic components, advanced 
basic technologies, key basic materials and industrial foundation is what restrict s the 
innovative  development and quality enhancement  of China's manufacturing industry. It 
is propos ed in the Made in China 2025  that focus be put on making  breakthroughs in the 
above -mentioned four bottleneck problems, to comprehensively enhance the support WT/TPR/M/3 42/Add.1  
 
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  capabilities of the industrial base in basic  key parts and key materials. With regard to  
the procurement  of specific equipment and material s, China will follow its WTO  
commitment s and conduct  related work in accordance with international practice s, 
market -oriented and business principles , and have the enterprises as the main players.  
In the last year and a half, China has released a number of laws and regulations dealing with 
aspects of cybersecurity and national security.  Most of the laws and regulations require that ICT 
products should be "secure and controllable".   
EU questions No . 8-10: Could China  indicate whether there is a common definition of the concept 
of "secure & controllable"?  Could China confirm that there will be no cross -border data flow 
restrictions, as well as no data/server localisation requirements that could impede the activities of  
foreign invested enterprises, for instance in the area of cloud computing? Could China confirm that 
ICT vendors (including those marketing encryption solutions) will not be required to submit their IP 
(in particular the source code or business secrets) to  Chinese bodies in order to access the Chinese 
market?   
Reply : "Secure and controllable " include but are not limited to the following: First, to 
make sure that users have rights to control their own data, and no institutions should 
acquire, apply, revise a nd transfer consumer data without users ' permission or against 
users ' will; Second, to make sure users have rights to control their own system, and no 
institutions should enter, change and control users ' system without users ' permission or 
against users ' will; Third, no institutions should make use of users ' dependency on 
products and services to seek unlawful benefits, including stopping or threatening to 
stop providing reasonable technological support. "secure and controllable " does not 
mean the impositio n of country -specific restrictions, since  "secure and controllable " 
problems  can be found in both  domestic and foreign  technologies and products.  
With regard to  cross -border data flow, legislation practice of Australia, South Korea, 
Italy and other countri es shows that  restricti ve measures have been taken  on cross -
border data flow of government data, public service data or communication data  and 
transaction data out of  security con sideratio ns. China does  not rule out the possibility of 
learning from relevan t legislative experience to develop rel ated provisions in the future. 
In terms of data/server localization, China has no t made  clear legal provisions at 
present, but as more and more countries and regions introduce data localization -related 
measures out of  security concerns , as seen from  the legislative practice of European 
Union, Russia, Australia and other countries, we are study ing these legislation 
experience  and will never rule out the formulati on of  relevant provisions.  
EU questions No . 11-12: What c ontrol and sanction mechanisms are in place to ensure that local 
authorities will not approve new projects in sectors affected by overcapacity? What are the 
corrective/sanction mechanisms in case such projects are nevertheless carried out as seems to 
have been the case with new investment projects, expanding the steelmaking capacity, realised 
after the adoption of the Guiding Opinions on resolving overcapacity (Circular 41)?   
Reply: Document Guo Fa [2013] No.  41 explicitly provided that any local government  or 
department shall not, in any name or in any form, approve or put on file any new project 
that will bring extra production capacity to the industry already with severe 
overcapacity, and relevant department or institutions shall not proceed with provisio n of 
land (sea area), energy efficiency assessment or environment impact assessment; with 
respect to the project construction in industries with serious overcapacity, a production 
capacity displacement plan shall be prepared for equivalent replacement or r eduction. 
Circular of the State Council on Issuing the Catalogue of Investment Projects Approved 
by the Government (2014 Version) (Guo Fa [2014] No. 53) requires that projects in 
industries with severe excess capacity, such as iron and steel, electrolytic aluminium, 
cement, plate glasses and vessels are strictly subject to the relevant provisions of the 
Guiding Opinions of the State Council on Resolving Serious Overcapacity Conflicts 
(Guo  Fa [2013] No.  41). Containing overlapping construction and resolving serious 
overcapacity conflicts has been included in local governments ' performance appraisal 
indicator systems, third -party agencies have been introduced to assess the 
accomplishment of objectives by various local authorities, and the local authorities and  
enterprise failing to fulfill the tasks shall be held accountable.  WT/TPR/M/3 42/Add.1  
 
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  1.2.3 Monetary and exchange rate policy , Paragraph 1.27, page 23  
The report refers to the new "credit -policy supporting central bank lending" tool, introduced by the 
PBOC in 2014.   
EU que stion No . 13: Could China give further clarifications on the 'new tool' aimed at providing 
liquidity to banks and credit to targeted sectors and regions, identifying the sectors and regions 
affected, the interest rates applicable and giving explanations on  how the risk assessment is 
conducted?  
Reply : In 2014, the People's Bank of China issued the Notice on the Category 
Adjustment of Central Bank L ending  (Yin Fa [2014] No. 36) and set credit policy 
supporting central bank lending , mainly to promote the adjus tment of credit structure. 
To ensure the safety of central bank credit, credit -policy supporting central bank lending  
is released upon mortgage in principle, and financial institutions need to  provide eligible 
collateral recognized by the People's Bank of China.  
2 TRADE AND INVESTMENT REGIME  
2.2.2 Trade policy formulation and objectives   
Paragraph 2.13, page 35  
According to the report, China will continue its policy of "opening up", focusing, inter alia, on the 
services sector.  
EU question No . 14: Could China please provide further details as to how it intends to continue the 
opening up of the services sector for foreign invested enterprises?   
Reply : Overall arrangements  have been made on expanding opening up and widening  
investment market access by the Several Opinions on the Building of A New System of 
Open Economy  and the 13th Five-Year Plan for National Economic and Social 
Development of the People's Republic of China.  Specifically, China will comply with the 
Several Opinions of the State Council on Ac celerating the Development of Trade in 
Services , through implementing the foreign investment management system of 
pre-establishment national treatment plus negative list , to improve the quality and level 
of utilization of foreign capital, promote the openi ng up of the service sector, advance 
the orderly opening up of financ e, education, cultur e, medicine  and other service s, and 
gradually achieve high -level internal and external opening up; foreign investment access 
is widened in such  service sectors as old-age and child -care, architectural design, 
accounting, auditing, commerce & trade logistics and e -commerce.  
2.5 Foreign Investment Regime  
2.5.1 Regulatory Framework and Market Access   
Paragraph 2.26, page 37  
The 2015 Investment Catalogue indicates a numb er of sectors in which foreign direct investment 
in China are "encouraged ", but provides no clarification as to how this will be done.  
EU questions No . 15-16: What type of measures in relation to the "encouraged" sectors does China 
intend to adopt? To wha t extent does the government's encouragement of non -governmental 
players increasing their investment in the services sector extend to foreign operators?   
Reply : For foreign invest ed projects in emerging  industries , high  and new technology 
industry , energy saving and environmental protection and other sectors listed in the 
"encouraged" category of Catalogue for the Guidance of Foreign Investment Industries 
(2015  revision ), imports of equipment for self -use below the total investment amount 
shall be exempted from tariffs.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 2.30, page 29  
China is exploring the establishment of a new foreign investment regulatory framework, based on 
granting pre -establishment national treatment (i.e. no approval required at the time of 
establishment) to foreign invest ment in activities not included in a negative list.  
EU questions No . 17-18: Could China clarify whether, and if so, according to what time -frame, it 
intends to expand the system of a foreign negative list, trialed in the pilot FTZs, nation -wide? Once 
the n egative list will be fully implemented, how often it will be updated and which criteria will be 
applied?  
Reply : At present, the Chinese government is implementing the  pilot foreign investment 
management of pre -establishment national treatment plus negativ e list in the  pilot free 
trade zones, from which experience will be draw n, and it is expected  to be replicate d 
and promote d nationwide  during 2016. China will update the negative list in due course 
accord ing to  the development needs of domestic market. The  negative list for the pilot 
free trade zones of foreign investment has been updated annually since 2013.  
EU question No . 19: Could China please provide further details on how the negative lists will relate 
to the Investment Catalogue?  
Reply: The Special Administrative Measures for Access of Foreign Investment to Pilot 
Free Trade Zones (the "Negative List ") specified the special administrative measures for 
access of foreign investment that do not conform to national treatment and other 
principles. Currentl y, the Measures are only applicable to the four Pilot FTZs in Shanghai, 
Tianjin, Guangdong and Fujian. The sectors other than those specified in the Negative 
List will be managed in accordance with the principle of treating domestic and foreign 
investors e qually within the FTZs. The Catalogue for the Guidance of Industries for 
Foreign Investment (the Investment Catalogue) is applicable to investments within the 
territory of China by overseas investors. Currently, foreign investors need to abide by 
China 's laws and regulations when investing in China, including the Investment 
Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management 
system for foreign inve stment.  
2.5.2 Examination and approval procedures   
Paragraph 2.34, page 40   
In the case of projects involving "huge" overcapacity, including steel, electrolytic aluminium, 
cement, sheet glass and vessels, the approval process is outlined in a specific piec e of legislation. 
Approval is also required for projects designed to expand capacity in any of these sectors.   
EU questions No . 20-22: Could China clarify which are the so -called sensitive countries and 
industries in which verifications have not been aboli shed for the foreign -investment projects? 
Could China give an overview of the main criteria followed for the approval of foreign -invested 
projects involving "huge" overcapacity? Do the authorities apply the same criteria (to obtain 
approval) to both foreig n and domestic investments in the steel sector?   
Reply : China employs the  same approval standard on both domestic and foreign 
investments in industries of serious  overcapacity. According to the Administrative 
Measures for the Verification and Approval and the Record -Filing of Foreign Investment 
Projects  (NDRC [2014] No. 9), sensitive countries and regions refer to those  with no  
established  diplomatic relations or subject to international sanctions, and those  in wars 
or civil strife; sensitive industries ref er to such industries as basic telecom operation, 
cross -border water resources development and utilization, large -scale land 
development, electricity transmission lines, power grids  and news media.  WT/TPR/M/3 42/Add.1  
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1  MEASURES DIREC TLY AFFECTING IMPORTS  
3.1.8 Standards and other technical requirements   
3.1.8.1 Standards and technical regulations   
Paragraph 3.70, page 65   
The report indicates that, by January 2015, 4.354 local standards had been withdrawn.  However, 
this good news is w iped out by the indication in table 3.7 that, in 2015, 400.4 new local standards 
were approved.  
EU questions No . 23-24: Could China explain what has it done to implement the Chair's 
conclusions of the last Review regarding standardisation, presenting in p articular, what are China's 
next steps to replace local standards with national standards?  Where provincial and state 
standards co -exist, does China intend to set a competent authority at the national level capable of 
ensuring uniform application?   
Reply: For the measures taken by China  to in response to the conclusion by the Chair of 
last TPR on  the standardisation work, Article 6 of the draft Standardization Law under 
revision clearly stipulates that the state encourages the adoption and promotion of 
international standards. The purpose of establishing standardization coordination 
mechanism among government departments, as stated in Article 5 of the draft  
Standardization Law , is to strengthen coordination of the major standardization policies 
between the g overnment departments and strengthen the coordination in develop ing 
and implement ing important standards. Meanwhile, t he State Council issued the Work 
Plan for Integration and Streamlining of Mandatory Standards  in January 2016, and 
AQSIQ  and the Standardi zation Administration are organizing various departments and 
regions to accelerate the integration and streamlining work.  
3.1.8.2 Product certification  
Paragraphs 3.71 and subs., page 65  
On the existing national certification scheme (CCC), product approva l requires local (in country) 
conformity assessment authorised accredited certification bodies (ACB) designated by the China 
National Certification and Accreditation Administration (CNCA). Although the scheme does not 
discriminate against foreign businesse s, the system differs from international practices. In 
particular, China has developed its own standards with reference to the certification issues for 
motor vehicles and medical devices industries instead of making us of the existing international 
standar ds. Furthermore, the Chinese system for inspections of commercial vehicles does not 
reflect the fact that commercial vehicles are produced in much smaller volumes than passenger 
cars and with many more variants. Commercial vehicles need to be adapted to th e specific needs 
of different transport tasks. This makes inspections of such vehicles particularly burdensome.   
EU questions No . 25-26: Does China have any plans to widen the acceptance of conformity 
assessment carried out according to international stand ards and schemes? Is China envisaging any 
reform in its system for inspections, in particular in the automotive and pharmaceutical sectors?  
Reply : There is no significant reform for CCC certification in the automotive sector.  
3.1.9 Sanitary and phytosani tary requirements  
Paragraph 3.81, page 68  
The report describes the main amendments introduced by the 2015 Food Safety Law.   
EU question No . 27: Why does China not notify all implementing acts related to the new Food 
Safety Law to the WTO?  
Reply : Annex B of the WTO SPS Agreement provides for the members s transparency 
obligations, base on which China will assess whether  relevant measures  should be 
notified .  WT/TPR/M/3 42/Add.1  
 
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  In the EU's view, the proposed mandatory official health certification for all food products 
(includ ing shelf stable products such as biscuits, confectionary, canned fruit, wines or pasta) 
appears disproportionate. For example the prohibition of re -packaging of infant formulae appears 
unnecessarily restrictive and, in consequence, discriminatory (c.f. al so 3.90).  Furthermore, the EU 
has several concerns in relation to the Chinese import policy, particularly in the dairy sector.   
EU question No . 28: Against this background, could China describe what measures are adopted to 
ensure that implementing measures  are proportionate and based on a rational assessment of 
risks?   
Reply: China's management system for imported food is based on the provisions of the 
Food Safety Law  and relevant laws and regulations, and by refer ring to the international 
prevailing practi ces. Major measures will be published  for comments  and notified to 
WTO  before the issuance.  
EU question No . 29: Could China clarify what measure will adopt to align its domestic legislation in 
relation to dairy products with the provisions contained in th e relevant agreements of the WTO and 
in relation to the international standard setting organizations?   
Reply : China has always been complying  with relevant provisions of the SPS Agreement, 
and will continue to formulate and amend relevant measures in accor dance with the 
stipulations  of the agreement in the future.  
Paragraph 3.84, page 69   
The report stipulates that in the area of animal and plant disease management the Administration 
of Quality Supervision, Inspection and Quarantine (AQSIQ) and the Ministr y of Agriculture (MOA) 
will jointly assess whether measures taken by the affected country are based on the principles 
stipulated by national and international organisations.  
EU question No . 30: As a Member of the International Animal Health organisation OI E, will China 
accept regionalisation measures of EU Member States taken in accordance with agreed 
international principles against Avian Influenza, African Swine Fever and other animal diseases and 
allow imports of products from non) -affected areas, as pro vided by OIE standards? (c.f. also 3.91)  
Reply : As a country with large -scale pig and poultry industries, safety of these sectors 
has a bearing on the national economy, people's livelihood and social stability; to ensure 
safety, China has taken strict quar antine control measures on both animal epidemic 
diseases. At the same time, according to relevant WTO principles, China has take n 
regional ized measures  on low pathogenic avian influenza to protect indigenous animal 
and plant health and industrial safety, b ut such regional measures  are not applicable to  
highly pathogenic avian influenza and African swine fever.  
EU question No . 31: As a Member of the OIE, will China lift BSE -related trade restrictions against 
European beef in accordance with OIE standards?   
Reply: As a large agricultural country, China must pay high attention to animal epidemic 
diseases, especially those never occurr ed in China. We have noted that most EU 
countries have been recognized as " controlled risk country for BSE" or " negligible risk 
country for BSE" by OIE successively. We expect EU countries that inten d to export beef 
to China to deliver a formal note to the Ministry of Agriculture (MOA) and AQSIQ of the 
People's Republic of China  on relevant information and assist China in conductin g 
evaluation, so as to help China further understand their BSE prevent ive and control 
systems, beef safety supervis ory systems  and concrete measures to control and 
eradicate BSE , so as to  make a comprehensive BSE risk evaluation  of a country . Based 
on the risk evaluation results, China lifted the ban on 0 -12-month old deboned veal from  
Netherlands on June 30, 2014 and 0 -30-month old deboned beef from  Ireland on 
February 11, 2015. China also dispatched expert teams to Denmark for on -site BSE risk 
evaluation and to France for BSE technical exchange respectively.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.87, page 70   
EU question No . 32: How does China ensure that audits in third countries are carried out in 
accordance to international standards?   
Reply: According to the relevant stipulatio ns of Food Safety Law  and Administrative 
Measures for Health Food Registration and Filing , health foods imported for the first 
time should be registered with CFDA, and relevant products that are approved for 
registration should conform to the technical req uirements reviewed and approved by 
CFDA; health foods imported for the first time and classified as vitamin, mineral 
substance and other nutrient substances should be filed with  CFDA, and relevant 
products that meet the filing requirements should conform t o the technical requirements 
of products to be filed for record  by CFDA.  
Paragraph 3.89, page 71   
The 2015 Food Safety Law has changed the requirements for foreign companies importing food 
into China and eased the operations. Chinese regulations still requ ire a prior on -site inspection to 
be carried out by China in all those establishments which want to export into China, to verify the 
import requirements for the product concerned.  
EU question No . 33: Is China envisaging applying the principle of pre -listing, according to 
international recommendations? If not, could China elaborate on the reasons?  
Reply: According to Administrative Measures for Health Food Registration and filing , 
when health foods imported for the first time apply for registration, if the  review and 
evaluation institutions, after examining  the application materials, consider it necessary 
to carry out on -site verification, the inspection institutions should conduct on -site 
verification on product R&D report, formula, manufacturing process a nd other technical 
requirements that are described in the application materials and deliver sealed samples 
of the offline products to inspection institutions for verification .  
Paragraphs 3.91 and 3.30  
In April 2016, AQSIQ informed third countries about t he introduction of a new certificate needed to 
import food products in China. This Certificate must be issued by the competent authorities on 
food security of the exporting country as of 2017. This certificate will be needed for all kind of food 
products, with no consideration to specific risk of different kinds of products and it may also imply 
the duplication of certificates.  
EU questions No . 34-36: Could China submit additional clarifications on this new requirement 
specifying why it did not notify the measure to the WTO?  Why has not  China considered the 
possibility of graduating this requirement in order to take into account different levels of risk 
associated with different food products?  Could China clarify whether alcoholic beverages will also 
be sub mitted to those additional certification requirements?  
Reply: China established the administrative system for imported foods  on the basis of 
Food Safety Law  and other relevant laws and regulations and by referring  to 
international ly prevailing  practices. Before a significant measure is issued, China always 
seeks public opinions and notifies it to the WTO. Alcoholic beverage products should be 
subject to this stipulation . 
Paragraphs 3.91 and 3.30  
EU question No . 37: As regards import restrictions for logs and timber, the EU companies are 
confronted with conflicting information. Could China clarify the import conditions for ash wood 
(fraxinus sp.)?  
Reply: The purpose for China to impose import ban on some species of logs and timber 
imported from several Eur opean countries is to prevent fraxinus dieback that breaks out 
in these countries. Dieback, an extremely dangerous forestry fungal disease, has broken WT/TPR/M/3 42/Add.1  
 
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  out in some countries and regions just like a disaster and caused extremely severe 
losses. As the risk ev aluation shows that fraxinus dieback is likely to enter China along 
with the imported logs, in order to protect China's forest resources and ecological safety 
and in accordance with Law on Entry and Exit Animal and Plant Quarantine of the 
People's Republic  of China  and its implementation regulations, Regulations on Plant 
Quarantine , Emergency Response Plans for Significant Epidemic Situation of Entry and 
Exit Plant  and other relevant regulations, AQSIQ and State Forestry Administration of 
the People's Repub lic of China (SFA) jointly issued Announcement on Preventing 
Fraxinus Dieback from Entering China  (joint announcement  No. 156 [2013]) in 2013, 
banning the  import  of fraxinus logs and sawn timber from the countries and regions that 
suffer fraxinus dieback ( See joint announcement No.  156 [2013] for the detailed list).  
3.2.3 Export prohibitions, restrictions, and licensing  
Paragraph 3.102, page 74  
One of the reasons for China to restrict or prohibit exports is to "organise export business 
management".  
EU ques tion No . 38: Could China clarify the concrete meaning of this stated objective and explain 
how it is effectively implemented?   
Reply:  Foreign Trade Law of the People's Republic of China  specifies that restrictions or 
prohibitions may be imposed on the impo rt of goods and technology based on the 
following reasons:  
In order to safeguard national security, social public interest or public morality, it 
is required to restrict or prohibi t import or export;  
In order to protect human health or security, animal or  plant life or health and 
environment, it is required to restrict or prohibit  import or export;  
In order  to implement the measures related to gold or silver import and export, it 
is required to restrict or prohibit import or export;  
According  to relevant l aws and regulations, it is required to restrict or prohibit 
import or export;  
According to international treaties and agreements that China has concluded or 
joined in, it is required to restrict or prohibit  import or export . 
Paragraph 3.104, page 75  
Rare earth, tungsten and tungsten products as well as molybdenum are subject to export 
licensing.  
EU questions No . 39-40: Could China provide some details on the export licensing scheme, such as 
the conditions to be met to obtain the license and the informatio n to be provided? Could China 
report on the number of licences that were granted in 2015, the number of licences that were 
denied and the reason for such refusal, the volumes of the goods that received an export license, 
the time necessary to obtain an exp ort license?  
Reply: Please see Administrative Measures for Goods Export License  (MOFCOM Decree 
No. 11 [2008]) and Notification of Quantit ative  Restriction Measures  submitted by China 
to the WTO for the administrative procedure s of export license.  
3.2.4 Ex port support and promotion  
Paragraph 3.108, page 76  
According to the report exporters are entitled to VAT rebates on all exported goods. The rebate 
rates vary according to the product, and are usually lower than the VAT paid, ranging from 0% to 
17% ( parag raph 22).  WT/TPR/M/3 42/Add.1  
 
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  EU question No . 41: What are the criteria China uses to determine the VAT rebate rate on 
exportation?   
Reply: The adjustment of export rebate rate is mainly based on the principle of reducing 
trade friction and restraining the export of high ly energy -consum ing, high ly polluti ng 
and resource products.  
3.3 Measures Affecting Production and Trade  
3.2.5 Export finance, insurance, and guarantees  
Paragraph 3.111, page 77  
Reference is made to the structure for export finance, insurance and guarantees.  
EU question No . 42: For the loans, export credits, insurance and guarantees granted by Eximbank 
and SINOSURE, could China elaborate further on the way how transaction is priced, detailing in 
particular which are the single elements taken into account?  
Reply: The interest rate of export credit of China Exim Bank is set according to principles 
as follow: RMB credit adopts interest rate policy of People 's Bank of China. Lending rate 
is adjusted on the benchmark interest rate. The fixed interest rate for shor t-term foreign 
currency credit (of 1  year or less than 1 year) is set by adding certain percentage points 
on LIBOR value. The fixed interest rate of medium and long -term foreign currency credit 
(of over 1 year) is set by adding certain percentage points on  CIRRs. The floating 
interest rate of foreign currency loan is quoted by adding certain percentage points on 
LIBOR value. The benchmark interest rate can be chosen from the LIBOR value of one, 
three, six or twelve months.  Eximbank sets its lending  rate bas ed on comprehensive 
consideration on macro -policy orientation, supply and demand of funds, cost of loan 
funds, cost of capital employment, project risk compensation, operation and  
management expenses, as well as interbank quotation  level and other factors.   
Premium rate of SINOSURE is determined on the basis of risks, mainly including classification of 
country risk and insurance period; it  is also adjusted according to the proportion of advance 
payment, terms of repayment, guarantee conditions, past coopera tion and other factors.  
3.3 MEASURES AFFECTING PRODUCTION AND TRADE  
3.3.1 Incentives  
Paragraph 3.129, page 83 , Table 3.14  
According to the information contained in the table, support is granted to "International economy 
and trade".  
EU question 43:  Could China explain who is eligible to receive financial appropriation under this 
programme, clarifying also what specific measures are in place?  
[Question background: "Special Fund for International Economy and Trade" listed on P116 of the 
report is taken as s upportive fund for international economy and trade]  
Reply: Please refer to Program No.  39 of Notification of China on Central Government 
Subsidy  2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN) for 
detailed information.  
3.3.4 Price controls  
Paragraphs 3.168 -3.171, pages 91 -93  
According to the report, despite the fact that s ince the last review in 2014, China has liberalised 
the price of several goods and services, C hina continues to apply price controls, at both the central 
and provincial le vels, on commodities and services.  
EU questions No . 44-47: What is the timetable foreseen for the liberalisation of prices on those 
goods/services still subject to price control? Could China explain the extent to which prices vary in 
accordance to such pr oducts or services? Do different sectors/users benefit from different price WT/TPR/M/3 42/Add.1  
 
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  levels – e.g. gas and electricity prices – are there different rates applicable commercially 
depending on the user industry? If different rates apply could China provide examples o f the prices 
charged?  
Reply: According to Opinions on Advancing Price Mechanism Reform,  price liberalization 
in competitive fields and links will be achieved basically in 2017 and government pricing 
scope will only be limited to a small number of goods an d services, mainly limited to 
important public utility, public welfare service and networked natural monopoly. 
Article  21 of Price Law  specifies that formulation of government -guided price and 
government -set price should conform to the social average cost and market supply -
demand of relevant goods or services, development requirements of national economy 
and society, and social durability, allowing reasonalbe purchase -sale price difference, 
wholesale -retail price difference, regional price difference and se asonal price difference. 
Therefore, different fee rates may apply to different users, for example, residential 
electricity price is different from commercial electricity price.  
3.3.5 State trading and state -owned enterprises  
3.3.5.1 State trading  
Table 3.17, page 94  
The report provides information to State -trading and import TRQs for grains. The EU would like to 
obtain the following clarifications:  
EU questions No . 48-50: Are the state enterprises and the private undertakings obliged to import 
the quan tity that was allocated for them under a specific TRQ? Can the right to import under a 
TRQ be transferred between companies or eventually returned to the state for re -allocation? Is the 
total TRQ allocated in advance or there is some kind of timing for the  allocation in place based on 
market situation, interest to import, etc.?  
Reply: Since it joined the WTO, China has been seriously fulfilling its commitments, and 
exercising administration on import TRQ and state trading agricultural products. Import 
TRQ allocation of grain, cotton and other agricultural products is based on Interim 
Administrative Measures for the Administration of Agricultural Import Tariff Quotas  
(MOFCOM and NDRC Decree No.  4 [2003]) and follows the "Fairness, Transparency, 
Non-Discrimin ation" principle. The annual total import TRQ quantity of agricultural 
products, proportion of state trading quotas, application conditions, allocation principle 
and related procedures are disclosed on the office websites and notices on the 
reallocation of  import TRQ of agricultural products are issued timely. Before January 1 
every year, all annual quotas are allocated to enterprises. The enterprises may import 
products at discretion according the market conditions and are not obliged to import 
according t o the quota amount. Please log on the official websites of MOFCOM and NDRC 
for further details.  
3.3.2 Competition policy  
3.3.5.2 State -owned enterprises (also Government report)   
China has initiated the reform of its State Owned Enterprises. Despite annou ncements at the Third 
Plenum that the market forces would be given a more decisive role, the SOE reform does not seem 
to ensure that SOEs operating in commercial markets be subject to normal commercial forces or 
that they abide by the same rules as private  operators when they compete with the latter in the 
market.  
EU questions No . 51-53: Could China explain what measures are envisaged for ensuring a level 
playing field and non -discrimination between SOEs and private enterprises,  highlighting, in 
particular,  whether  SOEs will be subject to the same rules and regulations as other economic 
operators with regard to access to financing, including subsidisation, bankruptcy and competition 
legislation? Could China submit details on how SOEs have been divided into c ommercial and non -
profit? Could China clarify what privileges, if any do SOEs enjoy? Could China explain if there are 
specific obligations for SOEs only?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The Chinese government has attached great importance to the fair and just 
market competition o f SOEs. After over 30 years of reform, SOEs have experienced 
profound changes in their management system and operational mechanism and, on the 
whole, been integrated into the market economy and become  entities independently 
participating in market competit ion. China has adopts three significant measures in this 
regard: firstly, deepen the reform to introduce corporate and joint stock systems; 
secondly, accelerate improvements in corporate governance structure; thirdly, 
continuously deepen market -oriented re form of SOEs operational mechanism. SOEs are 
subject to the same rules and regulations as other economic operators in terms of 
access to financing, bankruptcy and competition legislation, without any privileges. 
China treats all enterprises equally regardl ess of their ownerships. For instance, the 
legislation with respect to the banking industry of China sticks to ensuring a good 
market order and a fair market competition environment, as specified in Article 9 of the 
Commercial Bank Law : Commercial banks sh ould follow the principle of fair competition 
in their business and should not be engaged in unfair competition. According to the laws 
and regulations, large banks of China currently apply the same risk management in their 
credits to SOEs and other private  enterprises.  There is no discrimination against private 
enterprises based on the regulatory system or practice. According to the Anti-monopoly 
Law and department functions, the Ministry of Commerce is responsible for the anti -
monopoly investigation in the  concentration of undertakings. Where a SOE is involved, it 
is required to declare pursuant to the law if the threshold is reached. MOFCOM treats all 
enterprises alike and apply to them the same rules, no matter they are SOEs, private 
enterprises or foreig n-invested enterprise.  
EU question No . 54: China refers to the creation of a "uniform and open market system with 
orderly competition ". Could China explain what is meant and how this can be achieved?  
Reply: A uniform and open market system with orderly c ompetition means a market 
system providing the enterprises with independent management and fair competition, 
providing the consumers with freedom of choice and autonomous consumption, and 
providing the commodities and elements with free and equal exchange.  This system 
aims to eliminate the market rampart and improve the resource allocation efficiency and 
justice. At present, a series of reformation activities have been carried out in China for 
the same purpose, including the Negative List of Market Access t hat clearly lists the 
sectors, areas and businesses prohibited or restricted from the market within the 
territory of the People's Republic of China. The governments of all levels shall take 
corresponding administration measures according to the laws. All e nterprises are 
entitled to compete, in a fair manner, in the industries, fields and businesses other than 
that specified in the Negative List of Market Access. We believe that the promotion of 
reformation will further reduce the listed items. Therefore, a market from regional 
blockade, segmentation, prejudice against ownership and unequal competition will be 
established.  
Paragraph 3.179, page 97  
Reference is made to the capital injections that SOEs may receive from the Government if needed.   
EU questions N o. 55-56: Regarding capital injections to SOEs, could China explain what 
are the criteria to determine whether such capital injections 'are needed'? Of the 
105 SOEs which received support in 2014 could China submit details on the sectors 
/enterprises invol ved?   
Reply: In accordance with the Company Law of the People's Republic of China and the 
Law of the People's Republic of China on the State -Owned Assets of Enterprises, the 
government as shareholders may increase the registered capital to the contributed 
enterprises. The information on the budget for state -owned capital operation will be 
disclosed as stipulated in the Budget Law and the Regulation of the People's Republic of 
China on the Disclosure of Government Information. Besides, the so so -called 
"gove rnment support " mentioned in the Annual Report of Chinese Listed Companies is 
an accounting subject in China, and it should be clearly differentiated from the "subsidy " 
defined by the SCM Agreement. Moreover, in the common "government support " project, 
based on environmental protection considerations, part of the support is reflected as the WT/TPR/M/3 42/Add.1  
 
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  refund after collection of VAT for products that comprehensively utilize resource. This 
policy applies equally to all types of enterprises rather than only to state -owne d 
enterprises (SOEs), so it cannot be taken as subsidy provided specially for SOEs. This 
project has been notified in Program No. 16 -17 of China 's Notification on Subsidies at 
central government level for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, 
G/SCM/ N/284/CHN). For details, please refer to it.  
3.3.6 Government procurement   
Paragraph 3.187, page 99  
Reference is done to the "buy -domestic" (Article 10) provision of the Government Procurement 
Law which was not modified by the 2014 amendment. As a result, the Government must procure 
domestic goods, construction projects and services, with certain exceptions. However, there are no 
criteria specified as to what constitutes domestic goods or provisions on local content. China has 
previously stated that in prac tice the Chinese government applies non -discriminatory and equal 
treatment to products manufactured by domestic -funded and foreign -funded enterprises.   
EU question No . 57: If there are no statistics available that illustrate that article 10 on "buy -
domesti c" is not applied in practice, on which basis does China state that there is equal treatment 
between products manufactured by domestic funded and foreign funded enterprises?   
Reply: For the procurement by Chinese governments, products from foreign funded 
enterprises and domestically funded enterprises are subject to the same standards and 
are treated equally. That is, the products manufactured by foreign and domestic 
enterprises in China are all entitled to national treatment.  
EU question No . 58: Could Chi na explain what is the reason to keep Article 10, in particular as 
China claims that it is not applied?   
Reply: The relevant departments of Chinese Government have been working on the 
identification standards and administrative measures regarding "buy dome stic", so as to 
ensure a smooth implementation of related terms.  
EU questions No . 59-60: How does China intend to address domestic -sourcing legal requirements 
in view of its accession process to GPA? Do the Chinese authorities foresee a legal reform on th e 
national public procurement legislation? In this respect, what legal measures is China planning?   
Reply: China is not a member to GPA yet and the law -based administration of 
government is required. In addition, China 's access to GPA would not necessarily  mean 
the abandonment of the "buy domestic " provision in the Government Procurement Law . 
It depends on the negotiation results as to whether this provision will not apply to 
contracting parties. . The NPC is responsible for legislative amendments in China.  No 
information on the amendment to  the Government Procurement Law is available at 
present.  
Paragraph 3.200, page 102  
Reference is done to "Bidders may question the procuring agency's decision, complain to the 
Government Procurement Division of the Minist ry of Finance, or bring the case to court. In 2014, 
the financial authorities at various levels all over China accepted 1,337 government procurement 
complaints raised by suppliers, up from 1,079 complaints reported in 2013. The authorities noted 
that the f inance authorities at various levels have continued to improve the complaint handling 
mechanism since the last Review, establishing a multi -departmental cooperation and coordination 
mechanism and an offence -disclosing mechanism.   
EU question No . 61: Could China specify in how many cases of the filed complaints a non -
compliance with the relevant rules was found?  
Reply: There is no such data .  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.201, page 102  
According to the report, with a view to improve efficiency in government procurement, Chi na 
promotes the use of information technology and the gradual adoption of e -procurement, as of 
procurement. The authorities have noted that China is also promoting the standardisation of 
government procurement, as well as stepping up efforts to exercise su pervision and inspection, so 
as to reduce the risk of collusion in the process of government procurement.  
EU question No . 62: Could China provide more details on its e -procurement system and whether 
China envisages the establishment of a single point of ac cess to tender notices?  
Reply: In 2013, the Ministry of Finance issued the Overall Planning on the Construction 
of National Government Procurement Management Trading System  and the Basic Data 
Specifications for Government Procurement Business , both of whi ch are available on 
www.ccgp.gov.cn . China has established a mechanism disclosing information from the 
whole government procurement process, including the procurement results. 
Government procurement projects subject to bidd ing and not subject to bidding 
(including single source) should all disclose information as stipulated.  
EU question No . 63: To what extent when promoting the standardisation of government 
procurement, China is aligning its legislation with the GPA rules (i .e. Article IV. 3 of the GPA (use 
of e-procurement) in view of its accession to the agreement?   
Reply: China takes into full consideration the GPA rules on E -procurement to actively 
promote the electronic construction and strengthen the standardized manage ment.  
Paragraph 3.202, page 102  
According to the report, the Chinese authorities have stated that government procurement has 
become increasingly more transparent since the last review and that information and records on 
material offences and dishonesty of  procurement agencies, suppliers and review experts has been 
made public.   
EU question No . 64: Could China provide more details relating to the making public of such 
information and records?  
Reply: Please visit www.cc gp.gov.cn  for more information.   
3.3.7. Intellectual property rights   
3.3.7.2.1 Patents   
Paragraph 3.212, page 105  
The report describes that foreign or international patent applications for an invention or utility 
model in which the substantial content o f the technical solution was generated within the Chinese 
territory or resulted from R&D activities of major national projects, are subject to a preliminary 
national -interest clearance. The report further states that there are also some limitations regardi ng 
the licensing of IPRs obtained from major national projects, which must first be non -exclusively 
licensed within the territory of mainland China.   
EU question No . 65: Could China indicate the exact legal basis of these two requirements (both 
preliminary  clearance for foreign or international patent applications and limitations as regards 
licencing), and whether it considers deleting or amending these requirements in the near future?  
Reply: In accordance with Article 20 of the Patent Law  of China: Where an entity or 
individual intends to file an application in a foreign country for patenting an invention or 
utility model accomplished in China, it or he shall report in advance to the patent 
administrative department of the State Council for confidentiality  review. The provisions 
of the State Council shall be followed in regard to the procedures and time limit for the 
confidentiality review. We have not been informed of any intentions to modify the 
related laws and regulations of China.  WT/TPR/M/3 42/Add.1  
 
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  EU questions No . 66-67: Could China explain how the requirement of "substantial content " of the 
technical solution is interpreted in practice (criteria applied) and the understanding of "major 
national projects "? Does Footnote 200 correctly refer in this regard to the Nationa l Medium - and 
Long-Term Programme for Science and Technology Development of 2006, or was this programme 
replaced by the 12th Five -Year Development Plan for National Strategic Emerging Industries, 
published on 9 July 2012, or by other programmes?  
Reply: Th e scope of "substantial content " shall be defined based on the Claim and 
Specification of a specific application. The 2006  National Medium and Long -term 
S&T Planning , with a period of validity from 2006 to 2020, is an important document 
guiding the S&T inn ovation in China. The subsequently issued 12th Five-year Plan and 
13th Five-year Plan with respect to S&T innovation and strategic emerging industries are 
the implementation of National Medium and Long -term S&T  Planning.  
EU question No . 68: Could China exp lain whether appeal proceedings are available against a 
negative decision in such cases?   
Reply: In such cases, the applicant may apply for administrative reconsideration file a 
suit to the people 's court against any unfavorable decisions.  
EU question No . 69: Could China indicate the period of time during which IPRs obtained from 
major national projects must first be non -exclusively licensed within the territory of mainland 
China?  
Reply: In terms of the Non -exclusive License, there is no special rules in r elation to the 
Non-exclusive License under the Provisional Regulations on the Administration of 
National S&T Key Special Intellectual Property Rights , in which case, the Scientific and 
Technological Progress Law , Law of the PRC on Promoting the Transformat ion of 
Scientific and Technological Achievements , Patent Law  and other laws and regulations 
as well as the uniform national requirements on the administration of scientific and 
technological achievements shall be applicable.  
EU question No . 70: Could China  indicate whether it considers deleting or amending these 
requirements in the near future?  
Reply: We have not been informed of any planning on any amendments to relevant laws.  
EU question No . 71: Could China further explain the present legal situation as regards the 
ownership of IPR resulting from joint research projects between Chinese and foreign companies?  
Reply: The ownership of IPR resulting from joint research projects between Chinese and 
foreign companies is mainly agreed upon by Chinese and foreig n parties in accordance 
with the Contract Law of the People 's Republic of China, and specified in the contract; 
where there are no relevant agreements, the ownership should be judged based on the 
regulations of the Patent Law of the People 's Republic of Ch ina or the Law of the PRC on 
Promoting the Transformation of Scientific and Technological Achievements . It is 
stipulated in the Article 8 of the Patent Law  that, for an invention or creation jointly 
accomplished by two or more units or individuals, or acco mplished by an unit or 
individual under the entrustment of another unit or individual, the right to apply for a 
patent shall be vested in the units or individuals that have accomplished the invention or 
creation in collaboration or in the unit or individua l that has done so under entrustment, 
unless it is otherwise agreed upon; after the application is granted, the unit(s) or 
individual(s) applicant shall be deemed the patentee(s).  
3.3.7.2.2 Trademarks   
Paragraph 3.219, page 107  
In the sixth line of this p aragraph, the report mentions the introduction of the principle of good 
faith for the registration and use of trademarks.   WT/TPR/M/3 42/Add.1  
 
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  EU question No . 72: Could China confirm that Article 7 of the new Trademark Law does not provide 
any legal basis for opposition and i nfringement proceedings, and that therefore the protection 
against the very frequent bad -faith applications and registrations is limited to the case that there 
had already been a previous relationship with the wrongdoer (Article 15(2) of the Trademark 
Law)?  
Reply: The principle of good faith is one of the basic principles for civil activities. The 
principle of good faith prescribed in Article 7 of the Trademark Law applies to both the 
registration and use of trademarks, which is the embodiment of the princ iple of good 
faith in the Trademark Law. As for cases relating to trademark authorization or 
confirmation, although Article 7 is not a legal reason for invalidating or revoking the 
trademarks and cannot serve as direct legal basis for identifying trademark s as invalid 
or revoking the trademarks, it provides guidance for the application of other legal 
provisions (statutory provisions concerning invalidity and revocation, such as 
Articles  13, 30 and 32 of the Trademark Law). Therefore, the people 's court shal l refer 
to relevant laws for the determination of invalid trademark following the principle of 
good faith prescribed in Article 7 of the Trademark Law. In civil disputes related to 
trademarks, the people 's court shall refer to relevant laws (such as the in fringement 
stipulated in Article 57 of the Trademark Law) to identify the infringement and 
determine the liability for infringement.  
3.3.7.2.3 Geographical indications  
Paragraph 3.228 , page 108  
In the early 2016, Chinese State Administration for Industry and Commerce (SAIC) was soliciting 
opinions from various departments to discuss the establishment of a  joint recognition mechanism 
for GIs.  
EU question No . 73: Could China further elaborate on the recent development and possible new 
steps regarding the es tablishment of a  joint recognition mechanism for GIs?  
Reply: Currently, SAIC is in active communication with the Ministry of Agriculture, the 
Ministry of Commerce and AQSIQ to solicit opinions from related authorities on the 
inter -agency joint coordinatio n mechanism and joint recognition mechanism for GIs in 
order to establish the inter -ministerial joint coordination mechanism for GIs as soon as 
possible, based on which the work program for establishment of joint recognition 
mechanism will be deliberated, and the research and argumentation on joint recognition 
mechanism for GIs will be conducted.  
Paragraph 3.230, page 108  
The report indicates in the last lines of this paragraph that AQSIC also formulated the Measures on 
the Protection of Overseas Geographi cal Indications Products in 2015.  
EU question No . 74: Could China indicate whether such measures are also in place as regards the 
procedures before the Ministry of Agriculture, and, in case that this is not the case, by when such 
measures will be adopted?  
Reply: The geographical indication management provisions formulated by the Ministry of 
Agriculture have a different scope of application from those formulated by AQSIC. 
Currently, the Ministry of Agriculture is formulating the provisions for protecting 
overseas agricultural products ' geographical indications.  
3.3.7.3 Copyright and related rights   
Paragraph 3.231, page 109  
The report indicates that Chinese copyright covers performance and broadcasting rights . 
EU question No . 75: This statement only applies  to composers and lyricists, but not to record 
producers and performers who do not enjoy performance and broadcasting rights under the WT/TPR/M/3 42/Add.1  
 
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  present law. Could China confirm whether it intends closing this gap of protection with the pending 
copyright law reform?   
Reply: The amendment of the copyright law has been included in 2016 Legislation Plan 
of the State Council. China will extensively solicit and have an in -depth study of opinions 
from all parties, and actively advance the legislation progress. Refer to 
http://www.chinalaw.gov.cn/article/cazjgg/ 201406/20140600396188.shtml  for the 
amendments of the Copyright Law . 
3.3.7.4.3 Undisclosed information and trade secrets   
Paragra ph 3.241, page 111  
The report mentions that the area of undisclosed information and trade secrets is covered under a 
number of laws and regulations , rather than a specific law.   
EU question No . 76: Considering that the assurance of confidentiality (partie s involved, 
documents, access to proceedings, decisions) is a key aspect in trade secrets proceedings, could 
China explain whether any of the laws and regulations mentioned in the report covers this specific 
aspect?  
Reply: As for the litigations involving  trade secrets of the parties concerned, there are 
explicit provisions in the Civil Procedure Law of the People 's Republic of China . It is 
stipulated in Article 68 thereof that, "evidence that involves State secrets, trade secrets 
and personal privacy shal l be kept confidential. If it needs to be presented in court, such 
evidence shall not be presented in an open court session ". Article 134 provides that, civil 
cases shall be tried in public, except for those that involve state secrets or personal 
privacy o r are to be tried otherwise as stipulated by the law. Article 156 provides that, 
the public may have access to legally effective judgments or orders, except for those 
that involve state secrets, trade secrets or personal privacy. In the judicial practice, the 
people 's court may also protect the trade secrets disclosed by the parties concerned in 
the litigation by asking the parties concerned to sign the Confidentiality Undertaking or 
restricting the access of the other parties.  
It is provided in Article 12  of the Civil Servant Law of the People 's Republic of China  that 
civil servants shall fulfil the following obligations: (6)  Keeping the secrets of the state 
and the secrets relating to his work confidential.  
It is explicitly stipulated in Article 10 of th e Several Provisions on Prohibiting 
Infringement upon Trade Secrets  formulated by the SAIC that, the state organs and the 
public servants shall not disclose, or permit others to use, the trade secrets of the owner 
during the performance of official duties.  The case investigators of administrative 
authorities of industry and commerce shall keep the trade secrets of the owner 
confidential when supervising or inspecting the unfair competition behaviours that 
infringe upon trade secrets.  
3.3.7.5.3 Judicial enf orcement   
Paragraph 3.252, page 113  
The report describes the establishment of IP Courts in Beijing, Shanghai, and Beijing .  
EU question No . 77: Could China indicate whether it does intend to establish additional IP Courts in 
other municipalities, province s, or autonomous regions or a limited number of IP Appeal Courts?  
Reply: The Supreme People's Court is currently studying and promoting the 
establishment of national -level IP High Courts as the appeal juridical court for cases 
relating to technologies suc h as patents. Currently, there are no clear plans for the 
establishment of more IP courts in other regions.   WT/TPR/M/3 42/Add.1  
 
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  4 TRADE POLICIES BY SECTOR   
4.1 Agriculture   
4.1.3 Policy instruments   
4.1.3.1.2 Measures affecting exports   
Paragraph 4.14, page 118  
According to press reports China has decided to phase out the guaranteed price for maize as from 
the 2016 harvest.  
EU questions No . 78-80: Is there any specific subsidy scheme foreseen to compensate maize 
growers for the elimination of the institutional price? Can sta te maize stocks (which were 
purchased at the previous guaranteed price) be sold at a lower price than the original buying -in 
price? Could the Chinese delegation provide clarifications on how this selling price is fixed?  
Reply: China began to reform the mai ze procurement system in 2016, eliminating the 
temporary maize stockholding. Direct payments will be made as compensation to the 
maize growers in Heilongjiang, Jilin, Liaoning and the Inner Mongolia Autonomous 
Region. The maize stock will be properly handl ed, and selling price will be determined by 
market conditions.  
The report states that exports of cotton, rice, maize, and tobacco are subject to state trading. In 
relation to export finance, insurance, and guarantees:  
EU question No . 81: Following the ad option of the Nairobi Ministerial Decision on Export 
Competition which established specific rules for agricultural export financing and of which China 
was an active negotiating party, could China specify to which extent have the China Eximbank and 
SINOSURE  provided export financing support to the exports of agricultural products?  
Reply: China Eximbank will continue to provide working capital loans for exporters of 
agricultural products. However, according to the Nairobi Ministerial Decision on Export 
Compe tition, the working capital loans are not covered by the disciplines, and the above 
loans are not bound by the export financing provisions.  
SINOSURE will continue to provide insurance support and service for exporters of agricultural 
products with short -term export credit insurance. It will implement active underwriting policies on 
the basis of prudent prevention of systemic risks.  
4.1.3.2 Internal measures   
4.1.3.2.1 Support measures   
The report refers to internal support measures for Agriculture. The EU  would be grateful for the 
following clarifications:   
EU questions No . 82-83: Could China indicate all the products for which a minimum procurement 
price has been in place 2011 to 2015 and indicate the minimum price set by NRDC? Furthermore, 
could China in dicate the quantity bought annually for each of these products 2011 to 2015?   
Reply: The policy of minimum procurement price applies only to wheat and rice. The 
quantity concerned will be specified in the relevant domestic support notifications.  
EU questi on No . 84: China has recently announced the end to the floor price system for maize. 
Can China indicate the quantity of maize production benefitting from this system in the years 2011 
to 2015?  
Reply: There is no such policy called "floor price system ". From 2011 to 2015, corn was 
subject to temporary procurement and stockholding system.  
EU question No . 85: Could China indicate the amount of subsidy paid out in the pilot basis in 
Xinjiang and the subsidy level per tonne of cotton produced, clarifying also w hat are the target 
prices and subsidy amounts for cotton in nine other provinces in China where the new cotton 
subsidy system was extended?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The target prices are 19800, 19100 and 18600 yuan per ton respectfully, and the 
subsidy level is differ ent between the target price and the selling price. There  is no 
target price support for cotton produced outside of Xinjiang, payments at fixed rate of 
2000 yuan per ton was provided instead.  
EU questions No . 86-88: Could China confirm that state reserves of cotton are released at market 
prices, not lower than the comparable price charged in the domestic market?  
Reply: The reserves of cotton are released by auction at such a price as determined by 
the buyer according to market conditions and the quantity it needs. Therefore, the 
selling pric e is the market price. According to the previous transactions, the price of the 
reserves of cotton was not lower than that of the new cotton during the same period.  
In relation to subsidies provided under the Agriculture Insurance scheme:   
 Can China indic ate which types of risks are covered by this scheme? What was the 
budgetary outlay for this scheme in each of the years 2011 to 2014?   
 Can China indicate the interest rate level granted by PNOC to rural area and the rate 
level in non -rural areas?  
Reply: A ccording to the Agriculture Insurance Act, the insurance agency engaged in 
agriculture insurance shall be responsible for their own management decisions, profits 
and losses, and formulation of agriculture insurance provisions and rates. The insurance 
liability (types of risk coverage) is stipulated in the insurance clause of the insurance 
contract, which shall be independently drafted by the insurance companies and free 
from the intervention of financial authorities.  Currently, the agriculture insurance mai nly 
covers force -majeure natural disasters such as storms, floods and droughts, etc.  
The People's Bank of China provides relending with the same interest rate to rural and 
non-rural areas.  
4.2. Services  
4.2.1.2 Regulatory framework   
Paragraph 4.33, page 125 
On 28 December 2015, the Ministry of Industry and Information Technology (MIIT) released the 
final version of its new Telecommunications Business Catalogue (2015 Edition).  According to the 
report, the regulatory framework for telecommunication services  in China has only marginally 
changed since the last Review.   
EU question No . 89: Could China explain what measures does it intend to adopt for the revision of 
measures like the MLPS (Multi -Level Protection Scheme) for the classification of all IT systems,  
under which only cryptography -based IT products certified by OSCCA can be used for applications 
in the banking sector, in the insurance sector and in the public sector?  
Reply: Article 56 of Provisions on Information -oriented Regulation on Insurance 
Agenc ies (opinion soliciting draft) provides that, insurance agencies shall conduct 
rating, protection, filing, appraisal and rectification according to the information system 
security specifications, technical standards and hierarchical protection management 
requirements of the State and CIRC, in order to secure the safety protection capability of 
information systems at various levels.  
Article 18 of the Counter -terrorism law provides that telecommunications operators and internet 
service providers shall provid e technical interfaces, decryption and other technical support 
assistance to public security organs.  
EU questions No . 90-92: How does this technical interface work in practice? Will Chinese law 
enforcement authorities have a permanent access to all "clear " data in real time and without 
restriction via this interface ("permanent backdoor") or will such access be of an ex post nature on 
the basis of well -defined requests? What guarantees have data subjects that their personal data WT/TPR/M/3 42/Add.1  
 
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  will not be misused by auth orities? What are the remedies available to data subjects in case of 
abuse?  
Reply: At present, Internet has been an important tool for terrorist organizations and 
terrorists to organize, conspire and implement terrorist crimes. In view of the actual 
probl ems and urgent needs in China 's combat against terrorists, by reference to 
legislation experience from U.S.A., Russia and European Union, etc., Counter -terrorism 
Law of the Peo ple's Republic of China  provides that telecommunication business 
operators and internet service providers shall offer such support and assistance as 
technical interface and decryption to the public security authorities and national 
securities who prevent and investigate terrorist activities according to laws. It is an 
international practice to support the public security authorities and national securities 
with technical interface for them to prevent and investigate terrorist activities according 
to laws. The technical interface is not a kind of so -called backdoor and can better 
protect personal data and prevent abuse. In the process of formulating related technical 
interface standards, we also refer to the international standards formulated by such 
organiz ations as European Telecommunications Standards Institute (ETSI) and 
3G Partnership Project (3GPP).  
Paragraph 4.42, page 127   
The report elaborates on value -added telecom business licenses including the newly introduced 
MVNOs.   
EU question No . 93: Telecom service operators who were previously not subject to licensing 
requirement und .er the 2003 Catalogue may now have to apply for a license or face consequences 
of unauthorised operation. Does China intend to allow for a grace period and grandfathering 
(exemp tion) treatment for existing players in the market, particularly for those that are invested in 
by foreign entities?  
Reply: The operators providing telecommunication services in the territory of China 
must abide by related laws and regulations of China an d provide service in line with 
related provisions, and conduct business according to laws and regulations.  
EU question No . 94: Could China elaborate as to whether Mobile Virtual Network Operators  
(MVNO) licenses may be available also to foreign -invested en terprises now that the MVNO pilot 
phase has come to a conclusion?   
Reply : With a view to further stimulating the vitality of telecommunication market, 
encouraging and guiding the private capital entry into telecommunication, China 
launched the pilot work o f resale service for mobile telecommunication on May  17, 2103. 
At present, there are 42 private enterprises that have obtained the approval documents 
for the pilot work and have accumulated a total number of over 30 million users. 
Recently, aiming at the n oticeable problems expressed by the market and users as real -
name registration, junk SMS, crank calls, we are organizing internal inspection and 
rectification within enterprises engaged in mobile telecommunication resale business for 
standardization and re gulation. Upon the implementation of the above work, we will 
introduce official commercial proposals to open the business to other Chinese -invested 
and foreign -invested enterprises not included in the pilots.  
EU question No . 95: Could China elaborate on th e share of value -added telecom business licenses 
held by foreign -invested enterprises among the reported 24,001 such licenses?   
Reply: Currently, there are 35 foreign -invested enterprises holding value -added telecom 
business licenses in China.  
4.2.2 Financ ial services  
Paragraph 4.44, page 127   
The report states that the financial services regime in China has remained largely unchanged since 
the last TPR and that there are still caps on ownerships for all financial services. In banking China WT/TPR/M/3 42/Add.1  
 
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  currently appli es a 20% cap per foreign shareholder in Chinese banks and a 25% cap for collective 
foreign investors which are not listed in China's GATS schedule. On insurance, there is foreign 
ownership cap of 50% for life insurance companies. Foreign Mutual funds and a sset management 
companies can only conduct publicly offered securities investment fund business if they  establish 
joint ventures with local firms, where the foreign investor's share does not exceed 49%.   
EU question No . 96: When will China remove ownership  caps for foreign financial operators?   
Reply: It is explicitly put forward in China 's "13th Five-Year Plan " to open more fields 
and relax access limitations and expand market access for such financial sectors as 
banking, insurance and securities. China wo uld like to consult with various parties 
regarding mutual opening of financial market under the bilateral and multilateral 
frameworks .  
4.2.2.2 Regulatory framework for banking   
Box 4.2, page 128   
EU question No . 97: Could China please give a further break down under 'Number and type of 
commercial banks' of the number of banks which are fully State -owned, majority State -owned, 
partially State -owned?  
4.2.2.5 Regulatory framework for mutual funds and asset management companies  
Paragraph 4.83, page 137   
The p aragraph does not mention that China has allowed funds established in Hong -Kong to be sold 
cross-border into China under the so -called "Mainland -Hong Kong Mutual Recognition of Funds" 
agreement implemented since July 2015.   
EU question No . 103: Will China open the possibilities offered to investment funds established in 
Hong-Kong to be sold cross -border into its territory to funds established in WTO member 
jurisdictions other than Hong -Kong, in particular if China considers that the regulatory and 
superviso ry framework of the jurisdictions in which those funds are located offers equivalent 
guarantees regarding financial stability and the integrity of financial markets compared to its own 
legal framework?   
Reply: According to the unified arrangement of China capital market for opening up, 
China Securities Regulatory Commission and Securities and Futures Commission of Hong 
Kong smoothly carried out the mutual fund recognition. Currently, China hasn 't carried 
out the mutual fund recognition with other countries or regions.  
WT/TPR/G/342  
2 ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION   
2.3.2 Accelerating the development of the service sector   
Paragraph 2.20, page 7   
The Chinese government has been creating more favorable conditions to further a ttract foreign 
capital in the service sector.   
EU question No . 104: Could China provide more details about the opening of its services sectors to 
foreign competition? Which restrictions have been lifted in sectors such as manufacturing 
(services), health c are or legal services?  
Reply: Opening up is a basic long -term state policy that China adheres to and China 
welcomes any foreign capital enterprise that meets conditions and conforms to Chinese 
law. Chinese government mainly takes the following measures to  encourage foreign 
capital enterprises to join in domestic market: First, to further open up the market, relax 
foreign investment access restrictions in the service sector and provide free access to 
the general manufacturing industry. Second, to speed up t he reform of foreign 
investment management system, and promote the foreign investment management 
system of pre -establishment national treatment plus negative list for a trial. Third, to WT/TPR/M/3 42/Add.1  
 
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  continuously improve investment environment, further intensify the pro tection of 
intellectual property rights, protect the lawful rights and interests of foreign investors in 
accordance with the law, and provide stable, transparent and predictable law 
environment to foreign investors. Take Catalogue for the Guidance of Forei gn 
Investment Industries (2015 Revision)  as an example. Firstly, the items under the 
restricted category are greatly reduced from 79 items in 2011 to 38  items. Secondly, the 
foreign capital stock proportion is relaxed, with items under the "equity joint an d 
contractual joint ventures " reduced from 43 items in 2011 to 15 items and items under 
"China holdings " reduced from 44 items in 2011 to 35 items. Thirdly, 76 items under the 
encouragement category are modified, with main aim to adjust the indicators, opt imize 
the structure, encourage foreign investors to use new technologies, new techniques, 
new materials and new equipment, and further raise the quality of foreign investment.  
2.3.5 Advancing transformation and upgrading of traditional industries and energ y 
conservation and emission reduction   
Paragraph 2.29, page 9   
The report states that the Chinese government is proactively dissolving excess and outdated 
production capacity in steel, cement, electrolytic aluminum and other industries of high energy 
consu mption and high emission.   
EU questions No . 105-107: How many million metric tons of steel capacities have been 
permanently closed/reduced during the period covered by the 12th Five year Plan? How does this 
capacity reduction fit with the objectives of the  12th Five year Plan and Circular 41 issued in 
October 2013? Is only outdated production capacity concerned by these reductions? Which policy 
document was at the basis for this capacity reduction of 90mmt?   
Reply: During 12th Five-Year Plan, China accumula tively eliminated over 90 million 
tonnes of crude steel capacity and achieved the target set out in Guidance of the State 
Council on Resolving Serious Overcapacity  (Guo Fa [2013]  No. 41). The reduction target 
is measured by crude steel capacity.  
2.4.4 Refo rm of SOEs and development of the private economy   
Paragraph 2.46, page 12   
The report states that "remuneration distribution systems matching socialist market economy" 
have been adopted.  
EU question No . 108: China should explain the notion of "remunerati on distribution systems 
matching socialist market economy"?   
Reply: The notion of "remuneration distribution systems matching socialist market 
economy " refers to a mechanism of salary decision and normal growth, which is 
basically adapted to labour market and related to corporate economic profits and labour 
productivity. The reform of the remuneration distribution system is an important part of 
deepening SOEs reform, with a focus on the market -oriented reform to develop a more 
scientific, reasonable, sound and orderly income distribution system. Firstly, the 
remuneration distribution system of SOEs at present should encourage incentives as 
well as restraints, and efficiency as well as fairness, accord to general laws of 
enterprises and embody the characteris tics of SOEs. Secondly, the mechanism of wage 
determination and regular increase should be established and improved. Thirdly, the 
mechanism of assessment, distribution, reward and punishment of the entire 
employment should be promoted. Fourthly, the mechan ism of assessment, distribution, 
motivations and restrictions for the leadership of SOEs should be established and 
improved.  WT/TPR/M/3 42/Add.1  
 
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  2.4.6 Deepening reform of financial system  
Paragraph 2.53, page 14  
Since 2015, China has further strengthened the market supply a nd demand -based mechanism that 
adjusts exchange rates in reference to a basket of currencies.   
EU question No . 109: Could China provide clarifications on the composition of the "basket of 
currencies"?   
Reply: On December 11, 2015, China Foreign Exchange Tr ade System released RMB 
exchange rate index and provided the market with a new perspective for observing RMB 
exchange rate. It also released the different currency structures of CFETS RMB exchange 
rate index, BIS Basket RMB exchange rate index, and SDR Bas ket RMB exchange rate 
index, all of which reflected the change of RMB exchange rate more comprehensively 
and in multiple levels. Among them, the currency basket of CFETS RMB exchange rate 
index specifically includes foreign exchange currencies quoted in Ch ina Foreign 
Exchange Trade System, and sample weight is calculated with trade weight in a view of 
entrepot trade factors. Sample currency value is the central parity rate and reference 
rate. BIS Basket RMB exchange rate index mainly refers to BIS Basket an d its sample 
currency weight adopts BIS Basket weight. SDR Basket RMB exchange rate index mainly 
refers to SDR Basket and its sample currency weight is calculated with the relative 
weight of sample currencies in SDR Basket.  
Paragraphs 2.55 and 2.56, page 1 4  
The report states that process of RMB convertibility under the capital account has advanced 
steadily.   
EU questions No . 110-112: Could China provide information on the next steps regarding RMB 
convertibility? Can we have more details on plans to connect  the mainland bond and capital 
markets with other financial places? How will RQFII pilot programmes evolve – procedures and 
scope – in the light of recent granting of a quota to the USA?   
Reply: Regarding the connectivity between domestic and foreign capit al markets, in 
November of 2014, Shanghai -Hong Kong Stock Connect program was initiated and 
investors both in Hong Kong and mainland China can invest in each other 's stock market 
under certain conditions. Since the launch of Shanghai -Hong Kong Stock Connec t pilot 
program, the market has generally been stable and orderly and widely recognized by the 
investors. Premier Li Keqiang in the Report on the Work of the Government in 2016  
explicitly put forward the timely launch of Shanghai -Hong Kong Stock Connect pr ogram 
and relevant authorities are actively studying and completing the pilot plan, which is 
expected to be implemented in this year and thus to be another important channel for 
the connectivity between domestic and foreign capital market.  
Regarding the c onnectivity between domestic and foreign bond markets, The People 's 
Bank of China has always been actively promoting the opening up of bond market. In 
terms of bond issuance, foreign entities including overseas sovereign institutions, 
international develop ment agencies, financial institutions and non -financial institutions 
are all allowed to issue the bonds. As of the end of June 2016, various foreign 
institutions have accumulatively issued RMB 33.1 billion bonds in China. Meanwhile, 
qualified domestic fina ncial institutions may issue bonds in all countries (regions). In 
April 2016, The People 's Bank of China released Circular on the Implementation of Macro 
Prudential Management of Full -caliber Cross -border Financing across the Country , which 
includes the ov erseas bond issuance by domestic financial institutions in the macro and 
prudential management framework.  Domestic financial institutions may independently 
develop cross -border financing of RMB and foreign currencies including bonds according 
to relevant r egulations and are provided with the convenience for overseas bond 
issuance. In terms of bond trade, The People 's Bank of China has released the Notice of 
the People's Bank of China (No. 3, 2016) (hereafter referred to as Notice ) and relevant 
supporting de tails since 2016 to attract more qualified foreign institutional investors, 
cancel the limit on the amount, and simplify the management procedure. According to WT/TPR/M/3 42/Add.1  
 
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  the Notice , various financial institutions registered outside the People's Republic of 
China acc ording to laws such as business banks, insurance companies, and bond 
companies which issue investment products to clients according to laws and relevant 
regulations and medium and long term institutional investors like pension funds, 
charitable funds, endo wment funds and so forth may also enter bond market between 
banks in the form of filing, independently decide the investment scale, and carry out 
spot transactions in bond market between banks and other transactions like bond 
lending, bond forward, forward  rate agreement and interest rate swap on the basis of 
hedging demand. The above qualified foreign institutions may complete filing, account 
opening, and other formalities through interbank market clearing agents, thus becoming 
interbank bond market partic ipants and conducting transactions based on their own 
demands.  
Regarding RMB Qualified Foreign Institutional Investors (hereafter referred to as 
RQFII),  in December 2011, China launched RQFII pilot program, which allowed qualified 
foreign institutions to i nvest in domestic bond market with RMB capital from the foreign 
countries. The pilot program started from Hong Kong and then gradually extended to 
other countries and regions, playing an active role in promoting the development of 
offshore RMB markets and expanding the opening up of China capital market. Up to now, 
it has been extended to 17 countries and regions with a total investment of 
RMB 1.46 trillion, among which the US obtained RMB 250 billion of investment in June of 
this year. Recently, China has introduced a series of facilitation measures for foreign 
investors who enter China financial market. For example, the first notice of 2016 that 
the State Administration of Foreign Exchange released in February 2016 substantially 
relaxes and simplifies the management requirements for RQFII domestic bond 
investment. Next for the RQFII system, China will further expand the pilot scope and put 
forward more facilitation measures regarding aspects such as institutional access and 
amount management.  
Paragraph 2.57 , page 14  
The reform of financial institutions moved further. On 1 May 2015, the Regulations on Deposit 
Insurance were implemented and the deposit insurance system was officially established in China.  
EU questions No . 113-114: Could China provide details o n the deposit insurance fund (contribution 
system, amount of the fund, trend)? Could China provide information on the development of the 
legal framework on resolution?   
Reply: For deposit insurance, a system combining benchmark interest rate and risk 
differential rate is adopted. The rate shall be stipulated and adjusted by the deposit 
insurance fund management organization according to economic and financial 
development, deposit structure, accumulative level of deposit insurance fund and other 
factors, and  carried out after the approval of the State Council. Premium of deposit 
insurance shall be paid by the insured banking financial institutions instead of 
depositors. Applicable rates of the insured institutions shall be determined by deposit 
insurance fund  management organization based on the business management status 
and risk status of the insured institutions. The rate system which combines benchmark 
interest rate and risk differential rate shall help to facilitate fair competition, form 
positive motivat ion, strengthen market restrictions on the insured institutions, and urge 
them to operate prudentially and grow healthily. (If The People 's Bank of China provides 
related materials, additional information can be added here.) Regarding the 
development of le gal framework of resolutions, The Law of the PRC on Commercial 
Banks , the Law of the PRC on Supervision over the Banking Industry , and the Law of the 
PRC on Enterprise Bankruptcy  have provided principle stipulations on the framework 
and specific system for  the bankruptcy risk management of financial institutions in the 
banking industry. In order to improve risk management and market -oriented withdrawal 
system of financial institutions in the banking industry, China Banking Regulatory 
Commission prepared Regulations on Commercial Bank Bankruptcy Risk Management  
(Draft) on 11 February 2014) and submitted it to the State Council for approval. After 
the release of Regulations on Deposit Insurance  in 2015, in order to keep up with it, 
China Banking Regulatory Com mission adjusted and revised the framework and related 
content of the Draft according to the latest regulatory requirement of Financial Stability WT/TPR/M/3 42/Add.1  
 
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  Board for the effective management of financial institutions and legislative and reform 
experience of foreign banks on risk management. The legislative guiding ideology of 
Regulations on Commercial Bank Bankruptcy Risk Management is to realize orderly 
disposal of troubled banks in order to further prevent and control banking risks, reduce 
financial burden and curt ail moral hazard to build a fairer and more transparent market 
competition environment.  
3 TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
3.2 Promoting Foreign Trade Innovation and Development  
3.3.1 Optimizing the utilization of foreign investment wh ile opening wider to the outside 
world   
Paragraph 3.32, page 20   
China states that it has by and large opened up the general manufacturing sector by lifting 
restrictions on equity ratio for steel.  
EU question No . 115: Does this mean that there is no longer  any cap on shares of equity 
ownership in the Chinese steel sector?   
Reply: According to Catalogue for the Guidance of Foreign Investment Industries , there 
is no equity ratio restriction on foreign investment in the steel industry. China believes 
that the issue of steel overcapacity is a prevalent problem in the global steel making 
countries, as well as a common challenge for all nations. As a major power producer, 
consumer and trade of steel, China is dedicating tremendous efforts and spending 
enormous cos t to eliminate steel overcapacity. During the 12th Five-Year Plan period, 
over 9 ,0 million tonnes of backward capacity had been eliminated. Another 
100-150 million tonnes of crude steel capacity will be reduced in the following 
five years, involving the em ployment of 500,000 personnel. The measures taken by 
China and the remarkable results achieved have been obvious to all and won wide 
recognition and high appreciation. China hopes that more countries would take active 
measures suitable to their own nationa l situation and development stages and make 
joint contributions to the elimination of steel overcapacity worldwide.  
Additional questions  
General questions (stemming from the Chinese industrial policies)  
EU questions No . 116-117: The opinions on supporting  overcapacity reduction and turning the 
steel and coal industries around (issued on 21 April 2016) provides that the banks and financial 
institutions should continue to provide support to modern enterprises that are temporarily facing 
difficulties, but tha t are committed to reforms. How the Chinese authorities will guarantee this 
support will not result in capacity expansion? Does China intend to notify the support provided 
under this provision to the WTO?   
Reply: The relevant credit policy measures in the Opinions fall into macro economic 
regulation. While encouraging banking financial institutions to support the development 
of real economy according to the economic environment and industrial transformation 
and upgrading, the government respects and safegua rds the market player status of 
banking financial institutions, and supports them to allocate credit resources in a 
market -oriented manner.  
EU questions No . 118-121: The Ministry of Finance (MoF) put in place a 100  bn yuan fund to 
encourage local governmen ts, enterprises, banks and other creditors to complete market clearing 
by means of merging and reorganisation, debt restructuring and bankruptcy liquidation. Is it 
correct that the fund will be exclusively linked to reduction of capacity and resettlement o f eligible 
workers? What are the parameters on which the size of this fund has been based? In May 2016, 
the Ministry of Finance issued "2016 Structural adjustment special funds". Are these funds 
additional to the 100 bn yuan fund or they are part of the sa me fund? Does China intend to notify 
these measures to the WTO?   WT/TPR/M/3 42/Add.1  
 
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  Reply: The said measure is a concrete step taken by China to address excess capacity, 
and jointly tackle the difficulties faced by certain global industries with all countries. 
China will eva luate seriously whether the measure should be notified in accordance with 
the requirements of the SCM Agreement. If it does not apply to a specific industry, 
product or region, then the subsidy does not need to be notified.  
20  EUROPEAN UNION (FOLL OW-UP) 
Summa ry 
Paragraph 2, page 8  
EU initial questions No . 1-4: Could China clarify whether its plan to reduce its crude steel 
production capacity by  between" 100 -150 million metric tons  (mmt)over the coming 5 years is a 
compulsory objective and what is the phase out  sequencing over the 5 coming years?  Which are 
the specific targets of reduction by local governments/individual enterprises and the sanctions 
foreseen in case the targets are not met?  Could the Chinese authorities explain the underlying 
parameters  (notabl y production/consumption/exports and import volumes)  on the basis of which it 
was decided that this net reduction will be appropriate and sufficient to tackle the excess capacity 
problem of the Chinese steel sector?  Could the Chinese authorities explain th e monitoring 
mechanism put in place to ensure the implementation of this target?  
Reply:  In recent years, China has vigorously pressed ahead with the reduction of steel 
production capacity and has already achieved significant results. On this basis, the Sta te 
Council has set the following goal:  starting from 2016, another 100 to 150 million tons 
of production capacity of crude steel will be reduced in five years so as to optimize the 
rate of capacity utilization. The Chinese Government will work together wit h the 
industry to enhance overall consideration and coordination, strengthen supervision and 
examination, and implement the measures put forward by the Guiding Opinions.  
The Opinions of the State Council on Reducing Excess Capacity in the Steel Industry to  Achieve 
Development by Solving the Difficulties(Guo Fa  [2016]  No. 6)  requires that the market should 
serve as a check, the role of enterprises as the major actors be brought into full play, and efforts 
be made to ensure the exit of steel capacity that can not meet the requirements according to laws 
and regulations, through strict implementation of laws, regulations and industrial policies on 
environmental protection, energy consumption, quality, safety and technology. The equipment of 
obsolete capacity must  be dismantled. Law enforcement and supervision should be strictly 
implemented, the  blacklist of bad records be timely released for better information disclosure and 
publics supervision. Support should be provided to the hiving -off and reemployment of pers onnel 
as a result of local endeavour to reduce overcapacity.  
EU follow up question:  The EU thanks the Chinese authorities for this answer. However, we 
consider that it does not fully cover our initial questions and we would like to insist on these 
question s and that China submits detailed information as requested in our initial questions.  
Reply: that the goal of reducing another 100 to 150 million tons of production capacity 
of crude steel in five years will be attained. The Opinions of the State Council on  
Reducing Excess Capacity in the Steel Industry to Achieve Development by Solving the 
Difficulties  (Guo Fa [2016] No. 6) has made clear two important ways to reduce excess 
capacity: one is exit according to laws and regulations, and the other is guided vol untary 
exit. Those that should exit under laws and regulations must exit; and those that can be 
guided to exit voluntarily, may be encouraged to do so as soon as possible through 
reasonab le policy measures. In 2016, China's  goal is to reduce the crude stee l 
production capacity by about 45 million tons. Currently, implementation measures on 
addressing excess capacity in the steel and iron industry have been developed by 
relevant regions, making clear the overall arrangement for the regions during the 
13th Five-year Plan period. According to the requirement of the State Council, 
25 departments including the National Development and Reform Commission and the 
Ministry of Industry and Information Technology have established the Inter -ministerial 
Joint Meeting Mec hanism on Addressing Excess Capacity in the Steel and Iron Industry 
to Achieve Development by Solving the Difficulties, to comprehensively promote the 
fulfilment of major tasks and policy measures. As for the underlying parameters, WT/TPR/M/3 42/Add.1  
 
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  according to the Nationa l Bureau of Statistics, in 2014, China's  crude steel production 
capacity was 1.13 billion tons; and when the 100 to 150 million worth of reduction is 
achieved, the rate of capacity utilization will be within a reasonable range.  
1 ECONOMIC ENVIRONMENT  
1.2.2  Structural reform measures  
Paragraph 1.17, page 20  
EU initial questions No . 11-12: What control and sanction mechanisms are in place to ensure that 
local authorities will not approve new projects in sectors affected by overcapacity?  What are the 
correctiv e/sanction mechanisms in case such projects are nevertheless carried out as seems to 
have been the case with new investment projects, expanding the steelmaking capacity, realised 
after the adoption of the Guiding Opinions on resolving overcapacity  (Circula r 41)?  
Reply:  Document Guo Fa  [2013]  No. 41 explicitly provided that any local government or 
department shall not, in any name or in any form, approve or put on file any new project 
that will bring extra production capacity to the industry already with sev ere 
overcapacity, and relevant department or institutions shall not proceed with provision of 
land(sea area), energy efficiency assessment or environment impact assessment;  with 
respect to the project construction in industries with serious overcapacity, a  production 
capacity displacement plan shall be prepared for equivalent replacement or reduction. 
Circular of the State Council on Issuing the Catalogue of Investment Projects Approved 
by the Government(2014 Version)  (Guo Fa  [2014]  No. 53)  requires that pr ojects in 
industries with severe excess capacity, such as iron and steel, electrolytic aluminium, 
cement, plate glasses and vessels are strictly subject to the relevant provisions of the 
Guiding Opinions of the State Council on Resolving Serious Overcapaci ty Conflicts  
(Guo  Fa [2013]  No. 41). Containing overlapping construction and resolving serious 
overcapacity conflicts has been included in local governments performance appraisal 
indicator systems, third -party agencies have been introduced to assess the 
accomplishment of objectives by various local authorities, and the local authorities and 
enterprise failing to fulfill the tasks shall be held accountable.  
EU follow -up question:  Is it correct to understand that there are neither control nor sanction 
mechani sms?  
Reply: The Guiding Opinions of the State Council on Resolving Serious Overcapacity 
Contradictions  (Guo Fa [2013] No.  41) and Document Guo Fa [2016] No.  6 have made 
clear the relevant supervision and inspection requirements. Document Guo Fa [2013] 
No. 41 has explicitly provided that provincial governments take overall responsibilities 
for resolving serious overcapacity. Containing overlapping construction and resolving 
serious overcapacity have been incorporated into the appraisal indicator system for 
Local governments performance, third -party agencies have been introduced to assess 
the accomplishment of objectives by various local authorities, and the local authorities 
and enterprise failed to fulfil the tasks will be held accountable.  
2 TRADE AND INVES TMENT REGIME  
2.5 Foreign Investment Regime  
2.5.2 Examination and approval procedures  
Paragraph 2.34, page 40  
EU initial questions No . 20-22: Could China clarify which are the so -called sensitive countries and 
industries in which verifications have not been  abolished for the foreign -investment projects?  
Could China give an overview of the main criteria followed for the approval of foreign -invested 
projects involving  huge" overcapacity?  Do the authorities apply the same criteria  (to obtain 
approval)  to both f oreign and domestic investments in the steel sector?  
Reply:  China employs the same approval standard on both domestic and foreign 
investments in industries of serious overcapacity. According to the Administrative 
Measures for the Verification and Approval and the Record -Filing of Foreign Investment 
Projects  (NDRC  [2014]  No. 9), sensitive countries and regions refer to those with no 
established diplomatic relations or subject to international sanctions, and those in wars WT/TPR/M/3 42/Add.1  
 
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  or civil strife;  sensitive industries  refer to such industries as basic telecom operation, 
cross -border water resources development and utilization, large -scale land 
development, electricity transmission lines, power grids and news media.  
EU follow -up question : China, in its replies, declared  that it employs the same approval standards 
on both domestic and foreign investment in industries of serious overcapacity without nevertheless 
giving any indications of the criteria followed for the approval of those projects. Referring to our 
previous qu estions, could China give an overview of the main criteria followed for the approval of 
foreign -invested projects involving  huge" overcapacity?  
Reply: In industries of serious overcapacity, the same industrial policies apply to both 
domestically - and forei gn-invested projects, i.e. the various policy measures on 
industries of serious overcapacity issued by the Central Government apply equally to 
domestically - and foreign -invested projects.  
TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.9 Sanitary and phytosani tary requirements  
Paragraphs 3.91 and 3.30  
In April 2016, AQSIQ informed third countries about the introduction of a new certificate needed to 
import food products in China. This Certificate must be issued by the competent authorities on 
food security of t he exporting country as of 2017. This certificate will be needed for all kind of food 
products, with no consideration to specific risk of different kinds of products and it may also imply 
the duplication of certificates.  
EU initial questions No . 34-36: Could China submit additional clarifications on this new 
requirement specifying why it did not notify the measure to the WTO?  Why has not  China 
considered the possibility of graduating this requirement in order to take into account different 
levels of risk as sociated with different food products?  Could China clarify whether alcoholic 
beverages will also be submitted to those additional certification requirements?  
Reply:  China established the administrative system for imported foods on the basis of 
Food Safety Law and other relevant laws and regulations and by referring to 
internationally prevailing practices. Before a significant measure is issued, China always 
seeks public opinions and notifies it to the WTO. Alcoholic beverage products should be 
subject to th is stipulation.  
EU follow -up question:  In relation to alcoholic beverages, has China assessed the associated risk 
for this type of products?  Could China explain the reasons why a new and additional certificate 
must be provided by the food security authorit ies of the exporting country for this type of 
products?  
Reply: As for the certificate needed to import  alcoholic beverages, China and EU have 
communicated and held seminars. Next China will carefully study relevant opinions and 
improve relevant measures.  
3.3.2 Competition policy  
3.3.5.2 State -owned enterprises  (also Government report)  
EU initial questions No . 51-53: Could China explain what measures are envisaged for ensuring a 
level playing field and non -discrimination between SOEs and private enterprises,  highlighting, in 
particular, whether SOEs will be subject to the same rules and regulations as other economic 
operators with regard to access to financing, including subsidisation, bankruptcy and competition 
legislation?  Could China submit details on how SOEs have been divided into commercial and non -
profit?  Could China clarify what privileges, if any, do SOEs enjoy?  Could China explain if there are 
specific obligations for SOEs only?  
Reply:  The Chinese government has attached great importance to the fair and just 
market competition of SOEs. After over 30 years of reform, SOEs have experienced 
profound changes in their management system and operational mechanism and, on the 
whole, been integrated into the market economy and become entities independently WT/TPR/M/3 42/Add.1  
 
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  participating in market competition. China has adopts three significant measures in this 
regard:  firstly, deepen the reform to introduce corporate and joint stock systems;  
secondly, accelerate improvements in corporate governance structure;  thirdly, 
continuou sly deepen market -oriented reform of SOEs operational mechanism. SOEs are 
subject to the same rules and regulations as other economic operators in terms of 
access to financing, bankruptcy and competition legislation, without any privileges. 
China treats al l enterprises equally regardless of their ownerships. For instance, the 
legislation with respect to the banking industry of China sticks to ensuring a good 
market order and a fair market competition environment, as specified in Article 9 of the 
Commercial Bank Law : Commercial banks should follow the principle of fair competition 
in their business and should not be engaged in unfair competition. According to the laws 
and regulations, large banks of China currently apply the same risk management in their 
credits to SOEs and other private enterprises. There is no discrimination against private 
enterprises based on the regulatory system or practice. According to the Anti-monopoly 
Law and department functions, the Ministry of Commerce is responsible for the 
anti-monopoly investigation in the concentration of undertakings. Where a SOE is 
involved, it is required to declare pursuant to the law if the threshold is reached. 
MOFCOM treats all enterprises alike and apply to them the same rules, no matter they 
are SOEs, private enterprises or foreign -invested enterprise.  
EU follow -up question:  The EU would reiterate the following question, which has remained 
unanswered:  Could China submit details on how SOEs have been divided into commercial and 
non-profit?  
Reply: As requ ired by the Guiding Opinions on Deepening the Reform of State -Owned 
Enterprises , China divides SOEs into commercial enterprises and public welfare  ones  
mainly in light of the strategic positioning and development goals of state -owned 
capital, and taking in to consideration their different roles, status quos and development 
needs in the socio -economic development. By defining the SOEs different functions and 
categories, pushing for classified reform, development and assessment, the reforms are 
made better tar geted, the regulation more effective and the assessment more scientific, 
SOEs are more deeply integrated into the market economy, and the economic and social 
benefits of the SOEs better united.  Maining with a view to enhancing the vitality of 
state -owned e conomy and preserving or increasing the value of the state -owned assets, 
commercial SOEs conduct commercial operations according to marketization 
requirements, and independently carry out production and business operating activities 
according to law for su rvival of the fittest and orderly entry into and exit from the 
market. Public welfare SOEs take as their major goals  safeguarding people's livelihood, 
serving the society, and providing public goods and services, and introduce market 
mechanism to enhance t he efficiency and capacity of public services.  
3.3.6 Government procurement  
EU initial question No . 62: Could China provide more details on its e -procurement system and 
whether China envisages the establishment of a single point of access to tender notices ? 
Reply:  In 2013, the Ministry of Finance issued the Overall Planning on the Construction 
of National Government Procurement Management Trading System  and the Basic Data 
Specifications for Government Procurement Business , both of which are available on 
www.ccgp.gov.cn  . China has established a mechanism disclosing information from the 
whole government procurement process, including the procurement results. 
Government procurement projects subject to bidding and not subj ect to bidding  
(including single source)  should all disclose information as stipulated.  
EU follow -up question:  Does the mechanism  disclosing information" mean that all the projects 
subject to the Government Procurement Law in China have to be published in the same database, 
at all levels of government(including provincial, municipal levels)?  
Reply: Information on all the projects procured by government of all levels subject to 
the Government Procurement Law  in China is disclosed at www.ccgp.gov.cn  . WT/TPR/M/3 42/Add.1  
 
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  EU initial questions No . 59-60: How does China intend to address domestic -sourcing legal 
requirements in view of its accession process to GPA?  Do the Chinese authorities foresee a legal 
reform on the national public procurem ent legislation?  In this respect, what legal measures is 
China planning?  
Reply:  China is not a member to GPA yet and the law -based administration of 
government is required. In addition, China's  access to GPA would not necessarily mean 
the abandonment of th ebuy domestic provision in the Government Procurement Law. It 
depends on the negotiation results as to whether this provision will not apply to 
contracting parties. The NPC is responsible for legislative amendments in China. No 
information on the amendment  to the Government Procurement Law is available at 
present.  
EU follow -up question : Could China elaborate further how it intends to reconcile  buy domestic 
provisions with a GPA accession?  Would it continue applying it but on non -covered/below 
thresholds pro curement?  
Reply: After China's  GPA accession, the work of adjusting laws will be decided by the 
legislature.  
7.3.7 Intellectual property rights  
3.3.7.2.1 Patents  
Paragraph 3.212, page 105  
EU initial questions No . 66-67: Could China explain how the requirem ent of  substantial content of 
the technical solution is interpreted in practice  (criteria applied)and the understanding of  major 
national projects?  Does Footnote 200 correctly refer in this regard to the National Medium -and 
Long-Term Programme for Science and Technology Development of 2006, or was this programme 
replaced by the 12th Five -Year Development Plan for National Strategic Emerging Industries, 
published on 9 July 2012, or by other programmes?  
Reply:  The scope of  substantial content shall be defined  based on the Claim and 
Specification of a specific application. The 2006  National Medium and Long -term S&T 
Planning , with a period of validity from 2006 to 2020, is an important document guiding 
the S&T innovation in China. The subsequently issued 12th Five-year Plan and 
13th Five year Plan with respect to S&T innovation and strategic emerging industries are 
the implementation of National Medium and Long -term S&T Planning.  
EU follow -up question : the EU thanks the Chinese authorities for this answer. Howeve r we consider 
that it does not fully cover our first question above and therefore we would like to insist on this 
question and ask China to submit the information requested in our initial question, in particular as 
regards the criteria applied for defining  a substantial content" as well the understanding ofmajor 
national project".  
Reply: China thanks the EU for raising the question again, and would like to reiterate 
that the scope of substantial content needs to be defined on a case -by-case basis 
according to the Claim and Specification of a specific application. As for major national 
projects, please refer to the relevant planning documents on S&T development of China.  
3.3.7.4.3 Undisclosed information and trade secrets  
Paragraph 3.241, page 111  
EU initial question No . 76: Considering that the assurance of confidentiality  (parties involved, 
documents, access to proceedings, decisions)  is a key aspect in trade secrets proceedings, could 
China explain whether any of the laws and regulations mentioned in the re port covers this specific 
aspect?  
Reply:  As for the litigations involving trade secrets of the parties concerned, there are 
explicit provisions in the Civil Procedure Law of the People's Republic of China . It is 
stipulated in Article 68 thereof that,  evide nce that involves State secrets, trade secrets 
and personal privacy shall be kept confidential. If it needs to be presented in court, such WT/TPR/M/3 42/Add.1  
 
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  evidence shall not be presented in an open court session. Article 134 provides that, civil 
cases shall be tried in pu blic, except for those that involve state secrets or personal 
privacy or are to be tried otherwise as stipulated by the law. Article 156 provides that, 
the public may have access to legally effective judgments or orders, except for those 
that involve state  secrets, trade secrets or personal privacy. In the judicial practice, the 
people 's court may also protect the trade secrets disclosed by the parties concerned in 
the litigation by asking the parties concerned to sign the Confidentiality Undertaking or 
restricting the access of the other parties.  
It is provided in Article 12 of the Civil Servant Law of the People's Republic of China  that civil 
servants shall fulfil the following obligations:  (6) Keeping the secrets of the state and the secrets 
relating to h is work confidential.  
It is explicitly stipulated in Article 10 of the  Several Provisions on Prohibiting Infringement upon 
Trade Secrets  formulated by the SAIC that, the state organs and the public servants shall not 
disclose, or permit others to use, the trade secrets of the owner during the performance of official 
duties. The case investigators of administrative authorities of industry and commerce shall keep 
the trade secrets of the owner confidential when supervising or inspecting the unfair competition  
behaviours that infringe upon trade secrets.  
EU follow -up question : The EU thanks the Chinese authorities for this answer. However we would 
like to invite China to clarify if the on -going revision of the unfair competition law will also 
encompass this pro tection of undisclosed information and trade secrets.  
Reply: China's  Anti-Unfair Competition Law  contains provisions on trade secrets.  
WT/TPR/G/342  
2 ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION  
2.3.3 Strengthening the protection of in tellectual property rights  
Page 8,  paragraph 2.22 
EU additional question : Could China clarify how this statement is coherent with the enforcement 
numbers presented each year by the National Leading Group for combatting IPR infringement and 
counterfeiting?  The National Leading Group reported in November 2015 that, despite reinforced 
efforts by the Chinese government to fight against intellectual property rights violations and 
counterfeit products, problems still remain  (http://www.chinadaily.com.cn/kindle/2015 -
11/18/content_22481434.htm ). Moreover, the statement is not supported by EU statistics on 
counterfeit goods detained at EU borders  (2014:  80% of those goods had their pr ovenance in 
China)  (http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/ 
counterfeit_piracy/statistics/2015_ipr_statistics.pdf , page 19).  
Reply: During the review period, China has further strengthened its efforts to combat 
IPR infringement and counterfeiting, and made remarkable achievements.  
First, working system has been per fected. The number of member institutions under the 
National Leading Group chaired by the Vice -Premier of the State Council increased from 
26 to 30. The member institutions and the People's Governments at provincial, 
municipal and county levels have all se t up their own Leading Groups and working 
systems. Central and local governments, relevant departments and all walks of life 
cooperate and jointly participate in the work.  
Second, the development of laws and regulations has been promoted. China has 
formula ted laws, regulations and rules that are in line with China's national conditions 
and the WTO Rules, and cover different legal hierarchies and IP issues including 
trademarks, copyrights, patents, trade secrets, new plant varieties, geographical 
indications , layout designs of integrated circuits, etc.  
Third, prominent problems have been addressed. The Leading Group has carried out a 
series of campaigns, resulting in sharp decrease in the production and sale of fake and 
shoddy products. The General Administra tion of Customs of the People's Republic of WT/TPR/M/3 42/Add.1  
 
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  China has severely cracked down on infringement and counterfeiting activities in import 
and export. In 2015, it seized 23,227  batches of infringing products, involving 
69.77  million pieces of goods.  
Fourth, regul ar publicity and education has been strengthened. China annually makes 
publicity plans and about 250,000 relevant media reports are published. It guides public 
opinions and raises public awareness by interpreting policies, demonstrating 
achievements, sprea ding knowledge and disclosing cases.  
Combatting IPR infringement and counterfeiting requires intensified cooperation 
between authorities of the importing and the exporting economies, including through 
information sharing and exchanges. China is willing to enhance cooperation and 
exchanges with the EU.  
2.3.5 Advancing transformation and upgrading of traditional industries and energy 
conservation and emission reduction  
Paragraph 2.29, page 9  
EU initial questions No . 105-107: How many million metric tons of st eel capacities have been 
permanently closed/reduced during the period covered by the 12th Five year Plan?  How does this 
capacity reduction fit with the objectives of the 12th Five year Plan and Circular 41 issued in 
October 2013?  Is only outdated productio n capacity concerned by these reductions?  Which policy 
document was at the basis for this capacity reduction of 90  mmt?  
Reply:  During 12th Five-Year Plan, China accumulatively eliminated over 90 million 
tonnes of crude steel capacity and achieved the targe t set out in Guidance of the State 
Council on Resolving Serious Overcapacity  (Guo Fa [2013]  No. 41). The reduction target 
is measured by crude steel capacity.  
EU follow -up question:  While China indicates to have cumulatively eliminated over 
90 million  tonnes of crude steel capacity, in its report  (page 9,  paragraph 2.30), it is written that  
China has accumulatively closed down backward production capacities of over 90 million metric 
tons in iron -making and steel production ". Could China clarify if these 90 million tons correspond 
to closures in the iron -making and steel sectors or only in the steel sector?  Do these 90 million 
tons correspond to net capacity reduction?  
Reply: The 90 million is the eliminated crude steel capacity. Phasing out backward 
producti on capacities means reduction in the net capacity.  
EU follow -up question:  In its reply above, China declared to have eliminated over 90 million tonnes 
of crude steel capacity during the 12th Five-Year Plan period and to have  achieved the target set 
out in Guidance of the State Council on Resolving Serious Overcapacity  (Guo Fa [2013]  No. 41)". 
Could China explain the articulation between the objectives for capacity reduction set up in the 
12 Five Year plan and the circular 41?  
Reply: The 90 million tons have  exceeded the elimination goal set in the 12th Five-year 
Plan. And the  90 million tons is the amount of backward production capacities that have 
already been phased out.  
EU follow -up question:  as already asked in our previous questions, could also China cl arify whether 
it is only outdated production capacity concerned by this reduction of 90 million tons?  
Reply: The 90 million tons is the amount of backward production capacities that have 
been phased out.  
3.4.4 Enhancing South -South Cooperation  
Paragraph 3. 60, page 25  
EU additional questions:  in January 2016, China set up a new cooperation fund with Africa  (China -
Africa Cooperation Fund). Could China clarify the differences between this new fund and the China 
Africa Development Fund?  Could China submit detai ls on the new cooperation fund, notably the WT/TPR/M/3 42/Add.1  
 
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  source of financing, the modalities for granting assistance, the criteria for the selection of the 
projects, the duration of the subventions and the sectors eligible under the fund?  
Reply: The accurate name of th e fund is China -Africa Industrial Capacity Cooperation 
Fund, with an initial capital of USD10 billion jointly funded by the foreign exchange 
reserve and the Export -import Bank of China. The fund mainly makes equity investment, 
and has different focus from that of the China -Africa Development Fund. This fund is 
neither of aid nature, nor subsidised. It respects international economic and financial 
rules, uphold the concept of commercial operation, mutual benefit and win -win. It 
serves Africa' s Three Networks  and Industrialization effort in multiple marketized ways. 
Its investment mainly goes to the manufacturing industry, high and new technology, 
agriculture, energy and minerals, infrastructure and financial cooperation in Africa.  
Additional questions  
General  questions  (stemming from the Chinese industrial policies)  
EU initial questions No . 118-121: The Ministry of Finance  (MoF)  put in place a 100  bn yuan fund to 
encourage local governments, enterprises, banks and other creditors to complete market clearing 
by means of merging and reorganisation, debt restructuring and bankruptcy liquidation. Is it 
correct that the fund will be exclusively linked to reduction of capacity and resettlement of eligible 
workers?  What are the parameters on which the size of this fun d has been based?  In May 2016, 
the Ministry of Finance issued  2016 Structural adjustment special funds". Are these funds 
additional to the 100 bn yuan fund or they are part of the same fund?  Does China intend to notify 
these measures to the WTO?  
Reply:  The said measure is a concrete step taken by China to address excess capacity, 
and jointly tackle the difficulties faced by certain global industries with all countries. 
China will evaluate seriously whether the measure should be notified in accordance with 
the requirements of the SCM Agreement. If it does not apply to a specific industry, 
product or region, then the subsidy does not need to be notified.  
EU follow up questions : Due to partial replies submitted by China, the EU would reiterate its 
interest in t hese issues and would like to ask the following:  
- Is it correct that the fund will be exclusively linked to reduction of capacity and 
resettlement of eligible workers?  
- What are the parameters on which the size of this fund has been based?  
- In May 2016,  the Ministry of Finance issued  2016 Structural adjustment special funds". 
Are these funds additional to the 100 bn yuan fund or they are part of the same fund?  
Reply: The fund may be understood as exclusive for the reduction of capacity and 
resettlement o f eligible workers. The size of this fund distributed was mainly decided 
based on the capacity eliminated, the number of workers to be resettled and the degree 
of difficulty in local areas. The Structural adjustment special funds issued in May 2016 is 
included in the 100 billion yuan.  WT/TPR/M/3 42/Add.1  
 
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  21  GUATEMALA  
1) En el informe de la Secretaría se  resalta el éxito de China en la atracción de inversión 
extranjera directa (IED) y en los párrafos 2.25 y 2.26 se comenta sobre los sectores  en los que se 
alienta la inversión. ¿C ómo se identifican esto sectores y cómo se enlaza esta labor con la reforma 
estructural de la economía?  
Reply: China encourages foreign investment in areas such as new agricultural 
technology, comprehensive agricultural development, energy, transportation and 
industry of important raw materials; high and new technology or advanced applied 
technology, which can help enhance products quality and performance; new technology 
and new equipment, which can save energy and conserve raw materials, make 
comprehensive  use of both primary resources and renewed resources and prevent and 
control environmental pollution. All these areas are closely linked with China's  industrial 
restructuring and upgrading, and foreign investment therein would further boost the 
industrial restructuring and upgrading of China.  
2) En el párrafo 1.20 se indica que durante el período objeto de examen, el Consejo de estado ha 
hecho esfuerzos por reducir los obstáculos al acceso  los mercados, establecer reglas de mercado 
transparentes y fortalece r el entorno de inversiones. ¿Podría China compartir su experiencia 
respecto de la implementación de estas mejoras?  ¿Se ha creado algún sistema  
Reply: To establish and improve a market system of national uniformity, fair competition 
and good order, rule ou t the regional blockade in market economic activities, break up 
regional protection, and safeguard the order of the socialist market economy, the State 
Council promulgated the Provisions on Prohibiting Regional Blockade in Market 
Economic Activities  in 200 1. 
 WT/TPR/M/3 42/Add.1  
 
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  22  HONG KONG, CHINA  
A. Trade and Investment Development and Related Policies  
Electronic Commerce  
WT/TPR/G/342 , Page 19, paragraph 3.23 
1. The Chinese government has constantly improved the environment for the development of 
cross-border e -commerce.  In Ma rch 2015, the State Council approved the establishment of China 
(Hangzhou) Cross -border E -Commerce Comprehensive Pilot Area to accumulate replicable and 
transferable experiences for the development of cross -border e -commerce through institutional 
innovatio n, management innovation and service innovation. In January 2016, new cross -border 
e-commerce comprehensive pilot areas were established in 12 cities including Ningbo, Tianjin, 
Shanghai and Chongqing. Since the launch of pilots on cross border e -commerce s ervices in 2012, 
China Customs and other port management departments have also adopted a series of policy 
measures in support of the healthy, orderly and fast development of e -commerce.  
Question:  
Could China share with us more details of the cross -border e -commerce services and the related 
policy measures adopted? How are the cities selected for the establishment of pilot areas?  
Reply: In recent years, the cross -border e -commerce in mainland China has been 
developing rapidly. Certain industrial clusters of a certain transaction scale have been 
formed. The supervision systems of all links have become more science -based, 
standardized and convenient.  
A. Trade and Investment Development and Related Policies  
Trade and Investment Development  
WT/TPR/G/342: Page 22,  paragraph 3.40 
2. In 2013, the Chinese government proposed the major cooperation initiative of jointly building 
Silk Road Economic Belt and 21st Century Maritime Silk Road. By the end of 2015, 68  countries 
have expressed their willingness to join. The ini tiative has become the common aspiration 
reflecting the interests and pursuits of all parties.  
Question:  
Could China provide an update on the initiative including any roadmap and schedule of work for 
the coming few years to take forward the initiative?  Will China invite countries other than the 
68 countries which already indicated their willingness to join to take part in the initiative? How 
could the late comers participate in and benefit from the initiative?  
Reply: The Chinese government issued the Visio n and Actions on Jointly Building Silk 
Road Economic Belt and 21st Century Maritime Silk Road and determined the roadmap of 
promoting the Belt and Road Initiative in 2015. Up to now, more than seventy countries 
and international organizations have particip ated in the development of the Belt and 
Road Initiative and China has signed the cooperation agreement on the joint 
development of the Belt and Road with more than thirty countries. The planning and 
overall arrangements of the Belt and Road Initiative have  been preliminarily completed 
and stage result has been obtained. The construction is marching forward to the stage of 
laying foundation, intensive work and continuous development.  
During the "13th Five -Year Plan " period, China will improve the bilateral a nd multilateral 
cooperation mechanism for the Belt and Road Initiative with a focus on policy 
coordination, facilities connectivity, unimpeded trade, financial integration and 
people -to-people bonds. China will match the initiative with the development pla nning 
and technical standard system of the countries along the Belt and Road, push forward 
the arrangement of transportation facilitation among those countries and carry out the 
cooperation of simplified customs along the line. China will develop internati onal 
economic cooperation corridors of China -Mongolia -Russia, China -Central Asia -West Asia, 
China -Indochina Peninsula, New Eurasian Land Bridge, China -Pakistan and BCIM and WT/TPR/M/3 42/Add.1  
 
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  promote the connectivity with the neighboring countries in infrastructure to build an 
infrastructure network connecting the Asian sub -regions and Asia -Europe -Africa. China 
will also actively build the strategic pivots of "21st Century Maritime Silk Road ", 
participate in the construction and management of important ports along the route, 
promote the joint construction of the port -centered industry cluster and open up the 
seaborne trade channels. China and the neighboring countries will carry out extensive 
cooperation in education, science and technology, culture, sports, tourism, 
environme ntal protection, health, and Chinese traditional medicine and construct a 
people -to-people exchange mechanism with the joint efforts of the government and the 
people and with the participation of all parties. China and the neighboring countries will 
hold t he activities such as culture year, art festival, film festival and expos for each 
other to encourage popular culture exchanges in various forms.  
The development of the Belt and Road is open rather than closed. It does not make a 
difference among countries  based on ideology, political system, development path and 
model. All the countries, regions and international organization both within and outside 
the region can join the construction if they want and promote mutually beneficial and 
joint development thro ugh deepening all -dimensional pragmatic cooperation.  
B. Trade and Investment Regime  
Foreign Investment Regime  
WT/TPR/S/342 , Page s 37-40, paragraphs 2.25-2.30 
3. The Catalogue for the Guidance of Foreign Investment Industries (Investment Catalogue) is the 
main instrument used to guide FDI in China. The Catalogue lists the industries where FDI is 
encouraged, restricted or prohibited.  Projects that do not fall into one of these three groups are 
"permitted".  In general, projects in the "encouraged" category (th ose that the authorities are 
interested in promoting) are those that use improved technology and are less polluting, while 
"restricted" industries are those deemed to employ outdated technologies, over -exploit scarce 
natural resources or harm the environme nt. 
In comparison between the 2011 and 2015 Catalogues is difficult, as the content of each category 
is somewhat different and the description/name of some activities has been updated to reflect 
technological changes.  Given the specificity of the type of c hanges, it is difficult to interpret what 
they mean in terms of market access. Moreover, the Chinese authorities have not clarified the 
policies in place to guide FDI into the "encouraged" sectors.  
On 2 October 2015, the State Council issued an Opinion tha t calls for the design of two negative 
lists – one for market access, applying to both domestic and foreign companies, and another for 
foreign investment – the use of these lists will be gradually implemented.  It is not clear how these 
lists will relate to  the investment catalogue that is currently used to guide investment.  
Question:  
As the Investment Catalogue is the main document used to guide FDI in China, and in view of the 
insufficient clarity of the Investment Catalogue as noted in the Secretariat 's report, what would the 
Chinese Government do to improve the situation?  Would modifications be made on the content 
and presentation of the Catalogue to help foreign investors better understand China 's investment 
policy and regulations?   
Reply: After the Cata logue for the Guidance of Foreign Investment Industries was first 
issued in 1995, it was amended at intervals according to the need of economic 
development and opening up to the outside world. The amendment in 2015 was the 
sixth one and the one with the la rgest scope of opening -up among all amendments. As 
seen from the guidance of foreign investment industries, the Catalogue is relatively 
clear. The amendment mainly follows the following four principles: firstly, opening wider 
to the outside world and furth er promoting the opening -up in the primary, secondary 
and tertiary industries, especially the service and general manufacturing industries. The 
pilot experience of China (Shanghai) Pilot Free Trade Zone should be spread; secondly, 
the mode of foreign inves tment management should be changed. The market should 
play a decisive role in the allocation of resources. The items which allow unified WT/TPR/M/3 42/Add.1  
 
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  regulation of domestic and foreign investment are not listed as restrictive ones through 
the measures of energy saving,  environmental protection, technology and safety; 
thirdly, economic structure shall be adjusted and optimized. The foreign investment in 
modern agriculture, high and new technology, advanced manufacturing, energy 
conservation and environmental protection, new energy, modern service industry and 
other fields are encouraged to undertake high -end industry transfer. The foreign 
investment in R&D shall be encouraged; and fourthly, transparency should be further 
increased. In accordance with the requirements for negative list management approach, 
the foreign shareholding ratio limit will not be maintained in principle in the permitted 
category and all provisions concerning the foreign shareholding ratio will be listed in the 
Catalogue.  
C. Trade Policies by Sector  
Financial Services  
WT/TPR/S/342 , Page 131, para graph  4.54 
4. The China Banking Regulatory Commission (CBRC) released in March 2014 the newly amended 
Administrative Measures for Financial Leasing Companies (Order of China Banking Regulatory 
Commission No.  3, 2014).  The relevant provisions on market -entry requirements, business scope, 
operation rules, supervision and administration of financial leasing companies were thus modified.  
Among others, five specific types of institutions (i.e. domestic and overseas commercial banks, 
domestic large manufacturers, overseas financial leasing companies, other domestic institutions 
and other overseas finance institutions) can apply to establish a financial leasing company.  
Financial leasing companies are allowed to establ ish branches and subsidiaries with CBRC 's 
approval.  As at October 2015, CBRC had approved the establishment of 22 financial leasing 
companies.  
Question:  
Are there clear definitions of or scopes for the five specific types of institutions? Is there any 
difference in the application procedures between the foreign and domestic companies?  How long 
does it usually take to get approvals from CBRC for establishing a financial leasing company or a 
branch or a subsidiary?  Are there any limitations on the number of b ranches and subsidiaries of 
each financial leasing company?  
Reply: It is provided in the newly amended Administrative Measures for Financial 
Leasing Companies (Order of China Banking Regulatory Commission No. 3, 2014, 
hereinafter referred to as "the Measur es") that five types of eligible institutions 
(domestic and overseas commercial banks, large domestic manufacturing enterprises, 
overseas financial leasing companies, other domestic institutions and other overseas 
financial institutions) can apply for the establishment of financial leasing companies as 
initiators. Specifically, the five types of institutions refer to: commercial banks 
registered domestically or overseas with indep endant corporation, large enterprises 
registered in China with the main busine ss of manufacturing the products suitable for 
financial leasing transactions, financial leasing companies registered overseas and other 
initiators approved by CBRC. The other initiators approved by CBRC are the other 
domestic corporate bodies and overseas financial institutions than the initiators 
provided under Articles 25, 26 and 27 of the Measures. The domestic and foreign 
companies follow the same application procedure.  
WT/TPR/S/342 , Page 135, para graph  4.74 
5. The Chinese authorities took a number of r egulatory measures to promote equity investments in 
the past few years.  However, margin -trading businesses of brokerages from using "umbrella trust " 
lending have been banned since May 2015.  Umbrella trusts have been engaging in margin trading 
in China at l everage margins that are much higher (5:1 or above) than those allowed for 
brokerage accounts, with no limits on the type of shares in which they can invest.  WT/TPR/M/3 42/Add.1  
 
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  Question:  
What factors were taken into account by the authorities when deciding to ban the use of "umbrella 
trust" lending?  Are there any plans to review the ban?  
Reply: During the development of the capital market, the regulator always sticks to the 
market -based, law -based and international principles and is committed to the 
construction of a mature c apital market legal system and strict law enforcement to crack 
down on illegal activities. The Chinese securities regulators have noticed in daily 
supervision that some institutions and individuals utilized information system to open 
virtual security accou nts for their customers, borrowed the security accounts of others 
and lent their security accounts to buy and sell securities on behalf of the customers. 
These behavio urs are in violation of the regulations of the real -name system of the 
securities account  and the engagement in the securities business without permission 
under the Securities Law and Regulation on the Supervision and Administration of 
Securities Companies. They damaged the legitimate interests of investors and severely 
disrupted the stock mar ket order. The above legal regulations are not only targeted at 
umbrella trust. All the institutions and individuals in violation of the above legal 
regulations shall be rectified.  
Regarding the fight against the illegal securities and futures business act ivities, we 
think that the legal basis is clear and definite. It is widely agreed by all sectors of 
society so that there is no plan of reconsidering the decision.  
Health and Social Services  
WT/TPR/S/342 , Page 140, para graph  4.94 
6. Foreign investors have been encouraged to establish profit -making retirement homes and 
participate in the transformation of public retirement homes.  National treatment will apply 
regarding taxes.  
Question:  
In addition to national treatment regarding taxes, we are interested to k now whether there are 
incentives and facilitation provided to encourage foreign investors to participate in the market for 
retirement home services.  
Reply: Foreign investment in old -age care services in the Chinese market is favorably 
received. According t o the provisions of the Law on the Protection of the Rights and 
Interests of the Aged, the Ministry of Civil Affairs issued the Measures for the Licensing 
of the Establishment of Retirement Homes for the Aged (Ministry of Civil Affairs Order 
No. 48) on Jun e 28, 2013. It stipulates the conditions and procedures of the licensing of 
the establishment of retirement homes for the aged in the form of department rules. 
According to the Measures, both domestic and foreign investors are allowed to establish 
retireme nt homes for the aged in China. The difference only lies in the level of license 
and there is no restriction on foreign fund.  
In addition, in order to promote the development of retirement home services and meet 
the social demand for such services, China h as issued a series of incentives in the 
aspects of investment and financing, tax incentives, talent cultivation and employment. 
These policies are targeted at not only Chinese organizations and individuals, but also 
foreign organizations and individuals. T he same type of retirement homes for the aged 
in China invested by domestic and foreign funds can enjoy the same supportive policies.  WT/TPR/M/3 42/Add.1  
 
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  23  INDIA  
WT/TPR/S/342  
Page 16, paragraph 1.2 
Question 1: China aims to attain a new normal characterized by more service and  technology 
oriented economic growth with the help of innovation, more skilled labour force and access to 
latest technology. In this pursuit, what measures have been adopted by China to promote 
employment and skilling?  
Reply: First, improving the macro -regulation system with ensuring employment as the 
bottom  line. Taking employment as the central goal, great efforts have been made to 
promote the construction of major projects to ensure that the economy operate within a 
reasonable range.  
Second, fostering ne w growth points for economy and employment in an accelerated 
manner. Major strategies such as concerting the developments of Beijing, Tianjin and 
Heibei province, and building the Yangtze River Delta Economic Zone have been 
implemented to forge new regiona l growth poles. The leading roles of central cities have 
been brought into full play in attracting more labo ur force to get cross -region 
employment opportunities. Great efforts have been made to develop new industries, 
new business types and new services, to attract more workforce from traditional 
industries.  
Thirdly, vigorously intensifying vocational skill training and effectively boosting the 
skills of employees. By the end of 2015, the number of skilled person nels reached 
165 million nationwide, of whic h 45.01 million are highly -skilled professionals, 
registering an increase of 47% and 57% respectively from those at the end of 2010.  
Page 20 , paragraph 1.16 
Question 2: China is requested to provide details about the reform of the Pension Insurance 
system in Government agencies and public sector units which was implemented in October, 2014.  
Reply: The reform of the pension insurance system in government agencies and public 
service units (PSUs) has been pressed ahead steadily under one unified system and fi ve 
synchronizations. The one unified system means that the same basic pension insurance 
system combining overall social planning and individual accounts applies to both the 
employees of government agencies and PSUs and those of the urban and rural 
enterpri ses, requiring both employers and individual employees to pay pension fees. The 
counting method of retirement pensions has been reformed. The five synchronizations 
refer to: first, synchronization in the reforms for government agencies and PSUs. 
Second, sy nchronization in the establishment of occupational pension system and basic 
pension insurance system, to optimize the treatment structure without lowering the 
overall level of treatment. Third, synchronization in advancing the reform of pension 
insurance s ystem and improving the salary system, to increase pension fees while 
increasing individuals salaries. Fourth, synchronization in improving the fixing and 
adjusting mechanisms of treatment. The treatment of retirees of government agencies 
and PSUs is calcu lated on a the more you pay, the more you get basis and arranged in a 
coordinated way with that of the enterprise retirees, to be more fair in the process of 
redistribution. Fifth, synchronization in the implementation of the reform across the 
country.  
By now, the reform has been advancing in a generally smooth way.  
Page 26, paragraph 1.3.1  
Question 3: Over the years China has successfully diversified to manufacturing and export of 
technology sophisticated products like machinery and transport equipment a way from labour WT/TPR/M/3 42/Add.1  
 
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  intensive products like footwear and textiles. Could China share any information on the impact of 
such a transformation on the levels of employment /unemployment in China?  
Reply: In recent years, China has made special efforts to promote t he transformation of 
development modes; economic restructuring and industrial upgrading has been 
continuously accelerated; and the quality of development has been remarkably 
improved. In the meantime, employment has remained generally stable, and the quali ty 
of employment has continued to improve.  
First, the scale of employment has expanded constantly. The number of employment in 
both urban and rural areas has continued to rise from 761 million in 2010 to 775 million 
in 2015.  
Second, the employment structu re has been continuously optimized. The employment 
ratios of the primary, secondary and tertiary industry have shifted from 36.7:28.7:34.6 
in 2010 to 28.3:29.3:42.4 in 2015.  
Third, unemployment rate has stayed at a relatively low level. During the Twelfth  
Five-Year Plan period, the registered rate of unemployment in both urban and rural 
areas stayed below 4.1%, lower than the 5% target level.  
Page 37, paragraph 2.4 
Question 4: Could China share any information on the impact of Regional and Free Trade 
Agreements that China has signed with various countries on employment generation in China?  
Reply: The Free Trade Agreements (FTAs) that China has signed with various economies 
are conducive to common development since they have removed the most tariff and 
non-tariff barriers, eliminated market access restrictions in most service sectors, opened 
up investment, promoted the free flow and complementarity of production factors 
including goods, services, capital, technologies and personnel. In this sense, the signin g 
and implementation of FTAs have played a positive role in promoting industrial 
development and creating more jobs.  
Page 80 and 163, paragraph 3.3.1  
Question 5: The notifications submitted by China to the SCM Committee do not provide details of 
the subsid y programmes extended to the fishing industry. Could China provide details of the 
programmes or policies under which subsidies are provided to the fishing industry?  
Reply:  China's  latest notification on central subsidy policies already included three 
fishe ry related subsidy programs. At present, China is reviewing fishery subsidy and will 
deliberate on the notification issue based on the review results and the working 
progress.  
Page 46, paragraph 3.1.1 Customs Procedures and Requirements  
Question 6: Could C hina share with us its practice and current status of implementation of Single 
Window for customs clearance.  How many customs stations are already covered under Single 
Window? Which government agencies are currently part of Single Window system? What is th e 
plan for expansion in future?  
Reply: The single window is built first as pilots, followed by replication and expansion in 
a step -by-step manner, and is moving forward smoothly across the country. First, the 
Shanghai International Trade Single Window Vers ion 2.0 has already been put online. It 
includes six functional modules, namely goods import and export clearance, transport 
vehicles clearance, tariff fees administration and payment, enterprise qualification, 
trade licence application and status informat ion query, covering all aspects of customs 
clearance. The participating government agencies have now expanded to 20 ports and 
trade regulatory agencies, including customs, inspection and quarantine, maritime 
affairs, border control, commerce, national tax,  foreign exchange, food and drug WT/TPR/M/3 42/Add.1  
 
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  administration, forestry (including the endangered species import & export 
management), etc. Second, the success story of the Shanghai pilot free trade zones 
(PFTZ) has been promoted in the PFTZs in Guangdong, Tianjin and F ujian. Now, the 
functions of the single window have already covered the entire business scope of PFTZs, 
including providing customs clearance services such as goods import and export 
clearance, transport vehicle clearance, personnel clearance, cross -border  e-commerce 
and information inquiries, etc., and providing port services such as maritime shipment 
booking, cargo concentration at the port, online dry port, etc. Third, the building of 
single window is making steady progress in other coastal areas. Jiangs u, Zhejiang, 
Shandong, Liaoning, Hainan, Hebei have all built their own electronic port platform, 
which have partially realized the major functions of the single window.  
The key task in 2016 is to perfect the functions of single window of the coastal area s 
and improve user experience and suitable ports of inland and border areas will be 
selected for pilots. No efforts will be spared in building a national single window by the 
end of 2017 which conforms to the international managing rules and prevailing 
standards, and caters to the needs of socio -economic development of China. By 2020,  
the functions of single window will be expanded from the customs clearance to the 
stages prior to and post the customs clearance, and further to other major links in the 
chain  of international trade, meanwhile, participate in the building of international and 
regional single window, and get interconnected with the single windows of the countries 
along the Belt and Road.  
Page 49, paragraph 3.12 
Question 7: What is the rationale  behind having General tariff rates?  
Reply: The rationale behind having general tariff rates is Article 9 of the Regulations on 
Import and Export Duties of the People's Republic of China , which stipulates that 
general tariff rates apply to the imports from  countries or regions where neither of the 
MFN rates, agreement tariff rates and special preferential tariff rates apply, and to 
products whose origin cannot be determined.  
Page  62, Paragraph  3.60 
Background: China has four kinds of standards: national, i ndustry/sectoral, local, and enterprise 
standards. 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 ap plicable 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/sec toral 
standards do not exist. However, if and when equivalent national standards are developed, these 
replace local and industry/sectoral standards. The exception to this is in cases where the local 
standards are stricter national ones. Enterprise standard s may be developed for an enterprise 
when national, industry/sectoral or local standards are not available.  
Question 8: Can China please clarify whether the impact -assessment on imports (least trade 
impact test) is carried out while developing/adopting dif ferent standards as stipulated in the WTO 
TBT agreement?  
Reply: At present, before a national standard is approved to be set, a professional 
assessment must be conducted by experts on the necessity and feasibility of the 
standard. Only the items that have  passed the assessment could be approved for the 
development of a national standard. Some industrial standards are also subject to the 
assessment mechanism before approval for development.  
Page 67, Paragraph  3.80 
Question 9: Can China please clarify wheth er risk assessments were performed across all the MRL 
standards on active ingredients/substances which deviated from the international Codex and for 
those wherein there no MRL standards on active ingredients/substances provided by Codex?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China has p romulgated the Pesticide MRL of Food (No. GB2763 -2014), which 
covers 87  types of pesticides and contains 3650 standards of residual limits. Among 
these 3 ,650 standards, 1 ,580 are in conformity with the standards of the international 
Codex, and 2 ,070 are ei ther different form the Codex or undefined in the Codex. All the 
3,650 standards have gone through risk assessment according to the diet structure of 
Chinese citizens, as prescribed by the Guide for Risk Assessment of Pesticide Residues in 
Food (Ministry o f Agriculture Public Notice No.  2, 308). The rationale and technical 
requirements of these risk assessments on Pesticide MRL of food comply with the 
principles put forth by CAC. The results of risk assessments for all the 3 ,650 standards 
have been notified  to the WTO and are subject to review, as required by the Agreement  
on the Application of Sanitary and Phytosanitary Measures (SPS Agreement).  
The notification numbers of the 3 ,650 pesticide MRL standards involved in the Pesticide 
MRL of Food (GB2673 -2014)  are respectively: GSPS/N/CHN/313,  G/SPS/N/CHN/376,  
G/SPS/N/CHN/511,  G/SPS/N/CHN/522,  G/SPS/N/CHN/600,  G/SPS/N/CHN/635,  
G/SPS/N/CHN/701,  G/SPS/N/CHN/875.  
India is particularly interested in MRL Standards on active ingredients in agricultural 
products like:  Cotton seeds, Almond, Apple, Baby corn, Berries and other small fruit 
(except grape), Berries and other small fruits (except kiwi), Brassica vegetables, Brown 
rice, Bulb vegetables (except leek, onion), Cassava, Cauliflower, Celeriac, Cereals, 
Cherry, Chi nese cabbage, Chives, Citrus fruits, Coarse cereals, Common Chinese 
cabbages, Corn, Cottonseed, Cowpea, Cucumber, Currant (black, red, white), small 
gherkin, Kidney bean, Kiwi, Leaf mustard, Leafy vegetables Melons, Millet, Mint, 
Mushrooms (fresh), Mustard  cabbage, Nuts, Oat, Oilseeds (except soybeans, 
cottonseeds), Passion fruit, Pear, Pineapple, Pistachio, Plum, Pumpkin, Raisins, 
Rapeseed, Raspberry, Raw milk, Rice paddy, Soybean, Spices, Sugar beet (sugar), 
Sugarcane, Sweet melon, Sweet pepper, Watermelo n, Wheat, etc(as per the global MRL 
database).  
Page  76, paragraph 3.108  
Question 10: Can China please clarify whether in certain cases rebate rates may be higher than 
the VAT paid? What is the system of refund of VAT paid on exports? How it is ensured that  the VAT 
rebate on exports is not more than the VAT paid?  
Reply: China's  VAT rebate system follows international prevailing practices and the 
principle of rebating all that should be rebated, i.e. rebating all the tax money paid in 
the course of domestic p roduction and circulation of goods and labour services, to 
enable exported goods and labour services to compete in the international market at a 
tax-free price. This conforms to international conventions. The existing rebate rates of 
all exported goods are  equal to or lower than the VAT rates, and there are no cases 
where rebate rates are higher than the VAT paid.  
Page 77, paragraph 3.112  
Question 11: Whether the Concessional Lines of Credit and concessional Buyers Credit extended 
by China Exim Bank are out  of their own resources or funds are set aside by the Government of 
China?  
Reply: China Exim Bank mainly relies on issuing bonds as the source of its fund -raising.  
Question 12: Whether the Concessional Lines of Credit and concessional Buyers Credit are al so 
extended by China Development Bank, and if so whether they are extended out of their own 
resources or the funds are set aside by the Government of China?  
Reply: No. 
Question 13:  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?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China Exim Bank determines the interest rates in the principle of breaking even 
while making minor profits.  
Question 14: What is the average interest charged under the concessional lines of 
credit/concessional Buyers Credit (extended by both China Exim Bank and China Development 
Bank?  
Reply: The lending rates need to be determined according to the specific conditions of 
projects. China Exim Bank sets the lending rates by  taking into account such factors as 
the demand and supply of capital, the cost of loan capital, the cost of capital occupation, 
project risk compensations, operation and management expenses, and the quoted prices 
of the industry, etc.  
Question 15: What a re the normal tenors and the moratorium period for such loans extended by 
both China Exim Bank and China Development Bank?  
Reply: China Exim Bank determines the tenors according to the operation and 
management abilities, the credit standing and the conditi ons of capital turnover of the 
borrowers as well as the operation of the projects.  
Question 16: Whether such loans are tied to exports from China, and if so, what is the percentage 
of sourcing from China in such a typical concessional lines of credit / con cessional Buyers Credit?  
Reply: Export loans extended by China Exim Bank require a certain percentage of 
sourcing from China. However, the specific percentage hinges upon the actual conditions 
of the projects. No uniform percentage is mandated.  
Question 1 7: If the interest rates charged under the Concessional Lines of Credit and Buyers Credit 
are not adequate 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 lo an-related decisions, and also bears the risks in 
the export loans business on its own.  
Question 18: 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 s uch losses . 
Reply: China Exim Bank acts in the principle of breaking even while making minor 
profits, and has realized this goal in its past business operation.  
Question 19: In the last three years any defaults in repayment of such concessional loans 
occur red? 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 will hold 
the said borrowers accountable according to the clauses of the loan contr act. China Exim 
Bank bears the business risks on its own.  
Question 20: Whether China Exim Bank or China Development Bank are regulated by People's  
Bank of China (Central Bank) at par with other banks, the extent of such regulations, and the 
regulatory tre atment on such defaults / losses.  
Reply: As other banks, the businesses of China Exim Bank and China Development Bank 
are under the supervision of China Banking Regulatory Commission (CBRC).  
Page  78, paragraph 3.115  
Question 21: Whether the insurance premi um charged by SINOSURE for providing short term 
export credit insurance or credit guarantee is at commercial rates.  How these premium rates are 
determined? Whether the Chinese exporters will be required to pay a higher interest rate on the 
commercial loans  in the absence of a credit guarantee secured from SINOSURE?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The rates of insurance premium charged by SINOSURE for providing short term 
export credit insurance are fixed in a risk consideration principle. The level of premium 
rates is closely conn ected wit the insurance responsibilities actually assumed by 
SINOSURE. Specifically, SINOSURE assesses and predicts the risks of loss by evaluating 
past losses with actuarial science, taking into account such factors as credit term, way 
of payment, classif ication of buyer country, amount insured, the maximum 
compensation limit and the compensation ratio, etc.  
Page 78, paragraph 3.117  
Background: It is stated that among the medium - and long -term insurance instruments, the Buyer 
Credit Insurance Programme ins ures against the default of payments by the borrower or guarantor 
under the credit agreement due to certain political and commercial risks  
Question 22: Whether the concessional Lines of Credit and concessional Buyers Credit extended by 
Exim Bank of China or China Development Bank are covered by S INOSURE  under this scheme?  
Reply: The business scope of S INOSURE  does not involve concessional credit lines or 
concessional Buyers Credit, therefore there is no such issue as providing insurance to 
the overseas in vestment of the latter.  
Question 23: If so, in the last three years, how much claims (value and numbers) payout have 
been made by S INOSURE  on account of concessional Lines of Credit and concessional Buyers 
Credit extended by China Exim Bank or China Develo pment Bank?  
Reply: The business scope of S INOSURE  does not involve concessional credit lines or 
concessional Buyers Credit, therefore there is no such issue as claims payout in that 
regard.  
Question 24: Whether the losses due to the claims pay -out on suc h 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: The business scope of S INOSURE  does not involve concessional credit lines or  
concessional Buyers Credit, therefore there is no such issue.  
Page  80, Paragraph  3.124  
Question 25: Could China provide list of programmes or policies under which fuel subsidies are 
provided to the fishing industry?  
Reply: At present, China is reviewing fishery subsidy and will deliberate on the 
notification issue based on the review results and the working progress.  
Page 98, paragraph 3.3.6  
Question 26: What are the latest norms for foreign -service providers wishing to bid for 
Government contracts?  
Reply: The Chinese government is currently working on the identification method of 
domestic service providers and domestic services.  
Question 27: Are these sourcing norms any different for domestic services supplier?  
Reply: The Chinese government is currently  working on the identification method of 
domestic service providers and domestic services.  
Question 28: Is it correct that Government contracts carry stipulation of service provider providing 
a similar reference study from Chinese Government space of a sim ilar size? If yes, then how can WT/TPR/M/3 42/Add.1  
 
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  new foreign service providers provide such a reference without being able to qualify?  Is Chinese 
Government planning to consider reference stories from global experience of foreign companies?  
Reply: The Government Procureme nt Law of China does not contain any discriminative 
clauses against foreign service providers.  
Question 29: Do the above norms apply only to Government procurement or procurement 
contracts of central State -owned enterprises (SOEs) are also governed by same  regime?  
Reply: According to the Government Procurement Law of China, purchaser refers to 
government agencies, public service units and group organizations at various levels. 
State -owned enterprises are not included.  
Page 121, paragraph 4.22 
Background: I n the process of restructuring its overall agricultural subsidy policy to protect the 
land and attain food security. In 2015, a pilot programme to reform agricultural subsidies was 
implemented in five provinces (Anhui, Shandong, Hunan, Sichuan and Zhejiang ). The reform 
consists in combining three subsidies (i.e. the Direct Subsidy to Farmers, the Subsidy for 
Promoting Superior Strains and Seeds, and the Comprehensive Subsidy for Agricultural Inputs) 
into one programme, the Agriculture Support and Preservati on Subsidy, which will have two 
separate components and is aimed at using funds in a more efficient manner.  
Question 30: Could China share details (coverage) and timelines of implementation of the new 
agricultural subsidy policy in all provinces?  
Reply: S ince 2016, China has implemented the reform of the three subsidies in an all 
round way across the country, combining the Direct Subsidy to Farmers, the Subsidy for 
Promoting Superior Strains and Seeds, and the Comprehensive Subsidy for Agricultural 
Inputs into the Agriculture Support and Preservation Subsidy.  
Page 123, paragraph 4.25 
Question 31: Could China share the details of the form of cotton subsidy extended in nine other 
provinces?  
Reply: Please refer to the subsidy measures issued by each province.  For example, 
Henan Provinces Implementation Plan for Central Financial Subsidies on Cotton Target 
Price Reform 2014 at : http://www.hndrc.gov.cn/ar/20150407000001.htm  ; 
Jiangsu Provinces Impleme ntation Plan for Central Financial Subsidies on Cotton Target 
Price Reform 2014 at  http://www.jscz.gov.cn/pub/jscz/xxgk/gkml/201505/ t2015 
0528_75680.html  . 
Page 124, paragraph 4.2 
Question 32: Does China follow tiered system regime to categorise IT service providers into 
various tiers depending on their size and experience working on the Chinese Government projects? 
If yes, then please elaborate on qualification process  for companies to qualify on these tiers.  
Reply: China does not follow tiered system regime in the IT services area.  
Question 33: What are the norms for foreign entities interested in setting up e -commerce 
businesses/platforms in China? Are there any norm s that require companies to have either server 
or data residing within China?  
Reply: In June 2015, China lifted the restrictions on the foreign equity in online data 
processing and transaction processing (business type of e -commerce) across the 
country, t he percentage of foreign shareholding could be up to 100%. When foreign 
investors invest and operate in the aforementioned businesses, they need to obtain 
corresponding licences through legal procedures in accordance with such stipulations as WT/TPR/M/3 42/Add.1  
 
- 218 - 
 
  the Telecommu nications Regulation, the Provisions on the Administration of Foreign -
invested Telecommunications Enterprises, and the Administrative Measures for the 
Licensing of  Telecommunication  Business Operations of China.  
Question 34: Could China elaborate its polic y for repatriation of profits by foreign companies to 
their home country?  
Reply: Regarding the repatriation of profits by foreign companies, according to the 
Notice of the State Administration of Foreign Exchange on Issuing Regulations on 
Foreign Exchange  Management of Trade in Services (Hui Fa [2013] No.  30) and the 
Notice of the State Administration of Foreign Exchange on Further Promoting Trade and 
Investment Facilitation and Improving Information Verification (Hui Fa [2016] No.  7), in 
principle the fin ancial institutions may not need to review the transaction documents of 
a single repatriation of no more than 50,000  Dollars (included). However, when the 
nature of the fund is unclear, the financial institutions shall require related institutions 
inside t he Chinese territory to provide transaction documents for reasonable reviews. 
For a single repatriation of more than 50,000 Dollars (not included), the financial 
institutions shall review the board of directors resolution (or partners resolution) on 
profit  distribution related to this profit repatriation, the original taxation filing reports 
and the financial statements that can prove the information of the profit, in the principle 
of actual transactions.  
Question 35: There were reports of nine private ent ities being given in principle approval for 
commercial banking operations in China. Can China share information on the timeframe for 
allocation of these licenses?  
Reply: So far, CBRC has granted business license to 5 private banks, namely Webank of 
Shenzh en in December 2014, SHRB Bank of Shanghai in January 2015, Wenzhou 
Minshang Bank in March  2015, KCB Bank of Tianjin in April 2015, and MYBANK of 
Zhejiang in May 2015.  
WT/TPR/G/342  
Page 10, paragraph 2.38 
Background: The State Council released the Opinion s of the State Council on Implementing the 
Negative List System for Market Access.  A negative list system to be piloted in some regions and 
will be officially adopted by 2018.  
Question 36: Could China provide timeline for adoption of the Negative list sys tem? Could China 
provide details of the list of items and the criteria adopted for the same?  
Reply: Regarding the market access negative list, according to the Opinions of the State 
Council on Implementing a Market Access Negative List System (Guo Fa [201 5] No. 55) 
and other related working arrangements, the market access negative list system was 
put on trial in Tianjin, Shanghai, Fujian and Guangdong since January 1st, 2016. In the 
future, the system will be adjusted through set procedures when deemed app ropriate in 
light of the progress and effects of the pilots, so as to prepare for the nationwide 
implementation in 2018. Please refer to the Opinions of the State Council on 
Implementing a Market Access Negative List System for specific standards.WT/TPR/M/3 42/Add.1  
 
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  24  INDIA (A DD.) 
WT/TPR/S/342  
Page 20, paragraph 1.17 
Question 1:  Could China share information on the structural changes it intends to implement in the 
near future for: an administration management reform; the promotion of private sector 
participation in the economy,  while keeping the preponderance of public ownership; and 
state-owned enterprises (SOEs) reform?  
Reply: At present  positive progress has been made in the reform of state -owned 
enterprises. By the end of 2015, among the central companies under SASACs 
superv ision, 90.3% were corporate enterprises, out of them, 33,782 were mixed 
ownership enterprises, accounting for 75% of all central corporate enterprises; there 
were 384 domestically and overseas listed companies controlled by central enterprises, 
and 48.6% o f total assets, 56.76% of net assets and 59.94% of business revenue and 
57.68% of net profit of central enterprises lie in listed companies. Regarding fulfilling 
the functions and rights of boards of directors, China has been energetically pushing 
forward the establishment of standardized boards of directors where a vast majority of 
directors are outside directors. At present, 87 out of 105 central enterprises have 
established standardized board of directors. In the meantime, some boards of directors 
are em powered to exercise such functions as formulating med - and long -term 
development strategy planning and recruiting senior executives. Regarding market -
oriented recruitment of managers and the professional manager system, the boards of 
directors 5 central en terprise have recruited 14 managers in a market -oriented way.  
Page 49, paragraph 3.13 
Question 2:  The tariff lines subject to Specific rates have not changed since the previous review. 
Can China elaborate when the next review of Specific rates would take p lace? 
Reply: We will determine when to review the tariff lines subject to specific rates 
according to relevant procedures and changes in the economic situation.  
Page 65, paragraph 3.70 
Question 3:  Could China indicate the current status of the new mandator y national standards 
system and by when will it be established? Could China share information on the key features of 
the new policy?  
Reply: China is now integrating and simplifying mandatory standards, and will gradually 
integrate existing mandatory nation al standards, industrial standards and local 
standards into mandatory national standards. It is predicted that the new mandatory 
national standards system will be formed by 2020.  
Page 67, paragraph 3.80  
Question 4: Could  China elaborate on the key specif ic measures under the Food Safety Law of 
2015 and provide an official English translation/ interpretation of the law?   
Reply: The Food Safety Law  revised and adopted in 2015 has provided for the following 
major regimes:  
(1) Strengthening a prevention -domin ated and risk -preventing legal system. First, 
fundamental systems are improved. Some provisions such as adjustment of risk 
monitoring plans, monitoring norms and notification of monitoring information are 
added, and risk monitoring situations are specified . Second, self -inspection system for 
producers and distributors is added. It is required that food producers and distributors 
conduct food safety self -inspection regularly; in the case of a potential risk relating to 
food safety, producers and distributors  shall immediately cease the activity and report WT/TPR/M/3 42/Add.1  
 
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  to regulatory departments. Third, an interview system regarding liabilities is added. It is 
stipulated that in the event that any food producer or distributor fails to take actions to 
eliminate hidden food s afety risks during food production or distribution, the regulatory 
departments may hold an interview with the legal representative; in the event that 
regulatory departments fail to perform their duties in respect of food safety as well as to 
eliminate regi onal major hidden risk of food safety in a timely manner, the local people 's 
government may hold an interview regarding liabilities with their major principals. 
Fourth, requirement for risk classification administration is added. It is stipulated that 
regulatory departments shall identify the key aspects, methods, and intervals of 
supervision and administration and implement risk classification administration based 
on the risk monitoring of food safety and risk assessment results.  
(2) Establishing a strict full-process control legal system. First, in the process of food 
production, such requirements are added: controlling such key processes as the 
inspection of raw materials, semi -finished products and finished products, and systems 
such as the registration of the confidentiality of business secrets for infant formula and 
the batch -by-batch inspection of the outgoing infant formula food; it is also stipulated 
that infant formula milk powder may not be produced by sub -assembly. Second, in the 
process of food d istribution, an inspection record system for distributors and food safety 
management responsibilities regarding third -party platform providers in online food 
trade are added. Third, in the process of catering service, responsibilities of catering 
service p roviders for raw materials controlling and food safety standards for cafeterias 
of schools and other collectively dining sites are added. Fourth, a full traceability system 
is improved, a system for food producers to check the license of supplier and compl iance 
certificate of product when purchasing is specified, and a coordinated full traceability 
system for food and edible agricultural products is added. Fifth, such health care food 
related systems as product registration, filing for record and ad inspect ion and approval 
are complemented; food additive standards and the production and management of 
food-related products are also complemented. Sixth, food importation and exportation 
management system is further specified. And last, food safety supervision a nd 
administration is improved, changing that segmented supervision system into a new 
system where food and drug regulatory departments take full responsibility for the 
supervision and administration of food production, distribution, and catering service.  
(3) Establishing a strict legal liabilities system. First, civil compensation is highlighted. 
It is stipulated that the civil compensation shall be executed first, requiring that any 
producer or distributor that receives claims for compensation from consume rs shall be 
liable for compensation first and may not refuse to compensate. It is also completed 
that in legal cases, customers can demand the producer or distributor to pay a penalty of 
10 times the paid amount or 3 times of the loss. Second, administrati ve punishment is 
strengthened. For example, if found to be in violation of the Law such as adding 
poisonous and harmful materials, the producer or distributor shall be subject to a fine of 
at most 30 times of the total value of the commodity. An inspector for a food inspection 
agency who is dismissed due to criminal sanction for illegal acts relating to food safety 
or provision of reports containing false inspection, may not engage in food inspection 
during the rest of his lifetime. Third, punishment to dir ect principal in charge of the local 
people's government and inspector of food safety that fail to take due responsibility is 
further specified and aggravated. And it is also added that in the case of significant 
consequences, the principal in charge shall  resign. And fourth, criminal liabilities are 
also stipulated.  
(4) Carrying out social governance. First, it is stipulated that true and helpful report as 
to food safety shall be awarded. In the event that the report is verified as true, the 
reporter shall  be awarded. Second, the publishing of food safety information is 
standardized. It is stressed that supervision and regulatory departments shall publish 
food safety information accurately and in a timely manner; it is encouraged that news 
media carry out p ublic opinion supervision; and it is also stipulated that food safety 
publicizing and reporting shall be objective and fair, and no organization or individual 
may fabricate or disseminate false food safety information. And third, a food safety 
liability in surance system is added. It is stipulated that China encourages food 
production and distribution enterprises to seek coverage under food safety liability 
insurance.  WT/TPR/M/3 42/Add.1  
 
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  Question 5: According  to Article 28 of the Food Safety Law of 20151, a national food safety  
standards will be adopted. Could China indicate the current status of the standards and the scope/ 
coverage of the proposed standards?  
Reply: China has notified, as per procedures, to the WTO the draft national standards on 
food safety (excluding inspecti ng method standards) formulated and revised by the 
Chinese Government between 2014 and 2015 . 
Page 70, paragraph 3.87 
Question 6: India would like to understand the basis, procedure and level of scrutiny for 
application of standards on a temporary basis. Fu rthermore, India requests China to elaborate the 
review system that is undertaken and the details of the required level of evidence.  
Reply: In China's  national standards, there are no standards on a temporary basis.  
Page 71, paragraph 3.91 
Question 7:  Could China indicate its decision and next steps in lifting the restrictions on imports on 
bovine meat from India?  
Reply: According to China's  field evaluation, India has not yet met the conditions for 
ban-lifting of FMD across the country. China suggests that  India implements FMD 
regionalized management according to relevant OIE standards. After India completes 
FMD regionalized management and is recognized by OIE, China will give positive 
consideration to conduct regionalized management of FMD in India.  
Page 7 4, paragraph 3.98 
Question 8:  China is the world's leading exporter of some of the products to which it applies export 
taxes. The application of export taxes could affect the amount exported and their price in the 
world market. The highest export tax rate (50%) applies to tin ores and concentrates (HS 2609). 
In 2014, China did not export any of these products. Could China explain the rationale behind such 
taxes? What steps are envisaged in near future to reduce or eliminate such taxes?  
Reply: China has alwa ys been respecting WTO rules. The application of export taxes to 
certain raw materials by China is a scientific management of resource products in face of 
severe resource and environment pressures aimed at sustainable development, and a 
component of the co mprehensive measures to strengthen environmental protection.  
Page 94, paragraph 3.173  
Question 9: Could  China provide the State Trading yearly basis criteria for an enterprise, the 
volumes they can import and the allocation method?  
Reply: Please refer to China's  response to the Questionnaire on State Trading for the 
year 2003 -2014 submitted to the Working Party on State Trading Enterprises.  
Question 10:  Could China provide the volume of agricultural goods imported, total import value  
and the main countries of import by the state -trading enterprises?  
Reply: Please refer to China's  response to the Questionnaire on State Trading submitted 
to the Working Party on State Trading Enterprises.  
                                                
1Based on the unofficial English translation of the law made avail able by the United States Department 
of Agriculture. Available at: http://gain.fas.us da.gov/Recent%20GAIN%20Publications/Amended%20Food%20 
Safety%20Law%20of%20China_Beijing_China%20 -%20Peoples%20Republic%20of_5 -18-2015.pdf  (last 
visited 28/06/2016) . WT/TPR/M/3 42/Add.1  
 
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  Page 116, paragraph 4.2 
Question 11: Could China elaborate on the changes  made to the subsidy policies?  
Reply: Starting from 2016, the Chinese government has comprehensively implemented 
the reform  of three agricultural subsidies nationwide, integrating the subsidy to 
promote the use of superior strains and seeds, the direct sub sidy to farmers, and the 
subsidy to purchase agricultural machinery and tools into the agriculture support and 
protection subsidy, and the policy objective has been adjusted to protecting the arability 
of farm land. Oriented towards green ecology, the agri culture support and protection 
subsidy is to encourage innovative methods to enhance a comprehensive utilization of 
crop straws, and to guide farmers to return crop straws to fields, conduct deep tillage, 
reduce the use of fertilizer and pesticide, and app ly organic fertilizer, so as to practically 
intensify protection of farmland quality and conscientiously improve farmland arability.  
Page 117, paragraph 4.9 
Question 12: Given the low fill rate of TRQs, especially in products like wheat, rice, and corn, is  
there any proposed plan to phase -out TRQs?  
Reply: China has currently no plan to modify its commitments on TROs.  
Question 13:  Could China indicate the percentage of quota allocated to state -trading enterprises 
and to the private sector?  
Reply: The Chinese  government has allocated quotas to state -trading enterprises and 
non-state -trading enterprises in accordance with relevant commitments; for detailed 
percentage, please refer to tariff -quota in 1 -b of Section A, Schedule  No. 152.  
Page 144, paragraph 4.112  
Question 14: Is  China considering to allow foreign investment in companies producing radio and 
television production and transmission services?  
Reply: According to Catalogue of Industries for the Guidance of Foreign Investment 
(2015 Revision) , foreign inve stment is prohibited in radio and television programme 
production and operation companies and radio and television transmission networks. 
Foreign investment in radio, television programme and film production (limited to 
contractual joint -ventures) is restr icted.  
WT/TPR/G/342  
Page 9, paragraph 2.31  
Question 15:  Could China provide information about the measures being undertaken to ensure 
food security?  
Reply: From the aspect of legal construction, the National People's  Congress revised 
Food Safety Law  last year, the new  Food Safety Law  came into force on October 1. China 
Food and Drug Administration has stipulated and is formulating certain supporting rules 
to earnestly enforce the Law. All these have laid a solid legal foundation for us to build a 
strictest  regulatory system.  
From the aspect of regulatory system, governments at various levels have been 
seriously implementing the decision on completing and unifying an authoritative food 
and drug regulatory system made by the State Council. 30 provinces, auto nomous 
regions and municipalities directly under the central government, 70% of cities and 
30% of counties have integrated the food and drug regulatory functions, formed 
independent food and drug regulating agencies, thus providing important institutional 
guarantee for food and drug regulation.  WT/TPR/M/3 42/Add.1  
 
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  From the aspect of regulatory work, China has made public 6 ,552 batches of unqualified 
food. Food and drug administrations have investigated and handled 240,000 cases of 
violation of laws related to food and health care food; public security organizations have 
detected 15,000 cases of crimes hampering food safety; joined with the National Health 
and Family Planning Commission in issuing 157 new food safety standards; 
400,000  catering enterprises have carried out the Sanitary Kitchen and Bright Oven 
Project.  
Page 9, paragraph 2.32  
Question 16:  Could China elaborate on the measures being undertaken to improve the policy on 
agricultural support?  
Reply: Please refer to the reply to the questions regarding Paragraph 4.2.  WT/TPR/M/3 42/Add.1  
 
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  25  INDONESIA  
WT/TPR/S/342   
Page 12 , paragraph 24 
China applies price controls, at both the central and provincial levels, on commodities and services 
deemed to have a direct impact on the national economy and people's livelihoods. These take two 
forms: gover nment prices, which are fixed prices set by the authorities, and government -guided 
prices, set within a range. The commodities and services subject to price controls are listed in a 
Central Government Pricing Catalogue and in Local Government Pricing Catal ogues. Since the last 
Review, China has liberalized the price of several goods and services, such as the ex -factory price 
of explosive materials, the charges for some construction projects, and the prices of military goods 
and of tobacco leaves. Government -set prices are currently applied to refined oil products, natural 
gas, certain medicines, and some services. Products classified as important central reserve 
materials (grain, cotton, sugar, filature silk, crude oil, processed oil, and chemical fertilizer s) are 
no longer subject to government -set prices.  
Question:  
1. Could China please give further information on the measure to standardize the price control in 
services?  
Reply: The Chinese Government adopts goverment prices and government -guided prices 
for som e 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 
Government). For th e latest Catalogue of Prices Determined by the Central Government, 
please refer to Decree No.  29 of National Development and Reform Commission of the 
People's Republic of China  (which may be accessed through the official website of 
National Development and  Reform Commission, www.ndrc.gov.cn  ) which lists all 
existing products and services priced by the Central Government.  
2. Could China please give further information on services sector classified as having direct impact 
on the national economy and people 's livelihood?  
Reply: The important public services listed in the Catalogue of Prices Determined by the 
Central Government include: passenger and freight services of railway transportation, 
passenger fares of domestic civi l air routes, airport monopoly charges, port services, 
prices of transprovincial long -distance pipeline transportation, important postal services 
(including mailing charges, postal remittance charges, postal distribution charges of 
newspapers and periodica ls subject to state regulations, and mailing charges of a single 
package no more than 10  kg), and important professional services (including charges 
for basic services of commercial banks and bank card transaction fees), with the 
exception of competitive f ields. For details, please refer to Decree No.  29 of National 
Development and Reform Commission of the People's Republic of China  (which may be 
accessed through the official website of National Development and Reform Commission, 
www.ndrc.gov.cn  ). 
3. Could China please give clarification on the monitoring of the implementation of price control in 
services?  
Reply: According to the Price Law of the People's Republic of China  and other laws on 
prices, the operators shall, in condu cting price -related activities, abide by laws and 
regulations, and observe government -guided prices and government prices determined 
in accordance with laws. Any operator who fails to implement the government -guided 
prices or government prices shall bear r elevant legal liabilities in accordance with laws. 
For example, Article 39 of the Price Law of the People's Republic of China  stipulates that 
Any operator who fails to implement the government -guided prices, government -set 
prices and legal price interventi on measures and emergency measures shall be ordered 
to make a rectification, confiscated of the illegal gains and may be concurrently imposed WT/TPR/M/3 42/Add.1  
 
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  a fine of less than five times of the illegal gains; where there is no illegal gains, a fine 
may be imposed; where  the circumstances are serious, an order shall be issued for the 
suspension of business operations for consolidation.  
Page 12 , paragraph 25 
China maintains a number of support programmes at the sectoral, regional and enterprise levels to 
attain different e conomic and social goals. In 2015, it submitted a notification to the WTO 
regarding its support programmes at the central level, covering the 2009 -2014 period. The 
notification contains 86 programmes, of which 30 had not been previously notified to the WTO . 
The programmes listed included incentives provided to: Foreign -Invested Enterprises (FIE); 
Special Economic Zones; less developed regions; small and medium enterprises (SMEs); specific 
industries (i.e. energy and strategic emerging industries); and agric ulture . 
1. Could China please provide information on the measures to classify its enterprises into small 
and medium enterprises?  
Reply: SMEs are classified, according to the Notice on Printing and Distributing the 
Stipulations of Classification Standards for Small - and Medium -sized Enterprises, MIIT 
Lianqiye No. 300 of 2011,  into Medium Enterprises, Small Enterprises and Micro -
enterprises. The specific classification standards are developed based on indices 
including the number of employees, business income an d total assets, as well as the 
characteristics of different industries.  
Could China please give further details on the procedures and requirements of the Government of 
China's  support to the small and medium enterprises?  
Reply: The Chinese Government attac hes great importance to the development of SMEs, 
and has established the State Council Leading Group for SME Development. The 
members of the Leading Group include 18 departments such as the Ministry of Industry 
and Information Technology, the National Deve lopment and Reform Commission, the 
Ministry of Science and Technology and the Ministry of Finance. In addition, 
organizations such as China Centre for the Promotion of SME Development and China 
Association of Small and Medium Enterprises provide services n eeded by SMEs and 
speak on behalf of them. For details on the Chinese Governments support, please refer 
to Program 27, 36 and 37 of the Notification on Subsidies at central government level 
for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN).  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.8 Standards and Other Technical Requirements  
3.1.8.1 Standards and Technical Regulations  
Page 62 , paragraph 3.60 
China has four kinds of standards: national, industry /sectoral, local, and enterprise standards. 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 
applicabl e 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 s tandards do not exist. 
However, if and when equivalent national standards are developed, these replace local and 
industry/sectoral standards. The exception to this is in cases where the local standards are stricter 
national ones. Enterprise standards may b e developed for an enterprise when national, 
industry/sectoral or local standards are not available . 
Question:  
1. Could China please provide information on the relevant authority in charge of developing and 
formulating local and enterprise standards?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Local standards are formulated by the competent administrative departments for 
standardization of various provinces (autonomous regions and municipalities directly 
under the Central Government). Enterprise standards are formulated by the enterprises 
themse lves.  
Page 64 , paragraph 3.67 
Chinese standards are divided into mandatory and voluntary standards. Mandatory standards are 
technical regulations. They are mainly related to the protection of human health, personal property 
and safety, and are applied usua lly to: medicines, food hygiene, veterinary drugs, and pesticides; 
labour and transportation safety; construction; environmental emissions; and technical 
terminology. When a technical regulation is to be developed, it must be stipulated that it will be a 
mandatory standard. To this end, for national standards, at the project initiation stage, the 
standardization authority requests an assessment by experts of the need and feasibility of making 
the proposed standard mandatory. Once this is determined, the pro cedures to develop and issue a 
standard and a technical regulation have some differences: at the technical examination stage, 
mandatory standards must be publicly reviewed by convening meetings and the period to receive 
comments cannot be less than two mon ths. Also, before their approval, mandatory standards with 
an impact on trade and not resulting from the adoption (without changes) of an international 
standard must be notified to the WTO. 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) standard could be referenced in a technical regulation, making 
it mandatory.  Government agencies, such as the NDRC and the MIIT, ha ve the faculty to approve 
and promulgate technical regulations that may make reference to voluntary standards, rendering 
them mandatory.  
Question:  
1. Could China please give further information on whether local and enterprise standard belong to 
mandatory or v oluntary standard?  
Reply: Local standards include recommended local standards and mandatory local 
standards. Enterprise standards are formulated and implemented by the enterprises as 
needed on their own.  
3 Trade Policies and Practices by Measure  
3.1 Meas ures Directly Affecting Imports  
3.1.8 Standards and Other Technical Requirements  
3.1.8.2 Product Certification  
Page 66 , paragraph 3.75 
To obtain the CCC mark, an application must be submitted to the authorized accredited 
certification bodies (ACB) desig nated by the CNCA, each of which is authorized to provide 
certification for several products subject to the CCC. In the context of the present Review, the 
authorities have indicated that there are 22 mandatory certification bodies. The application must 
be accompanied by supporting material required under the specific product certification rules. A 
review committee is established by the CNCA, which analyses the application through the 
examination of files, and the organization of meetings and hearings. The i nvestigation may also 
include type -testing of product samples  through a CNCA -designated test laboratory in China, and 
factory inspection by representatives  of a CNCA -designated certification body. The resulting report 
will be analysed by the CNCA, which mu st make a decision within 10 days or 15 days under special 
circumstances. If a product meets the certification requirements, the CCC is issued and the 
applicant notified within 90 days of the date of the acceptance of the application. The CNCA's 
decision i s published on its website. After a CCC is issued, certification bodies re -inspect the 
manufacturing facilities on a regular basis. The frequency depends on the security level and quality 
stability of the product and the classification status of the produc ing enterprise.  Applications to 
renew the CCC must be submitted 90 days prior to the expiry of the certificate. CCCs are valid for 
five years from the date of approval of the application.  WT/TPR/M/3 42/Add.1  
 
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  Question:  
1. Does China accept the result testing from abroad laborato ry that have been accredited from 
accreditation body which have Mutual Recognition Agreement (MRA)?  
Reply: In China's  CCC certification system, tests on products are conducted by 
laboratories within the territory of China appointed by the CNCA. The CNCA ha s explicit 
stipulations on the conditions that appointed laboratories  should meet,  which are  not 
completely identical with the requirements under accreditation. Therefore, 
CCC certification currently cannot directly accept the result s from laborator ies abroad 
that have been accredited by accreditation bod ies covered by MRA. However, the CNCA 
is willing to engage in mutual recognition  cooperation of testing and certification results 
with relevant overseas organizations  on the basis of equality and mutual ben efit so as to 
facilitate the products of both sides to enter each others markets and reduce the 
impacts of testing and certification on trade. Currently, through bilateral and 
multilateral cooperation s, the CNCA has realized mutual recognition  of testing a nd 
certification results with some countries in the fields of CCC certification and the 
certification of other products.  
2. If it does, could China please give detail information on the procedures and requirements to 
conduct an MRA?  
Reply: When carrying out b ilateral recognition, the CNCA usually negotiates with 
relevant foreign departments to sign a MRA, and then the testing and certification 
bodies of the two countries will carry out specific mutual recognition of testing and 
certification results based on t he agreement. As for multilateral recognition, CCC 
certification recognizes the C B report s within the scope of IECEE -CB joined by China. In 
addition, the exact procedures shall be: The applicant shall, according to the 
implementation rules on the specific product, submit relevant technical information to 
the certification body. After the certification body  is entrusted with the task , it shall 
arrange product type testing and factory inspection in accordance with the certification 
rules on the specific produ ct. According to Article 16 of the Regulations on Compulsory 
Product Certification , With regard to products that meet  the certification requirements, 
the certification body shall, under usual circumstances, issue the certificate and notify 
the applicant wi thin 90 days upon  the date of the receipt of acceptance. There are 
currently 23 mandatory certification bodies in China.  
Page 67 , paragraph 3.77 
Under certain circumstances, exemptions from the CCC requirement may be granted. Eligible 
products include: goo ds used in research and testing, to test production lines with the intention of 
importing technology, and to maintain equipment; goods used to complement factory production 
lines (excluding office supplies); and goods imported temporarily, s pare parts or m aterials 
imported under processing trade,  parts of machines to be processed and then exported as a 
complete machine, or goods for exclusive use in commercial exhibitions.  
Question:  
1. Could China give more information on the detail requirements for a product  to be included in 
the exemptions?  
2. Could China give more information on the list of products included in the exemptions?  
Reply 1 -2: According to the Announcement of the Certification and Accreditation 
Administration of China (No. 3 of 2005), products liste d in the Compulsory Product 
Certification Catalogue (CCC Catalogue) do not need to apply for the Compulsory 
Certificates or to obtain CCC marks if they meet the following conditions:  
1. Goods to be used by foreign embassies, consulates and international 
organizations in China, and their diplomatic personnel;  WT/TPR/M/3 42/Add.1  
 
- 228 - 
 
  2. Goods to be used by the Offices of Hong Kong SAR Government and Macao SAR 
Government in Chinese mainland, and their personnel;  
3. Goods brought with people entering Chinese mainland and to be used by  
themselves;  
4. Aid and gifts between governments.  
Goods that meet the following conditions may be exempt from CCC:  
1. Goods to be used in research and testing;  
2. Parts to be used in testing technologies and related production lines to be 
imported;  
3. Goo ds needed by end users for repair and maintenance purposes;  
4. Equipment and parts needed to support factory production lines/complete sets 
of production lines (excluding office supplies);  
5. Goods to be displayed only, but not to be sold;  
6. Goods importe d temporarily and need to be returned (including exhibits);  
7. Parts imported through general trade and then to be exported as a complete 
machine;  
8. Parts to be processed as imported materials or supplied materials and then 
exported as a complete machine.  
For goods listed in the Catalogue that meet the above conditions, producers, importers, 
distributors or their agents may apply to quality inspection institutions, and submit 
applications, proof of qualification for the exemption, guarantees, Declarations of 
Conformity (including typetestreports) etc. After the exemptions from the 
CCC requirement are granted, the goods can be sold, imported or used in business 
activities.  
TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.9 Sanitary and Phytosanitary Requirements  
Page 71 , paragraph 3.90 
Foreign enterprises that manufacture, import, process and store food must be registered with the 
CNCA before their food products are imported into China. In addition, the 2015 Food Safety L aw in 
its Articles 74 -83 stipulates special regulations for certain food or food -related products (e.g. 
supplements, "formula food for special medicinal purposes"; and infant and follow -up formula and 
other special foods), which are subject to strict super vision and administration. Enterprises 
producing these products must fulfil special registration and/or record -filing formalities, establish a 
production quality management system, and submit a "self -inspection" report to the food and drug 
administration o f the local government. Registration and record -filing formalities vary according to 
the product.  
Question:  
1. The regulation entered into force since 20 April 2016 , with transitional period until 
1 October  2017. It stated the obligation to submit a letter o f certification issued by authorized 
agency of country of origin. The letter should be addressed to the Department of Port Inspection 
and Quarantine before entering China's  territory.  Could China please provide details on the 
regulation related to the impo rtation of food products into the territory of China ? 
Reply: The official certification requirements for imported food drew reference from 
relevant provisions of international organizations. The Codex Alimentarius Commission 
(CAC) has specified in the Guid elines for Design, Production, Issuance and Use of 
Generic Official Certificates that the importing countrys competent authority may, as a 
condition for clearance of food presented for international trade, require importers to 
present official certificates  issued by or with the authority of the exporting countrys 
competent authority.  These guidelines recognize that ... official certificates may help 
importing countries to achieve their objectives relating to food safety and ensuring fair 
practices in the fo od trade. The Section on Exported Food of the Manuals of Food Quality 
Control of Food and Agriculture Organization (FAO) states that the quality control and 
inspection system of exported food can raise food enterprises awareness of quality, and 
will benefi t both the export industry and domestic consumers.  WT/TPR/M/3 42/Add.1  
 
- 229 - 
 
  On 25 April, AQSIQ sent the Communication on the Official Certification Requirements 
for Imported Food (Zhijian Shiwai Han [2016] No. 327) to the trading countries 
embassies in China, to notify them of the  measures China planned to take, in the hope of 
having full communication and discussions with those countries, and officially notify the 
WTO after listening to their comments.  
Would there be any exemption applied during the transitional period?  
Reply: Chi na will not madatorily enforce this measure before 1 October 2017.  
TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.5 Export Finance, Insurance, and Guarantees  
Page 77 , paragraph 3.111  
Export finance, insurance, and gu arantees are granted by at least twoinstitutions: the China 
Export -Import Bank (China Eximbank), which provides export finance; and the China Export and 
Credit Insurance Corporation (SINOSURE), which provides export credit insurance and related 
guarantees. China Eximbank  SINOSURE . 
Question:  
1. Indonesia requests information from China on the utilization of Renmimbi (RMB) on trade 
relations between the two countries.  
Reply: In 2015, the bilateral cross -border RMB receipts and payments between China 
and Indonesi a totalled RMB 25.6 billion, in which receipts accounted for 8.8 billion RMB, 
and payments accounted for  RMB 16.8 billion.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Price Controls  
Page 91 , paragraph 3.166 
China continues to apply price controls to commodities and services deemed to have a direct 
impact on the national economy and people's livelihoods, when necessary. Price controls are set by 
the NDRC at the central level, and the provincial DRCs and the Bureau of Commodity Pricing in 
each province.  
Question:  
1. Could China provide information on the list of which commodities whose prices are set by the 
NDRC, the provincial DRCs, and the Bureau of Commodity in each province?  
Reply: The commodities and servic es, the prices of which are set by the Chinese 
Government, are listed in Catalogue of Prices Determined by the Central Government 
and pricing catalogues of various provinces (autonomous regions and municipalities 
directly under the Central Government).  The latest Catalogues can be accessed through 
the websites of the National Development and Reform Commission, Provincial (including 
autonomous regions and municipalities directly under the Central Government) 
Development and Reform Commissions and Price Burea us. For the latest Catalogue of 
Prices Determined by the Central Government, please refer to the Decree No.  29 of 
National Development and Reform Commission of the People's Republic of China  (which 
may be accessed through the official website of National D evelopment and Reform 
Commission, www.ndrc.gov.cn) which lists all the existing products and services that 
are priced by the Central Government.  
Page 92 , paragraph 3.169  
Since the last review in 2014, China has liberalized the price of several goods and se rvices. The 
ex-factory price of explosive materials and the charges for some construction projects were WT/TPR/M/3 42/Add.1  
 
- 230 - 
 
  liberalized in 2014. In addition, in 2015 the prices of military goods and the price of tobacco leaves 
were liberalized, even if the product is still su bject to state monopoly. Government -set prices are 
applied to refined oil products, natural gas, special medicine, and some services (Table 3.15). 
Products classified as the important central reserve materials (grain, cotton, sugar, filature silk, 
crude oi l, processed oil, and chemical fertilizers), which were included in the 2001 Catalogue of 
Central Determined Prices,  were removed from the 2016 Catalogue . 
Question:  
1. Since tobacco industry is included in prohibited category in the 2015 Investment Catalogue  
(Box 2.2)  and since tobacco is still subject to state monopoly, does it also mean that import of 
tobacco is prohibited?  
Reply: The fact that the tobacco industry in China is state -owned and adopts monopoly 
does not necessarily mean that import of tobacco -related products is prohibited. 
Actually China State Tobacco Monopoly  (also named as China National Tobacco 
Corporation) have imported the Indonesian cigar leaves for more than 10 years, 
cigarettes longer than that, cigarette filter rod free of customs dut ies. To our concern, 
the Indonesian goverment has recently initiated a tobacco bill trying to limit the export 
of tobacco leaf and cigarettes on the contrary, which includes the items such as limiting 
the proportion  of imported tobacco leaf to no more than  20% in cigarette blends, 
increasing the customs duties over imported cigarettes to up to 60% of the retail prices 
etc. Obviously , if passed,  the law would severely influence the bilateral mutual -
beneficial tobacco business.  
2. If import of tobacco is not pr ohibited in China, could China please provide information the 
procedures and requirements for tobacco originated from foreign countries to enter China's  
market?  
Reply: As the types of Chinese cigarettes can generally meet the demand of domestic 
consumption , China State Tobacco Monopoly Administration, under the guidance of the 
Ministry of Commerce and the General Administration of Customs, arranges tobacco 
import based on the demand of Provinces (including cities and districts). Please feel free 
to contact China Tobacco International Inc. for details such as the procedures, 
qualifications and requirements.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5 State Trading and State -Owned Enterprises  
3.3.5.2 State -Owned Enterprises  
Page s 95-96 
Based on Secretariat Report, there are many State -Owned Enterprises which have significant 
market share in some economic sectors. The report also inform s the policy reform action to 
enhance the role of private sectors in China's  economy.  
Question:  
1. Could China please give information on the next step of the policy reform to open the market 
access on investment?   
Reply: Several Opinions of the CPC Central Committee and the State Council on 
Establishing a New Open Economic System and the Outline of the 13th Five -Year Plan for 
National Economic and Social Development have made comprehensive arrangements on 
further opening up and easing market access for investment. Going forward, China will 
adopt a pre -establishment national treatme nt plus negative list approach for foreign 
capital management, to further open up the service industry, and lift the opening up of 
the manufacturing industry to a higher level. Key policies include: First, easing 
restrictions on the access of foreign inves tment to the service industry by further 
decreasing the items on the foreign investment negative lists for Pilot Free Trade Zones. WT/TPR/M/3 42/Add.1  
 
- 231 - 
 
  Second, formulating the Catalogue of Priority Industries for Foreign Investment in the 
Mid and Western Regions, and further r educe restrictions on the access of foreign 
investment to the Mid and Western Regions. Third, timely summaring the experience of 
the Pilot Free Trade Zones, and spread the pre -establishment national treatment plus 
negative list management mode across the c ountry as early as possible. Fourth, 
promoting the formulation of the Foreign Investment Law, to provide a stable, 
transparent and predictable legal environment for foreign businesses.  
2. Could China please provide information on the trading procedures of SOE s, is there any issue 
related to Government Procurement procedure?  
Reply: The Government Procurement Law does not apply to the procurement of China's  
SOEs. Therefore, no issue related to Government Procurement procedure is involved.  
3. Could China please give  information regarding the relevant authority in charge of SOEs 
cooperation scheme?  
Reply: Like other enterprises of other ownership, SOEs carry out all business activities 
within the legal framework and according to market rules.  
4 TRADE POLICIES BY SECTO R  
4.1 Agriculture  
4.1.3 Policy Instruments  
4.1.3.1 Border Measures  
4.1.3.1.1 Measures Affecting Imports  
Page 118 , paragraph 4.10 
The VAT on agricultural domestic and imported goods is 13%. However, agricultural goods 
produced and sold directly by smal l-scale farmers remain exempt from the VAT. Tobacco leaf (i.e. 
sun-dried leaf tobacco and toasted leaf tobacco) purchased in China are subject to a 20% tobacco 
leaf tax . The authorities stated that the tobacco leaf tax is not levied on imported tobacco lea f. 
Question:  
1. Could China please give further information concerning the statement that imported tobacco 
leaf tax is not levied?  
Reply: According to the Interim Regulations on Leaf Tobacco Tax of the People's 
Republic of China , the entity  purchasing the le af tobacco within China is the taxpayer of 
leaf tobacco tax, meaning the leaf tobacco tax is only levied during the purchasing  
instead of  the importing process.  
Page 118 , paragraph 4.11 
In 2015, the number of agricultural products subject to automatic impo rt licences increased 
slightly as the requirement was imposed on seven additional products (sugar). Thus, in 2015 
licensing requirements applied to 83 (76 in 2013) agricultural products (WTO definition), out of a 
total of  396 (442 in 2013) products subject  to automatic import licensing (17.2% of the total). The 
main products concerned were: meat, dairy products, oilseeds, fats and oils, and tobacco. All 
agricultural products were subject to non -automatic import licensing. As of 1 September 2015 
automatic im port licences were also applied to four additional agricultural products (i.e. barley, 
sorghum, cassava and maize for brewing), equivalent to 8 tariff lines at the HS 8 -digit level.  
Question:  
1. Could China please give further details on the list of agricult ural products that are subject to 
automatic import licensing?  
Reply: For details, please refer to the Catalogue of Goods Subject to Automatic Import 
Licensing (2015), MOFCOM GACC Joint Announcement  No. 93 of 2014 (at: WT/TPR/M/3 42/Add.1  
 
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  http://www.mofcom.gov.cn/article/b/c/201410/20141000768537.shtml ) and the 
Announcement of Incorporation into the Catalogue of Goods subject to Automatic 
Import Licensing of Goods, MOFCOM -GACC No. 34 of 2015 (at: 
http://www.mofcom.gov.cn/article/b/c/201508/20150801078101.shtml  ). 
4. TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.3 Policy Instruments  
4.1.3.1 Border Measures  
4.1.3.1.2 M easures Affecting Exports  
Page 118 , paragraph 4.13 
In general, exports of agricultural goods are not subject to export taxes. There are only fourtariff 
lines subject to an export tax of 40% (Table 3.10). VAT rebates at rates ranging from 0% to 15% 
apply t o agricultural exports. The most common rebate rate, based on a tariff line analysis at 
HS 8-digit level, is 5%, which applies to 42% of all tariff lines, followed by 0%, which applies to 
27% of all tariff lines, and 15%, which applies to 24% of all tariff  lines some of which are major 
exports (e.g. prepared fruits and nuts, and other prepared/preserved vegetables) (Table  4.1). The 
rebate rate of 13% applies to chicken, duck and other meats; while products such as: cereals, 
oilseeds and vegetables have a re bate rate of 0%, and endangered animals or plants, not an 
encouraged export, are exempt from the rebate.  
Question:  
1. Could China please provide further information on the requirements to obtain the VAT rebate?  
Reply: For export tax rebate system, China adop ts internationally -accepted practice 
which is to give back the exporter all taxes that are paid during the production and 
distribution of goods and labour services. Thus, the exported goods and labour services 
could engage in international market competitio n with a price without taxes, which is in 
accordance with international practices. During the making of the policy, China insist ed 
on the principle of refunding all refundable taxes . The taxes that goods and 
labour services afforded at home shall be refunde d in principle, expect those that China 
does not encourage its export due to environmental protection  reasons .  
Would VAT rebates still be implemented in the coming years?  
Reply: VAT rebates is a part of Value Added Tax System of China and a lasting policy  as 
well.  
2. Is there any sector besides agricultural products that is granted to this export rebate?  
Reply: Except those products that are not qualified for  the export rebates, all export 
products including agricultural products are entitled  to export rebate . 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.3 Policy Instruments  
4.1.3.2  Internal Measures  
4.1.3.2.1 Support Measures  
Page 121 , paragraph 4.20 
Subsidies remain in place to purchase inputs, improved crop strains, agricultural machinery, and 
tools.  These subsidies are centrally funded but theprovincialgovernments formulate the 
implementation procedures, which vary according to local conditions; as a result, there is no 
general rule regarding its application. The objective of the centrally funded Com prehensive 
Subsidy on Agricultural Inputs, introduced in 2006, is to compensate grain producers for any 
increase in the price of agricultural inputs, such as fertilizer and diesel fuels; however, it is 
implemented as a payment per unit of land, and it is n ot linked to the cost of production. 
Budgetary transfers for this programme have remained unchanged since 2012 at WT/TPR/M/3 42/Add.1  
 
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  RMB 107.8  billion. The Subsidy for Promoting Superior Strains and Seeds scheme introduced in  
2002 to improve thequality of seeds and livestock  covers: cotton, maize, rice and wheat 
throughout China, and soya beans, rapeseed, cotton, potatoes, highland barley and peanuts, in 
specific areas of the country. Livestock covered by the scheme includes: pigs, beef cattle and 
sheep. The scheme has been e xtended continuously to cover larger areas of the country. The 
application of the subsidy varies according to the type of seed. The cost of this programme has 
decreased since 2012 from RMB 21.9 billion to RMB 21.4 billion in 2014 (Table 4.5) . 
Question:  
1. Could China please provide clarification for agricultural products that are eligible for 
government subsidy (Table 3.12) is in coherence with MC 10 results?  
Reply: The subsidy policies listed in Table 3.12 doesnt seem to related to export subsidy 
or credit s upport for agricultural products (most of them have expired by 2015). Thus, 
we think that they should not be governed by MC 10 results.  
4 TRADE POLICIES BY SECTOR  
4.2 Services  
4.2.3 Health and Social Services  
4.2.3.1 Hospital and Medical Services  
Page 1 39, paragraph 4.89 
The second limitation listed in China's GATS commitments indicates that foreign doctors with 
professional certificates issued by their home country shall be permitted to provide short -term 
(six months to one year) medical services in Chi na after they obtain licences from the Ministry of 
Public Health. This would seem to apply in practice only to doctors employed by health institutions 
given that, due to other requirements, it does not seem to be possible for a foreign doctor to 
exercise m edicine as a self -employed person or open a private practice. To obtain a licence, 
foreign doctors require a certificate and agreement from the inviting or employing institutions (one 
or more), or a declaration, to bearthecorrespondingcivilliabilities . In principle, registrations for a 
foreign doctor to provide short -term medical services in China cannot exceed one year. However, if 
required, foreign doctors may re -register. The health administrative departments at the level of 
municipality divided into dis tricts are in  charge of registering foreign doctors. An application must 
be examined and verified within 30 days of receipt, and applicants or their entrusted institutions 
must be informed in writing . 
Question:  
1. Could China please give information on wheth er there are limits on how many times a foreign 
doctor could re -register?  
Reply: According to the Interim Measures for the Administration of Foreign Doctors to 
China for Short -term Medical Practice, the registration period for a foreign doctor to 
provide s hort-term medical services in China cannot exceed one year. When the 
registration is expired, foreign doctors may re -register. At present, there is no 
restriction in the number of registration.  
2. Is this policy a horizontal measure?  
Reply: This policy is onl y applicable to hospital and medical services, and is not a 
horizontal measure.  
3. Is this policy only applicable to hospital and medical services? If it is not only applicable to 
those services, could China please give information on the sectors covered by t he said policy?  
Reply: Please refer to the above reply.  WT/TPR/M/3 42/Add.1  
 
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  WT/TPR/G/342  
2 Economic and Trade Environment and Macroeconomic Policy Direction  
2.4 Continuing to Deepen the Reforms Steadfastly  
2.4.4 Reform of State -Owned Enterprises and Development of the Privat e Economy  
Page 12 , paragraph 2.43 
In order to promote the common development of economy of various ownerships, the Chinese 
government has constantly enhanced its support to SMEs, particularly small enterprises with low 
profits.  From 1 October 2015 to 31 D ecember 2017, the upper limit of the annual taxable income 
of small enterprises with low profits that enjoy preferential income tax policies has increased from 
200,000 yuan to 300,000 yuan (including 300,000 yuan). 50% of the income of these enterprises 
is included in the taxable income and the enterprise income tax is charged at the rate of 20%. 
Effective from 1 August 2013, small -scale taxpayers of VAT and taxpayers of b usiness tax with 
monthly sales of not more than 20,000 yuan has been temporarily exemp ted from VAT and 
business tax.  From 1 October 2014 to 31 December 2017, the application scope of this preferential 
treatment has been extended to small -scale taxpayers of  VAT and taxpayers of business tax with 
monthly sales of not more than 30,000 yuan. Fr om 1 November 2011 to 31  December  2017, the 
lending contracts concluded between financial institutions and small enterprises with little profits 
have been exempted from stamp duty. Starting from 1 January2015, small enterprises with little 
profits have bee n exempted from 42 administrative undertaking charges at the central 
government level.  
Question:  
1. Could China please provide information on how to categorize its industry in term of industrial 
scale, such as small, medium, and large?  
Reply: In 2011, Minist ry of Industry and Information Technology, National Development 
and Reform Commission, Ministry of Finance and National Bureau of Statistics 
formulated the Notification on Standards of Categorizing Small and Medium Enterprises 
(No. 300, 2011). According to  the standards, the small and medium enterprises are 
divided into three types, medium, small and micro -sized . Specific standards are 
formulated according to employees, operating revenue, gross value of assets and other 
relevant factors, considering  industr ial characteristics. For details of standards for each 
industry, please refer to the  above -mentioned  Notification.  
2. Could China please give information on the mechanism of the government support to the 
SMEs?  
Reply: The Chinese Government attaches great impo rtance to the development of SMEs, 
and has established the State Council Leading Group for SME Development. The 
members of the Leading Group include 18 departments such as the Ministry of Industry 
and Information Technology, the National Development and Re form Commission, the 
Ministry of Science and Technology and the Ministry of Finance. In addition, 
organizations such as China Centre for the Promotion of SME Development and China 
Association of Small and Medium Enterprises provide services needed by SMEs and 
speak on behalf of them. For details on the Chinese Governments support, please refer 
to Program No. 27, 36 and 37 of the Notification on Subsidies at central government 
level for 2009 -2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN).  
3 TRADE A ND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
3.1 Trade and Investment Development  
3.1.1 Trade Development  
Page 16 , paragraph 3.9 
China's trade in services has maintained steady and fast development since 2014. In 201 4 
and 2015, China's total imports and  exports of services reached US$ 604.3 billion and 
US$713.0billion respectively, growing by 12. 6% and 14. 6% year on year in comparable terms . 
In 2014, China's trade in services overtook that of Germany to rank the second in the world for 
the first time. Tot al value of service export stood at US$222.2 billion and US$288.2 billion in 2014 WT/TPR/M/3 42/Add.1  
 
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  and 2015 respectively, showing a year -on-year growth of 7.6% and 9.2% and quickened 
development of trade in services . Total value of service import was US$ 382.1 billion and 
US$424.8billion respectively, showing a year -on-year growth of 1 5.8% and 1 8.6%, which was 
notably higher than that of service export . In 201 5, deficit of trade in services expanded from 
US$118.5 billion in 201 3 to US$1 36.6 billion, mainly sourced from such sectors as travelling , 
transportation, IPR royalties and etc.  
Question:  
1. Despite the deficit, China's  international trade in services shows great development. Please 
elaborate more on the role and contribution of the Government of China to the development of 
trade in services?  
Reply: The Chinese government attaches great importance to the development of trade 
in services, through actively creating a sound  policy environment and making efforts to 
enhance liberalization and facilitation of trade in services. The work includes: 
establishing a Inter -Ministerial Conference system for the development of trade in 
services under the State Council and enhancing the cooperation  between government 
departments; issuing a number of guidance documents about the trade in s ervices 
(please refer to No. 3.24 of China's Trade Policy Statement) and facilitating the planning 
and guidance of trade in services; actively developing exhibition platforms such as 
CIFTIS and promoting international organizations to carry out more discus sion on trade 
in services; and facilitating the coordination of projects of trade in services of each 
country and deepen ing international cooperation in trade in service s. 
3 TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
3.2 Promoting Balanced and Sustainable Development of Trade and Investment  
3.2.1  Implementing Proactive Import Policy  
Page 18 , paragraph 3.18 
The Chinese government has continued to implement interim tariff rates on certain imported 
products which were lower than the applied MFN r ates. In 2015, interim tariff rates were applied to 
749 items of commodities, and in 2016, to 787 items of commodities, thus further increasing 
import to meet the needs of domestic consumption and industrial structure.  
Question:  
1. Could China please provide  the list of the 787 items of commodities?  
Reply: Yes. For details, please refer to Annex  1: Interim Tariff for Imported Products of 
2016 Tariff Adjustment Program approved by State Council Tariff Commission (website: 
http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201512/t20151209_1604527.html ) 
3 TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES   
3.4 Constructing Economic and Trade Partnerships Based on Mutual B enefit and Win -Win  
3.4.3 Promoting Regional and Bilateral Economic and Trade Cooperation and Other 
Arrangements  
Page 24 , paragraph 3.56 
China has continued to accelerate its steps in implementing the free trade area (FTA) strategy . By 
the end of 2015, it  has signed and put into effect 14 FTAs with 22 countries and regions.  
Currently, China is actively engaged in a number of FTA negotiations, including the Regional 
Comprehensive Economic Partnership (RCEP), China -GCC FTA, China -Japan -Republic of Korea FTA,  
China -Georgia FTA and etc. Since the last review, China has reached FTAs with Australia and the 
Republic of Korea respectively, which came into effect on 20  December 2015. In November 2015, 
China and ASEAN signed the FTA Upgrading Protocol. In the same mo nth, Mainland China signed 
the CEPA Agreement on Trade in Services with Hong Kong, China and the CEPA Agreement on 
Trade in Services  with Macao, China, both will be implemented as of  1 June2016.  WT/TPR/M/3 42/Add.1  
 
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  Question:  
1. As the member of various FTAs, China is committed to open up its market, including 
downstream sector. Could China please provide information about the implementation of the 
commitment that has been made in the FTAs, especially for downstream sector?  
Reply: At present, China has signed and put into effect 14 FTAs. It has been earnestly 
fulfilling all commitments under the Free Trade Agreement, and is committed to promote 
the liberalization and facilitation of trade and investment between free trade partners. It 
is hoped that Indonesia could give a clear def inition on downstream sectors so that 
China can provide the reply in detail . 
2. The negotiation for mega -regional trade agreement with the scope more than just a trade is 
growing these days, including the active participation of countries from Asia Pacific re gion, such as 
Regional Comprehensive Economic Partnership (RCEP) and Trans Pacific Partnership (TPP). Could 
China kindly share its view regarding the development of those kind of trade agreements, 
including their relations with the World Trade Organization s? 
Reply: The Multilateral Trading System (MTS) and Regional Trade Arrangements  (RTAs) 
are two wheels driving the economic globalization forward. MTS is the main channel to 
solve problems of global trade. Since WTO s establishment 21 years ago, it has been 
playing an irreplaceable role in global trade and investment liberalization and world 
economy growth. The regional trade liberalization is its beneficial supplement. They 
promote each other and develop together . 
China is an active participant, supporter  and contributor of MTS, and upholds that  the 
MTS, represented by WTO,  is the main channel of the global trad ing rules . 
China believes, and has emphasized on many occasions, that the successful and on -
going FTA negotiations in Asian -Pacific region are an impo rtant path to promote the 
liberalization and facilitation of trade and investment in the Asian -Pacific region, 
regional integration and economic development; they are a contribution to the 
sustainable development of global economy. China is open to any sys tem that is in 
accordance with WTO rules and is conducive to economic integration in the Asian -Pacific 
region . 
Others  
Trade Barrier Concerning the Importation of Cigarette Paper  
Question:  
1. Could China please give detail information on the procedure and req uirements of import of 
cigarette paper into the territory of China?  
Reply:  Please referer to http://www.tobacco.gov.cn/html/27/2701/270108/ 
766056_n.html  
Trade Barrier Concerning the Importation of Tropical Fruits  
Question:  
1. Could China please provide information on whether there would be a cooperation to establish a 
protocol similar to The Protocol of Phytosanitary Requirements for the Export of Mangosteen Fruits 
from Indonesia to  China which would be applied to other tropical fruits originated from Indonesia?  
Reply: China is negotiating with Indonesia on the protocol of phytosanitary 
requirements for the export of mangosteen fruits from Indonesia to China. According to 
quarantine access procedures for imported agricultural products, if Indonesia intends to 
export other kinds of tropical fruits to China, it needs to provide the related risk -
analyzing materials for the fruit(s) intended to be exported to China. China will initiate WT/TPR/M/3 42/Add.1  
 
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  risk analysis of the suggested tropical fruits after the mangosteen fruits are granted 
market access according to the order of priority provided by Indonesia. The protocol of 
phytosanitary requirements for the fruit will be signed right after the risk analys is is 
completed and the concensus on the phytosanitary requirements of the fruit is reached.  
Trade Barrier Concerning the Importation of Ornamental Fish  
Question:  
China's  General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ) ha s 
implemented new regulations regarding the importation of ornamental fish since June 2016, which 
is supposed to ease importation by registered importers. However, during implementation, 
Indonesia' s export of ornamental fish is hampered by the fact that im ported ornamental fish has to 
be inspected and quarantined in China, despite having been registered and cleared in Indonesia. 
Please explain the regulation and how it is implemented with regard to the importation of 
ornamental fish in China  
Reply:  Measure s for the Administration of Inspection and Quarantine of Imported 
Aquatic Animal has not been officially in force. After it is put into effect, there will be an 
interim period of six months. The inspection and quarantine of imported ornamental fish 
after e ntering the border is an international practice and is consistent with relevant 
rules of OIE. We hope that Indonesian inspection and qurantine departments can work 
closely with China's  General Administration of Quality Supervision, Inspection, and 
Quaranti ne (AQSIQ) to finish the assessment and registration of fish farms and 
packaging farms of ornamental fish intended to be exported to China within the interim 
period. After the registration, China will only import ornamental fishes from the 
registered fish farms and packaging farms. After the registration, China will actively 
consider facilitation measures on inspection and quarantine of imports while taking into 
consideration the field trip assessment of the registered fish farms and packaging farms.  
Trade Barrier Concerning Import Duties on Paper Products  
China imposes high import duties on paper products.  
Question:  
1. Would China please give information on the reason for imposing high import duties on paper 
products?  
2. Would there be any reform on the said r egulation?  
3. Could China please provide information on the way for paper products originated from foreign 
countries to have a better market access in China's  market?  
Reply 1 -3: China imposes a value added tax of 17% on imported paper products, which 
is a us ual rate compared with most of other products. According to Customs Tariffs on 
Imports and Exports of the People's Republic of China of 2016, the import duties of 
paper products are 0 -7.5%, which are not high in general. Besides, China has cut the 
import d uties of some paper products under the free trade agreements with the member 
countries of Association of Southeast Asian Nations (ASEAN). Those member countries 
can export relevant products by making full use of the preferential duties provided in 
the agre ement.  
Trade Barrier Concerning the Importation of Milk Products  
Question:  
1. Could China please give information on export procedure for milk products (Regulation 
Number  152 Year 2013) from General Administration of Quality Supervision, Inspection and 
Quaran tine?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Article 3 Export of Dairy Products of the Administrative Measures on Inspection 
and Quarantine of Export -import Dairy Products (AQSIQ [2013] Decree No. 152) 
contains relevant provisions on the export procedures of dairy products, viewed at 
(http://www.chinatt315.org.cn/qwfb/2013 -2/1/39700.aspx ). 
Trade Data Discrepancies  
Question:  
1. Could China please give clarification on trade data discrepancies between China and Indonesia?  
2. Could China please give further information on the progress of the plan to establish a 
cooperation to overcome trade data discrepancies?  
Reply 1 -2: The experts of China and Indonesia are exchanging trade data regularly 
according to MOUs signed by the two p arties and are actively working on the 
discrepancies of trade data. The experts will hold conferences to exchange views on 
statistical system and the best approach so that the trade data can be verified and the 
causes of discrepancies addressed.  
Trade -Related Barrier Concerning Provision on Insurance System Informatization  
Article 53 [Secure and Controllable] Insurance institutions shall give first priority to the 
procurement of secure and controllable hardware equipment and software products, steadily 
introduce the application of secure and controllable products, actively create conditions to raise the 
indigenous research and development level, and continuously enhance insurance institutions 
strength in security and controllability of informatization.  
Quest ion:  
1. Could China please give clarification on the meaning of the phrase secure and controllable as 
stated in Article 53 of the draft of the measure?  
2. Could China please provide clear definition on the products that would be classified as not 
secure and co ntrollable?  
3. Would the said provision be applied equally to domestic as well as foreign -owned insurance 
companies in China?  
4. Could China please provide information on the requirements for foreign -owned companies to 
comply with the said provision?  
Reply 1 -4: The purpose of this article is to ensure cyber and information security of 
insurance industry. It does not exclude foreign products, services and technologies. It is 
in line with the security policy under ICT framework. Secure and controllable has three 
implications: firstly, the information system of the user is not allowed to be remotely 
controlled when the user is not informed; secondly, the data and information of the user 
is not allowed to be retrieved without the consent of the user; thirdly, the prov iders of 
products and services of user information system are not allowed to stop their services 
without justified reasons. This article is legally binding on an equal basis for both 
domestic and foreign -invested insurance enterprises.  
Trade -Related Barrie r Concerning National Standards for Furniture Products  
Question:  
1. Could China please give detail information on National Standard of the People's Republic of 
China : Limit of Volatile Organic Compounds and Migration of Heavy Metal of Wood Based Furniture 
as well as other latest standards on furniture products?  WT/TPR/M/3 42/Add.1  
 
- 239 - 
 
  Reply: China has completed  the WTO/TBT notification of National Standard of the 
People's Republic of China  of Limit of Volatile Organic Compounds and Migration of 
Heavy Metal of Wood Based Furniture in  2015. Currently, China is reviewing the 
standard according to the plan of clearing up and integrating compulsory standards and 
there will be follow -up work according to its results.  
2. Would China consider using related internationally accepted standards suc h as ISO -standards?  
Reply: China applies ISO -standards actively in making the national standards in 
furniture. China will continue to follow closely the dynamics of international standards 
to better transform international standards to Chinese ones and sy nchronize China's  
standard with the internationally accepted ones.  WT/TPR/M/3 42/Add.1  
 
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  26  ISRAEL  
1. We welcome the recent moderni zation in China's  cosmetic regulatory framework, while at the 
same time we note that during the review period Members raised 11 TBT specific concerns  to 
China regarding the rationale, legitimacy and transparency of applied technical requirements that 
diverge from international practice.  In particular relation to cosmetics and cosmetic ingredients, by 
continuing to impose a pre -market animal testing req uirement to foreign companies producing 
cosmetics for the Chinese market, the requirements seem to be more restrictive than necessary. 
In view of the existence of alternative testing methods, we would be interested in the rationale of 
this measure, in part icular its distinctive application between national and foreign manufacturers. 
In this context, we are interested in understanding better the rationale of the differences 
pertaining to domestic vis -a-vis foreign manufacturers and in China's  clarification o f whether all 
cosmetic manufacturers are treated equally with respect to alternatives to product registration and 
approval?   
Reply: First, there are no differentiated treatments pertaining to domestic vis-a-vis 
imported cosmetics in terms of the requiremen ts in administrative approval and testing. 
In accordance with the Regulations for the Hygiene Supervision of Cosmetics , when 
applying for administrative approvals, the testing reports including those of toxicology -
related experiments need to be submitted f or both domestic and imported products.  
Second, it is a common principle observed in all cosmetic -related rules and regulations 
across the globe that only those products proven to be safe in safety evaluations could 
be admitted into the market, so as to e nsure the safety in cosmetic application. To 
safeguard the health and safety of consumers, China at present is yet to replace animal 
testings completely with alternatives as the technologies of alternative testing methods 
are not yet mature enough. In othe r words, necessary animal testings will remain 
irreplaceable for a certain period to come.   
Thirdly, in terms of cosmetic safety assessment, China has always been a positive 
supporter of the 3R principle in animal testing aimed at protecting the wellbeing of 
animals. China has been committed to promoting the use of alternative methods to 
animal testing in this regard.  
2. We note from the Secretariat and Government reports that China takes transparency 
obligations seriously and we welcome the efforts China undertakes to make available information 
on draft measures affecting trade. However, in this context the solicitation of public comments on 
drafts of trade -related measures related to the dietary supplement industry is an issue that 
concerns us given the e xtremely short deadlines allowed for comments. A recent case in point 
concerns the Health Food Registration Technical Evaluation Rules, which was released on 
June 8, 2016 with a comment deadline of June 17, 2016. That is only 9 days, of which 3 days was 
the Dragon Boat Festival Holiday. An extremely short time that made it impossible to translate 
(60 pages), distribute among industry members and present comments. We are interested in 
learning more about the concrete steps China is taking to allow sufficient  time for commenting 
draft measures affecting trade in line with international practice and WTO Agreements?  
Reply: On February 26th, 2016, the  State Food and Drug Administration (SFDA) 
promulgated the Provisions for Health Food Registration and Filing , wh ich articulated 
the registration procedure of health food and the materials needed thereof. To further 
standardize the procedure and requirements of technical evaluations at the SFDA  Centre 
for Health Food Evaluation, China has drafted the Health Food Tech nical Evaluation 
By-laws  (Draft for Public Comments ), as a supporting document to the Provisions for 
Health Food Registration and Filing . The By -laws are not a regulation, and is thus not 
subject to TBT notification. Besides, the By -laws are still in the p rocess of being revised 
and improved and is open to any opinions as feedback.  
3. Could China provide further information and the rationale for the differential in the application 
fees at the CFDA with regards to registration of drugs and medical devices. F or example, the initial 
registration fee of imported Class II or III devices would be more than twice that of the equivalent 
domestic registration. Could China please elaborate on the National Treatment compliance and 
rationale in the fees structure put fo rward?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The difference that exists between domestic and foreign drugs and medical 
devices in terms of registration fees mainly reflects the different costs of transport, 
accommodation, catering and miscellaneous fees incurred in the process of examin ation. 
This complies with the National Treatment principle.  WT/TPR/M/3 42/Add.1  
 
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  27  JAPAN  
W/TPR/S/342  
SUMMARY  
Question 1: Page 8, Paragraph 2  
The Secretariat 's report states: "The authorities have … recently taken steps aimed at dealing with 
overcapacity in certain industries. M easures were introduced to discourage or reduce production in 
industries such as iron and steel, electrolytic aluminium, cement, plate glasses and vessels. Local 
authorities and central departments are not allowed to approve any new capacity -expanding 
projects in those areas. " Japan understands that those measures aim to reduce, and/or prohibit 
the expansion of, production in those industrial sectors where overcapacity already exists. Does 
China also plan to take any steps for preventing a similar supply -demand gap from arising in the 
future in those and other industrial sectors, e.g. by ensuring appropriate functioning of the 
market? If so, please explain.   
Reply: The Chinese Government has attached great importance to the problem of 
overcapacity. From 2013  to date, the State Council has issued several guiding opinions, 
making special arrangements aimed at dealing with overcapacity in industries such as 
steel, coal, electrolytic aluminium and cement. The main idea of these measures is to 
strengthen the mecha nism of market competition and market choice and reduce 
overcapacity through complete, fair, open and transparent market rules. First, enable 
the enterprises to get a better idea of the real production cost, conduct more objective 
cost-benefit analysis by taking into account market situations both at home and abroad 
and make decisions that are more aligned with market principles, by strict implementing 
laws, regulations and industrial policies on environmental protection, energy 
consumption, quality, safety  and technology. Second, help solve the problem of laid -off 
personnel when enterprises are closing down excessive production capacity through 
rewarding or compensatory personnel placement,  re-employment assistance and other 
measures. Third, mitigate the co ntradiction of supply exceeding demand through 
boosting domestic demand such as promoting the use of steel structure buildings in the 
transformation of shantytowns and dilapidated houses and the construction of quake -
proof  housing projects, thus expanding the application of steel in downstream sectors.  
1. ECONOMIC ENVIRONMENT   
1.2.2 Structural reform measures   
Question 2:  Page 20,  Paragraph 1.17  
According to the Chinese 13th five -year plan (2016 -2020), it shows the enhancements of 
advanced industries, curr ent service industries and the strategic new industries until 2020. In this 
regard, Japan would like to know their promoting plan and confirm the implementation of non -
discriminatory to foreign enterprises in China.  
Reply: The contents of China 's 13th Five-Year Plan concerning industrial development 
will be mainly realized through the autonomous behavio urs of market players. The 
Chinese Government has been all along committed to creating an open and transparent 
legal and policy environment and a market envi ronment for equal competition. The 
Chinese Government treats foreign - and Chinese -invested enterprises alike in 
investment in such fields as emerging and high -tech industries and regarding policies on 
intellectual property right and innovation incentives, and stresses fairness without 
discrimination.   
Question 3: Page 22, Paragraph 1.23  
It is mentioned that "local authorities and central departments are not allowed to approve any new 
capacity expanding projects in those areas ". Is it allowed for the local a uthorities and central 
governments to provide financial support or any other kind of support, aid or benefit ( "subsidies ") 
that would facilitate the maintenance of the current production capacity?  Is there any rule or 
regulation that prohibits the local au thorities and central governments from providing subsidies to WT/TPR/M/3 42/Add.1  
 
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  insolvent or ailing enterprises without a credible restructuring plan based on realistic assumptions?  
"秘书处报告指出 ": "local authorities and central departments are not allowed to approve any new 
capacity expanding projects in those areas ". 
Reply: The Chinese Government has attached great importance to the problem of 
overcapacity. From 2013 to date, the State Co uncil has issued several guiding opinions, 
making special arrangements aimed at dealing with overcapacity in industries such as 
steel, coal, electrolytic aluminium and cement. The main idea of these measures is to 
strengthen the mechanism of market competi tion and market choice and reduce 
overcapacity through complete, fair, open and transparent market rules.   
2. TRADE AND INVESTMENT REGIME   
2.5 Foreign Investment Regime   
Question 4:  Page 37,  Paragraph 2.5.1   
With regard to ensuring the transparency, Japan would like to know in advance the Chinese 
national Laws which will enforce such as the Foreign Investment Law. In addition, has Chinese 
authority considered that are "unifying practical use of legal interpretation ", "the enough lead time 
when being institu tional change " and "the simplification / acceleration of procedures "? If they have 
considered it, Japan would like to confirm the specific criteria of the judgment to fulfill them.   
Reply: In January 2015, the Ministry of Commerce of China drew up the Fore ign 
Investment Law of the People 's Republic of China (draft for opinion solicitation) and 
released it for public comment. The legislative intent of this law is to create a more 
stable, transparent and predictable legal environment for foreign investment. N ext, 
China will facilitate the promulgation of the Foreign Investment Law at an earlier date 
according to established domestic legislative procedures. Currently, there is no specific 
timetable as to when it will take effect.  
3. TRADE POLICIES AND PRACTICE S BY MEASURE   
3.1 Measures Directly Affecting Imports   
3.1.5 Other charges affecting imports   
Question 5: Page 53, Paragraph s 3.20, 3.21  
The Customs Tariff Commission of the State Council of China has published a notice, 
"关于调整进境物品进口税有关 问题的通知 ", on 16 March 2 016 and raised a tax, "进境物品进口税". It 
seems that tariff rates of "进境物品进口税" on some goods exceed the WTO binding rates. Please 
explain the reasons to think such a tariff is consistent with the WTO agreements.   
Reply: According to the Regulations of China on I mport And Export Duties and the 
Import Tax Rates Table of Imported Goods, the tax rates of imported goods refer to the 
comprehensive tax rates of imported goods that fall into corresponding taxable products 
(including customs duties, and VAT and consumptio n tax during the import), and are not 
simply import duties.  
Embassy of Japan in Beijing made inquiries to the Ministry of Finance and Ministry of Commerce of 
China as of 26 May 2016 on the same issue, and has received an explanation from Ministry of 
Finan ce that "进境物品进口税" is applied to passenger luggage and private goods sent by post, 
which are not relevant to trade, therefore the WTO agreements doesn 't apply to that tax and the 
recent raise of the tax does not make violation to the WTO agreement, and that  "进境物品进口税" is 
an integrated tax, consisting of custom duties, "輸入増値税 " and the consumption tax though it is 
not a simple addition of those three taxes.   
It is questionable if the WTO agreements are not applicable to such tax on passenger luggage and 
private  goods sent by post. If such private goods and trade goods are clearly distinguished each 
other in China, what kind of criterion exist there? Is the criterion made public?  
Reply: For the criterion, please refer to the Customs Law of China.  WT/TPR/M/3 42/Add.1  
 
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  The relation bet ween "进境物品进口税" and the WTO binding rate should be further explained as 
"进境物品进口税" includes custom duties. We would like to receive all the HS codes of the goods 
listed in the "关于调整进境物品进口税有关 问题的通知 ". Also, if it is not a simple addition of custom 
duties, 輸入増値税  and the consumption tax, what is the calculation method for "进境物品进口税"?  
Reply: For the taxation methods of products, please refer to the Regulations of China on 
Import And Export Duties of the People 's Republic of China, Classification Table of 
Imported Goods o f the People 's Republic of China, List of Duty -Paid Value of Imported 
Goods of the People 's Republic of China, and Import Tax Rates Table of Imported Goods 
of the People 's Republic of China. (Websites for reference: http://www.gov.cn/ 
test/2005 -07/06/content_12585.htm  ; http://www.customs.gov.cn/publish/portal0/ 
tab399/info363071.htm  ; and http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/ 
201603/t20160324_1922971.html ). 
3.1.7 Anti -dumping, countervailing, and safeguard measures   
3.1.7.1 Anti -dumping measures   
Question 6:  Page 57, Paragraph 3.31   
In recent years, the investigation procedures and determinations by MOFCOM were found to be 
inconsistent with the AD Agreement by the Panels and the Appellate Body specifically with regard 
to, inter alia, (i) inadequate disclosure  of essential facts, (ii) inadequate explanation of findings 
and conclusions in the public notice of the final determination, and, (iii) a failure to conduct an 
objective examination of the volume and price effect of the dumped imports, the impact of the 
dumped imports on the domestic industry, and the causation between the dumped imports and 
injury to the domestic industry (Please see the reports of DS414, DS425, DS427 and DS440).  
Particularly, the Appellate Body (DS454) determined that the investigating authority is required to 
consider dynamic assessment of price developments and trends in the relationship between the 
price of the dumped imports and those of domestic like products, and explanatory force. In 
addition, the Appellate Body also determined th at with regard to substitutability, the investigating 
authority is required to not only assess whether imported goods and domestic goods share 
particular physical characteristic or have the same general use, but also consider whether 
customers demand a ran ge of products. Taking into account of these findings of the panels and the 
Appellate Body, how does and shall China, in detail, insist to conduct the investigation in a manner 
consistent with the AD Agreement.   
Reply: China has strictly abided by the WTO rules during AD investigations. China 
respects and has faithfully implemented relevant rulings made by the dispute settlement 
bodies. Meanwhile, during follow -up investigations, China has constantly improved its 
investigation procedures based on the sugges tions made by the Panels and the 
Appellate Body . 
Question 7: Page 58, Paragraph s 3.37, 3.38  
Japan is concerned about that the Chinese authority uses "the sampling " frequently without 
appropriate consideration. According to the report by the Secretariat, th e sampling may be used in 
cases where the number of exporters, producers, importers or types of products involved is so 
large that it would be unduly burdensome and prevent the timely completion of the investigation. 
Japan would like to confirm, in detail,  the criteria of the judgment for "unduly burdensome " and 
"prevent the timely completion of the investigation ". In addition, has the Chinese authority 
considered the requirement to use statistically valid samples? If Chinese authority has considered 
it, Japan would like to confirm the specific criteria of the judgment to fulfil the requirement of 
"statistically valid ".  
Moreover, the report by the Secretariat mentions only the "large number " of items as a 
requirement to utilize sampling investigation. Is th ere any requirement to utilize sampling 
investigation, such as statistically valid samples? Japan would like to confirm the specific criteria of 
the necessary requirement.   
Reply: According to the provisions of the Provisional Rules on Anti -dumping Samplin g 
Investigation, When there are too many exporters, producers, product models or WT/TPR/M/3 42/Add.1  
 
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  transactions, if the determination of separate margins of dumping for each individual 
exporter or producer, or the investigation on all the product models and transactions is 
unduly burdensome and prevent the timely completion of the anti -dumping 
investigation, the investigating organ make use of a sampling method in the 
investigation. Before determining whether to conduct the investigation through 
sampling or not, the investig ating organ usually needs to decide whether "the 
investigation task is unduly burdensome " and whether it "may prevent the timely 
completion of the anti -dumping investigation " based on the particular circumstances of 
different cases such as product informat ion, the workload of the investigating organ and 
administrative resources. At the time of sampling, export volume is generally the most 
important factor taken into account by the investigating organ, and exporters with the 
biggest export volumes are genera lly selected. In some specific cases, the investigating 
organ may also consider other appropriate statistics and sampling methods such as 
random sampling and systematic sampling.  
Question 8: Page 60, Paragraph 3.48   
With regard to the sentence "a fair and transparent sunset review investigation process in 
accordance with its AD Regulations and the common practice of WTO Members " at paragraph 3.48, 
Japan would like to confirm the specific process of the sunset review conducted by the 
investigating authority.   
Reply: According to relevant provisions of the Anti -Dumping Regulations of the People 's 
Republic of China, China has conducted fair and reasonable sunset review investigations 
with complete procedures by taking into account the common practice of WTO mem bers. 
In practice, the investigation procedures generally include respondent registration, 
handing out questionnaires, on -the-spot verification, information disclosure, 
stakeholder comments and announcement of final award. China has strictly abided by 
the principles of appropriate procedures and transparency in sunset review investigation 
process to ensure the rights and interests of stakeholders.   
3.1.7.3 Safeguards   
Question 9: Page 62, Paragraph 3.59   
With respect to bilateral safeguard measures provided  under the RTAs, has China started any 
investigation of bilateral safeguards or implemented any bilateral safeguard measure pursuant to 
its RTAs? If Singapore has ever imposed a bilateral safeguard measure, please provide us with the 
details of the measure , such as the product scope, the date of measure being taken and the period 
of the measure.   
Reply: China has not initiated any bilateral safeguard measure investigations, and has 
not implemented any bilateral safeguard measures.  
3.1.8.1 Standards and tech nical regulations   
Question 10: Page 62, Paragraph 3.60   
We would like to clarify current status of the revised Standardization Law of China which was 
posted for public comments in March. If the Standardization Law had been already amended or will 
be amend ed soon, it should be reflected in article 3.1.8.  
Japan has strong interest in China 's four categories of standards: national, industry/spectral, local, 
and enterprise standards, and would like to clarify that only national standards would be 
mandatory an d others are voluntary. Especially, Japan would like to confirm that enterprise 
standards are voluntary and application of them is not trade restrictive or hinder business 
activities. Japan requests China to provide detailed conditions for application of t he enterprise 
standards.  
Reply: Article 6 of the Standardization Law explicitly stipulates that enterprise standards 
shall serve as the criteria for the organization of production by enterprises and shall be 
used in these enterprises.  WT/TPR/M/3 42/Add.1  
 
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  Question 11: Page 64 -65, Paragraph s 3.67, 3.69   
Article 2.9.2 of the TBT Agreement stipulates that ". . . Members shall . . . notify other Members 
through the Secretariat . . . . Such notifications shall take place at an early appropriate stage, 
when amendments can still be i ntroduced and comments taken into account " The Secretariat 
Report also mentions in para 3.67 that "before their approval, mandatory standards with an 
impact on trade and not resulting from the adoption (without changes) of an international standard 
must be  notified to the WTO. " However, recent TBT notification, for example,  G/TBT/N/CHN/1170, 
set its proposed adoption date before the final date for comments.  Japan would like to know, in 
general legal procedures, whether China takes into account the comments submitted during such 
comment period under the TBT Agreement.  
Reply: Competent Chinese  institutions will take into account the comments of Members 
according to management goals of the policy and actual domestic needs and on the 
basis of WTO rules.  
Question  12: Page 65, Paragraph 3.69  
Regarding the provisions for the Administration of Cosmetics Application Acceptance which was 
notified to the WTO/TBT committee (G/TBT/N/CHN/821, G/TBT/N/CHN/937), we have concerns 
including the following 3 points:  
Since the i mplementation of the Guidance in May 2011, only 4 new ingredients have been 
registered.  This figure does not change since the previous review.  
The Guidance which requires safety data on isolated components of plant extracts and fermented 
solutions is exce ssive and trade restrictive measures.  
Under the implementation of this regulation, the disclosure of some detailed information relating to 
companies ' secrets such as know -how of manufacturing process, reaction process and condition of 
reaction, including on the on the CFDA 's website after the examination.  
We therefore request China to confirm whether or not China plans to clarify the above 
nonconformity and for reconsideration of the measures taken so as to be consistent with the TBT 
Agreement and other i nternational agreements.  
Reply: 1. Provisions for the Administration of Cosmetics Application Acceptance (the 
"Provisions ") is a normative document formulated by former State Food and Drug 
Administration in 2009 and came into force as of April 1, 2010. Be fore the issuance of 
the Provisions, former State Food and Drug Administration notified WTO members 
according to relevant provisions of WTO/TBT. After the Provisions took effect, China 
offered training and guidance over some of the problems met during its implementation. 
Currently, various appraisal and approval work are being conducted in an orderly 
fashion. 2. As for the progress made in the approval of new ingredients of cosmetics, 
there are different understandings of appraisal requirements between appr aisal experts 
and the enterprises. In addition, the producers of ingredients are unwilling to provide 
sufficient information for the sake of protection over business secrets, and this has 
made it impossible to provide timely replies to the reasonable doubt s of appraisal 
experts. The progress in new ingredient appraisal has been slow as a result of the 
comprehensive impact of a number of reasons. This problem has attracted much 
attention from China. China Food and Drug Administration has entrusted relevant 
research institutions to carry out research projects on the classified management of 
cosmetics ingredients. In addition, it has all along kept communications and exchanges 
with experts and industrial associations at home and abroad, and had in -depth exchang e 
of views with Europe, the US, Japan, Korea and other parties in search of an effective 
approach to the management of new cosmetics ingredients in China.  WT/TPR/M/3 42/Add.1  
 
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  Question 13: Page 65, Paragraph 3.69  
In GATS commitments, China committed to provide National Treatme nt (GATS Article XVII) in 
principle for "All insurance and insurance -related services ","Telecommunication services ", 
"Computer and Related Services ", except some limitations  (GATS/SC/135).  
Regarding a sequence of recent cyber security measures, including the Draft Cybersecurity Law 
issued by the National People's Congress in 2015, the Guideline for promoting the Application of 
Secure and controllable Information Technology in Banking Sector issued in 2014 and the draft 
proposal of Insurance Regulatory Comm ission (CIRC) Information and Communication Technology 
Regulation published in 2015, we would like request China to clarify the relationship between those 
cyber security measures, especially data localization requirements and China 's GATS 
commitments. We a lso would like to know how China ensure that those measures are 
administered in a reasonable, objective and impartial manner based on GATS Article VI.  
Reply: The Chinese Government has all along abided by its WTO commitment s in real 
earnest and has kept o pening wider to the outside world. China has always maintained 
an open and transparent attitude towards the information system construction of 
commercial banks. In the future, we welcome the joint research, joint construction and 
joint opening up between i nternational suppliers. According to the provisions of GATS, in 
order to realize national policy objectives, a member has the right to bring the service 
provision within its territory under regulation  and adopt new regulations. It is a 
legitimate right  allowed by the WTO. Besides, the Financial Annex of GATS also gives the 
members the power to take prudential measures to maintain the stability of the financial 
system and the interests of consumers. China believes that the network information 
security in the  financial sector is of particular importance to the healthy development of 
the country 's financial industry, and the principle of prudential regulation should be 
adhered to. The implementation of the Guidelines on Promoting the Use of Secure and 
Controlla ble Technology in Banking Industry (2014 -2015) (YINJIANBANFA [2014] 
No. 317, Document No. 317) was suspended in April 2015, and it is now expired.  
Question 14: Page 65, Paragraph 3.69   
Regarding the provisions for the Administrative measures on Cosmetic La belling which was notified 
to the WTO/TBT committee (G/TBT/N/CHN/1064), we have concerns including the following 
2 points:  
From the description of the draft of the measures, it is not clear if the continuation of sticker 
labels (over -labelling) will be pe rmitted.  If not permitted, it could be more trade -restrictive 
measure than necessary in light of the TBT Agreement.  
With regards to promotional advertising of cosmetics efficacy claims, the measures require 
examination results tested by an assessment test ing organization to be disclosed. However, 
since testing results could include companies ' know-how, they should not be disclosed. In 
addition, such the testing organization should not be limited to institutions inside China.   
We therefore request China to confirm whether or not China plans to clarify the above 
nonconformity and for reconsideration of the measures taken so as to be consistent with the TBT 
Agreement and other international agreements.   
Reply: China received STCs from relevant members of the W TO after notifying  to the 
WTO/TBT the Administrative Measures for Cosmetic Labelling (G/TBT/N/CHN/1064). 
Currently, the Administrative Measures for Cosmetic Labelling is still under legislative 
process and has not been promulgated yet. Next, China will stu dy concerns of relevant 
parties and the feedbacks from domestic and foreign cosmetics enterprises, industrial 
associations and other relevant parties in real earnest and remodify the Administrative 
Measures for Cosmetic Labelling. The amended exposure draf t will be notified to 
WTO/TBT again as prescribed.  WT/TPR/M/3 42/Add.1  
 
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  Question 15: Page 65, Paragraph 3.69   
Regarding a sequence of recent cyber security measures, including the Draft Cybersecurity Law 
issued by the National People's Congress in 2015, the Guideline for prom oting the Application of 
Secure and controllable Information Technology in Banking Sector issued in 2014 and the draft 
proposal of Insurance Regulatory Commission (CIRC) Information and Communication Technology 
Regulation published in 2015, we have concern s including the following 3 points:  
-  Most of them, except the CIRC regulation, they have not been notified to the WTO under 
Article 2.9.2 of the TBT Agreement despite that there are several trade -related aspects in 
these measures.  
-  Related national s tandards and other national regulations, which these measures set as 
the requirements to be complied with, are unclear.  Therefore, that market access of 
foreign companies to China might be hampered by these measures, depending on their 
implementation (e.g. , requirement of source code submission without clarifying the range 
of data scope).  
Reply: The implementation of the Guidelines on Promoting the Use of Secure and 
Controllable Technology in Banking Industry (2014 -2015) was already suspended in 
April 2015 , and it is now expired.  Therefore, there is no such thing as "market access of 
foreign companies to China might be hampered by these measures, depending on their 
implementation ". 
- Concerns on data localization.   
We therefore request China to confirm whet her or not China plans to clarify the above 
nonconformity and for reconsideration of the measures taken so as to be consistent with the WTO 
Agreement and other international agreements.  
Reply: The implementation of the Guidelines on Promoting the Use of S ecure and 
Controllable Technology in Banking Industry (2014 -2015) was already suspended in 
April 2015, and it is now expired.  
Question 16: Page 66, Paragraph 3.75  
According to the report by the Secretariat, there is no accredited foreign based certificatio n body 
for CCC among the listed 22 certification bodies. With the view to trade facilitation, it would be 
recommended to open Chinese regulations to foreign based certification bodies with certain 
technical level. In this regard, Japan would like to ask Ch ina the reason why foreign based 
certification bodies for CCC are not accredited. Also, Japan would like to clarify whether China has 
any plan to utilize foreign based certification bodies.   
Reply: Due to the considerations of the legal liabilities underta ken, certification bodies 
or laboratories designated by CCC certification must be located within the territory of 
China. Overseas laboratories may participate in the implementation of the 
CCC certification system through multilateral or bilateral internati onal mutual 
recognition cooperation, and their testing data and results may be accepted or 
recognized based on relevant cooperation agreements.  
3.2.4 Export support and promotion  
Question 17: Page 76,  Paragraphs 3.108 and 3.109  
The Secretariat 's report sta tes: "Exporters are entitled to VAT rebates on all exported goods. 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%, 9%, 5% and 0%. " The report also explains t hat 
"[r]ebate rates may be revised and changed as considered appropriate." Japan understands that 
the rebate rates for a number of products are in fact subject to frequent reviews and changes. 
How does China determine the rebate rate for each exported prod uct? For example, does China WT/TPR/M/3 42/Add.1  
 
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  undertake an economic analysis in order to assess how those different rebate rates would 
incentivise or d isincentivise production and/or export of each product?   
Reply: Instead of separately determining the export rebate rates of individual products, 
China adjusts rebate rates mainly in the principle of reducing trade frictions and 
controlling the export of highly energy -consuming, highly polluting and resource -
intensive products.   
Question 18: Page 76, Paragraph 3.109  
According  to the Secretariat 's report, "The management of the VAT rebate is used to meet certain 
goals. The authorities have noted that it accommodates the request for environmental protection, 
energy saving and emission reduction. They noted that the rebate is use d to discourage the 
production and export of environmental polluting products. … For example, in 2014, the VAT 
rebate rates were increased for some high -value - added products. " In this regard, Japan 
understands that generally, products with higher value -added such as semiconductors, LCDs and 
motor vehicles enjoy higher VAT rebate rates than products with lower value -added such as 
certain raw materials. Please explain specifically how such difference in the VAT rebate rates 
contributes to the purported objec tive of "environmental protection, energy saving and emission 
reduction ".  
Reply: 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 r ebate rates for low technology products and lower value -added products and 
abolishing VAT rebate for products with high-energy consumption, high pollution and 
resou rce-intensity , reflecting efforts to meet  the requirements of environmental 
protection, ener gy conservation and emissions reduction.  
3.2.5 Export finance, insurance, and guarantees  
Question 19:  Page 77, Paragraph 3.112  
(i) According to the report, "loans are granted at commercial interest rates. " What kind of 
elements does China Eximbank conside r to set interest rates? Can such rates be lower than the 
minimum interest rates specified in the Arrangement on Officially Supported Export Credits of 
OECD?  
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 expense s 
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.  
(ii) Does Eximbank use "commercial " repayment terms as its maximum term of repayment? Can 
such terms be longer than the maximum repayment terms specified in the Arrangement on 
Official ly Supported Export Credits of OECD?   
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.  
(iii) The Arrangement on Officially Supported Export Credits of OECD provides that "the 
Participants shall not provide official support in excess of 85% of the export contract value " 
(Article 10, paragraph  (c)), and in the case of official support provided for l ocal costs, it shall not 
exceed 30% of the export contract value (Article 10, paragraph (d)). Does Eximbank provide 
official support in excess of these rates?  
Reply: China Eximbank does not distinguish the export contract value and local costs in 
export c redit, but based on the export contract value, the financing ratio of export credit 
is usually no more than 85%  of the export contract value.  WT/TPR/M/3 42/Add.1  
 
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  (iv) The Arrangement on Officially Supported Export Credits of OECD provides that "The 
Participants shall require purchasers of goods and services which are the subject of official support 
to make down payments of a minimum of 15% of the export contract value " (Article 10, 
paragraph  (a)) and "Official support for such down payments shall only take the form of insuranc e 
or guarantee against the usual pre -credit risks " (Article 10, paragraph (b)). Does Eximbank 
provide official support outside the reach of these rules?  
Reply: China Eximbank requires borrowers to make down payments of a certain 
percentage of export contra ct value when providing export credit service, usually no 
less than 15%. This setting is not out of the scope of relevant regulations of 
Arrangement on Officially Supported Export Credits.  
(v) What are the specific areas that China explains as "areas where  social and commercial capital 
are unwilling to enter "?  
Reply: The "areas where social and commercial capital are unwilling to enter" usually 
refer to th ose featur ing long term , high risks and low profits.  
Question 20: Page 78, Paragraph 3.115  
What kind o f elements does SINOSURE consider to set credit insurance premium rates? Can such 
rates be lower than the minimum premium rates specified in the Arrangement on Officially 
Supported Export Credits of OECD?   
Reply: China sets credit insurance premium rates o n the basis of risks, mainly 
considering risk classification of countries, insurance period and other factors. China is 
neither a Member of OECD nor a participator of "Gentleman's Agreement". Therefore, 
the rates system of SINOSURE is not exactly the same with the minimum premium rates 
system of OECD's "Gentleman's Agreement". These two systems are not comparable.  
3.3.1 Incentives  
Question 21:  Page 80, Paragraph 3.122  
The Secretariat 's report explains that no information was supplied to the Secretariat reg arding 
support measures at the sub -central level.  Please explain the circumstances that resulted in 
China 's failure to provide information.  In addition, Japan understands that China repeatedly has 
explained that it would notify the support measures at the sub-central level to the Committee on 
Subsidies and Countervailing Measures. Could China explain the progress of preparing a 
notification of those programmes?   
Reply: China has submitted Notification on Subsidies at sub -central government level for 
2001 -2014 to the WTO prior to this review. This is the first Notification on Subsidies at 
sub-central government level from China. For details, please refer to relevant 
notification document.  
Question 22:  Page 80, Paragraph 3.124  
The core objective of the Trade P olicy Review Mechanism is facilitating the smooth functioning of 
the multilateral trading system by enhancing the transparency of Members ' trade policies.  In light 
of this objective, could China specify and disclose the details of "other support programmes  and 
other means to support different industries " (Paragraph 3.124)?  For example, are there any 
support programmes or other means by the central or local level provided to the iron and steel 
industry?  Has any of those "other support programmes and other me ans to support different 
industries " been notified to the Committee on Subsidies and Countervailing Measures?  If China 
cannot provide or disclose relevant information, please explain the circumstances that warrant 
non-disclosure of such information.   
Reply : China does not agree to the point of "there are other support programs and other 
means  to support different industries " and "not able to provide the Secretariat with 
industrial subsidy  information for this review period " in the Report by the Secretariat for WT/TPR/M/3 42/Add.1  
 
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  this review . China noted that the wording  in paragraph 3.124 comes from 
paragraph  3.125 of the 2014 China TPR Report by the Secretariat. At that time, China 
had not submitted the most recent notification on subsidies. However, in 2015, China 
already  submitted its notification on subsid ies at central government level for 2009 -
2014, and before the review meeting, its  first notification on subsidies at sub -central 
government level , covering 14 years from 20 01 to 2014. These notifications contain  the 
subsid y policies that are required to be notif ied to the  WTO, according to  China 's 
understanding of the relevant definitions and rules requirements  of the SCM Agreement. 
It's a pity that  the relevant paragraphs of Secretariat's Report failed to be updated in 
the light of  the above -mentioned important latest  developments . 
3.3.5.2 State -owned enterprises   
Question 23: Page 98, Paragraph 3.182  
With regard to the reform of SOEs, it is said that "the Guiding Opinions of CPC Central Committee 
and State Council on Deepe ning the Reform of SOEs " were issued to reform SOEs, page 22 of 
which includes "disclosure of state -owned capital overall operation ". Japan would like to ask China 
whether Chinese government has already implemented such disclosure, and if not, when Chinese  
government will start it.   
Reply: China will abide by its WTO  commitments and release  relevant information on 
state -owned capital management budget according to the Budget Law of China and 
Decree of Government Information Disclosure . The State -owned Asset s Supervision and 
Administration Commission releases the preservation or increase in value of state -
owned capital and business performance of enterprises under the state -owned assets 
supervision system and state -owned enterprises via China's State -owned As sets 
Supervision and Administration Yearbook every year.  
Question 24: Page 98, Paragraph 3.182  
Japan understands that Chinese government is promoting a reform of SOEs by new guidelines 
issued in 2015 and 13th Five -Year Plan. Japan would like to know the pr ocess and schedule of the 
reform.   
Reply: In September 2015, the State Council distributed the Opinions on State -owned 
Enterprises' Development of Mixed Ownership Economy (Guo Fa [2015] No.  54), further 
identifying the general requirements, main principles , major tasks and supporting 
facilities for SOEs' development of mixed ownership economy. Industries of electricity, 
oil, natural gas, railway, civil aviation, telecommunications, military industry, etc., in 
which SOEs hold a dominate position, are key fie lds to promote the development of 
mixed ownership economy, and various kinds of capitals (including foreign capital) are 
encouraged to participate in the reform of mixed ownership of SOEs. In terms of pilot 
reform of mixed ownership, in June 2014, China Na tional Building Materials Group 
Corporation and China National Pharmaceutical Group were chosen as the pilot 
enterprises of mixed ownership reform. In terms of implementing the functions and 
powers of board of directors, China pushed forward the building o f standard board of 
directors with most directors being external ones. Currently, 87 of 106 SOEs have 
established standard board of directors and the boards of some enterprises are 
authorized with responsibilities of planning medium - and long -term developm ent 
strategies and selecting and recruiting senior administrative officers. In the terms of the 
market -oriented systems of selecting and recruiting administrators and professional 
managers, the boards of directors of 5 SOEs adopted market -oriented approach es and 
recruited 14 administrators and managers. For the next step, China will continue deeply 
promoting the reform of SOEs . 
Question 25: Page 98, Paragraph 3.182  
With regard to the reform of SOEs, it is said that the SOEs needs to be more profit -oriented and 
mixed ownership while government keep control on them. Japan would like to ask China how 
Chinese government would keep control on SOEs after those reforms.   WT/TPR/M/3 42/Add.1  
 
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  Reply: The SOEs of China are independent market player s and legal entit ies. The reform 
aims at helping SOEs be more dynamic in the  market  competition . 
3.3.6 Government procurement  
Question 26: Page 98, Paragraph 3.183   
According to the last sentence of para 3.183 of the Report, the activities of the State Owned 
Enterprises (SOEs) are not covered un der the definition of government procurement of the 
Government Procurement Law. Are there any regulations or rules that are applied and govern the 
procurement activities of the SOEs? Japan is of the view that the relevant regulations, including 
MFN princip le, should also be applied to the procurement activities of the SOEs. Japan would like 
to confirm if China has such intention to extend relevant regulations to the procurement activities 
of the SOEs.  
Reply: The Government Procurement Law is inapplicable f or procurement activities of 
the SOEs. Whether the Government Procurement Law will be applied to the procurement 
activities of SOEs, will be determined by legislative bodies of China.  
Question 27: Page 99, Paragraph 3.186   
With regard to the Centralized Pr ocurement Catalogue, Japan would like to know the 
comprehensive list in detail, such as whether construction services are included in the list or not. 
Furthermore, in case if the decentralized procurement is applied, does the individual procurement 
agency have the freedom to establish the threshold value? If there is a criterion for the 
establishment of the threshold value, Japan would like to know the detail of it.  
Reply: For the government procurement projects under the central budget, the 
centralized pr ocurement catalogue will be confirmed and published by the State Council; 
for the government procurement projects under the local budget, the centralized 
procurement catalogue will be confirmed and published by provincial people 's 
government, people's gove rnment of autonomous region, municipal people's 
government or authorized institutions. For details, please refer to relevant websites 
such as China Government Procurement ( www.ccgp.gov.cn ). For example, the website 
released  2015 -2016 Centralized Procurement Catalogues of governments under the 
central budget, including goods, construction and services. There is no criterion for the 
establishment of the threshold value.  
Question 28: Page 99, Paragraph 3.187  
At the previo us Review process, Japan raised the concern that both "Implementation Regulations 
of the Government Procurement Law " and "administrative measures on domestic products 
procured by the Government " would treat foreign -produced goods discriminatory to that of 
domestic - produced goods, and as such Japan requested to amend the provision that prioritises 
the domestic -produced goods and domestic -funded enterprises over the foreign -produced goods 
and foreign -funded enterprises. Despite the fact of these concerns, th e Government Procurement 
Law of China still includes the provision that treats domestic -produced goods more favorably than 
foreign -produced goods, known as 'buy-domestic ' provision. Japan, once again, would request 
China to amend and delete such provision,  and would like to confirm if China has an intention in 
the future to act candidly  to our request or not.   
Reply: The national treatment of government procurement is mutually beneficial and 
equal. As for China 's joining the GPA, it does not necessarily mea n the abolish ment of  
the "buy -domestic" provision of Government Procurement Law, it depends on the  
negotiation  results as to whether non -application of this provision to the contracting 
parties could be  confirm ed. WT/TPR/M/3 42/Add.1  
 
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  3.3.7 Intellectual property rights  
Questio n 30: Page 103, Paragraph 3.207  
We would like to know whether China is planning of or at least considering ratifying or acceding to 
the Geneva Act of the Hague Agreement Concerning the International Registration of Industrial 
Designs in the near future, an d, if so, the state of play of such plan or consideration.   
Reply: China is actively studying and considering joining the Hague Agreement. During 
the fourth on -going revision of Patent Law, China is pointing out the suggestions of 
amendment on relevant art icles in order to adapt to the needs of possible engagement 
of Hague Agreement in the future.  
Question 31: Page 105, Paragraph 3.212   
With regard to the fourth sentence of this paragraph, would there be concrete examples of "some 
limitations regarding the licensing of IPRs obtained from major national projects "?  
Reply: There are no specific cases  at present.  
Questio n 32: Page 105, Paragraph 3.212  
With regard to the last sentence of this paragraph, Japan would like to know the current situation 
of "Regulati ons on the Administration of Technology Import and Export, as revised in 
December  2010". Although we understand that, in the previous review, China stated  "so-called 
2010 revision of the regulations does not exist " (page 444, WT/TPR/M/300/Add.1), such 
description (2010 revision) still remains in the report by secretariat even after your answer above.  
Reply:  China will check with the WTO secretariat. If anything requires revision, China 
will keep the WTO secretariat updated and ask for revision accordingly.  
Question 33: Page 108, Paragraph 3.228   
With regard to the third sentence of this paragraph, "[t]he authorities noted that, with a view to 
implementing the Opinions, in early 2016 the SAIC was soliciting opinions from various 
departments to discuss the es tablishment of a joint recognition mechanism for GIs ", does China 
intend to introduce a sui generis GI protection system in the future? If so, would there be an 
expected timeline for introducing the system?  
Reply: At present, the SAIC is actively coordina ting and discuss ing with Ministry of 
Agriculture, MOFCOM, AQSIQ and relevant sectors , to establish a coordination 
mechanism of Inter -Ministerial Joint for GIs as soon as possible, and based on that, to 
discuss and come to an agreement to the work scheme of  joint recognition mechanism, 
and to carry out research and demonstration work of the joint recognition mechanism 
for GIs.  
Question 34: Page 110, Paragraph 3.240  
China has been a member of the International Convention for the Protection of New Varieties of  
Plants (UPOV) 1978 Act since 1999. We would like to know whether China is planning of or at least 
considering ratifying or acceding to the UPOV 1991 Act in the near future, and, if so, the state of 
play of such plan or consideration.   
Reply: China is stud ying the 1991 Act of the UPOV.  
Question 35: Page 113, Paragraph 3.252   
1. The Intellectual Property Right Courts have started working through over 1 (one) year. We 
would like to know the statistical data on the number of filed cases and closed cases before  such 
IPR courts per subject (civil/ administrative/ patent/ trademark/ other rights). We also would like WT/TPR/M/3 42/Add.1  
 
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  to know if such IPR Courts ' decisions or rulings, at least summary of them, in English can be 
publicly available on the Internet.  
Reply: In 2015, Bei jing Intellectual Property Right Court has accepted and heard 
9,191  cases in total, including 7,545 cases of first instance, 1,629 cases of second 
instance and 17 appeal cases. The cases of first instance contains 189 cases in copyright 
disputes, 5,531 cas es in trademark rights disputes (including 5,501 administrative cases 
and 30 civil cases) and 1,696 cases in patent disputes (including 1,207 administrative 
cases and 489 civil cases).  Among the cases of second instance, 1,278 cases are about 
copyright dis putes, 123 cases are about trademark rights disputes and 16 cases are 
about patent disputes. In 2015, the Court has concluded 5,432 cases including 
3,934  cases of first instance and 1,485 cases of second instance.  The concluded cases of 
first instance incl ude 59 cases in copyright disputes, 3,245 cases in trademark rights 
disputes (including 3,228 administrative cases and 17 civil cases), 597 cases in patent 
disputes (including 335 administrative cases and 262 civil cases), and 33 other disputes 
cases.  Amon g the concluded cases of second instance, 1,196  cases are about copyright 
disputes, 98 cases are about trademark rights disputes, 14 cases are about patent 
disputes and 177 disputes cases of other types.  
From 21 December 2014 to 31 December 2015, Guangzhou  Intellectual Property Right 
Court has accepted and heard 4,940 intellectual property cases in various types and has 
concluded 3,393 cases.  For patent, 2,673 cases were accepted and heard, and 
1,339  were concluded.  For copyright, 1,704 cases were accepted and heard, and 
1,582  were concluded.  For trademark rights, the numbers are respectively 429 and 374. 
For administrative case, they are 19 and 14.  
In 2015, Shanghai Intellectual Property Right Court has accepted and heard 
1,641  intellectual property cases i n various types,  including 823 civil cases of first 
instance and 802 civil cases of second instance  Among the above -mentioned cases, 
570 cases relate to copyright; 453 are patent cases; 366 cases are about computer 
software; and 119 are cases in trademark rights.  
According to the provisions of the Supreme People's Court on judgments disclosure, the 
judgments of people's courts at all levels including each intellectual property court, in 
addition to involving state secrets, commercial secrets and personal pr ivacy, shall be 
published on the China Judgments Online ( http://wenshu.court.gov.cn/ ) in official 
language.  
2. We understand that the appellate courts to the IPR Courts are the Higher People 's Courts. We 
would li ke to know whether China is planning of or at least considering establishing the IP High 
Court(s) which has(have) exclusive jurisdiction over appeals from the IPR Courts, and, if so, the 
state of play of such plan or consideration.  
Reply: The Supreme Peop le's Court is studying and promoting the establishment of High 
Court of Intellectual Property at national level as the exclusive appellate jurisdiction 
court of technical cases like patent.  
Question 36: Page 111, Paragraph 3.241   
With regard to protecting the undisclosed information and trade secrets, Japan would like to know 
the current situation on the reform of the Anti -Unfair Competition Law. Could China provide any 
information about the reform, including the overview and timelines?   
Reply: During the r ecent modification of Anti -Unfair Competition Law of China, China 
was planning to hone articles of commercial secret protection. At present, China is 
actively promoting the legislative work of the Anti -Unfair Competition Law of China 
according to the regul ations and requirements of legislative procedures.  WT/TPR/M/3 42/Add.1  
 
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  Question 37: Page 111, Table 3.27 Intellectual property enforcement, 2012 -15 
With regard to the number of disputes (patent infringement disputes), we can see that the number 
in 2015 was approximately doubl ed compared to the number in 2014 (7,671 in 2014, to 14,202 in 
2015). Could China provide its understanding of the reason for this sharp increase (if possible, 
compared with the situation of IP 's other than patents)?  
Reply: The main reasons are: the const ant enhancement of rights protection awareness 
of enterprises in patent and their initiative of rights protection with the improvement of 
enterprise's innovation capability. The rapid increase of the quantity of patent 
application and authorization leads t o more and more intensive valid patents in the 
same sector, so that the possibility of patent disputes in relevant sectors rises.  
4.2 Services  
4.2.1 Telecommunications services  
Question 38: Page126, Paragraph 4.3.8  
Is there any regulatio n about a rate fo r renting access line on unbundled basis, which is especially 
imposed on basic telecommunication service suppliers?  
Reply: There are no relevant regulations  at present . 
Moreover, is there any case where the mobile phone service suppliers who don 't have th eir own 
network and rent network from mobile network operators (MNO) and provide mobile phone 
services by using the rent network (Mobile Virtual Network Operator)?  
Reply: Yes, there are.  
4.2.2 Financial services  
Question 39: Page 129, Paragraph 4.2.2.2 Re gulatory framework for banking  
On 26 December 2014, the China Banking Regulatory Commission (CBRC) released its new 
"Guideline for Promoting the Application of Secure & Controllable Information Technology in 
Banking Sector 2014 -2015" to selected stakehold ers. There is, however, no corresponding 
description on Secretariat Reports or China 's Reports.  The Guideline requires inter alia the use of 
products based on indigenous intellectual property rights, certification to Chinese national 
standards, compliance with Chinese encryption regulatory requirements, source code registration, 
and the establishment of R&D and service centr es in China. Our understanding is that in 
April 2015, China postponed the Guideline 's entry into force, and is currently engaged in rev ising 
the content. Is that correct?  
Reply: It was suspended to be implemented and has expired.  
Several requirements of the Guideline could be potential barriers to market entry by foreign firms, 
which would not be in line with the non -discrimination princ iple in the TBT Agreement.  In addition, 
even in light of its aim of the Guideline, such requirements would be more trade -restrictive than 
necessary to fulfill a legitimate objective under the TBT Agreement.  In revising the Guideline, 
therefore, Japan would  like to request China to confirm whether or not China plans to revise such 
requirements into more appropriate form so as to be consistent with the TBT Agreement and other 
international agreements.  Could China provide its views on these issues and also con firm that the 
revised Guideline will be widely released for public comment?   
Reply: The Guideline for Promoting the Application of Secure & Controllable Information 
Technology in Banking Sector 2014 -2015 was suspended in April 2015 and already went 
beyond the period of its validity. Therefore, the re is no such thing as -"according to its 
implementation, the Guideline could be potential barriers to market entry by foreign 
firms".  WT/TPR/M/3 42/Add.1  
 
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  4.2.1.2 Regulatory framework  
Question 40: Page 127, Paragraph 4.42, Page 158, Ta ble A2.3  
Licensing of value -added telecom business, especially ICP (Internet Content Provider) license is 
related to and has a great influence on various sectors, such as on -line distribution services 
retailing services, audio -visual services, advertising  services, travel related services. Regarding 
liberalization of these services, Japan would like to request China to clarify the relationship 
between China 's GATS commitments of those services  (*) and the limitation on foreign 
investments.   
Reply: China's commitments are clear and definite. Chinese government has been 
earnestly fulfilling its commitments to WTO and has not set new restrictions on foreign 
investment. If Japan has any doubts on specific service classification, it is suggested to 
discuss this issue in the Committee on Specific Commitments. For further arrangement 
of opening specific services sectors, China is willing to discuss with members in the 
Doha Round  of negotiations.  
According to this Report by Secretariat, only 34 Sino -foreign equity j oint ventures of 
24,001  enterprises hold value -added telecom business licences (Box 4.1, Page 124). How many 
foreign joint ventures have ICP licenses?  
Reply: According to statistics, at present, a total of 25 foreign -invested enterprises have 
obtained  ICP license (only for Internet information services).  
(*) In August 2008, the WTO Panel found that Chinese foreign investment regulations on the 
import and distribution of publications (books, newspapers, etc.) and audiovisual products (CDs 
and DVD, etc.) vio lated Article XVII (national treatment) of the GATS Agreement (DS 363). One of 
the points of this judgment is that China had included within its agreement the category of "Sound 
Recording Distribution Services " under the heading "Audio Visual Services ", and this could be 
interpreted to include distribution of audiovisual recordings in nontangible forms, for example in 
electronic formats using technology such as the internet.(*)  
Reply: China respects the ruling by the WTO dispute settlement mechanism on Cas e 
DS 363 and has fully implemented it.  
4.2.4 Audiovisual services  
Question 41: Page 143,  Paragraph 4.109  
1. Japan would like to know each approval process for foreign films to be distributed through 
movie theat res and that to be distributed online.  
Reply: The relevant process is as follows: a Chinese distributor with the Film Distribution 
Licence would negotiate with a Japanese right holder on the purchase of the distribution 
right in Chinese theatres and hand the film to China Film Group Corporation (CFGC)  for 
preliminary review. CFGC need to forward those that have passed preliminary review to 
the film review commission under the State Administration of Press, Publication, Radio, 
Film and Television for second review. The commission would make a response t o CFGC 
concerning the admissibility of the film within 20  working days. For those films that 
have passed the review, CFGC would conclude a foreign trade contract with the foreign 
party and completed importation procedures. Following the importation procedu res and 
translation (include subtitling) of the film, the commission would conduct a second 
review and grant a "dragon mark " display and a Public Screening Licence. The film could 
be launched after incorporation of the dragon mark.  
2. Japan would like to k now of the Chinese authority to apply for the approval of film distribution 
through movie theatr e or online, the timing and term to accept the application, and the 
examination term.  
Reply: Please refer to the reply to Question 1.  WT/TPR/M/3 42/Add.1  
 
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  3. Japan would like to con firm if the understanding that the number of foreign films that can be 
shown in China on a revenue -sharing basis is also assigned to Japanese content is correct or not.  
Reply: China has made a commitment during its WTO accession to "allow importation of 
foreign films on a revenue -sharing basis, and annual importation of such films will be 
20", including films from various countries. However, whether there is Japanese film 
imported on such basis is an issue of business arrangement. There is no regulation ov er 
the way films are imported into the Chinese market. Mostly, for those with poor box -
office expectations, the Chinese side would buy out distribution right to guarantee a 
certain level of revenue.  
WT/TPR/G/342  
Question 42: Page 80,  Paragraph 3.3.1  
China committed to allowing free distribution for books, newspapers and magazines within 
three  years after accession (within one year for retailing services).  
Japan would like to know whether China has any restriction on foreign investment in those sectors 
or not, and also would like to know the current situation of on foreign investment in those sectors.  
Reply: First, China meant allowing "market access " of foreign capital, rather than 
allowing "free distribution ", in its commitment on "retail services " made i n the Annex 9 
of the Protocol on the Accession of the People 's Republic of China, which is entitled the 
Schedule of Specific Commitments on Services List of Article II Exemptions. Further, 
China is committed to lifting market access restrictions on certain  areas after three 
years of accession, but this does apply to "those chain stores which sell products of 
different types and brands from multiple suppliers with more than 30 outlets. " 
Second, the Provisions on the Publication Sector have been amended in 20 11. The 
Article 16 of the instrument allow formation of Sino -foreign equity joint ventures, 
Sino-foreign cooperative joint ventures and foreign -invested enterprises engaged in 
distribution of books, newspapers, periodicals and electronic publications as we ll as 
Sino-foreign cooperative joint ventures engaged in the distribution of audiovisual 
products. Foreign ownership is prohibited if the entity is a chain store engaged in 
franchising of books, newspaper and periodicals and run more than 30 outlets; any 
equity participation practice to circumvent the 30 outlets -limitation is prohibited. 
Foreign -invested enterprises have been allowed to engage in the publication sector 
pursuant to the Article 13  of the newly -revised Provisions on the Publication Sector, 
which the Chinese Government has released on 31 May 2016. The publication activities 
of foreign -invested enterprises are subject to relevant national laws and regulations as 
well as Articles 6 to 9 of those Provisions. Meanwhile, the limitation on the number of 
chain stores has also been lifted.  WT/TPR/M/3 42/Add.1  
 
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  28  JAPAN (FOLLOW -UP) 
WT/TPR/S/342  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
Question 1: Page 46  
The announcements focused, inter alia , on: paperless procedures, the harmonization o f customs 
procedures throughout China, the imposition of anti -dumping duties, and tariff classification  2 
(2 For a full list of announcements and decrees, see GACC online information:  
http:/ /www.customs.gov.cn/tabid/49659/Default.aspx  (in Chinese only) ). 
1. Regarding the "Announcements" relating to tariff classification, what is the difference between 
and "商品归类行政裁定 " and "商品归类决定"? 
Reply: The Decision of Classification of Goods refers to the decisions of the classification 
of goods with general binding force on imported and exported goods made by the 
General Administration of Customs according to the Customs T ariff of Import and Export 
of the People's Republic of China , Customs Tariff of Import and Export Goods and Item 
Notes, and Sub -catalog ue Notes of Customs Tariff of Import and Export of the People's 
Republic of China , among other regulations and stipulatio ns. 
Administrative Determination of Classification is one type of the administrative 
determinations made by the customs. It refers to the decision with general binding force 
made by the customs before the actual import and export of goods on the customs 
affairs relating to actual import and export activities , upon  the application of foreign -
trade operators and according to relevant customs laws, administrative regulations and 
rules.  
2. Do these "Announcements" legally bind on Customs? What is the legal stat us of these 
documents?  
Reply: The Administrative Determination has equal effect with customs regulations.  The 
administrative determination made by the customs uniformly applies  within the People's 
Republic of China from the date of its announcement . 
Genera l Administration of Customs may make decisions with general binding force on 
the classification of imported and exported goods in light of relevant laws and 
administrative regulations.  The same import ed and export ed goods shall be subject to 
the same class ification.  
3. How are the items to be posted on the "Announcements" selected? How often are these 
"Announcements" published and how many items are posted in total for a year?  
Reply: The Decision of Classification of Goods is usually released on a quarterly  basis 
without limitations on the numbers  of announcements. In 2015, 21 decisions were 
issued and 3 were abolished through Announcements.  
The Administrative Determination of Classification is formulated and released according 
to the application of enterpri ses. 
4. How is the information on these "Announcements" made available to Customs officers or trade 
related parties? Are they published on the Web, in the form of a book, or in any other means?  
Reply: These Announcements are released through the website of  General 
Administration of Customs.  
5. Does classification information on these "Announcements" have an expiration date?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The Announcements have  no expiration date. If the laws, administrative 
regulations and other relevant rules that the decisions o f classification of goods are 
based on have change d, the decisions will be invalid  at the same time.  
6. Are these "Announcements" applied uniformly among all the Customs offices in China?  
Reply: Yes.  
7. If so, please describe the procedure to obtain advanc e rulings in writing which are applied 
uniformly among all the Customs offices in China like these "Announcements".  
Reply: All departments of the customs and the society  are notified  through the customs 
office system and the customs website respectively.  
8. If a Customs determination on classification is different from the information on these 
"Announcements", are related parties able to make an appeal to the Customs office? If so, please 
describe the procedure for an appeal.  
Reply: The interested parties c an have consultation  with relevant customs  on the 
classification controversy.  
9. If these "Announcements" and advance rulings published by Customs offices are different, are 
related parties able to make an appeal to the Customs office? If so, please descri be the procedure 
for an appeal.  
Reply:  If the advance rulings in the question refer to Administrative Determinations of 
Classification, there will be no such inconsistencies since all the Administrative 
Determinations of Classification are released by the  Announcement of  General 
Administration of Customs.  
If the advance rulings refer to Decisions of Pre -classification of Goods, interested parties 
can have consultation  with relevant customs  on the classification controversy.  
Question 2: Page 48  
China has con tinued to make efforts to harmonize customs procedures across its 42 customs 
areas. Nevertheless, "special customs supervision areas", which are governed by different 
regulations, continue to exist despite the guiding opinions issued by the State Council i n 2012, 
which called for the unification of the rules applied in those areas.  
1. Does Customs in "special customs supervision areas" independently determine classification 
during the declaration processing and publish its advance rulings, which could be di fferent from 
that of harmonized 42 customs areas?  
Reply: No, the classification rules of goods are unified.  
2. If so, is it correct in understanding that "announcements" in Paragraph 3.1 are not applicable in 
"special customs supervision areas"?  
Reply: No.  
Question 3: Page 62  
Japan would like to clarify that enterprise standards stipulated in the new standardization Law are 
voluntary and application of them is not trade restrictive or hinder business activities.  
Reply: The enterprise standards are voluntary  and not mandatory.  WT/TPR/M/3 42/Add.1  
 
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  Replies provided by China  
Question 4: Page 236 [related to Canada' s Question s 194 and 195 of advance written 
questions]  
According to the China's  GATS commitments of Audiovisual Services, there is no restriction without 
any exception on Mode1 of Market Access of Videos, including entertainment software and 
distribution services, Sound recording distribution services and Cinema Theatre Services. The 
service that foreign service suppliers provide these services through Internet with Chinese  
consumers from outside China will belong to Mode1 in GATS. However, the Article 8 of Provisions 
on the Administration of Online Publishing Services requires foreign service suppliers to establish 
servers and storage devices within the territory of China, and Article 10 requires the foreign 
service suppliers to get an approval in advance from the State Administration of Press, Publication, 
Radio, Film and Television. Japan would like to confirm the consistency of these restrictions and 
the China's  GAT commi tments mentioned above.  
Reply: The Chinese governments GATS commitments on Audiovisual Services 
(distribution service s) have nothing to do with the restrictions on foreign investment in 
the field of online  publishing.  According to the WTO rules, distributi on service and 
publishing service belong to two different service sectors. Thus, there is no relationship 
between committed market access of sound recording  distribution service and non -
committed market access of publishing service.  The Chinese government has the right to 
adopt corresponding regulatory  measures according to the situation of domestic market. 
The relevant requirements of Provisions on the Administration of Online Publishing 
Services  are not in violation of  China 's TO commitment s. 
Question 5: Page 260 [related to Japans Question 5 of advance written questions]  
1. Concerning the criteria of the division of "個人物品 " and " 貿易貨物 ", please indicate the concrete 
article or the place of the mentioned Regulation.  
Reply: For the difference between goods an d items, please refer to chapters III and IV 
of Customs Law of the People's Republic of China .  
2. We have not yet received the answer about the HS -code of the goods of "进境物品进口税", please  
answer to this question.  
Reply: For all the customs codes of items li sted on the Notice on Relevant Issues of 
Adjusting Import Tax of Imported Items, please refer to the announcement of the 
Classification Table of Imported Goods of the People's Republic of China  (GAC No.  25 of 
2016).  
3. Since in addition to the above mentio ned questions there still remains ambig uous points, we 
may have some more questions in Beijing, and we will appreciate your kind answer in advance.  
Question 6: Page 261 [related to Japans Question 12 of advance written questions]  
In the answers from China to our Question 12, it was stated that the China Food and Drug 
Administration has entrusted relevant research institutions to carry out research projects on the 
classified management of cosmetics ingredients. Would there be any legal revision expected 
following such research projects? If such revision is carried out through the amendment of the 
Regulations for the Hygiene Supervision of Cosmetics, could China provide its expected schedule of 
the amendment?  
Reply: To promote the scientific management of raw materials of cosmetics, the 
research on classified  management of cosmetics raw materials is currently underway . 
This is a basic research project of cosmetics management.  WT/TPR/M/3 42/Add.1  
 
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  Question  7: Page 262 [related to Japans Question 14 of advance written questions]  
Could China provide the schedule for revising the Administrative Measures for Cosmetic Labelling ? 
Reply: To standardize  the cosmetics labeling management, the Administrative Measures 
on Cosmetics Labeling was drafted  for opinion solicitation  (hereinafter refer red to as the 
Measures) and was made available for public comment  in November 2014.  After the 
release of the Supervision and Management Regulations of Cosmetics, the Measures will 
be improved  according to the public opinions and then  issued.  
Question 8: Pa ge 263 and 268 [related to Japans Question 15 and 39 of advance written 
questions]  
1. The answer from China to our Question 15 seems to be limited to the Guideline in banking 
sector. We would also like to request China's  answer to our questions on other cy ber security 
measures, inter alia, the Draft Cybersecurity Law issued by the National People's Congress in 2015 
and the draft proposal of Insurance Regulatory Commission (CIRC) Information and 
Communication Technology Regulation published in 2015.  
Reply: T he Draft Cybersecurity Law treats the Chinese and foreign enterprises equally.  
1. In recent years, with the rapid progress of information technology and fast development of the 
insurance industry, insurance institutions have been suffering more and more de ception of 
phishing websites, virus attack and distributed denial of service, etc. Information security risk has 
become one of the main risks facing the insurance industry at present. To effectively guard against 
and defuse risks of new technology and main tain the information security of the insurance 
industry, according to the Law of Insurance of the People's Republic of China , Security Protection 
Regulations of Computer Information Systems of the People's Republic of China  and like laws and 
administrative  regulations, the Stipulations of Informationization of Insurance Institutions (Draft 
for public comment) were formulated and are in accordance with Article 14 of GATS.  
2. In the answers from China to our Question 15 and Question 39, it was stated that the  
implementation of the Guidelines in banking sector had been already suspended in April 2015, and 
it was expired. Would this word expired mean the eternal withdrawal of this guideline from 
consideration? Is our understanding correct that China is not consi dering the introduction of any 
similar regulations to this guideline at the moment?  
Reply: The Guidelines in banking sector were  suspended in April 2015.  Decision s will be 
made on whether to introduce similar rules  on the basis of wide opinion solicitation . 
Question 9: Page 263 [related to Japans Question 16 of advance written questions]  
Japan would like to ask as follow to clarify it:  
1. Regarding to Due to the considerations of the legal liabilities undertaken in the reply, Japan 
would like to know what k ind of legal liabilities are considered not being able to undertaken by 
foreign based certification bodies or laboratories.  
Reply: According to the Regulations on Certification and Accreditation of the People's 
Republic of China , Administrative Measures of  Certification Bodies, Administrative 
Measures on Compulsory Product Certification Bodies, Inspection Bodies and 
Laboratories, and other relevant administrative regulations and departmental rules, if 
the certification bodies have any violation of laws and regulations, the bodies shall 
undertake corresponding legal responsibilities in accordance with the seriousness of the 
case, including administrative responsibility (such as penalty), civil responsibility (such 
as compensation) and criminal responsibility (such as criminal penalty to responsible 
persons).  There are no barriers f or domestic certification bodies and staff violating laws 
and regulations to bear the above -mentioned legal responsibilities. But for foreign -
based certification bodies and laborator ies, since the administrative and judicial power 
of the Chinese government cannot extend overseas, they cannot be held responsible for 
due administrative and criminal penalties. Even for the civil responsibility (like WT/TPR/M/3 42/Add.1  
 
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  compensation) that shall be borne by f oreign -based bodies, it can only be undertaken 
through foreign -related civil lawsuit. This is not good for protecting the rights and 
interests of the Chinese consumers and is unfair to domestic certification bodies.  
2. According to the reply, there are som e multilateral or bilateral international mutual recognition 
cooperation which enable overseas laboratories to be accepted their testing data and results for 
CCC certification. Japan would like to ask the concrete name of the existing cooperation, and also  
would like to ask the list of the product as well as concrete conditions to be accepted their testing 
data and results for CCC certification under such cooperation.  
Reply: The multilateral aspect refers to the IECEE -CB system; for the catalog ues that 
China joined, 3C accepts all CB testing data and results. Bilateral cooperation includes 
the mutual recognition agreements signed by China and New Zealand, and China and the 
Republic of Korea under the framework of their respective FTAs.  
Question 10: Page 269 [related to Japans Question 40 of advance written questions]  
1. According to the China's  schedule of GATS, China made commitments in the sub -sectors 
Advertising Services  (CPC871) and Travel Agency and Tour Operator  (CPC7471) as below.  
2. However, some Japa nese companies face difficulties when they establish commercial presences 
and attempt to provide on -line advertising or travel agency services through these commercial 
presences in China (i.e. mode3), because they are not permitted to provide services with out ICP 
licenses and they cannot have the foreign majority owner -ship even though they have ICP 
licenses.  
3. This means that there is inconsistency between the existing measures in China and the China's  
GATS commitments.  
4. In addition, Japan would like C hina to clarify the differences between the profitable ICP license 
and non -profitable ICP license (the coverage of the business, the requirement of each license.).  
Reply: China's  commitments to the WTO clearly states that the equity ratio of foreign 
invest ors engaging in the value -added telecommunication service shall not exceed 50%.  
The current regulations of China are in conformity with China's  WTO commitments. For 
all kinds of Internet information service platforms, according to the definition of 
Catalog ue for the Guidance of Telecommunication Operation Classification 
(2015  version), establishment of on -line information publishing platform for self -
operated business  shall go through the filing formalities according to the existing legal 
procedures; establ ishment of platform to provide services for information publishing by 
the third party shall apply for corresponding telecommunication business licenses 
according to laws.  
 Limitations on market access  Limitation on national treatment  Additional 
commitments  
(a) 
Advertising 
Services  
(CPC 871)  (1) Only through advertising agents registered in 
China who have the right to provide foreign 
advertising services.  
 
(2) Only through advertising agents registered in 
China who have the right to provide foreign 
advertis ing services  
(3) Foreign service suppliers are permitted to 
establish advertising enterprises in China only in the 
form of joint ventures with foreign investment no 
more than 49%. Within two years after China's 
accession, foreign majority ownership will be  
permitted and within four years after China's 
accession, wholly foreign -owned subsidiaries will be 
permitted.  
 
(4) Unbound except as indicated in horizontal 
commitments  (1) None  
 
 
 
(2) None  
 
 
 
 
(3) None  
 
 
 
 
 
(4) Unbound except as indicated in 
horizontal commitments.   
B. Travel 
Agency and 
Tour (1) None  
1 
(2) None  (1) None  
1 
(2) None   WT/TPR/M/3 42/Add.1  
 
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   Limitations on market access  Limitation on national treatment  Additional 
commitments  
Operator  
(CPC 7471)  
B.CPC7471  2 
(3) Foreign services suppliers who meet the 
following conditions are permitted to provide 
services in the form of joint venture travel agencies 
and tour operators in the holiday resorts designated 
by the Chinese government and in the cities of 
Beijing, Shanghai, Guangzhou and Xi'an upon 
accession:  
3 
(a) a travel agency and tour operator mainly 
engaged in travel business;  
a 
(b) Annual world -wide turnover exceeds US$ 40 
million.  
The registered capital of joint venture travel 
agency/tour operator shall be no less than RMB 4 
million.  
 
Within three years after China's  
accession, the registered capital shall be no less 
than RMB 2.5 million. Within three years after 
accessi on foreign majority ownership will be 
permitted. within six years after accession, wholly 
foreign -owned subsidiaries will be permitted and 
geographic restrictions will be removed. The 
business scope of the travel agency/ tour operator is 
as follows:  
 
(a) travel and hotel accommodation services for 
foreign travellers which can be made directly with 
transportation and hotel operators in China covering 
such operations;  
(b) travel services and hotel accommodation 
services for domestic travellers which can be m ade 
directly with transportation and hotel operators in 
China covering such operations;  
 (c) conducting of tours within China for both 
domestic and foreign travellers, and  
c 
(d) travellers check cashing services within China.  
None within six years after ac cession, there will be 
no restriction on the establishment of branches of 
the joint venture travel agency/tour operator and 
the requirement on registered capital of foreign -
invested travel agency/tour operator will be the 
same as that of Chinese travel age ncy/ tour 
operator.  
 
(4) Unbound, except as indicated in horizontal 
commitments.   
(3) None except that joint ventures 
or 
wholly -owned travel agencies and  
tour operators are not permitted to  
engage in the activities of Chinese  
travelling  abroad and to Hong Kong  
China, Macao China and Chinese  
Taipei.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4) Unbound, except as indicated in 
horizontal commitments.  
4 
 WT/TPR/M/3 42/Add.1  
 
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  29  KOREA , REPUBLIC OF  
WT/TPR/S/342  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 47 , paragraph 3.3; Page 48 , paragraph 3.6 
3.3. Importers (and exporters) need 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 Cata logue of Import and Export Commodities Subject to 
Compulsory Inspection. 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.  
3.6. In addition to the ordinary import regime, China has six additional regimes including: the 
importation of goods at no cost to replace damaged products; the importation of leased goods; the 
temporary entry of goods; the entry of goods for mai ntenance and repair; the importation of 
returned goods; and imports into special customs supervision areas. These regimes have not 
undergone substantial changes since 2014. Goods entering (and exiting) bonded zones, export 
processing zones and other specia l customs supervision areas, as well as border trade imports 
(and exports), are subject to different customs procedures formulated by GACC, and to different 
inspection and quarantine requirements, which are formulated by the AQSIQ with the GACC.  
Question 1  
All pharmaceutical products imported into China are inspected by laboratories at Chinese customs 
clearance. In general, if countries operate GMP system, pharmaceutical quality control is 
conducted by self -quality control of pharmaceutical manufacturer or importer. China is operating 
the GMP system. Inspecting all pharmaceutical products imported into China is regulatory burden 
not only on exporters but also on Chinese government. Korea requests China to provide 
information on the current status of customs clearance procedures of imported pharmaceutical 
products and Korea also would like to have China 's opinion on making adjustment on policy of 
customs clearance on imported pharmaceutical products.  
Reply: This question is about the necessity of lot -by-lot i nspection on imported 
pharmaceutical products. In the past, China did not conduct overseas on -site inspection, 
so it was necessary for China to adopt lot -by-lot inspection imported pharmaceutical 
products. Since China has practiced overseas on -site inspect ion now, it is an alternative 
to consider adopting problem -oriented random inspection on imported pharmaceutical 
products and cancel ling lot -by-lot inspection.  
Page 52 , paragraph 3.18 
Since the previous review there do not seem to have been any substantia l changes regarding the 
products subject to tariff -rate quotas (TRQs), the tariff rates applied or the system to allocate 
them. In 2015, as at the time of the previous Review, TRQs applied to 47 tariff lines included in 
HS Chapters 10 (wheat and meslin, ma ize, 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). The in -quota and out -of-quota rates also remained unchanged. The 
out-of-quota rates are in most cases equal to the bound rates. All in -quota rates are ad valorem , 
with the exception of the rate that applies to a "certain portion" of imports of cotton (Section 4). 
According to the authorities, the tariff quota allocation proc ess has not changed since 2013. The 
most recent information available for tariff quota utilization dates from 2014.  
Question 2  
China 's TRQ on rice is separated into two sub -categories; 2,660 thousand tonnes for short and 
medium grain and another 2,660 thou sand tonnes for long grain. Could China please provide the 
in-quota imports and fill rate for each sub -category during the review period?  
Reply: Currently, no relevant statistics is available.  WT/TPR/M/3 42/Add.1  
 
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  Page 53 , 3.1.5 Other charges affecting imports  
Imports are subj ect to Value Added Tax (VAT), which is collected by Customs on behalf of the 
State Administration of Taxation (SAT). VAT on imports is charged 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. (38) VAT has two rates: 13% and 17%. The list of products subject 
to the 13% rate and those that are exempt from the VAT has not changed since the previous 
Review. Domestically -produced agricultural products sold d irectly by the producer continue to be 
exempted from VAT, while imported goods are not.  
Question 3  
Chinese regulators announced registration and related fees for medical devices on May 27, 2015, 
which differentiate registration fees for medical devices and  imported medical devices. This is a 
discriminatory regulation to imported medical devices. For Class III medical devices, new 
registration fees are approximately twice as high as domestic counterparts. At the previous TBT 
Committee held in June 2015, Chin a cited the reason of higher registration fees for imported 
medical devices is that the fees reflected cost for on -site inspection. While on -site inspection for 
imported medical devices costs more than inspection for domestic medical devices after factorin g 
in additional costs such as flight and accommodation, still, registration fee of imported medical 
device is unreasonably expensive. What is more, Article 13 of the Regulations for Supervision and 
Administration of Medical Devices stipulates that the insp ections would be required to perform only 
when authorities deem they are necessary. Therefore, Korea requests Chinese authorities to 
separate the costs for on -site inspection from the registration fees, which is a general practice of 
the most of countries including Korea. Korea would like to have China 's opinion on this matter and 
Korea would like to know if China has a plan to separate on -site inspection cost from the 
registration charge.  
Reply: According to Article 10 of Notice on Measures of the Administ ration of Charging 
Standard for Drug and Medical Devices Registration  (NDRC Price (2015) No.  1006), in 
principle, registration fees of medical devices will be evaluated every five years and will 
be adjusted accordingly.  
Page 54 , paragraph 3.22; Page 63 , paragraph 3.64; Page 69 , Table 3.9  
3.22. Import prohibitions, restrictions and non -automatic licensing are maintained in China to 
safeguard national security; public morality; human, animal and plant health; the environment 
and exhaustible natural resources ; to comply with China's obligations under international 
agreements; and for balance -of-payments reasons.41 China notified that it applies an import 
licensing regime, under which there are three types of licences: automatic licences, non -automatic 
licences  and tariff -rate quota certificates. According to China's last notification, the licensing 
regime has not changed substantially since the last Review in 2014. (42) 
3.64. The Standardization Law (1988) and the Regulations for the Implementation of the 
Standa rdization Law (1990) continue to constitute the main legislation with respect to standards in 
China. Other pieces of legislation have, however, an impact on standards and technical 
regulations. The revised Regulations on the Supervision and Administration of Medical Devices 
(State Council Decree No. 650), which came into force on 1 June 2014, introduced a number of 
changes in this area, mainly aimed at increasing supervision and safety. These included: the 
revision of the definition of and classification ru les for medical devices and improvements to the 
approval or filing system for product registration and production, which now allows product 
registration to take place before a production licence has been granted. Also, the record -filing of 
first class medi cal devices can now be done at the local or city -level food and drug regulators, 
instead of at the provincial level, as was previously the case; this is meant to facilitate procedures. 
The revised regulations have also strengthened supervision and administ ration of the use of 
medical devices, calling for the introduction of systems such as medical -device -related adverse 
event monitoring, traceability, and recall, and imposing greater penalties for illegal acts.  
Table 3.9 China Food and Drug Administration ( CFDA) Responsible for: drafting laws, regulations 
and departmental rules to formulate policies to oversee food safety (including food additives and WT/TPR/M/3 42/Add.1  
 
- 266 - 
 
  health foods), drugs (including traditional Chinese medicines), medical devices, and cosmetics; 
and supervis ing safety in food and drug production  
Question 4  
Under the current regulations for the supervision and administration of medical devices, China 
does not accept test reports issued by internationally accredited laboratories. This leads to 
unnecessary dupli cation of testing for imported medical devices that are already tested. And 
consequently, it causes additional expenses and export delay. As accepting internationally 
accredited laboratories ' test reports and internationally recognized test reports is gene ral practice, 
member countries have requested China to accept those test reports if their reports meet China 's 
technology criteria under its standards and regulations. As currently it is known that China 
recognizes some non -clinical data issued in accordan ce with ISO and is considering expanding the 
scope of acceptance, Korea would like to ask China on its plan for recognizing internationally 
accredited laboratories ' test reports as well as the non -clinical data.  
Reply: Article 57 of Regulations on Supervis ion and Administration of Medical Devices  
(the State Council Order No.  650) stipulates that only the inspection institutions jointly 
identified by the certification and accreditation administration department and the food 
and the drug administration depart ment of the State Council are qualified to carry out 
inspections on medical devices. Therefore, qualified medical devices inspection 
institutions should issue the inspection report attached to the application materials for 
medical devices registration. In other words, if the inspection institution is jointly 
identified by the certification and accreditation administration department and the food 
and drug administration department of the State Council, China Food and Drug 
Administration will accept the regis tration inspection report issued by such inspection 
institutions.  
Question 5  
While domestic cosmetics do not need to be approved prior to market, imported cosmetics are 
required to obtain approval. This discriminatory regulation is against principals of n ational 
treatment on WTO agreement. What is more, for the approval, it is required to obtain test reports 
of only a few Chinese laboratories and it leads delay on market release of new product in China. 
Korea would like to have CFDA 's answer whether it has  plan to recognize in -house test report of 
exporting countries in order for regulator y harmonization with international practice  
Reply:  
1. The so -called discriminatory regulations on imported cosmetics are not consistent 
with the facts.  According to Regula tions for the Hygiene Supervision of Cosmetics  and 
other relevant regulations, Chinese indigenous cosmetics manufacturing enterprises 
should obtain the production license before engaging in cosmetics production and 
should go through routine supervision and  inspection.  At the same time, indigenous 
special -purpose cosmetics should not be produced without approval while non -special 
cosmetics should be registered in provincial food and drug supervision department.  
Compared with indigenous cosmetics manufacturin g enterprises, imported cosmetics 
manufacturing enterprises do not have to obtain any production license; imported 
special -purpose cosmetics are subject to the same marketing permission system as that 
of indigenous cosmetics. The administrative method of i mported non -special cosmetics 
is different from that of indigenous cosmetics, but the safety -related information 
submitted for license and registration is identical to that of indigenous cosmetics.  
2. So far, we have not noticed the phenomenon that approv al and inspection procedure 
results in delay on market release of new products in China. First -time application for 
administrative approval on imported cosmetics requires relevant inspection report 
issued by the cosmetics inspection institution for adminis trative approval. 33 qualified 
cosmetics inspection institutions for administrative approval are available and the 
cosmetics enterprises can entrust one of them to carry out pre -approval inspection. 
From international practices, recognition on foreign insp ection report should base on 
mutual accreditation of inspection results, and the prerequisite of mutual accreditation WT/TPR/M/3 42/Add.1  
 
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  is the conformity of inspection methods and technical standards.  At present, as to 
inspection on sun protection factor (SPF) of sun screen ing cosmetics, China recognizes 
the SPF report issued by foreign inspection institutions based on the inspection method 
and technical standard that conform to those of China.  
Page 65 , paragraph 3.71; Page 70 , paragraph 3.87 
3.71.  China administers both a voluntary certification system and a compulsory product 
certification system. The China National Certification and Accreditation Administration (CNCA), 
under AQSIQ, manages both systems. Certification and accreditation are regulated by: the 
Standardization  Law; the Product Quality Law; the Import and Export Commodity Inspection Law; 
the Regulations on Certification and Accreditation; the Regulations on Compulsory Product 
Certification  (82), as well as the Measures for the Administration of Certification Bod ies; 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 
Energysaving and Low -carbon -emission Product Ce rtification.  
3.87.  The 2015 Food Safety Law indicates that imported (and exported) food must be subject to 
the supervision and administration of state entry -exit inspection and quarantine authorities both at 
the central and sub -central level. In general, i mported food, food additives and other food -related 
products must meet China's national food safety standards; however, if these standards do not 
exist, the health administrative department of the National Health and Family Planning 
Commission may, on a te mporary basis, apply the standards of a relevant country (or region) or 
an international standard. Importers (of food, food additives and food -related products) must 
establish a "review system" for overseas exporters and/or overseas producers. If the impor ted 
food fails to meet China's national food safety standards, or may harm human health as proved by 
"evidence", the importer concerned will be prohibited from continuing to import the product and all 
imports of the concerned products must be recalled.  
Question 6  
China is in the process of introducing regulation which requires 'certification of the government ' 
issued by the exporting country for foods imported into China. In order for the exporting country 
to verify that the product meets China 's standards,  China should provide exporting countries with 
information on criteria and testing methods so that exporting countries can certify that the 
products meet Chinese food standard. To avoid duplicated inspection, the food products with 
government certification  of the exporting country should be exempted from the inspection of the 
Chinese inspection and quarantine authorities. Korea would like to ask China for their plans and 
position on this issue.  
Reply: It is because of the following reasons that foods import ed into China should 
attach official certificates:  
First, Food Safety Law of the People's Republic of China . Article 92 of Food Safety Law  
provides that imported food shall conform to Chinese national standard for food safety.  
Imported food must attach qu alification certificates as required by Chinese entry and 
exit inspection and quarantine departments. Second, international practice. Guidelines 
for Design, Production, Issuance and Use of Generic Official Certificates  of Codex 
Alimentarius Commission (CAC ) states that "the importing country 's competent 
authority may, as a condition for clearance of food presented for international trade, 
require importers to present official certificates issued by or with the authority of the 
exporting country 's competent authority.  These guidelines recognize that ... official 
certificates may help importing countries to achieve their objectives relating to food 
safety and ensuring fair practices in the food trade ". The Section on Exported Food of 
the Manuals of Food Qualit y Control of Food and Agriculture Organization (FAO) states 
that the quality control and inspection system of exported food can raise food 
enterprises ' awareness of quality, and will benefit both the export industry and domestic 
consumers.  
On 25 April, AQS IQ sent the Communication on the Official Certification Requirements 
for Imported Food (Zhijian Shiwai Han [2016] No. 327) to the trading countries ' WT/TPR/M/3 42/Add.1  
 
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  embassies in China, to notify them of the measures China planned to take, in the hope of 
having full commun ication and discussions with those countries, and officially notify the 
WTO after listening to their comments.  In order to avoid any influence on trade caused 
by this measure, China reserves an 18 -month transitional period in the note, that is to 
say, the measure will not be compulsory before October 1, 2017.  
Question 7  
China requires the submission of plasticizer inspection test reports for liquors imported into China. 
This measure has been introduced following media reports that chemical was found in Baij iu in 
2012. In Korean liquor, there has not been a single non -conforming case of plasticizers in spirits 
exported to China since 2012. Therefore, there would be no harm to Chinese people and their 
health with lifting the measure requiring plasticizer inspe ction test report for imported liquor. We 
would like to have China 's opinion on this matter.  
Reply: Since January 25, 2016, all wine products imported into China need no plasticizer 
inspection reports provided by the importers.  
Page 67 , paragraph 3.78; Page 71 , paragraph 3.88 
3.78.  With respect to labelling, a number of laws and regulations are in force. They concentrate 
mainly on labelling and packaging of food, drugs and cosmetics, medical devices, and seeds. The 
labelling and packaging requirements for  food are contained in the Provisions for the 
Administration of Food Labelling (AQSIQ Decree No. 123), the Provisions for the Supervision and 
Administration of Production of Food Additives (AQSIQ Decree No. 127), and the Announcement on 
the Issues Related to the Use of Mark of Corporate Food Production Licence (AQSIQ [2010] 
Announcement No. 34). The revised Food Safety Law adopted in April 2015 introduced more 
specific and detailed labelling and packaging requirements for pre -packaged and healthcare food. 
The labelling and packaging requirements for drugs and cosmetics are contained in the Drug 
Administration Law (Presidential Decree No. 45), the revised Regulations for the Implementation 
of the Drug Administration Law (State Council Decree No. 360), adopted  in March 2014, and the 
Regulations for the Hygiene Supervision of Cosmetics (Ministry of Health Decree No. 3). Articles 34 
and 35 of the revised Seeds Law specify the labelling and packaging requirements for seeds.  
3.88.  Imported pre -packaged food or food  additives require a label and an instruction manual (if it 
applies) in Chinese. Such labels and instruction manuals must specify the origin of the product; 
and the name, address and contact details of the domestic agent importing the food. In addition, 
importers 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.  
Question 8  
China is in the process of introducing regulation that prohibits the attachment of printed labels in 
sticker form that are written in Chinese on foods imported into China. Ch ina's restriction on over -
labelling on food is unprecedented as there is no other countries put restriction on over -labelling 
on imported foods. And Korea sees the new regulation puts a excessive strain on exporters as they 
have to produce additional packa ge in order to export their products to China. Korea would like to 
have China 's opinion on this matter and current progress of the regulation on over -labelling.   
Reply: At present, this measure (prohibit the attachment of printed labels) is only 
applicable  to infant formula milk powder, inapplicable to other foods.  
Page 68 , paragraph 3.81; Page 71 , paragraph 3.89; Page 71 , paragraph 3.90 
3.81.  The 2015 Food Safety Law aims at strengthening the domestic food safety management 
system. It imposes greater respo nsibility for food safety on food producers and traders, and on 
local governments; and at the same time imposes severe punishments to those that violate the 
Law. Some of the main amendments introduced by the Food Safety Law in 2015 are as follows:  WT/TPR/M/3 42/Add.1  
 
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   establis hes a registration system for infant formula powder and formulas for special  medical 
purposes .  
3.89.  In 2012, Members raised concerns regarding the registration requirements for foreign 
companies importing food into China. This issue has been reiterated o n several occasions. At the 
time of the last Review, the authorities indicated that these measures were based on WTO rules. 
As a result of the 2015 Food Safety Law, the requirements for foreign companies importing food 
into China have changed. Exporters or  agents (foreign enterprises) that export food into China and 
importers (Chinese enterprises) that import food must apply to the state entry -exit inspection and 
quarantine authority (through record -filing). Overseas enterprises that produce food and/or exp ort 
food into China must be registered by the state entry -exit inspection and quarantine authority. To 
apply for registration, enterprises must be recommended to the CNCA via a competent authority of 
the countries (regions) where such enterprises are locat ed or in other "prescribed manner". If a 
registered overseas food production enterprise has provided false material or if the imported food 
has been the object of a major food safety issue, the state entry -exit inspection and quarantine 
authority will canc el the registration of the enterprise and make a public announcement.  
3.90.  Foreign enterprises that manufacture, import, process and store food must be registered 
with the CNCA before their food products are imported into China. In addition, the 2015 Food  
Safety Law in its Articles 74 -83 stipulates special regulations for certain food or food -related 
products (e.g. supplements, "formula food for special medicinal purposes"; and infant and follow -
up formula and other special foods), which are subject to str ict supervision and administration. 
Enterprises producing these products must fulfill special registration and/or record -filing 
formalities, establish a production quality management system, and submit a "self -inspection" 
report to the food and drug admini stration of the local government. Registration and record -filing 
formalities vary according to the product.  
Question 9  
According to the Regulation, infant formula products manufactured or distributed in or imported to 
China have to be registered at the CFD A. Korean products being exported to the Chinese market 
were assessed by the CNCA in 2014 and facilities and formula composition were registered. In 
other words, all Korean companies were audited by the CNCA in the year and information including 
formula co mpositions was submitted to get registration of facilities of exporters, product types and 
individual products. Therefore, the requirement for registration at the CFDA is considered to be 
duplicate regulation. Moreover, the Regulation stipulates that one c ompany shall not register more 
than 3 series of products and 9 product formula in CFDA. The restriction of the number of brand 
names and products is excessive strain and it should be deleted. At least, businesses need 
sufficient grace period to prepare for  the new regulation. Korea would like to have China how long 
the grace period of the administrative measures is considered to be granted.  
Reply: Product formula registration required by National Food and Drug Administration 
mainly aims at reviewing and reg istering the science basis, safety and R&D data of 
product formula, and the capability of the enterprise to put the formula into production, 
with an emphasis different from the enterprise registration required by CNCA. At the 
same time, CFDA conducted some  initial investigation and research and got to know that 
large enterprises of other countries usually only manufacture and sell 2 -3 brands. In 
theory, infant formula milk powder should resemble breast milk and it is not advised to 
have too much formula. Th erefore, CFDA strictly controls the quantity of formula 
registration and call for that R&D and design of milk formula should be based on human 
health research, which conforms to the actual situation and milk formula R&D principle 
in China. Foreign and dome stic enterprises follow the same requirements and 
regulations on registration and there are no different policies.  CFDA will enhance its 
contact with relevant departments in terms of product formula registration of foreign 
enterprises to avoid repetitive i nspection as possible and allow a certain transitional 
period for the implementation of the measure.  
Question 10  
China announced subordinate provisions for "Registration of Foods for Special Medical Purposes " 
(effective from July 1, 2016) through the CFDA  website on April 18, 2016.  China has conducted WT/TPR/M/3 42/Add.1  
 
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  public consultation as of May 15, 2016. In response to the new subordinate provisions, Korea has 
submitted its opinions on total production requirements for safety tests as specified in "Required 
Application Materials for Registration of Foods for Special Medical Purposes " and on shortening the 
period of long -term safety tests as stipulated in "Safety Tests and Safety Research Material 
Requirements of Foods for Special Medical Purposes " to the CFDA. Korea asks  whether its opinions 
on subordinate provisions are reflected  
Reply: CFDA is amending and improving relevant supportive documents of Measures of 
the Administration of Registration of Foods for Special Medical Purposes  based on the 
opinions of all walks of life including South Korea, and will formally issue them soon. 
After the above -mentioned documents are issued, please visit the official website of 
CFDA for stability study and other contents.  
Page 94 , paragraph 3.173  
Imports subject to state trading admi nistration comprise: grain (including wheat, maize, and rice), 
sugar, cotton, chemical fertilizers, tobacco, crude oil, and processed oil (Table  3.17). They can be 
imported (and  exported) only by authorized enterprises, in accordance with Article 11 of the  
Foreign Trade Law. Tobacco is the only state -traded product that can be traded solely by state -
trading enterprises. Non -state trading enterprises that have obtained trading rights through 
registration may engage in the importation of part of the quota of products subject to tariff -rate 
quotas (grain, cotton, sugar, and certain chemical fertilizers), and of crude and processed oil. 
The NDRC (in the case of grains and cotton) and MOFCOM (for the other products) issue on a 
yearly basis the criteria for an ent erprise to acquire trading rights for these products, the volumes 
they can import and the allocation method. No information was provided on the quantities 
imported under state trading.  
Question 11  
Could China please provide state -trading data of rice, incl uding quantity imported by state -trading 
enterprises, average import price and average representative domestic price?  
Reply: Besides the import TRQs for state trading, the STEs can also act as agents for the 
import and export businesses for various types o f other enterprises. It is therefore 
difficult to differentiate transactions conducted on their own and on behalf of other 
enterprises. When state trading enterprises import TRQ agricultural products, the resale 
prices are mainly determined according to th e supply and prices on the domestic and 
international markets, and the enterprises assume sole responsibility for their own 
profits and losses.When state trading enterprises act as import agents of other 
enterprises, resale prices of import merchandise are  roughly the import CIF prices plus 
agent service fees of a certain proportion, without any import mark -up. 
4. TRADE POLICIES AND BY SECTOR   
Page 121 , paragraph 4.22 
The Direct Subsidy to Farmers programme was introduced in 2004 and is still in place. Subs idies 
are paid at a flat rate per unit of land planted. The payment is provided to the person who holds 
the contract rights to the land, not to the person who cultivates the land. In general, the rate is 
RMB 10 -15 per mu (i.e. 0.06 ha) but it may vary acco rding to the locality. The programme is 
administered at the provincial level and the amount of the subsidy granted may vary. However, 
government outlays for direct payments have remained unchanged at RMB 15.1 billion per year 
since 2012, as according to th e authorities the number of beneficiaries and the amount of land 
that they hold, has not changed.  
Question 12  
Could China please explain why the direct payment is provided to the person who holds the 
contract rights to the land, not to the person who culti vates the land?  
Reply : The agricultural support and protection subsidy is offered  in principle to peasants 
with land contractual management rights.  WT/TPR/M/3 42/Add.1  
 
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  Page 123 , paragraph 4.24 
A minimum procurement price scheme remains in place for rice and wheat in major pro ducing 
areas. Minimum prices for grains (i.e. rice and wheat) continue to be set by the NDRC on a yearly 
basis, in consultation with the Ministry of Agriculture and other governmental institutions. The 
minimum price for rice and wheat increased during 2012 -2014, due to an increase in production 
costs, but remained unchanged in 2015. The state -owned company Sinograin, purchases grains 
when the market price falls below the established support level. The minimum procurement price 
scheme for grains is linked to  the volume of China's grain reserves; the minimum -price system is 
in place to ensure a stable supply of grains. Grain reserves of maize, rice, soya beans and wheat 
are maintained by central and local authorities to ensure food security. According to the 
authorities, the purchase of the reserves is carried out by appointed enterprises at market prices 
or at the minimum procurement prices set by the Government.  
Question 13  
Has China implemented market price support of rice since 2011? If so, could China plea se provide 
applied administered price and eligible production of each year?  
Reply: Since 2004 and 2006, China has practiced the policy of minimum procurement 
price for rice and wheat respectively in the main producing areas under the 
preconditions of givin g full play to the leading role of market mechanism. Usually, 
farmers sell their grains flexibly according to market prices and the country does not 
interfere with the market and price. Only when rice and wheat prices of the main 
producing areas fall down sharply and become lower than the minimum procurement 
price, farmers can sell their grains to the enterprises specified by the country at the 
minimum procurement price, so as to reduce their loss due to the plunge of grain price.  
The minimum procurement p rices of rice and wheat from 2011 to 2015 are shown in the 
following table.  
Minimum Procurement Prices of Rice and Wheat , 2011 -2015  
Unit: RMB/500g  
 2011  2012  2013  2014  2015  
Early Indica Rice  1.02 1.2 1.32 1.35 1.35 
Medium -late Indica Rice  1.07 1.25 1.35 1.38 1.38 
Japonica Rice  1.28 1.4 1.5 1.55 1.55 
Wheat  White Wheat: 0.95  1.02 1.12 1.18 1.18 
Red Wheat and Mixed Wheat: 0.93  
Question 14  
What is the main factor that determines whether the purchase of the grain reserves is carried out 
by appointed e nterprises at market prices or at the minimum procurement prices set by the 
Government?  
Reply: Generally, reserved grain is procured at market price. When the regional plan for 
minimum procurement price is implemented, the enterprises responsible for grain  
reserves should procurement the farmers' grain at the price no less than minimum 
procurement price.  
Question 15  
What specific measures is China taking to achieve market -oriented reform of minimum 
procurement price scheme?  
Reply: The precondition of minim um procurement price policy is to give full play to the 
leading role of market mechanism. Generally, farmers sell their grain flexibly according 
to the market price and the country does not interfere with the market and price. Only 
when rice and wheat pric es fall down sharply and become lower than the minimum 
procurement price, farmers can sell their grain to the enterprises specified by the WT/TPR/M/3 42/Add.1  
 
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  country. Therefore, there is no so -called "market -oriented reform of minimum 
procurement price system".  
Page 125 , Box 4.1 
In value -added telecom services, 34 foreign -invested enterprises obtained telecom business 
licences, with foreign equity ratio ranging from 15% to 100%. Foreign investment was mainly 
from: Hong Kong, China; Chinese Taipei; Republic of Korea; Japan; Si ngapore; the United States; 
Germany; Ireland; and Finland.  
Question 16  
When foreign person can invest in value -added telecommunications services up to 100%?  
Reply: Value -added telecom service categories listed in Chinese service trade schedule 
of concessio ns will be open to foreign investment in accordance with GATS commitment. 
China will select service categories for further opening up according to domestic market 
development condition. China is willing to negotiate with South Korea on further 
opening of t elecom services under the framework of Doha Negotiations.  
Page 125 , paragraph 4.33 
In order to adapt to technological developments and to the emergence of new telecommunications 
businesses and services, the Catalogue of Telecom Business Classification was  revised and a new 
version was issued in December 2015. The Catalogue of Telecom Business Classification 
(2015  version) defines the characteristics and scope of all kinds of telecommunications businesses 
and services and does not deal with foreign ownershi p ratios. The authorities underlined that all 
the telecommunications businesses included in China's WTO accession commitments have 
corresponding business classifications in the 2015 version of the catalogue.  
Question 17  
According to the new version of Clas sification Catalogue of Telecommunications Services (2015 
catalog), Internet Data Center (IDC) catalogue and the Internet Resources Collaboration Services 
(IRC) are classified as value -added telecommunication services. Under W/120 classification list, 
these services can be also classified as Computer and related Services (CRS). In China 's GATS 
schedule, China imposes no equity limitation in CRS (date processing services), but there is a 50% 
foreign equity limitation in VATS. The different market access trea tment given to VATS and CRS 
creates a classification and interpretation problem regarding China 's GATS Schedule. Please clarify 
whether IDC and IRC is also subject to a 50% foreign equity limitation in VATS. If so, isn 't it 
contradicting China 's GATS commi tment considering that these services can also be classified as 
CRS under the W/120 classification list?  
Reply: In order to comply with new telecom technologies and businesses, we amended 
the original Classification Catalogue of Telecom Services  and asked for public opinions. 
We issued a new version at the end of 2015, in which we specified the classifications of 
telecom services, defined the features and scope of various telecom services, and listed 
the services sectors to be opened up under China's WTO co mmitment. China believes 
that China's GATS commitment is clear and definite and China is always fulfilling her 
WTO commitment. If South Korea has any doubt about the detailed service 
classifications, it is recommended to discuss such problems within CSC.  
Page 127 , paragraph 4.42 
In May 2015, MIIT launched a trial programme for Mobile Virtual Network Operators (MVNO) 
licences in order to improve policies and promote competition in the mobile communications 
market. By the end of 2015, 42 such licences had be en issued, with over 20.5 million users.  WT/TPR/M/3 42/Add.1  
 
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  Question 18  
Could China please explain whether foreign invested enterprises can hold MVNO licenses? If they 
can, please indicate the level of foreign equity limitation and the number of foreign invested 
enterprises among the 42 MVNO licensees. If foreign equity investments is not allowed in MVNO, 
isn't it inconsistent with China ' GATS Schedule because foreign investment is allowed up to 49% 
for basic telecommunication services and 50% for value -added telecommunicatio n services.  
Reply: China's commitment is clear and definite and Chinese government is always 
fulfilling her WTO commitment. In order to unleash telecom market vitality, encourage 
and guide private capital to engage in the telecom industry, China started th e pilot 
program on mobile communication resale in 2013. As of now, total 42 private 
enterprises have obtained official approval for pilot and have 30,000,000 users in total.  
WT/TPR/G/342  
Page 7 , paragraph 2.20 
Since the last review, the service sector has  enjoyed comprehensive and fast development as well 
as a constantly expanded scale, and accounts for half of the national economy. With the structure 
further optimized, it has played a positive and important role in promoting employment, 
stimulating consum ption and improving people's livelihoods and become a major impetus and a 
new engine that fuels national economic growth. The Chinese government has continued to 
encourage non -government players to increase their investment in the service sector, deepen 
various reforms in the service sector, and released the guiding opinions on promoting the 
development of information services, culture, tourism, sports, elderly care, health, life service and 
other service industries. The Chinese government has focused on pr omoting the development of 
emerging industries such as energy conservation and environment protection, and endeavoured to 
cultivate a sound policy and institutional environment for the development of the service sector.  
Question 19  
Could you please share t he China 's opinion on relationship between some new regulations on 
service sector and policy for promotion investment in the service sector.  
Reply: one of the targets of China's expanding the opening -up is to promote foreign 
investment in the service secto r. opinions of the central committee of the CPC and the 
state council on building an open and new economic system and the thirteenth five -year 
plan for national economic and social development of the People's Republic of China 
have made comprehensive arran gements on further opening -up and expanding 
investment market access. As for the next step, China will comprehensively practice 
"pre-establishment national treatment + negative list" administration system for foreign 
investment, open more fields of the ser vice sector and improve the opening level of the 
manufacturing industry . WT/TPR/M/3 42/Add.1  
 
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  30  KOREA, REPUBLIC OF ( ADD.)  
WT/TPR/S/342  
2. TRADE AND INVESTMENT REGIME  
Page 37 , paragraph 2.24 
The main laws regulating foreign investment in China are the Company Law, last amended i n 
2013, and the three laws specifically related to FDI: the Law on Sino -Foreign Equity Joint 
Ventures, the Law on Sino -Foreign Cooperative Joint Ventures, and the Law on Wholly 
Foreign -Owned Enterprises, as well as their related administrative regulations and rules. MOFCOM 
is revising these three laws to combine them into one statute, the draft Foreign Investment Law.  
Question 1   
When does MOFCOM expect to complete the revision of the three foreign investment laws? Would 
it be possible to extend the period for collecting opinions regarding the laws enactment and 
announce a clear timeline for the revision?  
Reply: In January 2015, the Ministry of Commerce of China drew up The Foreign 
Investment Law of the People's Republic of China  (draft for opinion solicitat ion) and 
released it for public comment. The legislative intent of this law is to create a more 
stable, transparent and predictable legal environment for foreign investment. Next, 
China will facilitate the promulgation of The Foreign Investment Law  at an e arlier date 
according to established domestic legislative procedures. Currently, there is no specific 
timetable as to when it will take effect.   
Page 38 , paragraph 2.26  
The authorities consider that the revision of the Investment Catalogue denotes an impo rtant effort 
to comprehensively open up the Chinese economy to foreign investment. According to the 
information supplied by the authorities, the 2015 Catalogue includes a total of 423 entries, 48 less 
than the 2011 Catalogue. The authorities also noted tha t the number of restricted sectors was 
reduced from 79 in 2011 to 39 in 2015; while the number of encouraged sectors remained mainly 
unchanged (Box 2.2; Table A2.3; and Table A2.4). The revised Catalogue aims at channelling FDI 
towards industries that requ ire restructuring through the use of new equipment and new and 
greener technologies. According to the authorities, the 2015 Catalogue was revised to open the 
economy mainly in the services sector but also in manufacturing; the revision is intended to 
promo te the use of foreign investment in a more efficient manner.  
Question 2  
Regarding China's  efforts to open its market through the revision of the Investment Catalogue, 
does China have any plans for additional opening in the manufacturing and service sectors , such 
as the automobile industry, participation of foreign companies in constructions ordered by the 
Chinese government, and the construction and management of movie theaters?  
Reply: China will study the possibility of further opening up such fields as au tomobile 
manufacturing and culture in line with the requirement of deepening reform and 
opening up wider to the outside world.  
Page 40 , paragraph 2.31 
FDI in the form of mergers and acquisitions (M&As) is subject to anti -trust reviews, which are 
intended t o assess their impact on the market. In 2011, China issued guidelines to assess the 
impact of anti -trust reviews. In addition, FDI involving investments in Chinese domestic 
enterprises might be subject to national security reviews if the FDI is related to defence, or is 
deemed to have an influence on national security. In 2011, the authorities took some steps to 
clarify the procedures and scope of these reviews.  WT/TPR/M/3 42/Add.1  
 
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  Question 3  
In regard to anti -trust laws, can China make public its guidelines on the concentrati ons of 
undertakings subject to reporting or provide standards/cases of judgments by MOFCOM?  
Reply: According to Article 21 of the China's  Anti-monopoly Law, concentration of 
undertakings meeting the application standards issued by the State Council shall s ubmit 
a notification to the State Councils anti -monopoly law enforcement agency in advance, 
and the undeclared ones shall not undertake  concentration. In order to make clear  the 
standards applicable to the concentration of undertakings, State Council Regul ation on 
the Notification Thresholds for Concentrations of Undertakings was promulgated in 
August 2008 (the State Council Decree No. 529). To clarify the application standards for 
the concentration of undertakings  in the financial sector, the Ministry of C ommerce, 
together with the People's  Bank of China, China Banking Regulatory Commission, China 
Securities Regulatory Commission and China Insurance Regulatory Commission, 
formulated The Measures on Calculating Turnover for the Concentration Application of 
the Undertakings in Financial Sector , which had been reviewed and approved by the 
Anti-Monopoly Committee of the State Council, published in July 2009, and began to 
implement after 30 days since its promulgation. In order to regulate the application of 
concentration of undertakings, the Ministry of Commerce issued  The Measures on the 
Notification of Concentrations of Undertakings (MOFCOM  Decree N o. 2009/11) in 
November 2009, which  began to be applied on January 1, 2010. All of the above 
documents have been p ublished on the official website of the Ministry of Commerce.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 46 , paragraph 3.1 
Customs procedures continue to be regulated by several pieces of legislation (Table 3.1). In 
addition, the General Administrati on of Customs of the People's Republic of China (GACC), the 
national authority responsible for customs administration in China, issues administrative customs 
ordinances and announcements to introduce and enforce changes in customs procedures. Between 
Janua ry 2014 and September 2015, the GACC issued 142 GACC announcements and 13  GACC 
decrees. The announcements focused, inter alia , on: paperless procedures, the harmonization of 
customs procedures throughout China, the imposition of anti -dumping duties, and ta riff 
classification. The decrees were related to: improving the transparency of customs operations 
through the disclosure of information; facilitating the return of imported goods; standardizing the 
registration of customs declaration entities; implementin g free trade agreements6; and rating 
enterprises according to their credit history.  
Question 4  
Many foreign exporters to China still experience difficulties due to inconsistent application of 
import laws and regional variations in customs procedures in Chi na. For instance, the HS code 
classification on identical products is sometimes different depending on local customs, which 
results in different customs valuation on identical products. What efforts have been made by the 
Chinese government to harmonize cus toms procedures across the country so far? Is there any 
plan to further strengthen the harmonization of customs procedures across all regions?  
Reply: In terms of valuation, China Customs has formulated  The Amendment to the 
Customs Measures for Assessing an d Determining Duty -Paid Value of Imported and 
Exported Goods  (hereafter referred to as Measures for Assessing Values) in accordance 
with the principles in The WTO Customs Valuation Agreement , and all ports have 
assessed the values strictly in accordance wi th The Measures for Assessing Values ; 
China Customs has established price information institutions around the country, mainly 
engaged in monitoring and analyzing the valuation law enforcement. In addition, the 
GACC organizes and holds training courses and seminars every year to train officials for 
and carry out researches and discussions on the valuation methods and valuation 
procedures. The above measures have effectively ensured that each port implement s 
customs valuation in strict  accordance with  the val uation principles and procedures 
stipulated in The WTO Customs Valuation Agreement . WT/TPR/M/3 42/Add.1  
 
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  In addition, since July 1, 2014, GACC has launched customs clearance integration reform in 
Beijing -Tianjin -Hebei, the Yangtze River Economic Belt, Pan Pearl River Delta fou r provinces, the 
Silk Road Economic Belt and Northeast region, and achieved full coverage of regional customs 
clearance reform in all 42 customs  nationwide , thus establish ing a regional customs clearance 
management mechanism with high standard and high eff iciency. Since June 1, 2016, the pilot 
national customs clearance integration reform has also been launched in Shanghai.  
Page 83 , Table 3.14  
R&D fund for industrial technologies  
Question 5  
Please explain why foreign applications for grants have been exclud ed from the Industrial 
Technology Development Programme since May 2014.  
Reply: Please  clarify which policy the R&D fund for industrial technologie s refer to 
specifically.  
Page 86 , paragraph 3.139  
Industrial associations are prohibited from organizing or f acilitating monopoly agreements among 
their members. The AML provides for the application of administrative penalties for concluding and 
implementing a monopoly agreement, including: issuing a cease -and-desist order to discontinue 
the violation; the confis cation of any unlawful gains; and, in addition, the imposition of a fine of 
between 1% and 10% of the sales achieved in the previous year. If the monopoly agreement has 
not yet been implemented, the fine may be for up to RMB 500,000. Mitigation or exemptio n from 
the penalty may be obtained in cases of voluntary collaboration with the investigating authority or 
by providing material evidence for the investigation.  
Question 6  
In the same vein, in the case of entrepreneurs manufacturing multiple products inclu ding antitrust 
law-infringing products, it would bring about unreasonable results in that the amount of fine could 
be excessively high. (e.g., Company A produces products from 1 to 100 and its worldwide total 
turnover is US $10 mil. If Company A violates AM L in product 1 of which the previous years 
worldwide sales are US $1 thousand, even if the Chinese competition authority applies the lowest 
fine rate of 1%, a fine would still be US $10 thousand, far exceeding the total turnover of 
product  1.) 
Question 7  
Does sales indicate the law -violating entrepreneurs turnover achieved in the previous year in China 
or its worldwide turnover? If it is worldwide turnover, what is the legal ground for including sales 
in foreign countries other than China in calculating a fin e? Foreign sales are highly unlikely to have 
an effect on China's  domestic market.  
Reply to Question s 6 & 7: In the monopoly agreements cases investigated and dealt with 
by the industrial and commercial authorities, the commodity scope and geographic 
scope , namely, the sales revenue of the monopoly agreement implementers in relevant 
market have been taken as their  sales  value . At present, the State Council Anti -
Monopoly Committee is working to develop relevant guidelines so as to further clarify 
the calcula tion of sales value and other issues.  
Page 90 , paragraph 3.158  
In 2013, 12 State Council departments issued a document (Guiding Opinions) to encourage 
companies operating in some key industries, such as agriculture, automobiles, cement, electrolytic 
alumin ium, electronic information, pharmaceuticals, rare earths, shipbuilding, and steel, to 
increase their capacity through mergers and acquisitions in order to improve their efficiency and 
global competitiveness. In some of these industries, the Guiding Opinio ns also set targets WT/TPR/M/3 42/Add.1  
 
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  regarding the degree of concentration to be reached by 2015. The legislation also encourages 
investors in these industries to go abroad.  
Question 8  
If the State Council departments actively encourage mergers and acquisitions and set tar gets 
regarding the degree of concentration for the purpose of improving efficiency and global 
competitiveness of specific industries, it would seem to be against the bedrock principle of the 
market economy mechanism from the perspective of competition law and policy and could further 
harm the level playing field of foreign companies in China. What is the China's  opinion in this 
regard?  
Reply: In order to strengthen the integration of resources, achieve rapid development, 
and enhance the competitiveness of e nterprises, China's  State Council departments have 
been actively promoting corporate mergers and acquisitions. Enterprise M&A is also an 
important way to resolve excess capacity, adjust and optimize the industrial structure, 
and improve the quality and eff iciency of development. It gives full play to the markets 
decisive role in resource allocation, with one of its main objectives being to promote 
market competition. Through mergers and acquisitions, one can improve the industry 
concentration, promote the c oordinated development of large, medium and small 
enterprises, and promote fair competition among enterprises of different ownership 
ensuring the fittest to survive so as to form a market pattern of reasonable structure, 
effective competition, and with sta ndards and order. According to the provisions in 
China's  Anti-Monopoly Law , the M&As that have met the application standards 
applicable to concentration of undertakings shall submit a notification of concentration 
in line with law. The Ministry of Commerce  will review these concentrations of 
undertakings on the basis of  The Anti -monopoly Law . All types of market players are 
treated equally during the review process. To sum up, relevant concentration of 
undertakings will not impair the fair competition envir onment for foreign enterprises in 
China.  
Page 94 , paragraph 3.173  
Imports subject to state trading administration comprise: grain (including wheat, maize, and rice), 
sugar, cotton, chemical fertilizers, tobacco, crude oil, and processed oil (Table 3.17). They can be 
imported (and exported) only by authorized enterprises, in accordance with Article 11 of the 
Foreign Trade Law. Tobacco is the only state -traded product that can be traded solely by state -
trading enterprises. Non -state trading enterprises that have obtained trading rights through 
registration may engage in the importation of part of the quota of products subject to tariff -rate 
quotas (grain, cotton, sugar, and certain chemical fertilizers), and of crude and processed oil. The 
NDRC (in the case o f grains and cotton) and MOFCOM (for the other products) issue on a yearly 
basis the criteria for an enterprise to acquire trading rights for these products, the volumes they 
can import and the allocation method. No information was provided on the quantiti es imported 
under state trading.  
Question 9  
China annually allocates 50% of its rice tariff quota to the state -owned trading enterprise and the 
other 50% to non -state owned trading enterprises. Please provide information on the allocation 
process and the l ist of allocated non -state owned trading enterprises.  
Reply: Please refer to The Implementing Rules for Tariff Rate Quotas  for the quotas 
allocation process. As for the enterprises list, the enterprises when applying for quotas 
have clearly stated that the y reject to be made known out of commercial consideration.  
Page 99 , paragraph 3.187  
The Government Procurement Law includes a "buy -domestic" (Article 10) provision, which was not 
modified by the 2014 amendment. As a result, the Government must procure dome stic goods, 
construction projects and services, with certain exceptions: i) when the goods, construction, or 
services required are unavailable in China or, if available, cannot be procured on reasonable WT/TPR/M/3 42/Add.1  
 
- 278 - 
 
  commercial terms; ii) when the goods, construction, a nd services are procured for use abroad; or 
iii) when otherwise provided for by other laws and administrative regulations. There are no criteria 
specified as to what constitutes domestic goods or provisions on local content. To observations 
made by Members  during its last review, China stated that in practice the Chinese government 
applies non -discriminatory and equal treatment in government procurement to products 
manufactured by domestic -funded and foreign -funded enterprises within the territory of China,  
and that it is common for the government to purchase foreign products, but that no statistics in 
this respect were available. In addition, article 8 of MOF Order No. 18 of 11 August 2004 states 
that the suppliers participating in bids to supply goods or s ervices must be domestic suppliers who 
supply domestic goods or services. Domestic -sourcing legal requirements would have to be 
modified for procurement above GPA thresholds for China to join the GPA Agreement.  
Question 10  
For government procurement, could  China please clarify its stance over the participation of foreign 
suppliers in the form of consortium?  
Reply: The participation of foreign enterprises in the Chinese government procurement 
directly or in joint venture form should be based on multilateral (bilateral) agreements 
featuring mutual benefit and equality.  
4. TRADE POLICIES AND BY SECTOR  
Page 137 , paragraph 4.83 
The CSRC is the supervisory authority for mutual funds and asset management companies. 
Overseas institutions are not permitted to direct ly conduct publicly offered securities investment 
fund business in China for the time being. Foreign suppliers may only provide these services in 
China if they establish joint ventures with local firms, where the foreign investor's share does not 
exceed 49 %. 
Question 11  
Regarding the establishment of banks and insurance companies in China, the related laws and 
regulations stipulate that entities should not have a record of serious violation of laws and 
regulations. On the other hand, in the case of the esta blishment of fund management companies 
in China, the principal related laws and regulations imply that the shareholder should not have a 
record of any type of administrative or criminal penalties, thus hindering shareholders with a 
record of minor violatio ns from launching businesses in China. Korea requests China's  finance 
authority, based on bilateral reciprocity and equality with its domestic industries (e.g., banking 
and insurance sectors), to relax regulations and requirements on the establishment of f und 
management companies in China. If the regulations and requirements cannot be relaxed, please 
provide the reason.  
Reply: Relaxing the regulations and requirements on the establishment of fund 
management companies in China is not considered for the time being. Fund 
management companies raise fund directly from the general individual investors, whose 
nature is different from that of banks and insurance companies (who mainly face the 
institutional investors), and also different from securities and futures c ompanies, so the 
regulatory requirements for them should be stricter. According to the Article 13 
Paragraph 3 of  China's  Portfolio Investment Fund Law , to establish fund management 
company for managing openly raised fund shall guarantee that no illegal act  for recent 
3 years. According to the Article 7 and Article 9 of The Portfolio Investment Fund Law , 
and The State Councils Reply to Relevant Questions on Managing Fund Management 
Companies Raising Fund Openly , the shareholders applying for the establishmen t of a 
fund management company and holding over 5% of the total shares should meet the 
following requirements: no illegal act subject to administrative penalty and criminal 
punishment within the last three years; no act damaging clients interests such as 
misappropriation of public funds; no illegal act under the investigation of supervision 
authority or during rectification period; good social reputation with no bad record in 
administrative organs including financial supervision, taxation, industrial and 
commercial departments, and other institutions including self -discipline management WT/TPR/M/3 42/Add.1  
 
- 279 - 
 
  and commercial banks in the recent 3 years. Overseas shareholders of joint venture fund 
management company shall meet the condition that no penalty from supervision 
instituti ons or judicial organs in recent 3 years. We welcome qualified overseas 
institutions to apply for the establishment of joint venture fund management companies 
in China.  
WT/TPR/G/342  
3. TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
Page 20 , paragrap h 3.30 
Active utilization of foreign investment has been an important part of China's basic state policy of 
opening up to the outside world over decades. Boom in OFDI represents a new important feature 
in China's development of an open economy in recent ye ars. Under the new circumstances, 
standing at a height of building a new system of open economy, the Chinese government will 
comprehensively promote the reform of FDI utilization and the management system of OFDI, 
maintain the stability, transparency and p redictability of foreign investment policies, liberalize the 
market access for investment in an orderly way and further improve the comprehensive effects of 
FDI utilization. Meanwhile, enterprises and individuals will be fundamentally recognized as the 
investors of OFDI, and permitted to conduct investment cooperation abroad by exerting their own 
strengths and assuming risks themselves, so as to enhance their capabilities of participating in the 
integration of the global value chains and operating internati onally.  
Question 12   
China has put emphasis on the stability, transparency and predictability of FDI -related policies, 
and real improvements have been made in many respects. However, there are still cases of some 
foreign investment companies sustaining lar ge-scale damages due to the unpredictability and non -
transparency of policies. In this regard, is any work underway or planned to establish regulations 
to improve the predictability of policies?  
Reply: China has always been committed to providing a stable,  transparent and 
predictable investment environment for foreign investment. In March 2015, the National 
People's  Congress  of China  revised The Legislati on Law, improving the legislative 
procedure, which is conducive to further enhancing  the standardization  and 
transparency of legislation.  
Page 20 , paragraph 3.33  
The financial sector has been further opened up. On 20 December 2014, the State Council revised 
the Regulations of the People's Republic of China on the Administration of Foreign -funded  Banks , 
which has introduced three opening -up measures since 1 January 2015. First, eliminating the 
minimum requirements for the working capital appropriated free of charge by the head offices of 
wholly foreign -funded banks and Chinese -foreign joint equity banks to th eir branches established 
within the border of China. Second, eliminating the requirement that foreign -funded banks (foreign 
financial institutions) need to have set up representative offices within the border of China for at 
least 2 years, before establish ing wholly foreign -funded banks or Chinese -foreign joint equity 
banks in China, and before foreign banks applying to establish branches in China. Thirdly, 
shortening the number of years required for foreign banks' operative institutions being in RMB 
busine ss from no less than 3 years to no less than 1 year, and eliminating the requirement for 
profit making for 2 consecutive years before the application.  
Question 13   
The regulations related to foreign -funded banks have been eased, but the entry barrier for f oreign -
funded insurance companies is still high. A foreign -funded insurance company is able to operate 
only in the province where the company has been established. Also, before a foreign -funded 
reinsurance company is established, the company must have a re presentative office for 2 years, 
and application for establishment takes 1 -2 years. Does China have any plan to lift restrictions for WT/TPR/M/3 42/Add.1  
 
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  foreign -funded insurance companies similar to the regulations for foreign -funded banks? If the 
restrictions for foreign -funded insurance companies cannot be lifted, please provide the reasons.  
Reply: China Insurance Regulatory Commission has strictly fulfill ed China's  WTO 
accession  commitments.  The Insurance Law , Regulations on the Administration of 
Foreign Funded Insurance C ompanies  and Insurance Company Management  and other 
relevant laws, administrative regulations and rules have provided for corresponding 
provisions on the establishment of foreign insurance companies. The above stipulat ions 
have enable d foreign insurance co mpanies to better understand and adapt to the 
Chinese market, and there is no consideration to change these regulations currently.  
Page 22 , paragraph 3.40 
In 2013, the Chinese government proposed the major cooperation initiative of jointly building Silk 
Road Economic Belt and 21st Century Maritime Silk Road. By the end of 2015, 68 countries have 
expressed their willingness to join. The initiative has become the common aspiration reflecting the 
interests and pursuits of all parties. In 2015, the Chinese gov ernment issued the Vision and 
Actions on Jointly Building Silk Road Economic Belt and 21st Century  Maritime Silk Road . China 
and the countries along the Belt and Road planned for the construction of six economic corridors 
that run through China -Mongolia -Russia, New Eurasian Land Bridge, China -Central Asia -West Asia, 
China -Pakistan, Bangladesh -China -India-Myanmar and China -Indochina Peninsula. The Asian 
Infrastructure Investment Bank and the Silk Road Fund have accelerated substantial project 
investment, and  provided strong funding support for Asia -Europe connectivity and industrial 
cooperation.  
Question 14   
Utilizing the Asian Infrastructure Investment Bank (AIIB) will be essential for participating in Belt -
and-Road Initiative projects. However, major regula tions of the AIIB have yet to be announced or 
finalized. When will the AIIB complete drafting and finalizing its overall guidelines, main 
regulations and project plans  
Reply:  Since the Chinese leader proposed the initiative of establishing Asian 
Infrastruc ture Investment Bank (AIIB) in October 2013, China has been adhering to the 
principle of open regionalism and openness and transparency, and welcom ed interested 
countries to join. At present, the number of AIIB members is 57.  
On December 25, 2015, The Asia  Infrastructure Investment Bank Agreement (AIIBA) met the 
required entry -into-force conditions (i.e. at least 10 signatories ratify the establishment and their 
initial subscri bed equitie s reach 50% of the total subscri bed equity ), and the AIIB was official ly 
established. The AIIBA has provided legal basis for the establishment of AIIB, and made clear  the 
core elements including purpose, membership, equity and the right to vote, business operations 
governance structure, decision -making mechanism, headquarter s location of AIIB and it is the 
"fundamental law" for the future operation of AIIB.  
On January 16, 2016, AIIB officially went into operation as a multilateral development agency. The 
board  of director  meeting held on June 24 reviewed and approved the firs t batch of four projects, 
with a total loan of US$509 million. On June 25 -26, the first annual meeting of the AIIB Council 
was held successfully in Beijing. Directors of member economi es fully appreciated the progress 
made since the opening of AIIB. AIIB h as made a good start as a new partner in the field of 
international development.  WT/TPR/M/3 42/Add.1  
 
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  31  MALAYSIA  
WT/TPR/S/342  
1. Paragraph 2.3: Participation in the World Trade Organization  
2.17. China became a WTO Member on 11 December 2001. China's trade policies have review ed 
five times. The last Review took place in July 2014. 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 of fer to the Committee in 
December 2014. The country is a participant in the Information Technology Agreement 
(ITA) and has agreed on the expansion of the ITA . It is an observer to the Plurilateral 
Agreement on Trade in Civil Aircraft. On 1 April 2014 China submitted its notification of Category A 
commitments under the Agreement on Trade Facilitation and on 4 September 2015 China ratified 
the Trade Facilitation Agreement.  
Question  
Appreciate China could share with Malaysia the reason for not being able to imp lement the ITA 
expansion commitments by the deadline of 1 July 2016 as agreed by Ministers in Nairobi?  
Is there any specific timeframe to do it so?  
Reply: According to the Chinese laws, China needs to submit the schedule of concessions 
for the ITA expansio n to the Standing Committee of the National People's Congress for 
deliberation and approval, before eliminating tariffs and submitting notifications to the 
WTO. China has already started the domestic approval process, and will implement the 
outcome of the ITA expansion negotiations soon after its completion.WT/TPR/M/3 42/Add.1  
 
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  32  MEXICO  
WT/TPR/G/342  
Pregunta 1. WT/TPR/G/342 • China; Informe de China; 1 INTRODUCCIÓN  
Página 4, párrafo 1.2: El Gobierno chino ha impulsado el proceso de apertura -que ha llegado a 
niveles sin preceden tes- y al mismo tiempo ha profundizado las reformas internas en todos sus 
aspectos. Tiene la determinación de dar forma a un nuevo tipo de economía abierta y ha acelerado 
el paso hacia la consecución de nuevas ventajas competitivas en el plano internaciona l. Ha 
promovido el desarrollo del comercio exterior basado en la innovación y ha facilitado un desarrollo 
estratégico equilibrado de las inversiones. Ha explorado activamente la posibilidad de establecer 
un nuevo sistema de normas y reglamentaciones para e l comercio y la inversión transfronterizos 
difundiendo con ese fin la sólida experiencia adquirida y las prácticas adoptadas en la Zona Franca 
Experimental de Shanghái, y ha establecido tres nuevas zonas francas experimentales en 
Guangdong, Tianjin y Fujia n. Al tiempo que sigue aplicando la Estrategia de Mundialización, China 
se ha centrado en la promoción de la iniciativa "Un Cinturón, una Ruta" y ha abierto las zonas 
interiores y fronterizas al mundo exterior con miras a establecer un nuevo modelo de aper tura 
general y modernizar el sistema y la capacidad de gobernanza de la economía abierta.  
México pregunta 1:  Con relación a la estrategia Estrategia de Mundialización  (Going Global , en 
inglés) ¿puede China explicar los objetivos principales, en particular,  en materia de inversión china 
en el extranjero? Adicionalmente ¿si la estrategia Going Global contempla un programa de 
integración o tratamiento especial para los países en desarrollo?  
Reply:  The p rincipal objectives of "Going Global" strategy  include  international economic 
cooperation pursuant to the law of international economic development and the 
fundamental principle of "enterprise -based, market -oriented, equality and mutual 
benefit", including outward direct investment, contract for overseas projects , technical 
cooperation and others. Chinese enterprises engaging in outward investment and 
cooperation, following the market characteristics, actual demands and construction 
conditions of the host countries and adhering to marketing principle of 
commercial ization operation, stably promote relevant investment and cooperation 
projects, improve industrial development level of the cooperative countries and realize 
mutual benefit and joint development.  At the same time, the implementation of "Going 
Global" strat egy will facilitate improving in -depth integration of regional markets, 
mutually complementing developmental advantages, enlarging international trade and 
cross -border investment, creating more market demands and job opportunities and 
injecting everlasting  new power for global economy.  
Plans for developing countries: Chinese government always pays high attention to 
economic and trade relation with developing countries.  While the developing countries 
are speeding up industrialization and urbanization process es and greatly demand for 
infrastructure construction at present, China possesses strong development strength in 
various fields.  On the basis of actual developmental demands of China and other 
developing countries, Chinese government actively encourages an d guides Chinese 
enterprises to undertake direct investment, project contracting, economic and trade 
cooperation zone construction and other businesses in the host countries, highlight 
advantage complementation and win -win cooperation, deepen mutually bene ficial 
cooperation between China and related developing countries and promote local 
economic and social development.  
Pregunta 2. WT/TPR/G/342 • China; Informe de China; 1 INTRODUCCIÓN  
Página 4, párrafo 1.3. El Gobierno chino ha seguido cultivando las relac iones económicas y 
comerciales con el exterior de todas las formas posibles. China insiste en que el sistema 
multilateral de comercio debe ser la vía principal de la liberalización del comercio y la inversión y 
apoya el desarrollo basado en la cooperación bilateral, regional, subregional y multilateral, cuyos 
objetivos se refuerzan mutuamente. La propuesta de China relativa al Programa de Trabajo 
Solidario, encaminada a promover las negociaciones comerciales multilaterales, ha permitido 
lograr un consenso e n las negociaciones multilaterales sobre distintos temas, incluidas las WT/TPR/M/3 42/Add.1  
 
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  cuestiones restantes de la Ronda de Doha. China ha seguido firmemente dedicada a promover la 
globalización económica, liberalizar y facilitar el comercio y la inversión, participar en la 
formulación de las normas internacionales, salvaguardar los intereses comunes y construir un 
mundo armonioso, y ha desempeñado un papel positivo para responder a los retos con que se 
enfrentan la economía y el comercio mundiales y para promover un desar rollo más equilibrado y 
sostenido en todo el mundo.  
México pregunta 2: Con relación al Programa de Trabajo Solidario ( Solidarity Work ) ¿China podría 
exponer brevemente los trabajos realizados con sus socios comerciales y los resultados alcanzados 
en los te mas relativos a la Agenda Doha?  
Reply : By formulating a work program and timetable, the Solidarity Work Program was 
proposed by China with the aim to setting priorities and the road map for negotiations in 
the two years after the MC10. This program will he lp members implement their 
commitments and advance the Doha Development Agenda.  China believes that this 
Program should include two sets of issues. The first set should contain agriculture, 
NAMA, services, rules and development, namely the remaining Doha i ssues. The other 
set should include issues which are relevant to business realities today and have 
significant bearing on trade growth like e -commerce and investment. With regard to the 
remaining issues of Doha, multilateral approach should be adopted to a ddress them in 
parallel and in line with Doha framework. With regard to the new issues, the multilateral 
approach should also be adopted.In the following work China will further improvethe 
work program and intensify our consultation with WTO members and le t more members 
understand and recognize the Solidarity Work Program.  
Preguntas 3 a 5. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.2 POLÍTICA 
MACROECONÓMICA  
Página 5, párrafo 2.8: D ada la complejidad del entorno interno y externo, el Gobierno chino ha 
mantenido su objetivo estratégico de estabilizar la política macroeconómica y enfocar la situación 
interna e internacional en forma global, y ha tomado la iniciativa para adaptarse a la  nueva 
normalidad e influir en ella. En lugar de adoptar medidas vigorosas de estímulo a corto plazo, ha 
seguido buscando nuevas soluciones para realizar ajustes macroeconómicos y ha aplicado 
oportunamente medidas específicas, basadas en los parámetros fij ados, para revitalizar la 
economía, reforzar los puntos débiles y fortalecer las instituciones.  
México pregunta 3:  ¿Puede China explicar el término "nueva normalidad "? 
Reply: At the end of 2014, Chinese government presented "new normal" concept to 
describe  economic development tendency. In summary, it means speed change, 
structure optimization and motivation conversion. In detail, economic growth slows 
down from high speed to medium -high speed, economic development mode shifts from 
scale -speed extensive gro wth to quality -efficiency intensive growth, economic structure 
goes through in -depth adjustment from quantity increment and capacity expansion to 
stock adjustment and quantity increment optimization, and motivation to economic 
development changes from trad itional growth poles to new growth poles.  
Under new normal, China's economic development faces growth decline, risk increase 
and other challenges, but also has new developmental opportunities. First, although 
economic growth slows down, actual increment i s considerable; second, economic 
growth is more smooth and steady and motivation to growth becomes more diverse; 
third, structure optimization is upgraded and the development prospect is more stable; 
fourth, as Chinese government streamlines administration  and delegates power to the 
lower levels, market vitality gets further released.  
México pregunta 4:  ¿Cuáles son las principales dificultades y problemas que señala confronta la 
economía de China? ¿Qué medidas fueron/están siendo instrumentadas para atender  a dichos 
problemas? ¿Son de medidas de carácter nacional o provincial? ¿Qué acciones preventivas se han 
tomado para asegurar que dichas medidas instrumentadas por diferentes órdenes de gobierno 
sean no únicamente compatibles con los compromisos sino su ap licación también cumpla con los WT/TPR/M/3 42/Add.1  
 
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  compromisos de ese país en el marco de su adhesión a la OMC y acuerdos comerciales 
internacionales de los que forma parte?  
Reply: Current major difficulties and challenges of China's economic development: from 
the perspectiv e of international situation, the overall situation of global economy is 
complex and severe. Global economic resurgence lags behind the anticipation, the 
growth of global trade and investment is sluggish and more unstable and uncertain 
factors occur. From the perspective of domestic situation of China, deep -rooted 
problems accumulated in a long term are emerging increasingly and the foundation for 
stability of China's economic operation is still insecure. External demands induced 
pulling force to economic g rowth is weakening, private investment and investment in 
manufacturing industry are feeble, financial industry and other fields face potential 
risks, some industries with severe overcapacity and some regions with simple economic 
structure suffer many confl icts and pressure of economic downturn is still large.  
In the face of these difficulties and challenges, Chinese government constantly 
innovates and perfects macro -control manner, rejects large -scale strong stimulation, 
vigorously promotes structural refo rm, focuses on cultivating new momentum, rebuilds 
and upgrades traditional momentum and makes efforts to promote stable and healthy 
economic development. The main measures include: to advance supply -side structural 
reform, for example, taking steel, coal a nd other key industries as breakthrough points 
to promote overcapacity reduction and supporting the enterprises to practice 
marketization -based merging and reorganization; to moderately enlarge gross demand, 
for example, encouraging and supporting e -commer ce and logistics enterprises to 
extend their business outlets into rural areas and improving consumption environment; 
to quicken cultivating new momentum and developing new economy, for example, 
starting a new turn of pilot comprehensive reform of service industry and practicing 
more competitive talent attraction system. All of these measures have been carried out 
at central and local government levels simultaneously.  
China always attaches great importance to the c ompliance  of Chinese trade policy with 
WTO  rules , and takes note of WTO members' concern towards Chinese trade policy. The 
Third Plenary Session of the 18th Central Committee of the CPC required all governments 
at different levels to take more proactive measures to regulate self -behavio urs, to 
handle affairs pursuant in accordance with current common practices of marketization 
and internationalization and to make efforts to establish fair, open and transparent 
market rules. In 2014, the General Office of the State Council issued Circular on Further  
Enhancing the Compliance of Trade Policy . The Circular expressly provides that all trade 
policies enacted by departments of the State Council, local governments at different 
levels and their subordinate departments should conform to WTO rules. It also 
underlines that all local governments and departments should attach great importance 
to the compliance of trade policies, constantly improve consciousness of international 
trade rules, seriously implement all requirements and strengthen international trade 
rules training for cadres. It is also an important measure for China to speed up 
establishing new open -type economic system and perfecting law -ruled business 
environment, which fully reflects that Chinese government is determined to deepen 
economic system re form and establish fair, open and transparent market rules.  
México pregunta 5:  ¿Cuáles son las principales dificultades y problemas que señala confronta la 
economía de China? ¿Qué medidas fueron/están siendo instrumentadas para atender a dichos 
problemas? ¿Son de medidas de carácter nacional o provincial? ¿Qué acciones preventivas se han 
tomado para asegurar que dichas medidas instrumentadas por diferentes órdenes de gobierno 
sean no únicamente compatibles con los compromisos sino su aplicación también cump la con los 
compromisos de ese país en el marco de su adhesión a la OMC y acuerdos comerciales 
internacionales de los que forma parte?  
Reply:  Please refer to the above reply.  WT/TPR/M/3 42/Add.1  
 
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  Preguntas 6 a 9. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.2 POLÍTICA 
MACROECONÓMICA; 2.2.2 Política fiscal  
Página 6, párrafo 2.11. El gasto fiscal siguió orientado hacia los sectores insuficientemente 
financiados que pudieran ayudar entre otras cosas a mejorar  los medios de subsistencia de la 
población y contribuir a la conservación de la energía, la reducción de emisiones y la protección del 
medio ambiente. En  2014, el Gobierno central invirtió 706.611 millones de yuan en seguridad 
social y empleo (un aumento del 8,5%); 293.126 millones de yuan en atención de la salud (un 
aumento del 11%); y 410.159 millones de yuan en educación (un aumento del 8,2%). Amplió el 
alcance de las reducciones estructurales de la fiscalidad, redujo las cargas por servicios en todos 
los sectores, promovió los proyectos piloto tendientes a reemplazar el impuesto sobre las 
actividades comerciales por el impuesto al valor añadido (IVA) y amplió el alcance de la política 
tributaria preferencial para las pequeñas empresas y microempresas.  
México pregunta 6:  ¿Qué medidas ha instrumentado el gobierno chino para vigilar que la política 
fiscal preferencial citada sea coherente con los compromisos de China, de manera específica con el 
Acuerdo sobre Subvenciones y Medidas Compensatorias?  
Reply:  The General Office of the State Council issued in June, 2014 Notice on Further 
Enhancing the Compliance of Trade Policies , requiring that all trade policies formulated 
by various departments of the State Council, local governments at all levels and their 
departments be in compliance with the Marrakesh Agreement Establishing the World 
Trade Organization  and its annexes and supplements, Protocol on the Accession of the 
People's Republic of China , and Report of the Working Party on the Accession of the 
People's Republic of China . The Ministry of Commerce of the People's Republic of China  
(hereinafter referred to as MOC), General Administration on Taxation of the People's 
Republic of China  (hereinafter referred to as GAT) and other departments of the State 
Council  have brought corresponding measures to evaluate the compliance of WTO 
regulations of preferential policies. Besides, such preferential policies as mentioned in 
the Government Policy Statement mainly focuss on social wealfare, which is not specfict 
to a pa rticular product, sector or region, therefore not within the jurisdiction of the SCM 
agreement. And China will conintue to notifiy the succeeding measures such as tax 
preferential treatment of SMEs as required by the SCM agreement .  
México pregunta 7:  ¿Puede China explicar la forma en que ha expandido las reducciones 
estructurales de impuestos?  
Reply: For example, China implementsthe reform replacing the business tax with VAT. 
Starting from May 1, 2016, China replaced the business tax with VAT across after 
expanding the pilots to cover the construction, real estate, finance and consumer service 
sectors. Besides, China adopts more preferential tax policies for small and micro -sized 
enterprises.  
México pregunta 8:  ¿Cuál es el esquema de recolección del IVA? ¿ Por qué ha realizado el cambio 
de un esquema de recolección del impuesto sobre las actividades comerciales ( "business tax ") a 
IVA"?  
Reply: The mode of collecting VAT is in compliance with general international pratce. 
The reform of replacing Business Tax with VAT aims to improve the VAT deduction chain 
and eliminate double taxation.  
México pregunta 9:  ¿Puede China explicar la forma en que las políticas preferenciales de impuestos 
para micros y pequeñas empresas funcionan? ¿Cuál es el alcance esperado por China al realizar 
esta modificación?  
Reply : 2009 -2014G/SCM/N/220/CHNG/SCM/N/253/CHNG/SCM/N/284/CHN273637  
Reply  For details on the Chinese Governments support, please refer to Program No. 27, 
36 and 37 of the Notification on Subsidies at central government level for 2009 -2014 
(G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN) . WT/TPR/M/3 42/Add.1  
 
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  Preguntas 10 a 12. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFO RMACIÓN DEL MODELO DE DESARROLLO  
Páginas 6 y 7, párrafo 2.14: Fiel al concepto de un desarrollo innovador, coordinado, respetuoso 
del medio ambiente, abierto e inclusivo, el Gobierno chino sigue asignando importancia al 
mejoramiento de la calidad y los ben eficios del desarrollo económico, y en el período objeto de 
examen redobló sus esfuerzos para estabilizar el crecimiento y adaptar las estructuras. Si bien ha 
permitido un aumento moderado de la demanda agregada, se ha centrado en el fortalecimiento de 
las reformas estructurales relacionadas con la oferta y en la tarea de eliminar el exceso de 
capacidad, reducir las existencias, reducir el apalancamiento, rebajar los costos y reforzar los 
puntos débiles. Al tiempo que profundizó las reformas en forma global , el Gobierno chino aplicó 
una estrategia de desarrollo impulsada por la innovación y se esforzó por aprovechar plenamente 
el potencial de crecimiento económico. Por un lado, permitió que el mercado cumpliera un papel 
decisivo en la asignación de recursos para poner en marcha un nuevo motor del desarrollo y, por 
otro, armonizó mejor su función para transformar y modernizar el motor clásico de la economía.  
México pregunta 10:  ¿Puede China explicar la forma en que funciona la reforma estructural de la 
oferta?  
Reply: At present, the measures taken in China to promote the supply -side structural 
reform mainly include addressing overcapacity with key industries (such as the iron & 
steel and coal) as the breakthroughs and supporting enterprises for merging and 
reorganization through the market -oriented mode; implementing real estate policies 
appropriate to local situations to reduce inventory, encouraging increase in the 
proportion of monetized resettlement during slum regeneration and increasing the 
supply of land for housing in hot cities; deleveraging actively and reliably, developing 
new financing modes, such as the investment & loan linkage; feasibly lowering the costs 
of real economy, and implementing and improving the tax & fee reduction policies; 
bolstering t he areas of weakness, implementing targeted poverty alleviation tasks, such 
as the anti -poverty and relocation, increasing investments in infrastructure, eco -
environment protection, industry transformation and upgrading, etc. and strengthening 
the preventi on and treatment of air pollution in key areas.  
México pregunta 11:  ¿Puede China explicar la forma en que ha completado las tareas de 
sobrecapacidad, reducción de inventario, desapalancamiento y reducción de costos?  
Reply: In terms of addressing overcapac ity, the State Council has comprehensively 
arranged tasks regarding the iron & steel and coal industries at the beginning of this 
year. The departments concerned have organized the clear -up work and special law 
enforcement activities and checked on the imp lementation of relevant policies. In 
provinces and cities concerned, the matching scheme has been put forward and actively 
implemented. In terms of reducing inventory, especially the real estate inventory, a 
series of policies and measures are being taken in China, such as promoting the 
construction of indemnificatory housing and the implementation of monetized 
resettlement. In terms of deleveraging, the positive fiscal policies and prudent monetary 
policies are followed. According to the distribution of de bt leverage in China, the 
allocation of debts could be optimized among the governments, residents and 
enterprises. Based on the features of different industries, debt maturity structure, phase 
in the business cycle and others, both support and regulation a re given to guarantee 
deleveraging steadily and orderly. In terms of lowering costs, effective schemes are 
made for the institutional transactions, unreasonable fees, burden of enterprises and 
others to feasibly lower the enterprise costs.  
México pregunta 12: El 4 de Diciembre con la Circular No. 23 (2015) de la Administración General 
de Aduanas se anunció el Plan de Ajuste Arancelario 2016. Dicha circular si bien informa sobre el 
incremento del arancel a las exportaciones de China de diversos productos sid erúrgicos, también 
se informa que diversas fracciones arancelarias del sector aluminio de China, en el que la 
comunidad internacional ha mostrado preocupación sobre la sobre capacidad en China. De manera 
específica la reducción de aranceles a las exportaci ones de aluminio, sector con sobre capacidad, 
tienen como objetivo específico?  WT/TPR/M/3 42/Add.1  
 
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  Reply:  The Guiding Opinions of the General Office of the State Council on Creating a 
Favorable Market Environment to Promote Structural Adjustment, Transformation and 
Increases in Benefits in the Non -Ferrous Metal Industry (Guo Ban Fa [2016] No.  42) 
requires that efforts be made to strengthen fair and impartial law enforcement in 
environmental protection, energy conservation, quality, safety and technology, to 
ensure the exit and  disposal of excess capacity according to laws and regulations, and 
guide the transfer and exit of uncompetitive capacity. The Chinese Government will 
work together with the industry to enhance overall consideration and coordination, 
strengthen supervision  and examination, and implement the various measures put 
forward by the Guiding Opinions.  
Preguntas 13 y 14. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA EC ONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.1  Aumento moderado de la demanda interna y eficacia de las reformas estructurales 
relacionadas con la oferta  
Página 7, párrafo 2.15: Se desplegaron esfuerzos para explotar el potencial de la demanda 
interna, aumentar moderadamente la demanda global, adaptar y modificar activamente la 
estructura de la demanda, promover una relación eficaz entre la oferta y la demanda y combinar la 
inversión y el consumo de manera orgánica para apoyar el desarrollo económ ico en forma 
constante y metódica por conducto de la demanda interna. El Gobierno chino sigue resuelto a 
reforzar el papel fundamental del consumo para estimular el desarrollo económico y permitir que 
la inversión desempeñe su papel primordial para estabil izar el crecimiento y el ajuste estructural.  
México pregunta 13:  ¿Cuál es la forma que se ha usado para promover la demanda interna?  
Reply: On the one hand, the efficient investment is vigorously expanded and full play is 
given to the critical role of inve stment in economic growth: 1) making great efforts in 
the streamlining of administration and the delegation of powers to lower levels and 
bringing forward opinions on revoking and delegating the authority to examine and 
approve to lower levels; 2) actively  promoting the implementation of a number of key 
projects, and making solid progress in the construction of rail transit, urban 
underground pipe gallery, broadband, etc.; and 3) encouraging and attracting more 
social capital.  
On the other hand, great effor ts are made in boosting household consumption: 
1) increasing effective supply, such as the high -quality new products and services for 
life through innovation; 2)  optimizing the consumption environment, comprehensively 
improving the level of standardization , promoting improvement in the quality of articles 
of consumption and safeguarding consumers rights; 3) increasing the supply of 
infrastructure in education, sanitation and cultural consumption; and 4) providing more 
entry port duty -free shops, unbarring t he channel for imported goods and expanding the 
import of popular goods for everyday consumption; and developing consumer credit 
service and promoting the pilot project of consumer finance company throughout the 
country.  
México pregunta 14:  ¿Qué sectores y  que medidas específica se están instrumentando para 
promover el consumo interno?  
Reply: 1) Striving hard to expand new consumption space. In combination with the 
construction of featured tourist towns and the rural tourism development, 100 region -
based to urism demonstration areas will be built. Opinions on promoting the 
development of general aviation will be given and the consumer market for general 
aviation will be developed. The departments involved in culture and cultural objects at 
different levels wi ll be encouraged to develop the cultural and creative industry and 
increase the supply of cultural and creative products. The development of fitness and 
leisure industries will be accelerated and the demands of residents for sports 
consumption will be boos ted and satisfied.  WT/TPR/M/3 42/Add.1  
 
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  2) Improving the quality of articles of consumption and the consumption environment. 
The integrative development of transportation and logistics will be promoted, the 
construction of urban central transport terminal will be supported and  the urban 
distribution function will be strengthened. Based on the national credit information 
sharing platform and 12358 price reporting platform, the dishonest behavio urs and price 
violations will be subject to more stringent punishment, in a bid to imp rove the 
consumer market.  
3) Stabilizing the traditional bulk commodity consumption. The development of market 
for renting and leasing housing will be accelerated to satisfy residents consumption 
demands to improve housing. Opinions on promoting the conven ient transactions 
regarding second -hand cars will be given to prosper the second -hand car market and 
create more space for the new car consumption. The development of new energy 
automobiles will be supported by accelerating the construction of charging fac ilities, etc.  
Preguntas 15 y 16. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3  AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.1  Aumento moderado de  la demanda interna y eficacia de las reformas estructurales 
relacionadas con la oferta  
Página 7, párrafo 2.17: El Gobierno chino ha acelerado las reformas del sistema de circulación del 
comercio interior. El 25 de agosto de  2015 se pusieron en marcha vari os proyectos piloto de 
amplio alcance sobre la reforma del sistema en nueve ciudades, entre ellas Shanghái y Nanjing, a 
fin de analizar la experiencia adquirida en la creación de un entorno empresarial bajo el imperio de 
la ley. En 2015, el Consejo de Esta do imprimió y publicó los Dictámenes  sobre la promoción de 
medidas para modernizar el comercio interior y la creación de un entorno empresarial bajo el 
imperio de la ley , y la Oficina General del Consejo de Estado dio a conocer los Dictámenes  sobre la 
prom oción de las interacciones en línea y fuera de línea y la aceleración de la innovación, el 
desarrollo, la transformación y la modernización del sistema de circulación del comercio, 
destinados a fomentar la transformación, la innovación y el desarrollo de d icho sistema. Se 
desplegaron esfuerzos para analizar el establecimiento de sistemas de rastreabilidad de productos 
importantes. Hasta la fecha, 13.500 empresas han establecido sistemas de rastreabilidad de la 
carne y las hortalizas que abarcan más de 200.0 00 unidades comerciales. Ha comenzado a 
formarse en todo el país una red de rastreabilidad que permite conectar las zonas urbanas y 
rurales.  
México pregunta 15:  Con relación a los sistemas de trazabilidad para la importación de productos, 
¿puede China cita r la legislación que los contiene y explica? Adicionalmente ¿puede China informar 
si los sistemas de trazabilidad de productos importados pueden ser consultados o compartidos con 
sus socios comerciales para cruzar la información que controlan?  
Reply: Accor ding to the Law on Food Safety  revised in 2015, those engaged in food 
production and operation shall establish the food safety traceability system in 
accordance with the Law to ensure that the food is traceable. The State encourages 
those engaged in food p roduction and operation to collect and keep the production and 
operation information through information -based means and to establish the food safety 
traceability system. According to the Opinions of the General Office of the State Council 
on Accelerating the Construction of Vital Product Traceability System , the State 
encourages the construction of traceability system for imported milk powder, wine, etc. 
in the pilot free trade zones. In the future, the scope of traceable imported products will 
be graduall y expanded in accordance with the national policies and laws. China is 
committed to establishing the sharing & exchanging mechanism for traceability data, 
actively exploring the government -society cooperation modes, encouraging the access 
of manufacturers,  associations and the third -party platforms to the industrial or regional 
traceability information management platforms, in a bid to guarantee the 
interconnection and interworking of all links. In addition, the unified public service 
window will be open to  the public and innovation will be made on the inquiry mode, so 
as to provide the public with one -stop inquiry service regarding the traceability 
information. Meanwhile, the government will gradually improve the traceability 
information system to guarantee  the security of enterprise information data.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 16:  ¿Qué medidas se están tomando para que las acciones tomadas en materia 
de seguridad alimentaria, no se conviertan en un obstáculo técnico al comercio? Las autoridades 
sanitarias de la Región  Administrativa Especial (o territorio aduanero distinto) de Hong Kong 
mantienen una frecuente comunicación con industrias, inversionistas extranjeros y 
representaciones de gobierno muy ágil? ¿En que difiere el proceso de consultas públicas de China 
contin ental con el de Hong Kong?  
Reply: According to the Law on Food Safety , all foods in the market shall be subject to 
the mandatory standards and legal requirements. All supervision measures are 
applicable to the domestic food and imported food. As for questi ons regarding 
implementation of the food -safety -related measures adopted by Hong Kong, China, you 
are advised to consult the delegates of Hong  Kong, China directly.  
Preguntas 17 y 18. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL  Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.3  Fortalecimiento de la protección de los derechos de propiedad intelectual  
Páginas 8 y 9, párrafo 2.23. El 1º de mayo de  2014 comenzó a aplicarse la Interpretación judicial 
relativa a la jurisdicción sobre asuntos relacionados con las marcas de fábrica o de comercio y a la 
aplicación de las leyes después de la aplicación de las decisiones por las que se modifica la Ley de 
Marcas de Fábrica o de Comercio,  promulgada por el Tribunal Supremo del Pueblo. El 1º de abril 
de 2016 comenzó a aplicarse la Interpretación del Tribunal Supremo del Pueblo sobre varias 
cuestiones relacionadas con la aplicación de la ley en litigios motivados por la infracción de 
patentes (II) . El Gobierno chino modificó el Reglamento de aplicación de la Ley de Marcas de 
Fábrica o de Comercio  y se propone hacer lo mismo con la Ley de Derecho de Autor  y la Ley de 
Patentes. Ha ejecutado programas especiales para reprimir las infracciones y la piratería en línea; 
puso en marcha la iniciativa QingFeng para preservar en el exterior la imagen de los productos 
fabricados en China, reforzó la gestión de las fuentes de producción, combinó las medidas 
adoptadas a nivel in terno con la cooperación internacional en las etapas de importación y 
exportación y mejoró la calidad de los productos fabricados en China para la exportación.  
México pregunta 17:  Con relación a la iniciativa QinFeng ¿China puede informar la legislación qu e 
lo contempla, requisitos que debe cumplir y resultados que ha obtenido a partir de su 
implementación?  
Reply: In order to take a strong stance against the export -oriented infringing and fake 
commodities, maintain the normal import -export trade order and p romote the sound 
development of foreign trade, the leading group decided to take measures during 2015 
~ 2017 for the main commodities and fields exported to the African countries, Latin 
American countries and those along the the Belt and Road, including co nducting special 
phased treatment orderly; strengthening the supervision of the sources of production, 
circulation channels and import -export links; establishing a sound coordination 
mechanism for cross -border law enforcement; making innovation on the law 
enforcement and supervision modes; severely investigating and treating the cross -
border manufacturing and selling of infringing and fake commodities; exposing 
enterprises in violation of laws and regulations and typical cases; further enhancing the 
enterpr ises entity responsibility for product quality and integrity and law -abiding 
consciousness; actively expanding proper channels for product marketing; and 
squeezing the survival space for infringing and fake commodities. The QingFeng action 
will help to est ablish a sound law enforcement and supervision mechanism for exported 
commodities, effectively check on the export -oriented infringing and fake commodities, 
further improve the quality of exported commodities and effectively maintain the good 
image of prod ucts Made in China.  
Preliminary achievements have been made since the QingFeng action has been 
implemented for more than one year. The Ministry of Commerce of the People's Republic 
of China  has invited 160 business institutions functioning abroad to streng then publicity 
and coordination, in a bid to guide the China -invested enterprises and oversea -Chinese 
merchants to establish the brand image. The General Administration of Customs of the 
People's Republic of China  takes a strong stance against the infringe ment, fake 
commodities and illegal activities during the import and export, discovering and seizing WT/TPR/M/3 42/Add.1  
 
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  over 20,000 batches of infringing commodities (to nearly 70 million articles). The 
General Administration of Quality Supervision, Inspection and Quarantine of the 
People's Republic of China  makes great efforts in the quality supervision of imported 
and exported products, takes measures to improve the quality of products exported to 
African countries, and discovered and seized over 5,000 batches of substandard  
commodities to African countries. According to the inspection and quarantine system, 
over 100 illegal cases regarding the imported and exported commodities were identified, 
covering 180,000 commodities, with a value of about RMB 300 million. The monitorin g 
network for cracking down on fake products and safeguarding legal rights regarding 
exported commodities from China has been preliminarily established. According to 
incomplete statistics, the General Administration of Customs of the People's Republic of 
China discovered and seized 4,529 batches of infringing commodities during the 
QingFeng action in the first half of 2016, covering 9,430,000 commodities, realizing the 
online exchange and processing of electronic certificate data information with New 
Zealan d, Australia, etc. and signing the electronic certificate cooperation agreement 
with 10 countries. China Chamber of International Commerce gives guidance to 
17 representative offices stationed abroad on the publicity, information sharing, 
education, etc. o f QingFeng action, in a bid to enhance the intellectual property right 
consciousness and professional ability of those sent overseas.  
México pregunta 18:  ¿Este mecanismo se encuentra sistematizado, se puede consultar o compartir 
con sus socios comerciales?  ¿la iniciativa QinFeng se complementa con un sistema de trazabilidad 
de productos exportados de origen chino?  
Reply: QingFeng Action is aimed at stringently craking down the illegal conducts of 
exporting IPR -infringed and counterfeiting commodies, maintai ning normal import and 
export trade orders, and promoting the healthy deveploment of foreign trade. Qing Feng 
Action commenced from 2015 till 2017. According to incomplete statistics, in the first 
half of 2016, Chinese Customs searched out 4,529 batches of  IPR infringing 
commodities during QingFeng Action.  
Pregunta 19. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESAR ROLLO; 2.3.4 Un 
desarrollo impulsado por la innovación  
Página 9, párrafo 2.26: El Gobierno chino ha alentado la reforma global de los sistemas científicos 
y tecnológicos, ha seguido mejorando la capacidad de innovación en forma metódica y ha 
establecido u n conjunto de nuevos centros tecnológicos, institutos de investigación y laboratorios 
de empresas reconocidos por el Estado. Ha aplicado activamente las orientaciones  sobre la 
iniciativa Internet Plus y ha determinado 11 esferas prioritarias, a saber: el f omento de la 
actividad empresarial y la innovación en el marco de esa iniciativa, la colaboración en el sector 
manufacturero, la agricultura moderna, soluciones inteligentes para la conservación de energía, la 
financiación inclusiva, servicios que benefici an a la población, una logística eficiente, el comercio 
electrónico, medios de transporte convenientes, la ecología y la inteligencia artificial.  
México pregunta 19:  La iniciativa Internet Plus ¿se pueden explicar los objetivos y resultados 
esperados en ma teria de modernización de la agricultura? ¿empresas extranjeras con inversiones 
en China pueden ser sujetos de los beneficios/objetivos de la iniciativa para mejorar su 
participación en el mercado chino? ¿qué niveles de gobierno alcanza la iniciativa?  
Reply: Objectives and expectations of the Internet Plus actions for modern agriculture: 
By 2018, integration and development between the Internet and agriculture, rural areas 
and farmers will obtain remarkable achievements, with significant progress in 
agricul tural online operation and digitization, efficient management and convenient 
service, further narrowing urban and rural "digital divide". IOT demonstration bases of 
field planting, facility horticulture, livestock and poultry breeding, and aquaculture will  
be established; the key technologies and complete sets of equipment for agricultural IOT 
will be under control, and a number of cost -effective agricultural IOT application modes 
will be promoted; E -commerce level of agricultural products, agricultural mea ns of 
production and leisure agriculture will be significantly improved. Agricultural 
management will be more efficient and transparent. Agricultural resource management, WT/TPR/M/3 42/Add.1  
 
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  emergency command, administrative examination and approval and comprehensive law 
enforcement will be online and processed through data; national and provincial 
agricultural and rural large data centers will be built for basic realization of refined and 
scientific decision -making in agricultural industry management; public service platform 
of quality and safety traceability of agricultural and sideline products will be initially 
built to achieve full traceability of agricultural and sideline products, so as to ensure that 
every bite of food we eat is safe. Agricultural services will be more convenient and 
inclusive. Construction of information service stations at the village level will cover more 
than half of all administrative villages throughout the country. The Ministry of 
Agriculture encourages foreign enterprises in China to actively par ticipate in the 
Internet Plus modern agricultural actions in accordance with the relevant provisions of 
China.  
China has absorbed a large number of foreign investment in the Internet as well as 
agriculture. China accelerates the promotion of key Internet Plus actions in the field of 
modern agriculture, which will help to stimulate innovation vitality and cultivate new 
industry, expands the use of the Internet to enhance agricultural production, operation, 
management and service level, cultivates a group of  networked, intelligent and refined 
modern ecological agriculture modes featured with "Planting, Breeding and Processing", 
speeds up the improvement of the new agricultural production and management system, 
creates diversified agricultural Internet managem ent service modes,  significantly 
promotes the level of agricultural modernization, and others. All these will bring new 
business opportunities for foreign investment enterprises.  
Internet Plus modern agricultural actions are identified as one of the 11 pr iorities in the 
Guiding Opinions of the State Council Concerning Vigorously Moving Forward the 
Internet Plus Actions  (Guo Fa [2015] No. 40), and receive high attention from the State 
Council, involving the Ministry of Agriculture, the National Development and Reform 
Commission, the Ministry of Science and Technology, the Ministry of Commerce, the 
General Administration of Quality Supervision, Inspection and Quarantine, the China 
Food and Drug Administration and the State Forestry Administration.  
Preguntas 20 a 24. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.5  Fomento de la transformación y la moderniza ción de las ramas de producción 
tradicionales y conservación de la energía y reducción de las emisiones  
Página 10, párrafo 2.28: El Gobierno chino presta atención tanto al fomento de las industrias 
emergentes como a la transformación y la modernización de las ramas de producción 
tradicionales. Se pusieron en marcha el programa "Fabricado en China 2025" y el plan de acción 
trienal para reforzar la competitividad básica de los sectores manufactureros, y se promovieron 
varios proyectos clave con miras a alcanz ar ese objetivo y fomentar la revitalización industrial y la 
renovación tecnológica. Las ramas de producción tradicionales han logrado transformarse y 
desarrollarse avanzando en las cadenas de valor industriales y optimizando la estructura de 
productos. La  proporción de empresas de alta tecnología se ha incrementado sobre una base 
interanual y el margen de crecimiento anual no ha dejado de aumentar.  
México pregunta 20:  ¿Qué incentivos se tienen considerados instrumentar para alcanzar los planes 
del citado p lan? ¿Son centrales o provinciales? ¿Qué ministerios -instituciones juegan un papel 
determinante en el diseño e instrumentación?  
Reply: The Three -Year Action Plan to enhance the core competitiveness of 
manufacturing is led by the National Development and Re form Commission and 
implemented by related local and corporate organizations. Main measures of Made in 
China 2025  include the following aspects: comprehensively enhance basic industrial 
capacity, accelerate the development of new manufacturing, enhance qua lity and brand 
construction, reduce the costs of the real economy enterprises, further promote the 
streamlining of administration and the delegation of powers to lower levels to reduce 
institutional transaction cost; cleanup unreasonable enterprise -related  charges, reduce 
energy and logistics costs of enterprises and others.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 21:  ¿Cuáles son los principales puntos del programa Made in China 2025?  
Reply: The key points of Made in China 2025 include transformation from a big 
manufacturing coun try to a powerful manufacturing country; in -depth integration of 
information technology and industrialization to lead and promote the development of 
the whole manufacturing industry; Three Steps strategies to a manufacturing 
powerhouse, in which each step may take about ten years.  
México pregunta 22:  ¿Cuáles son los principales puntos del Plan de Acción de Tres Años para 
Mejorar la Competitividad de las Industrias Manufactureras?  
Reply: Key points of the Three -Year Action Plan to enhance the core competiti veness of 
manufacturing industry lie in giving full play to the decisive role of the market, bettering 
the role of government,  so as to remarkably enhance the core competitiveness of these 
areas, improve the manufacturing quality of the fundamental materia ls, technologies 
and components, and raise the overall quality of the manufacturing industry.  
México pregunta 23:  ¿Cuáles es la proporción de las Industrias de Alta Tecnología?  
Reply: Added value of high -tech industry accounted for 12.1% of that of high -tech 
industries above a designated scale from January to May, 2016.  
México pregunta 24:  ¿Cuáles son los objetivos que se esperan alcanzar y cuándo esperan 
alcanzarlos?  
Reply: The objective is to remarkably enhance the core competitiveness of these areas, 
improve the manufacturing quality of the fundamental materials, technologies and 
components, and raise the overall quality of the manufacturing industry.  
Preguntas 25 a 28 WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN  DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.5  Fomento de la transformación y la modernización de las ramas de producción 
tradicionales y conservación de la energía y reducción de las emisiones  
Página 10, párrafo 2.29: El Gobierno chino otorga gran importancia a la conservación de los 
recursos, la protección del medio ambiente y la contención del cambio climático y ha promovido de 
manera decidida la conservación de la energía, la reduc ción de las emisiones y la prevención y el 
control de la contaminación eliminando el exceso de capacidad productiva y la capacidad de 
producción obsoleta en los sectores del acero, el cemento, el aluminio electrolítico y otros de gran 
consumo de energía y elevada producción de emisiones. Esas tareas son un componente 
importante de los esfuerzos de China por adaptar su estructura industrial y transformar su modelo 
de desarrollo económico. Se ha establecido un régimen de control del consumo total de carbón en  
ciudades clave para reducir la contaminación del aire y se ha aplicado de manera exhaustiva el 
plan de acción para la modernización y transformación de las centrales eléctricas alimentadas con 
carbón a fin de conservar la energía y reducir las emisiones. En siete lugares -Beijing, Tianjin, 
Shanghái, Chongqing, Guangdong, Hubei y Shenzhen - se ejecutan proyectos piloto de comercio de 
derechos de emisión de dióxido de carbono.  
México pregunta 25:  ¿De qué forma se controla que los préstamos de la banca de desa rrollo 
recibidos por las citadas industrias sean efectivamente usados para modernización y no en 
expansión de capacidad de producción?  
Reply: The Chinese Government encourages banking financial institutions to, based on 
the market -oriented and commerciali zed principle sand in light of the requirement of the 
environment and industrial transformation and upgrading, support industries with 
excessive capacity to cut overcapacity and excess inventory, deleverage, reduce costs 
and strengthen points of weakness. The government respects and safeguards the status 
of banking financial institutions as market players, and supports their allocation of 
credit resources in a market -oriented manner.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 26:  ¿Cuál es la forma proactiva que el gobierno chino ha llevado a cabo para 
disolver el exceso y la capacidad de producción obsoleta en acero, cemento, aluminio y otras 
industrias alto consumo de energía y de emisiones?  
Reply: For steel, the Opinions of the State Council on Reducing Excess Capacity in the 
Steel  Industry to Achieve Development by Solving the Difficulties (Guo Fa [2016] No. 6) 
requires that the market should serve as a check, the role of enterprises as the major 
actors be brought into full play, and efforts be made to ensure the exit of steel capa city 
that cannot meet the requirements according to laws and regulations, through strict 
implementation of laws, regulations and industrial policies on environmental protection, 
energy consumption, quality, safety and technology. The equipment of obsolete capacity 
must be dismantled.  Law enforcement and supervision should be strictly implemented, 
the blacklist of bad records be timely released for better information disclosure and  
publics supervision. Support should be provided to the hiving -off and reemplo yment of 
personnel as a result of local endeavor to reduce overcapacity.  
For electrolytic aluminium, the Guiding Opinions of the General Office of the State 
Council on Creating a Favorable Market Environment to Promote Structural Adjustment, 
Transformation  and Increases in Benefits in the Non -Ferrous Metal Industry (Guo Ban Fa 
[2016] No.  42) requires that efforts be made to strengthen fair and impartial law 
enforcement in environmental protection, energy conservation, quality, safety and 
technology, to ensu re the exit and disposal of excess capacity according to laws and 
regulations, and guide the transfer and exit of uncompetitive capacity  
For cement and other industries,  the Guiding Opinions of the State Council on Promoting 
Steady Growth, Structural Adjus tments and Increased Efficiency of the Building 
Materials Industry (Guo Ban Fa [2016] No. 34) put forward specific requirements 
thatexpansion of production capacity shall be strictly prohibited and  outdated 
production capacity be closed down. Specifically,  the requirements include severe 
measures such as strictly prohibiting the record -filing of new production capacity 
(cement and other investment projects are not subject to examination and approval, but 
only to record -filing);  the projects failing to engag e in production capacity displacement 
according to stipulations thus resulting in new production capacity shall be seriously 
investigated and penalized, and departments for land resource management, 
environmental protection and quality inspection shall not  support these projects; where 
a project violates regulations, its application for production permit shall not be 
accepted, and, incasethat its application has been accepted, the permit shall not be 
granted.  
México pregunta 27:  ¿Cuál es la forma en que se ha ajustado la estructura industrial?  
Reply: On the one hand, the structural reform of supply -side will be promoted. 
Overcapacity in steel, coal and other key industries will be addressed first to support 
market -oriented enterprise merger and reorganizatio n; destocking in real estate 
industry will be promoted, with higher monetized resettlement ratios in shantytowns 
transformation encouraged to increase land supply of housing in hot cities; deleveraging 
will be implemented in an active and steady way, and l inkage between investment and 
loan and other new financing ways will be developed; cost of the real economy will be 
effectively reduced, and tax and fee reduction policies will be implemented and 
improved; paces for bolstering areas of weakness will be acc elerated to implement 
targeted poverty - alleviation tasks include relocation, and investment in the central and 
western regions will be increased for infrastructure, ecological and environmental 
protection, industrial transformation and upgrading, and prev ention and control of 
atmospheric pollution in key areas will be strengthened.  
On the other hand, new momentum will be cultivated quickly for developing new economy. It is 
planned to vigorously implement the innovation - driven development strategy, suppor t enterprise 
R&D innovation, and further promote the Internet Plus actions to improve the development system 
of modern service industry, and start a new round of comprehensive reform pilots of the service 
industry; accelerate the construction of incentive mechanisms to encourage innovation, and 
implement a more competitive talent attraction system.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 28:  De acuerdo con lo mencionado en este párrafo sobre la gran importancia que 
le da China a proteger el medio ambiente, conservar los recursos y atender el cambio climático, 
¿podría China compartir las medidas, en concreto, que se están implementando para atender estos 
temas?  
Reply: First, implement the dual control system of energy and water resources, and total 
amount and intensity of construct ion land, so as to strengthen the management of 
obligatory targets and control the intensity to comprehensively improve the efficiency of 
resource use.  
Second, optimize industrial structure.  Strict ly control new projects in high fuel 
consumption, high emi ssion and overcapacity industries, and speed up the elimination of 
backward production capacity.  
Third, implement key energy -saving projects, including energy -saving and 
environmental protection improvement of coal -fired boilers, motor system energy 
savin g, energy system optimization, waste heat and pressure utilization, and pilot 
energy -saving technology industrialization projects , and  improve enterprises' efficiency 
of energy utilization.  
Fourth, intensify the energy management in major energy consumers,  and implement an 
energy use reporting system.  
Fifth,  formulate cyclic development leading action plans, and implement key projects 
like cyclic reforms of industrial parks.  
Sixth, strengthen water conservation, carry out nationwide water -saving initiatives , 
implement the most stringent water management system, and greatly improve the 
water use efficiency.  
Seventh, highlight the role  that market mechanism plays in controlling greenhouse gas 
emissions. In November 2011, China started pilot carbon emission per mit trading in 
Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong and Shenzhen.  Now the pilot 
project goes well, and it is planned to carry out carbon emission permit trading across 
the country in 20 17. 
Pregunta 29. WT/TPR/G/342 • China; Informe de Ch ina; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.5  Fomento de la transformación y la modernización de las ramas de producción 
tradicionale s y conservación de la energía y reducción de las emisiones  
Página 10, párrafo 2.30. Se han obtenido importantes logros en materia de conservación de la 
energía y reducción de las emisiones, y la estructura del consumo de energía ha experimentado 
profundos  cambios. En los últimos tres años, China ha eliminado capacidad de producción obsoleta 
equivalente a más de 90 millones de toneladas de hierro y acero, 230 millones de toneladas de 
cemento, más de 76  millones de unidades de peso de vidrio plano pulido y m ás de 1 millón de 
toneladas de aluminio electrolítico. El consumo de energía por cada 10.000 yuan del PIB disminuyó 
un 13,5%. En 2015, el consumo de energía y las emisiones de dióxido de carbono por unidad del 
PIB se redujeron un 5,6% y más del 6,6% respec tivamente. Las emisiones de dióxido de azufre, la 
demanda química de oxígeno y las emisiones de nitrógeno amoniacal y óxidos de nitrógeno 
disminuyeron un 5,8%, 3,1%, 3,6% y 10,9%, respectivamente. La proporción del consumo de 
carbón en el consumo total de energía en 2015 se redujo 4,5 puntos porcentuales con respecto a 
2012, en tanto que la proporción de energía limpia, como la energía hidráulica, eólica y nuclear y 
el consumo de gas natural, aumentó 3,4 puntos porcentuales.  
México pregunta 29:  De acuerdo a  los porcentajes señalados en este párrafo, ¿cuáles son los 
porcentajes de reducción de consumo a los que se pretende llegar?  
Reply:  China's energy saving and emission reduction goal during the 12th Five -Year Plan 
was to reduce the energy consumption inten sity by 16%, and to reduce  chemical oxygen WT/TPR/M/3 42/Add.1  
 
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  demand, sulfur dioxide, ammonia nitrogen and nitrogen oxides by 8%, 8%, 10% and 
10% respective  by the end of  2015 compared to 2010.  
Pregunta 30. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO Y 
COMERC IAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 2.3 AJUSTE DE LA 
ESTRUCTURA ECONÓMICA Y TRANSFORMACIÓN DEL MODELO DE DESARROLLO; 
2.3.6  Consolidación y fortalecimiento de la base de la agricultura  
Páginas 10 y 11, párrafo 2.32: Desde el último examen, el G obierno chino ha seguido aumentando 
las inversiones en la agricultura y las zonas rurales. Se adoptaron medidas para alcanzar los 
objetivos siguientes: acelerar la innovación y el desarrollo de la tecnología agrícola; promover 
vigorosamente la mecanización  de la agricultura; intensificar la construcción de obras de 
infraestructura, con inclusión de sistemas de riego, redes de distribución de electricidad, 
carreteras, gas natural y viviendas; reformar y mejorar la política de apoyo a la agricultura, lo cual 
incluye integrar, en una sola subvención de apoyo y protección de la agricultura, la subvención 
para la compra de maquinaria y herramientas agrícolas, la subvención para promover la utilización 
de cepas y semillas de calidad superior y la subvención direct a a los agricultores, y adaptar el 
objetivo de esa política para reforzar sobre todo la protección de la fertilidad de las tierras 
cultivables; continuar las reformas, ejecutar proyectos piloto de préstamos hipotecarios basados 
en los derechos de explotaci ón de la tierra por contrata y los derechos de propiedad sobre las 
viviendas de los agricultores, ejecutar proyectos piloto sobre la reforma de los derechos y 
funciones de las entidades colectivas rurales en lo que respecta a sus activos y su régimen de 
participación; y poner en marcha proyectos de importancia crucial para aliviar la pobreza. El 
Gobierno chino también ha reforzado la coordinación del desarrollo urbano y rural como parte de 
las actividades de urbanización y ha procedido a urbanizar metódicam ente a la población rural 
migrante.  
México pregunta 30:  Con relación a las políticas de apoyo a la agricultura ¿puede China detallar los 
tipos de subsidios que otorga, requisitos para otorgarlos y número estimado de subsidios 
otorgados desde su implementac ión? ¿puede informar el procedimiento que sigue China para 
otorgarlos, si pueden participar empresas extranjeras con inversión en el sector agrícola dentro de 
China?  
Reply : China will provide information on relevant subsidy policies in the DS notification.  
Foreign -invested enterprises may also be granted with subsidies if the field and sector 
they invest in meet the requirements for applying for the subsidies.  
Preguntas 31 y 32. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIEN TACIÓN DE LA POLÍTICA MACROECONÓMICA; 
2.4 PROFUNDIZACIÓN CONTINUA DE LA REFORMA  
Página 11, párrafo 2.34: La reforma es una política estatal básica del Gobierno chino a largo plazo. 
Desde el último examen, China siguió dando prioridad a la reforma del sist ema económico, dio 
ímpetu a las reformas en otros ámbitos por medio de la colaboración y formó un equipo de trabajo 
conjunto para llevarlas a cabo. Los ejes centrales de la reforma del sistema económico son hacer 
posible la gestión adecuada de la relación entre el Estado y el mercado, permitir que el mercado 
cumpla un papel decisivo en la asignación de recursos y conseguir que el Estado desempeñe mejor 
su función. Desde el último examen se ha avanzado de forma cabal en varios aspectos concretos 
de la reform a. 
México pregunta 31:  ¿Puede detallar la influencia que el gobierno central chino tiene en su 
mercado y los mecanismos políticos y legales que ha implementado para garantizar la libertad de 
competencia de socios comerciales con inversiones en China? ¿podr ía listar los trabajos de reforma 
económica que ha desarrollado en los últimos 2 años y destacar sus principales resultados?  
Reply: In recent two years, China has actively promoted a new round of high -level 
opening up, further reforming the foreign investm ent management system, constantly 
improving the investment environment and facilitation.  The new edition of Catalogue for 
the Guidance of Foreign Investment Industries  released in 2015, significantly reduces 
access restrictions, especially in service and g eneral manufacturing sectors, reducing 
restriction items by 50% and stock -proportion restricted items by 40%.  The new WT/TPR/M/3 42/Add.1  
 
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  government vigorously promotes streamlining administration and delegating power to 
the lower level,  combination of decentralization and go vernance, and optimization of 
service reform ; and the State Council has canceled or delegated over 1/3 administrative 
approval matters or power, streamlining business registration pre -approval by 85%, 
reducing qualification accreditation matters by 44%, an d canceling all non -
administrative licensing approvals.  A foreign investment management system with 
general registration but limited approval, has been implemented widely, and more than 
95% foreign investment projects are registered for administration.  
México pregunta 32:  ¿Diversas políticas de industrias señalan que se promoverán las fusiones y 
adquisiciones, así como la consolidación de empresas? ¿En qué consisten dichas medidas?  
Reply: Merging,  restructuring  and consolidation are condcuted by the makret players on 
their own decisions. .   
Preguntas 33 y 34. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 
2.4 PROFUNDIZACIÓN CONTINUA DE LA REFORMA; 2.4.1 Fomento continuo de la 
reforma de lo s procedimientos administrativos de examen y aprobación  
Página 12, párrafo 2.38: El 2 de octubre de  2015, el Consejo de Estado dio a conocer los 
Dictámenes del Consejo de Estado sobre la aplicación de un sistema de lista negativa para el 
acceso a los merca dos. Según esos Dictámenes, se aplicaría a título experimental en algunas 
regiones un sistema de lista negativa, que se adoptaría oficialmente en todo el país a partir 
de 2018. El documento dispone que los departamentos pertinentes formularán sin dilación una 
lista negativa para la inversión extranjera. El sistema de lista negativa para el acceso a los 
mercados se refiere a una serie de disposiciones institucionales en las que el Consejo de Estado 
enumera claramente los sectores, ámbitos y actividades empre sariales respecto de los cuales está 
prohibido o restringido el acceso al mercado en el territorio de la República Popular China; y las 
autoridades de varios niveles deben adoptar las correspondientes medidas de gestión de acuerdo 
con la legislación vigent e. Podrá participar en los sectores, ámbitos y actividades empresariales no 
incluidos en la lista negativa todo tipo de operadores del mercado, en condiciones de igualdad y de 
acuerdo con la legislación vigente. La incorporación del método de gestión basad o en una lista 
negativa en la reglamentación de los mercados internos denota la determinación del Gobierno 
chino de profundizar las reformas y establecer normas equitativas y transparentes y contribuirá a 
definir con más claridad los límites de las funcion es gubernamentales. En marzo de  2016, la 
Comisión de Desarrollo Nacional y Reforma y el Ministerio de Comercio publicaron el Proyecto de 
lista negativa para el acceso a los mercados  (que se utilizaría en las regiones piloto), que se ha 
aplicado a título ex perimental en Tianjin, Shanghái, Fujian y Guangdong.  
México pregunta 33:  Con relación a la Negative List System for Market Access ¿puede señalar los 
ordenamientos legales que la prevén y el sistema de consulta en línea que tiene disponible para 
los socios de China? ¿Puede detallar los avances del sistema piloto?  
Reply: The National Development and Reform Commission (hereinafter referred to as 
NDRC) and the MOC published Market Access Negative List (pilot use)  available for 
search online ( http://www.fdi.gov.cn/1800000121_23_72956_0_7.html ). 
México pregunta 34:  ¿Puede aclarar de qué forma la Negative List System for Market Access 
resuelve la libre competencia y transparencia del mercado en Chin a y cómo clarifica las funciones 
e influencia del gobierno en las condiciones de mercado de su país?  
Reply: MANLS explicitly lists out the industries, sectors and businesses that reject 
investments in China.  Market players can lawfully and equally access i ndustries, sectors 
and businesses beyond the list, and the access transparency will be further improved.  
The system can facilitate the formation of a market environment where various types of 
market players have equal access to production factor s and can c ompete in an open, fair 
and just way, and the formation of a unified, open, competitive and orderly modern 
market system, where the market plays the decisive role in resource allocation while the 
government's responsibilities are defined  too. WT/TPR/M/3 42/Add.1  
 
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  The immediate  benefit brought by items fully listed on the market access negative list in 
a plain and concise manner according to the principle of law governance, security, step -
by-step progress, necessity and openness is that market players will be informed 
comprehens ively and accurately that which industry, area or service is unaccessible, 
authorized with limited access, or accessible with certain conditions, and items excluded 
from the list are open to market players to their own choice in compliance with laws and 
regulations. Market palyers will also be declared in an open and transparent manner 
that which item shall be approved or not or available for access with compliance. The list 
will be gradually shortened in the progress of the reform, and various kinds of mar ket 
barriers including regional blockades, market segmentation, ownership discrimination 
and unfair competitions will be gradually and eventually solved.  
With regard to the role of the government play in market, the Chinese Government, just 
as the Mexican Government, serves as the market regulator and server.  
Pregunta 35. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 
2.4 PROFUNDIZACIÓN CONTINUA DE LA REFORMA; 2.4.3 Aceleración de la refo rma del 
procedimiento de examen y aprobación de las inversiones  
Páginas 12 y 13, párrafo 2.41: Desde el último examen se han tomado medidas importantes para 
reformar el sistema de verificación de proyectos, encaminado a promover las inversiones 
independie ntes de las empresas, liberar el potencial de la inversión social, permitir que la inversión 
cumpla su función clave en la promoción del desarrollo y ofrecer plataformas más amplias para las 
innovaciones y actividades empresariales de distintos tipos de in versores. Sobre la base de la 
versión de  2013, el Gobierno chino volvió a revisar en 2014 el Catálogo de proyectos de inversión 
que requieren la verificación gubernamental . En esa ocasión suprimió 15 requisitos en materia de 
verificación, los reemplazó por  una serie de elementos que debían registrarse y delegó en las 
administraciones locales la tarea de verificar 23 elementos. Tras esa revisión, el número de 
proyectos sujetos a verificación a nivel nacional disminuyó en total un 76% en el curso de dos 
años.  En 2014, la Comisión Nacional de Desarrollo y Reforma (NDRC) publicó las versiones 
revisadas de las Medidas administrativas aplicables a los proyectos de inversión que requieren la 
verificación gubernamental , las Medidas administrativas relativas a la ver ificación y el registro de 
proyectos con inversión extranjera  y las Medidas administrativas para la verificación y el registro 
de proyectos de inversión en el extranjero . En diciembre de  2014 revisó los artículos pertinentes 
de estas medidas.  
México pregun ta 35:  Con base en el Catálogo de Proyectos de Inversión sujetos a la Verificación 
del Gobierno, ¿puede China enlistar las entidades de los gobiernos centrales, provinciales y 
municipales involucrados en la aprobación de proyectos de inversión?  
Reply: Please refer to the Circular on Releasing the Catalogue of Investment Projects 
Subject to Government Verification (2014 Version) (Guo Fa [2014] No.  53).  
Preguntas 36 a 40. WT/TPR/G/342 • China; Informe de China; 2 ENTORNO ECONÓMICO 
Y COMERCIAL Y ORIENTACIÓN D E LA POLÍTICA MACROECONÓMICA; 
2.4 PROFUNDIZACIÓN CONTINUA DE LA REFORMA; 2.4.4 Reforma de las empresas del 
Estado y desarrollo de la economía privada  
Página 14, párrafo 2.46: Desde el último examen, China ha seguido profundizando la reforma de 
las empresas  del Estado. En agosto de  2015 se publicaron las Orientaciones sobre la 
profundización de la reforma de las empresas públicas , en las que estas se clasificaban en 
empresas comerciales y empresas sin fines de lucro. Se aceleraron los proyectos piloto y de 
demostración de reformas relativos a las entidades de propiedad mixta en los sectores de los 
ferrocarriles, la aviación civil, las telecomunicaciones y la industria militar. Se ejecutaron proyectos 
piloto sobre el cumplimiento de las funciones y el ejercici o de los derechos de las juntas directivas, 
la contratación de personal directivo de acuerdo con las normas del mercado y el sistema de 
gestión profesional y se facilitó el mejoramiento del sistema moderno de gestión de empresas. Se 
adoptaron sistemas de d istribución de la remuneración de acuerdo con los principios de la 
economía de mercado socialista, se reorganizaron y reconstruyeron las empresas de inversión de 
capital y de explotación de propiedad del Estado y se aceleró la transformación de las funcion es de WT/TPR/M/3 42/Add.1  
 
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  los organismos de supervisión de los activos de propiedad del Estado para poner el énfasis en la 
gestión del capital. Se han intensificado los esfuerzos por suprimir las funciones sociales 
desempeñadas por las empresas del Estado y abordar problemas heredados de épocas anteriores; 
se ha seguido mejorando el sistema de presupuestación de capitales administrados por el Estado y 
ha aumentado el porcentaje de plusvalía de los capitales estatales destinado a las finanzas 
públicas.  
México pregunta 36:  ¿Cuál  es el número total de empresas en las que el estado tiene participación 
accionaria?  
Reply: No statistical data is available.  
México pregunta 37:  ¿Qué porcentaje del Producto Interno Bruto y de las exportaciones de China 
pertenecen a empresas estatales?  
Reply: No statistical data  is available.  
México pregunta 38:  Si las empresas estatales están siendo divididas entre empresas comerciales 
y empresas no lucrativas, ¿Cómo se van a mantener las empresas no lucrativas? ¿De dónde 
vendrá el capital necesario para sus operaciones?  
Reply from State -owned Assets Supervision and Administration Commission of the State 
Council (hereinafter referred to as SASAC) and the MOC . 
The SASAC, the MOC and the NDRC jointly printed and issued in December, 2015 Guiding 
Opinions on D efinition and Classification of Functions of State -owned Enterprises  (Guo 
Zi Fa Yan Jiu [2015] No. 170) that specially provides that the operational mechanism of 
both commercial and non -commercial state -owned enterprises as independent market 
players shall  meet the requirement of market economy, Non -commercial state -owned 
enterprises can encourage non -state -owned enterprises to participate in the operation 
through purchasing services, franchising, and entrusting to agencies, and Non -
commerc ial state -owned e nterprises shall increase the input of state -owned capital and 
improve both quality and efficiency of public services pursuant to tasks they undertake 
and requirements of social development.  
México pregunta 39:  ¿Cuántas empresas estatales han sido dividid as hasta la fecha?  
Reply: No statistical data is available.  
México pregunta 40:  ¿Cuál es el método que se utiliza para escoger las empresas que serán 
divididas.  
Reply:  China is reforming state -owned enterprises in accordance with the Guiding 
Opinions on D eepening the Reform of State -owned Enterprises  by categories.  Public 
state -owned enterprises have the main targets of protecting the people's livelihood, 
serving the society and providing public products and services.   
Pregunta 41. WT/TPR/G/342 • China; In forme de China; 2 ENTORNO ECONÓMICO Y 
COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA MACROECONÓMICA; 
2.4 PROFUNDIZACIÓN CONTINUA DE LA REFORMA; 2.4.7 Firme avance de otras 
reformas  
Página 17, párrafo 2.60: El Gobierno chino ha seguido intensificando sus medidas d e reforma de 
los precios y redujo gradualmente el control de los precios de aproximadamente 80 productos 
básicos y servicios o delegó la facultad de controlarlos y revisó su catálogo de precios. Se redujo 
en un 80% el número de bienes y servicios sujetos a l sistema de determinación de precios del 
Gobierno central, y el número de bienes y servicios sujetos al de las autoridades locales disminuyó 
más del 50%. Además, se ha mejorado la política de fijación de precios para la conservación de la 
energía y la pro tección del medio ambiente y ha continuado la labor de definir con claridad y 
unificar las cargas de importación y exportación.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 41:  ¿Puede aclarar el catálogo de precios del gobierno, legislación que lo prevé, 
mecanismo de funcionamiento? D e igual forma, explicar brevemente ¿de qué forma considera que 
la reforma al catálogo de precios del gobierno puede beneficiar a las condiciones de libre mercado 
y su transparencia?  
Reply: According to the Price Law , the limits of powers and the scope of a pplicable 
commodities and services for governments to guide or fix prices shall be based on the 
central pricing catalogue. For commodities and services not included in the central 
pricing catalogue, market -adjusted prices will apply. In 2015, China revised  the 
catalogue, and reduced about 80% of the items priced by the central government and 
about 55% by local governments, greatly reducing the scope of governments pricing. 
Therefore, more commodities and services will be priced by the market.  
Preguntas 42 y  43. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS  
Página 17, párrafo 3.1. Los procesos de apertura y reforma en China han sido simultáneos y se 
han reforzado mutuamente. Desde el último examen, el Gob ierno de China ha procurado construir 
un nuevo sistema económico abierto, y mejorar continuamente el entorno empresarial para que 
sea más favorable a las actividades internacionales y se base en el imperio de la ley. Bajo las 
nuevas circunstancias de globa lización económica, China ha promovido continuamente la apertura 
a nivel interno y hacia el mundo exterior, la mejor integración de la IED y de la globalización, la 
facilitación de la libre circulación ordenada de los factores de producción internacionales  y 
nacionales, la eficiente asignación de recursos y la profunda integración de los mercados, ha 
intensificado sus esfuerzos por lograr nuevas ventajas participando y tomando la delantera en la 
cooperación económica y la competencia internacionales, y ha p romovido la reforma mediante la 
apertura.  
México pregunta 42:  ¿Puede China explicar detalladamente su nuevo sistema de economía abierta 
y las reglas que ha implementado para mejorar el ambiente de negocios al interior de su país en 
beneficio de sus socios comerciales?  
Reply:  Opening up has greatly changed China, but it's still not enough in terms of 
opening level, degree and scope, therefore, the most important and urgent task at 
current is to expand the opening up.  During the 13th Five -Year Plan, China wil l continue 
to pursue a win -win opening strategy, and, under the guidance of the "the Belt and 
Road", enrich the opening -up contents, improve the opening level, strive  to achieve 
mutual beneficial cooperation , and create a new look of opening up.  Experiment al free 
trade zones were established in four regions, including Shanghai,  and a foreign 
investment management system based on pre-establishment  national treatment and 
negative list was introduced.  China also explores big data -based proactive and post 
regul ation and supervision ; and, in the next stage, China will accelerate the free trade 
zone experiments and summarize and promote them across China; and accelerate 
China -US, China -EU investment agreement negotiations. High -level investment 
agreements with the  US and EU will help to speed up the establishment of a foreign 
investment management system in line with international practice.  
México pregunta 43:  ¿Por qué China considera y registra las salidas e ingresos de flujos de 
inversión entre China continental y la Región Administrativa Especial de Hong Kong como 
"Inversión Extranjera Directa?  
Reply: Hong Kong , China  is a separate  custom territory  in China, and therefore, 
investment cash flow between mainland China and Hong Kong , China  is recorded as 
"foreign d irect investment".  
Pregunta 44. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL COMERCIO 
Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.1 DESARROLLO DEL COMERCIO Y LA 
INVERSIÓN; 3.1.1 Desarrollo del comercio  
Página 19, párrafo 3.11. Los modelos empresarial es emergentes han mantenido su rápido 
crecimiento. El comercio electrónico transfronterizo, el comercio de compras de mercado, los WT/TPR/M/3 42/Add.1  
 
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  servicios integrados de comercio exterior y otros modelos empresariales nuevos están 
convirtiéndose gradualmente en nuevos fa ctores de desarrollo del comercio exterior. En 2015, el 
comercio electrónico transfronterizo y el comercio de compras de mercado crecieron más del 30% 
y del 60%, respectivamente, impulsando las exportaciones de un gran número de pymes de 
ingresos reducidos . 
México pregunta 44:  ¿Tiene registros estadísticos de cuántas empresas extranjeras con 
inversiones en modelos emergentes en China se han visto beneficiadas por el crecimiento en el 
sector? ¿Puede detallar la legislación que implementado para promover el c recimiento de modelos 
emergentes de negocios?  
Reply: No special statistics has been obtained on foreign investments in sectors of new 
business models.  
The Chinese government continues to improve the environment for cross -border 
e-commerce. The State Counc il has in 2015 formulated Guiding Opinions concerning 
Vigorously Moving Forward the Internet Plus Actions , and Guiding Opinions on 
Promoting Healthy and Rapid Development of Cross -border Electronic Commerce , 
putting forward foreign trade via the internet a s a means to promote transformation and 
upgrading of foreign trade. In March 2015, the State Council approved the establishment 
of China (Hangzhou) Cross -border E -Commerce Comprehensive Pilot Area to accumulate 
replicable and transferable experiences for t he development of cross -border 
e-commerce through institutional innovation, management innovation and service 
innovation. In January 2016, new cross -border e -commerce comprehensive pilot areas 
were established in 12 cities including Ningbo, Tianjin, Shangh ai and Chongqing. The 
National People's  Congress of the People's Republic of China  (hereinafter referred to as 
NPC) has launched the legislation of electronic commerce to promote healthy and 
sustainable development of electronic commerce, and the draft law  has recently come in 
place.  
Preguntas 45 y 46. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.2 PROMOCIÓN DE LA 
INNOVACIÓN Y EL DESARROLLO EN EL COMERCIO EXTERIOR  
Página 20, párrafo 3.16: Desde el último examen, China se enfrenta con múltiples dificultades, 
como una débil demanda en el mercado internacional, una continua desaceleración del comercio 
mundial, un aumento de los costes de explotación y el debilitamiento de las ventajas tradicionales. 
Ante esta nueva situación, el Gobierno chino ha emprendido enérgicamente la transformación de 
las pautas de desarrollo del comercio exterior y su reestructuración, la renovación del modo de 
desarrollo de su comercio exterior y la intensificación de una coope ración pragmática con sus 
interlocutores comerciales para lograr un beneficio mutuo y un desarrollo común.  
México pregunta 45:  ¿Puede detallar las medidas políticas y legislativas que implementó para 
reestructurar y modernizar su comercio exterior?  
Reply: Details could be found in paragraph s 3.21-3.34 of China's  Government Statement.  
México pregunta 46:  ¿Cómo les ha servido la cooperación pragmática con sus socios comerciales?  
Reply: China has signed and implemented 14 free trade agreements (FIAs), involvi ng 
22 countries and regions, including ASEAN, South Korea, Switzerland, Australia, Chile, 
Peru and others.  Good implementation of the FTAs makes the trade and investment 
between China and its free trade partners more free and accessible, and thus has 
broug ht substantial benefits to businesses and the people of both sides.  WT/TPR/M/3 42/Add.1  
 
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  Preguntas 47 y 48. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.2 PROMOCIÓN DE LA 
INNOVACIÓN Y EL DESARROLLO EN EL COMERCIO EXTER IOR; 3.2.1 Aplicación de una 
política proactiva respecto de las importaciones  
Página 20, párrafo 3.19: Los procedimientos de administración de las importaciones han seguido 
simplificándose. El 1º de julio de  2014, el Ministerio de Comercio suprimió las lic encias de 
importación automáticas respecto de 81 productos a nivel de 10 dígitos del SA. El sistema de 
solicitud de licencias en línea y el despacho de aduana sin documentación impresa de las 
importaciones objeto de licencias automáticas funciona bien. En agosto de  2014 se inició en la 
Zona Franca Experimental (Shanghái) de China el programa experimental de despacho de aduana 
sin documentación impresa de importaciones objeto de licencias automáticas, que se amplió a toda 
la nación en febrero de  2016.  
México  pregunta 47:  ¿Puede señalar la legislación que prevé el mecanismo de licencia automática 
de importación así como los beneficios económicos que ha representado para las aduanas de 
China? ¿Es un mecanismo que puede ser homologado para compartir información con sus socios 
comerciales?  
Reply: China's  existing regulation governing the mechanism of Automatic Import 
License is the Measures For the Administration of Automatic Import License of Goods  
(No. 26, Ministry of Commerce the People's Republic of China and the General 
Administration of Customs the People's Republic of China, 2004)  released jointly by the 
Ministry of Commerce and General Administration of Customs, which was implemented 
from January 1, 2005.  As the Automatic Import License comes in large quant ities in 
China, so in January 2016, the Ministry of Commerce the People's Republic of China and 
the General Administration of Customs the People's Republic of China made an joint 
announcement (No. 5, 2016) that paperless operation of automatic import licen se would 
be introduced across China since February 1, 2016, so as to improve the convenience in 
doing business in China and to make the custom entry operation more paperless.  
México pregunta 48:  ¿Qué documentos aduanales registra el sistema paperless cust oms 
cleareance, puede ser consultado en línea por las empresas que lo utilizan?  
Reply: Paperless custom clearance refers to paperless review and release of electronic 
data of clearance forms and accompanying documents declared online by the export 
enterpri se directly by the General Administration of Customs of the People's Republic of 
China  (hereinafter referred to as GACC) using information technology, instead of 
reviewing clearance forms and accompanying documents in paper submitted by the 
export enterpri se. The clearance is realized by catogorizing imports and exports 
according to the level of risk based on classified enterprise administration and risk 
analysis. The measures taken and pilot areas in paperless clearance reform have been 
expanded to all sit es and areas of business across China by GACC since April 1st, 2014 
and the full coverage of the paperless clearance reform has been thus realized. Ever 
since the implementation of the paperless clearance reform, import and export 
enterprises have been no longer limited to working hours and places of the customs and 
have carried out liberalized clearance. Since the time spent in traveling to and from the 
customs and waiting in the line has been greatly reduced, the trading cost is thus 
lowered and the clear ance efficiency has been raised.  
Pregunta 49. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL COMERCIO 
Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.2 PROMOCIÓN DE LA INNOVACIÓN Y EL 
DESARROLLO EN EL COMERCIO EXTERIOR; 3.2.3 Mejora de la facilitación del comercio  
Páginas 21 y 22, párrafo 3.27: Se han acelerado las reformas para facilitar el despacho de aduana 
y mejorar la eficiencia del despacho aduanero en los puertos y el nivel de facilitación del comercio. 
El 3 de febrero de  2015, el Consejo de Estado p ublicó el Plan de reforma para el intercambio de 
información, el reconocimiento mutuo de la supervisión y la asistencia recíproca para la 
observancia de la Ley, y la promoción de instalaciones para el despacho de aduana , con el objetivo 
de promover de form a acelerada la coordinación del despacho de aduana entre zonas interiores, 
costeras y fronterizas, y el intercambio de información, el reconocimiento mutuo de la supervisión WT/TPR/M/3 42/Add.1  
 
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  y la asistencia recíproca para la observancia de la Ley entre los departamentos de  gestión 
portuaria pertinentes. Actualmente, hay un mecanismo regional integrado del despacho de aduana 
que abarca a las 42  oficinas aduaneras de todo el país, que se dividen en cinco secciones de 
despacho de aduana integrado y reformado: Beijing, Tianjinn  y Hebei, el Cinturón Económico del 
Río Yangtze, las cuatro provincias del delta del río de las Perlas, el Cinturón Económico de la Ruta 
de la Seda y la región del noreste. En todo el país se popularizó el modelo de una declaración, una 
inspección y un lev ante. El 1º de agosto de  2012, se realizaron en 12 oficinas aduaneras, incluida 
la de Shanghái, reformas experimentales del despacho de aduana sin documentación impresa, que 
en 2014 se introdujeron en todos los centros operativos de las oficinas aduaneras de todo el país.  
México pregunta 49:  ¿Puede compartir resultados obtenidos con el sistema paperless customs 
cleareance ? 
Reply: According to the statistics, ever since the implementation of paperless clearance 
reform, the average time spent in the clearance  of imported goods in China has been 
40% less than that before, and the average time spent in the clearance of exported 
goods has been 60% less compared with clearance forms and accompanying documents 
submitted in paper.  
Preguntas 50 y 51. WT/TPR/G/342 • C hina; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.3 IGUAL ATENCIÓN A LAS 
ESTRATEGIAS DE ATRACCIÓN DE IED Y DE GLOBALIZACIÓN  
Página 22, párrafo 3.30. La utilización activa de la inversión extranjera ha sido siempre un 
elemento importante de la política de apertura al resto del mundo aplicada por China. El fuerte 
aumento de la inversión en el extranjero ha sido en los últimos años una nueva característica 
importante del desarrollo de una economía abierta en China. En la n uevas circunstancias, el 
Gobierno chino promoverá en general la reforma de la utilización de la IED y del sistema de 
gestión de la inversión china en el extranjero, mantendrá la estabilidad, transparencia y 
previsibilidad de las políticas de inversión extr anjera, liberalizará de manera ordenada el acceso a 
los mercados para la inversión extranjera y atribuirá mayor importancia a los efectos globales de 
la utilización de la IED. Al mismo tiempo, China reconocerá el papel fundamental de las empresas 
y particu lares como inversores chinos en el extranjero y les permitirá llevar a cabo proyectos 
cooperativos de inversión en el extranjero aprovechando sus fortalezas y asumiendo los riesgos 
correspondientes, para aumentar así su capacidad de integrarse en las caden as de valor mundiales 
y de operar a escala internacional.  
México pregunta 50:  ¿Cuál es la forma en que el gobierno chino promoverá la reforma de la 
utilización de la Inversión Extranjera Directa (IED) y del sistema de administración de la IED en el 
exterio r? 
Reply: With regard to the use of foreign investment, the Chinese government has fully 
implemented the administrative system on foreign investment projects featured by 
universal filing combined with limited verification in order to delegate the administr ative 
authority to local governments and streamline the procedures of administration. China 
has implemented the pilot project on administrative mode of national treatment 
combined with negative lists for foreign investment before admission in four pilot fr ee 
trade zones, and foreign investment to areas not in the negative lists is conducted by 
filing instead of reviewing, which has further facilitated the investment. In the future, 
the pilot project will be duplicated and expanded to other parts of China ba sed on the 
timely conclusion drawn by the Chinese government from the experience in the pilot 
projects carried out in pilot free trade zones. With regard to the overseas investment, 
China has implemented the administrative mode dominated by record filing a nd 
supplemented by reviewing, and has made it much more accessible, greatly reduced the 
scope for verification, and extended the authority of competent investment departments 
of governments at provincial level.  
México pregunta 51:  ¿Cuándo tiene planeado e n comenzar esta reforma y qué objetivos tiene 
planteada?  WT/TPR/M/3 42/Add.1  
 
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  Reply: With regard to the use of foreign investment, China has made significant reform 
in the administrative system on foreign investment projects where the administrative 
system featured by univsera l filing combined with limited verification is fully 
implemented in 2014. More than 95% of the foreign investment projects have been 
conducted by filing and are administrated by local governments, and projects that 
comply with laws, regulations and industr ial policies are filed within 10 working days. 
Projects subject to verification are basically delegated to local governments. Currently, 
the administrative systems of investment projects at home and abroad are basically the 
same except for only a few areas . A unified administrative mode by either filing or 
verification has been implemented. China has been promoting the reform on 
administrative system of overseas investment projects since the year of 2014 and the 
reform has played an effective role in facili tating enterprises  overseas invesment. 
Enterprises are the major players in outward direct investment and the market has 
played a decisive role in resource allocation.  
Pregunta 52. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL COMERCIO 
Y LA INVE RSIÓN Y POLÍTICAS CONEXAS; 3.3 IGUAL ATENCIÓN A LAS ESTRATEGIAS DE 
ATRACCIÓN DE IED Y DE GLOBALIZACIÓN; 3.3.1 Optimización de la utilización de la 
inversión extranjera a través de una mayor apertura al mundo exterior  
Páginas 10 y 11, párrafo 3.32: Desde el  último examen, China ha abierto en mayor medida su 
sector manufacturero y su sector de servicios. China ha abierto totalmente el sector de la 
manufactura general, mediante la eliminación de restricciones a las aportaciones de capital en 
industrias del ace ro, etileno, refino de petróleo, fabricación de papel, maquinaria de grúas, 
maquinaria naval, equipo de transmisión y transformación de electricidad, equipo para el 
tratamiento químico del carbón, helicópteros ligeros, sistemas electrónicos integrados para  
automóviles, y licores famosos; y se excluyen las industrias de los metales no ferrosos, la 
maquinaria de construcción de pequeño tamaño, los rodamientos, el material fotosensible y el 
cloranfenicol. En el sector de la industria de servicios, China ha eli minado o suavizado restricciones 
a las participaciones de capital en industrias de comercio electrónico, funcionamiento en cadena, 
ramales ferroviarios, metro (ferrocarril subterráneo), ferrocarril ligero, transporte marítimo y 
espacios de espectáculos; ha  sacado de la categoría de industrias restringidas a las dedicadas a la 
venta directa, las órdenes por correo, la inspección y certificación de bienes para la importación y 
la exportación, el transporte de carga por ferrocarril, las agencias de seguros y l as sociedades 
fiduciarias; y ha incluido en la categoría de industrias fomentadas las dedicadas al diseño de 
arquitectura y las instituciones dedicadas al cuidado de ancianos.  
México pregunta 52:  ¿En qué manera ha cambiado la inspección y certificación de bienes de 
importación y/o exportación? (penúltima línea)  
Reply: the Certification and Accreditation Administration of China (CNCA) in the last 
two years has issued notices regarding the adjustment of products applicable to the 
Compulsory Product Certificat ion Catalogue  (CCC Catalogue ) and their corresponding 
standards, and adjustment of implementation regulations. In order to make all parties 
concerned accurately define the scope of the CCC Catalogue , the CNCA amended on 
December 24th, 2014 the Description and Definition of CCC Catalogue  that includes 
158 kinds of products under 20 categories, and the former Directory of Description and 
Definition of CCC Catalogue  published as No. 30 Notice in 2012 by CNCA is hereby 
annulled.  
Directory of Description and Def inition of CCC Catalogue (amended in 2014) is linked to 
http://www.cnca.gov.cn/bsdt/ywzl/qzxcprz/mlmsyjd/201412/W02014122439531495
3942.pdf . 
Pregunta 53. WT/T PR/G/342 • China; Informe de China; 3 DESARROLLO DEL COMERCIO 
Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.3 IGUAL ATENCIÓN A LAS ESTRATEGIAS DE 
ATRACCIÓN DE IED Y DE GLOBALIZACIÓN; 3.3.1 Optimización de la utilización de la 
inversión extranjera a través de una m ayor apertura al mundo exterior  
Páginas 23 y 24, párrafo 3.35: Una medida importante para promover la apertura que ha 
adoptado el Gobierno chino por propia iniciativa ha sido crear zonas francas experimentales. WT/TPR/M/3 42/Add.1  
 
- 304 - 
 
  Fijándose como objetivo la innovación institu cional, el Gobierno chino se propone simplificar la 
administración y delegar poderes en niveles inferiores, mejorar la reglamentación y optimizar los 
servicios. En las zonas francas experimentales se han hecho estudios dinámicos e intentos audaces 
de acele rar la transformación de las funciones gubernamentales y facilitar así el comercio y la 
inversión, y conseguir una apertura innovadora del sector financiero de forma que pueda 
encabezar el establecimiento de un sistema de normas para las inversiones transf ronterizas y el 
comercio que responda a los requisitos de la internacionalización y el imperio de la ley; y para 
estudiar nuevas formas de profundizar las reformas y acumular experiencia sobre estas, y ampliar 
la apertura a todo el país.  
México pregunta 53 : ¿Considera que las reglas que operan en la FTZ son la guía o el modelo a 
seguir para reformar toda la legislación en materia de comercio exterior de China? Con lo anterior 
¿China considera que puede influir en las condiciones de libre mercado de su siste ma de 
producción?  
Reply: Working as test field for moving forward reforms and improving the level of open 
economy in China, the pilot free -trade zone promotes reforms through opening wider to 
the outside world, accelerates transformation of governmental fu nctions and innovation 
in management approach to provide new strong power for deepening reform in an all -
round way. At the same time, the pilot free -trade zones explore and improve new 
pattern of opening -up and systematic arrangement as key carrier for China's further 
integrating into economic globalization through actively tackling new trend of 
globalization and matching new regulations of international investment and trade. 
Therefore, institutional innovation shall be set as core task in moving forward th e 
construction of pilot free -trade zones in order to establish institutional framework 
matching prevailing regulations of international investment and trade, to create the 
internationally -focused, market -oriented business environment ruled by law, and to 
explore replicable and transferable experience and practices for better serving 
nationwide reform and opening -up in China.  
Preguntas 54 y 55. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.3 IGUAL ATE NCIÓN A LAS 
ESTRATEGIAS DE ATRACCIÓN DE IED Y DE GLOBALIZACIÓN; 3.3.2 Mejora de la 
competitividad a través de la globalización  
Página 25, párrafo 3.41: En 2015, el Consejo de Estado publicó las Orientaciones sobre la 
promoción de la cooperación internacion al en materia de creación de capacidad y fabricación de 
equipo . El Gobierno chino adoptó esta nueva medida para adaptarse a la "nueva normalidad", y 
para dar un nuevo impulso al crecimiento económico mundial. El objetivo es abrirse más al mundo 
exterior, r emodelar la cadena industrial mundial de forma más equilibrada, inclusiva y beneficiosa, 
en la que converjan las ventajas comparativas de varios países, y construir una comunidad 
mundial de desarrollo y de intereses que beneficie a todos y sea inclusiva, y  reparta los beneficios 
entre todos. Los distintos países, que se encuentran en distintas etapas de desarrollo, no solo 
pueden armonizar la oferta y la demanda de los otros, sino también ampliar la demanda mediante 
una oferta innovadora conseguida a través  de la cooperación internacional en la esfera de la 
creación de capacidad. Actualmente, China ha iniciado con 17 países una cooperación bilateral en 
la esfera de la creación de capacidad institucional.  
México pregunta 54:  Con base en el documento emitido p or el Consejo de Estado para promover la 
Capacidad Internacional y la Cooperación en Equipo de Manufactura, ¿puede China detallar cuales 
son las industrias prioritarias en este plan?  
Reply: Twelve key industries, namely, iron and steel, non -ferrous metals,  building 
materials, railways, electricity, chemical engineering, light textiles, automobiles, 
communication, engineering machinery, aerospace, vessels and ocean engineering, to 
promote international capacity and equipment manufacturing cooperation, are 
comfirmed by the Guiding Opinions of the State Council of the People's Republic of 
China , on Promoting International Capacity and Equipment Manufacturing Cooperation.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 55:  ¿De dónde saldrá el presupuesto para realizar este plan y cuál es su 
presupuesto?  
Reply:  Cooperation of international capacity and equipment manufacturing  is conducted 
and led by the enterpreise on their own and advanced by the government. The 
enterprises are making their own business decsion, and  respons ibile for their  profi ts and 
loss, and assume risks by themselves, and governments at all levels strengthen their 
integrative and coordinative role. The fund is self collected by the enterprisess, with the 
channels including self -owned capital, debt financing and equity investm ent. 
Pregunta 56. WT/TPR/G/342 • China; Informe de China; 3 DESARROLLO DEL COMERCIO 
Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.4 CREACIÓN DE ALIANZAS ECONÓMICAS Y 
COMERCIALES SOBRE LA BASE DEL PRINCIPIO DE BENEFICIOS PARA TODOS; 
3.4.1  Determinación de hacer ava nzar el Programa de Doha para el Desarrollo  
Página 26, párrafo 3.47: China sostiene que para concluir totalmente las negociaciones de la 
Ronda de Doha, todos los Miembros tienen que hacer suya la orientación hacia el desarrollo, 
respetar el mandato y los p rogresos ya conseguidos, y adoptar métodos prácticos, equilibrados y 
viables para que todos se beneficien. La conclusión debería ayudar a generar oportunidades para 
los países en desarrollo, especialmente para los países menos adelantados Miembros, y ayuda r a 
conseguir el cumplimiento de las metas de la Agenda 2030 de las Naciones Unidas para el 
Desarrollo Sostenible. Las negociaciones deben ser orientadas por los Miembros, ser transparentes 
e inclusivas, y garantizar a todos una participación efectiva. Al mismo tiempo, China propone que 
se debatan nuevas cuestiones de forma tentativa dentro del marco multilateral, para lograr 
acuerdos institucionales inclusivos, promover la participación, defender los intereses de todos y 
establecer normas.  
México pregunta 56: ¿Qué temas nuevos de discusión propone China para rediseñar el sistema 
multilateral de comercio?  
Reply: In the Solidarity Work Program proposed by China,we suggest WTO memebers 
hold dissusions on such new issues as e -commerce and investment, which not only are 
relevant to trade reality today but also have significant bearing on trade growth. China 
believes that disucssion on these issues will help the multilateral trading system 
respond more effectively to the changes in production methods and business practices 
in today 's world. China holds the opinion that the discussion of new issues should also 
take a multilateral approach and effectively address the concerns of developing 
members.  
Preguntas 57 a 59. WT/TPR/G/342 • China; Informe de China; 3 DESARROL LO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.4 CREACIÓN DE ALIANZAS 
ECONÓMICAS Y COMERCIALES SOBRE LA BASE DEL PRINCIPIO DE BENEFICIOS PARA 
TODOS; 3.4.2 Protección del sistema multilateral de comercio mediante medidas 
concretas  
Página 26, párrafo 3.48. China es un activo participante en el sistema multilateral de comercio, lo 
defiende firmemente y contribuye a él de forma importante. Desde su adhesión a la OMC, China ha 
cumplido con toda seriedad los compromisos que asumió en el marco de su adhesió n y ha hecho 
importantes contribuciones a la protección del sistema multilateral de comercio. China ha 
participado seria y activamente en la labor diaria de la OMC, ha respetado las decisiones 
adoptadas en el marco del mecanismo de solución de diferencias,  y ha cumplido de forma activa 
sus obligaciones de transparencia. Desde el comienzo de la crisis financiera internacional, China ha 
prestado su apoyo a la OMC en el ámbito de la vigilancia y supervisión de las medidas comerciales 
y ha desempeñado un papel crucial en la lucha contra el proteccionismo.  
México pregunta 57:  ¿Puede China informar los mecanismos que ha implementado para dar 
cumplimiento a sus obligaciones de transparencia derivadas de los Acuerdos de la OMC?  
Reply: In formulating and implementing  economic and trade policies, China has set store 
by their consistency with the WTO rules and China's commitments to the multilateral 
trading system. China has endeavoured to make reference to prevailing practices of WT/TPR/M/3 42/Add.1  
 
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  other WTO members and take into account  possible impact on the outside world, to 
ensure stability, transparency and predictability of its trade policies.  
México pregunta 58:  ¿Cuenta China con un mecanismo para monitorear las medidas de comercio 
que implementa en su país?  
Reply:  The Notice of th e General Office of the State Council on Further Strengthening the 
Regulatory Compliance of Trade Policies published in 2014 stipulates that trade policies 
made by departments of the State Council, local governments at all levels and 
departments of local g overnments shall be in compliance with  the WTO rules . 
México pregunta 59:  ¿Lo ha hecho del conocimiento de sus socios comerciales?  
Reply: The Notice of the General Office of the State Council on Further Strengthening the 
Regulatory Compliance of Trade Poli cies is published to the general public and is 
available on the official website of the Chinese government ( www.gov.cn ) and the 
official website of MOC (www.mofcom.gov.cn ). The Impl ementation Measures on the 
Regulatory Compliance of Trade Policies (For Trail Implementation) is published in the 
Issue 79 of 2014 China Foreign Trade and Cooperation Economic Gazette and is 
available on the official website of MOC.  
Preguntas 60 y 61. WT/T PR/G/342 • China; Informe de China; 3 DESARROLLO DEL 
COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS; 3.4 CREACIÓN DE ALIANZAS 
ECONÓMICAS Y COMERCIALES SOBRE LA BASE DEL PRINCIPIO DE BENEFICIOS PARA 
TODOS; 3.4.2 Protección del sistema multilateral de comercio mediante medidas 
concretas  
Página 26, párrafo 3.49: En la formulación y aplicación de las políticas económicas y comerciales, 
China ha dado gran importancia a la compatibilidad de estas con las normas de la OMC y con los 
compromisos que ha asumido en el si stema multilateral de comercio. China se ha esforzado por 
tomar como referencia las prácticas de otros Miembros de la OMC y tener en cuenta las posibles 
repercusiones en el mundo exterior, con objeto de asegurar la estabilidad, transparencia y 
previsibilid ad de sus políticas comerciales.  
México pregunta 60:  ¿Puede aclarar las medidas políticas y legislativas que ha implementado para 
asegurar la estabilidad, transparencia y predicibilidad de sus medidas de comercio? ¿Las ha 
informado a sus socios comerciales ? 
México pregunta 61:  ¿Sus socios comerciales participan en el diseño/publicación de estas medidas 
ara asegurar la estabilidad, transparencia y predicibilidad de su comercio?  
Reply to Question s 60-61: China attaches great importance to promoting transparen cy in 
the drafting of laws and regulations. As stipulated in Regulations on Procedures for the 
Formulation of Administrative Regulations  and Regulations on Procedures for the 
Formulation of Rules  issued in the year of 2001, drafting administrative regulati ons can 
invite public opinions through panel discussions, feasibility study meetings and 
hearings, and important draft of administrative regulations submitted for approval shall 
be open to the public to solicit opinions after the approval by the State Coun cil. The 
Legislation Law of the People's Republic of China  amended in March, 2015 stipulates 
that in the process of drafting an administrative regulation, the drafting body shall 
solicit opinions from a wide circle of constituents such as the relevant agen cies, 
organizations and citizens, and the draft of administrative regulations shall be open to 
the public to solicit opinions with the exception of ones that will not be published as is 
decided by the State Council. The Outline of Building Government Ruled  by Law  
(2015 -2020) introduced in December, 2015 stipulates that the public participation in the 
legislation of government shall be increased, accompanied by the expansion of the 
approach and method of participation of various parties of society in the leg islation of 
government in order. The draft of laws, regulations and rules shall be open to the public 
for at least 30 days in general to solicit opinions through media including network and 
newspaper with the exception of ones that shall be kept confidenti al in compliance with 
the law. Apart from ones that are  confidential according to law, all drafts of WT/TPR/M/3 42/Add.1  
 
- 307 - 
 
  administrative regulations have been open to the public through the Website for 
Information on Legal Institution of the Chinese Government ( http://zqyj.chinalaw. 
gov.cn/index ) to solicit opinions, and drafts of rules of departments are also published 
on the website to solicit opinions.  
WT/TPR/S/342  
Preguntas 62 a 64. WT/TPR/S/342 • China; Informe de la Secr etaría; RESUMEN  
Página 8, párrafo 2: Como se indica en las Líneas generales del Decimotercer Plan Quinquenal 
(2016 -2020), las  autoridades tienen el propósito de proseguir el proceso de reforma estructural de 
la economía, lo que incluye la promoción de la p articipación del sector privado en la economía y la 
reforma de las empresas estatales, aunque manteniendo la preponderancia de la propiedad 
pública. Otras medidas mencionadas en el Plan son la promoción de la competencia, la reforma 
fiscal, la reforma del sector financiero para aumentar la participación del capital privado en la 
banca y la ampliación de la oferta de servicios financieros, y la adopción de tipos de cambio y de 
interés determinados en mayor medida por el mercado. Las autoridades también han a doptado 
recientemente medidas para hacer frente al exceso de capacidad de producción de algunas 
industrias. Se han adoptado medidas para desincentivar o reducir la producción en industrias tales 
como las de hierro y acero, aluminio electrolítico, cemento, vidrio plano y embarcaciones. Las 
autoridades locales y los departamentos centrales no pueden aprobar nuevos proyectos que 
aumenten la capacidad en esos sectores.  
México pregunta 62:  ¿Cuáles son las medidas que las autoridades han tomado para manejar la 
sobrecapacidad en ciertas industrias?  
Reply: The Chinese government attaches great importance to the issue of overcapacity. 
The Guiding Opinions of the State Council on Resolving Serious Production Overcapacity 
Conflicts (Guo Fa [2013] No. 41, hereinafter re ferred to as No. 41 Document) issued by 
the State Council in the year of 2013 makes arrangements for resolving the overcapacity 
in steel and other industries. The State Council printed and issued the Opinions on 
Resolving Overcapacity in Steel Industry for  the Development of Poverty Elimination 
(Guo Fa [2016] No. 6) in early February, 2016. The General Office of the State Council 
printed and issued the Guiding Opinions of the General Office of the State Council of the 
People's Republic of China , on Promotin g Steady Growth, Structural Adjustments and 
Efficiency Increases of the Building Material Industry (GBF [2016] No.  34, hereinafter 
referred to as No. 34 Document) in May, and the Guiding Opinions on Cultivating Sound 
Market Environment for Promoting Struct ural Adjustments, Transformation and 
Efficiency Increases  of the Non -ferrous Metal Industry (GBF [2016] No.  42, hereinafter 
referred to as No. 42 Document) in June, making arrangements exclusive to resolve the 
issue of overcapacity in the industries of ste el, cement and electrolytic aluminum.  
The production of steel and cement in the year of 2015 began to fall and the growth rate 
of electrolytic aluminum slowed down. During the period of the 12th Five -Year Plan 
(2011 -2015), China has accumulatively closed d own backward production capacities of 
90 million tons in iron -making and steel production, of 660 million tons in cement 
production, and of 2.05 million  tons in electrolytic aluminum.  
México pregunta 63:  ¿Cuáles son las medidas para desalentar o reducir la  producción en industrias 
como el acero, hierro, aluminio, cemento?  
Reply: Related departments are resolving the issue of overcapacity according to the 
above -mentioned guiding opinions from the State Council.  
México pregunta 64:  ¿Cuál es el proceso que deb en seguir las empresas para poder aplicar a 
proyectos para expandir su capacidad ? 
Reply: In terms of the approval and filing of investment projects, please refer to the 
Decision of the State Council on Reform of the Investment System (Guo Fa [2004] 
No. 20) and the Catalogue of Investment Projects Subject to Government Verification  
(Guo Fa [2014] No. 53).  WT/TPR/M/3 42/Add.1  
 
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  Reply: According to the Opinions on Resolving Overcapacity in Steel Industry for the 
Development of Poverty Elimination  (Guo Fa [2016] No. 6), and the Guid ing Opinions of 
the General Office of the State Council of the People's Republic of China , on Promoting 
Steady Growth, Structural Adjustments and Efficiency Increases of the Building Material 
Industry (GBF [2016] No.  34), the industries of steel, cement, p late glass and other 
industries with overcapacity are forbidden to any new capacity expanding projects.  
Preguntas 65 y 66. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN  
Página 11, párrafo 14: Durante el período objeto de examen, China siguió alen tando la IED así 
como las sociedades conjuntas entre empresas chinas y extranjeras, en particular en esferas en 
las que tiene un interés estratégico. Se ha alentado la IED en sectores tales como las 
manufacturas de gama alta, las industrias de alta tecnolo gía, las industrias de servicios, las nuevas 
energías y los sectores que propician la protección del medio ambiente mediante el ahorro de 
energía. También se ha fomentado la IED en las regiones centrales y occidentales, donde los 
proyectos pueden beneficia rse de políticas favorables. La IED que suponga inversiones en 
empresas chinas puede estar sujeta a exámenes de seguridad nacional si los proyectos están 
relacionados con la defensa o si se considera que pueden afectar a la seguridad nacional. Los 
proyecto s con inversión extranjera están sujetos a verificación (aprobación) o a registro. Los 
proyectos sujetos a verificación (aprobación) están enumerados en un Catálogo específico, 
mientras que la mayoría de los proyectos no incluidos en este Catálogo están su jetos a registro. La 
verificación (aprobación) requiere el examen del proyecto de inversión, y deben cumplirse varias 
condiciones. El registro es un proceso simplificado que se utiliza generalmente para las solicitudes 
relativas a proyectos con inversión e xtranjera que se considera que no suponen un riesgo para la 
seguridad nacional o el medio ambiente o que no son contrarios al interés público.  
México pregunta 65 : ¿Puede China citar la legislación que lista las causales de seguridad nacional 
que toma en cu enta para evaluar la viabilidad de una inversión extranjera directa en su país o 
para resolver una disputa en la materia?  
Reply: See the Notice of the General Office of the State Council on Launching the 
Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign 
Investors  (Guo Ban Fa [2011] No. 6) and the 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 Zone s (Guo Ban Fa [2015] No. 24) for 
specification.  
México pregunta 66: ¿Puede China aclarar el concepto de interés público para efectos de evaluar la 
viabilidad de una inversión extranjera directa en su país o para resolver una disputa en la materia?  
Reply: China noted that there is no uniform definition over public interests among WTO 
members, and China wishes to refer to experience from Mexico and other WTO members 
to improve domestic supervision.  
To share the experience, China believes initially that the p ublic interests might be 
featured by the following four points. The first is the common interest directly related 
with all social members. The second is the interest of non -particular person in the 
aspects of economy, culture and education. Since the publi c interest itself is uncertain in 
the scope of beneficiaries, the benefit might be in multiple aspects: economic, 
educational, scientific, cultural and spiritual. The third is the interest concerning the 
individual life, health and liberty related to rudim entary value of law. The fourth is the 
economic order. The economic order matters the operation of the societyas a whole and 
reflects the interests of all social members.  
Preguntas 67 y 68. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN  
Página 11,  párrafo 15. El programa piloto de reforma del régimen de inversión extranjera, iniciado 
en 2013 mediante el establecimiento de la Zona Franca Experimental (Shanghái) de China, se 
amplió en  2015 para abarcar otras tres zonas francas experimentales en Guang dong, Fujian y 
Tianjin. El acceso de la IED a estas cuatro zonas se basa en una lista negativa. Los proyectos con 
inversión extranjera que no figuran en la lista negativa reciben trato nacional, ya que están WT/TPR/M/3 42/Add.1  
 
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  exentos del requisito de examen y aprobación, y solo están sujetos al registro. Las autoridades 
parecen tener el propósito de ampliar gradualmente a todas las inversiones el planteamiento de 
lista negativa. En octubre de 2015, el Consejo de Estado emitió un Dictamen sobre la elaboración 
de dos listas ne gativas: una para el acceso a los mercados, aplicable tanto a las empresas 
nacionales como a las extranjeras, y otra para las inversiones extranjeras. Estas listas se irán 
poniendo en aplicación progresivamente; de momento no está claro qué relación tendrá n estas 
listas con el Catálogo de inversiones.  
México pregunta 67: ¿Puede China aclarar el mecanismo de listas negativas para el acceso a 
mercado y para inversión extranjera?  
Reply: The market access negative list is the consistent administrative measure a pplied 
to investors both at home and abroad, and is the unified requirement by market access 
administration to all kinds of market players. The foreign investment negative list is 
applied exclusively to overseas investors, and is the special administrative  measure 
targeting foreign investment market access. In other words, market players within 
China (Chinese local enterprises) shall comply with the requirement of market access 
negative list; overseas market players who invest in China (pre -establishment) s hall 
comply with the requirement of foreign investment negative list; and established market 
players (after becoming market players within China) shall comply with the requirement 
of market access negative list according to the principle of national treatm ent. 
México pregunta 68: ¿Considera que el uso de listas negativas para el acceso de productos e 
inversiones extranjeras contraviene los principios de libre competencia y transparencia en el 
sistema multilateral de comercio?  
Reply: China promotes the marke t access negative list system and administrative mode 
of foreign investment negative list for higher policy transparency and fair competition 
between investment at home and abroad in an impartial manner. Items on the market 
access negative list shall be fu lly listed on one list in a plain and concise manner 
according to the principle of law governance, security, step -by-step progress, necessity 
and openness.  
Preguntas 69 a 71. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN  
Páginas 11 y 12, párrafo  18. Las importaciones siguen estando divididas en tres categorías: no 
restringidas, restringidas y prohibidas. El  régimen de licencias automáticas de importación se 
aplica por motivos estadísticos para el seguimiento del volumen de las importaciones no 
restringidas. Los productos se enumeran en el Catálogo de productos sujetos al régimen de 
licencias automáticas, que se publica anualmente, y en el Catálogo de licencias automáticas para 
los desechos sólidos. En 2015, en el primero figuraban 396 productos a nivel de 8 dígitos del SA 
(46 menos que en  2013); sin  embargo, a finales de año se añadieron 8 líneas arancelarias. En el 
Catálogo de licencias automáticas para los desechos sólidos figuraban 17 productos. Desde el 
anterior examen, se han excluido del régi men de licencias automáticas las importaciones de 
determinados tipos de maquinaria y equipo, y de vehículos. Los productos restringidos se 
administran mediante licencias no automáticas y/o contingentes. Las licencias no automáticas se 
aplican a las importa ciones independientemente de su origen. Los productos sujetos al régimen de 
licencias no automáticas figuran en el Catálogo de mercancías sujetas a administración de licencias 
de importación y en el Catálogo de importaciones restringidas de desechos sólido s. En 2015 había 
134 líneas arancelarias a nivel de 8  dígitos del SA que estaban sujetas al régimen de licencias no 
automáticas de importación. En 2015, al igual que en  2013, las importaciones sujetas a este 
régimen consistían principalmente en maquinaria y equipo electrónico usados. Las condiciones y 
los procedimientos de obtención de una licencia no automática de importación no han cambiado 
desde el examen anterior.  
México pregunta 69: ¿Puede China citar la legislación que establece el mecanismo para otor gar 
cuotas (cupos) de importación?  
Reply: Article 16 of the Foreign Trade Law.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 70: ¿Puede China explicar el mecanismo completo para la asignación de cuotas 
(cupos) de importación de productos agrícolas?  
Reply: Goods subject to import licens ing in China are certian used machinery and ozone 
depleting substances. Agricultual products are not subject to non -automatic import 
licensing.  
México pregunta 71: Los mecanismos de asignación de cuotas (cupos) de importación ¿son 
notificados a los socios comerciales de China en cumplimiento de sus obligaciones de transparencia 
en el marco de los Acuerdos aplicables de la OMC?  
Reply: Details regarding import licensing regiems of China could be found in China's  
notification of Quantitiies Restriction Measure s and our reponses to annual 
Questionnaire to the Licensing Agreement.  
Pregunta 72. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN   
Páginas 12 y 13, párrafo 21. En China hay cuatro tipos de normas: nacionales, de ramas de 
producción/sectoriales, l ocales y empresariales. Las tres primeras pueden ser o bien voluntarias o 
bien obligatorias (reglamentos técnicos). Las normas nacionales son elaboradas por la 
Administración de Normalización de China (SAC), a través de un proceso que se divide en varias 
etapas y en el que los respectivos sectores desempeñan un papel auxiliar. Estas normas son 
examinadas después de cinco años de aplicación para confirmar si todavía son válidas o si es 
necesario modificarlas o anularlas. Las normas de ramas de producción/sec toriales son formuladas 
por los comités técnicos pertinentes. China  mantiene un sistema obligatorio de certificación de 
productos cuyo objetivo es garantizar que los productos cumplan los requisitos técnicos y que se 
aplica tanto a los productos nacionales  como a los importados. Los productos sometidos a 
certificación obligatoria se enumeran en el Catálogo para la certificación obligatoria de productos; 
no se pueden vender en China ni importar sin haber obtenido una certificación y una marca 
correspondiente . En 2015, había 493  líneas arancelarias a nivel de 10 dígitos del SA que estaban 
sujetas a esta certificación. Más del 80% de estas líneas correspondían a maquinaria y aparatos 
mecánicos, maquinaria y equipo eléctrico, y  vehículos. La inocuidad de los ali mentos y el control 
de la calidad de la cadena de suministro de alimentos se han convertido en una prioridad nacional. 
En este contexto, China ha promulgado en 2015 la nueva Ley sobre inocuidad de los alimentos, 
con el propósito de fortalecer el sistema na cional de gestión de la inocuidad de los alimentos y 
exigir más responsabilidad en este ámbito a los productores, comerciantes y gobiernos locales; 
impone graves sanciones a los que infrinjan la Ley.  
México pregunta 72: ¿Puede China explicar el procedimien to administrativo para emitir una norma 
técnica nacional obligatoria?  
Reply: At present, the procedures for the formulation of compulsory national standards 
are basically consistent with that of recommended national standards, including 
9 procedures, namel y, a pre -research stage, project initiation, drafting of the proposed 
standard, opinion solicitation, examination of the technical contents, approval, 
publication, re -examination and annulment. But the procedures for the formulation of 
compulsory standards  in China are different because the standards fall within the 
technical regulations. First, the standardization authorities shall organize expert review 
on both necessity and feasibility of the compulsory project in the initiation link of 
national standard s. Second, compulsory standards shall be reviewed by the expert 
conference in the technical review. Third, compulsory standards involving trades shall 
be notified to the public in compliance with WTO/TBT prior to the technical review. With 
the deepening re form on standardization in the future, the procedures for the 
formulation of compulsory national standards will be greatly different from that of 
recommended ones. According to the Plan for Deepening Standardization Reform , the 
authorities of the State Cou ncil are responsible for project initiation, drafting of the 
standards, opinion solicitation and technical review, which highlights the leading role of 
the government.  WT/TPR/M/3 42/Add.1  
 
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  Preguntas 73 a 75. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN   
Página 13, p árrafo 24. China aplica a nivel central y provincial controles de los precios de los 
productos y servicios que se considera que tienen una repercusión directa en la economía nacional 
y en los medios de subsistencia de la población. Estos controles adoptan dos formas: precios 
gubernamentales, que son fijados por las autoridades, y precios orientados por el Gobierno, que se 
establecen dentro de una banda. Los productos básicos y los servicios sometidos a control de 
precios están enumerados en el Catálogo de p recios establecidos por el Gobierno Central y en los 
catálogos de precios establecidos por los gobiernos locales. Desde el último examen, China ha 
liberalizado el precio de varias mercancías y servicios, como el precio en fábrica de los materiales 
explosiv os, los gravámenes aplicados a algunos proyectos de construcción y los precios de los 
bienes para uso militar y las hojas de tabaco. Actualmente se aplican precios fijados por el 
Gobierno a los productos refinados del petróleo, al gas natural, a determinad os medicamentos y a 
algunos servicios. Los productos considerados importantes para las reservas centrales (cereales, 
algodón, azúcar, seda de hilatura, petróleo crudo, petróleo elaborado y abonos químicos) han 
dejado de estar sujetos a precios fijados por el Gobierno.  
México pregunta 73: ¿Puede China citar la legislación sobre control de precios y detallar sobre su 
mecanismo de operación?  
Reply: The prevalent law on price control in China is the Price Law, according to which 
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 municipalities) respectively 
formulate the catalogue of prices set by t he 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 government pricing catalogue shall 
adjust their prices to the markets in acco rdance with the Price Law.  
México pregunta 74 : ¿Considera China que la política de control de precios influye o afecta las 
condiciones de libre mercado que debe para con sus socios comerciales?  
Reply: No, because all investors are treated equally in the fa ce of price policies.  
México pregunta 75: ¿China ha evaluado la necesidad de eliminar el sistema de control de precios 
para garantizar condiciones de libre competencia en su mercado interno?  
Reply: China will further reduce governmental interventions to pr ice formation by 
removing the price control of commodities and services in competitive areas, and 
removing the price control in the competitive parts of industries such as electricity, 
petrol, natural gas and transportation for free competition.  
Preguntas 76 y 77. WT/TPR/S/342 • China; Informe de la Secretaría; RESUMEN  
Página 15, párrafo 30: Las autoridades chinas se proponen como objetivo modernizar el sector 
agrícola mediante la mecanización y la promoción del desarrollo de explotaciones de escala media 
para mejorar la productividad, garantizar la autosuficiencia de cereales y promover la inocuidad de 
los alimentos. Para conseguir estos objetivos, entre otras cosas, se incrementará y mejorará la 
ayuda al sector, se reformará el sistema de formación de prec ios de los productos agrícolas y se 
facilitará el acceso al crédito. Se sigue prestando ayuda a la agricultura principalmente a través de 
los "cuatro  programas de subvenciones": las subvenciones directas a los agricultores (arroz, trigo 
y maíz); la subvenc ión global a los insumos agrícolas; la subvención para fomentar las cepas y 
semillas de calidad superior; y la subvención para la adquisición de maquinaria y herramientas 
agrícolas. La subvención global a los insumos agrícolas es la mayor en términos de de sembolsos; 
en 2014, representó aproximadamente el 41% de los 262.000 millones de yuan asignados a los 
programas agrícolas. Las autoridades están planificando la fusión de tres de los programas en uno. 
A este fin, en 2015, se aplicó en cinco provincias (Anh ui, Hunan, Shandong, Sichuan y Zhejiang) 
un programa experimental de reforma de las subvenciones agrícolas, que consiste en combinar 
tres de las "cuatro subvenciones" en un programa, la subvención para apoyar y preservar la 
agricultura, con objeto de utili zar los fondos de forma más eficiente. La subvención para la 
adquisición de maquinaria y herramientas agrícolas seguiría en vigor.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 76: ¿Puede China explicar a detalle la subvención global a los insumos agrícolas  
("Comprehensive Subsidy for Agricultural Inputs" )? 
Reply: The comprehensive subsidies for agricultural inputs is a compensatory support to 
farmers to compensate the increase in the cost of production caused by the increased 
price of inputs in agricultural production (including fertil izers, diesel, seeds and 
agricultural machinery), and such subsidies are available to all farmers that own 
contracted farmlands. The comprehensive subsidy for agricultural inputs is direct 
subsidy based on the area of contracted farmland or taxable farmlan d and the rate of 
subsidies. The comprehensive subsidies for agricultural inputs ha ve been combined with 
two other direct payments, and renamed the Agriculture Support and Preservation 
Subsidy since 2016, which means that the comprehensive subsidy for agri cultural inputs 
no longer exists.  
México pregunta 77: ¿Las empresas extranjeras con inversión en el sector pueden ser sujetos de 
la subvención global a los insumos agrícolas  ("Comprehensive Subsidy for Agricultural Inputs" )? 
Reply: Since 2016, the comprehe nsive subsidy for agricultural inputs has not been in 
place.  
Pregunta 78. WT/TPR/S/342 • China; Informe de la Secretaría; 1 ENTORNO 
ECONÓMICO; 1.1 Evolución económica reciente  
Página 19, párrafo 1.9. Al final de  2014, el número de personas empleadas en Chi na ascendía a 
772,5 millones, de los que 393 millones se hallaban en zonas urbanas. De la población empleada 
total, el 40,6% correspondía al sector terciario, el 29,9% al sector secundario y el 29,5% al sector 
primario. La tasa de desempleo registrada en z onas urbanas era del 4,1% al acabar el año, 
aproximadamente la misma de todos los años desde  2010. El salario anual medio de las personas 
empleadas en unidades de propiedad estatal ascendía a 57.296 yuan, con salarios que variaban 
entre 94.943  yuan en el s ector financiero y 27.782 yuan en el sector agrícola, ganadero, forestal y 
pesquero .1 
México pregunta 78: ¿Cómo define China las áreas urbanas?  
Reply: According to the Provisions on Division of Urban and Rural Areas from a 
Statistical Perspective (Guo Han [2008] No. 60, replied and issued on July 12th, 2008 by 
the State Council), urban areas are composed of city area and town area. The city area 
refers to municipal districts, cities not divided into districts, and neighborhood 
committees and other areas lin ked by practical construction in places where 
governments of districts and municipal governments are stationed, and the town area 
refers to places where governments at county level are stationed outside the city area, 
neighborhood committees and other area s linked by practical construction in places 
where governments are stationed. Places not linked with practical construction in places 
where governments are stationed, special zones with permanent population above 3,000 
including independent industrial and mine areas, development zones, scientific research 
units, universities and colleges, and places where headquarters of farmlands and 
forestlands are stationed are regarded as town areas. Rural areas are areas outside both 
city and town areas in accordance w ith the Provisions.  
Preguntas 79 y 80. WT/TPR/S/342 • China; Informe de la Secretaría; 1 ENTORNO 
ECONÓMICO; 1.2 Política fiscal y reforma estructural; 1.2.1 Política fiscal y cuestiones 
conexas  
Página 21, párrafo 1.13. Las autoridades siguen considerando q ue la reforma fiscal es una 
prioridad constante. Durante el período objeto de examen, avanzaron en la aplicación de la 
reforma del IVA y la eliminación de la doble imposición. Según sus estimaciones, la sustitución del 
impuesto sobre las actividades comerc iales por el IVA dio por resultado una reducción de los 
impuestos en 140.000  millones de yuan en 2013 y 191.800 millones de yuan en 2014. También se 
                                                
1 National Bureau of Statistics of China  (2016), "National Data: Quarterly Data" . Consulta do en: 
http://data.stats.gov.cn/english/easyquery.htm?cn=B01 . WT/TPR/M/3 42/Add.1  
 
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  aplicaron medidas para reducir las cargas en general; las cargas por servicios administrativos y 
financiaci ón pública de actividades relacionadas con las pequeñas empresas y las microempresas 
se redujeron o suspendieron.2 Las autoridades han afirmado que, si bien continúan con el proceso 
de reforma del IVA, tienen intención de centrar las reformas en los objeti vos siguientes: mejorar el 
régimen del impuesto sobre la renta de las personas físicas para reducir la carga impositiva sobre 
los hogares de ingresos bajos y medianos; fortalecer los impuestos sobre los recursos naturales 
para contribuir a proteger el medi o ambiente; e introducir un impuesto sobre el patrimonio de 
alcance nacional.3 
México pregunta 79:  ¿Cuáles son las medidas que se han implementado para reducir los costos en 
todos los ámbitos?  
Reply: First, China has comprehensively sorted out administrati ve charges  nationwide at 
the level of central departments and units. Second, governments at provincial and 
municipal levels have comprehensively sorted out local administrative and undertaking 
charges. Third, charges in key areas have been specially sorted  out. Fourth, 
governmental funds have been comprehensively sorted out and regulated. Fifth, charges 
of governmental approval and intermediation services have been sorted out and 
standardized. Sixth, China has implemented the overall list management over ca talogue 
of items with charges. Based on the series of sorting -out measures, 496 items of 
administrative and undertaking charges and governmental funds have been cancelled, 
terminated or reduced up to now, and over thousands of items of administrative and 
undertaking charges of governments at provincial and municipal levels have been 
abolished or reduced. According to the statistics, the abovementioned measures can 
reduce RMB 150 billion each year for enterprises and individuals.  
México pregunta 80: De acue rdo a los impuestos mencionados en éste párrafo, con la finalidad de 
proteger el medio ambiente, ¿a qué bienes o servicios se les impone dicho impuesto?  
Reply:  In order to protect the environment, China levies resource tax on units and 
individuals engaged in resource exploitation within the territory of China. The current 
levying scope includes crude oil, natural gas, coal, other non -metal raw ores, ferrous 
metal raw ores, non -ferrous metal raw ores and salt. Meanwhile, China levies 
consumption tax on refin ed oil products, coating materials and other products that 
consume resources and pollute the environment.  
Preguntas 80 y 81. WT/TPR/S/342 • China; Informe de la Secretaría; 1 ENTORNO 
ECONÓMICO; 1.2 Política fiscal y reforma estructural; 1.2.2  Medidas de re forma 
estructural  
Página 24, párrafo 1.23: Se han adoptado medidas para desincentivar la producción en zonas en 
las que hay exceso de capacidad. De conformidad con la Circular del Consejo de Estado relativa a 
la publicación del catálogo de proyectos de inv ersión sujetos a aprobación gubernamental (versión 
de 2014) (Guo Fa [2014] N o. 53)4, los proyectos en industrias con exceso de capacidad, como las 
de hierro y acero, aluminio electrolítico, cemento, vidrio plano y embarcaciones, están ahora 
sujetos a la pr esentación de una solicitud a los gobiernos locales. Además, en la Circular se 
especifica que los proyectos mencionados están estrictamente sujetos a las Orientaciones del 
Consejo de Estado relativas a la corrección de la sobrecapacidad (Guo Fa [2013] N o. 41)5, con 
arreglo a las cuales las autoridades locales y los departamentos centrales no pueden aprobar 
nuevos proyectos que aumenten la capacidad en esos sectores.  
                                                
2 En 2015 se anularon, suprimieron o suspendieron 106 cargas administrativas centrales y cinco fondos 
gubernamentales, y se redujeron 17 niveles de cargas. Las autoridades estiman que esas medidas pueden 
reducir la carga para las empresas y los particulares en unos 57.000 millones de yuan al año.  
3 FMI (2015), Country Report N o. 15/234: People's Republic of China, 2015 Article IV Consultation , 
agosto de  2015. Consultado en: http://www.imf.org/external/pubs/ft/scr/2015/cr15234.pdf . 
4 Guo Fa [2014] No. 53, 31 de octubre de 2014. Consultado en: http://www.gov.cn/zhengce/content/ 
2014-11/18/content_9219.htm  (solo en chino).  
5 Guo Fa [2013] No. 41, 6 de octubre de 2013. Consultado en: http://www.gov.cn/zwgk/2013 -10/15/ 
content_2507143.htm  (solo en chino).  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 80: ¿Puede China explicar el alcance del comunicado (Guo Fa [2013] No. 41) 
Guiding Opinions of the State Council on Resolving Overcapacity?  
Reply: The No. 41 Document (Guiding Opinions on Resolving Overcapacity (Guo Fa 
[2013] No. 41) mainly targets industries with serious overcapacity issues such as steel, 
cement, electrolytic alu minium, plate glass, and vessels.  
México pregunta 81: ¿Puede compartir resultados sobre el combate a la sobrecapcidad a raíz de la 
publicación del comunicado (Guo Fa [2013] No. 41)?  
Reply: During the 12th Five -Year Plan period, in cumulative terms, over 90  million tons 
of crude steel capacity had been cut, the overcapacity situation in the electrolytic 
aluminium industry had improved with the rate of capacity utilization kept at above 
80%. Fixed -asset investment in the aluminium smelting industry registered  negative 
growth for three consecutive years, and the growth in productivity has slowed down. 
The measures put into place by China have delivered positive results. Next, relevant 
authorities and local governments will resolutely implement the requirementso f the 
documents.  
Pregunta 82. WT/TPR/S/342 • China; Informe de la Secretaría; 1 ENTORNO 
ECONÓMICO; 1.3 Evolución del comercio y de la inversión extranjera directa ; 
1.3.1  Comercio de mercancías  
Página 29, párrafo 1.40:  China es la mayor entidad comercial de l mundo (excluido el comercio 
entre los países de la  UE). Aunque en 2015 las exportaciones de mercancías aumentaron en más 
del 20% respecto de  2010, su participación en el PIB se redujo al 20,9%, en comparación con el 
26,7% en 2010. En  2015 las exportacion es se redujeron en el 2,9%, hasta alcanzar un valor de 
2,27 billones de dólares EE.UU.; las importaciones disminuyeron en el 14,2% con respecto 
de 2014, y su valor fue de 1,68 billones de dólares EE.UU. El superávit neto del comercio de 
mercancías de China  fue del  5,5% del PIB en 2015, al reducirse las importaciones de forma más 
acusada que las exportaciones. Las importaciones disminuyeron al 15,5% del PIB en 2015. En el 
contexto del presente examen, las autoridades han insistido en que China está aplicando  políticas 
para promover el desarrollo equilibrado del comercio exterior con medidas que favorezcan el 
consumo a fin de ampliar la demanda interna y, como consecuencia, las importaciones, al tiempo 
que se estabilizan las exportaciones.  
México pregunta 82: ¿Se pueden enlistar las políticas amigables al consumo para expandir la 
demanda interna?  
Reply: First, China has successively reduced the import duties of part of consumer goods 
since June 1st of the last year and January 1st of this year with an average r educed rate 
of 50% to commodities including western -styled clothes, woolen clothes, fur clothes, 
sneakers, skin -care products, paper diapers, bags and suitcases, towels, blankets, 
vaccum cups, and sunglasses. Second, China decides to establish imported dut y-free 
stores in 19 ports including Guangzhou Baiyun Airport, and it has publicized the policies 
of inbound duty -free stores in ports in February of this year that the type of 
commodities for sale has been expanded to milk powder, baby diapers and health f ood. 
Resident passengers on the premise of their duty -free limit of RMB 5,000 of inbound 
goods that remains unchanged are allowed to increase in inbound duty -free stores in 
ports a certain amount of duty -free shopping of no more than RMB 8,000 when added t o 
outbound duty -free shopping.  
Pregunta 83. WT/TPR/S/342 • China; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.1 Marco institucional y jurídico  
Páginas 35 y 36, párrafo 2.5. En el marco de la legislación nacional de China, la Constitución  
prevalece sobre cualquier otro instrumento jurídico, por debajo de ella se encuentran las leyes y 
los reglamentos administrativos (dictados por el Consejo de Estado); los reglamentos locales, los 
reglamentos autónomos y los reglamentos separados; las norm as departamentales (promulgadas WT/TPR/M/3 42/Add.1  
 
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  por los ministerios o departamentos exclusivamente a nivel del Gobierno central)6; y las normas 
locales (promulgadas por los gobiernos populares locales en las provincias, regiones autónomas o 
municipios dependientes directa mente del Gobierno central y el Gobierno popular de ciudades con 
distritos o prefecturas autónomas) (recuadro 2.1). Las normas y los reglamentos locales pueden 
variar entre las regiones debido a las características locales. A este respecto, las autoridades  han 
señalado que la Oficina de Asuntos Legislativos del Consejo de Estado examina las normas y los 
reglamentos locales para garantizar la coherencia normativa, e indica cuáles deben ser revisados o 
eliminados.7 Las zonas económicas especiales también pued en elaborar reglamentos, que pueden 
aplicarse en su jurisdicción, de conformidad con la Ley sobre la Legislación.  
México pregunta 83: De acuerdo con lo mencionado en este párrafo sobre la revisión de los 
reglamentos con el fin de determinar si se necesitan  revisar o eliminar, ¿cuál es el procedimiento 
que se lleva a cabo para modificar, eliminar y elaborar un nuevo reglamento?  
Reply: According to the Legislation Law of the People's Republic of China  and 
Regulations on Record -filing of Regulations and Rules , local regulations (including 
regulations in special economic zones, autonomous and separate regulations of 
autonomous prefectures and counties) formulated by People's  Congresses and their 
standing committees, and People's  Governments in provinces (autonom ous regions and 
municipalities directly under the central government) and cities with districts, and 
departments of the State Council shall be submitted for filing by the State Council in 
30 days as of the date of the promulgation. The Legal Affairs Office  of the State Council 
is available to either suggest correction by agencies that formulate regulations or bring 
forward opinions submitted for the decision of the State Council when finding 
contradictions between local regulations and administrative regula tions, inconsistency 
upon the stipulation to the same item by local regulations and rules of departments, and 
rules that exceed the authority, violate the laws and administrative regulations, and 
with inappropriate stipulations. Agencies that formulate reg ulations shall be in 
compliance with the Legislation Law of the People's Republic of China , Regulations on 
Procedures for Formulating Administrative Regulations , and Regulations on Procedures 
for Formulating Rules  when formulating new regulations or rules,  amending or 
abolishing old regulations or rules.  
Preguntas 84 a 86. WT/TPR/S/342 • China; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.2 Marco y objetivos de la política comercial; 
2.2.2  Formulación y objetivos de la política comercial  
Página 39, párrafo 2.13. Las autoridades han señalado que China seguirá aplicando su política de 
"apertura", centrándose en: la modernización de las industrias existentes, el desarrollo de 
industrias limpias y basadas en el conocimiento, y el sector de los  servicios. También han indicado 
que a China le sigue preocupando el exceso de capacidad de ciertas ramas de producción, la 
conservación de la energía y la protección del medio ambiente. A este respecto, las autoridades 
han señalado que están dirigiendo la  IED hacia las industrias emergentes, las industrias de alta 
tecnología, la conservación de la energía y la protección del medio ambiente. Estos objetivos han 
quedado reflejados en el último Catálogo de inversiones de  2015 -que promueve las inversiones en 
los sectores que necesitan capital, y desalienta y prohíbe las inversiones en los sectores con 
exceso de capacidad -, en la expansión de la Zona Franca Experimental (Shanghái) de China 
(CSPFTZ) (puesta en marcha en 2013) y en el establecimiento de otras zon as francas 
experimentales (en Guangdong, Tianjin y Fujian). Por medio de estos proyectos piloto, China está 
considerando, entre otras posibilidades, el establecimiento de un nuevo marco reglamentario para 
las inversiones extranjeras, basado en la concesión  del trato nacional previo al establecimiento 
(que no requiere aprobación en el momento del establecimiento) para las inversiones extranjeras 
en actividades no incluidas en una lista negativa.  
México pregunta 84: De acuerdo a lo establecido en este párrafo , ¿de qué manera se va a proteger 
al medio ambiente?  
                                                
6 Las normas departamentales se dictan para aclarar la aplicación de las leyes, los reglamentos 
administrativos, las decisiones o las órdenes del Consejo de Estado.  
7 La Oficina examina los reglamentos locales, las normas locales y las normas departamentales, para 
asegurarse de que no contravengan la Constitución, las leyes o los reglamentos administrativos, o sean 
incompatibles entre sí. Consultado en: http://www.chinalaw.gov.cn/article/jgzn/zyzn/ . WT/TPR/M/3 42/Add.1  
 
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  Reply: Enterprises shall comply with laws and regulations concerning environmental 
protection regardless of their scales, geographical locations and investment patterns, 
and authorities of environmental law enforcement shall carry out unbiased reviews and 
supervisions.  
México pregunta 85: ¿Puede China detallar si prevé mecanismos de apoyo para incentivar la 
inversión extranjera en industrias emergentes, de alta tecnología, energía y medio ambiente?  
México  pregunta 86: ¿Las industrias extranjeras pueden ser sujetas de mecanismos de apoyo para 
invertir en industrias emergentes, de alta tecnología, energía y medio ambiente?  
Reply: Please refer to the Program No.  6 No. 14 -26 and No. 68 -79 of China's  Notificati on 
on Subsidies at central government level for 2009 -2014 (G/SCM/N/220/CHN, 
G/SCM/N/253/CHN, G/SCM/N/284/CHN  for details.  
Pregunta 86. WT/TPR/S/342 • China; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.2 Marco y objetivos de la política c omercial; 
2.2.2  Formulación y objetivos de la política comercial  
Página 41, párrafo 2.24: Las principales leyes que rigen las inversiones extranjeras en China son la 
Ley de Sociedades8, modificada por última vez en 2013, y las tres leyes relacionadas 
específicamente con la IED: la Ley sobre empresas conjuntas con inversión de capital chino y 
extranjero, la Ley sobre empresas conjuntas cooperativas con capital chino y extranjero, y la Ley 
sobre empresas de propiedad exclusiva extranjera, así como sus reglam entos y normas 
administrativos conexos. El MOFCOM está revisando estas tres leyes para fusionarlas en un solo 
instrumento jurídico, el proyecto de Ley de Inversión Extranjera.9 
México pregunta 86: ¿Cuándo se tiene planeado que la nueva Ley de Inversión Ext ranjera entre en 
vigor?  
Reply: Foreign Investment Law of the People's Republic of China  (Draft for Public 
Comments)  drafted by the MOC in January, 2015 has been open for public opinions and 
the legislation is designed for a more stable, transparent and for eseeable legal 
environment for foreign investment. China in the next step will promote the 
promulgation of the Law as soon as possible in compliance with the existing legislative 
procedures, and theres no timetable for the Laws entry into effect for the pr esent.  
Pregunta 87. WT/TPR/S/342 • China; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.2 Marco y objetivos de la política comercial; 
2.2.2  Formulación y objetivos de la política comercial  
Página 41, párrafo 2.25. El Catálogo de industria s para la orientación de la inversión extranjera 
(Catálogo de inversiones), que se revisa periódicamente, es el principal instrumento de orientación 
de la IED en China. En el Catálogo se enumeran los sectores en los que se alienta, restringe o 
prohíbe la I ED. Los proyectos en los demás sectores están "permitidos".10 En general, los 
proyectos "alentados" (los que las autoridades están interesadas en fomentar) son los que utilizan 
mejor tecnología y son menos contaminantes, mientras que los sectores "restringi dos" son los que 
se considera que utilizan una tecnología obsoleta, sobreexplotan recursos naturales escasos o 
dañan el medio ambiente. Los proyectos "prohibidos" son los que contaminan el medio ambiente, 
destruyen los recursos naturales o son contrarios a  los intereses sociales o públicos. La Comisión 
Nacional de Desarrollo y Reforma (NDRC) y el MOFCOM publicaron una revisión conjunta del 
Catálogo de industrias para la orientación de la inversión extranjera para 2015 (Catálogo de 
                                                
8 Ley de Sociedades de la República Popular China (revisada en 2013). Consultada en: http://ww w.fdi. 
gov.cn/1800000121_39_4814_0_7.html . 
9 Ley de Inversión Extranjera de la República Popular China (proyecto para la formulación de 
observaciones públicas). Consultada en: http://tfs.mofcom.gov.cn/article/as/201501/20150100871010.shtml  
(en chino), y en: https://w ww.uschina.org/sites/default/files/2015 Draft Foreign Investment Law of the 
People%27s Republic of China_JonesDay_0.pdf  (en inglés).  
10 Disposiciones para la orientación de la inversión extranjera, de 11 de febrero de  2002. Consultadas 
en: http://www.mofcom.gov.cn/article/zt_swfg/subjectby/200612/20061204133533.shtml . WT/TPR/M/3 42/Add.1  
 
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  inversiones de  2015).11 El Catálogo de  2015 entró en vigor en abril de  2015 y reemplazó al 
de 2011. Se eliminó la cláusula del Catálogo de  2011 que establecía que, en caso de que el 
Consejo de Estado promulgara una disposición especial o una política industrial que estuviera en 
contradicción con el Catálogo, las disposiciones y políticas del Consejo de Estado prevalecerían. A 
este respecto, en el Catálogo de  2015 sólo se establece que las disposiciones de cualquiera de los 
acuerdos preferenciales o de libre comercio firmados por Chin a prevalecerán sobre el Catálogo.  
México pregunta 87 : ¿Podría China mencionar los logros concretos del Catálogo de inversiones de 
2015 (" Investment Catalogue" en inglés).  ¿Cómo ha beneficiado a la reducción de los niveles de 
contaminación?  
Reply: In the  Catalogue of the Guidance for Foreign Investment Industries revised in 
2015, the access limitations have been greatly reduced; services and general 
manufactures in key sectors have been more open; entries in the restricted category 
have been reduced by 50%; and entries with requirements of shareholding ratio have 
been reduced by 40%. China has fully implemented the administrative system of foreign 
investment projects featured by universal filing combined with limited verification, and 
over 95% of foreign inve stment projects have been filed. The Catalogue itself is made 
for foreign investment industries and thus of no direct relations with lowering the level 
of environmental pollution.  
Preguntas 88 y 89. WT/TPR/S/342 • China; Informe de la Secretaría; 2 RÉGIMEN  DE 
COMERCIO E INVERSIÓN; 2.5 Régimen de inversión extranjera; 2.5.3 Incentivos a la 
inversión extranjera  
Página 48, párrafo 2.46. También se otorgan incentivos a las empresas que importan tecnologías o 
productos que figuran en el Catálogo de tecnologías y  productos cuya importación se fomenta, 
actualizado por última vez en 2015 para reemplazar al Catálogo de  2011.12 El Catálogo, que el 
MOFCOM actualiza ocasionalmente, abarca la importación de diversas tecnologías avanzadas, 
equipo y componentes esenciales, productos de recursos esenciales y materias primas. Refleja la 
necesidad de China de obtener tecnologías básicas del exterior y de comprar equipo y 
componentes esenciales que actualmente no produce. En el Catálogo de  2009 se establece que las 
empresas que importan tecnologías o productos que figuran en el Catálogo se beneficiarán de un 
tipo de interés preferencial.13 No obstante, no se dan más detalles acerca del tipo de interés o el 
nivel de la reducción, que al parecer no son determinados por el Gobierno c entral; esta ayuda se 
financia mediante un fondo especial establecido por el Gobierno para promover el desarrollo 
económico y el comercio.14 Según las autoridades, actualmente no se aplica ninguna de estas 
políticas preferenciales.  
México pregunta 88:  Si no  están siendo instrumentados en China incentivos para la compra de 
tecnología extranjera, ¿a qué tipo de incentivos se refiere (que reconocen en su información 
financiera) las sociedades que cotizan en bolsas de Shanghai o Shenzhen y que se destacan para 
compra de activos fijos del extranjero o modernización?  
Reply: Please clarify the defintion of modernization, and scope foreign fixed assets.  
México pregunta 89: ¿Cuáles son los pasos que las empresas deben seguir para recibir estos 
incentivos?  
Reply: Plea se clarify the defintion of modernization, and scope foreign fixed assets.  
                                                
11 MOFCOM y NDRC, Catálogo de industrias para la orientación de la inversión extranjera de  2015 
(orden de modificación de  2015), Guo Fa [2015]  No. 22. Consultado en: http://www.mofcom.gov.cn/article/ 
b/c/201503/20150300911747.shtml  (en Chino).  
12 Catálogo de tecnologías y productos cuya importación se fomenta (2015). Consultado en: 
http://www.mofcom.gov.cn/article/difang/201508/20150801074747.shtml.  
13 Catálogo de tecnologías y productos cuya importación se fomenta (2009). Consultado en: 
http://www.sdpc.gov.cn/fzgggz/gyfz/zc fg/200908/t20090831_299031.html.  
14 Medidas administrativas sobre un fondo especial para el desarrollo de la economía y el comercio 
exterior, Cai Qi No.  36 [2014]. Consultado en: http://www.mof.gov.cn/zhengwuxinxi/caizhengwengao/ 
wg2014/ 201408wg/201503/t20150327_1208373.html  (en chino solamente).  WT/TPR/M/3 42/Add.1  
 
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  Pregunta 90. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.1 Proced imientos y requisitos aduaneros  
Páginas 51 a 53, párrafos 3.1 a 3.7.  
México pregunta 90: ¿Cuáles son los cambios en los procedimientos aduaneros en la República 
Popular de China?  
Reply: China Customs launched the reform of paperless customs clearance in 
August 2012. Both measures taken and pilot areas in the reform have been expanded to 
all sites and areas of business under China Customs since the day of April 1st, 2014 and 
the full coverage of the reform has been thus realized. The means of clearance has b een 
transformed from review, signature, circulation and interation based on paper clearance 
forms to the review of electronic data of clearance forms and accompanying documents; 
it enables information exchanges with enterprises based on electronic return r eceipts 
online. At the same time, China Customs has put into force an effective mode of 
clearance universally applied to enterprises that comply with the law and based on 
electronic accompanying documents by further optimizing clearance procedures, 
streaml ining clearance operations, clearing functions of departments, and strengthening 
the information interconnectivity of customs services.  
China Customs has launched the reform of customs clearance integration since the day 
of July 1st, 2014 in Beijing, Tianj in and Hebei, Changjiang River Economic Belt, four 
provinces in the Pan -Pearl River Delta, the Silk Road Economic Belt, and Northeastern 
China. Enterprises since the implementation of the reform have enjoyed more freedom 
in choosing places for declaration,  paying taxes and review and release, and in the mode 
of clearance; they are able to declare in the place where the enterprise is located for 
imports and exports across all frontiers of China Customs. The clearance has been thus 
much more convenient and en terprises are no longer in need of journeys between their 
locations and frontiers. In the past, it might take several days for enterpries to declare, 
transport and be allowed for release when their locations and corresponding frontiers 
are not in one place  while now they need only half a day since all procedures can be 
done near their locations, which indicates higher clearance efficiency, lower costs of 
logistics, and the co -generation of economic and social profits. Besides, since the 
clearance informatio n has been shared, law enforcement mutually assisted, and the 
clearance result mutually recognized between regional customs, enterprises feel 
themselves facing the same customs when clearing clearance procedures at any 
customs in the region. In other words , multiple customs are working as one.  
Preguntas 91 a 95. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.1 Procedimientos y requisitos aduanero s 
Página 52, párrafo 3.3. Los importadores (y exportadores) 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 exportación 
sujetas a inspección reglamentaria.15 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.16 
México pregunta 91: ¿Qué mecanismo tiene la Administración Estatal General de Supervis ión de la 
Calidad, Inspección y Cuarentena de China ( AQSIQ) para atender las preguntas de los interesados 
en estándares y/o procesos administrativos con dicha entidad?  
                                                
15 Anuncio Nº 146 [2014] de la GAC y la AQSIQ. Consultado en: http://www.aqsiq.gov.cn/xxgk_ 
13386/jlgg_12538/zjgg/2014/201501/t20150106_429636.htm  (solo en chino).  
16 Reglamento de aplicación de la Ley de la República Popular China sobre inspección de los p roductos 
de importación y exportación, Orden Nº 447 del Consejo de Estado. Consultado en: http://www.asianlii.org/cn 
/legis/cen/laws/irftlotprocoioiaec1072 . WT/TPR/M/3 42/Add.1  
 
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  Reply: Letters can be sent to AQSIQ to communicate issues concerning supervision, 
inspec tion and quarantine.  
México pregunta 92: ¿Puede China aclarar el concepto de seguridad nacional y referir la legislación 
interna que lo define para efectos del Catálogo de Importación y Exportación de Productos Básicos 
sujetos a Inspección Obligatoria ( "Catalogue of Import and Export Commodities Subject to 
Compulsory Inspection" )? 
Reply: As is stipulated in the Article IV of the Law on Import and Export Commodity 
Inspection of the People's Republic of China , the import and export of commodity shall 
be imple mented through the formulation and adjustment made to the Catalogue for 
Import and Export Commodity(hereinafter referred to as the Catalogue) by  the State 
administration for commodity inspection in line with the principles of protecting the 
health and secu rity of mankind, protecting life and health of animals and plants, 
protecting environment, preventing frauds, and safeguarding the national security.  
The concept of National Security echoes the relevant WTO regulations. As is stipulated in 
the Agreement on  Technical Barriers to Trade (TBT), the measures of technical barriers 
to trade by any country shall be confined within the limit as is necessary to ensure the 
national security, prevent frauds, protect the health and security of mankind, protect life 
and health of animals and plants, and protect the environment. This principle of 
confirming the scope of imports and exports complies with the requirements of the TBT 
by WTO.  
México pregunta 93: ¿Puede China detallar el mecanismo de integración del Catálogo de  
Importación y Exportación de Productos Básicos sujetos a Inspección Obligatoria?  
Reply: Import and export enterpries shall first apply inspection to the institutions of 
inspection and quarantine before the export/import of commodities listed in the 
Catalo gue subject to compulsory inspection and quarantine. After the commodities have 
been approved qualified from inspection and quarantine, the institutions of inspection 
and quarantine shall sign and issue the clearance form, by which the enterprise declares 
for export/import at the Customs. Commodities approved qualified from inspection and 
quarantine shall be available for sale and use.  
México pregunta 94: ¿El Catálogo de Importación y Exportación de Productos Básicos sujetos a 
Inspección Obligatoria se apli ca a los cinco niveles de gobierno de China?  
Reply: The Catalogue is applied to all cross the country.  
México pregunta 95: ¿China prevé un mecanismo de defensa en caso de disputas comerciales 
derivadas de la aplicación del Catálogo de Importación y Exporta ción de Productos Básicos sujetos 
a Inspección Obligatoria?  
Reply: There has been no trade -related disputes in implementing the Catalogue of 
Import and Export Commodities Subject to Compulsory Inspection , and please further 
clarify this question.  
Preguntas  96 a 97. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.1 Procedimientos y requisitos aduaneros  
Página 53, párrafo 3.7. China ha proseguido s us esfuerzos de armonización de los procedimientos 
aduaneros en sus  42 zonas aduaneras. Sin embargo, siguen existiendo "zonas especiales bajo 
supervisión aduanera", que se rigen por diferentes reglamentos, a pesar de las orientaciones 
publicadas por el Con sejo de Estado en 2012, en las que se pedía la unificación de las normas 
aplicadas en esas zonas.17 China también aplica diferentes procedimientos aduaneros en 
                                                
17 Guo Fa [2012] N o. 58, Orientaciones del Consejo de Estado acerca de la promoción del desarrollo 
científico en las zonas especiales bajo supervisión aduanera. Consultadas en: http://www.gov.cn/zwgk/2012 -
11/02/content_2256060.htm . WT/TPR/M/3 42/Add.1  
 
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  determinadas zonas, a veces con carácter experimental, para determinar su eficacia.18 Más 
reciente mente, en 2014, China empezó a promover la integración de las zonas aduaneras con el 
fin de armonizar los procedimientos de despacho. Según las autoridades, se ha llevado a cabo esa 
integración entre las  42 zonas aduaneras para crear cinco grupos: en Beiji ng/Tianjin/Hebei19, las 
provincias del Río de las Perlas20, y el Cinturón Económico del Río Yangtsé.21 
México pregunta 96: ¿Puede China explicar los sistemas de supersión especiales que tiene 
actualmente, mencionar cuáles son y si tiene previsto mantenerlos o  eliminarlos próximamente?  
Reply: According to the requirements of Guiding Opinions of the State Council on 
Promoting the Scientific Development in Special Customs Supervision Area (Guo Fa 
[2012] No.  58) and Notice of General Office of the State Council on  Issuing the Scheme 
of Accelerating the Integration and Optimization of Special Custom Supervision Zones 
(Guo Ban Fa [2015] No.  66), export processing zones, bonded logistics zones, cross -
border industrial zones, bonded port zones and eligible bonded zones  will be gradually 
integrated into comprehensive bonded zones. The new special customs supervision 
areas will be named as comprehensive bonded zone.  
México pregunta 97: ¿Dada la posible divergencia en criterios así como procesos administrativos 
en las adua nas de China, que medidas ha tomado el gobierno chino para informar a los 
interesados en conocer información específica que les evite contratiempos en sus operaciones de 
comercio exterior?  
Reply: According to the Custom Law, the General Administration of C ustoms (GAC) 
administrates all customs throughout the country in a unified manner. The legal basis of 
the customs procedures applied to each custom area and port is the Customs Law, the 
regulations issued by GAC and relevant normative documents, which are unified. The 
General Administration of Customs of the PRC sets up the columns of Laws and 
Regulations and Policy Interpretation in its portal website ( www.customs.gov.cn  ) and 
the enterprises can search the policie s of customs. In addition, The General 
Administration of Customs opens 24 -hour service hotline "12360" and the enterprises 
can consult by telephone.  
Preguntas 98 a 100. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, PO R MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.4 Aranceles; 3.1.4.1 Aranceles aplicados y estructura arancelaria  
Páginas 54 y 55, párrafo 3.12. Los tipos establecidos en los acuerdos se aplican a los productos 
importados de los p aíses y territorios aduaneros con los que China ha concertado acuerdos 
comerciales preferenciales (sección 2). Los tipos preferenciales especiales constituyen preferencias 
unilaterales que se aplican a las importaciones originarias de los países menos adel antados con los 
que China ha concluido un acuerdo comercial.22 Los tipos generales se aplican a los productos cuyo 
                                                
18 Decreto Nº 209 de la GAC, de 27 de junio de  2013, Medidas de supervisión aduanera en la nueva 
zona de Hengqin, consultado en: http://www.customs. gov.cn/publish/portal0/tab49660/info623256.htm ; y 
Decreto Nº  208 de la GAC,  de 27  de junio de  2013, Enfoque normativo de la GAC sobre la Amplia Zona 
Experimental de Pingtan (proyecto), consultado en: http://www.customs.gov.cn/publish/portal0/tab49660/ 
info623257.htm  (solo en chino).  
19 Anuncio Nº  45 [2014] de la GAC, Reforma para la integración del despacho de aduana en Beijing, 
Tianjin y Hebei, consultado en: http://www.customs.gov.cn/publish/portal0/tab49661/info710895.htm ; y 
Anuncio Nº 68 [2014] de la GAC, Reforma para la integración del despacho de aduana en Shijiazhuang, 
consultado en: http://www.customs.gov.cn/publish/portal0/tab49661/info718634.htm  (solo en chino).  
20 Anuncio Nº 66 [2014] de la GAC, Reforma para la integración del despacho de aduana en la provi ncia 
de Guangdong. Consultado en: http://www.customs.gov.cn/publish/portal0/tab49661/info718158.htm  (solo en 
chino).  
21 Anuncio Nº 84 [2014] de la GAC, Reforma para la integra ción del despacho de aduana en el Cinturón 
Económico del Río Yangtsé. Consultado en: http://www.customs.gov.cn/publish/portal0/tab49661/info 
725557.htm  (solo en chino).  
22 Afganistán; Angola; Bangladesh; Benin; Burundi; Camboya; Chad; Comoras; Djibouti; Eritrea; 
Etiopía; Guinea; Guinea Ecuatorial; Guinea -Bissau; Lesotho; Liberia; Madagascar; Malawi; Malí; Mauritania; 
Mozambique; Myanmar; Nepal; Níger; República Centroafricana;  República Democrática del Congo; Rwanda; 
Samoa; Senegal; Sierra Leona; Somalia; Sudán; Sudán del Sur; Tanzanía; Timor -Leste; Togo; Uganda; 
Vanuatu; Yemen y Zambia (Ministerio de Hacienda de la República Popular China (2015), Arancel Aduanero de 
Importació n y Exportación de la República Popular China, 2015, Beijing, China).  WT/TPR/M/3 42/Add.1  
 
- 321 - 
 
  origen no puede determinarse, a los productos procedentes de países que no han concertado un 
acuerdo comercial recíproco con China, a los país es que no son miembros de la OMC, y a algunos 
territorios de los Estados miembros de la UE. Según las autoridades, cuando un país aparece en 
varias listas y puede estar sujeto a diversos tipos, se le aplica el más favorable, teniendo en 
cuenta las normas d e origen. Los derechos provisionales los fija anualmente la Comisión 
Arancelaria del Consejo de Estado y habitualmente se aplican del 1º de enero al 31 de diciembre 
de cada año. Esos derechos se aplican en régimen NMF y sustituyen a los derechos NMF para l as 
líneas afectadas. Los tipos de los derechos provisionales son inferiores a los tipos NMF y, en 
algunos casos, solamente se aplican a una parte de una línea arancelaria.  
México pregunta 98:  ¿Puede China citar la legislación que prevé el mecanismo para fi jar tarifas de 
importación temporales anuales?  
Reply: The interim tariff rates are determined according to the Customs Law of the 
People's Republic of China  and Regulations of the People's Republic of China on Import 
and Export Duties . 
México pregunta 99: ¿Puede China explicar el procedimiento legislativo interno y autoridades que 
intervienen?  
Reply: The State Council Tariff Commission (SCTC) proposes recommendations on the 
adjustment of interim duty rates, which can be implemented upon approval of the Stat e 
Council. The SCTC is composed of the MOF, the NDRC, the MOC, the MIIT, the Ministry of 
Land and Resources (MLR), the Ministry of Agriculture (MOA), GAC, GAT, AQSIQ, and the 
Legal Affairs Office of the State Council.  
México pregunta 100: ¿Puede China cita r los criterios que se siguen para fijar tarifas de 
importación temporales anuales?  
Reply: The interim tariff rates are determined according to the Customs Law of the 
People's Republic of China  and Regulations of the People's Republic of China on Import 
and Export Duties . 
Pregunta 100. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.8 Normas y otras prescripciones técnicas; 3.1.8.1 Normas y 
reglam entos técnicos  
Página 71, párrafo 3.61. En China, la gestión del sistema de normalización está centralizada en la 
Administración de Normalización de China (SAC), que depende de la Administración Estatal 
General de Supervisión de la Calidad, Inspección y Cu arentena de China (AQSIQ). En términos 
generales, la SAC se encarga de la coordinación general y la gestión unificada del sistema nacional 
de normalización, así como de la elaboración de las políticas y estrategias nacionales de 
normalización. También se o cupa de aprobar, numerar y publicar las normas nacionales, tanto 
voluntarias como "obligatorias" (que es como se denominan los reglamentos técnicos en China). 
En el desempeño de sus funciones y actividades, la SAC cuenta con la colaboración de la Comisión 
Nacional de Desarrollo y Reforma (NDRC), la Administración Estatal de Productos Alimenticios y 
Farmacéuticos, la Asociación China de Normas (CAS), varios ministerios, y las asociaciones de 
normalización locales y sectoriales.23 La CAS y algunas otras ONG af iliadas a la AQSIQ, como el 
Instituto Nacional Chino de Normalización (CNIS), prestan apoyo a la SAC y a otras instituciones 
en la elaboración de las normas mediante la investigación y la cooperación internacional 
encaminadas a promover la utilización de m ejores prácticas internacionales al elaborar las normas 
                                                
23 Tanto las empresas nacionales como las empresas con inversión extranjera registradas pueden 
participar en actividades nacionales de normalización. Deben presentar una solicitud para pa rticipar en el 
comité técnico correspondiente, conforme a lo establecido en las Disposiciones Administrativas sobre el Comité 
Técnico Nacional de Normalización Profesional (Guo Biao Wei Ban [2009]  No. 3). Las Disposiciones, el 
formulario de registro para l os miembros del Comité Técnico Nacional de Normalización y demás información 
pertinente sobre el Comité Técnico pueden consultarse en: http://www.sac.gov.cn/  (documento 
G/TBT/M/300/Add.1 de la  OMC, de 9 de septiembre de 2014).  WT/TPR/M/3 42/Add.1  
 
- 322 - 
 
  en China.24 La CAS también se ocupa de informar sobre la utilización y aplicación adecuadas de las 
normas.  
México pregunta 100: ¿Cómo promueve China el uso de mejores prácticas internacionales en el 
desarrollo de normas o estándares en su territorio?  
Reply: The revision of the  Standardization Law  fully absorbs the practical experience of 
standardization management in foreign countries. For example, legal status of Group 
Standard is determined. The socia l groups can formulate Group Standard according to 
the market requirements.  
Preguntas 101 y 102. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1 .8 Normas y otras prescripciones técnicas; 3.1.8.1 Normas y 
reglamentos técnicos  
Página 72, párrafo 3.64. La Ley sobre Normalización (1988) y el Reglamento de aplicación de la 
Ley sobre Normalización  (1990) siguen constituyendo la principal legislación en materia de normas 
en China. No obstante, existen otros textos legislativos que afectan a las normas y los 
reglamentos técnicos. El Reglamento de control de los dispositivos médicos revisado (Decreto 
No. 650 del Consejo de Estado), que entró en vigor el 1o de junio de  2014, introdujo varios 
cambios en esta esfera, destinados principalmente a reforzar la supervisión y la seguridad. Estos 
cambios comprendían: la revisión de la definición y las normas de clasificación de los dispositivos 
médicos, y mejoras del sistema de aprobación o registro de productos y de su producción, que 
ahora permite registrar los productos antes de que se conceda una licencia de producción. 
Además, actualmente los dispositivos médicos de primera categoría se pueden registrar en los 
organismos reguladores de productos alimenticios y farmacéuticos a nivel local o municipal, en 
lugar de a nivel provincial como se hacía anteriormente; con esto se espera facilitar el 
procedimiento. El Reglamento revisado también ha reforzado el control del u so de dispositivos 
médicos, al exigir la puesta en aplicación de sistemas para la vigilancia de incidentes adversos 
relacionados con dispositivos médicos, de rastreabilidad y de retirada de dispositivos, y el imponer 
sanciones más severas por los actos ile gales.  
México pregunta 101: ¿Existen enmiendas o proyectos de enmiendas a la Ley sobre Normalización 
(Standardization Law ) de 1988, o a las Reglamento de aplicación de dicha Ley ( Regulations for the 
Implementation of the Standardization Law ) de 1990?  
Reply : The Revised Draft of the Standardization Law  (Exposure Draft) was released on 
the website of legal information of the Chinese government ( http://www.zgfzxxw. 
com/index.html ) on March  22, 2016.  
México pre gunta 102:  ¿Podría China dar mayores detalles sobre la introducción de sistemas de 
monitoreo de los efectos adversos de los dispositivos médicos, su rastreabilidad y la imposición de 
sanciones por actos ilegales?  
Reply: 1. Regarding the monitoring system o f medical device adverse events, the 
Regulations for Monitoring and Re -evaluation of the Adverse Events (Trial)  was issued in 
2008, which is a fundamental regulation for standardizing the monitoring work of 
medical device adverse events in China. After sev eral years of efforts, a monitoring 
system of medical device adverse events including the national, provincial and municipal 
monitoring technology institutions of medical device adverse events has been 
                                                
24 La CAS es una asociación pública nacional de organizaciones y personas que participan en la 
normalización voluntaria en todo el territorio de China. Cuenta con la autorización del Ministerio de Asuntos 
Civiles y está encabezada por la AQSIQ. Su s principales actividades son: la investigación en materia de 
políticas, leyes y reglamentos relativos a la normalización; el suministro de servicios de certificación; y la 
divulgación de conocimientos sobre la normalización. El CNIS es un organismo nacion al de investigación sin 
fines de lucro afiliado a la AQSIQ, que participa en las actividades de investigación en materia de normalización 
y cuyas principales funciones son realizar investigaciones estratégicas y amplias sobre la normalización, hacer 
estudi os con miras a elaborar una gama de normas fundamentales, y suministrar servicios de información 
autorizada sobre las normas. Asociación China de Normas, consultado en: http://www.chinacsrma p.org/Org_ 
Show_EN.asp?ID=539 ; e Instituto Nacional Chino de Normalización, consultado en: http://en.cnis.gov.cn/faq/ 
201305/t20130527_14361.shtml . WT/TPR/M/3 42/Add.1  
 
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  established preliminarily. 2. Regarding the recall sys tem, Regulations for Medical Device 
Recall was issued in 2011, which stipulates the recall of medical device and sets up the 
recall system. 3. Regarding the traceability system, it is provided in the regulations of 
quality control of medical device product ion and management and the  Regulations of 
Quality Supervision and Management of Medical Device Use  that the enterprises and the 
units using the medical device should establish related records to meet the requirement 
of traceability. 4. Regarding the punish ment measures, the related illegal behavio urs 
shall be punished according to the regulations such as the Regulations of Supervision 
and Management of Medical Device . 
Pregunta 103. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COME RCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.8 Normas y otras prescripciones técnicas; 3.1.8.1 Normas y 
reglamentos técnicos  
Página 72, párrafo 3.65. El procedimiento de formulación de normas nacionales se establece e n las 
Medidas relacionadas con la administración de las normas nacionales, Orden N o. 10 de 
24 agosto  de 1990.25 En China, la normalización forma parte de la política del Gobierno destinada 
a tomar en cuenta las necesidades de las diferentes industrias. El p roceso de formulación 
corresponde en su mayor parte a organismos públicos, mientras que la rama de producción 
respectiva desempeña una función de apoyo. La Administración de Normalización de China 
organiza la elaboración de las normas nacionales mediante u n proceso que consiste en varias 
etapas: una etapa previa de investigación, la iniciación del proyecto, la redacción del proyecto de 
norma, la solicitud de opiniones, el examen de los contenidos técnicos, la aprobación y la 
publicación. Las normas nacional es se publican en China Standard Press. Se examinan cinco años 
después de su puesta en aplicación para comprobar si siguen siendo válidas y necesarias en su 
forma actual, o si deben modificarse o anularse. Si se decide derogar la norma, se publica un aviso  
de anulación. En el caso de que la norma se mantenga, se publicarán los resultados del examen, y 
cualquier modificación de la norma figurará en el plan de elaboración o revisión de normas 
nacionales.  
México pregunta 103: ¿En qué consiste la etapa rpevia d e investigación (" pre-research stage " en 
inglés) en la elaboración de las normas nacionales a cargo de la Administración de Normalización 
de China  (SAC)?  
Reply: The pre -research stage focuses on collecting the requirements for standards of 
different commun ities. A draft of standards will be proposed through research 
demonstration and prepared for the approval of SAC. The stage is mainly organized and 
completed by the technical committee.  
Pregunta 104. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTI CAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.8 Normas y otras prescripciones técnicas; 3.1.8.1 Normas y 
reglamentos técnicos  
Páginas 72 y 73, párrafo 3.67. Las normas chinas se dividen en normas ob ligatorias y normas 
voluntarias. Las normas obligatorias son reglamentos técnicos. Se refieren principalmente a la 
protección de la salud y la vida de las personas y de la seguridad de la propiedad, y generalmente 
son aplicables a los medicamentos, la inoc uidad de los alimentos, los medicamentos veterinarios y 
los plaguicidas; la seguridad en el trabajo y en el transporte; la construcción; las emisiones en el 
medio ambiente; y la terminología técnica. Cuando se elabora un reglamento técnico, debe 
establecer se que éste constituirá una norma obligatoria. A tal fin, en el caso de las normas 
nacionales, en la etapa de iniciación del proyecto, el organismo de normalización recurre a 
expertos para que dictaminen sobre la necesidad y viabilidad del carácter obligat orio de la norma 
propuesta y se determina de qué tipo de norma se tratará. Luego, el procedimiento de elaboración 
y publicación de una norma difiere un poco del de un reglamento técnico: en la etapa del examen 
técnico, las normas obligatorias deben someter se a un examen público mediante la celebración de 
reuniones, y el plazo para la presentación de observaciones no puede durar menos de dos meses. 
Asimismo, antes de su aprobación, las normas obligatorias que afectan al comercio y no derivan 
                                                
25 Orden No.  10, de 24 de agosto de  1990. Consultado en: http://www.csms.org.cn/fagui/fagu 
i_03.html . WT/TPR/M/3 42/Add.1  
 
- 324 - 
 
  de la adopción ( sin modificaciones) de una norma internacional, deben notificarse a la OMC. En 
principio, las normas voluntarias no pueden convertirse en obligatorias, ya que el carácter de la 
norma se habrá determinado al inicio del proceso de elaboración. No obstante, e n un reglamento 
técnico se puede hacer referencia a una norma (voluntaria), lo que da a esta carácter obligatorio. 
Los organismos gubernamentales, como la Comisión Nacional de Desarrollo y Reforma y el 
Ministerio de Industria y Tecnología de la Información , tienen la facultad de aprobar y promulgar 
reglamentos técnicos que pueden hacer referencia a normas voluntarias, confiriendo así a estos 
carácter obligatorio.  
México pregunta 104: Al indicar que las normas son archivadas en el Archivo Nacional de Normas 
("National Library of Standards" , en inglés), y que esto no es obligatorio, para coordinar las 
normas existentes, ¿se cuenta con una base datos en medios electrónicos con todas las normas de 
la industria o sectoriales (" industry/sectoral ")? O bien, ¿cuál e s el criterio para definir si las normas 
industriales se archivan o no en el Archivo Nacional de Normas?  
Reply: National Library of Standards collects a full set of the paper editions of the 
Chinese National Standards and Chinese Industry Standards and mak es bibliography for 
all standards to form a bibliographic database of standards. The portal website of the 
sharing service platform of national standards literature ( http://www.cssn.net.cn ) 
provides free search. Curre ntly, National Library of Standards does not have the full text 
electronic database of Chinese National Standards and Chinese Industry Standards.  
Pregunta 105. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS ; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.4  Controles de precios  
Página 104, párrafo 3.166. En caso necesario, China continúa aplicando controles de precios a los 
bienes y servicios considerados de importancia directa para la economía na cional y los medios de 
subsistencia de la población. Los controles de precios son establecidos por la NDCR a nivel central, 
y por las comisiones provinciales de desarrollo y reforma y la Oficina de Precios de los Productos 
en cada provincia.26 
Página 104, p árrafo 3.167. Los controles de precios son de dos tipos: "precios gubernamentales" o 
"precios orientados por el Gobierno". Los precios gubernamentales (o precios determinados por el 
Gobierno) son precios fijos establecidos por las autoridades, mientras que  los precios orientados 
por el Gobierno son precios que varían dentro de una banda determinada. Los bienes y servicios 
sujetos a controles de precios se enumeran en el Catálogo de precios establecidos por el Gobierno 
central y en los catálogos de precios e stablecidos por los gobiernos locales de las provincias, las 
regiones autónomas y los términos municipales, y aprobados por la NDRC.  
México pregunta 105: ¿Podría China aclarar si existe algún programa o calendario para la 
liberalización de los precios que actualmente se encuentran vigentes?  
Reply: China has formulated and issued Several Opinions on Promoting the Reform of 
Price Mechanism , which defines that the prices in the competitive fields and segments 
will be open in 2017, and the scope of government p ricing will mainly be restricted to 
the areas such as the important public utilities, public welfare service and network -
based natural monopoly segments. The mechanism of determining price by market will 
be basically mature by 2020.  
Pregunta 106. WT/TPR/S /342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.4  Controles de precios  
Página 106, párrafo 3.170. Los gobiernos locales pueden también publicar reglamentos  para 
establecer precios controlados u orientados (cuadro 3.16). En las principales zonas productoras de 
                                                
26 Pueden imponerse precios orientados o precios fijados por el Gobierno a los productos que tengan 
importancia significativa para el desarrollo económico nacional y los medios de subsistencia de la población, 
que sean raros o constituyan monopolios naturales, o que se consideren servicios públicos esenciales o de 
interés público (artículo 18 de la Ley de Precios de  1998).  WT/TPR/M/3 42/Add.1  
 
- 325 - 
 
  cereales (siete provincias para el arroz y seis provincias para el trigo) siguen en vigor precios de 
compra mínimos para el arroz (sin descascarillar) y el trigo.  
¿Podría China confirmar si existe algún mecanismo que permita unificar los criterios a través de los 
cuales los gobiernos locales emiten regulaciones para establecer precios controlados o guiados?  
Pregunta 106. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.4  Controles de precios  
Página 106, párrafo 3.170. Los gobiernos locales pueden también publicar reglamentos para 
establecer precios controlados u orientados (cuadro 3.16). En las principales zonas productoras de 
cereales (siete provincias para el arroz y seis provincias para el trigo) siguen en vigor precios de 
compra mínimos para el arroz (sin descascarillar) y el trigo.  
México pregun ta 106:  ¿Podría China confirmar si existe algún mecanismo que permita unificar los 
criterios a través de los cuales los gobiernos locales emiten regulaciones para establecer precios 
controlados o guiados?  
Reply: The Price Law  and the pricing catalogues by the central and local governments.  
Pregunta 107. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.5 Comercio de Estado y empresas públicas; 3.3.5.1 Comercio de Estado  
Página 108, párrafo 3.174. Los productos de exportación sujetos a comercio de Estado y las 
empresas encargadas del comercio de esos productos no han cambiado desde el último examen. 
En 2015 estaban sujetas a comercio de Estado las export aciones de arroz, maíz, algodón, carbón, 
petróleo crudo y elaborado, mineral de tungsteno y sus productos, mineral de antimonio y sus 
productos, plata y tabaco (cuadro 3.18). Según las autoridades, el volumen de exportaciones 
sujetas a comercio de Estado, al igual que los precios de exportación, se determinan teniendo en 
cuenta las señales del mercado, sin que haya intervención del Gobierno27, y la asignación de las 
exportaciones entre las empresas comerciales del Estado se basa también en principios de 
mercado. 
México pregunta 107:  ¿Existen lineamientos que permitan definir el volumen de exportaciones de 
los productos mencionados en este párrafo?  
Reply: Please refer to China's  notification on State -trading Enterprises for the period of 
2003 -2014 (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  G/STR/N/15/CHN) . 
Pregunta 108. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.5 Co mercio de Estado y empresas públicas; 3.3.5.2 Empresas públicas  
Páginas 111 y 112, párrafo 3.179. En caso necesario, las empresas públicas pueden recibir 
inyecciones de capital del Gobierno.28 En 2014, un total de 2.473 empresas cotizadas en las bolsas 
de Shanghái y Shenzhen recibieron apoyo gubernamental por valor de 89.421 millones de yuan 
(en comparación con 75.783 millones de yuan en 2012).29 De esas empresas, 154 recibieron más 
de 100 millones de yuan en 2014 y, de ellas, 105 eran empresas públicas. Adem ás, de las 
10 empresas que recibieron más ayuda en 2014 (por un total de 17.306 millones de yuan), 
nueve  eran empresas públicas (cuadro 3.22).  
                                                
27 Documento  G/STR/N/10/CHN -G/STR/N/15/CHN de la OMC, de 19 de octubre de  2015.  
28 OMC (2012), Examen de las Políticas Comerciales - China , Ginebra.  
29 Información en línea de SINA Corporation. Consultado en: http://finance.sina.com.cn/stock/s/ 
20150430/005922077076.shtml . WT/TPR/M/3 42/Add.1  
 
- 326 - 
 
  México pregunta 108:  ¿Cuáles son los criterios que se emplean para definir si una empresa estatal 
o privada que c otiza en la bolsa de valores de Shanghai o Shenzhen requiere una inyección de 
capital?  
Reply: In the 1990s, China cancelled relevant subsidies enjoyed by state -owned 
enterprises through fiscal and tax reforms. Currently, there are no provisions on 
subsidie s tailored with state -owned enterprises in the laws and regulations in China.  
Preguntas 109 y 110. WT/TPR/S/342 • China; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3 .6 Contratación pública  
Página 114, párrafo 3.187. La Ley de Contratación Pública contiene una disposición sobre la 
compra de productos nacionales (artículo 10) a la que no afectó la modificación de  2014. Así pues, 
el Gobierno debe contratar bienes, proyec tos de construcción y servicios nacionales, con las 
excepciones siguientes: i) cuando los bienes, los proyectos de construcción y los servicios 
requeridos no están disponibles en China o, si lo están, no pueden adquirirse en condiciones 
comerciales razonab les; ii) cuando los bienes, los proyectos de construcción y los servicios se 
adquieren para su uso en el extranjero; o iii) cuando se dispone otra cosa en otras leyes y 
reglamentos administrativos. No se han establecido criterios para determinar lo que son  productos 
nacionales ni disposiciones sobre contenido nacional. En respuesta a las observaciones formuladas 
por los Miembros durante su anterior examen, China afirmó que, en la práctica, el Gobierno 
aplicaba un régimen de contratación pública igual y no d iscriminatorio a los productos fabricados 
por empresas con financiación nacional y empresas con financiación extranjera dentro del territorio 
de China, y que era frecuente que el Gobierno adquiriese productos extranjeros, aunque no se 
disponía de estadísti cas a ese respecto. Además, el artículo 8 de la Orden del Ministerio de 
Hacienda Nº 18, de 11 de agosto de  2004, establece que los proveedores que participen en 
concursos para suministrar bienes o servicios deben ser proveedores nacionales que suministren 
bienes o servicios nacionales. Para adherirse al ACP, China tendría que modificar las prescripciones 
legales sobre utilización de fuentes de abastecimiento nacionales para contratos de valor superior 
a los umbrales previstos en el ACP.  
México pregunta 109:  ¿Planea China contar con una base de datos que contenga estadísticas sobre 
compras de productos extranjeros?  
Reply: China has yet to adopt any standard to define the domestic and foreign products 
with no consideration for the establishment of statistical database for government 
procurement.  
México pregunta 110: ¿Qué mecanismos cuentan los procesos de compras de gobierno en China 
para controlar un proceso imparcial y transparente?  
Reply: in order to ensure fairness and transparency in the government procure ment, the 
Chinese Government mainly focuses on following tasks. First, to construct a system 
featuring mutual check and balance. Second, to build an open and transparent channel 
of system. Third, to establish an operating mechanism featured by justice and equity. 
Fourth, to build efficient mechanism for the rights relief of suppliers. Fifth, to carry 
forward transparent and efficient electronic procurement. Sixth, to improve government 
procurement regulation mechanism.  
Preguntas 111 y 112. WT/TPR/S/342 • Ch ina; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Contratación pública  
Página 117, párrafo 3.203. China no ha firmado hasta la fecha acuerdos bilaterales o regional es 
sobre acceso a los mercados de contratación pública.30 
                                                
30 El acuerdo con Suiza contiene disposiciones relativas al intercambio de información sobre contratación 
pública.  WT/TPR/M/3 42/Add.1  
 
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  México pregunta 111: ¿Qué consideraciones ha tomado el gobierno de China para no negociar 
acceso a los mercados en contratación pública?  
Reply: To sign Agreement on Market Access of Government Procur ement shall be based 
on negotiations, and China has been holding negotiations over accession to GPA since 
the year of 2007 with a view to signing GPA.  
México pregunta 112: ¿Tiene China planeado firmar algún acuerdo bilateral o regional sobre 
acceso a los m ercados en contratación pública?  
Reply:  China is holding negotiations on the signing of GPA and the bilateral negotiation 
on government procurement market access depends on the intentions from both sides.  
Pregunta 113. WT/TPR/S/342 • China; Informe de la S ecretaría; 4 POLÍTICAS 
COMERCIALES, POR SECTORES; 4.1 Agricultura; 4.1.2 Objetivos y administración de las 
políticas; 4.1.2.1 Formulación de las políticas y marco institucional y jurídico  
Página 133, párrafo 4.2. Los objetivos de política más generales dec larados en el Undécimo Plan 
Quinquenal (2006 -2010) y en el Duodécimo Plan Quinquenal (2011 -2015) de acelerar la 
modernización del sector para mejorar el bienestar de los agricultores se han reiterado en el 
Documento Nº  1 de 201531 del Comité Central del Par tido Comunista de China y en la Propuesta 
del Partido Comunista de China para la formulación del Decimotercer Plan Quinquenal (2016 -
2020).32 Este último está encaminado a modernizar el sector mediante su mecanización y a 
promover el desarrollo de las operac iones de escala media para incrementar la productividad, a 
profundizar la reforma de los derechos contractuales sobre la tierra y de las políticas de 
financiación en las zonas rurales, a proteger la calidad de las tierras de cultivo con el fin de 
aumentar la productividad, y a asegurar la autosuficiencia en cereales (por lo menos el 95%) y la 
inocuidad de los alimentos. Para alcanzar esos objetivos se prestará más apoyo al sector, se 
concederán más ventajas a los agricultores, se mejorará la política actual  de subvenciones (por 
ejemplo, mediante la eliminación de algunas y el establecimiento de otras nuevas) y se reformará 
el "sistema de formación de precios" para los productos agrícolas, entre otras medidas.  
México pregunta 113: ¿Cuáles son las entidades au torizadas para financiar a los agricultores de 
acuerdo al programa piloto implementado en 2015? ¿Existe algún calendario para la 
implementación a nivel nacional de éste programa que permitira a los agricultores obtener 
financiamiento?  
Reply: Due to the nat ural high -risk property of agriculture and the insufficiency of 
collateral securities in the country, the economy of agriculture, rural areas and farmers  
becomes weak in financial support. In order to broaden the scope of rural collateral 
securities, promo te the moderate scale management of agriculture and increase the 
farmers incomes, the People's Bank of China has taken the lead in conducting the pilot 
loan with the mortgage of the management right of the contracted land in the 
countryside and housing and  property right of farmers from the end of 2015. It allows 
the agriculture managing bodies in the pilot areas to finance with the mortgage of the 
management right of the contracted land in the countryside and housing and property 
right of farmers in the ba nking financial institutions. The pilot period is two years until 
the end of 2017. After the completion of the pilot, further arrangement will be made 
according to the pilot situation.  
                                                
31 En el Documento Nº  1 de 2015 del Consejo de Estado se in dicaba que, en 2015, la reforma de la 
agricultura debía llevarse a cabo mediante un proceso de innovación y modernización, y se subrayaba el 
importante papel de la agricultura en el desarrollo socioeconómico de China (Comité Central del Partido 
Comunista d e China, Consejo de Estado, Diversos dictámenes sobre la intensificación del proceso de reforma e 
innovación y la aceleración de la modernización agrícola. Consultado en: http://www.go v.cn/zhengce/2015 -
02/01/content_2813034.htm ; y http://english.agri.gov.cn/news/dqnf/201502/t20150203_24952.htm ). 
32 Propuestas del Partido Comunista de China para la formulació n del Decimotercer Plan Quinquenal de 
Desarrollo Económico y Social Nacional, 29  de octubre de  2015. Consultado en: http://cpc.people.com.cn/n/ 
2015/1103/c399243 -27772351.html . WT/TPR/M/3 42/Add.1  
 
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  Pregunta 114. WT/TPR/S/342 • China; Informe de la Secretaría; 4 POLÍTIC AS 
COMERCIALES, POR SECTORES; 4.1 Agricultura; 4.1.3 Instrumentos de política; 
4.1.3.2  Medidas internas; 4.1.3.2.2 Controles de precios y comercialización  
Página 142, párrafo 4.23. China ha liberalizado gradualmente los precios de la mayoría de los 
product os agrícolas. Los productos agrícolas clasificados como materiales de reserva esenciales (es 
decir, los cereales, el algodón, los aceites vegetales comestibles (materiales), el azúcar y la seda) 
y la hoja de tabaco, cuyos precios estaban antes controlados,  se han eliminado del nuevo Catálogo 
de precios fijados u orientados por el Gobierno.33 A pesar de la supresión de los controles de 
precios aplicados a la hoja de tabaco, el Estado sigue teniendo por ley la facultad exclusiva de 
administrar el derecho a pro ducir, fabricar, vender, transportar e importar y exportar tabaco y 
productos del tabaco.34 Las importaciones y exportaciones de tabaco siguen sujetas a comercio de 
Estado. Las entidades privadas pueden importar o exportar esos productos en el marco de una 
licencia expedida por la Administración del Monopolio Estatal de Tabacos/Corporación Nacional de 
Tabaco de China (sección 3.3, cuadros 3.17 y 3.18). También se controla la compra de hoja de 
tabaco, sobre la base de los planes elaborados por el departamento  de planificación de los 
gobiernos populares locales. Asimismo, en lo que respecta a la hoja de tabaco y la hoja de tabaco 
obtenida mediante proceso de resecado, la repartición entre las provincias y otras jurisdicciones se 
realiza con arreglo a un plan el aborado por el departamento de planificación del Consejo de 
Estado. La producción anual total de cigarrillos y cigarros (puros) de cada provincia y otras 
jurisdicciones también se determina con arreglo a un plan.  
México pregunta 114:  ¿Existe algún calendar io o compromiso para la liberalización de la 
producción, manufactura, venta, transporte, importación y/o exportación de Tabaco y sus 
productos?  
Reply: In order to strengthen the tobacco control and fulfill the Framework Convention 
on Tobacco Control  of the  World Health Organization, China forbids the foreign investors 
from investing in the production, wholesale, retailing and import and export of tobacco 
leaf, cigarette, redried leaf, cigar, cut tobacco and other tobacco products.  
                                                
33 Documento Nº 29 [2015] de la NDRC, de 8 de octubre de  2015 (en vigor desde el 1º de enero 
de 2016). Consultado en: http://www.sdpc.gov.cn/zcfb/zcfbl/201510/t20151020_755152.html . 
34 Los productos sujetos a ese control son los denominados "productos objeto del monopolio sobre el 
tabaco", entre los que figuran los siguientes: cigarrillos, cigarros (puros), tabaco cortado, tabaco en hoja 
objeto de un proceso de resecado, tabaco en hoj a, papel de fumar, cilindros para filtros de cigarrillos, haces de 
filamentos para cigarrillos, y equipo para la fabricación de cigarrillos (Ley de Monopolio del Tabaco (24 de abril 
de 2015). Consultado en: http://www.tobacco.gov.cn/html/27/2701/270101/4830381_n.html ). WT/TPR/M/3 42/Add.1  
 
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  33  NEW ZEALAND  
WT/TPR/S/342  
TRADE AND INVESTMENT REGIME  
Foreign Investment Regime  
Regulatory framework and market access  
WT/TPR/S/342 , Page s 39-40, para grah  2.30 
Section 2, paragraph 2.30 of the Secretariat Report notes that on 2 October 2015 the State 
Council issued an Opinion calli ng for the design of market access and foreign investment negative 
lists.  
Question  
1. Could China please explain how these lists will relate to the 2015 Investment Catalogue?  
Reply: The Special Administrative Measures for Access of Foreign Investment to P ilot 
Free Trade Zones (the "Negative List ") specified the special administrative measures for 
access of foreign investment that do not conform to national treatment and other 
principles. Currently, the Measures are only applicable to the four Pilot FTZs in  Shanghai, 
Tianjin, Guangdong and Fujian. The sectors other than those specified in the Negative 
List will be managed in accordance with the principle of treating domestic and foreign 
investors equally within the FTZs. The Catalogue for the Guidance of Ind ustries for 
Foreign Investment (the Investment Catalogue) is applicable to investments within the 
territory of China by overseas investors. Currently, foreign investors need to abide by 
China 's laws and regulations when investing in China, including the In vestment 
Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management 
system for foreign investment.  
TRADE POLICIES AND PRACTICES BY MEASURE  
Measures Dir ectly Affecting Imports  
WT/TPR/S/342, section 3.1.1, page 47,  paragraph 3.4 
Section 3.1.1, paragraph 3.4 states that "Customs clearance continues to depend upon the 
enterprise's classification and on four other aspects: internal control, financial status, compliance 
with rules, and trade security. Authorized enterprises, known as Authorized Economic Operators 
(formerly classified AA and A), benefit from more simplified customs clearance procedures " 
Question  
2. Can China outline the facilitation benefits of its Authorized Economic Operator programme and 
whether these benefits also improve supply chain security?  
Reply: In recent years, China Customs has been committed to maintaining and 
promoting the security and facilitation of supply chain. In 2014, in the b ackground of 
credit system construction and reform deepening by Chinese government, China 
Customs revised the Measures of the Customs of the People's Republic of China on the 
Classified Management of Enterprises  into Interim Measures of the Customs of the 
People's Republic of China for the Administration of Enterprise Credit  (hereinafter 
referred to as Credit Measures) to form a new AEO system, and was put into 
implementation across the country as of December 1, 2014. The new AEO system of 
China is more mat ure and advanced. It has fully incorporated the advanced concept of 
AEO system stipulated by World Customs Organization Framework of Standards, 
therefore it is geared to international standards to a greater degree. China Customs has 
reinforced the guidance  and cultivation of import and export enterprises, trying to make 
more of them become honest, law -abiding, normative and safe AEOs, which has 
effectively promoted the safety and facilitation of international trade. As of now, China 
Customs boasts more than  40,000 authorized enterprises  accounting for about 6% of 
the total number of import and export enterprises across China, about 60% of the total WT/TPR/M/3 42/Add.1  
 
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  imports and exports of China, and providing about 70% of the total import and export 
taxes of China. China 's AEOs have become a dominant force in the field of import and 
export of China. Meanwhile, China has been vigorously promoting the publicity of AEO 
system. By means of illustration meeting of AEO system, 12360 customs hotline, portal 
site, news media, etc., AE O system of China Customs has been paid more and more 
attention from the business circles and the society, and its domestic and international 
influence has been continually increased. Meanwhile, China Customs has made a 
substantial progress in AEO mutual -recognition -based cooperation. So far, it has signed 
four mutual recognition arrangements respectively with Singapore, Korea, Hong Kong 
and Europe. In 2014, China 's total export to these four economies accounted for about 
40% of China's total exports.  
3. Does the Authorized Economic Operator programme apply to imports across the whole country?  
Answer ：Yes. 
Standards and Other Technical Requirements  
WT/TPR/S/342, section 3.1.8.1, page 64, para graph  3.67 
Section 3.1.8.1, paragraph 3.67 states that "before their  approval, mandatory standards with an 
impact on trade…must be notified to the WTO. " 
Question  
4. At what stage in China 's domestic process, prior to approval, are mandatory standards with an 
impact on trade notified to the WTO, and which agency or agencies  are responsible for issuing the 
notification?  
Reply: After technical committees complete national standard drafts for approval, 
related competent industrial administrations of the State Council will review and report 
to SAC for the approval to release. A fter receiving materials for approval, SAC will decide 
the necessity of notification based on whether the mandatory standards involve trade 
and its differences from international standards. In case notification is needed, SAC will 
submit to TBT Enquiry for  external notification.  
WT/TPR/S/342, section 3.1.8.1, Page 65, para graph  3.70 
Section 3.1.8.1, paragraph 3.70 states that "China…was actively facilitating integration and 
optimisation of mandatory national, industrial and local standards to reduce the nu mber of 
standards…the authorities noted that a reform of the standardisation system is under  way, and 
that a new mandatory national standards system will be established. " 
Question  
5. Acknowledging the effort China has already put into the standardisation p rocess to date, 
New Zealand would like to enquire as to the latest progress on this initiative.  
Reply: The standardisation reform mainly involves reform initiatives in six aspects:  
First, to establish an authoritative and efficient overall coordination me chanism. In June 
of 2015, the State Council established the inter -ministerial standardization coordination 
promotion joint conference consisting of 39 ministries including the Cyberspace 
Administration of China, the Ministry of Foreign Affairs, National De velopment and 
Reform Commission. The conference is convened by State Councillor Wang Yong, who 
convened two plenary sessions of the joint conference.  
Second, to integrate and streamline mandatory standards. The General Office of the 
State Council issued th e Work Plan of Integration and Streamlining of Mandatory 
Standards. AQSIQ and SAC are organizing the various departments and regions for 
accelerating the integration and streamlining.  WT/TPR/M/3 42/Add.1  
 
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  Third, to optimize and improve recommended standards. SAC has started th e system 
optimization and review of recommended standards in 10 organizations on pilot. SAC 
also formulated and issued the Work Plan of Centralized Review of Recommended 
Standards on a pilot basis.  
Fourth, to foster and develop community standards. AQSIQ a nd SAC have carried out 
pilot work in 39 social organisations including Chinese Institute of Electronics. They also 
formulated and issued the Guidance on Cultivating and Developing Community 
Standards on a pilot basis.  
Fifth, to open up and vitalize corpor ate standards. AQSIQ and SAC have carried out pilot 
work in all provinces and municipalities and 13 industries, issued the Work Plan of 
Statement Disclosure and Supervision System Development for Corporate Products and 
Service Standards.  
Sixth, to improve the standard internationalization. One the one hand, active adoption of 
international standards is encouraged, and on the other hand, active participation in the 
activities of international standardization is also encouraged. In September, the 39th ISO 
Conference will be held in Beijing.  
WT/TPR/S/342, section 3.1.8.1, Page 71, para graph  3.88 
Section 3.1.8.1, paragraph 3.88 states that "Imported pre -packaged food or food additives require 
a label and an instruction manual (if it applies) in Chinese. " 
Questio n 
6. New Zealand understands the requirement for a Chinese label but would like to clarify as to 
whether or not multiple languages (including Chinese) are permitted on products imported into 
China under the new Food Safety Law and Implementing Regulations.  
Reply: According to China 's standard requirements about food labels, imported food 
should attach a label in Chinese in line with China 's laws, regulations and national food 
safety standards, but it is not prohibited to contain multiple languages in the la bels.  
Intellectual Property Rights  
Geographical in dications  
WT/TPR/S/342, section 3.3.7.2.3, page 108, paragraphs 3.298 and 3.299  
Section 3.3.7.2.3, page 108, paragraphs 3.298 and 3.299 discusses three mechanisms that are 
available in China to protect geog raphical indications (GIs).  
Questions  
7. How many foreign wine GIs have been granted protection in China by AQSIQ under the AQSIQ 
Decree No. 78 of 2005 (Provisions on the Protection of Geographical Indication Products)?  
Reply: So far, AQSIQ has approved pr otection of 48 foreign wine GI products.  
8. What is the procedure and the information required for foreign wine GIs to be granted 
protection in China by AQSIQ?  
Reply: AQSIQ 's protection system of GI products is a kind of special institutional system, 
whic h provides equal protection to both domestic and overseas GI products. As for the 
detailed procedure of applying for protection of overseas GI products, please refer to 
Measures on the Protection of Overseas Geographical Indication Products . As other 
overs eas products, wine also applies to Measures on the Protection of Overseas 
Geographical Indication Products .  WT/TPR/M/3 42/Add.1  
 
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  9. How many foreign wine GIs have been granted protection in China by the Minstry of Agriculture 
under the Measures on the Administration of Agricu ltural Product Geographical Indications (MOA 
Decree No. 11 of 2008)?  
Reply: Currently, no relevant statistics is available.  
10. What is the procedure and the information required for foreign wine GIs to be granted 
protection in China by the Ministry of Agr iculture?  
Reply: Measures on the Administration of Agricultural Product Geographical Indications  
stipulates that agricultural products refer to primary products obtained from agriculture, 
namely, plants, animals, microorganisms and their products obtained from agricultural 
activities. The Ministry of Agriculture is currently studying to work out measures on 
registration and protection of overseas agricultural product geographical indications.  
TRADE POLICIES BY SECTOR  
WT/TPR/S/342, section 4.1.3.2.1 Support  measures, page 119,  paragraph 4.17 
Paragraph 4.17 of the Secretariat report notes that several support programmes covering the 
period 2009 to 2014 were notified by China under the Agreement on Subsidies and Countervailing 
Measures (The SCM  Agreement)  in 2015. These are set out in Table 4.4.  In China 's response to 
questions in the 2014 Trade Policy Review, China advised that it was still in the process of 
verifying information regarding notification of programmes affecting fisheries under the SCM 
Agreement and that "In the course of China 's preparation for the next notification if certain 
programs 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 n otification.  
(WT/TPR/M/300/Add.1)  
Paragraph 4.21 states that the fisheries sector is eligible for subsidised machinery at rates of 
20-30% and Table A3.2 on page 163 notes inter alia  that enterprises engaged in fisheries are 
exempt from income tax or are gr anted a preferential income tax rate.  
Question  
11. Is the information China undertook to provide in the context of the  2014 Trade Policy review 
regarding its notifications under the SCM Agreement of matters affecting fisheries 
(WT/TPR/M/300/Add.1) included  in the information set out in Table 4.4 on page 119 of the 2016 
Report by the WTO Secretariat (WT/TPR/S/342).  If not, when does China expect to be able to 
complete that verification, and provide an up -to-date and complete notification under the SCM 
Agreem ent? 
Reply: As China mentioned at the regular spring session of SCM committee held in 
April  2016, some projects listed in 2014 review report have been reflected in the 
Chinese subsidy notification . For example, Public Notice on the Issues Related to the 
Implementation of Preferential Corporate Income Taxation for Agriculture, Forestry, 
Animal Husbandry and Fishery Projects, State Administration of Taxation [2011] No. 48 
has already been notified by China in the program No.  42 of its latest central subsidy 
notification. At present, China is reviewing fishery subsidy and will deliberate on the 
notification issue based on the review results and the working progress.  
12. UN SDG Target 14.6 calls on governments by 2020 to prohibit certain forms of fisheries 
subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute 
to IUU fishing, and refrain from introducing new such subsidies.  What initiatives does China have 
in place to implement that target, including the standstill com mitment?  
Reply : China is a country with the largest number of fishing boats and fishermen. The 
sustainable development of fishery is significant for China 's coastal economy, social 
stability, poverty alleviation and realization of a well -off society in an  all-round way. 
China has developed effective cooperations in the forms of bilateral mechanism, regional 
fisheries management organizations, United Nations Food and Agriculture Organization, WT/TPR/M/3 42/Add.1  
 
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  etc., to promote the maintenance, management and rational utiliza tion of fishery 
resources, which has effectively curbed illegal fishing and realized sustainable fishery.  
13. How does China ensure that its subsidies are not provided to fishing on overfished stocks or 
IUU fishing, and do not contribute to overcapacity an d overfishing?  
Answer ：Relevant work is carried out according to regulations of Fisheries Law of the 
People's Republic of China . 
WT/TPR/G/342  
ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION  
Continuing to Deepen the Reforms Steadfastly  
WT/TPR/G/342 , Page s 10-11, para graph  2.38 
Section 2.4.1, paragraph 2.38 of China 's Country Report notes that the negative list system for 
market access will be developed  and officially adopted across the country as of 2018. The report 
also states that in March 2016, a Draft Negative List for Market Access was put into trial use in 
Tianjin, Shanghai, Fujian and Guangdong.  
Question  
14. Could China please provide detail on the pilot trials, including feedback on how the pilot trials 
are going and initial lessons learned at this stage of the trials?  How many FIPs have come in under 
the exemption from examination and approval in these four zones and been instead subject only 
to record -filing?  
Reply: Currently, the Chinese government has carried out pre-establishment national 
treatm ent and negative list  management system in four Pilot Free Trade Zones, and has 
achieved remarkable success. During January to February, 2016, a total of 
3,228  foreign -invested enterprises were established in Shanghai, Guangdong, Tianjin 
and Fujian Pilot F ree Trade Zones, among which 3,203 enterprises are newly established 
through record -filing, accounting for 99.2%.  
Reform of State -Owned Enterprises and Development of the Private Economy  
WT/TPR/G/342 , Page 12, para graph  2 
Section 2.4.4 of China 's Trade Pol icy Review refers to reform of state -owned enterprises.  
Question  
15. What steps is China taking to reform SOEs, particularly heavily indebted SOEs?  
Reply: As for  pilots on mixed -ownership reforms, in June, 2014, China chose China 
National Building Materia ls Group Corporation and China National Pharmaceutical Group 
Corporation as the pilot enterprises. Currently, both pilot enterprises are steadily 
implementing reform measures, and will make a systematic summary. As to fulfilling the 
functions and rights of  boards of directors, China has been vigorously promoting the 
establishing of standard boards of directors with external directors accounting for more 
than 50% of total members. Currently, among 106 central enterprises, 87 of them have 
set up standard boar ds of directors. Meanwhile, part of the boards of directors are 
authorized to exercise the right to program strategies for medium and long -term 
development, screen and recruit senior management, etc. In terms of the market -
oriented recruitment of managers and the professional manager system, the boards of 
directors of five central enterprises are guided to recruit 14 managers in a market -
oriented way. In the next step, China will continue to deepen the reform of state -owned 
enterprises (SOEs).  WT/TPR/M/3 42/Add.1  
 
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  TRADE AND INV ESTMENT DEVELOPMENT AND RELATED POLICIES  
Promoting Foreign Trade Innovation and Development  
Implementing proactive import policy  
WT/TPR/G/342 , Page 18, para graph  3.20 
Section 3.2.1 para 3.20 of China 's country report states that "public service platforms f or foreign 
trade promotion have been proactively established to strengthen information disclosure, trade 
policy information, trade barrier complaints and IPR protection ".  
Question  
16. Can foreign access these public service platforms; and if so, how?  
Reply: The public service platforms for foreign trade promotion provide indiscriminating 
services for domestic and foreign enterprises. For details, enterprises can consult 
commerce authorities in their places of registration or platform operators such as 
relevant trade associations.  
Safeguarding the Multilateral Trading System with Concrete Actions  
WT/TPR/G/342 Page 24, para graph  3.54 
Paragraph 3.54 of the Report by China states that China has been continuously pushing forward its 
accession negotiation to the  Government Procurement Agreement (GPA) and refers to the fact that 
in December 2014, it submitted its 6th offer and has conducted consultations with GPA Parties.  
Questions  
17. When does China expect to be in a position to submit its 7th GPA offer?  
Reply : It depends on the negotiation between China and GPA Parties.  
Paragraph 3.187 of the Report by the WTO Secretariat refers to the "buy domestic " provision in its 
Government Procurement Law. This paragraph also states that "Domestic -sourcing legal 
requireme nts would have to be modified for procurement above GPA thresholds for China to join 
the GPA Agreement.  
18. What steps is China taking to modify the "buy-domestic  provision " in the Government 
Procurement Law and when does China expect these steps to be com pleted?  
Reply: China 's joining to GPA doesn 't necessarily lead to the abolishment of the "buy-
domestic " provision in the Government Procurement Law . To abolish it, it is needed to 
confirm based on the negotiation that this provision doesn 't apply to GPA Pa rties.  WT/TPR/M/3 42/Add.1  
 
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  34  NORWAY  
Since December 2010, China has implemented several measures that have severely affected 
Norwegian export of seafood. These measures include quarantine and testing procedures, 
allocation of "import licences" for salmon and that the list of No rwegian enterprises approved for 
export to China has not been updated.  
These measures have been addressed repeatedly by Norway, both bilaterally and in the WTO, with 
the intent of establishing a bilateral dialogue to address the issues involved.  
Norway re cognizes each WTO member's right to set their own appropriate level of protection. 
However, we question whether the measures applied by China to Norwegian seafood are in line 
with the rights and obligations of WTO -members under the SPS -agreement, and we ar e therefore 
seeking more transparency.  
Question 1  
In the interest of transparency we ask China to provide Norway with information about the 
quarantine and testing regimes that are applied to seafood in general and to Norwegian seafood 
specifically. Which parameters are analysed? What is the frequency of control? What is the 
timespan involved to reach the decision on release or rejection of the consignments under 
scrutiny? Are special procedures applied to perishable seafood like fresh salmon?  
Reply : China  applies quarantine and testing to imported foods (including seafood ) in 
accordance with Chinese laws and regulations, WTO rules and other international rules, 
in a bid to ensure food safety, safeguard consumers' health and agricultural and fishery 
ecologi cal safety. China's quarantine and testing regimes for imported foods are 
regulated by relevant laws and regulations  and are  applicable to all foods imported  to 
China from all trading countries (or regions). China determines the quarantine and 
testing items pursuant to Chinese standards and other requirements and according to 
the food safety control condition s and risk status of food manufacturers  and their 
products of the exporting countries (regions), and carries out dynamic regulation on  the 
quarantine and testing items.  
Question 2  
Measures applied to achieve the appropriate level of protection shall, according to the SPS 
agreement, be based on scientific evidence taking into account risk assessment techniques 
developed by the relevant international orga nisations. Norway has consistently provided the 
Chinese authorities with requested written documentation on Norwegian regulations and practices 
concerning food safety. We have repeatedly asked for the Chinese risk assessment that justifies 
the measures app lied to Norwegian seafood. When will China present its risk assessment to 
Norway and how will this be done?  
Reply : China determines the quarantine and testing items pursuant to Chinese standards 
and other requirements and according to the food safety cont rol condition s and risk 
status of food manufacturers  and their products of the exporting countries (regions), 
and carries out dynamic regulation on the quarantine and testing items.  
Question 3  
According to information from economic operators, China applies  a system of import licensing for 
imports of fresh salmon. Apparently, operators have to apply for a license every month for a 
specific quantity of imports. Not only does this seem to constitute a de facto system of import 
quotas, it also seems that the ru les are applied differently depending on the origin of the product 
in question. Norway questions the justification for such a system as well as its conformity with 
WTO rules.  
Norway asks China to provide a copy of the regulations that describe the system for allocation of 
import licences for salmon, including the criteria for applying for such licences and how these are 
put into effect.  WT/TPR/M/3 42/Add.1  
 
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  Reply: it is in accordance with the law on quarantine of entry and exit of animals and 
plants and other relevant laws and  regulations that China applies the quarantine and 
approval system to animal and plant derived foods and agricultural products with high 
risk of spreading epidemic diseases. The implementation of this system is based on risk 
level, not targeted at any coun tries or regions. At present, China applies this system to 
all cultured fishes in the world. this system requires all importers to apply for import 
quantity just for the following  purpose: to ensure that the entry goods are matched with 
the production capa cities of foreign enterprises registered in China and further ensure 
that legally imported products will not face the trouble brought by  illegally imported  
products, based on the estimation on the production capacity of source of goods supply. 
substantiall y, this system is helpful to preventing and controlling risk and is also helpful 
to maintaining normal trade of permitted products of the countries or regions including 
Norway.  WT/TPR/M/3 42/Add.1  
 
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  35  OMAN  
Question  
We understand  that as of 1 October 2016, the RMB will officially  become a freely usable currency. 
In your view, what impact will this development have on international trade?"  
Reply: After RMB joins SDR, RMB will be used more frequently in trade, investment and 
financial transactions. Settlement of cross -border trade a nd investment in RMB will help 
enterprises avoid the risk of exchange rate fluctuations, deepen economic and trade 
relations and cooperation between China and other countries, and further diversify 
international monetary system to some extent. We welcome e nterprises of different 
countries settling cross -border trade and investment in RMB.  WT/TPR/M/3 42/Add.1  
 
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  36  PERU  
Sobre la base de lo señalado en el documento WT/TPR/G/342  del 15 de junio de 2016, el Perú 
tiene las siguientes preguntas:  
Pregunta 1  
2. ENTORNO ECONÓMICO Y COMERCIA L Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.3. Ajuste de la estructura económica y transformación del modelo de desarrollo  
2.3.1. Aumento moderado de la demanda interna y eficacia de las reformas estructurales 
relacionadas con la oferta  
Párrafo 2.16. El mercado de consumo interno de China ha crecido rápidamente en los últimos 
dos años. En 2014 y 2015, el valor total de las ventas al por menor de bienes de consumo fue de 
27,19 billones de yuan y de 30,09 billones de yuan, respectivamente; el aumento nomi nal 
interanual fue del 12,0% y el 10,7%, respectivamente. El incremento en términos reales, tras el 
ajuste para tener en cuenta las variaciones de los precios, fue del 10,9% y el 10,6%, 
respectivamente. También se aceleró la modernización del modelo de con sumo de la población 
china. Algunas nuevas formas y esferas de consumo registraron un sólido crecimiento y el 
volumen del comercio electrónico sobrepasó los 20,8 billones de yuan en 2015, de modo que la 
cifra registrada en 2013 se duplicó. En 2014 se ejecu taron seis proyectos relativos al consumo de 
información, el consumo de productos ecológicos, la estabilización del consumo de viviendas, el 
aumento del consumo de servicios culturales, educativos y deportivos, la modernización del 
consumo de servicios tur ísticos y de esparcimiento y el consumo de servicios para los ancianos, 
servicios domésticos y servicios de salud. El consumo de servicios, por valor de 2,8 billones de 
yuan, fue impulsado por inversiones de 3 billones de yuan realizadas en las esferas men cionadas.  
Pregunta  - ¿Cuáles son los sectores que más concentraron el consumo interno en China en el 
año 2015?  
Reply: In 2015, China's  total retail sales of consumer goods reached RMB 30.1 trillion, 
an increase of 10.7% over the previous year; after adjust ed for price factors, the actual 
growth rate was 10.6%. Major consumer fields are as follows:  
First, the auto consumption increased slightly. In 2015, 24.598 million vehicles were 
sold, an increase of 4.7% year on year.  
Second, the housing consumption mai ntained stable growth; a housing area of 
1.12406  billion square meters were sold nationwide, an increase of 6.9% year on year 
and the sales volume was RMB 7.2753 trillion, an increase of 16.6% last year on year.  
Third, information consumption continued to flourish; online retail sales of physical 
commodities reached RMB 3.2424 trillion, registering an increase of 31.6% last year on 
year and accounting for 10.8% of the total retail sales of consumer goods.  
Fourth, service consumption grew fast. The catering  industry has maintained a relatively 
rapid growth, and realized an income of RMB 3.231 trillion, an increase of 11.7% last 
year on year. The culture & entertainment, sports and healthcare and recreational 
tourism markets were rising continuously; experien ce consumption has become a 
market highlight. Box -office stood at RMB 44.07 billion, registering an increase of nearly 
50% last year on year. Domestic tourism has received more than 4 billion visitor times 
with a tourism income of over RMB 4 trillion.  WT/TPR/M/3 42/Add.1  
 
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  Pregunta 2  
2. ENTORNO ECONÓMICO Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.3. Ajuste de la estructura económica y transformación del modelo de desarrollo  
2.3.5. Fomento de la transformación y la modernización de las ramas de producción 
tradicio nales y conservación de la energía y reducción de las emisiones  
Párrafo 2.29. El Gobierno chino otorga gran importancia a la conservación de los recursos, la 
protección del medio ambiente y la contención del cambio climático y ha promovido de manera 
decidi da la conservación de la energía, la reducción de las emisiones y la prevención y el control 
de la contaminación eliminando el exceso de capacidad productiva y la capacidad de producción 
obsoleta en los sectores del acero, el cemento, el aluminio electrolí tico y otros de gran consumo de 
energía y elevada producción de emisiones. Esas tareas son un componente importante de los 
esfuerzos de China por adaptar su estructura industrial y transformar su modelo de desarrollo 
económico. Se ha establecido un régimen  de control del consumo total de carbón en ciudades 
clave para reducir la contaminación del aire y se ha aplicado de manera exhaustiva el plan de 
acción para la modernización y transformación de las centrales eléctricas alimentadas con carbón a 
fin de cons ervar la energía y reducir las emisiones. En siete lugares -Beijing, Tianjin, Shanghái, 
Chongqing, Guangdong, Hubei y Shenzhen - se ejecutan proyectos piloto de comercio de derechos 
de emisión de dióxido de carbono.  
Párrafo 2.30. Se han obtenido importantes  logros en materia de conservación de la energía y 
reducción de las emisiones, y la estructura del consumo de energía ha experimentado profundos 
cambios. En los últimos tres años, China ha eliminado capacidad de producción obsoleta 
equivalente a más de 90 millones de toneladas de hierro y acero, 230 millones de toneladas de 
cemento, más de 76 millones de unidades de peso de vidrio plano pulido y más de 1 millón de 
toneladas de aluminio electrolítico. El consumo de energía por cada 10.000 yuan del PIB dismin uyó 
un 13,5%. En 2015, el consumo de energía y las emisiones de dióxido de carbono por unidad del 
PIB se redujeron un 5,6% y más del 6,6% respectivamente. Las emisiones de dióxido de azufre, la 
demanda química de oxígeno y las emisiones de nitrógeno amonia cal y óxidos de nitrógeno 
disminuyeron un 5,8%, 3,1%, 3,6% y 10,9%, respectivamente. La proporción del consumo de 
carbón en el consumo total de energía en 2015 se redujo 4,5 puntos porcentuales con respecto a 
2012, en tanto que la proporción de energía lim pia, como la energía hidráulica, eólica y nuclear y 
el consumo de gas natural, aumentó 3,4 puntos porcentuales.  
Pregunta. - ¿Cuáles son los programas para la reducción de emisiones y la protección del medio 
ambiente que se vienen aplicando en China con mejo res resultados?  
Reply: China has paid much attention to environmental protection and implemented a 
series of major environment engineering projects to facilitate the improvement of 
environmental quality, including environmental infrastructure construction,  
desulfurization and denitration transformation, and ultra -low emission transformation of 
coal-fired power. By the end of 2015, national urban sewage and waste disposal rates 
had reached 91.2% and 92.5% respectively; installation rate of desulfurization de vices 
for coal -fired power generating unit had increased from 83% to over 99%; installation 
rate of denitration devices had increased from 12% to 92%; installation rate of 
denitration devices for new dry cement production line had reached 92%; 84 million K W 
ultra -low emission transformation project of coal -fired power had been finished, and 
more than 81 million KW were being transformed.  
Besides, in 2011, China initiated pilot projects of carbon emission permits trading in 
seven provinces and cities, inclu ding Beijing, Tianjin, Shanghai, Chongqing, Hubei, 
Guangdong and Shenzhen. The pilot projects in these seven provinces and cities were 
launched between June  2013 and June 2014 successively, and now a local carbon 
emission permits trading market with certai n scale, comprehensive elements and stable 
operation has taken shape. As of the end of June 2016, these seven pilot projects have 
realized an accumulated trading volume of about 110  million tons of CO 2 and an 
accumulated transaction volume of RMB 3.09 bill ion. These pilot projects have further 
improved the awareness and capability of enterprises to realize energy conservation and 
reduce carbon emission by using the market mechanism, and strengthened carbon WT/TPR/M/3 42/Add.1  
 
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  emission control in industries of high energy consu mption and high emission such as 
electric power, petrochemical, steel and iron as well ascement.  
Pregunta 3  
2. ENTORNO ECONÓMICO Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.4. Profundización continua de la reforma  
2.4.1. Fomento continuo de la reforma de los procedimientos administrativos de examen 
y aprobación  
Párrafo 2.36. En 2014, en el caso de 246 actividades anteriormente sujetas a examen y 
aprobación a nivel del Gobierno central se suprimió ese requisito o delegaron esas funciones. En 
2015 se hizo lo mismo con otras 311 actividades, se eliminó el procedimiento de examen y 
aprobación en el caso de todas las licencias no administrativas, de 214 actividades sujetas a 
examen y aprobación de las autoridades locales designadas por el Gobierno central, y de 
123 elementos previamente sujetos a licencias o certificación de títulos de aptitud.  
Pregunta  - China hace mención que se han reducido las cargas administrativas y optimizado los 
procedimientos de la administración pública. ¿Cuáles han sido l os relacionados a comercio 
exterior?  
Reply: Foreign trade is not involved.  
Pregunta 4  
2. ENTORNO ECONÓMICO Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.4. Profundización continua de la reforma  
2.4.6. Profundización de la reforma del sistema fi nanciero  
Párrafo 2.52. El Gobierno chino ha continuado con la reforma del tipo de interés del yuan basada 
en el mercado y ha permitido que el mercado desempeñe un papel decisivo en su determinación. 
El margen de flotación del tipo de cambio del yuan y tamb ién la elasticidad del tipo de cambio han 
aumentado gradualmente. El 17 de marzo de 2014, el margen de fluctuación del tipo de cambio 
del yuan frente al dólar de los Estados Unidos en el mercado interbancario al contado o de divisas 
se amplió del 1% al 2%.  A partir de julio de 2014, China eliminó las restricciones al margen de 
flotación de las cotizaciones en dólares de los Estados Unidos que ofrecen los bancos a sus 
clientes. En 2015, la paridad central del yuan frente al dólar de los Estados Unidos (media  anual) 
fue de 6,2284 yuan; según el Banco de Pagos Internacionales (BPI), el aumento interanual de los 
tipos de cambio real y nominal del yuan fue del 3,93% y el 3,66%, respectivamente. Según el BPI, 
desde que se reformó el mecanismo de fijación del tipo de cambio del yuan en 2005 hasta 
diciembre de 2015, el tipo de cambio efectivo nominal del yuan experimentó en total una 
apreciación del 45,87% y el tipo de cambio efectivo real, del 56,15%.  
Pregunta. - ¿Cuáles han sido los resultados de la eliminación gene ral del control de los tipos de 
interés en China?  
Reply: In recent years, China has accelerated the market -oriented reform of interest 
rate and made critical progress. On the one hand, the interest rate control has been 
eased. After completing the market -oriented reform of interest rate for the bond market, 
domestic foreign currency deposit and loan, and  loan in RMB successively, on 
October  24th, 2015, upper limit of deposit rate for commercial banks and rural 
cooperative financial institutions were no long er in place, marking the general 
deregulation of interest rate in China. On the other hand, the mechanism building is 
being pushed forward continuously. The financial market benchmark interest rate 
systems represented by Shibor and LPR are being perfected along with the continuous 
improvement of interest rate regulation system of the central bank.  
Generally speaking, of the market -oriented reform of interest rate has achieved fairly 
good policy results. The independent pricing and risk management capabilit y of financial WT/TPR/M/3 42/Add.1  
 
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  institutions has been improved, and a tiered, well -organized pricing pattern with 
differentiated competition has been by and large formed. The benchmark interest rate 
system of financial market is being perfected continuously. The benchmark interest rate 
system represented by Shibor, LPR and treasury yield curve have offered important 
reference to the pricing of financial products and the formation mechanism of market -
oriented interest rate is gradually perfected. The innovation of financial products keeps 
advancing and the breadth and depth of financial market development is further 
expanded. In the meantime, along with the in -depth implementation of interest rate 
liberalization, the decisive role of the market in resources allocation has bee n brought 
into further play, and market has also played a positive role in reducing social financing 
cost, improving the financing accessibility for small and micro enterprises and private 
enterprises . 
Pregunta 5  
3. DESARROLLO DEL COMERCIO Y LA INVERSIÓN Y  POLÍTICAS CONEXAS  
3.2. Promoción de la innovación y el desarrollo en el comercio exterior  
3.2.2. Aceleración de la transformación y modernización del comercio exterior  
Párrafo 3.22. La transformación y modernización del tráfico de perfeccionamiento se ha 
acelerado. En enero de 2016, el Consejo de Estado publicó los Dictámenes relativos a la promoción 
de un desarrollo innovador del tráfico del perfeccionamiento  (…). 
Párrafo 3.23. El comercio electrónico se ha convertido en un elemento destacado del comercio  
internacional y ha dado un nuevo impulso al crecimiento económico. El Gobierno chino ha 
mejorado continuamente las condiciones para el desarrollo del comercio electrónico 
transfronterizo. En 2015, el Consejo de Estado publicó de forma sucesivas las Orient aciones sobre 
el fomento de la iniciativa "Internet plus" y las Orientaciones sobre la promoción de un desarrollo 
saludable y rápido del comercio electrónico transfronterizo  (…). 
Párrafo 3.24.  China ha desarrollado enérgicamente el comercio de servicios y generado un 
entorno favorable para ello, y el nivel de liberalización y facilitación ha mejorado de forma 
constante. Desde 2014, el Gobierno chino ha publicado sucesivamente los Dictámenes sobre la 
aceleración del desarrollo del comercio exterior de produc tos y servicios culturales, los Dictámenes 
sobre la aceleración del desarrollo de la contratación externa de servicios y los Dictámenes sobre 
la aceleración del desarrollo del comercio de servicios , así como otros documentos de orientación 
sobre el comerci o de servicios. En febrero de 2016, el Consejo de Estado decidió llevar a cabo 
proyectos experimentales de innovación y desarrollo del comercio de servicios en 15 provincias y 
municipios (zonas), incluido Tianjin, para estudiar cuáles son los sistemas y me canismos 
aconsejables para facilitar la innovación y el desarrollo del comercio de servicios.  
Pregunta. - El Perú desea saber si los Dictámenes y las Orientaciones publicadas por el Consejo de 
Estado, mencionadas en los párrafos 3.22, 3.23 y 3.24 están disp onibles para los Miembros OMC y 
si China puede facilitar los enlaces electrónicos para acceder a dicha información.  
Reply: The document mentioned in Paragraph 3.22 can be found at: 
http://www.gov.cn/xinwen/2016 -01/18/content_5033830.htm .  
The two documents mentioned in Paragraph 3.23 can be found at:  
http://www.gov.cn/zhengce/content/2015 -07/04/content_10002.h tm and 
http://wms.mofcom.gov.cn/article/zcfb/ax/201506/20150601026277.shtml . 
The guidelines of State Council on supporting service trade development mentioned in 
Paragrap h 3.24 can be found at the Policy webpage of the official website of the Central 
People 's Government  at: 
http://www.gov.cn/zhengce/content/2014 -03/17/content_8717.htm , 
http://www.gov.cn/zhengce/content/2015 -01/16/content_9402.htm , and  
http://www.gov.cn/zhengce/content/2015 -02/14/content_9482.htm . WT/TPR/M/3 42/Add.1  
 
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  Pregunta 6  
3. DESARROLLO DEL COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS  
3.2. Promoción de la innovación y el desarrollo en el comercio exterior  
3.2.3. Mejora de la facilitación del comercio  
Párrafo 3.27. Se han acelerado las reformas  para facilitar el despacho de aduana y mejorar la 
eficiencia del despacho aduanero en los puertos y el nivel de facilitación del comercio. El 3 de 
febrero de 2015, el Consejo de Estado publicó el Plan de reforma para el intercambio de 
información, el reco nocimiento mutuo de la supervisión y la asistencia recíproca para la 
observancia de la Ley, y la promoción de instalaciones para el despacho de aduana , con el objetivo 
de promover de forma acelerada la coordinación del despacho de aduana entre zonas interi ores, 
costeras y fronterizas, y el intercambio de información, el reconocimiento mutuo de la supervisión 
y la asistencia recíproca para la observancia de la Ley entre los departamentos de gestión 
portuaria pertinentes. Actualmente, hay un mecanismo regiona l integrado del despacho de aduana 
que abarca a las 42 oficinas aduaneras de todo el país, que se dividen en cinco secciones de 
despacho de aduana integrado y reformado: Beijing, Tianjinn y Hebei, el Cinturón Económico del 
Río Yangtze, las cuatro provincia s del delta del río de las Perlas, el Cinturón Económico de la Ruta 
de la Seda y la región del noreste. En todo el país se popularizó el modelo de una declaración, una 
inspección y un levante . El 1º de agosto de 2012, se realizaron en 12 oficinas aduaneras , incluida 
la de Shanghái, reformas experimentales del despacho de aduana sin documentación impresa, que 
en 2014 se introdujeron en todos los centros operativos de las oficinas aduaneras de todo el país. 
(El subrayado es nuestro)  
Pregunta  - ¿Podría China e xplicar brevemente en qué consiste el modelo de una 
declaración, una inspección y un levante?  
Reply: In order to deepen the cooperation of port administration departments and 
promote trade facilitation, the General Administration of Customs and General 
Administration of Quality Supervision, Inspection and Quarantine have exerted great 
efforts to promote the cooperation of One Declaration (one data entry and separate 
declaration, namely enterprises only need to enter the declaration information once, and 
get it sent/declared to the Customs and the Inspection & Quarantine Department 
respectively), One Inspection (unpack once and the Customs and the Inspection & 
Quarantine Department check/inspect and quarantine in order, namely the Customs and 
the Inspection &  Quarantine Department only unpack the cargos to be 
checked/inspected and quarantined for one time and conduct the check/inspection and 
quarantine according to their respective responsibilities), and One Release (networked 
verification and release by the C ustoms and the Inspection & Quarantine Department, 
namely for the cargo delivered to the port, the Customs and the Inspection & Quarantine 
Department send the verification and release information respectively, the enterprises 
complete the formalities for p icking up the cargo with the verification and release 
information issued by the Customs and Inspection & Quarantine department) (Three -
One for short). Based on the expanded pilots in 2012 and 2013, as of August  1, 2014, 
the Three -One cooperation between th e Customs and the Inspection & Quarantine has 
been popularized all over China, thus maximizing the benefits of this convenient 
measure to enterprises.  
Pregunta 7  
3. DESARROLLO DEL COMERCIO Y LA INVERSIÓN Y POLÍTICAS CONEXAS  
3.2. Promoción de la innovación  y el desarrollo en el comercio exterior  
3.2.3. Mejora de la facilitación del comercio  
Párrafo 3.28. El 16 de abril de 2015, el Consejo de Estado publicó Dictámenes para mejorar las 
actividades portuarias a fin de apoyar el desarrollo del comercio exterior , en los que se prevé el 
establecimiento de ventanillas únicas para el comercio internacional a través de las plataformas 
públicas de puertos electrónicos. Actualmente se han logrado grandes avances en el 
establecimiento de ventanillas únicas. En primer lu gar, se establecieron de forma sucesiva 
ventanillas únicas experimentales en zonas costeras. Las ventanillas únicas para el comercio 
internacional están ya en funcionamiento en línea o de forma experimental en 11 provincias y WT/TPR/M/3 42/Add.1  
 
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  municipios, incluidos Shanghái , Tianjin y Fujian. En segundo lugar, se han mejorado 
constantemente las funciones de las ventanillas únicas y a través de ellas se puede realizar la 
totalidad de las funciones básicas del despacho de aduana, como la declaración de mercancías 
para la impor tación y la exportación y la declaración de los medios de transporte. En tercer lugar, 
ha aumentado notablemente la capacidad de los servicios de los puertos. Los procedimientos de 
tramitación del despacho de aduana se han modificado y se ha pasado de un t ipo de tramitación 
simultánea a un tipo de tramitación paralela,  además de simplificarse los procedimientos y 
formalidades de solicitud, y de optimizarse la coordinación y la cooperación entre los 
departamentos de gestión de los puertos. (El subrayado es n uestro)  
Pregunta  - El Perú tiene las siguientes preguntas:  
 ¿Los Dictámenes para mejorar las actividades portuarias publicadas por el Consejo de Estado 
son de dominio público?  
Reply: On April 17th, 2015, the State Council issued Several Opinions on Improvin g the 
Port Administration to Support Foreign Trade Development, which requires to further 
enhance and improve port administration, create a convenient, efficient, fair and 
transparent customs clearance environment, and better serve the vast number of expor t 
and import enterprises and passengers. The  Opinions are applicable to all kinds of 
export and import enterprises and passengers clearance all over China.  
 ¿Podría explicar en qué consiste que los procedimientos de tramitación del despacho de aduana 
hayan pasado de un tipo de tramitación simultánea a un tipo de tramitación paralela?  
Reply: According to the actual situation of the port management system in China, a 
seaport sees 4 law enforcement departments (customs, border inspection, inspection & 
quarantin e and maritime affairs); an airport, rail port and road port generally sees 3 law 
enforcement departments (customs, border inspection, inspection & quarantine). Goods, 
transport vehicles and persons need to respectively declare and present documents and 
data to 3 to 4 law enforcement departments, resulting in multiple and repeated 
declaration. Since China implemented the single -window measure in 2014, enterprises 
have been allowed to submit documents and data required by several law enforcement 
departments through a single window platform for only once, and the platform will 
automatically send the data to each law enforcement department and feedback the 
handling results to the single window platform. In this way, enterprises dont have to 
handle formalities a mong several law enforcement departments, submit documents 
respectively and wait for the examination and approval results on site, etc., thus saving 
a large amount of labour and time. Therefore, the clearance procedure has been 
changed from the "tandem" to  "parallel" type.  
 ¿La cooperación entre los departamentos de gestión de los puertos y aduana incluye algún 
procedimiento relacionado al tránsito de mercancías bajo control aduanero procedente de 
terceros países?  
Reply: According to Customs Law of the Peopl e's Republic of China , the formalities for 
customs supervision on cargo transshipment by a third -party country include transit, 
transshipment and through cargo. The transit, transshipment and through cargos are 
dispatched from abroad to abroad through Chin a, of which, the cargos delivered by land 
transportation in China are called transit goods; the cargos reloaded onto other 
transportation facilities at the Customs and do not involve domestic land transportation 
are called transshipped cargos; and the carg os delivered by ship and aircraft to China 
and transported abroad by the original transportation facilities are called through 
cargos.WT/TPR/M/3 42/Add.1  
 
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  37  PERU (ADD.1)  
Sobre la base de lo señalado en el documento WT/TPR/S/342  del 15 de junio de 2016, el Perú 
tiene las siguien tes preguntas:  
Pregunta 1  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1. Medidas que afectan directamente a las importaciones  
3.1.5. Otras cargas que afectan a las importaciones  
Párrafo 3.20. Las importaciones están sujetas al pago del impuesto sob re el valor añadido (IVA), 
que percibe la Administración de Aduanas en nombre de la Administración Estatal de Impuestos 
(SAT). El IVA se aplica a las importaciones sobre la base del precio c.i.f. más el derecho de 
importación. Si las mercancías están sujet as además al impuesto (especial) sobre el consumo, el 
IVA se calcula incluyendo el importe de dicho impuesto.1 El IVA tiene dos tipos: el 13% y el 17%. 
Desde el examen anterior no ha cambiado la lista de los productos sujetos al tipo del 13% y de los 
exent os del IVA.2 Siguen estando exentos del IVA los productos agropecuarios de producción 
nacional vendidos directamente por los productores, pero no los importados.3 
4. POLÍTICAS COMERCIALES, POR SECTORES  
4.1. Agricultura  
4.1.3. Instrumentos de Política  
4.1.3 .1. Medidas que afectan a las importaciones  
Párrafo 4.10. El IVA aplicable a los productos agrícolas nacionales e importados es del 13%. Sin 
embargo, los productos agrícolas producidos y vendidos directamente por pequeños agricultores 
siguen estando exento s del IVA. La hoja de tabaco (es decir, el tabaco en hoja secado al sol y el 
tabaco en hoja tostado) comprada en China está sujeta al impuesto aplicable a la hoja de tabaco, 
del 20%.4 Según las autoridades, ese impuesto no se aplica a la hoja de tabaco imp ortada.  
Pregunta. - Teniendo en cuenta lo expuesto en los párrafos 3.20 y 4.10 del Informe elaborado por 
la Secretaría de la OMC, que indican que los productos agropecuarios nacionales (de China) están 
exentos del IVA a diferencia de los importados ¿Cómo se  compatibiliza las medidas descritas en los 
párrafos antes mencionados con las disposiciones sobre trato nacional?  
Reply: In the process of production, agricultural producers are exempted from VAT for 
the sales of their self -produced agricultural products;  while in the process of circulation, 
VAT is imposed as on imported agricultural products, with no difference.  
Pregunta 2  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.2. Medidas que afectan directamente a las exportaciones  
3.2.4. Apoyo y promoción d e las exportaciones  
Párrafo 3.108. Los exportadores tienen derecho a desgravaciones del IVA respecto de todos los 
productos exportados. Las tasas de desgravación varían en función de los productos, si bien suelen 
                                                
1 Normas para la aplicación del Reglamento provisional relativo al impuesto sobre el consumo, 
Decreto  Nº 51 del Ministerio de Hacienda (MOF) y la SAT. Consultadas en : 
http://www.gov.cn/gongbao/content/2009/content_1322133.htm  (solo en chino).  
2 Entre los productos sujetos a un IVA del 13% figuran los siguientes: cereales; aceites vegetales 
come stibles; agua potable, calefacción, aire acondicionado y agua caliente; gas, gas licuado de petróleo, gas 
natural, biogás y éster dimetílico; carbón; libros, diarios y revistas; y piensos, abonos, plaguicidas, maquinaria 
agrícola y película plástica para u sos agrícolas (Reglamento provisional relativo al impuesto sobre el valor 
añadido, Decreto Nº 538 del Consejo de Estado. Consultado en: http://www.chinatax.gov .cn/n810341/ 
n810765/n812171/n812680/c1190937/content.html ). 
3 Interpretación del IVA por la SAT, 28 de octubre de  2011. Consultado en:  
http://www.gov.cn/gongbao/content/2012/conte nt_2121706.htm  (solo en chino).  
4 Decreto Nº  464 [2006] del Consejo de Estado, Reglamento provisional sobre el impuesto aplicable a la 
hoja de tabaco. Consultado en: http://www.gov.cn/zwg k/2006 -05/10/content_277505.htm . WT/TPR/M/3 42/Add.1  
 
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  ser más bajas que el IVA pagado. Actualment e esas tasas son del 17%, 15%, 13%, 9%, 5% y 0% 
(gráfico  3.3).5 Las dos tasas de desgravación más frecuentes son del 17%, que se aplica 
aproximadamente al 29% de todas las líneas arancelarias, y del 0%, que se aplica al 22% de las 
líneas. Ciertas mercancía s no pueden beneficiarse de desgravación.6 Si se considera el valor de las 
exportaciones, más del 70% de las mercancías exportadas se benefician de tasas de desgravación 
del 17% y del 15%. En general, las frutas y los frutos de cáscara están sujetos a la t asa de 
desgravación del 5%, mientras que las especies amenazadas de animales y plantas no se 
benefician de desgravación.  
4. POLÍTICAS COMERCIALES, POR SECTORES  
4.1. Agricultura  
4.1.3. Instrumentos de Política  
4.1.3.2. Medidas internas  
4.1.3.2.1. Medidas de  ayuda  
Párrafo 4.18. La ayuda a la agricultura sigue otorgándose principalmente a través de los "cuatro 
programas de subvenciones": las Subvenciones directas a los agricultores (arroz, trigo y maíz); la 
Subvención global a los insumos agrícolas; la Subvenc ión para fomentar las cepas y semillas de 
calidad superior; y la Subvención para la adquisición de maquinaria y herramientas agrícolas. 
Según las autoridades, el principal programa de ayuda es la Subvención para la adquisición de 
maquinaria y herramientas agrícolas; no obstante, por lo que se refiere al gasto, es más 
importante el programa de la Subvención global a los insumos agrícolas (cuadro 4.5). Las 
transferencias presupuestarias para ese programa se duplicaron con creces en 2008 y siguieron 
aumentado cada año hasta alcanzar la suma de 107.800 millones de yuan en 2012, suma que no 
ha variado posteriormente.7 Las autoridades han señalado que los desembolsos para ese programa 
no han variado desde  2012 porque el precio de los insumos se ha mantenido establ e. 
Pregunta  - A la luz de lo indicado en los párrafos 3.108 y 4.18 del Informe elaborado por la 
Secretaría de la OMC, que indican que China mantendría subvenciones a las exportaciones de 
productos agrícolas (en tanto se subvenciona la tierra que produce), ¿estas subvenciones tienen 
algún tipo de condicionamiento para ser otorgadas?, ¿los exportadores también podrían ser 
beneficiarios?  
Reply: Since joining WTO, China has  not offered any export subsidy to its agricultural 
products.  
 
                                                
5 Información en línea de la Administración Estatal de Impuestos. Consultada en: http://hd.chinatax. 
gov.cn/fagui/action/InitChukou.do ; y Cai Shui [2014 ] Nº 150, Ministerio de Comercio y Administración Estatal 
de Impuestos: Circular relativa al ajuste de las tasas de desgravación aplicables a las exportaciones de 
determinados productos. Consultada en: http://www.mof.gov.cn/zhengwuxinxi/zhengcefabu/01412/t 201412 
311175119.htm (solo en chino).  
6 Entre los productos que no pueden beneficiarse de la desgravación del IVA figuran los siguientes: 
productos de gran consumo de energía, productos muy contaminantes y productos relacionados con la 
explotación de recur sos; y especies amenazadas de la fauna y la flora (información facilitada por las 
autoridades chinas).  
7 OMC (2014), Examen de las políticas comerciales - China , Ginebra; y documento G/SCM/N/220/CHN - 
G/SCM/N/253/CHN - G/SCM/N/284/CHN de la OMC, de 30 de o ctubre de  2015.  WT/TPR/M/3 42/Add.1  
 
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  38  PERU (ADD. 2) 
Sobre la bas e de lo señalado en el documento WT/TPR/G/342  del 15 de junio de 2016, el Perú 
tiene las siguientes preguntas:  
Pregunta 1  
2. ENTORNO ECONÓMICO Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.3. Ajuste de la Estructura Económica y Transformación d el Modelo de Desarrollo  
2.3.6. Otras cargas que afectan a las importaciones  
Párrafo 2.32. Desde el último examen, el Gobierno chino ha seguido aumentando las inversiones 
en la agricultura y las zonas rurales. Se adoptaron medidas para alcanzar los objetivo s siguientes: 
acelerar la innovación y el desarrollo de la tecnología agrícola; promover vigorosamente la 
mecanización de la agricultura; intensificar la construcción de obras de infraestructura, con 
inclusión de sistemas de riego, redes de distribución de  electricidad, carreteras, gas natural y 
viviendas; reformar y mejorar la política de apoyo a la agricultura, lo cual incluye integrar, en una 
sola subvención de apoyo y protección de la agricultura, la subvención para la compra de 
maquinaria y herramienta s agrícolas, la subvención para promover la utilización de cepas y 
semillas de calidad superior y la subvención directa a los agricultores, y adaptar el objetivo de esa 
política para reforzar sobre todo la protección de la fertilidad de las tierras cultiva bles; continuar 
las reformas, ejecutar proyectos piloto de préstamos hipotecarios basados en los derechos de 
explotación de la tierra por contrata y los derechos de propiedad sobre las viviendas de los 
agricultores, ejecutar proyectos piloto sobre la refor ma de los derechos y funciones de las 
entidades colectivas rurales en lo que respecta a sus activos y su régimen de participación; y 
poner en marcha proyectos de importancia crucial para aliviar la pobreza. El Gobierno chino 
también ha reforzado la coordin ación del desarrollo urbano y rural como parte de las actividades 
de urbanización y ha procedido a urbanizar metódicamente a la población rural migrante.  
Pregunta  - ¿Puede China comentar cuáles han sido los beneficios de integrar, en una sola 
intervención de apoyo y protección de la agricultura, la subvención para la compra de maquinaria 
y herramientas agrícolas, la subvención para promover la utilización de cepas y semillas de calidad 
superior y, la subvención directa a los agricultores?  
Reply:  The three  subsidies have been integrated into the agriculture support and 
protection subsidy on a nationwide scale in 2016 and the purpose of the policy has been 
adjusted into mainly supporting the protection of farmland fertility. Oriented towards  
realizing green ec osystem, the agriculture support and protection subsidy encourages 
the use of multiple measures and innovation of methods and approaches to improve 
comprehensive usage of crop straw, guide farmers to combine measures such as straw 
manuring, soil preparatio n of deep -loosening, reduction in the use of chemical fertilizers 
and pesticides, and applying  organic fertilizers, to effectively strengthen protection of 
the quality of cultivated land, and increase cultivated land fertility.  
Pregunta 2  
2. ENTORNO ECONÓM ICO Y COMERCIAL Y ORIENTACIÓN DE LA POLÍTICA 
MACROECONÓMICA  
2.4. Profundización continua de la reforma  
2.4.1. Fomento continuo de la reforma de los procedimientos administrativos de examen 
y aprobación  
Párrafo 2.38. El 2 de octubre de 2015, el Consejo de E stado dio a conocer los Dictámenes del 
Consejo de Estado sobre la aplicación de un sistema de lista negativa para el acceso a los 
mercados . Según esos Dictámenes, se aplicaría a título experimental en algunas regiones un 
sistema de lista negativa, que se a doptaría oficialmente en todo el país a partir de 2018. El 
documento dispone que los departamentos pertinentes formularán sin dilación una lista negativa 
para la inversión extranjera. El sistema de lista negativa para el acceso a los mercados se refiere a 
una serie de disposiciones institucionales en las que el Consejo de Estado enumera claramente los 
sectores, ámbitos y actividades empresariales respecto de los cuales está prohibido o restringido el WT/TPR/M/3 42/Add.1  
 
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  acceso al mercado en el territorio de la República Popula r China; y las autoridades de varios 
niveles deben adoptar las correspondientes medidas de gestión de acuerdo con la legislación 
vigente. Podrá participar en los sectores, ámbitos y actividades empresariales no incluidos en la 
lista negativa todo tipo de o peradores del mercado, en condiciones de igualdad y de acuerdo con la 
legislación vigente. La incorporación del método de gestión basado en una lista negativa en la 
reglamentación de los mercados internos denota la determinación del Gobierno chino de 
profu ndizar las reformas y establecer normas equitativas y transparentes y contribuirá a definir 
con más claridad los límites de las funciones gubernamentales. En marzo de 2016, la Comisión de 
Desarrollo Nacional y Reforma y el Ministerio de Comercio publicaron  el Proyecto de lista negativa 
para el acceso a los mercados (que se utilizaría en las regiones piloto), que se ha aplicado a título 
experimental en Tianjin, Shanghái, Fujian y Guangdong. (El subrayado es nuestro)  
Pregunta  - ¿Qué actividades empresariales y ámbitos del sector agrícolas y de alimentos 
están considerados en los Dictámenes del Consejo de Estado sobre la aplicación de un 
sistema de lista negativa para el acceso a los mercados?  
Reply: Please refer to  the Notice of the  National  Development and Re form Commission 
and Ministry of Commerce on Printing and Distributing  the Draft of Market Access 
Negative List (to be used in pilot regions) ( Fa Gai Jing Ti [2016] No. 442, which can be 
found on the  official website of NDRC at www.ndrc.gov.cn ). 
Sobre la base de lo señalado en el documento WT/TPR/S/342  del 15 de junio de 2016, el Perú 
tiene las siguientes preguntas:  
Pregunta 3  
4. POLÍTICAS COMERCIALES POR SECTORES  
4.1. Agricultura  
4.1.3. Instrumentos de política  
Párrafo  4.38. La NDRC está encargada de asignar los contingentes de cereales y algodón y el 
MOFCOM adjudica el resto. Algunos productos sujetos a contingentes arancelarios (por ejemplo, 
los cereales, el algodón, el azúcar y los abonos químicos) también están suje tos a comercio de 
Estado. En esos casos, una parte del contingente se asigna a empresas comerciales del Estado y el 
resto a empresas privadas. La tasa de utilización de los contingentes arancelarios ha sido siempre 
baja; sin embargo, eso cambió en 2013 y 2 014 en el caso de productos como el azúcar, la lana y 
el algodón (cuadro 4.2).  
Pregunta  - ¿Podría China explicar por qué la tasa de utilización de los contingentes cambió en los 
años 2013 y 2014 en el caso de productos como el azúcar, la lana y el algodón?  
Reply: China has strictly observed related commitments for joining WTO and assigned 
the import tariff -rate quota s according  to relevant  provisions in the  Interim Measures 
for the Administration of Import Tariff -rate Quotas of Agricultural Products. After 
acquiring the quota s, enterprise s decide for themselves whether to import in light of  
commercial factors such as  grain price s in domestic  and international markets . 
Therefore, the change of quota f ill rate mainly depends on market factors.  WT/TPR/M/3 42/Add.1  
 
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  39  RUSSIAN FEDERA TION  
WT/TPR/S/342  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Import  
3.1.1 Customs procedures and requirements  
Paragraph 3.1, page 46  
Customs procedures continue to be regulated by several pieces of legislation (Table 3.1). In  
addition, the General Administration of Customs of the People's Republic of China (GACC), the 
national authority responsible for customs administration in China, issues administrative customs 
ordinances and announcements to introduce and enforce changes i n customs procedures. Between 
January 2014 and September 2015, the GACC issued 142 GACC announcements and 13 GACC 
decrees. The announcements focused, inter alia , on: paperless procedures, the harmonization of 
customs procedures throughout China, the imposi tion of anti -dumping duties, and tariff 
classification. The decrees were related to: improving the transparency of customs operations 
through the disclosure of information; facilitating the return of imported goods; standardizing the 
registration of custom s declaration entities; implementing free trade agreements; and rating 
enterprises according to their credit history.  
Questions:  
1) Could China please specify the measures applied in order to enhance harmonization of 
customs procedures throughout China?  
2) Please provide further information on the timeframe for harmonization of customs 
procedures throughout China?  
3) Please elaborate on the new administrative procedures issued by the GACC between 
January  2014 and September 2015 ?  
Reply  to questions 1 to 3: According  to the Custom Law, the General Administration of 
Customs (GAC) administrates all customs throughout the country in a unified manner. 
The legal basis of the customs procedures applied to each custom area and port are the 
Customs Law, the regulations issued  by GAC and relevant normative documents, which 
are unified. According to the requirements of Guiding Opinions of the State Council on 
Promoting the Scientific Development in Special Customs Supervision Area (Guo Fa 
[2012] No.  58) and Notice of General Off ice of the State Council on Issuing the Scheme 
of Accelerating the Integration and Optimization of Special Custom Supervision Zones 
(Guo Ban Fa [2015] No.  66), export processing zones, bonded logistics zones, cross -
border industrial zones, bonded port zone s and eligible bonded zones will be gradually 
integrated into comprehensive bonded zones. The new special customs supervision 
areas will be named as comprehensive bonded zone.  
To facilitate the clearance of the customs, the GACC launched the reform of pape rless 
customs clearance in August 2012. On April 1, 2014, the GACC expanded the reform and 
pilot program to all business sites and business fields of customs offices across the 
country, realizing a full coverage of the reform. The operation method of custo ms 
clearance has shifted from approval and signing on paper documents and manual flow 
and human -computer interaction to approval on customs declarations by customs offices 
and inspection and release of goods based on electronic data in the accompanying 
documents. The information exchange with companies is realized through on -line 
electronic receipt. Moreover, clearance procedures are further optimized, clearance 
operations are simplified, duties of all functional departments are identified, and sharing 
and exchange of information regarding customs operation are strengthened, thus, an 
efficient customs clearance mode which is based on electronic accompanying documents 
and which can be applied to all law -abiding enterprises is developed.  
From July 1, 2014, th e GACC successively launched the reform on integration of 
clearance in Beijing, Tianjin and Hebei, the Yangtze River Economic Belt, the four pan WT/TPR/M/3 42/Add.1  
 
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  Pearl River provinces, the Silk Road Economic Belt and the northeastern region. After 
the reform, companies hav e more flexibility in choosing the location for declaration and 
payment of customs, location for inspection and release of goods, and the mode of 
customs clearance. Goods imported and exported through various ports across the 
country can be declared locall y, therefore, giving more convenience to companies for 
customs clearance and relieving them of the inconvenience of running between local 
areas and ports.  Previously, it would cost several days for companies to declare, 
transport, and release goods remotel y. Now, only half a day is needed for completion of 
all procedures locally. The efficiency of customs clearance is improved, more cost of 
logistics is saved, and the combination of economic benefit and social benefit is realized. 
Moreover, after the reform , information sharing, mutual assistance in law enforcement, 
mutual recognition of results between customs offices of different areas are gradually 
realized, therefore, it seems that companies are facing the same customs office when 
going through customs f ormalities at any customs office within the area, that is multiple 
customs offices act as one office.  
From January 2014 to September 2015, related administrative procedures have been 
published. For details please visit the official website of GACC.  
Paragraph 3.4, page 47  
Question:  The Secretariat 's Report stated: In order to facilitate trade, China has launched a series 
of reforms to make customs procedures more efficient both for imports and exports. Could China 
please clarify the main issues of these re forms and its timeframe?  
Reply: On August 1, 2012, the GACC started to select some business sites of customs 
offices to carry out pilot program of paperless customs clearance. On April 1, 2014, the 
GACC issued the GACC Announcement on Further Promoting Pap erless Customs 
Clearance  (GACC Decree [2014] No. 25) and extended the reform to all the custom areas 
across the country, realizing a full coverage of the reform.  
From July 1, 2014, the GACC successively launched the reform on integrated regional 
customs c learance in Beijing, Tianjin and Hebei, the Yangtze River Economic Belt, the 
four pan Pearl River provinces, the Silk Road Economic Belt and the northeastern region. 
The coverage of all 42 customs offices across the country by the reform is realized and a 
regional customs management mechanism with high standard and efficiency is 
established.  
3.1.4 Tariffs  
3.1.4.1 Applied tariffs and tariff structure  
Paragraph 3.11, page 49  
China's tariff is comprised of MFN rates, "agreement tariff rates", special preferen tial tariff rates, 
general tariff rates, and tariff quota rates. In addition, interim tariff rates, which are usually lower 
than MFN rates, are applied for a specific period of time (i.e. usually one year).  
Paragraph 3.12, page 49  
Agreement rates apply to imports from countries and customs territories with which China has 
preferential trade agreements (Section 2). Special preference duty rates are unilateral preferences 
applied to imports originating in least developed countries with which China has a trade  
agreement. General rates apply to: products whose origin cannot be determined; products from 
countries that do not have a reciprocal trade agreement with China; non -WTO Members; and some 
territories of EU member States. According to the authorities, if a country appears in several lists 
and may be subject to various duty rates, the most favourable rate applies, taking into account 
the rules of origin. Interim duties are fixed annually by the Customs Tariff Commission, and 
usually apply from 1 January to 31  December of each year. Interim duties are applied on an MFN 
basis and replace the MFN duties for the lines that are affected. Interim duty rates are lower than 
the MFN rates and in certain instances the interim duty rate applies to just part of a tariff l ine. WT/TPR/M/3 42/Add.1  
 
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  Questions:  
1) Could China please elaborate on the purpose of the mentioned above interim tariffs?  
2) Please explain the conditions under which interim tariff rates are applied?  
3) Please clarify which criteria are used to determine part of a tariff line that w ould benefit 
of interim tariff rates?  
Reply to questions 1 to 3: The interim tariff rates are determined according to the 
Customs Law of the People's Republic of China and Regulations of the People's Republic 
of China on Import and Export Duties.  
3.1.4.2 B ound tariffs  
Paragraph 3.16, page 51  
Since China's accession to the WTO, its average applied MFN rates have closely followed its bound 
rates. China bound 100% of its tariffs, at ad valorem rates ranging from 0% to 65% for agriculture 
(WTO definition) and f rom 0% to 50% for non -agricultural products (Table A3.1). However, while 
the tariffs were bound at ad valorem rates, applied tariffs on 42 tariff lines are non -ad valorem . 
The authorities state that the ad valorem equivalents of the non -ad valorem rates ar e always equal 
to the bound tariff rate.  
Question:  Could China please provide the methodology used by authorities to ensure the 
equivalence of bound and applied rates?   
Reply: The applied rate used by China is equal to or lower than the bound rate. There i s 
some ambiguity in this question. Hope that the Russian Federation would make 
clarification.  
3.1.4.3 Bilateral and regional preferences  
Table 3.3 Summary analysis of the Chinese preferential tariff, 2015, page 51  
Question:  It is mentioned in Table 3.3 th at China offered concessions to Hong Kong, China and 
Macao, China; and to Chinese Taipei under CEPA and ECFA agreements. In this context, could 
China please elaborate on the difference between CEPA and ECFA agreements? Please indicate 
what are the main pur poses and objectives of the said agreements?  
Reply: Hong Kong, China CEPA and Macao, China CEPA are free trade agreements that 
the sovereign entity of the People's Republic of China  signed with its two separate 
customs territories, i.e. Hong Kong and Macao , based on the principle of one country, 
two systems and WTO rules and out of the needs of economic and trade cooperation and 
development between mainland China and Hong Kong and Macao. The aim of CEPA is to 
strengthen cooperation on trade and investment b etween mainland China and 
Hong  Kong and Macao and promote mutual development through the following 
measures: First is to gradually reduce or eliminate effectively all tariff barriers and non -
tariff barriers existing in goods trade between mainland China an d Hong Kong and 
Macao. Second is to gradually realize liberalization of service trade and effectively 
reduce or eliminate all measures of discrimination between both parties. Third is to 
improve facilitation of trade investment. CEPA mainly covers goods tr ade, service trade, 
facilitation of trade investment, and economic and technological cooperation, etc. 
Regarding goods trade, it is stated in CEPA that, from January 1, 2004, mainland China 
would apply zero -tariff policy to products of 273 tariff lines whi ch are originated from 
Hong Kong and Macao and from January 1, 2006, all products exported to mainland 
China which are originated in Hong Kong and Macao would be applied zero -tariff policy. 
Moreover, non -tariff measures (import quotas and import licensing)  and tariff quota 
limit on products from Hong Kong and Macao would be lifted by mainland China. Anti -
dumping and anti -subsidy measures would no longer be used against each other.  WT/TPR/M/3 42/Add.1  
 
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  ECFA agreements were signed on June 29, 2010 in Chongqing under the authoriz ation from 
mainland China's  Association for Relations across the Taiwan Straits and Taiwan's Straits Exchange 
Foundation. It not only takes into full account of characteristics of both parties, but also includes 
elements and contents which a general free t rade agreement should cover. It is a special 
arrangement made for promoting comprehensive and deep cross -strait economic cooperation. 
There are institutional arrangements made by ECFA regarding cross -strait issues such as tariff 
concessions on goods trade,  opening -up of service trade market, and investment cooperation and 
industrial cooperation. It is also stipulated that after signing of ECFA, negotiations on the four 
subsequent and separate agreements regarding goods trade, service trade, investment prote ction, 
and settlement of disputes shall be pushed forward successively. The aim of these arrangements is 
to accelerate the normalization, liberalization, and institutionalization of cross -strait economic 
relationship and promote mutual benefit and mutual p rosperity.  
3.1.5 Other charges affecting imports  
Paragraph 3.20, page 53  
Imports are subject to Value Added Tax (VAT), which is collected by Customs on behalf of the 
State Administration of Taxation (SAT). VAT on imports is charged based on the c.i.f. pri ce plus 
the import duty. If goods are also subject to the consumption (excise) tax, VAT is calculated 
including the consumption tax. VAT has two rates: 13% and 17%. The list of products subject to 
the 13% rate and those that are exempt from the 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.  
Question: Domestically -produced agricultural products sold directly by the produce r continue to be 
exempted from VAT, while imported goods are not.  According to China's  replies on this subject in 
previous TPR Reports, such VAT exemption applies to small -scale farmers selling agricultural 
products in open air markets. Could China provide  the revenue threshold at which agricultural 
producers start to pay VAT?  
Reply: Domestically produced agricultural products sold by farmers are exempted from 
VAT.  
3.1.6 Import prohibitions, restrictions, and licensing  
Paragraph 3.22, pages  54-55 
Question:  China notified that it applies an import licensing regime, under which there are three 
types of licences: automatic licences, non -automatic licences and tariff -rate quota certificates. 
According to China's last notification, the licensing regime has not c hanged substantially since the 
last Review in 2014. In this context, please indicate whether TRQ certificates are equivalent to 
non-automatic licences in the meaning of the Agreement on Import Licensing Procedures?  
Reply: TRQ does not set quantities restr iction on imports, thus it is not non -automatic 
licensing.  
Paragraph 3.25, page  55 
Restricted goods are administered through non -automatic licences and/or quotas. Nonautomatic 
licences apply to imports regardless of the origin, unless otherwise stipulated in the free trade 
agreements negotiated by China. Products subject to non -automatic licensing are listed in the 
Catalogue of Import Goods Subject to Licensing, issued by MOFCOM, the GACC and the General 
Administration of Quality Supervision, Inspection and  Quarantine (AQSIQ), revised on an annual 
basis. They are also listed in the Catalogue of Restricted Imports for Solid Waste. In 2015, the 
Catalogue of Import Goods Subject to Licensing listed 89 tariff lines (87 in 2013) at the HS 8 -digit 
level that were subject to non -automatic import licensing; and the Catalogue related to solid waste 
listed 45 lines (Chart 3.2). In 2015 as in 2013, imports subject to non -automatic licensing were 
mainly used machinery and electronic equipment. The terms and procedures to  obtain a non -
automatic import licence remain unchanged since the previous Review.  WT/TPR/M/3 42/Add.1  
 
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  Questions:  
1) Could China please explain the difference between the said Catalogues, as well as the 
reasons to include products subject to non -automatic licensing in two differ ent 
Catalogues?  
2) Please specify the exact number of tariff lines subject to non -automatic licensing?  
Reply  to questions 1 and 2: According to Foreign Trade Law of the People's Republic of 
China , Regulation  of the People's  Republic  of China on the Administra tion of the 
Importan t Export  of Goods , and Regulations on Key Used Mechanical and Electronic 
Products , Chinese government will issue the Catalogue of Import Goods Subject to 
Licensing , which will be revised once a year. The latest Catalogue has been issued  on 
December 30, 2015 and came into force on January 1, 2016, covering 13 product 
catogories. Related catologue can be checked on -line.  
Paragraph 3.26, page  55 
Question : It is mentioned  in the paragraph 3.26 that during the period 2013 -2014 China did not 
apply any import quotas. However, nothing in the Secretariat 's Report indicates that China did not 
apply quotas in 2015, please clarify whether China applied quotas in 2015?  
Reply: China does not apply any import quotas.  
Paragraph s 3.27 -3.28, page  56 
Prohibited products are listed in the Catalogue of Commodities Subject to Import Prohibitions, 
issued by MOFCOM and other relevant ministries and bodies, such as the GACC and AQSIQ, which 
dates to 2005. In 2015, China's notification listed 365 products (HS 8 -digit level) including mainly 
machinery (Chapter 85) and transport equipment (Chapter 87). Prohibited items related to solid 
waste are listed in the Catalogue of Prohibited Imports for Solid Waste, last amended in 2015.  
In addition to the general import pro hibitions included in the Catalogue of Commodities Subject to 
Import Prohibitions, other prohibitions apply to imports under processing trade and are listed in 
the Catalogue of Commodities Prohibited under Processing Trade . The 2014 Catalogue included 
486 tariff lines (in HS 2012 at the 8 -digit level) compared to 394 in 2010. The increase in the 
number of tariff lines subject to import prohibition under processing trade is mainly related to tariff 
lines in HS Chapter 72 (iron and steel). The other products subject to these prohibitions have 
remained unchanged since the last Review.  
Questions:   
1) It is mentioned in paragraph 3.22. that [i]mport prohibitions, restrictions and non -
automatic licensing are maintained in China to safeguard national security; public 
morality; human, animal and plant health; the environment and exhaustible natural 
resources;  to comply with China's obligations under international agreements; and for 
balance -of-payments reasons. It is also stated that machinery (HS Chapter 85), transport  
equipment (HS Chapter 87), iron and steel (HS Chapter  72) are subject to import 
prohibition. Could China please elaborate on the reasons to establish the import 
prohibition to such goods?  
2) Please elaborate on the rationale behind the import prohibitions un der processing trade? 
Specify products the import of which is prohibited under processing trade?  
Reply: The aim of China to prohibit import of some products is to safeguard national 
security, public morality, human, and animal and plant health and to prote ct the 
environment.  
The Ministry of Commerce and the GACC issued the Catalogue of Prohibited Commodities 
in Processing Trade (Announcement No. 90) in 2014. Please refer to this Catalogue  for 
specific products.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.29, page 56  
The list of imports subject to restriction or prohibition can be adjusted as necessary, and imports 
of goods that are not included in a Catalogue can be restricted or prohibited on a temporary basis 
by the relevant authorities. China's legislation also allows the authorities to, inter alia , restrict 
imports to allow the establishment of a particular domestic industry or to accelerate its 
development. Under Article 16 of the Foreign Trade Law, imports of agricultural, animal and fish 
products may also be restricted if circumsta nces require it. The authorities have noted that this 
provision has never been used.  
Questions:  
1) Could China please provide the exhaustive list of goods subject to import restriction in 
order to allow the establishment of a particular domestic industry or t o accelerate its 
development?  
2) Could China please elaborate on the legal basis under WTO law, justifying these 
measures?  
3) Taking into account that China has never applied this provision of legislation:  
a) Could China present the reasons to maintain this provis ion as well as the legal basis 
under WTO law, justifying this provision?  
b) Does China intend to review its legislation?  
Reply: Please refer to Article 16 of the Foreign Trade Law. Related laws of China are in 
compliance with WTO rules  
3.1.8.1 Standards and t echni cal regulations  
Paragraph 3.60, page 62  
China has four kinds of standards: national, industry/sectoral, local, and enterprise standards. The 
first three types can be either voluntary or mandatory (technical regulations). National standards 
are develop ed 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 professional field at the national lev el. 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. The exception to  this is in cases where the local standards are stricter 
national ones. Enterprise standards may be developed for an enterprise when national, 
industry/sectoral or local standards are not available.  
Question:  According to the Secretariat Report  China has f our kinds of standards, in this regard 
please provide further information on similarities and differences of these standards. Please 
indicate whether all locally developed standards (local standards) which are more stringent than 
national ones are consiste nt with  the international requirements?  
Reply: According to the Standardization Law of the People's Republic of China , the 
project initiation, examination, numbering, and publication of national standards shall 
be performed by The Standardization Administr ation of China; industrial standards shall 
be developed by relevant administrative departments under the State Council; and local 
standards shall be developed by administrative departments on standardization of 
various provinces, autonomous regions, and mu nicipalities directly under the Central 
Government.  
Regarding safety and hygienic requirements on industrial products which need to be 
centrally managed within various provinces, autonomous regions, and municipalities 
directly under the Central Government,  yet without national standards nor industrial 
standards, local standards can be developed. After publication of related national 
standards or industrial standards, such local standard will be abolished.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.73, page 65  
The CCC Catalogue is approv ed and released jointly by AQSIQ and the CNCA, together with the 
relevant industrial administrative departments, if approval from the industry regulator is required. 
Responsibility for the general administration of the compulsory product certification syst em and its 
implementation lies with the CNCA. This involves updating the CCC Catalogue, drafting and 
promulgating the implementing rules for the compulsory certification of products listed in the 
CCC Catalogue, designing and promulgating certification mark s, defining the requirements for 
CCCs, designating certification bodies, testing laboratories and inspection bodies, carrying out 
conformity assessment activities for CCC certification, designating the organization that issues 
CCC marks, and handling compl aints and appeals related to compulsory product certification. The 
CNCA may also authorize local Quality and Technical Supervision Bureaus and Local Entry -Exit 
Inspection and Quarantine Bureaus as local certification supervision authorities for products li sted 
in the CCC Catalogue in areas under their administration. Random conformity sampling tests are 
conducted on imports that have already acquired a CCC.  
Question:  According to Russian companies, there are challenges in exporting to China due to 
delays in  updating the CCC Catalogue. Does China plan to improve the administration of the said 
system?   
Reply: The CCC Catalogue  is publicized through announcement. It is suggested that the 
official website of the Certification and Accreditation Administration of the People's 
Republic of China  be timely visited.  
Paragraph 3.70, page 65  
During its last Trade Policy Review in 2014, China was invited to streamline and review the 
domestic standards framework, and to look into replacing local standards with national st andards 
where relevant. China replied that it was actively facilitating integration and optimization of 
mandatory national, industrial and local standards to reduce the number of standards. During the 
current Review, the authorities noted that a reform of the standardization system is under way, 
and that a new mandatory national standards system will be established. As a result, the State 
Council issued a Plan for Deepening Standardization Reform on 15 March 2015 and work has been 
carried out to eliminate u nnecessary standards: the authorities indicated that by January 2015, 
4,354 local standards had been annulled.  
Question : The authorities indicated that 4,354 local standards had been annulled under the Plan 
for Deepening Standardization Reform. In this reg ard please specify whether these standards were 
transformed into national standards or they were completely repealed? Were the mentioned 
changes notified as required under the TBT Agreement  (provided that annulled standards were 
obligatory for producers).  
Reply: According to the Standardization Law of the People's Republic of China , after 
publication of national standards or industrial standards, such local standard shall be 
abolished. After introduction of the standard, the department which developed it sh all 
review the standard duly based on the needs of development of science and technology 
and the needs of economic development in order to determine if current standard shall 
remain in force or be revised or abolished. The number of 4,354 of local standard s that 
were abolished by related authorities is an accumulative one, including local standards 
which were abolished by administrative departments on standardization of various 
provinces (or autonomous regions or municipalities) since 1989.  
Paragraph 3.75,  page 66  
To obtain the CCC mark, an application must be submitted to the authorized accredited 
certification bodies (ACB) designated by the CNCA, each of which is authorized to provide 
certification for several products subject to the CCC. In the context o f the present Review, the 
authorities have indicated that there are 22 mandatory certification bodies. The application must 
be accompanied by supporting material required under the specific product certification rules. A 
review committee is established by the CNCA, which analyses the application through the 
examination of files, and the organization of meetings and hearings. The investigation may also WT/TPR/M/3 42/Add.1  
 
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  include type -testing of product samples through a CNCA -designated test laboratory in China, and 
factory ins pection by representatives of a CNCA -designated certification body. The resulting report 
will be analysed by the CNCA, which must make a decision within 10 days or 15 days under special 
circumstances. If a product meets the certification requirements, the CCC is issued and the 
applicant notified within 90 days of the date of the acceptance of the application. The CNCA's 
decision is published on its website. After a CCC is issued, certification bodies re -inspect the 
manufacturing facilities on a regular basi s. The frequency depends on the security level and quality 
stability of the product and the classification status of the producing enterprise. Applications to 
renew the CCC must be submitted 90 days prior to the expiry of the certificate. CCCs are valid fo r 
five years from the date of approval of the application.  
Question:  The mentioned above factory inspection by representatives of a CNCA -designated 
certification body is required for the importation of certain goods to China. Russian companies  
experience d ifficulties in obtaining the certificate of conformity  caused by frequent and unjustified 
delays in conducting agreed factory inspections. Please clarify whether the CNCA  plans to improve 
CNCA -designated  certification  body practices in this context?  
Reply:  The CNCA has always been urging certification bodies to better serve companies 
to be certified. In the future, it will continue to urge certification bodies to make efforts 
in aspects such as strenthening their service awareness and improve their service ability 
and constantly improve the experience of certification and inspection of these 
companies.  
3.1.9 Sanitary and phytosanitary requirements  
Paragraph 3.80, page 67  
The most important change regarding the legislation that regulates the SPS regime in Ch ina since 
the last Review, has been the promulgation of the Food Safety Law in 2015. The other laws and 
regulations that were in place at the time of the last Review, remain in place (Table 3.8). Existing 
legislation stipulates the procedures to establish SPS requirements and to regulate imports subject 
to SPS measures, including their inspection, quarantine and supervision.  
Question:  Could you please clarify whether the other laws and regulations which remained in place 
since 2014 have been immensely chang ed due to the new Food Safety Law promulgation? Whether 
the amendments are available in English, could you please provide the web -link to them? Are 
there still any existing contradictions between Food Safety Law and other legislation regulating 
China`s SPS  regime?  
Reply: After the revision and implementation of Food  Safety  Law of the People's  
Republic  of China , its supporting administrative regulation Regulation on the 
Implement ation of the Food Safety Law of the People's Republic of China  needs to be 
revised correspondingly. The revision of this regulation has been included in the 
Legislative Work Plan of the State Council in 2016 . Currently, China Food and Drug 
Administration is studying and drafting the revision of this regulation.  
Paragraph 3.81, page  68 
Questions : 
1) It is mentioned in paragraph 3.81 that the Food Safety Law aims at strengthening the domestic 
food safety management system. Please clarify whether it regulates t he import or export regimes? 
If no, could you please provide the laws, which regulate the international trade SPS regime? Please 
indicate whether the requirements for the national producers in domestic market considerably 
differ from the requirements for i mporters and/or exporters? Please specify what are these 
differences?  
Reply: The following information is available in the website of China Food and Drug 
Administration: the approval certificates, for imported health food or related information 
of registra tion certificates (including product technical requirements), generated during 
examination by national entry -exit inspection and quarantine authorities; formula WT/TPR/M/3 42/Add.1  
 
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  information of formula foods for special medical purposes and infant formula milk 
products, whi ch are registered with the approval.   
2) Article 35 of the Chinese Food Safety Law states that the State adopts a licensing system for 
the production and distribution of food. Any organization or individual entrepreneur engaged in 
food production, food distri bution, and catering service shall obtain the license. However, no 
license is required for the sale of edible agricultural products. In this respect, could you please 
clarify whether the mentioned requirement is applicable for importers, as they should be registered 
in the Registry of third countries producers?  
Reply: Article 2 of the Measures for the Administration of Food Production Licenses 
provides that within the territory of the People's Republic of China, food production 
licenses shall be required fo r food production activities in accordance with the law.  
3) Please provide more information on cases when the risk assessment should be conducted. 
Whether in this point all the cases are mentioned.  
Reply: China will comply with the Article 5 of SPS Agreement Assessment of risk and 
determination of the appropriate level of sanitary and phytosanitary protection. When 
developing sanitary and phytosanitary measures, China will comply with provisions of 
on the basis of risk assessment, applicable for related circum stance, for the life and 
health of humans, animals and plants".  
4) Please clarify whether a food safety tracing system is already in place? Whether this system  is 
designed to work only within the territory of China? Is the intercommunication with third countr ies 
tracing systems possible?  
Reply: The system is under development. For information relating to the system, please 
refer to Opinions on Accelerating the Development of Important Product Traceability 
System (Guo Ban Fa [2015] No. 95)  
Paragraph 3.82, page 69 
At the time of the last review in 2014 there were six institutions (i.e. the Ministry of Health (MOH), 
the Ministry of Agriculture (MOA), AQSIQ, the State Administration for Industry and Commerce 
(SAIC), MOFCOM, and the State Food and Drug Administratio n (SFDA)) in charge of the SPS 
system in China. Since then, there have been major changes regarding these institutions, as there 
was an overlap in functions and thus challenges regarding the enforcement and implementation of 
policies and specific measures.  
Question: Please indicate  which authority is responsible for import and cooperation with third 
countries SPS authorities?  
Reply: The General Administration of Quality Supervision, Inspection and Quarantine of 
the People's Republic of China (AQSIQ) is one of the authorities responsible for import 
and cooperation with third countries SPS authorities.  
Paragraph 3.89, page  71 
Overseas  enterprises  that produce  food and/or export  food into China  must be registered  by the 
state entry-exit inspection  and quaranti ne authority . To apply for registration, enterprises must be 
recommended to the CNCA via a competent authority of the countries (regions) where such 
enterprises are located or in other "prescribed manner".  
Questions:  
1) Could China please provide the informa tion on the timeframe for the registration procedure of 
foreign enterprises producing fish and fish products (after they were recommended to the CNCA by 
the competent authorities of third countries)?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The responsible institution of exporting country  shall file an official application of 
the registration of production enterprises and  recommended enterprises list of aquatic 
products. The CNCA will conduct a technical review on the documents. If they are 
qualified, the update procedures of the list woul d be completed in 20 working days.  
2) Please specify the term and scope (a batch, a kind of product) of the registration validity?  
Reply: The registration is valid for four years, and an application shall be submitted for 
an extension one year before expiry. The scope covers all foods and shall be gradually 
carried forward according to the provisions of the Announcement of General 
Administration of Quality Supervision, Inspection and Quarantine on Updating the 
Catalogue of Registration of Foreign Manufacturers  of Imported Foods (AQSIQ [2015] 
No. 152).  
3) Please describe the process for a foreign enterprise to become a company eligible to export fish 
and fish products to China?  
Reply: According to the Provisions for the Administration of the Registration of Overse as 
Manufacturers of Imported Food (AQSIQ [2012] Decree No. 145), in order to apply for 
registration, over manufacturers shall submit applications to Certification and 
Accreditation Administration of China (CNCA) on a unified basis through overseas 
competen t authorities. That is, the competent authorities of exporting countries shall 
submit to CNCA the manufacturers ' official applications for registration and the lists of 
recommended enterprises, and then submit the system documents concerning food 
safety ma nagement and relevant materials of specific enterprises applying for 
registration. The working process is as follows:  
Authorities of 
exporting countries 
recommend and 
submit official 
questionnaires and 
enterprises'
application On-site 
registration 
assessment 
(based on 
actual 
situations)CNCA accepts
the applicationsDocument
reviewMaking
decision on 
whether to 
approve or 
not
 
4) Generally, the inclusion of certain foreign enterprises into the list of companies eligible to 
export should be based on the information  provided by the competent authorities of the third 
countries. Thus, if all information provided by such authorities complies with the requirements, are 
there any additional requirements for foreign enterprises to provide supplementary technical 
informatio n for inspection to be carried out?  
Reply: According to Article 7 of the Provisions for the Administration of the Registration 
ofOverseas Manufacturers of Imported Food (AQSIQ [2012] Decree No. 145), in order to 
apply for registration, overseas manufacture rs of imported foods shall pass the 
recommendation of the competent authorities of the country (region) where it is located 
or by other stipulated ways to CNCA, and submit certificating documents and relevant 
application materials in line with Article 6 of  the Provisions;  
5) Please indicate the time period between the application and the initiation of inspection?  
Reply: According to requirements, on -site assessment will be conducted upon 
communication and negotiation with the competent authorities of exporting  countries.  
Paragraph 3.90, page 71  
Foreign enterprises that manufacture, import, process and store food must be registered with the 
CNCA before their food products are imported into China. In addition, the 2015 Food Safety Law in 
its Articles 74 -83 stipul ates special regulations for certain food or food -related products 
(e.g. supplements, "formula food for special medicinal purposes"; and infant and follow -up formula 
and other special foods), which are subject to strict supervision and administration. Ente rprises WT/TPR/M/3 42/Add.1  
 
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  producing these products must fulfil special registration and/or recordfiling formalities, establish a 
production quality management system, and submit a "selfinspection" report to the food and drug 
administration of the local government. Registrat ion and record -filing formalities vary according to 
the product.   
Question:  Could China please clarify how the information on registration of foreign enterprises is 
made available to other government bodies responsible for control at the border? Which is t he 
term to make this information available after the registration?  
Reply: According to laws, the industrial and commercial administrative departments 
publicize information through enterprise credit management information system about 
enterprise registrati on and filing of all companies which registered with them, including 
foreign -funded enterprises. Information on related companies will be publicized within 
20 working days upon its production.  
Paragraph 3.102 , page  74 
As in the case of imports , 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 . 
Question: Please  specify how restriction or ban on export could help to organize export bus iness 
management? Could China please elaborate on the legal basis under WTO law, justifying this 
measure?  
Reply: According to the Foreign Trade Law of the People's Republic of China, the import 
or export of related goods and technology can be restricted o r prohibited on the basis of 
the following reasons:  
(I) For safeguarding the national security, social public interests or public morality, China 
needs to limit or prohibit the import or export;  
(II) For protecting people's health or safety, the life or he alth of animals and plants, and 
the environment, China needs to limit or prohibit the import or export;  
(III) For implementing the measures related to the import and export of gold or silver, 
China needs to limit or prohibit the import or export;  
(VI) In terms of laws and administrative laws and regulations, the import or export of other 
items that needs to be restricted or forbidden;  
(VII) According to the regulations of international treaties and agreements concluded or 
acceded to China, the import or exp ort of other items that needs to be restricted or 
forbidden.  
The above -mentioned contents reflect the exception of Article 20 of GATT, which is in accordance 
with WTO rules.  
Paragraph 3.105 , page 75  
Goods that are freely exported may be subject to automati c export licensing for monitoring 
purposes, while goods that are subject to restriction are subject to non -automatic export licences. 
MOFCOM issues on a yearly basis the Catalogue of Goods Subject to the Administration of Export 
Licences. The Catalogue lis ts goods that are subject to export quota (licences), export quota 
bidding (licences), and to general export licensing (Table 3.11). For exports subject to a quota, the 
exporter needs to obtain quota access prior to applying for a licence. The additional r equirement of 
obtaining an export permit, which was compulsory prior to requesting the export licence, was 
removed for certain products (i.e. rare earths, tungsten and molybdenum). In addition, to 
"maintain foreign trade order", export declarations of cert ain products subject to export licensing WT/TPR/M/3 42/Add.1  
 
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  (e.g. liquorice, some types of magnesia products, rare earths, antimony and antimony products, 
and natural sands), when exported to Chinese Taipei; Hong Kong, China; and Macao, China, may 
be cleared only through des ignated ports.  
Question:  Could China please specify the difference between export quota licences and export 
quota bidding licences?  
Reply:  For details, please refer to the Administrative Measures on Goods subjet to Export 
Quotas and the Measures of Export Quotas Bidding.  
3.3.4 Price controls  
Paragraph s 3.166 - 3.167 , page 91  
China continues to apply price controls to commodities and services deemed to have a direct 
impact on the national economy and people's livelihoods, when necessary. Price controls are set by 
the NDRC at the central level, and the provincial DRCs and the Bureau of Commodity Pricing in 
each province.  
Price controls take two forms: "government prices" or "government -guided prices". Government 
prices (or government -determined prices) are fi xed prices set by the authorities, while 
government -guided prices, are prices set within a range. The commodities and services subject to 
price controls are listed in a Central Government Pricing Catalogue and in Local Government 
Pricing Catalogues compile d by the provinces, autonomous regions and municipalities, but they are 
approved by the NDRC.  
Questions:  
1) Could China please provide the list of commodities and services subject to price control?  
2) How China determines services having a direct impact on the n ational economy and 
people's livelihoods?  
3) Could China please elaborate of its intention to reduce the influence of the government in 
setting prices?  
Reply  to questions 1 to 3: Currently prices of more than 97% goods and services in 
China are determined by the market. Government pricing only covers a small number of 
goods and services, mainly limited to key public utilities, public welfare services, and 
network industries with natural monopoly. The price catalogues of the central 
government and provincial go vernments can be looked up on official websites of the 
National Development and Reform Commission, the development and reform 
commissions and price bureaus of various provinces. Services covered by price 
catalogue of the central government mainly include p ublic welfare services which 
provide for the basic needs of people's living. The aim of the narrowing of the scope of 
government pricing or the improving of the pricing flexibility in recent years is to adapt 
to the development of the market as well as to stimulate the vitality of the market and 
promote market competition.  
Paragraph 3.168 , page 92  
The determination of government prices or government -guided prices varies in accordance with 
the type of product or service. The criteria used in their formulati on include: the market situation, 
average social costs, as well as economic, regional and seasonal factors, development and social 
needs. The methodology for setting prices may differ across provinces but takes into account the 
same factors.  
Questions:   
1) Could China please specify how commodities and services subject to price control are 
determined?  WT/TPR/M/3 42/Add.1  
 
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  2) Could China please elaborate more specifically on the methodology for setting prices?  
Reply  to questions 1 and 2: According to the Price Law of the People's Republic of China , 
when determining whether to apply pricing of central government or local government 
or government guided -price, the main elements to be considered are public wel fare and 
monopoly. As to key public utilities, public welfare services, and network industries with 
natural monopoly, the price is determined by the sum of reasonable cost with 
reasonable profit.  
Paragraph 3.170 , page 93  
Local governments can also issue r egulations to set controlled or guided prices (Table 3.16). 
Minimum procurement prices for (unhusked) rice and wheat remain in place in main 
grain-producing areas (seven provinces for rice, and six provinces for wheat).  
Questions:  
1) Could China specify produ cts and services subject to controlled or guided prices 
established by the local governments?  
2) Could China please provide the criteria and methodology for setting prices controlled or 
guided by the local governments?  
Reply  to questions 1 and 2: The price ca talogues of provincial governments can be 
looked up in official websites of the development and reform commissions and price 
bureaus of various provinces. For key public utilities, public welfare services, and 
network industries with natural monopoly, the price is determined by the sum of 
reasonable cost with reasonable profit.  
3.3.6 Government procurement  
Paragraph 3.183 , page 98  
According to data provided by the Chinese authorities, the total value of government procurement 
increased to RMB 1.73 trillion in 2014, up from RMB 1.64 trillion in 2013 (Table 3.23). 
Procurement by local entities accounted for 95.2% of the total value of government procurement 
in 2014, with procurement by the Central Government accounting for only 4.8%. Government 
procurement in 2014 accounted for about 2.7% of GDP, down from 2.8% in 2013 and up from 
2.6% in 2012 and 2.1% in 2011. These figures cover only procurement by government 
departments, institutions, and public organizations using regular budget funds, for goods, 
constructi on, and services listed in the Centralized Procurement Catalogue or above certain 
thresholds for procurement using other financial resources. The figures do not include procurement 
by SOEs, which according to the Government Procurement Law does not fall un der the definition of 
government procurement.  
Questions:   
1) Could you please specify the provisions of the Government Procurement Law stipulating 
that procurements by SOEs are not covered by the mentioned Law?  
2) What is the legal framework for procurements by  SOEs?  
Reply: The purchasers in Article 2 of the Government Procurement Law  refer to state 
organs at all levels, public institutions, and organizations, not including state -owned 
enterprises.  
Reply: China does not have a uniform law regarding procurement project of state -owned 
enterprises. Related procurement project of some state -owned enterprises needs to 
comply with the Law of the People's  Republic  of China  on Tenders  and Bids.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.185 , page 99  
The Government Procurement Law covers purchases un dertaken with regular budget funds by 
government departments, institutions and public organizations at all levels, where the goods, 
construction and services concerned are included in the Centralized Procurement Catalogue, issued 
by the Ministry of Finance , and their value exceeds the respective prescribed procurement 
thresholds.  
Questions:   
1) Please explain how the Centralized Procurement Catalogue is composed?  
2) Could you please provide information how often the Centralized Procurement Catalogue is 
revised an d amended?   
Reply: The Centralized Procurement Catalogue  for government procurement projects 
under the budget of the central government shall be determined and publicized by the 
State Council. The Centralized Procurement Catalogue  for government procuremen t 
projects under the budget of the local government shall be determined and publicized by 
the government of various provinces, autonomous regions, and municipalities directly 
under the central government or their authorized bodies.  
Reply: The Centralized Procurement Catalogue  for central budget units will be revised 
once in two years.  The Centralized Procurement Catalogue  of local government will be 
developed by various provincial governments. For details please check on media such as 
www.ccgp.gov.cn  .  
Paragraph 3.187 , page 99  
The Government Procurement Law includes a "buy -domestic" (Article 10) provision, which was not 
modified by the 2014 amendment. As a result, the Government must procure domestic goods, 
constructi on projects and services, with certain exceptions: i) when the goods, construction, or 
services required are unavailable in China or, if available, cannot be procured on reasonable 
commercial terms; ii) when the goods, construction, and services are procur ed for use abroad; or 
iii) when otherwise provided for by other laws and administrative regulations. There are no criteria 
specified as to what constitutes domestic goods or provisions on local content. To observations 
made by Members during its last revie w, China stated that in practice the Chinese government 
applies non -discriminatory and equal treatment in government procurement to products 
manufactured by domestic -funded and foreign funded enterprises within the territory of China, and 
that it is common  for the government to purchase foreign products, but that no statistics in this 
respect were available. In addition, article 8 of MOF Order No. 18 of 11 August 2004 states that 
the suppliers participating in bids to supply goods or services must be domest ic suppliers who 
supply domestic goods or services. Domestic -sourcing legal requirements would have to be 
modified for procurement above GPA thresholds for China to join the GPA Agreement.  
Questions:   
1) Could you please inform whether China will exclude buy -domestic provision from the 
Government Procurement Law in the framework of accession to the GPA?  
2) Could you also explain how existing practice of priority setting corresponds to principles 
and rules of the GPA?  
Reply: China's  joining to the GPA doesnt neces sarily lead to the abolishment of the buy -
domestic provision in the Government Procurement Law . To abolish this provision, it 
requires the Parties involved to confirm based on negotiation that this provision doesnt 
apply to GPA Parties.  
Reply: Currently C hina is not a participant of the GPA, thus with no obligation to perform 
the GPA, however, when carrying out government procurement projects, China will treat WT/TPR/M/3 42/Add.1  
 
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  products manufactured within the country by either foreign funded -enterprises or 
Chinese -funded e nterprises equally.  
Paragraph 3.188 , page 99  
Despite the references in the Law to "buy -domestic", the Implementing Regulations of the 
Government Procurement Law do not make a distinction between foreign and domestic suppliers. 
Additionally, foreign suppli ers may participate in tenders and invitations to bid concerning goods 
and services if other laws and administrative regulations so prescribe. Imports used for 
procurement purposes continue to require approval from the Ministry of Finance, or its 
correspon ding departments at the local level. Importation is governed by the Administrative 
Measures for Government Procurement of Imported Products, which set out the conditions for 
government procurement of imported products. There are no statistics related to th e percentage of 
procured imported goods and services in total procurement.  
Question:  Could  you please provide further clarifications to the following sentence of the 
paragraph  3.188.: Imports used for procurement purposes continue to require approval from the 
Ministry of Finance, or its corresponding departments at the local level. How does this scheme 
work?   
Reply: When carrying out government procurement projects, China will treat products 
manufactured within the country by either foreign funded -enterpris es or Chinese -funded 
enterprises equally. When the products which the purchaser requires cannot be acquired 
within China or cannot be acquired under reasonable commercial terms within China and 
imported products need to be purchased as otherwise specified by laws and regulations, 
the government procurement shall be performed according to laws upon approval from 
financial institutions of the government.  
Paragraph s 3.189, 3.192, 3.193 , page s 99-101 
Questions:   
1) Could you please explain the difference between competitive negotiations and 
competitive consultations in the context of government procurement procedures?  
2) How do these procurement methods correspond to anticorruption measures?  
Reply  to questions 1 and 2: The procedures of competitive negotiations are s imilar to 
those of competitive consultations. In competitive negotiations, the deal is closed at the 
lowest price. In competitive consultations, comprehensive score is made on the basis of 
consultation. The objective of anti -corruption is realized through measures such as 
competitive procedures, disclosure of information, and establishment of remedy 
mechanisms.  
Paragraph 3.199 , page  102 
Procuring  entities  must announce  government  procurement  and bidding  information  in media  
designated  by the Ministry  of Finance  in "a timely , comprehensive  and standard  manner " to ensure  
transparency  and fair competition . The Circular of the Ministry of Finance on Making Efforts to 
Accomplish the Work of Government Procurement Information Disclosure (Cai Ku [2015] No. 135) 
sets out the scope, contents and requirements for the announcement. The result of the bid must 
also be announced by the purchaser or procurement agency within two working days after 
determining the result of the bid. A notice of award of bid or deal closing must be issued.  
Questions:   
1) Could you please clarify in what official media the government procurement and bidding 
information should be published?  
2) What kind of information is published?  WT/TPR/M/3 42/Add.1  
 
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  3) Could you please inform whether China plans to develop unified infor mation system for 
government procurement?  
Reply  to questions 1 to 3: Related information is collectively publicized on the website of 
Chinese Government Procurement ( www.ccgp.gov.cn ) and other media. The information 
on the entire process of government procurement project shall be disclosed.  
Paragraph 3.201 , page  102 
To improve  efficiency  in government  procurement , China  promotes  the use of information  
technology  and the gradual  adoption  of e-procurement , as of procure ment. The authorities have 
noted that China is also promoting the standardization of government procurement, as well as 
stepping up efforts to exercise supervision and inspection, so as to reduce the risk of collusion in 
the process of government procureme nt. 
Question: Do  you have plans to transform existing procurement methods into electronic format?  
Reply: In 2013, the Ministry of Finance of the People's Republic of China publicized the 
Overall Planning for the Establish ment of the National Government Procurement 
Management Trading System  and the  Basic Data Specification  on Government 
Procurement Business,  which can be looked up on the website of Chinese Government 
Procurement ( www.ccgp.gov.cn ).  
Paragraph 3.203 , page 102 
China  has not signed  any bilateral  or regional  agreements  on market  access  for government  
procurement  to date. 
Question:  Could you please inform whether China plans to include market access section for 
government procurement in future bilateral and r egional agreement?  
Reply: China is engaging in the negotiation for signing the GPA. Whether to engage in 
bilateral negotiation on market access section for government procurement will be 
dependent on whether both parties have such intents.  
4.1 Agriculture  
4.1.3.1 Border measures  
4.1.3.1.1 Measures affecting imports  
Paragraph 4.9, page 117  
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, sugar, and chemical fertilizers) are also 
subject to state trading. In these cases, part of the quota is allocated to state -trading enterprises 
and another part to other enterprises. Historically, the fill rate of TRQs has been low; however, this 
changed in 2013 and 2014 for products such as sugar, wool and cotton (Table 4.2).  
Questions  
1) Could China provide the reason for maintaining STEs for import under certain TRQs, if 
quota volumes are allocated among importers other than STEs and companies with 
trading rights (quota -holder s)? 
2) Could China describe the process of interaction between STEs, which are authorized for 
import under TRQs, and quota -holders, who receive allocated TRQ volumes?  
Reply  to questions 1) and 2): According to the commitment China made to enter WTO, 
wheat,  corn, and rice shall be subject to state -run trade quotas or non -state -run trade 
quotas. Therefore, both STEs and non -STEs may apply for import TRQs. All TRQs 
certificates of each year will be issued to various companies on January 1 of that year 
and they  would arrange their own imports based on situation of the market. Import 
TRQs cannot be transferred between companies. A company can only use its own TRQs WT/TPR/M/3 42/Add.1  
 
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  and its imported goods can only be processed and traded by itself, no interaction 
mentioned in the q uestion ever occurred.  
Table 4.1 Principal indicators for agriculture, livestock, forestry and fishing, 2011 -15, 
Page 115  
Question : Could  you please elaborate on the reason for decrease in exports of dried fruits, 
vegetables and feeds registered in 2015?  
Reply: The decrease in exports of dried fruits, vegetables, and feeds is determined by 
factors of domestic and international markets such as yield, supply, consumer needs, 
and price level. As to whether the export will decrease or not, the market -oriented 
decisions are made by the companies themselves.   
Paragraph 4.11, page 118  
In 2015, the number of agricultural products subject to automatic import licences increased 
slightly as the requirement was imposed on seven additional products (sugar). Thus, in 201 5 
licensing requirements applied to 83 (76 in 2013) agricultural products (WTO definition), out of a 
total of 396 (442 in 2013) products subject to automatic import licensing (17.2% of the total). The 
main products concerned were: meat, dairy products, oil seeds, fats and oils, and tobacco. All 
agricultural products were subject to non -automatic import licensing. As of 1 September 2015 
automatic import licences were also applied to four additional agricultural products (i.e. barley, 
sorghum, cassava and maiz e for brewing), equivalent to 8 tariff lines at the HS 8 -digit level.  
Questions:   
1) Please specify the purpose to apply automatic import licensing for meat, dairy products, 
oilseeds, fats and oils, and tobacco?  
2) Please indicate why barley, sorghum, cassava a nd maize were added to the list of 
agricultural products subject to automatic import licenses?   
3) Please clarify why non -automatic import licensing applies to all agricultural products? 
Could China describe the process of issuing such licenses or the documen t number of 
corresponding WTO notification?  
Reply  to questions 1 to 3: The purpose to apply automatic import licensing for some 
agricultural products is to strengthen inspection on related imported goods, lower 
business risk of companies, stabilize the mar ket, and reduce blind and out -of-order 
operations. Catalogue of agricultural products subject to automatic import licensing will 
be timely publicized on the official website of the Ministry of Commerce. China does not 
apply non -automatic import licensing t o any agricultural product.  
Table A2.1 Main notifications under WTO Agreements (1 January 2014 -1 March 2016, 
(or last notification if applicable), page 152  
Questions:  
1) According to the mentioned table the last notification under  Articles 1.4(a) and 8.2(b)  of 
Agreement on Import Licensing Procedures was made in 2002.  Could China please 
confirm that there were not any changes to rules and measures on import licensing  and 
import quotas to notify since 2002?  
2) According to the Secretariat Report, there were som e changes in the list of goods subject 
to export and import licensing for the previous years but the last notification mentioned 
in the table was published in 2005. Please indicate whether China intends to supplement 
its notifications under articles 1.4 (a ) and 8.2 (b)?  
Reply: There is no significant change to management measures and legal frameworks on 
import licensing in recent years. The list of goods subject to export and import licensing WT/TPR/M/3 42/Add.1  
 
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  is changing year by year and China has notified such changes in t he notification of 
Quantitative Restrictions. The latest notification was made in 2014. The Russian 
Federation can check the information of China in the quantative restriction database of 
WTO member site.  
WT/TPR/G/342  
2.3.6 Consolidating and strengthening  the foundation for agriculture  
Paragraph 2.32, pages 9 -10 
Efforts were made to … reform and improve the policy on agricultural support, including 
integrating the subsidy to purchase agricultural machinery and tools, the subsidy to promote the 
use of super ior strains and seeds and the direct subsidy to farmers into agriculture support and 
protection subsidy, and adjusting the policy goal into mainly supporting the protection of farmland 
fertility …. 
Question:  Could China specify the purpose and substance of  protection subsidy? What was the 
reason for integrating protection subsidy with all other mentioned agricultural subsidies?   
Reply: Since 2004, Chinese government has introduced three subsidies including the 
subsidy to promote the use of superior strains and seeds, the direct subsidy to farmers 
and comprehensive subsidies for agriculture inputs, all of which have played an active 
role in boosting grain production capacity and revenue of farmers and pushing forward 
development of agriculture and rural areas . However, with profound changes in the 
trend of the development of agriculture and rural areas, the implementation of these 
three subsidies has been increasingly met with serious problems, thus requiring urgent 
adjustment and improvement. Main problems in clude that farmers are gradually losing 
awareness on the subsidy policy, the stimulation of the subsidy policy on the enthiusiam 
of grain -growing is significantly decreasing, the directivity and accuracy of the policy 
are weakening, and its marginal effect  is gradually decreasing. In order to effectively 
address these serious problem s in the implementation of the three subsidies, these 
subsidies have been integrated into the agriculture support and protection subsidy on a 
nationwide scale in 2016 and the pu rpose of the policy has been adjusted into mainly 
supporting the protection of farmland fertility and raising directivity, accuracy, and 
effectiveness of the subsidy policy. With realizing green ecosystem as its guidance, the 
agriculture support and protec tion subsidy encourages the use of multiple measures and 
innovation of methods and approaches to improve comprehensive usage of crop straw, 
guide farmers to combine measures such as  straw manuring, soil preparation of deep -
loosening, reduction in the use o f chemical fertilizers and  pesticides, and the use of 
organic fertilizers, effectively strengthen protection of the quality of cultivated land, and 
voluntarily increase cultivated land fertility.  
3.4.2 Safeguarding the multilateral trading system with con crete actions  
Paragraph 3.54, page 24  
China has been continuously pushing forward its accession negotiation to the Government 
Procurement Agreement (GPA) . In December 2014, China submitted its 6th offer and conducted 
indepth  consultations with the GPA part ies. China will endeavour to achieve an earlier accession to  
the GPA.  
Question:  Please confirm whether the information in the second sentence of this paragraph is fully 
exact, according to our information, China submitted its 5th revised offer.  
Reply: In December 2014, China submitted the modificaiton of its 5th offer for accession 
to the GPA, which is also its 6th offer.  WT/TPR/M/3 42/Add.1  
 
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  40  RUSSIAN FEDERATION  (FOLLOW -UP) 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Paragraph 3.121, page 80  
In 2015, China subm itted a notification to the Committee on Subsidies and Countervailing 
Measures regarding its support programmes maintained at the Central Level covering the 
2009-14 period. The notification contains 86 programmes, of which 30 had not been notified to the 
WTO previously (Table 3.12).  
Question:  
The above -mentioned new and full notification of the support programmes maintained in China at 
the Central Level covering the 2009 -14 period includes programmes which might be aimed at 
automotive industry support. In this context, please specify the following : 
a) Please provide the detailed information about the support measures for automotive industry 
that are applied in China.  
Reply: China provides tax reduction or exemption for vehicle purchase and vehicle and 
vessel o n some types of cars.Details are as follows:  
For purchasing passenger vehicles with displacement of 1.6 liters and below 
between 20 January and 31 December 2009, a reduced vehicle purchase tax rate 
of 5% was levied; for purchasing the above vehicles betwee n 1 January and 
31 December 2010, a reduced tax rate of 7.5% applied; for purchasing the above 
vehicles between 1 October 2015 and 31 December 2016, a reduced tax rate of 5% 
will apply.  
The vehicle purchase tax was exempted for the public buses and trolley  buses 
purchased by urban public transportation enterprises between 1 January 2012 and 
31 December 2015.  
The vehicle purchase tax is exempted for the new energy automobiles purchased 
between 1 September 2014 and 31 December 2017.  
The vehicle and vessel tax  is reduced by half for energy -saving vehicles and 
vessels, and exempted for new -energy vehicles and vessels.  
b) Please indicate, what subsidies are provided to the Chinese car manufacturers and on what 
terms.  
Reply: China did not provide subsidies to Chinese  car manufacturers.  
c) Are the car manufacturers with high level of localization of production on the Chinese territory 
provided with additional financial support?  
Reply: The car manufacturers with high level of localization of production on the Chinese 
territory are not provided with additional financial support.  
d) Please elaborate on the support schemes for export of vehicles which are applied in China. 
Thereby please indicate, what are the terms of their application?  
Reply: China did not take measures to support the export of vehicles.  WT/TPR/M/3 42/Add.1  
 
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  41  SINGAPORE  
WT/TPR/S/342  
II TRADE policy regime: Framework and objectives  
Trade policy formulation and objectives  
Page 35 , paragraph 2.13  
1. We note that China is exploring, inter alia, the establishment of a new foreign invest ment 
regulatory framework, based on granting pre -establishment national treatment. When does China 
expect this new foreign investment regulatory framework to come into force?  
Reply: China will amend the Law of the People's Republic of China on Sino -Foreig n 
Equity Joint Ventures , the Law of the People's Republic of China on Chinese -Foreign 
Contractual Joint Ventures , and the Law of the People's Republic of China on Foreign -
Capital Enterprises , and develop new basic laws and regulations on foreign investment , 
in which the contents on regulating and guiding foreign investors and their investing 
behaviours will be incorporated. Where the general contents, such as the organization 
form and operations of foreign -capital enterprises, can be regulated by current la ws and 
regulations applicable to all kinds of market players, the current laws and regulations 
can be applied uniformly on both domestic and foreign investments. A new regulatory 
framework is under research now.  
Regulatory framework and market access  
Page  40, paragraph 2.30  
2. Are the market access and foreign investment negative lists mentioned in paragraph 2.30 part 
of the new foreign investment regulatory framework mentioned in paragraph 2.13? Can China 
provide more details on how these two lists would be "gradually implemented"; and when these 
two lists are expected to be fully implemented?  
Reply: The market access negative lists not only provide unified regulatory measures for 
both domestic and foreign investors but also the uniform requirements for m arket 
access administration for all kinds of market players. The negative list for foreign 
investment is applicable to the overseas investors only, and it provides special 
administration measures for the access of foreign investors. For the foreign investo rs, 
we will gradually exercise the foreign investment management system of pre -
establishment national treatment plus negative list.  
Examination and Approval Procedures  
Page 41 , paragraph 2.34  
3. We note that foreign nvestment in the transportation sector requires pre -approval from the 
Government. Does this pre -approval requirement apply to maritime transport? If so, we would like 
to seek clarification on (i) whether the pre -approval is required only for activities within Chinese 
waters; and (ii) relevant p rocedures to obtain pre -approval for foreign investment in the maritime 
transport sector.  
Reply: All foreign -funded international maritime transportation and the corresponding 
auxiliary businesses shall be approved by the Chinese authorities in charge of 
transportation, and this has been specified distinctly in Article 28 and 29 in the 
Regulations of the People's Republic of China on International Maritime Transportation 
(hereinafter referred to as "Regulations on International Maritime Transportation"). T he 
specific regulations of approving procedures for all foreign -funded international 
maritime transportation and the corresponding auxiliary business are specified distinctly 
in Article 39, 40, 41, 42 and 45 of Detailed Rules for the Implementation of the 
Regulations of the People's Republic of China on International Maritime Transportation 
(hereinafter referred to as "Detailed Rules for the Implementation").  WT/TPR/M/3 42/Add.1  
 
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  Page 41 , Table 2.1  
4. We would like to seek clarification if there are any shareholding requiremen ts for foreign direct 
investments under the restricted category. If so, what are these shareholding requirements?  
Reply: According to Catalogue for the Guidance of Industries for Foreign Investment 
(2015 Revision), there are shareholding requirements for a few foreign direct 
investments under the restricted category, such as edible oil and fat, processing and 
production of bio -liquid fuels (e.g., ethanol fuel and biodiesel), printing of publications, 
construction and operation of gas, heat, and water suppl y and drainage network for a 
city where the population is more than 500,000, railway passenger transport companies, 
basic telecom business, securities companies, securities investment fund management 
companies, futures companies, and radio and television p rograms.  
Page 42 , paragraph 2.39  
5. Does China provide tax incentives to the shipping sector?  
Reply: we currently collect zero stamp tax from all shipping receipts for expresses, 
baggage, and parcels transported by water.  
6. We would be grateful for deta ils on procedures required to establish international shipping 
enterprises in Free Trade Zones (FTZs).  
Reply: The approval procedure for establishing international shipping enterprises in Free 
Trade Zones  
For the foreign -funded international maritime tran sportation and the corresponding 
auxiliary business, there are special requirements in the Announcement of the Ministry 
of Transport on Several Policies for Pilot Programs of Maritime Transportation in 
National Pilot Free Trade Zones (Ministry of Transport  No. 24 [2015]):  
(1) As approved by the transportation department of the State Council, foreign 
investors may establish Sino -foreign equity joint ventures and Sino -foreign 
contractual joint ventures, in which the ratios of shares are not restricted, so 
as to develop international maritime transport business through the ports in 
China. For example, it is allowed to establish foreign -capital enterprises in 
Shanghai FTZ and to establish Hong Kong or Macao owned enterprises in 
Guangdong FTZ. The corresponding r equirements and procedures shall follow 
the Regulations on International Maritime Transportation  and the Detailed 
Rules for the Implementation of the Regulations on International Maritime 
Transportation . 
(2) As approved by the transportation department of the State Council, the Sino -
foreign equity joint ventures and Sino -foreign contractual joint ventures 
established in the FTZs may engage in the public international shipping agency 
business, and the ratios of shares for the foreign investment may be up to 
51%; the foreign -capital enterprises established in the FTZs may develop 
international maritime cargo loading and unloading business and international 
maritime container yard business. The corresponding requirements and 
procedures shall follow the Regulati ons on International Maritime 
Transportation  and the Detailed Rules for the Implementation of the 
Regulations on International Maritime Transportation . 
(3) As approved by the transportation departments of the provinces where the 
FTZs are located, the forei gn-capital enterprises established in the FTZs may 
develop international shipping management business. The transportation 
departments of the provinces where the FTZs are located shall handle the 
approval procedures in accordance with Article s 9 and 10 of t he Regulations 
on International Maritime Transportation  and Article 8 of the Detailed Rules 
for the Implementation of the Regulations on International Maritime WT/TPR/M/3 42/Add.1  
 
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  Transportation , and report the approval results to the transportation 
department of the State Co uncil for filing.  
(4) For the Sino -foreign equity and contractual joint shipping enterprises in FTZs, 
the board chairman and general managers are determined by the two parties 
through consultation.  
(5) Where there are no provisions in the Announcement for  the establishment of 
foreign -invested enterprises in FTZs to develop international shipping 
business, the establishment of Sino -foreign equity joint ventures in FTZs and 
Sino-foreign contractual joint ventures in FTZs to develop public international 
shipp ing agency business, or the establishment of the foreign -capital 
enterprises to develop international shipping management business, 
international maritime cargo loading and unloading business and international 
maritime container yard business, the Law of t he People's Republic of China on 
Sino-Foreign Equity Joint Ventures  and the Law of the People's Republic of 
China on Sino -Foreign Contractual Joint Ventures  and the Law of the People's 
Republic of China on Foreign Capital Enterprises  will apply.  
Standards and technical regulations  
Pages 62 -63, paragraph 3.60  
7. We would appreciate clarification on which is/are the relevant regulatory authority/authorities 
regulating the sale of medical devices and cosmetic products in China.  
Reply: According to the Regula tions on the Supervision and Administration of Medical 
Devices , the food and drug supervision and administration departments are responsible 
for supervision and administration of medical devices. Department of Drug and 
Cosmetics Supervision under China Foo d and Drug Administration is responsible for 
supervising and inspecting cosmetics production and operation, and organizing the 
adverse reaction monitoring, supervision and sampling inspection and safety risk 
monitoring of cosmetics after entering the marke t. China has no administrative license 
of cosmetics business, so cosmetics operators are required to establish a delivered 
goods inspection record system and a certificate and invoice system. The delivered 
goods records shall be real, complete and traceabl e. 
8. What are the relevant mandatory technical regulations, standards and conformity assessment 
procedures applicable to imported medical devices and cosmetic products prior to marketing 
approval? Are all these relevant measures published on relevant regu latory authority's/authorities' 
websites?  
Reply: China has not set up administrative licenses for the business of cosmetic 
products.  
9. We would like to enquire if there is an ongoing review to simplify China's cosmetic product 
regime. If so, what are the  expected revisions?  
Reply: The authorities will revise cosmetic product system in accordance with the level 
of scientific and technological development and the needs of industrial development.  
Standards and technical regulations  
Page 64 , paragraph 3.67  
10. In the event that there are discrepancies between local and national technical regulations, are 
traders required to comply with both local and national technical regulations and therefore have to 
undergo multiple testing and certification?  
Reply: At pr esent, China is integrating and simplifying mandatory standards. Mandatory 
national standards, industry standards and local standards are integrated into 
mandatory national standards to achieve "one market, one base line and one standard".  WT/TPR/M/3 42/Add.1  
 
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  Product certific ation  
Page 66 , paragraph 3.75  
11. Are foreign laboratories based in China currently designated to undertake testing for China's 
Compulsory Certificate (CCC)? If not, does China consider to designate foreign laboratories based 
in China to do so?  
Reply: La boratories for foreign -invested and domestic -funded laboratories within the 
territory of China can apply to be laboratories designated by CCC.  
12. Are there currently any foreign laboratories based outside of China that are recognised to 
perform testing fo r the CCC – for instance, under a Mutual Recognition Agreement?  
Reply: There are no such arrangements.  
Legislative and institutional framework  
Page 84 , paragraph 3.130  
13. It is stated that "the Anti -Monopoly Law [AML] does not take precedence over other 
competition -related legislation". Are there any other sectors, other than agriculture, which are not 
covered by the AML? Which law or regulation will prevail in the case of conflict? How does China 
ensure alignment and consistency in legislation and enforc ement given these a number of 
competition -related legislation?  
Reply: According to Article 2 of the Anti -Monopoly Law, the law is applicable to the 
monopolistic behaviours and those excluding or restricting market competitions in 
China. At the same time, Article s 55 and 56 of the law respectively specify that the law 
is not applicable to the behaviours in exercising intellectual property rights, and the 
alliance or cooperation behaviours of agricultural producers and rural economic 
organizations during the  production, processing, sales, transportation and storage of 
agricultural products. This shows that the law is applicable to other monopolistic 
behaviours except the above two kinds.  
During legislation and law enforcement, China's legislation and law enfo rcement 
departments make great efforts to maintain the consistency and continuity during anti -
monopoly legislation and law enforcement. As a measure to assure the consistency of 
three anti -monopoly law enforcement agencies during enforcement, the Anti -Mono poly 
Committee of the State Council formulated the Guidelines on the Definition of Relevant 
Market  in 2009, and now it is studying and formulating a series of guidelines, such as 
the Guidelines on the Prohibition of the Abuse of Intellectual Property Right s to 
Eliminate or Restrict Competition . 
Overseas Patent Applications  
Page 106 , paragraph 3.216  
14. We note that international applications under the Patent Cooperation Treaty (PCT) submitted 
by Chinese residents have been increasing rapidly from 22,924 in 2013 to 30,548 in 2015. Does 
China provide any forms of financial subsidies, at both the national and local municipal levels, to 
encourage international PCT filings? If so, what are the criteria for applying for such subsidies?  
Reply: At present, we are aw are of no financial subsidies to encourage international PCT 
filings at the national or provincial level.  
Hospital and medical services  
Page 138 , paragraph 4.86  
15. On the movement of healthcare professionals, we note China's General Agreement on Trade 
in Services (GATS) commitments relate to the applied regulatory regime regarding market access 
and national treatment. They contain three limitations, including that "the majority of doctors and 
medical personnel of the joint venture hospitals and clinics mus t be of Chinese nationality". We WT/TPR/M/3 42/Add.1  
 
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  would like to seek clarifications on the definition of "majority". Specifically, does this entail 
meeting a minimum threshold? If so, what is this minimum threshold?  
Reply: China's GATS commitments clearly specify that, wh en medical and dental services 
are provided, the majority of doctors and medical personnel of the joint venture 
hospitals and clinics must be of Chinese nationality. The "majority" and "minimum 
critical value" have not been quantitatively defined. In any c ase, the definition should be 
consistent with WTO rules and China's WTO commitments.  
16. We would also like to seek clarifications on the definition of "medical personnel". Does it refer 
only to doctors or also nurses, pharmacists and the rest of the Allie d Health Professionals?  
Reply: About the definition of "medical personnel", your question has not expressly 
specified the legal and regulatory document. In our opinion, the definition of "medical 
personnel" should be interpreted in accordance with the actu al requirements of the 
applicable document.  
Appendix tables  
Page 147 , Table A1.2  
12. We note that China has plans to improve business environment, establish new system for 
cross-border electronic commerce, improve service trade system and simplify customs  clearance. 
We would be interested to have details on the planned new system for cross -border electronic 
commerce, and how China intends to improve its service trade system and simplify its customs 
clearance.  
Reply: In recent years, the cross -border electr onic commerce in China has developed 
rapidly and has formed some industrial clusters with a large transaction scale, and all 
aspects of the regulatory system are more science -based and standard -based and 
convenient.  
Page 160 , Table A2.4  
13. We note the add ition of "online publication services" as a prohibited industry in the Catalogue 
of Industries for the Guidance of Foreign Investment (2015 Revision). We understand that China's 
new Administrative Regulations for Online Publishing Services prohibit foreign  companies from 
providing online publishing services through either a foreign -capital company or a joint venture in 
China, but permit a foreign company to cooperate on a project -by-project basis with a Chinese 
company, subject to the initial approval of th e State Administration of Press, Publication, Radio, 
Film and Television (SAPPRFT). What is the eligibility criteria for such projects?  
Reply: According to Article 10 of the Provisions on the Administration of Online 
Publishing Services , "Sino -foreign equi ty joint ventures, Sino -foreign contractual joint 
ventures and foreign -owned enterprises are not allowed to provide network publishing 
services. When cooperating with any Sino -foreign equity joint venture, Sino -foreign 
contractual joint venture, foreign -owned enterprise or foreign organization or person in 
network publishing, the network publishing supplier shall submit it to the State 
Administration of Press, Publication, Radio, Film and Television for approval in 
advance."  
According to Article 3, 8, 10, 2 4 etc. of the Provisions on the Administration of Online 
Publishing Services , "the basic requirements for project cooperation include, but not 
limited to: 1. The entity conducting cooperation on network publishing service projects 
is the legitimate network  publishing supplier in China; 2. The servers and storage 
devices used for network publishing service cooperation projects are controlled by the 
legitimate network publishing service suppliers in China; 3. The management right to 
upload and delete contents  of the network publishing service cooperation project 
belongs to the legal network publishing service suppliers in China; 4. The network 
publishing service project cooperation shall not violate the laws and regulations of 
China; 5. The network publishing service project cooperation must be approved by the 
State Administration of Press, Publication, Radio, Film and Television.  WT/TPR/M/3 42/Add.1  
 
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  42  SWITZERLAND  
WT/TPR/S/342  
1 ECONOMIC ENVIRONMENT   
1.2.3 Monetary and exchange rate policy   
1.2.3.2 Exchange rate policy   
In paragrap h 1.33 states that the IMF staff considered that a more flexible, market -determined 
exchange rate is needed to allow the market to play a more decisive role in the economy. In 
addition, they re commend a further widening of the fluctuation band and changes to how the 
central parity is set. Against this background, since August 2015, the PBOC reformed the way in 
which the central parity of the RMB against the US$ is set. Subsequently, the (onshore / CNY) 
exchange rate regime has become more market -determined.  However, market confidence could be 
further increased by improving tran sparency in determining the central parity rate.  
Are there any plans that the PBOC will make the determination of the central parity rate more 
transparent to the public?  
Reply: Since 2015, the People's Bank of China (PBOC)  has further strengthened the 
market supply and demand -based mechanism that adjusts exchange rates in reference 
to a basket of currencies . On 11 August 2015, market makers were required to refer to 
the closing rate on  the previous day in the qu otation of the central parity of RMB against 
US$, in order to reflect changes in market supply and d emand. On 11 December 2015, 
through releasing the RMB exchange rate index, it is stressed that efforts should be 
strengthened in the reference of a basket of currencies to maintain the basic stability of 
RMB exchange rate against a basket of currencies. The formation mechanism of the  
central parity of RMB  against US$ exchange rate has taken shape initially in the form of 
"closing ex change rate + changes in the exchange rate of a basket of currencies ", which 
are two factors determining the  central parity of RMB  against US$ exchange rate. The 
closing exchange rate refers to the closing RMB  against US$ exchange rate by 16:30  of 
previous  day in the inter -bank foreign exchange  market, refle cting demand and supply 
in the foreign exchange market ; The changes in the exchange rate of a basket of 
currencies refer to the required adjustment range on RMB/US$ bilateral exchange rate 
which is made to maintain the basic stability of RMB exchange rates against a basket of 
currencies in 24 hours. On the whole, it is highly  transparent to the public in identify ing 
the central parity of RMB  against US$.  
1.2.4 Balance of payments   
We welcome China 's effor ts described in paragraph  1.37 to further expand the RMB Qualified 
Foreign I nstitutional Investors (RQFII) pilot projects and to push the Qualified Domestic Individual 
Investors (QDIIs) system.  
Could China inform whether there is a timeline for the roll -out of the QDII 2 -programme or similar 
schemes that would facilitate the outflow of capital from China available to individ uals? 
Reply: The establishment of QDII 2 is conducive to the convertibility of RMB capital 
account, the autonomy of individual foreign  investment as well as the broadening  of 
foreign investment  channels. Currently, the People's Bank of China (PBOC)  is discussing 
with relevant  authorities on the overseas investment of domestic residents. It is under 
consideration to set up QDII2  pilot in the future, and i ndividuals who meet certain 
qualifications are permitted to invest abroad directly. But there is still no identified 
timetable for QDII2.  
Paragraph 1.38 of the report reads that "In the context of the current review, the authorities 
have s tressed the convenience of pushing forward the further convertibility of RMB capital account 
transactions. With respect to the management of cross -border capital flows, they stated that the 
focus should be shifted from administrative examination and approv al to further monito ring and WT/TPR/M/3 42/Add.1  
 
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  analysis and from the use of a positive list to the administration of a negative list. " In our view 
these are positive develo pments.  
Could China indicate which is the timeframe for the elimination of the remaining capital co ntrols 
that will eventually also lead to the disappearance of the deviation between the onshore and the 
offshore exchange rate?  
Reply: The trends of onshore and the offshore exchange rat e of RMB against US$ s are 
determined by demand and supply in the foreign exchange market and exchange rate 
movements of major intern ational currencies. However, it is normal that there are 
certain  gaps sometimes because  of the diff erences in  the supply and demand and 
expectations of the two markets. The third plenum of the 18th CPC Central Committee 
put forward to "facilitate the convertibility of RMB capital account ", On 5 May  2015,  
Several Opinions of the State Council on the Building of A New System of Open Economy  
put forward "to steadily improve the internatio nalization of RMB, expand the range, 
method and scale of RMB cross -border use, gradually make RMB convertible under 
capital account ". The 13th Five-Year Plan  put forward  to facilitate "two-way opening in 
finance, RMB convertibility under  capital a ccount, RMB included  into the SDR currency 
basket , and being  a freely  convertible and  usable curre ncy". Promoting the convertibility 
of RMB capital account is mainly aimed at optimizing the allocation of resources at home 
and abroad  and objectively narrow ing the gap between the two exchange rates.   
With the opening of Chinese inter -bank foreign exchange  market, there will be more 
foreign entities entering the market. Meanwhile, the People's Bank of China (PBOC)  is 
studying on the orderly part icipation of commercial banks in offsh ore currency market. 
All of these institutional arrangements will be conducive to gradually narrow ing the 
difference between domestic and foreign exchange rates and mak ing them more  
consistent.  
2 TRADE AND INVESTMENT REGIME   
2.1 Institutional and Legal Fr amework   
According to paragraph 2.6, draft laws and other draft regulations are published online for a 
30-day period for public comments, except when, as per decision of the State Council, laws and 
regulations need to be kept confidential in accordance wit h articles 37 and 67 of the Legisl ation 
Law.  
Could China please elaborate on the confidentiality requirements in articles 37 and 67 of the 
Legisl ation Law?  
Reply: China has always been attach ing great importance to enhancing the legislation 
transparency a nd public participation. The principle of openness was added in the 
general provisions of The Legi slation Law of the People's Republic of China  amended in 
March, 2015. Under the 37th article of The Legislation Law of the People's Republic of 
China,  the leg al case s listed in the agenda of the meeting of the Standing Committee, 
shall be published to the public for comments, including drafts and amendments after 
the meeting of the Standing Committee, excluding the legal cases decided not to be 
announce d after the Chairman's meeting. Under the 2nd paragraph of the 67th article in 
The Legislation Law of the People's Republic of China, the drafts of administrative 
regulations shall be published to the public for comments, excluding  the drafts decided 
not to be announce d by the State Council . 
3 TRADE POLICIES AND PRACTICES BY MEASURE   
3.1.3 Rules of origin  
In paragraph  3.9, it is stated that the legislation regulating non -preferential rules of origin has 
not unde rgone major changes since 2004.  
In light of today 's trade realities, does China see room for improving and / or streamlining non -
preferential rules of origin practices? If so, when and how does China envisage to do so?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Firstly, Chin a Customs will  actively study on and prepare to  revise the GACC 
Decree No. 122  according to the latest development and changes  in the field of 
international origin and the need of Chinese trade policy, but given that  the origin 
criteria revision involv es a number of  industrial pr oducts, the revision need s to be 
implemented on  basis  of adequate research and assessment , which is expected to be 
completed within 2 -3 years. Second ly, China Customs is actively coordinating with 
relevant departments to start up the revision of Regulations on the Origin of  Imported - 
Exported Goods. However, since  the revision involves  some regulations of the State 
Council, it is difficult to give an exact completion time of revision.  
3.1.4 Tariffs   
3.1.4.2 Bound tariffs   
According to the Secretariat 's report in paragraph 3.16 "the tariffs were bound a t ad valorem  
rates, applied tariffs on 42 tariff lines are non -ad valorem . The authorities state that the ad 
valorem  equivalents of the non -ad valorem rates are always equal to the bound tariff rate ". 
Could China indicate which mechanisms are in place to e nsure that the applied non -ad va lorem 
rates do not exceed the bound rates?  
How often is this done?  
How can Chinese authorities be sure that the ad valorem equivalent of the non -ad valorem rates 
are equal to the bound tariff rate for all of the imported goo ds? 
Reply  to above three questions: 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 t he 
ad valorem rates are recalculated regularly so as to guarantee the actual tax doesn 't 
surpass the ad valorem  rate China has promised. The conversions are carried out mainly 
at the ave rage price of imports in previous years provided by the customs.   
3.1.6 Import prohibitions, restrictions, and licensing   
Paragraph 3.22:  Import prohibitions, restrictions and non -automatic licensing are maintained in 
China to safeguard national security; public morality; human, animal and plant health; the 
environment and e xhaustible natural resources; to comply with China's obligations under 
international agreements; and for balance -of-payments reasons. (see Article 16 of the Foreign 
Trade Law ( http://www.gov .cn/flfg/2005 -06/27/content_9851.htm  (in Chinese only)); Central 
People's Government of China online information ( http://www.gov.cn/jrzg/2007 -
04/10/content577619.htm  (in Chinese)); and WTO document G/LIC/N/CHN/13 of 
22 January 2015) . 
Could China please ex plain the link between balance -of-payments and import regulations? Please, 
indicate the categories of agricultural goods affected by these measures.  
Reply: At present, no agricultural products have been affected by such measures.  
Paragraph 3.30:  In 2015, there were some 40 temporary prohibitions in place for sanitary 
reasons, which – according to information provided by the respective authorities - affected mainly 
animal products i mported from European countries. For the same reasons China has prohibited t he 
importation of some types of logs and timber originating in several European countries. (WTO 
document G/SPS/N/CHN/632, 29 November 2013.)  
Could China please explain the reasons for these decisions and indicate which indicators and 
param eters were used?  
Reply: China has banned imports of certain  kinds of logs and lumber from several 
European coun tries, mainly aiming to prevent the outbreak of ash dieback disease, 
which has spread in some Eur opean countries. According to the risk assessment, there is 
high risk for the introduction of ash dieback into China with imported logs. It is a very WT/TPR/M/3 42/Add.1  
 
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  dangerous forestry fungal disease which has outbroken in some European countries and 
regions, resulting in serious losses.  In order to protect the forest r esources and 
safeguard the ecological security in China, according to  the Law of the People's Republic 
of China on Quarantine Inspection of Animals and Plants Entering and Leaving the 
Country and its implementing regulations , Regulations on Plant Quarantine Inspection , 
Emergency Treatment Plan for Major Plant Epidemic Entering and Leaving the Country  
and other regulations, in 2013, the Nat ional Bureau of Quality Inspection and the State 
Forestry Administration jointly released China's A nnouncement on the Prevention of Ash 
Dieback Disease  (the 2013 No. 156 Joint Communique), as a result, it is prohibited to 
import logs and timbers from the countries and regions where ash dieback disease 
broke out  (Refer to the 2013 No. 156 Joint Communiquefor the specific list ) 
3.1.7 Anti -dumping, countervailing, and safeguard measures   
3.1.7.1 Anti -dumping measures   
According to paragraph 3.40, China 's investigating authorities do not currently examine if a duty 
lower than the margin of dumping is sufficient to eliminate the injury caused by  dumped i mports.  
Could China please elaborate on the reasons for this practice by the investigating author ities? How 
does China evaluate this practice in the light of art. 9.1 of the WTO Anti -Dumping Agreement?  
Reply: At present, China has not carried out  this practice. China holds  that, under the 
art. 9.1 of the  WTO Anti -Dumping Agreement , WTO supports this practice, but that is not 
a mandatory obligation of WTO members.  
3.2.2 Export taxes, charges, and levies   
Paragraph 3.100:  As of May 2015, interim dut ies were levied on 314 tariff lines at the HS 8 -digit 
level, compared to 320 in 2013, ranging from 0% to 35%, with the highest rates applying to 
products class ified under HS Chapter 25. The slight decline in the number of tariff lines subject to 
interim ex port d uties was a result of a reduction in the number of lines subject to duties of 
inorganic chemicals (HS Chapter 28) and fertilizers (HS Chapter 31). Since 2013, export duty rates 
on eight tariff lines r elated to mineral fuels, oil and waxes (Chapter 27 ) were lowered from 10% to 
3%; while the minimum rate levied on fertilizers was lowered from 25% to 5%. The 2015 Customs 
Tariff shows that in 2015 eight products were subject to specific interim export duties. However, 
according to the authorities these we re eliminated in 2014.  
The Secretariat 's report is highlighting a discrepancy between the information by the Chinese 
author ity and the 2015 Customs Tariff. Could China please clarify the divergence? And what are 
the reasons for maintaining these export dut ies?  
Reply: The adjustment of customs tariff in China is public and transparent. The 
information is available in the official website of the Ministry of Finance.  
3.2.4 Export support and promotion   
According to para graph s 3.108 and 4.13  in the Secretaria t's report, China applies VAT rebates 
on exports at rates ranging from 0% to 17%. Compared to trade neutral VAT refund systems in 
other countries, zero or partial refund of paid VAT is in effect similar to an export tax. As stated in 
the report, the Chines e authorities aim at discouraging the production and export of e nvironmental 
polluting products by this measure.  
How do the Chinese authorities ensure that the varying rebates don 't exacerbate price flu ctuations 
on international markets to the disadvantag e of importing countries?   
How do they prevent unjustified advantages to domestic downstream sectors?  
Reply: Since 1994, in accordance with the principle of "rebating equals levying ", China 
has esta blished and constantly improved the export tax rebate poli cy to manifest the 
principle of neutrality of VAT.  WT/TPR/M/3 42/Add.1  
 
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  3.3.2 Competition policy   
3.3.2.1 Legislative and institutional framework   
Paragraph 3.130  explains "The laws concerning competition policy include the Anti -Monopoly 
Law (AML), the Anti -Unfair Competition Law, the Rules on Acquisition of Domestic Enterprises, and 
the Price Law. " However, no regulation seems to encompass agreements between firms.  
How are cartels regulated in China?  
Reply: The chapter 2 of China 's Anti-monopoly Law  explicitly stipulates the d efinition of 
monopoly agreement practice and prohibits proprietor of competitive relations from 
reaching monopoly agreements on fixed price, limited output, segmented markets, joint 
boycott and restrictions on r esearch and development. SAIC (State Administ ration of 
Industry and Commerce) has rigid regulations about the practices mentioned above on 
the basis of Anti-monopoly Law. Among the registered 64 monopoly cases under 
investigation, 34 are related to monopoly agreement practice.  
Paragraph 3.134  states "The penalties for violation of the provisions consist in cease -and-desist 
orders and the confiscation of 1% -10% of the sales revenue of the previous year ". 
What is China 's experience in recent years? Are these penalties sufficient to have a preventive 
effect?  
Reply: Since the implementation of A nti-monopoly Law, SAIC has been intensif ying its ' 
efforts on anti -monopoly law enforcement. Till now, among the 64 registered monopoly 
cases, there are 32 closed cases and 5 suspended cases. For enterprises that we re found 
guilty, we have confiscated all their illegal gains and imposed a fine of 1% -10% of their 
annual sales income. All the notices of penalty decision are released on the website of 
SAIC, alerting all the e nterprises to observe the law.  
Paragraph 3.135 says that "Public enterprises committing any of the offense listed above will be 
issued cease -and-desist orders and imposed a fine of between RMB 50 '000 and RMB 200 '000." 
Nowadays, these fines would be equivalent to CHF 7 '260 and CHF 29 '000. The size of SOEs and 
their part in the Chinese economy are relatively significant.  
Does China consider these fines efficient in preventing SOEs to violate the law?   
Reply: All these fines play a positive role in alerting enterprises, including the state -
owned ente rprises, to observe the law.  
3.3.2.4 Mergers and acquisitions   
Paragraph 3.152  states that in cases where a concentration has or may have the effect of 
excluding or restricting competition, the State Council may decide not to prohibit it, if the business 
operators co ncerned can prove that the gains from concentration outweigh the negative impact on 
competition, or that the concentration is pursuant to the public interest.  
Could China please provide examples of concrete cases, where the State Council has appro ved 
mergers based on the above -mentioned requirements?  
Reply: As stipulated in China 's Anti-monopoly Law, the anti -monopoly authority under 
the State Council is in charge of the enforcement of anti -monopoly law. Till now, the 
Chinese Ministry of Commerce h as found no such cases which it decides not to prohibit if 
the bus iness operators can prove that the gains from concentration outweigh the 
negative impact on competition or that the concentration is pursuant to the public 
interest.  
3.3.3 National security  review of concentrations  
Paragraph 3.161  states that "Mergers and acquisitions of domestic enterprises by foreign 
investors are su bject to national security review in the following cases: defense -related activities, WT/TPR/M/3 42/Add.1  
 
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  which include the a cquisition of defens e or defense -affiliated enterprises, as well as the purchase 
of enterprises located near defense facilities; and the acquisition of, and gaining control over, 
enterprises related to national security engaged in the production of key agricultural products, 
energy and natural resources, as well as key infrastructure, transportation, and machinery 
manufacturing. "  
It seems that the notion of national security applies to several important economic sectors, which 
by some means could be perceived as a protectioni st measure by potential investors.  
How does China ensure that the national security review doesn 't become a barrier for investors in 
some economic domains?  
How is it prevented from becoming a significant administrative burden?  
Reply: The investigation on foreign investments that may affect national security is 
regarded as an international practice and is not contradicted with China 's strategies of 
opening up and r educing the limitation on market admittance of foreign investors. China 
has stipulated the ran ge of the investig ation on security of foreign investment in the 
laws and regulations concerned. Not all the foreign i nvestments in China are related to 
our national security, and only a limited number of foreign investors or enterprises shall 
be investiga ted, thus it will not cause an increased administrative bu rden. 
3.3.4 Price controls   
The report describes in paragraphs  3.166 & 3.167 that "China continues to apply price controls 
to commo dities and services deemed to have a direct impact on the national economy and 
people 's livelihoods, when necessary. Price controls take two forms: "government prices " or 
"government -guided - prices ". Government prices are fixed prices set by the authorities, while 
government -guided prices are prices set within a range. " 
Would China please explain whether government -guided prices wouldn 't be sufficient to control the 
price level of such commodities and services (the prices could evolve and adapt automatically 
through the market mechanism, instead of being constantly calcula ted and fixed by the 
authorities)?  
Could China please describe which criteria and methods the state relies on to fix price levels?  
What is the administrative burden for such a regular calculation?  
Reply: At present, the prices of over 97% commodities and  services in China are 
determined by the market. The scale of government pricing only covers a few 
commodities and services, mainly conce ntrating on key public utilities, public services, 
and network -oriented areas with natural monopoly. In recent years, t he purposes of 
narrowing the scale of government pricing or improving the flexibility of pricing are to 
adapt to the development of the market, to stimulate the vitality of the market, and to 
promote market competitions. According to Article 21 of the Price Law , the government 
guidance prices and government pricing should be made according to the s ocial average 
costs and the condition of market supply and demand of relating commodities or 
services, the requirements for national eco nomy and social developmen t and social 
affordability. Reasonable price differences between purcha sing and selling, wholesale 
and retail, among different regions and seasons should be carried out. As a result, there 
are circu mstances where different rates are applicable to different  users. For example, 
the electricity prices for residents and industrial uses are different.  
3.3.5 State trading and state -owned enterprises   
3.3.5.1 State trading   
Paragraph 3.173:  Imports subject to state trading administration comprise: grain (includin g 
wheat, maize, and rice), sugar, cotton, chemical fertilizers, tobacco, crude oil, and processed oil 
(Table 3.17). They can be imported (and exported) only by authorized enterprises, in accordance WT/TPR/M/3 42/Add.1  
 
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  with Article 11 of the Foreign Trade Law. Tobacco is the o nly state -traded product that can be 
traded solely by state -trading enterprises. Non -state trading enterprises that have obtained 
trading rights through registration may engage in the importation of part of the quota of products 
subject to tariff -rate quot as (grain, cotton, sugar, and certain chemical fertilizers), and of crude 
and processed oil. The NDRC (in the case of grains and cotton) and MOFCOM (for the other 
products) issue on a yearly basis the criteria for an e nterprise to acquire trading rights fo r these 
products, the volumes they can import and the allocation method. No information was provided on 
the quantities imported under state trading.  
The Secretariat 's report outlines that there was no information provided on the quantities imported 
under s tate trading. Could China please give some information about the products, the quantities 
and the period concerned? Can China guarantee that no negative effects occur to net importers?  
Reply: Besides the import TRQs for state trading, the STEs can also ac t as agents for the 
import for various types of other enterprises. It is therefore difficult to differentiate 
transactions conducted on their own and on behalf of other enterprises. Statistic of a 
single STE is its i nternal information and considered as bu siness secrets, therefore there 
is no relevant informat ion available.  
3.3.5.2 State -owned enterprises  
In paragraph  3.182  the report reads that "In 2015, new guidelines were issued to reform SOEs. 
The object ive is to improve the performance of state assets.  Both the guidelines, as well as the 
Recomme ndations for the Development of the 13th Five -year Plan, refer to the need to reform 
SOEs so as to make them more profit -oriented and call for a shift to mixed ownership, while 
keeping government control. The Rec ommendations mention the need to restructure SOEs and to 
guide state -owned assets towards industries linked to national security, and at the same time 
encourage the private sector to pa rticipate in sectors dominated by SOEs and to invest in SOEs. " 
Could Ch ina elaborate on the choice of mixed ownership instead of privatization and describe the 
challenges faced with the mixed ownership?  
Reply: In recent years, China has been  pushing forward the reform of SOE mixed 
ownership, and promoting the cross sharehold ing and mutual integration of national 
capital, collective capital, non -public capital and so on. Some state -owned enterprises 
have developed into mixed ownership e nterprises, and many state -owned enterprises 
are actively exploring the reform of mixed owne rship.   
In September 2015, the State Council released Opinions on the Development of Mixed 
Ownership of State -owned Enterprises  (Guo Fa [2015]  No. 54 ), which further defines 
the general r equirements, primary principles, main missions and supporting measure s of 
SOE mixed ownership. Industries such as electronics, oil, natural gases, railroad, civil 
aviation, telecommunication and military industry where state -owned enterprises 
dominate are key fields to promote and develop mixed ownership economy. All kinds of 
capitals including foreign capitals are encouraged to participate in the mixed ownership 
reform of state -owned enterprises. For the time being, China has been launching the 
pilot demonstration for developing mixed ownership in these fields. The first pi lot list for 
central enterpri ses has basically been formed, and different pilot implementing plans are 
under organization. Mea nwhile, different provinces are also conducting pilot work on 
local state -owned enterprises based on their practical situations.  
Does the state consider any effects on competition and the market such as distortions?  
Reply: China government attaches great importance to the fair and impartial 
participation of state -owned enterprises in the market competition. After more than 
three deca des of reform, the manag ement and operational mechanisms of Chinese state -
owned enterprises has undergone profound chan ges. In general, these mechanisms 
have been integrated with the market economy and become major players 
independently participating in ma rket competition, China has deepened the reform to 
introduce corporate and shareholding systems, accelerated to perfect the corporate WT/TPR/M/3 42/Add.1  
 
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  governance structure, and constantly intensified the market -oriented reform of the 
operational mechanism of state -owned en terprises.  
3.3.7 Intellectual property rights  
3.3.7.2.2 Trademarks  
According to paragraph 3.219  of the Secretariat 's report, the Trademark Law and Implementing 
regulations have been amended, inter alia relating to well -known trademarks and introducing the  
principle of good faith for the registration and use of trademarks. According to available 
information, decisions of the Chinese Trademark Office were particularly relevant regarding "serial 
pirates " bad faith registrations.   
Do Chinese authorities have m ore information regarding the impact of the reform on the protection 
of well -known trademarks and on bad faith registrations? Are there new developments regarding 
bad faith registrations in small numbers, i.e. in non -serial pirate form?  
Reply: According t o the regulations on well -known brands made by the new trademark 
law, it aims at preventing others from copying, imitating or translating these brands and 
avoiding market confusion acts or damage of the interests of the owners of these well -
known trad emark s. The main protective approaches include prohibited registration and 
use. Bad faith trademark registration is a global problem. China 's new  Trademark Law 
implemented in May 1, 2014 made some amendments on malicious trademark 
registration. As for the acts of bad faith registration and registering others ' trademarks, 
the prior rights holders can claim their rights through opposition procedures and require 
the trademark bureau not to allow the regi stration of disputed brands. The opponent 
holding his unregist ered trademark as being regi stered preemptively can file an 
opposition to the trademark bureau according to the article 15 and article 33 of the 
Trademark Law .  
3.3.7.4.3 Undisclosed information and trade secrets   
The Secretariat 's report states in paragra ph 3.241  that, in the absence of a specific law or 
regulations, u ndisclosed information and trade secrets are covered under a number of other laws 
and regulations.  
Could China please provide clarity on how its Food and Drug Administration ( "CFDA ") current ly 
administers the definition of "new chemical entity " which is a necessary prerequisite for providing 
regulatory data protection? Is it correct that regulatory data protection is basically granted to any 
chemical entity which is new on the Chinese market even if it has already been put on the market 
in another State? Could China provide more information regarding regulatory data protection 
granted to products of "biological nature " like antibodies, proteins etc.?  
Reply: According to the adjustment of the S tate Council on the definition of new 
medicine, the me dicine containing new chemical components refers to the new active 
ingredients that are not on sale in both domestic and overseas markets. Currently, the 
Food and Drug Administration is making research on whether or not a data protection 
system of Ch ina's biological products shall be established and how.  
According to available information, a new "Chemical drug registration category reform plan " 
entered into force on 1st December 2015 providing for a new categorization of drugs. This 
categorization di stinguishes between new drugs and generic drugs. The category of generic drugs 
seems to also cover products that are put on the Chinese market for the first time and whose 
original drug is listed or ma rketed o nly abroad. Implementing provisions do not seem to have 
entered into force yet.   
Could the Chinese authorities provide more information on the adoption of implementing 
provisions for the "Chemical drug registration category reform plan "? Will regulatory da ta 
protection be gran ted for the sub -categories of generic drugs which are new on the Chinese 
market when the original product is marketed or listed abroad?  WT/TPR/M/3 42/Add.1  
 
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  Reply: As to the chemical drug registration category, in March, 2016, the Food and Drug 
Admi nistrat ion released the Chemical Drug Registration Category Reform plan 
(Notice  No. 56 in 2016). In May 4 2016, the Food and Drug Administration released 
Requirements on Application Materials of New Chemical Drug Registration Category 
(Trial) (Notice No.  80 in 20 16). Since the date of its r elease, applicants shall declare and 
register their new chemical drug in accordance with the Requir ements.  
3.3.7.5.3 Judicial enforcement   
Welcoming the establishment of those specialised Courts, we would like to ask the Chinese  
authorities if they have any forecast with regards to their Caseload.  
Reply: The establishment of IP court is a critical move for strengthening our judicial 
protection on intellectual property rights and for carrying out the spirit of reform of 
justice p roposed by the Go vernment. Since the establishment of the IP courts, all the 
work has been orderly operated. With the i mplementation of China 's innovation -driven 
development strategy, there is growing need for the protection of intellectual property 
and th e cases related to intellectual pro perty rights increase quickly.  
4 Trade Policies by Sector   
4.1.3 Policy instruments   
4.1.3.1 Border measures   
4.1.3.1.1 Measures affecting imports   
Paragraph 4.9: 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, sugar, and chemical 
fertilizers) are also subject to state trading. In these cases, part of the quota is allocated to state -
trading enterprises and another part to other enterprises. Historically, the fill rate of TRQs has 
been low; however, this changed in 2013 and 2014 for products such as sugar, wool and cotton.  
The Table 4.2 in the Secretariat 's report shows low fill rates of TRQs (wheat, corn, rice). How does 
China explain these low fill rates and why this changed only for sugar, wool and cotton? Does 
China envisage any measure to improve the fill rates, particularly in view of the Bali decision on 
the TRQ fill rates?  
Reply: Since China 's accession to the WTO, th e pertinent authorities have made the 
alloc ation and reallocation of TRQ in accordance with the "Interim rules on the 
Administration of Tariff Rate Quota for Agricultural Products ". The amount of import is 
decided by the quota holders based on their o bservation and judgment about the 
market.  
As for wheat, since the Chinese consumers have their unique preferences and 
consuming habits, the demand for import wheat are mainly two specialties: high -gluten 
wheat for making breads and low -gluten wheat for making cakes. As for the wheat for 
making steamed bread or noodles, the demand is generally satisfied by domestic supply. 
The demand for import is limited, and is often stable in quant ity. Therefore, the 
enterprises will decide how much they would like to import.   
As for rice, the TRQ for rice is divided into two parts, the long -grain rice (or the indica 
rice) and the short -grain rice (or the japonica rice). The fill rates for long -grain rice is 
relatively high, since the long -grain rice produced in Southeast Asia  caters for the tastes 
of Chinese consumers and is compet itive in terms of price. The short -grain rice is mainly 
supplied by domestic production, which is su pplemented by the short grain rice from 
Southeast Asia. Rice produced in other regions does not cat er for the taste of Chinese 
consumers. The short -grain rice produced by Japan and Korea is similar to the rice 
produced in China, however, the rice is exported at much higher prices and therefore, 
the volume of importation is very limited.  WT/TPR/M/3 42/Add.1  
 
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  As for corn, in  recent years, since enterprises are concerned that certain new variety of 
corn doesn 't suit for the demand by the Chinese market, they tend to choose the 
suppliers with no such new vari eties, and this caused the volatility in the fill rates.  
We believe th at the low fill rates reflected the market conditions, and therefore, there is 
no need for the Chinese government to take measures to improve the fill rates.  
Paragraph 4.11:  In 2015, the number of agricultural products subject to automatic import 
licences  increased slightly as the requirement was imposed on seven additional products (sugar). 
Thus, in 2015 licensing requirements applied to 83 (76 in 2013) agricultural products (WTO 
definition), out of a total of 396 (442 in 2013) products subject to automat ic import licensing 
(17.2% of the total). The main products concerned were: meat, dairy products, oilseeds, fats and 
oils, and tobacco. All agricultural products were subject to non -automatic import licensing. As of 
1 September 2015 automatic import licenc es were also applied to four additional agricultural 
products (i.e. barley, sorghum, cassava and maize for brewing), equivalent to 8 tariff lines at the 
HS 8-digit level.  
How does China explain the report 's wording that on the one hand all agricultural pro ducts were 
subject to non -automatic import licensing and on the other hand, automatic import licences were 
also a pplied to four additional agricultural products? Which agricultural goods are allocated by non -
automatic import licensing and through which cri teria?  
Reply: In order to monitor the import, China has carried out automatic import licensing 
on some a gricultural products, and the specific commodities have been notified. There is 
no non -automatic import licensing for agricultural products. This senten ce in the 
Secretariat Report is wrong. At the request of China,  the Secretariat has already deleted 
it. Please refer to the revised version of Secretariat Report.  
4.1.3.1.2 Measures affecting exports   
According to paragraph 4.14 in the Secretariat 's report , cotton, rice and maize are subject to 
export quotas, which are managed by the NDRC and allocated only to state trading enterprises. 
Wheat is also subject to export quotas.  
How do the Chinese authorities ensure that export quotas and state trading don 't exacerbate price 
fluctuations on international markets to the disadvantage of importing countries?  
Reply: In general case, China performs management on the export quotas of agricultural 
products based on commercial consideration. As a responsible power, wh ile 
implementing relating policies, China would consider the influence upon the 
international market so as to avoid disadvanta ges to the import countries.   
4.1.3.2 Internal measures   
4.1.3.2.2 Price controls and marketing   
Paragraph 4.24:  A minimum procure ment price scheme remains in place for rice and wheat in 
major pr oducing areas. Minimum prices for grains (i.e. rice and wheat) continue to be set by the 
NDRC on a yearly basis, in consultation with the Ministry of Agriculture and other gover nmental 
institutions. The minimum price for rice and wheat increased during 2012 -2014, due to an increase 
in production costs, but remained unchanged in 2015. The state -owned company Sinograin, 
purchases grains when the market price falls below the established support l evel. The minimum 
procurement price scheme for grains is linked to the volume of China's grain reserves; the 
minimum -price system is in place to e nsure a stable supply of grains. Grain reserves of maize, 
rice, soya beans and wheat are maintained by central  and local a uthorities to ensure food security. 
According to the authorities, the purchase of the reserves is carried out by appointed enterprises 
at market prices or at the minimum procurement prices set by the Government.  
Could China please describe the mechanism of the purchases by Sinograin and outline a ccording to 
what criteria the quantities are sold again? What effects on the world market price are caused by 
this practice? What kind of measures does China take to avoid negative effects on net importe rs, 
partic ularly on developing countries?  WT/TPR/M/3 42/Add.1  
 
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  Reply: SinoGrain is not the accurate English translation of the corporation, who enjoys 
an off icial name of China Grain Reserve Corporation. China Grain Reserve Corporation is 
a key large state -owned enterprise, wh ich involves the national security and lifelines of 
the national economy under the State Council 's approval. Entrusted by the State Council, 
China Grain Reserve Corporation is specifically responsible for the operation and 
management of the State Grain R eserve (including the State Oil Reserve, hereinafter 
inclusive), and at the same time the corporation pe rforms regulation and control tasks 
entrusted by the state such as purchasing, selling, regulating and stocking food and oil. 
Under n ational macro -control  and supervision and administration, the corporation 
operates ind ependently and takes full responsibility for its own profits and losses. As the 
prim ary market player, without any doubt, China Grain Reserve Corporation will exert an 
influence on the market  while purchasing and releasing relating food products. This 
influence will spontaneously affect domestic a nd international markets, among which 
the influence upon the domestic market is particularly direct and obvious. As a 
responsible government, while i mplementing the stockholding policy, Chinese 
government would fully co nsider the influences on domestic and international markets 
so as not to impact farmers ' incomes or consumers ' interest and ruin China 's 
intern ational image.  
4.2.2 Financial services   
4.2.2.4 Regulatory regime for securities and stock exchanges   
The paragraphs  4.72 - 4.74 refers to stock market turbulences during the review period.  
What is China 's strategy regarding further financial liberalization steps in the light of the po ssibility 
of renewed volatile market responses?  
Reply: In the next step we will further promote the two -way opening of the financial 
sector. We will fully implement the pre -establishment national treatment and negative 
list management system to orderly expand the op ening of the service sector and market 
access of ban king, securities and pension, as well as promote the two -way opening of 
capital markets.  WT/TPR/M/3 42/Add.1  
 
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  43  THAILAND  
WT/TPR/S/342  
2. TRADE AND INVESTMENT REGIME  
Page 34 , paragraph 2.6  
Question 1   Paragraph 2.6 stated that as of 2014, all rules, normative documents and other policy 
measures formulated by various departments that are related to or affect trade in goods, services 
and/or trade -related intellectual property rights must comply with international trade rules. If 
necessary, in this regard, the different departments may consult with the Ministry of Commerce 
(MOFCOM). Please provide details on the steps involved in ensuring international trade rules are 
complied with.  
Reply: China attaches great importance to the comp liance of Chinese trade policy with 
WTO rules. The Third Plenary Session of the 18th Central Committee of the CPC required 
that governments at various levels take more proactive measures to regulate self -
behavio ur, to handle affairs in accordance with mark et-oriented and internationally 
prevailing practices and endeavor to establish fair, open and transparent market rules. 
In June 2014, the General Office of the State Council issued Notice of the General Office 
of the State Council on Further Enhancing the Compliance of Trade Policy (Guo Ban Fa 
[2014] No. 29). The Notice  expressly provides that all trade policies enacted by 
departments of the State Council, local governments at different levels and their 
subordinate departments should conform to WTO rules. I t also underlines that all local 
governments and departments should attach great importance to the compliance of 
trade policies, constantly improve consciousness of international trade rules, seriously 
implement all requirements and strengthen internationa l trade rules training for 
employees.  In December 2014, the Ministry of Commerce (MOFCOM) drafted and issued 
the Implementation Measures on the Compliance of Trade Policies (for trial 
implementation) (MOFCOM Public Notice [2014] No.86), which elaborated on  the 
content of the aforementioned Notice and specified the concrete working procedures 
and requirements.  
The Notice of the General Office of the State Council on Further Strengthening the 
Compliance of Trade Policies is available on the official website o f the Chinese 
government ( www.gov.cn ) and the official website of MOFCOM ( www.mofcom.gov.cn ). 
The Implementation Measures on the Compliance of Trade Policies (for trail 
implementati on) is published in the Issue 79 of 2014 China Foreign Economic and Trade 
Cooperation Gazette and is available on the official website of MOFCOM.  
Page 37 , Section 2.5  
Question 2  What is the difference of Prohibited Category (Box 2.2) referred in 2015 Inve stment 
Catalogue and the Negative Lists (para . 2.30.) which appeared in the Opinion issued by the State 
Council?  
Reply: Market access negative list system refers to a series of institutional arrangement 
under which the State Council clearly identifies in a  list the industries, sectors and 
business with prohibition and restrictions on investment and operation in them within 
the People's Republic of China , and governments at various levels take corresponding 
management measures as by. For the industries, sect ors and business outside the 
market access negative list, various market entities have equal access to the market. 
The market access negative list is a management measure consistently applicable to 
investors at home and abroad, as well as the unified requi rement for market access 
management of various market entities.  
The Special Administrative Measures for Access of Foreign Investment to Pilot Free 
Trade Zones (the Negative List) specified the special administrative measures for access 
of foreign investme nt that do not conform to national treatment and other principles. 
Currently, the Measures are only applicable to the four Pilot FTZs in Shanghai, Tianjin, 
Guangdong and Fujian. The sectors other than those specified in the Negative List will WT/TPR/M/3 42/Add.1  
 
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  be managed in  accordance with the principle of treating domestic and foreign investors 
equally within the FTZs.  
The Catalogue for the Guidance of Industries for Foreign Investment (the Investment 
Catalogue) is applicable to investments within the territory of China by overseas 
investors. Currently, foreign investors need to abide by China's  laws and regulations 
when investing in China, including the Investment Catalogue and other relevant 
provisions. In the future, China will comprehensively implement the pre -establishm ent 
national treatment plus negative list management system for foreign investment.  
Page 41 , paragraph 2.34  
Question 3  Please elaborate how PRC classify huge overcapacity? Does PRC use any definition as 
a reference? Please provide the web links to these l aws, if available.  
Reply: According to the Guiding Opinions of the State Council on Resolving Serious 
Production Overcapacity Contradictions (Guo Fa [2016] No. 41), the industries facing 
serious production overcapacity include iron and steel, cement, elect rolytic aluminium, 
sheet glass and vessels.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 84 , paragraph 3.130  
Question 4  Does China have English translation of its laws concerning competition policy, i.e. the 
Anti-Monopoly Law (AML), the Anti -Unfair Com petition Law, the Rules on Acquisition of Domestic 
Enterprise, and the Price Law?  
Reply: China has English translations of the laws concerning competition policy. Please 
refer to Laws and Regulations of the People's Republic of China  Governing Foreign -
related Matters compiled and published by the Office of Legislative Affairs of the State 
Council of the People's Republic of China .  
Page 84 , paragraph 3.131  
It is indicated that the AML allows the exercise of exclusive activities by state -owned enterprises 
(SOEs) or enterprises that have been granted exclusive production and sales rights legally.  
Question 5  Does this statement mean that such exclusive activities are not subject to the 
competition law, i.e. the Anti -Monopoly Law and other related laws?  
Reply:  The Anti -Monopoly Law applies to all kinds of enterprises, thus there will not be 
differences in terms of the application of AML among enterprises of different 
ownerships. Although the AML stipulates in its Article 7 that with respect to the 
industries wh ere state -owned economy hold dominant position and concerning the 
lifeline of national economy and national security or the industries subject to exclusive 
operation and sales according to law, the state protects the lawful business operations 
conducted by  the business operators therein according to law, the business operations 
in these industries are still subject to the regulations of AML. The AML articulately 
prohibits the enterprises in such industries to use their controlling positions or rights of 
exclusive operation and sales to jeopardize the interests of the consumers. In actual 
practice of law enforcement, the anti -monopoly law enforcement institutions have 
always been following the principle of fairness, equity and objectiveness, and treating 
all market players equally without discrimination.  
Question 6  Please explain how many SOEs or enterprises with exclusive production and sales 
rights there are.  Please kindly provide the list of those SOEs/enterprises.  
Reply: Such data is not available.  WT/TPR/M/3 42/Add.1  
 
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  Quest ion 7  Please explain about the production and sales rights mentioned above.  Please also 
give examples of the products (goods and/or services) of which those production and sales rights 
have been granted?  
Reply: For example, exclusive production and sales rights have been granted in the 
industries of tobacco and table salt, in accordance with the Tobacco Monopoly Law of 
the People's Republic of China and the Measures on Monopoly of Table Salt.  
Page 84 , paragraph 3.132  
Question 8  Please elaborate more on h ow simple cases, relatively low combined market share, 
and larger cases are defined.  
Reply: According to the Interim Provisions on Standards Applicable to Simple Cases of 
Concentration of Undertakings, the following cases of concentration of undertakings w ill 
be viewed as simple cases: 1. when the sum of the market shares taken by all the 
undertakings involved in the same relevant market is less than 15%; 2. with respect to 
business operators that have an upstream -downstream relationship, when the market 
shares occupied are less than 25% in the upstream and downstream markets 
respectively; 3. with respect to business operators that are neither in the same relevant 
market nor have an upstream -downstream relationship, when the market share 
occupied in each and  every business -related market is less than 25%; 4. when the 
operators establish a cooperative enterprise outside the Chinese territory, which does 
not engage in economic activities within the Chinese territory; 5. when the operators 
buy equities or assets  from an enterprise outside the Chinese territory, which does not 
engage in economic activities within the Chinese territory; 6. when a cooperative 
enterprise originally controlled by two or more operators come to be controlled by one 
or more than one oper ators of them through concentration.  
Relatively low combined market share and larger cases are defined in law -enforcement 
practices in line with the Interim Provisions on Standards Applicable to Simple Cases of 
Concentration of Undertakings and the merits of the cases.  
Page 85 , paragraph s 3.133 -3.134  
Question 9  Please provide examples of the markets of goods/services which have been subject to 
the implementation/execution of these Provisions in the past. What does it mean by an IP 
agreement related to Chi na? How are alternative and independent technologies on the relevant 
market determined? Please give examples of implementation/ enforcement of the Provisions on 
alternative and independent technologies.  
Reply: According to Article 2 of the Anti -Monopoly La w, the AML is applicable to 
monopolistic conduct in economic activities within the territory of the People's Republic 
of China , and monopolistic conduct outside the territory of the People's Republic of 
China  which serve to eliminate or restrict competitio n on the domestic market of China. 
Therefore, an IP agreement related to China refers to an intellectual property -related 
agreement which is reached or implemented within the Chinese territory, or an 
intellectual property -related agreement which is reached  or implemented outside the 
Chinese territory but serves to eliminate or restrict competition on the domestic market 
of China.   
Alternative and independent technologies on the relevant market have a two -fold 
meaning: first, the alternative technologies sho uld be able to serve as alternative to the 
intellectual property rights involved. This is to be assessed in light of the purpose, 
features, licensing fees of the alternative technologies. Second, the alternative 
technologies must be independent; the right holders (owners) of different alternative 
technologies must be mutually independent entities in both legal and business terms. 
With regards to examples, as the State Administration for Industry and Commerce 
currently does not have any completed cases invol ving intellectual property rights, and 
all such cases are still under process, the detailed information will only be released after 
the completion of related investigations.  WT/TPR/M/3 42/Add.1  
 
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  Page 85 , paragraph 3.135  
As competitive behavio ur in public enterprises is regulat ed by SAIC Decree No. 20 of 2006, please 
answer the following questions:  
Question 10   What is the definition of public enterprises? Are they different from state -owned 
enterprises? Please provide examples.  
Reply: According to Article 2 of the Regulations c oncerning the Prohibition of 
Competition -Restricting Behaviors of Public Enterprises, public enterprises refer to 
business operators of public utilities, including water supply, electricity supply, heat 
supply, gas supply, postal service, telecommunication  and transportation. According to 
Article 5 of the Law of the People's Republic of China on the State -Owned Assets of 
Enterprises, state -invested enterprise refers to a wholly state -owned enterprise or 
company with the state as the sole investor, or a comp any in which the state has a 
stake, whether controlling or non -controlling.  
Question 11   What types of commodities are supplied by public enterprises?  
Reply: According to Article 2 of the Regulations concerning the Prohibition of 
Competition -Restricting Be haviors of Public Enterprises, public enterprises refer to 
business operators of public utilities, including water supply, electricity supply, heat 
supply, gas supply, postal service, telecommunication and transportation. Therefore, the 
commodities supplie d by public enterprises include, but are not limited to, goods such as 
water, electricity, gas and heat, and services such as postal and public transportation 
services.  
Page 85 , paragraph 3.3.2  
Question 12  How does the State encourage and ensure fair comp etition, and prevent 
inappropriate business practices, such as price fixing conspiracies, market dominance, and the 
creation of monopoly power of private companies?  
Reply: Article 13 of the Anti -Monopoly Law clearly stipulates that competing 
undertakings a re prohibited from concluding the following monopoly agreements: (a) on 
fixing or changing commodity prices; (b) on restricting the amount of commodities 
manufactured or marketed; (c) on splitting the sales market or the purchasing market 
for raw materials ; (d) on restricting the purchase of new technologies or equipments, or 
restricting the development of new technologies or products; (e) on joint boycotting of 
transactions; and (f) other monopoly agreements so deemed by the enforcement 
authority of the An ti-Monopoly Law under the State Council.  
Cartels including monopolistic agreements that contain price fixing, quantitative 
restrictions and market division have the most direct and serious impact on competition. 
The National Development and Reform Commissi on has always been making tough 
efforts to crack down upon such illegal activities. At present, the major cartel cases 
directly investigated by NDRC or investigated by local authorities under the guidance of 
the NDRC include: the case of price monopoly by Zhejiang Insurance Company, the case 
of price monopoly by the rolling cargo shipment enterprise, the case of price monopoly 
of the allopurinol tablets, the case of price monopoly of automobile parts, the case of 
price monopoly of liquid crystal display (LC D ), the case of price monopoly of gold in 
Shanghai, the case of price monopoly of cement, etc. Through these law enforcement 
activities, the fair play and good order of the market have been upheld, and the lawful 
rights and interests of consumers protecte d. 
Page 95 , paragraph 3.3.5.2  
Question 13  Please provide more details on the reformation of State -owned enterprises in China; 
specifically the transformation of State -owned Assets Supervision and Administration Commission 
(SASAC) in terms of organization structure, government control, roles/responsibilities and 
investment strategy.  WT/TPR/M/3 42/Add.1  
 
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  Reply: At present, the reform of state -owned enterprises has made positive progress. In 
terms of pilots on mixed -ownership reforms, in June 2014, China picked China National 
Building Materials Group Corporation and China National Pharmaceutical Group 
Corporation as the pilot enterprises for the reform. So far, the two pilot enterprises have 
been forging ahead with the reform measures prudently, and will carry out a systematic 
summary. By the end of 2015, those with mixed -ownership accounted for 67.7% of all 
central enterprises; the ownership reform covered more than 80% of all SOEs of the 
nation and more than 90% of central enterprises and their subsidiaries. In terms of 
fulfillin g the functions and rights of the board of directors, China has been vigorously 
pushing forward the building of standardized boards with outside directors as the 
majority. By now, 87 out of the 105 central enterprises have established standardized 
board. I n the meantime, boards of some enterprises have been authorized to exercise 
such functions as making mid - and long -term development strategies and plans, and 
recruit high level management personnel. In terms of market -oriented recruitment of 
managers and t he professional manager system, boards of 5 central enterprises have 
recruited 14 managers in a market -oriented way.   
The Decisions on Major Issues Concerning Comprehensively Deepening Reform clearly 
puts forward to improve the state -owned assets managemen t system, strengthen state -
owned assets oversight with capital management at the core, reform the authorized 
operation mechanism for state -owned capital, establish a number of state -owned capital 
operating companies, support qualified SOEs to reorganize th emselves into state -owned 
capital investment companies. In 2015, China issued the Guiding Opinion on Further 
Deepening the Reform of State -Owned Enterprises, which mainly emphasized on 
transforming the functions of state -owned assets management bodies with  capital 
management at the core. The state -owned assets management bodies should perform 
their duties as sponsors of state -owned assets according to law, appropriately define 
the boundary of management, establish the lists of rights and obligations of regu lation, 
and realize the shift of focus from enterprise management to capital management.  
Question 14  What are criterion and framework for the government to privatize the SOEs?  
Reply: The criteria for the government to carry out the SOE reform are as follo ws: first, 
adhere to and improve the basic economic system; second, adhere to the direction of 
socialist market economy reform; third, enhance both vitality and regulation; fourth, 
push forward the reform proactively, prudently and comprehensively. The fra mework for 
the government to carry out the SOE reform is: in light of the strategic positioning and 
development goals of state -owned assets, dividing the SOEs into commercial enterprises 
and those for public welfare according to their different roles, stat us quos and 
development needs in the socio -economic development. By defining the SOEs different 
functions and categories, pushing for classified reform and development, the reforms 
are made better targeted, the supervision more effective and the assessment  more 
appropriate, SOEs are more deeply integrated into the market economy, and the 
economic and social benefits of the SOEs better united.  
Page 105 , paragraph 3.213  
Question 15 The Secretariat Report notes uses of the rights in a manner that eliminates or  
restricts competition through the abuse of the IPR granted by the patent as a ground for granting 
a compulsory license. Could China please explain what constitutes an abuse of right that 
eliminates or restricts competition and warrants the grant of a comp ulsory license?  
Reply: According to Article 48 of the Copyright Law of China, if the patentees act of 
exercising the patent rights is determined as a monopolistic act according to law, for the 
purpose of eliminating or reducing the adverse impact of the sa id act on competition, 
the patent administrative department of the State Council may, upon the application of 
an eligible entity or individual, grant it or him a compulsory license to exploit the patent 
for an invention or utility model. The monopolistic a ct mentioned here is determined by 
the judicial authority or anti -monopoly law enforcement agencies pursuant to the 
relevant provisions of the Anti -Monopoly Law.  WT/TPR/M/3 42/Add.1  
 
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  Page 108 , paragraph 3.228  
Question 16   In relation to geographical indications, the Secretari at Report states that A party 
seeking GI protection can voluntarily choose under which governmental acency(ies) to register its 
GI, and that If infringements of GIs occur, the interests of the affected party are protected 
pursuant to the relevant laws and regulations under which its GIs are registered. Please explain 
the scope of protection under each regime? And is China anticipating setting up a single regime of 
GI protection in the near future?  
Reply: Concerning the scope of protection under each regime,  under the trademarks 
regime,  GIs can be protected in the form of collective trademarks and certification 
marks. The regulations made by AQSIQ on GI protection provide equal protection to 
domestic and foreign products. The regulations made by the Ministry of Agriculture 
apply to agricultural products. At present, China is conducting researches on a joint 
recognition mechanism for GIs.  
Page 112 , paragraph 3.247  
Question 17  With respect to copyright, the Secretariat Report mentions the Network Sword 
Campaign  as one of the steps taken to strengthen administrative law enforcement. Could China 
outline the actions taken under this campaign as well as its effectiveness in combating copyright 
infringements?  
Reply: For more than 10 successive years since 2005, the N ational Copyright 
Administration of China (NCAC) has been carrying out the Network Sword Campaign 
aimed at cracking down upon internet copyright infringement and piracy together with 
the Ministry of Public Security, Ministry of Industry and Information Tec hnology and the 
National Internet Information Office, and has made remarkable achievements. In 
June  2015, the 11th campaign, i.e. the Network Sword 2015 was launched, which 
included targeted cracking -downs and punishments in several fields, namely internet  
music, cloud storage, third -party apps on intelligent mobile terminals, and network 
reproduction. During this campaign, a total of 113 websites were shut down.  
4. TRADE POLICIES BY SECTOR  
Page 117 , paragraph 4.8  
Question 18   We note that China has applie d a threshold price for tax levy of imported cotton in 
different ways. Could China explain the rational for this discrepancy?  And what is the criteria for 
determining the threshold price?  
Reply: China exercises tariff -rate quotas on imported cotton. In -quota imports of cotton 
are subject to quota rate. Out -of-quota imports of cotton are in principle subject to the 
MFN tariff rate. For a certain amount of out -of-quota imports of cotton, an interim tariff 
in the form of a sliding duty may apply. Under this re gime, cotton imported above the 
threshold price is subject to a fixed specific duty, while the cotton imported below the 
threshold price is subject to an ad valorem rate calculated according to the formula for 
sliding duty, which cannot exceed 40%. The thr eshold price is fixed by China through 
tariff -fixing procedures in light of the development needs under the precondition of 
complying with China's  entry commitments.  
Page 117 , paragraph 4.9  
Question 19  According to the table  4.2: Tariff rate quotas and th eir utilization, 2013 -2014, we 
would like to obtain further information regarding the Government of the People's  Republic of 
China's  practice for allocating tariff quota quantity of rice, and, for in -quota imports, whether rice 
import volume has reached th e yearly quota limit or not ?  
Reply: 5.2 million tons of TRQ for rice are allocated in accordance with the Interim 
Measures on the Administration of Tariff Rate Quota of Agricultural Products every year. 
Quota holders can decide by themselves the quantity of import. The quantities of import WT/TPR/M/3 42/Add.1  
 
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  have been notified to the WTO. In 2013 and 2014, the quantity was lower than the 
committed level.  
Question 20  Since a big gap between the tariff quota quantity and the in -quota imports on rice 
products in 2013 and 2014 can undermine the predictability of market access condition. Could 
China clarify how its plan to address this situation?  
Reply: The pertinent relevant authority has issued TRQ for rice in accordance with the 
Interim Measures on the Administration of Tariff  Rate Quota of Agricultural Products, 
including the transparency requirements, so as to provide certainty and predictability 
for the market. Quota holders can decide by themselves the quantity of import. 
Therefore, the difference between the committed quan tity and the actual import 
quantity is determined by the market. Since the situation reflected the market 
conditions, it would not be appropriate for the government to intervene.  
Page 117 , paragraph 4.11  
Question 21  Please provide more information on the  process and time consumed for the import 
licensing for the agricultural products both in local and central level?  
Reply: Currently, certain grain, meat, dairy products, oilseeds, fats and oils, tobacco are 
subject to automatic import licensing administrat ion. Regarding the process and time 
requirements, please refer to the Measures for the Administration of Automatic Import 
License of Goods, which has been notified to the WTO, or visit 
http://www.fdi.gov.cn/1800000121_39_1207_0_7.html for reference  . 
Page 118 , paragraph 4.13  
Question 22  Please provide the rationale for different VAT rebates rates for certain products, how 
to determine the rebate rate for different type of product, and also inform the proportion of rebate 
rate comparing with the actual rate.  
Reply: Differentiated VAT rebate rates are set at levels that help restrict the export of 
products of high energy consumption or high level of pollution, etc. The actual  rates of 
rebate are exactly the rebate rates as provided in relevant regulations.  
Page 123 (paragraph 4.24)  
Question 23  Please explain the criteria for determining the minimum procurement price for rice 
and wheat products comparing with the market price  and how to notify the policy in WTO domestic 
support (i.e. AMS)?  
Reply: The policy of minimum procurement price is determined based on factors 
including production cost, and is published in advance of the sowing period, which has 
nothing to do with the ma rket price after harvest. The minimum procurement price will 
be notified as the administered price in the Supporting Table DS:5.  
Page 124 , paragraph 4.2.1  
Question 24  Thailand noted that foreign ownership participation in telecom companies for basic 
telecom services is still very limited. Please identify the percentages of foreign ownership 
participation in basic telecommunications that are allowed?  
Reply: At present, the ceiling percentage for foreign ownership in basic 
telecommunications of China is 49% . 
Page 126 , paragraph 4.35  
Question 25  According to the WT/TPR/S/342 para graph  4.35 page 126: This is in particular the 
case for the agreements on Achieving Basic Liberalization of Trade in Services in Guangdong and 
Hong Kong, China on the one hand and Ma cao, China on the other hand, as well as for the new WT/TPR/M/3 42/Add.1  
 
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  agreements between mainland China and Hong Kong, China and Macao, China on services signed 
in November 2015. Please provide further clarification for Basic Liberalization of Trade in Services 
in this agr eement?  
Reply: This Agreement, based on the experiences of the preceding CEPA Agreement on 
Achieving Basic Liberalization of Trade in Services in Guangdong and Hong Kong, China 
/Macao China, further opened up trade in services to Hong Kong, China and Macao , 
China. The scope and extent of this opening up are wide and high. 153 sectors have 
been opened to Hong Kong and Macao respectively, covering 95.6% of the 160 service 
sectors of WTO. Of which, 62 sectors have seen national treatment granted. In the 
sector s where the negative list approach applies, only 120  restricting measures remain, 
of which 28 have seen market access conditions further eased. In the few sectors where 
the positive list approach applies (cross -border services, culture, and telecom), the 
mainland has adopted 28 and 20 new opening -up measures to Hong Kong China and 
Macao China respectively. In addition, in the aspect of investment facilitation, record -
filing management has replaced examination and approval of contracts and articles, if a 
service provider from Hong Kong China or Macao China is to set up a company in the 
sectors opened up according to the agreement.  
Page s 128 – 129, Box 4.2  
Question 26  According to the Box 4.2, Securities activities: (securities, holding bond, and stocks 
by commercial banks) (page 128) and commercial banks was referred as (a) in order to explain 
which cover state -owned commercial banks, joint -equity banks, urban commercial banks, rural 
commercial banks and foreign -invested banks (page 129). Please provide info rmation regarding 
differences among these banks of business operations?  
Reply: According to the Commercial Bank Law, the business operations of a major bank 
include: taking public deposits; issuing short, mid - and long -term loans; carrying out 
domestic and  international settlements; acceptance and discounting of bills; issuing 
financial bonds; issuing, paying and underwriting government bonds as a broker; buying 
and selling government bonds and financial bonds; conducting interbank lending; buying 
and selli ng or brokering the buying and selling of foreign exchanges; conducting 
bankcard business; providing letter of credit (L/C) services and insurance; taking 
receipts, making payments and doing insurance business for others; providing safe -
deposit -box related  services; other businesses authorized by the banking regulatory and 
administrative departments of the State Council.   
National joint -stock commercial banks are the banking financial institutions established 
in accordance with the Commercial Bank Law and o ther pertinent regulatory statutes, 
which conduct business operations across China within the scope allowed by Article 3 of 
the Commercial Bank Law and related statutes. Urban commercial banks are local 
financial institutions, which provide services to loc al economy, small and micro 
businesses, and urban as well as rural residents. Urban commercial banks are also 
committed to the financial businesses that are closely connected to the improvement of 
work and life of urban and rural residents, providing servi ces in the payments and 
receipts of salaries, social securities, pensions, water and electricity fees, etc.  
Rural commercial banks strictly follow the Commercial Bank Law of the People Republic 
of China and other regulations,  statutes and regulations, and  provide services to 
agriculture, rural areas and farmers as well as small and micro businesses, making 
fundamental contributions to the basic financial services in the vast rural and remote 
areas of China, as well as to the community financial services in  the urban areas.  
At present, the business scopes of Chinese and foreign corporate banks are basically the 
same. Foreign corporate banks can deal with foreign exchange and RMB business for all 
kinds of customers, including taking public deposits, issuing loans, buying and selling 
government bonds and financial bonds, conducting acceptance and discounting of bills, 
etc. Foreign bank branches are different from foreign corporate banks in terms of risk 
features and business modalities as the parent banks of f oreign banks are outside the 
Chinese territory. For this reason, branches of foreign banks are not allowed to conduct WT/TPR/M/3 42/Add.1  
 
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  RMB businesses for Chinese citizens, or conduct bankcard businesses. Except for this, 
the permitted business scopes are roughly the same f or the branches of foreign banks 
and corporate banks.  
Page 41 , paragraph 4.102  
Question 27  According to the paragraph, The Circular to Incorporate Railway Transportation and 
Postal Services into the pilot Programme to Replace the Business Tax for the VAT  specifically 
provides that overseas film production, distribution and projection shall be VAT exempted. Please 
provide further clarification about this Circular? And please elaborate how this particular 
programme on Railway Transportation and Postal Servi ces relate to the film industry.  
Reply: The Circular to Incorporate Railway Transportation and Postal Services into the 
Pilot Programme to Replace the Business Tax for the VAT is a comprehensive policy 
document issued after the incorporation of railway tra nsportation and postal services 
into the pilot program of replacing the business tax with VAT. The content of this policy 
document covered transportation, postal services and 7 modern service industries, 
including radio, film and television services. The i mplementation of this document was 
ceased on May 1st, 2016.  
WT/TPR/G/342  
2. ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION  
Page 8 , paragraph 2.23  
Question 28  It was mentioned in the report that China had carried out special programs to crack 
down online infringement and piracy. Please provide further information about the special 
programs.  
Reply: For more than 10 successive years since 2005, the National Copyright 
Administration of China (NCAC) has been carrying out the Network Sword Cam paign 
aimed at cracking down upon internet copyright infringement and piracy together with 
the Ministry of Public Security, Ministry of Industry and Information Technology and the 
National Internet Information Office, and has made remarkable achievements. In 
June  2015, the 11th campaign, i.e. the Network Sword 2015 was launched, which 
included targeted cracking -downs and punishments in several fields, namely internet 
music, cloud storage, third -party apps on intelligent mobile terminals, and network 
reprodu ction. During this campaign, a total of 113 websites were shut down.  
3. TRADE AND INVESTMENT DEVELOPMENT AND RELATED POLICIES  
Page 17 , paragraph 3.13  
Question 29  How is the actually utilized FDI for each industrial sector measured?  
Reply: China measures t he the actually utilized FDI by the amount of capital that foreign 
investors have already put into the invested enterprises, and the relevant data come 
from the reported information of the enterprises.  
Page 21 , paragraph 3.37  
Question 30  Please provide fu rther information on what kind of innovation has been applied in the 
trade regulatory system to supporting trade facilitation in the PRC economy.  
Reply: In June 2014, the General Office of the State Council issued Notice of the General 
Office of the State Council on Further Enhancing the Compliance of Trade Policy (Guo 
Ban Fa [2014] No.  29). The Notice  expressly provides that all trade policies enacted by 
departments of the State Council, local governments at different levels and their 
subordinate departmen ts should conform to WTO rules. It also underlines that all local 
governments and departments should attach great importance to the compliance of WT/TPR/M/3 42/Add.1  
 
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  trade policies, constantly improve consciousness of international trade rules, seriously 
implement all require ments and strengthen international trade rules training for 
employees.  In December 2014, the Ministry of Commerce (MOFCOM) drafted and issued 
the Implementation Measures on the Compliance of Trade Policies (for trial 
implementation) (MOFCOM Public Notice [ 2014] No.  86), which elaborated on the 
content of the aforementioned Notice and specified the concrete working procedures 
and requirements.  
Page 24 , paragraph s 3.52, 3.53 
Question 31  Please elaborate on how ITA and EGA could benefit the China's  economy.  
Reply: At present, as global trade is mired in sluggish growth and the external demand 
remains weak, China hopes to work with other participating parties to further lower the 
tariff of IT and environmental products and reduce trade barriers, in a bid to pro mote 
the growth of international trade of related products and contribute to the recovery and 
growth of the global economy.  
4. THE WAY FORWARD  
Page 25 , paragraph 4.2  
Question 32  Paragraph 4.2 stated that, Chinese government will put its efforts to mainta in its 
stable economic growth and development in order to achieve economic sustainability and come up 
with the new economic situation. So that Chinese government will stick to and carry out 
technological, innovative and environmental development as the key  tolls to accomplish these 
goals. Please provide information regarding the incentives launched by the Chinese government to 
promote more innovation driven industry? And to what specific sectors?  
Reply: On the one hand, the supply -side structural reform wil l be promoted. 
Overcapacity in steel and iron, coal and other key industries will be addressed first and 
market -oriented enterprise merger and reorganization will be encouraged; destocking in 
real estate industry will be promoted; deleveraging will be impl emented in an active and 
steady way; targeted poverty alleviation tasks include relocation will be well 
implemented, and investment in the central and western regions will be increased for 
infrastructure, ecological and environmental protection, industrial  transformation and 
upgrading, and prevention and control of atmospheric pollution in key areas will be 
strengthened.  
On the other hand, new momentum will be cultivated quickly for the development of 
new economy. The innovation -driven development strategy  will be vigorously 
implemented, and the Internet Plus actions further promoted to improve the 
development system of modern service industry, and a new round of comprehensive 
reform pilots of the service industry started; and a more competitive talent attr action 
system will be implemented.  WT/TPR/M/3 42/Add.1  
 
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  44  THAILAND (ADD.)  
Page 85, paragraph 3.135  
3.3.2.1 Legislative and institutional framework  
Q: Does China have specific laws or any legal provisions governing importation of cereals and 
grains?  If so, please identify those laws and provisions and, if available, please provide an English 
version of them.  If English version is not available, please provide a summary of the substance of 
those laws and legal provisions.  
Reply: In the field of competition policy, China has no spe cific laws or legal provisions 
governing importation of cereals and grains. For enterprises to import agricultural 
products, including grains, they should meet the stipulationss of The Foreign Trade Law, 
Food Safety Law and other relevant laws of China. In  addition, the importation of 
agricultural products with tariffrate quota such as wheat and rice are subject to the 
Interim Regulations on the Administration of Tariff -Rate Quotas for the Importation of 
Agricultural Products and other relevant regulations.  The laws mentioned above have 
been notified to WTO.  
Page 117, paragraph 4.8 
Page s 119-120, paragraph s 4.17-4.18 
4.1.3.1.1 Measures affecting imports  
4.1.3.2.1 Support measures  
Q: We are interested in China's  overall policy on importing maize from other co untries as well as 
purchasing maize from domestic producers/farmers, including the Chinese Governments buying 
from their producers/farmers and abroad.   
Reply: China has liberalized the maize market, and the purchase and sales of maize are 
conducted entirel y under market conditions. China takes such economic means as grain 
reserves purchase and sales, and importation and exportation of grains to maintain the 
basic balance between domestic grain supply and demand, and basic stability of the 
price. Please refe r to the Administrative Regulation on Cereal Circulation for details.  
(1) Besides the TRQ allocation for maize as indicated in paragraph 4.8 and Table 4.2, does China 
impose other border measures on imported maize? Does China impose any non -tariff measures , 
i.e. SPS measures, on imported maize? If so, please explain.  
Reply: No.  
Reply:  On July 1st, 2016, Supervision and Management Measures for the Inspection and 
Quarantine of Imported and Exported Grains was officially put into force. China has sent 
notes to  relevant trading countries, requesting them to well manage the quality and 
safety of grains before exporting them to China according to China's  inspection and 
quarantine requirements for the of imported and exported grain (including maize and 
cassava chip s). 
(2) Besides the internal support measures indicated in the Report, does the Chinese Government 
purchase maize from their own domestic producers/farmers or from abroad for any purposes, 
including stockholding purposes?  If so, could China explain about t hat policy and implementing 
measure(s)?  
Reply: Please refer to reply to Question regarding paragraph 4.1.3.2.1.  
(3) What is China's  policy on using and/or allocating maize in different industries, i.e. animal feed, 
energy, and alcohol?  
Reply: The sales and  use of maize are market -oriented. Customers can decide on their 
own the usage of purchased maize. The government has not formulated any specific 
policy to guide the use of maize.  WT/TPR/M/3 42/Add.1  
 
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  Page 117, paragraph 4.8  
4.1.3.1.1 Measures affecting imports  
4.1.3.2.1 Supp ort measures  
Q: We are interested in China's  overall policy on importing cassava from other countries as well as 
purchasing cassava from domestic producers/farmers, including the Chinese Governments buying 
from their producers/farmers and abroad.   
Reply:  Cassava is one of the agricultural products imported in relatively large amount 
into China. In 2015, the value of imported cassava was over 1.7 billion US dollars, higher 
than that of wheat, rice, and maize, and next only to that of sorghum and barley. The 
Chinese government has no specific policy as to the import and purchase of cassava.  
(1) Because paragraph 4.8 and Table 4.2 do not indicate any TRQ measure for imported cassava, 
does it mean that China imports cassavas without quota? Does China impose bord er measures, 
including non -tariff ones, on imported cassava? If so, please explain.  
Reply: No.  
(2) Besides the internal support measures indicated in the Report, does the Chinese Government 
purchase cassava from their own domestic producers/farmers or from  abroad for any purposes, 
including stockholding purposes?  If so, could China explain about that policy and implementing 
measure(s)?  
Reply: Cassava is not included in China's  stockholding policy.  
(3) What is China's  policy on using and/or allocating cassav a in different industries, i.e. animal 
feed, energy, and alcohol?  
Reply: None.  WT/TPR/M/3 42/Add.1  
 
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  45  TURKEY  
WT/TPR/G/342  
2.1.2 Domestic Economic Situation, p age 5, paragraph 2.7 
It is stated in the Government Report that In terms of labour cost, 19 provincial authorities 
nationwide adjusted their minimum wage standards in 2014, with an average increase rate of 
14.1%. In 2015, 27 provincial authorities adjusted their minimum wage standards, with an 
average increase rate of 14.9%. Currently, Shanghai has the highest standards for  both the 
minimum monthly wage and the minimum hourly wage nationwide, standing at 2,190 yuan and 
19 yuan respectively. The average monthly income of migrant workers was 2,864 and 3,072 yuan 
respectively in 2014 and 2015, showing a year -on year increase of  9.8% and 7.2% respectively.  
Given labour costs incremental increase in China in recent years, could China give more 
information on how national adjustment of minimum wage and cost increase will affect 
competitiveness of China in labo ur-intensive sectors?  Could China also specify if minimum wage 
requirements are the same in Free Trade Zones  (e.g. Shanghai Free Trade Zone)?  
Reply: According to the Labor Law and the R egulation  on Minimum Wages, the minimum 
wage standards are universally determined by the peop le's governments of provinces, 
autonomous regions and municipalities directly under the central government. 
Determin ation  and adjust ment of  the minimum wage standards should take into 
consideration all the factors such as the minimum expense for living of the local 
employees and the population under support, CPI of the urban residents, employees 
personally paid social insurance and housing funds, average wage of employees, 
economic development level and status of employment, etc. Factors such as the cost of  
labour  force ha ve already  been taken into account in all areas in determining the 
minimum wage standards. Since the beginning of 2016 , eight regions in China have 
adjust ed their minimum wage standards, with an average increase rate of 10.9%.  
China has yet  to make special regulations on the implementation of the minimum wage 
system in the pilot free trade  zones, where enterprises should follow the uniform 
regulations of the local area. For instance, the minimum monthly wage standard in 
Shanghai is 2,190 yua n, and the minimum hourly wage  is 19 yuan. Wages for the labo ur 
force  of all enterprises in Shanghai including those in the pilot free trade zone should 
not be lower than this standard.  
2.3 Adjusting Economic Structure and Transforming Development Pattern,  2.3.4  
Pursuing innovation -driven development, p age 8, 2.25  
It is stated in the Government Report that the Chinese government has regarded innovation as a 
core priority in its national development agenda and the primary motive force that leads 
development.  It formulated and implemented the Outline of National Strategy on Innovation -
driven Development, pushed forward entrepreneurship and innovation by the public, and made 
great efforts to cultivate new elements, develop new industries and create new models.   
Today's world is witnessing a transformation in manufacturing processes and the creation of new 
business models due to breakthrough technological innovations. As a country that acknowledged 
the importance of innovation in development and set it at the cor e of a national strategy, could 
China elaborate on the specifics of the Outline of National Strategy on Innovation -driven 
Development with respect to enabling the successful integration into the above mentioned 
transformation processes? Could China also pr ovide a brief evaluation on the foreseeable impacts 
of this Strategy on the productivity and competitiveness of China in the future?  
Reply: The Outline of National Strategy on Innovation -driven Development (hereinafter 
referred to as the Outline), as the overall design and systemetic planning for the 
innovation -driven development strategy, defines the the direction and focus of 
innovation -driven development in China in the coming 30 years. The Outline points out 
that to implement the innovation -driven stra tegy required to carry forward the all -round 
innovation with technological innovation as the core, drive all -round innovation WT/TPR/M/3 42/Add.1  
 
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  including innovations in management, organization and business models with 
technological innovation, build the new engine for deve lopment and enhance 
significantly the capacity of technology to support and lead social and economic 
sevelopment, and make innovation the primary enegine to lead development.  
According to the Outline, through the implementation of the innovation -driven 
development strategy, by 2020 China will be among the innovation -based countries, and 
the innovation -based economic pattern will take shape initially; by 2030 China will be 
join the leading innnovation -based countries, and the drving engine for development 
realize fundamental shift, the economic and social development as well asd international 
competitiveness be significantly enhanced; by 2050, China will become a strong 
innovator of science and technology and a major scientific research and innovation 
center.  
2.3.2 Accelerating the development of the service sector, page 7, paragraph 2.20 
It is stated in the Government Report that The Chinese government has continued to encourage 
non-government players to increase their investment in the service sector, deepen  various reforms 
in the service sector, and released the guiding opinions on promoting the development of 
information services, culture, tourism, sports, elderly care, health, life service and other service 
industries. The Chinese government has focused on  promoting the development of emerging 
industries such as energy conservation and environment protection, and endeavoured to cultivate 
a sound policy and institutional environment for the development of the service sector.  
Could China specify the various r eforms in the service sector as mentioned above as well as 
provide more detailed information on theguiding opinion regarding the promotion of the 
development of different services industries?  
Reply:  
1. Transform government functions, and carry forward furt her administration 
streamlining and decentralization, combination of decentralization and regulation as 
well as service optimization in the field of culture market. In July 2015, upon the 
issuance of  Notice by Ministry of Culture to Improve Administrative Review on Culture 
Market  (Wenshihan [2015] No.627), China has implemented the License Granted before 
Certificate policy, relax access restrictions on the culture market entities, cancel the 
overall layout requirement, further standardize the review and app roval conduct, 
simplify the review materials and enhance the service level.  
2. Transform and upgrade the internet surfing service, singing and dancing recreation 
and gaming and entertainment industries. Encourage the relevant venues to improve 
service envi ronment, diversify operation modalities, participate in public services, 
support the development of chain enterprises and enhance the operation and 
management level of the above -mentioned industries, thus promoting their sound and 
orderly development.  
3. Speed up the development of information technology services. Support information 
technology service enterprises for independent innovation, encourage capable 
enterprises to perform businesses with high added value such as overall solution, R&D 
design and co nsulting service, and vigorously participate in the Belt and Road Initiative. 
Implement the Opinions on Improving Cloud Computing Innovation and Development 
and Cultivating New Information technology Business, further promote the capacity of 
cloud computin g service and popularize its application in key fields. Speed up the 
development of information technology services for manufacturing, and promote the 
application of the industrial internet to industrial manufacturing. Implement the 
five-year action plan f or information technology service standardization (ITSS) to 
improve and popularize ITSS.  WT/TPR/M/3 42/Add.1  
 
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  2.3.2 Accelerating the development of the service sector, page 7, paragraph 2.21 
It is stated in the Government Report that The Internet economy has enjoyed explosive growth, 
information consumption has surged, and the scales of railway, road, water transportation and civil 
aviation networks have constantly expanded. Postal and express delivery industries have 
developed by strides, tourism has maintained fast growth, an d public service has enjoyed marked 
development achievements.  
Having witnessed a reduction of costs and an increase in domestic and foreign investments, could 
China explain whether there has been any role played by incentives in the development of 
interne t-based services sectors?  
Reply: China has unveiled documents such as the Guiding Opinion of the State Council 
on Vigorously Carrying Forward the Internet Plus Action  and Opinion of the State 
Council on Vigorously Promoting Several Measures for Masses Entr epreneurship and 
Innovation  to strengthen the overall design, and gather and cultivate new dynamics for 
economic and social development; meanwhile, China has implemented a series of reform 
measures to simplify examination and approval procedures and energi ze the market.  
2.3.5 Advancing transformation and upgrading of traditional industries and energy  
conservation and emission reduction, page 9, 2.29  
It is stated in the Government Report that The Chinese government attaches great importance to 
conserving res ources, protecting environment and addressing climate change and has been 
vigorously promoting energy conservation, emission reduction, and pollution prevention and 
control, proactively dissolving excess and outdated production capacity in steel, cement, 
electrolytic aluminum and other industries of high energy consumption and high emission, treating 
these tasks as important component of China's efforts in the adjustment of industrial structure and 
transformation of its economic development pattern.  
Could C hina provide detailed information about dissolving excess and outdated production capacity 
in steel, cement, electrolytic aluminum for the next years?  Are there any specific targets for 
eliminating the excess capacity in these sectors?  
Reply: For steel, the Opinions of the State Council on Reducing Excess Capacity in the 
Steel Industry to Achieve Development by Solving the Difficulties  (Guo Fa [2016] No. 6) 
requires that the market should serve as a check, the role of enterprises as the major 
actors be brou ght into full play, and efforts be made to ensure the exit of steel capacity 
that cannot meet the requirements according to laws and regulations, through strict 
implementation of laws, regulations and industrial policies on environmental protection, 
energy  consumption, quality, safety and technology. The equipment of obsolete capacity 
must be dismantled. Law enforcement and supervision should be strictly implemented, 
the blacklist of bad records be timely released for better information disclosure and 
publi cs supervision. Support should be provided to the hiving -off and reemployment of 
personnel as a result of local endeavor to reduce overcapacity.  
For electrolytic aluminum,  the Guiding Opinions of the General Office of the State 
Council on Creating a Favora ble Market Environment to Promote Structural Adjustment, 
Transformation and Increases in Benefits in the Non -Ferrous Metal Industry  (Guo Ban Fa 
[2016] No.  42) requires that efforts be made to strengthen fair and impartial law 
enforcement in environmental p rotection, energy conservation, quality, safety and 
technology, to ensure the exit and disposal of excess capacity according to laws and 
regulations, and guide the transfer and exit of uncompetitive capacity.  
For cement, plate glasses and other industries,  the Guiding Opinions of the State Council 
on Promoting Steady Growth, Structural Adjustments and Increased Efficiency of the 
Building Materials Industry  (Guo Ban Fa [2016] No. 34) put forward specific 
requirements that expansion of production capacity sha ll be strictly prohibited and 
outdated production capacity be eliminated. Specifically, the requirements include 
severe measures such as strictly prohibiting the record -filing of new production capacity 
(cement and other investment projects are not subject  to examination and approval, but WT/TPR/M/3 42/Add.1  
 
- 398 - 
 
  only to record -filing); the projects failing to engage in production capacity displacement 
according to stipulations thus resulting in new production capacity shall be seriously 
investigated and penalized, and departments for land resource management, 
environmental protection and quality inspection shall not support these projects; where 
a project violates regulations, its application for production permit shall not be 
accepted, and, in case that its application has been ac cepted, the permit shall not be 
granted.  
During the 12th Five-Year Plan period, in cumulative terms, over 90 million tons of crude 
steel capacity had been cut, the overcapacity situation in the electrolytic aluminium 
industry had improved with the rate of capacity utilization kept at above 80%. Fixed -
asset investment in the aluminum smelting industry registered negative growth for 
three consecutive years, and the growth in productivity has slowed down. The measures 
put into place by China have delivered pos itive results. Next, relevant authorities and 
local governments will resolutely implement the requirements of the documents.  
2.4.1. Further Promoting Reform of the Administrative Examination and Approval, 
pages  10-11, paragraph 2.38.  
It is stated in the Go vernment Report that On 2 October 2015, the State Council released the 
Opinions of the State Council on Implementing the Negative List System for Market Access. 
According to the Opinions, a negative list system would be piloted in some regions and will be 
officially adopted across the country as of 2018. The document requires relevant departments to 
waste no time in formulating the negative list for foreign investment. The negative list system for 
market access refers to a series of institutional arrangemen ts where the State Council clearly lists 
the sectors, areas and businesses prohibited or restricted from the market within the territory of 
the People's Republic of China, and governments at various levels take corresponding 
management measures according t o law. All kinds of market players may enter the sectors, areas 
and businesses outside the negative list on an equal basis and according to law  
Could China give more information on Opinions of the State Council on Implementing the Negative 
List System for Market Access and explain its difference from the Catalogue for the Guidance of 
Foreign Investment Industries  which already specifies sectors open to foreign investment under 
encouraged, restricted, prohibited labels and already presenting a negative list understanding?  
Reply: Market access negative list system refers to a series of institutional arrangement 
under which the State Council clearly identifies in a list the industries, sectors and 
business with prohibition and restrictions on investment and ope ration in them within 
the People's Republic of China , and governments at various levels take corresponding 
management measures as by. For the industries, sectors and business outside the 
market access negative list, various market entities have equal acces s to the market. 
The market access negative list is a management measure consistently applicable to 
investors at home and abroad, as well as the unified requirement for market access 
management of various market entities. The Catalogue for the Guidance of Industries 
for Foreign Investment (the Investment Catalogue) is applicable to investments within 
the territory of China by overseas investors. Currently, foreign investors need to abide 
by China's  laws and regulations when investing in China, including the  Investment 
Catalogue and other relevant provisions. In the future, China will comprehensively 
implement the pre -establishment national treatment and negative list management 
system for foreign investment.   
2.4.4. Reform of State -Owned Enterprises and Deve lopment of the Private Economy, 
page 13, paragraph 2.47 
It is stated in the Government Report that At the end of 2015, the number of central enterprises 
for which the State -Owned Assets Supervision and Administration Commission of the State Council 
(SASAC)  performed the responsibilities of an investor was reduced to 106 from 112 . 
Considering increasingMergers and Acquisitions activity among SOEs in recent years particularly in 
shipbuilding, railway building sectors, would China expect some SOEs to dominate a fewstrategic 
sectors in the economy and increase their weight despite shrinking numbers in the next years?  WT/TPR/M/3 42/Add.1  
 
- 399 - 
 
  Reply: According to Article 16 of the Constitution of the P.R.C. , State -owned enterprises 
have decision -making power in their operation within the scope prescribed by law. As 
independent market players and legal entities, China's  state -owned enterprises are 
entitled to make independent business operation decisions whether they are in a 
strategic industry or not. China is pushing into depth the reform  of central enterprises to 
enhance their competitiveness by adjusting the structure. First, intensify efforts in the 
supply -side structural reform and optimize the layout structure of state -owned capital. 
Second, deduce management layers and streamline sta ffing. Thirdly, integrate resources 
and operating well the major business. Fourthly, promote sound development via 
innovation and speed up transformation and upgrading. Fifthly, advance cost reduction 
and efficiency increase to enhance operation efficiency . 
2.4.5. Pushing Forward Reform of Fiscal and Taxation System, p age 13, para graph  2.48 
It is stated in the Government Report that The taxation systems applied to the domestic and 
foreign -invested enterprises have been unified, VAT transformation has been r ealized, the pilot 
program of levying VAT in lieu of business tax implemented, and the reform on the ad valorem 
calculation and collection of resources tax carried out in an all -round way. The Chinese 
government has also pressed ahead with reform of consum ption tax and legislation on 
environmental protection tax, and gradually promoted the reform of personal income tax that 
combines comprehensive and classified measures.  
Considering China is number one -ranked country with the highest number of e -commerce us ers 
and turnover, could China's  imposition of new tax rules  (17%  for VAT and a consumption tax)  on 
imported consumer goods purchased online create a trade barrier for cross -border e -commerce in 
China?  
Reply: According to Article 1  of the Interim Regulation s on Value -Added Tax of the 
P.R.C ., any unit or person engaging in sales, proocessing,  repair ing and maint aining 
services  and import of goods is payer of value -added tax and should pay VTA according 
to th ese regulations. Commodities imported via  cross -bord er electronic commerce retail 
in recent years has always been subject to simple collection as for personal items for 
self-use, and subject to uniform import tax which combines tariff, VAT and consumption 
tax hence certain preferences, resulting in super na tional treatment  and therefore 
causing unfair competition with goods imported in general trade and domestic products.  
In March 2016, upon the approval of the State Council, the Ministry of Finance, General 
Administration of Customs (GAC), and State Adminis tration of Tax jointly issued the 
Notice on Cross -border Electronic Commerce Retail and Import Tax Policy  (Caiguanshui 
[2016] No.  18), which provided that from April 8, 2016, products imported through 
cross -border electronic commerce retail shall be levied  tariff and VTA and consumption 
tax in the import stage. And the VAT and consumption tax shall be temporarily levied on 
70% of the statutory tax amount payable.  
Therefore, instead of erecting trade barriers for electronic commerce in China, this 
policy is beneficial to creating a tax environment for fair competition and the long -term 
sound development of the cross -border electronic commerce retail and import industry.  
3.2.2. Pushing Forward Transformation and Upgrading of Foreign Trade, p age 19, 
paragraph  3.24 
It is mentioned in the Government Report that In February 2016, the State Council decided to 
carry out pilots on innovation and development of trade in services in 15 provinces and 
municipalities (areas) including Tianjin to explore the systems and mec hanisms suitable for and 
can facilitate the innovation and development of trade in services . 
Could China provide detailed information on services sectors to be specifically encouraged in its 
pilot program?  
Reply: On February 22, 2016, the State Council iss ued the Reply on Agreeing to Carrying 
out Innovation and Development Pilots for Trade in Services (hereinafter referred to as WT/TPR/M/3 42/Add.1  
 
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  the Reply) and agreed to carry out innovation and development  pilots for trade in 
services  in 15 provinces and cities (regions) in cluding Tianjin and required them to bring 
into full play local enthusiasm and creativity in the development of the trade in services, 
focus on experimenting on the management system, promotion of system, policy system 
and regulatory modality to explore th e path of development for the national innovation 
and development for trade in services. Given the difference in the development level and 
feature services among the regions for pilots, the pilot plan does not identify any service 
industries to encourage.  
3.1.1 Trade and Investment Development and Related Policies  Trade and Investment 
Development  Trade Development, page 16, para graph s 3.3 -3.5-3.6 
It is stated in the Government Report that In 2014 and 2015, China's total imports and exports of 
goods reached  US$4.30 trillion and US$3.96 trillion, up 3.4% and down 8% year -on-year 
respectively . 
Second, general trade has fallen after steady growth. In 2014 and 2015, total import and export 
value under general trade reached US$2.31 trillion and US$2.14 trillion, up 5.3% and down 7.5% 
year on year respectively and accounting for 53.8% and 54.1% of aggregate imports and exports 
respectively  
Thirdly, the share of processing trade has shown an obvious trend of decline. In 2014 and 2015, 
total imports and exports under  processing trade were US$1.41 trillion and US$1.24 trillion 
respectively, up 3.8% and down 11.6% respectively and accounting for 32.7% and 31.5% of total 
imports and exports.  
It is understood that cross -border trade of China can either be done under Gener al Trade or 
Processing Trade. However , following the addition of total import and export values of both trade 
types, it does not amount to China's total imports and exports of goods specified under 
Paragraph  3.3. Could China explain the source of this inco nsistency?  
Reply:  
1. The statement in the question list It is understood that cross -border trade of China 
can either be done under general trade or processing trade. However, following the 
addition of total import and export values of both trade types, it does not amount to 
China's total imports and exports of goods specified under Paragraph 3.3 is not correct 
since the total value of China's  trade is not the aggregation of that for general trade and 
processing trade, but the aggregation of that for 20 kind s of trading modes.  
2. China's  customes statistics involve general trade, barter trade, processing trade, 
compensation trade, bonded warehoursing, and logistics trade of the legal persons, 
other organizations and individuals in the territory of China, as w ell as international 
material assistance or donations. Taking into account  the regulatory means of customs, 
there are specifically 20 kinds of trade modes in the customs statistics.  
3.3.2. Improving Competitiveness through Going Global, p age 22, paragraph  3.40 
It is stated in the Government Report that In 2013, the Chinese government proposed the major 
cooperation initiative of jointly building Silk Road Economic Belt and 21st Century Maritime Silk 
Road. By the end of 2015, 68 countries have expressed thei r willingness to join. The initiative has 
become the common aspiration reflecting the interests and pursuits of all parties. In 2015, the 
Chinese government issued the Vision and Actions on Jointly Building Silk Road Economic Belt and 
21st Century Maritime  Silk Road. China and the countries along the Belt and Road planned for the 
construction of six economic corridors that run through China -Mongolia -Russia, New Eurasian Land 
Bridge, China -Central Asia -West Asia, China -Pakistan, Bangladesh -China -India-Myanma r and 
China -Indochina Peninsula. The Asian Infrastructure Investment Bank and the Silk Road Fund have 
accelerated substantial project investment, and provided strong funding support for Asia -Europe 
connectivity and industrial cooperation.  WT/TPR/M/3 42/Add.1  
 
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  Given that Asian Infrastructure Investment Bank is a China -led multilateral development bank with 
57 founding members and the Silk Road Fund is specifically designed for Chinese companies 
overseas projects, would China consider Silk Road countries participation into the pr ojects financed 
by Silk Road Fund?  
Reply: The establishment of the Silk Road Fund is an important component of the Belt 
and Road initiative. Upholding the concept of Openness and Inclusiveness with Mutual 
Benefit and Win -Win, the Fund is dedicated to provi ding investment and financing 
support to the economic trade cooperation and bilateral and multilateral  
interconnectivity between China and the relevant countries and regions. It makes 
concerted efforts with  enterprises and financial institutions home and a broad to 
promote the common development and shared prosperity of countries and regions along 
the Belt and Road. For more details, please refer to the website of the Silk Road Fund: 
http://www.silkroadfund.com.cn/cnweb/19954/20355/index.html   
From China's  point of view, what will be the exact position and role of Turkey in the process of 
buildingSilk Road Economic Belt and  21st Century Maritime Silk Road and will there be any 
economi c corridors running through other than aforementioned six economic corridors?  
Reply: In the junction of Asia, Africa and Europe, and an important gateway connecting 
Asia and Europe, Turkey boasts extremely significance in both geographical location and 
geopolitics. As the starting point and end point of the ancient Silk Road respectively, 
China and Turkey enjoy profound historical connections. In recent years, Sino -Turkish 
economic and trade relations have realized rapid development and China has become 
Turkeys second largest trading partner. As one of the key countries along the Belt and 
Road route, Turkey is a proactive supporter and major participant in the Belt and Road 
initiative. China is willing to align the Belt and Road initiative with Turkeys inter mediate 
corridor plan, make active use of such platforms as the Silk Road Fund and the Asian 
Infrastructure Investment Bank to strengthen the industrial cooperation in high -speed 
railway, new energy, light industry and communication, carry forward strategi c Turkish 
projects like the high -speed railway in the East and West, promote balanced growth of 
bilateral trade, expand cooperation in the emerging fields of spaceflight and finance, 
thus achieving common development and shared prosperity of the two countr ies. 
WT/TPR/S/342  
Summary, page s 12-13, 26  
It is stated in the Secretariat Report that Public ownership remains the mainstay of the Chinese 
economy, while diverse forms of ownership are allowed to develop alongside it. The private sector 
is dominant in ind ustries such as clothing, food, and assembly for export, while sectors of strategic 
importance (energy, utilities, transport, education, and health -care services) remain only partially 
open to private investment. These sectors are often dominated by large SOEs which may be for -
profit entities or public services entities, depending on their activity. During this Review, the 
authorities stated that the Government was in the process of reforming SOEs to further develop 
mixed ownership in China, as required by the Guiding Opinion on Further Deepening the Reform of 
State -Owned Enterprises.  
Could China explain its specific attempts for reforming SOEs?  
Reply:  
At present  positive progress has been made in the reform of state -owned enterprises. 
By the end of 2015, am ong the central companies under SASACs supervision, 90.3% 
were corporate enterprises, out of them, 33,782 were mixed ownership enterprises, 
accounting for 75% of all central corporate enterprises; there were 384 domestically 
and overseas listed companies c ontrolled by central enterprises, and 48.6% of total 
assets, 56.76% of net assets and 59.94% of business revenue and 57.68% of net profit 
of central enterprises lie in listed companies. According to the requirements in the 
Guiding Opinions on Deepening Sta te-owned Enterprise Reform , the first is to carry 
forward the reforms specific to various categories of state -owned enterprise in various WT/TPR/M/3 42/Add.1  
 
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  categories. SOEs are divided into commercial enterprises and public welfare ones mainly 
in light of the strategic posi tioning and development goals of state -owned capital, and 
taking into consideration their different roles, status quos and development needs in the 
socio -economic  development.  The second is to establish the modern enterprise system. 
Promote the corporation  system and joint stock system reforms, improve the corporate 
governance structure and establish classified and tiered management system for the 
SOEs leadership. The third is to improve the state -owned asset management system. 
Push forward the transformati on of the functions of state -owned assets regulators, and 
the proper flow and optimized allocation of state -owned assets by focusing on capital 
management. The fourth is to develop mixed -ownership economy to enhance the state -
owned capital allocation and o peration efficiency, thus realizing mutual 
complementation, mutual promotion and common development of all forms of 
ownership. Encourage non -state -owned capital to facilitate the construction of board of 
directors.  
Summary, p age 13, paragraph 30 
It is stat ed in the Secretariat Report that The Chinese authorities aim to modernize the agricultural 
sector through mechanization and by promoting the development of moderate -scale operations to 
increase productivity, ensure grain self -sufficiency and promote food safety...   
Could China specify the role of foreign trade, land acquisitions and acquisitions of foreign food 
companies, particularly by COFCO, in ensuring grain self -sufficiency and promote food safety in 
China?  
Reply: The Chinese Government will make full  use of the international resources and 
markets to optimize the domestic agricultural structure, alleviate the pressure from 
resources and environment to ensure the long -lasting sustainable development of the 
agriculture in China and national food security  on the basis of ensuring reasonable self -
reliance of food. As a commercial enterprise responsible for its own business operation, 
profits and losses, COFCO formulates its business strategy according to  the market 
conditions and taking into consideration t he government 's policy orientation so as to 
achieve the maximum commercial benefits. Therefore, the acquisition by COFCO of 
overseas land and enterprises is purely commercial operation activities, though it may 
be consistent with the food security policy o f the Chinese Government.  
1.2.4 Balance of payments, page 25, paragraph 1.35 
It is stated in the Secretariat Report that As at early 2016, the RMB is fully convertible for current 
account transactions, and partly convertible for some capital account trans actions . 
Does China have a specific plan for full convertibility of the capital account?  If there exist such a 
plan, could China provide a timeline for the convertibility of the remaining items of the Capital 
Account?  
Reply: The proposition of speeding up the achievement of the RMB convertibility for 
capital account was brought forward at the Third Plenum of the 18th CPC Central 
Committee. On May 5, 2015, the Opinions on Construction of New System for Open 
Economy by the Central Committee of Party and the S tate Council proposed to steadily 
carry forward the RMB internationalization, expand the scope, means and scale of cross -
border use of RMB, and speed up he achievement of the RMB convertibility for capital 
account. And the 13th Five -year Plan proposed to e xpand two -way opening of finanial 
business, achieve the the RMB convertibility for capital account in an orderly manner, 
and promote the RMB for joining the special drawing rights as convertible and freely 
used currency. In recent years, the RMB convertibi lity under the capital account has 
made remarkable progress. Next, China will continue to carry forward steadily the RMB 
convertibility for capital account, whose sequence and rhythm will be determined as 
appropriate without any clear timetable.  WT/TPR/M/3 42/Add.1  
 
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  2.2.2 Trad e and Investment Regime  Trade Policy Framework and Objectives  Trade Policy 
Formulation and Objectives, page 36, paragraph 2.14 
It is stated in the Secretariat Report that China is also promoting its "Going Abroad Policy", as 
outward direct investment is co nsidered a way to promote trade. The Belt and Road Initiative 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 a nd 
Europe. The Chinese Government has also encouraged Chinese companies, including state -owned 
enterprises (SOEs), to invest abroad.  
Could China explain theinvesting abroad process of Chinese companies for the development of 
infrastructure on Silk Road?  
Reply: The Chinese Government supports capable Chinese enterprises to engage in the 
infrastructure development in the countries of Central Asia, West Asia, Middle East and 
Europe along the ancient Silk Road in the forms of direct investment, project contract ion 
and equipment trading, etc. The Chinese enterprises participate in the silk road 
infrastructure development following the commercial principles and international 
practices making decisions independently and are responsible for their own risks, profits 
and losses.  
2.5.1 Regulatory framework and market access page 37, paragraph 2.24 
It is stated in the Secretariat Report that The main laws regulating foreign investment in China are 
the Company Law, last amended in 2013, and the three laws specifically re lated to FDI: the Law 
on Sino -Foreign Equity Joint Ventures, the Law on Sino -Foreign Cooperative Joint Ventures, and 
the Law on Wholly Foreign - Owned Enterprises, as well as their related administrative regulations 
and rules. MOFCOM is revising these three  laws to combine them into one statute, the draft 
Foreign Investment Law.  
Could China provide detailed information about the draft Foreign Investment Law?  Will differential 
treatment of investments  (for example, between a domestic -foreign equity joint vent ure and a 
wholly foreign -owned enterprises)be eliminated by the draft Foreign Investment Law  
Reply: China's  Ministry of Commerce drew up Foreign Investment Law of the People's 
Republic of China  (Draft for Public Opinions)  in January of 2015 to solicit opin ions from 
the public, with the purpose of creating more stable, transparent and predictable legal 
environment for foreign investment. The Chinese party will push the early issuance of 
relevant laws according to domestic legislation procedures in the next s tep, while there 
is no specific validation timetable by now.   
2.5.1 Regulatory framework and market access, page 38, paragraph 2.26 
It is stated in the Secretariat Report that The authorities consider that the revision of the 
Investment Catalogue denotes a n important effort to comprehensively open up the Chinese 
economy to foreign investment. According to the information supplied by the authorities, the 2015 
Catalogue includes a total of 423 entries, 48 less than the 2011 Catalogue. The authorities also 
noted that the number of restricted sectors was reduced from 79 in 2011 to 39 in 2015; while the 
number of encouraged sectors remained mainly unchanged (Box 2.2; Table A2.3; and Table A2.4).  
According to this paragraph, the Investment Catalogue denotes an imp ortant effort to 
comprehensively open up the Chinese economy to foreign investment. Could China explain the 
China's  approach about opening up of the 39 restricted sectors  (as of 2015)?  
Reply: The following principles are followed for the revision of the Fo reign Investment 
Catalogue: The first is to expand opening -up on China's  own initiative and proactively. 
Carry forward further the opening -up of the primary, secondary and tertiary industries 
with the focus on the service industry and common manufacturing.  The second is to 
copy and popularize the trial experience in the free trade test zone. The third is to adjust 
and optimize the economic structure. Encourage the foreign investment in modern 
agriculture, high technology, advanced manufacturing, energy cons ervation and WT/TPR/M/3 42/Add.1  
 
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  environmental protection, new energy and modern service industry and receive the 
high-end industry transfer. Encourage the foreign investment in research and 
development link. In the manufacturing field, the focus is on the relaxation of commo n 
manufacturing by canceling the requirement for proportion of shares in steel and iron, 
ethene, oil refining, paper making, lifting machinery, machineries in cabins of ships, 
transmission and transformation equipment, coal chemical equipment, light helico pterm 
electronic integrated system of automobile and famous -brand alcohol, etc., with the 
nonferrous metal refining, small engineering machineries, common bearing, sensitive 
material and chloromycetin not inclided in the limit. In the service industry, the  focus is 
on the cancellation or relaxaton of the requirement for proportion of shares in 
e-commerce, chained operation, branch railway, subway, light rail, marine transport and 
places for show with direct marketing, mail order, import & export product exa mination 
and certification, goods railway transport, insurance broker, financial company, trust 
company and currency broker not included in the limit and the architectural design and 
retirement home in the encouraged list.  
2.5.1 Regulatory framework and m arket access, page 39, 2.29  
It is stated in the Secretariat Report that A comparison between the 2011 and 2015 Catalogues is 
difficult, as the content of each category is somewhat different and the description/name of some 
activities has been updated to re flect technological changes.  The Investment Catalogue is very 
specific, which makes comparing the two catalogues difficult.  Given the specificity of the type of 
changes, it is difficult to interpret what they mean in terms of market access. Moreover, the 
Chinese authorities have not clarified the policies in place to guide FDI into the "encouraged" 
sectors.  
Could China provide information regarding the Secretariat 's above -mentioned criticism?   
Reply: The 2015 new version of Foreign Investment Catalogue has cut significantly the 
access limit with the focus on further opening -up of the service industry and general 
manufacturing. The number of restricted items has been reduced by 50% and the items 
subject to equity ratio requirement reduced by 40%. This shows China's  determination 
and sincerity in promoting a new round of high -level opening -up. Tarrif exemption 
applies to the imported self -use equipment by encouraged foreign -invested projects 
within the total amount of investment, excluding those listed in the  Catelogue of Non -
duty-exempted Imported Items by Foreign -invested Projects . The encouraged foreign -
invested enterprises in the western regions enjoy a reduced rate of 15% of enterprise 
income tax.  
3.1.5 Trade Policies and Practices by Measure  Measures Direc tly Affecting Imports  Other 
Charges Affecting Imports, page 53, paragraph 3.20 
It is stated in the Secretariat Report that Imports are subject to Value Added Tax (VAT), which is 
collected by Customs on behalf of the State Administration of Taxation (SAT)Do mestically -
produced agricultural products sold directly by the producer continue to be exempted from VAT, 
while imported goods are not.  
Considering the differential treatment between domestic and imported goods in terms of VAT 
exemption, could China evalua te the conformity of this practice to GATT Article III.4?  
Reply:  
China's  relevant import and export policies have never violated the rules of the WTO or 
its commitment upon the WTO accession. China has given very detailed explanation on 
various occasions i ncluding the previous trade policy review to the policy on the 
exemption of VAT for the domestically -produced agricultural products sold directly by 
the producer, our party has, which could be summarized as follows:  
First, China's  agricultural producers ar e in large numbers, small size and dispersed in 
distribution, it is difficult to carry out accounting calculation or tax report, it 's therefore WT/TPR/M/3 42/Add.1  
 
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  infeasible to levy VAT from the perspective of administrative cost. This is the root cause 
for the making of thi s policy.  
Second, agricultural production in China is generally carried out through households as 
the unit. Farmers ' sales are in small size with the exemption of VAT limited only within 
the stage of sales of their self -produced products, which is a total ly different scenario 
from the import of staple products. There is no comparison between the VAT policies in 
these two cases.  
Third, it is understood that other members adopting the VAT system seem to have 
similar policies on the exemption of the agricultu ral producers sales of self -produced 
agricultural products while no exemption of tax applies to the imported agricultural 
products.  
Fourth, even if China levied VAT in this case, it sould, like some other countries, 
implement the higher threshold policy. H ence most of the farmers would remain below 
the threshold, which would be equivalent to the current policies.  
3.1.6 Trade Policies and Practices by Measure  Measures Directly Affecting Imports  
Import Prohibitions, Restrictions and Licensing, page 56, para graphs 3.27 -3.28 
It is stated in the Secretariat Report that Prohibited products are listed in the Catalogue of 
Commodities Subject to Import Prohibitions, issued by MOFCOM and other relevant ministries and 
bodies, such as the GACC and AQSIQ, which dates to 2005. In 2015, China's notification listed 
365 products (HS 8 -digit level) including mainly machinery (Chapter 85) and transport equipment 
(Chapter 87) . 
In addition to the general import prohibitions included in the Catalogue of Commodities Subject to 
Impo rt Prohibitions, other prohibitions apply to imports under processing trade and are listed in 
the Catalogue of Commodities Prohibited under Processing Trade. The 2014 Catalogue included 
486 tariff lines (in HS 2012 at the 8 -digit level) compared to 394 in 2010. The increase in the 
number of tariff lines subject to import prohibition under processing trade is mainly related to tariff 
lines in HS Chapter 72 (iron and steel) . 
Given the fact that imports of certain machinery and transport equipment and some iro n-steel 
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 imposes prohibitions on certain  imported products to safeguard national 
security and public morality; protect human, animal and plant health and protect the 
environment. Details for the Catalogue of Prohibitions on Goods subject to Processing 
Trade could be found in MOFCOM, GAC Announce ment No. 90 of 2014.  
3.1.7 Trade Policies and Practices by Measure  Measures Directly Affecting Imports  Anti-
dumping, Countervailing and Safeguard Measures  Anti-dumping Measures, page 58, 
paragraph 3.40 
It is stated in the Secretariat Report that AD duties  may not exceed the margin of dumping 
established in this determination. Although China's AD regulations do not preclude the imposition 
of a duty lower than the margin of dumping provided it eliminates the injury caused by dumped 
imports, the investigating  authorities do not currently examine if a duty lower than the margin of 
dumping is sufficient to eliminate injury.  
Could China express its position on why the usage oflesser duty rule" is not preferred?  
Reply: The lesser duty rule is not a compulsory obli gation for WTO members. China does 
not have relevant legislation on lesser duty rule now.  WT/TPR/M/3 42/Add.1  
 
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  3.2.3 Trade Policies and Practices by Measure  Measures Directly Affecting Exports  
Export Prohibitions, Restrictions, and Licensing, page 74, paragraph 3.102  
It is sta ted in the Secretariat Report that As in the case of imports, 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 resource s 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.  
Could China exempli fy the cases of export restrictions/prohibitions on the basis of organizing 
export business management"?  
Reply: According to the Foreign Trade Law of the People's Republic of China, the import 
or export of related goods and technology can be restricted or prohibited on the basis of 
the following reasons:  
(I) For safeguarding the national security, social public interests or public 
morality, China needs to limit or prohibit the import or export;  
(II) For protecting people's health or safety, the life or heal th of animals and 
plants, and the environment, China needs to limit or prohibit the import or 
export;  
(III)  For implementing the measures related to the import and export of gold or 
silver, China needs to limit or prohibit the import or export;  
(VI) In ter ms of laws and administrative laws and regulations, the import or 
export of other items that needs to be restricted or forbidden;  
(VII)  According to the regulations of international treaties and agreements 
concluded or acceded to China, the import or expor t of other items that needs 
to be restricted or forbidden.  
The above -mentioned contents reflect the exception of Article 20 of GATT, which is in 
accordance with WTO rules.  
3.2.5. Export finance, insurance, and guarantees, p ages 77-78, paragraph 3.112  
It is stated in the Secretariat Report that ... Eximbank also has special lines of credit and different 
financial instruments for SMEs. The Bank provides two preferential facilities used as Chinese 
government official development aid to developing countries, nam ely: government concessional 
loans and preferential export buyers' credit. Eximbank is the only bank designated by the Chinese 
Government to implement such facilities.  
Could China provide more information and requirements on utilizing preferential faciliti es 
(government concessional loans and preferential export buyers ' credit)  provided by Eximbank to 
developing countries?  Which countries have benefited from these facilities so far?  
Reply: China's  foreign aid preferential loans and preferential export buyer s credit are 
the concessional assistance loans to the governments of other developing countries 
provided by the Chinese government, the two preferential loans for short. China Exim 
bank is the only undertaker of the two preferential loans designated by the  Chinese 
government. The preferential loans provided by the Exim bank  to other developing 
countries falls into inter -governmental cooperation in the scope of South -South 
Cooperation targeted, which is mutually beneficial aimed at common development. By 
far, developing countries have been the beneficiaries of these credits.  WT/TPR/M/3 42/Add.1  
 
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  3.3.1 -Incentives, page 80, paragraph 3.123  
It is stated in the Secretariat Report that Agriculture continues to be supported to guarantee 
farmers' income, protect the sector, develop rura l areas, and ensure food security (Section 4). 
According to the authorities, China is in the process of "improving" its agricultural subsidy policy.  
Could China clarify the meaning of the termimprovement in the context of agricultural subsidies?  
What are t he main elements of this improvement, especially in relation to types of subsidy 
measures specified in the WTO AoA?  
Reply: China has all along been improving its agricultural subsidy policy, including 
specifically: put an end to the temporary collection an d storage of cotton and soybean 
and implement the target price subsidy; put an end to the temporary collection and 
storage of corn and provide direct subsidies to corn growers; combine subsidy for 
superior varieties, direct subsidy for farmers and comprehe nsive direct subsidy for 
means of production into the agriculture support and protection subsidy. The target 
price subsidy belongs to amber -box subsidy, while the subsidy for corn growers, due to 
the link with the production limit plan, falls within blue -box subsidy; and the agriculture 
support and protection subsidy belong to green -box subsidy decoupled with production.  
3.3.1 Trade Policies and Practices by Measure -Measures Affecting Production and Trade  
Incentives, page 80, paragraph 3.124  
It is stated in  the Secretariat Report that As stated at the time of the last Review in 2014, in 
addition to the programmes notified by China, there are other support programmes and other 
means to support different industries. However, no information was provided in the context of this 
Review regarding these specific programmes or China's industrial policies. The identification of 
these programmes remains difficult, as there is no information published in English and no 
itemized central budget (to help identify outlays) w as provided for the Review.  
Could China make an explanation about such unconformity with Article 25 and 32 of SCM 
Agreement concerning the notification requirements in terms ofother specific support 
programmes"?  
Reply: China does not agree to the point of there are other support programs and other 
means  to support different industries and not able to provide the Secretariat with 
industrial subsidy  information for this review period in the Report by the Secretariat for 
this review . China noted that the wordi ng in paragraph 3.124 comes from 
paragraph  3.125 of the 2014 China TPR Report by the Secretariat . At that time, China 
had not submitted the most recent notification on subsidies. However, in 2015, China 
already  submitted its notification on subsid ies at central government level for 2009 -
2014, and before the review meeting, its  first notification on subsidies at sub -central 
government level , covering 14 years from 20 01 to 2014. These notifications contain  the 
subsidy policies that are required to be notif ied to the  WTO, according to  China's  
understanding of the relevant definitions and rules requirements  of the SCM Agreement. 
Its a pity that  the relevant paragraphs of Secretariat's Report failed to be updated in the 
light of  the above -mentioned important latest developments . 
Does China consider publishing information in English in order to improve transparency of its 
policies?  
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  
Governing Foreign -related Matters . On February 24 2 003, the General Office of the State 
Council issued the  Notice on the Examination and Approval of Official English Translation 
of Regulations  (Guo Ban Fa  [2013] No.  10), requiring the drafting departments of 
regulations be responsible for translating the r egulations they draft and submitting the 
translated versions to the Legislative Affairs Office of the State Council for review. The WT/TPR/M/3 42/Add.1  
 
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  translations will be made public as the official translated versions upon the examination 
and approval of the Legislative Af fairs Office of the State Council.  
3) On March 23 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 shoul d 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.  
3.3.1 . Incentives, page 80, paragraph 3.125  
It is stated in the Secretariat Report that General policies, as well as industries and activities 
identified as priorities, are outlined in the Central Government Five -Year Plans. For instance, the 
12th Five -Year Plan (201 1-2015) called for the transformation and upgrading of key existing 
industries  to increase the competitiveness of China's industrial core, and for the development of 
strategic emerging industries (SEIs).  Also the footnote number 146 to paragraph 3.125 
enum erates the key industries which include iron and steel.  
Given the excess capacity in the global steel sector, what does China's  transformation and 
upgrading plan in the steel sector include?  
Reply: Document Guo  Fa [2016] No.  6 specifies the tasks of promot ing intelligent 
manufacturing, improving quality brands, developing high -end varieties, spuring green 
development and expanding market consumption, to drive the transformation and 
upgrading of steel and iron industry.  
3.3.1 . Incentives, page s 82-83, 3.128  
It is stated in the Secretariat Report that Nonetheless, the policy of supporting specific industries 
seems to remain in place. For instance, the energy sector receives support to develop particular 
alternative energy sources (e.g. natural gas, wind power,  solar power, geothermal power and 
nuclear power). To this end, in 2014, the State Council issued an Action Plan on the Energy 
Development Strategy (2014 -2020) to improve the policies regulating the energy sector, support 
scientific research in the field, promote the use of renewable energy, and encourage financial 
institutions to support projects related to the production and use of clean energy In addition, in 
2015, the Ministry of Finance (MOF) circulated the Interim Measures on the Administration of the  
Renewable Energy Development Special Fund, which aim at supporting the production and use of 
renewable energy and "new" energy. There are no details with respect to the types of energy to be 
supported or how the Fund will be managed. An additional Energy Saving and Emission Reduction 
Fund was established by the MOF in 2015 to provide incentives for the development of 
technologies that save energy and reduce emissions. The CPC Recommendations on Developing 
the 13th Five Year Plan also mention "new" energy" as one of the areas that will get government 
support with the aim of replacing traditional energy and improving the environment.  
Could China provide detailed information about the Renewable Energy Development Special Fund 
and Energy Saving and Emission Re duction Fund?  
Reply: The Renewable Energy Development Special Fund and Special fund for energy 
conservation and emission reduction are designed for energy conservation and emission 
reduction. In order to standardize  the fund management, the Ministry of Fin ance 
formulated in 2015 the fund management measures  and made it publically available . In 
2016, the renewable energy development special fund focused its support on the 
development and use of the coalbed methane and shale gas as well as the efficiency and 
capcity increase modification of water and power facilities in rural areas, and the special 
fund for energy conservation and emission reduction focused its support on the 
popularization and application of new -energy vehicles, urban comprehensive 
demonstrat ion of energy conservation and emission reduction and the upgrading of 
product oil, the relevant information has also been  released.  WT/TPR/M/3 42/Add.1  
 
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  4.2.3.1 Hospital and medical services, page 138, paragraph 4.87 
It is stated in the Secretariat Report that The 2015 Foreig n Investment Catalogue classifies 
medical institutions in the restricted category. In addition, articles 8 and 17 of the Interim 
Measures for the Administration of Sino -Foreign Equity/Cooperative Joint Venture Medical 
Institutions, require that the establi shment of a Sino -foreign equity/cooperative joint venture 
medical institution comply with the following conditions: a) it must be an independent legal 
person; b) total investment must be at least RMB 20 million; c) the proportion of shares or equity 
of the  Chinese party must be at least 30%; and d) foreign institutions cannot establish branches.  
Could China provide detailed information concerning the conditions for opening a 
representative/liaison office in China in sectors which are restricted to foreign investors, such as 
health services and audiovisual services?  
Reply:  
The State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) 
regulates the establishment of the Radio and Television offices by overseas institutions 
in China accor ding to Regulations on Management of Overseas Institutions 
Establishment of Radio and Television Broadcast Office in China (No. 28 Order of the 
SAPPRFT, June 18, 2004).  
The Regulations made clear that the state implements licensing regime for the 
establish ment of the radio and television offices by overseas institutions in China. Radio 
and television offices are not allowed to be established in China unless permitted by 
SAPPRFT.  
The Regulations explicitly provide for the qualifications of applicant overseas  
institutions for the establishment of the radio and television offices in China, written 
materials to be submitted and the qualifications required of chief representatives or 
representatives of such offices in China. This document can be retrieved via the  
following website: http://www.sarft.gov.cn/art/2004/8/2/art_1583_26286.html   
If the establishment of the radio and television offices in China is approved, the chief 
representative o f the office shall claim the approval documents from SAPPRFT, and 
handle the relevant formalities on registration with industry and commerce authorities 
and public security departments with such materials as the approval documents, before 
starting business  operations. The valid period for the approval document is three years. 
In the event of extension upon expiration, an application is required to be submitted to 
SAPPRFT for extension 30 days before the expiration.  
Other Questions  
1. Could you provide detai led information about halal certification activities in China?  
Reply: We are still coordinating with related authorities for the reply.  
2. Could you explain what kind of office/branch offices could be opened in China as an 
International Conformity Assessme nt Service Inc.?  
Reply: China's  Commitment upon WTO Accession specifies that representative offices of 
foreign enterprises are allowed to be established, which cannot engage in any profit -
making activities, excluding those in the specific commitment of the  authorities under 
the CPC861 \862\863\865. Regarding the establishment of branches, China points out 
explicitly in its WTO commitments that it makes no commitment on the establishment of 
branches by foreign enterprises in China, unless otherwise specified in specific 
sub-sectors. The establishment of representative offices by the international conformity 
assessment service companies must observe the laws and regulations of China. They are 
not allowed to engage in the profit -making activities but can establi sh representative 
agencies engaging in publicity and popularization within their business scope in China.  WT/TPR/M/3 42/Add.1  
 
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  3. Could you explain if there are preferential treatment among regions with regard to opening up 
of offices/branches in terms of cost and regulations?  
Reply: Unable to verify.  
4. Could you explain the conditions regarding the employment of Turkish experts and Chinese staff 
in a conformity assessment company?  
Reply: Regarding the detailed requirements for the entry and stay of Turkish experts, 
please ref er to Schedule of Specific Commitments on Services of China  on horizontal 
commitments in Mode 4. And for the specific requirements for the employment of 
Turkish experts in China, please refer to  Regulations on Management of Foreigners 
Employment in China . WT/TPR/M/3 42/Add.1  
 
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  46  UKRAINE  
WT/TPR/S/342  
1 ECONOMIC ENVIRONMENT  
1.2 Fiscal Policy and Structural Reform  
1.2.3 Monetary and exchange rate policy  
1.2.3.2 Exchange rate policy  
Paragraph 1.29, Page 23  
The report mentions that «China has continued to maintain a managed float ing exchange rate 
regime, which takes a basket of currencies as reference. Since 2013, the PBOC has pushed 
forward reform to let the market play a more decisive role in exchange rate formation. The floating 
range of the RMB exchange rate has gradually been  expanded, and the flexibility of the RMB 
exchange rate has increased.  
Question : What is exchange rate intervention strategy? What are mid -term and short -term 
benchmarks for exchange rate? How are they determined (including analytical tools)? What factors 
are taken into account?   
Reply: China implements a managed floating exchange rate regime, which is based on 
market demand and supply and takes a basket of currencies as reference. The exchange 
rate of RMB is determined by the market, which mainly reflects the relationship between 
the market demand and supply, and is regulated based on the reference to a basket of 
currencies. T he PBOC has gradually stopped the normal exchange rate intervention, and 
only intervenes under three circumstances including relative ly big fluctuation in 
exchange rate, relatively sharp imbalance in the capital account or big turbulence in the 
financial market, in an effort to maintain the stability of the macro economy and finance. 
The PBOC will not set any mid -term and short -term ben chmark for exchange rate.  
2 TRADE AND INVESTMENT REGIME  
2.2 Trade Policy Framework and Objectives  
2.2.2 Trade policy formulation and objectives  
Paragraph 2.14, Page 35  
The report notes that «The Belt and Road Initiative aims at, inter alia, promoting c onnectivity 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: How do you assess the possibility of the new Silk Road to run through the  Ukrainian 
territory and the Black Sea?  
Reply: China has proposed the initiative of jointly establish the Silk Road economic belt 
and the 21st century Maritime Silk Road, which is called "The Belt and Road Initiative", 
but not the "new Silk Road" which is  referred to in Ukraine's question. "The Belt and 
Road Initiative" is an important cooperation initiative proposed by General Secretary 
Xi Jinping, it is a Chinese plan to promote global development and cooperation. "The 
Belt and Road Initiative" is not is olated, but open and inclusive. It will not limit other 
countries' participation by ideology, political system, development path or development 
model, and any country, region or international organization that is willing to take part 
in the initiative, whe ther inside or outside the area, could join the initiative, and 
promote win -win cooperation and common development through deepening 
comprehensive and pragmatic cooperation.  
Ukraine is at the crucial juncture of the Eurasia continent, boasting rich natural  
resources, solid foundation of industrial and agricultural production, and huge potential 
in the development of high -technology. It is an important country along the "Silk Road 
Economic Belt". China and Ukraine have maintained a profound friendship for a long 
time, the two countries share strong complementarities and a solid foundation for 
cooperation and China is Ukraine's second largest trading partner. Ukraine has WT/TPR/M/3 42/Add.1  
 
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  expressed its active support for China's "Belt and Road Initiative". The joint effort to 
establish "The Belt and Road Initiative" will promote the rapid development of the 
bilateral economic and trading partnership, and deliver benefits to the two people.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.8 S tandards and other technical requirements  
3.1.8.1 Standards and technical regulations  
Paragraph 3.61, Page 63  
The report notes that The Standardization Administration of China (SAC), under the General 
Administration of Quality Supervision, Inspection, a nd Quarantine (AQSIQ), centralizes the 
administration of the standardization system in China. In general terms, the SAC is in charge of 
the overall coordination and unified management of China's national standardization system, as 
well as of the developmen t of national policies and strategies with respect to standardization. The 
SAC is also in charge of approving, numbering and issuing national standards, both voluntary and 
"mandatory" standards (as technical regulations are referred to in China). The SAC i s assisted in 
its functions and activities by the National Development and Reform Commission (NDRC), the 
State Food and Drug Administration, the China Association of Standards (CAS), a number of 
ministries, and local and industry standardization associatio ns. The CAS and some non -
governmental organizations affiliated to AQSIQ, such as the China National Institute of 
Standardization (CNIS) support SAC and other institutions in the development of standards 
through research and international cooperation, to pr omote the use of best international practices 
in the development of China's standards. The CAS also disseminates the proper use and 
application of standards.  
Paragraph 3.64, Page 63  
The report states that The Standardization Law (1988) and the Regulations  for the Implementation 
of the Standardization Law (1990) continue to constitute the main legislation with respect to 
standards in China. Other pieces of legislation have, however, an impact on standards and 
technical regulations. The revised Regulations o n the Supervision and Administration of Medical 
Devices (State Council Decree No. 650), which came into force on 1 June 2014, introduced a 
number of changes in this area, mainly aimed at increasing supervision and safety. These 
included: the revision of th e definition of and classification rules for medical devices and 
improvements to the approval or filing system for product registration and production, which now 
allows product registration to take place before a production licence has been granted. Also, the 
record -filing of first class medical devices can now be done at the local or city -level food and drug 
regulators, instead of at the provincial level, as was previously the case; this is meant to facilitate 
procedures. The revised regulations have also strengthened supervision and administration of the 
use of medical devices, calling for the introduction of systems such as medical -device -related 
adverse event monitoring, traceability, and recall, and imposing greater penalties for illegal acts.  
Questions :  
– Could China elaborate on the number of employees, structure, form of ownership, 
financing and income sources of the National Standardization Body (hereinafter – 
the NSB)?  
Reply: The SAC currently has 92 employees, 7 departments and 26 divisions. The SAC is 
a competent body to implement the function of administrative management, and central 
management of the national standardization work authorized by the State Council. All 
the funding comes from the central fiscal revenue.  
– Which activities does NSB carry out besides standardization?   
Reply: The SAC carries out no other activity besides nationwide standardization 
management.  
– What is the procedure for preparation and sales of standards?   WT/TPR/M/3 42/Add.1  
 
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  The procedures to formulate national standards: The national s tandards are formulated 
by the relevant competent administrative standardization authorities of the State 
Council. The formulation process has  nine steps: a pre -research stage, project initiation, 
drafting of the proposed standard, opinion solicitation, ex amination of the technical 
contents, approval, publication, review and abolishment, which is in line with the 
formulation process of the ISO standard. After implementing for five years, the national 
standards will be reviewed, and they may also be amended or abolished according to 
needs. The specific procedures of formulating national standards are stipulated in the 
Measures on Administration of  National Standards.  
Industry standards are formulated by the competent administrative authorities of the 
State Co uncil. National standards are published by the Standard Press of China, and 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 Administrative Measures 
on Local Standards. The formulation procedures for enterprise standards are determined 
by the enterprises themselves.  
The standard publishing authorities of China is in charg e of the sales of the national 
standards.  
– How does the NSB 's interact with institutions of higher learning?  
Reply: During the World Standard Day in 2015, the SAC has signed a strategic 
cooperation framework agreement with Tsinghua University, in order t o strengthen 
cooperation in education, training and scientific research. Tsinghua University takes the 
lead in offering standardization program under MEM, and the first batch of students will 
be enrolled from September 2016. At present, the SAC is making v igorous efforts to 
strive for more courses, programs, and majors in standardization.  
– What is  the system for training and retraining of specialists in the field of 
standardization?  
Reply: The SAC has launched multi -level professional training of standard ization for 
standardization system organizations, in an effort to build a team of high -quality 
professionals. First, strengthening the training on the technical committee. From 2013 
to 2014, 3 sessions of nine training courses relating to nearly 300 techni cal committees 
were organized. Second, strengthening the international standardization training. The 
SAC has signed the memorandum of cooperation and jointly launched several sessions 
of training courses with the ISO. It has jointly launched several sessio ns of training 
courses with the European Union, organized the international standardization 
comprehensive training courses for various industries and regions, cooperated with 
Beijing University of Science and Technology and other universities in holding En glish 
training courses for international standardization. Third, strengthening professional 
training of standardization. A number of special training courses were held concerning 
the agricultural standardization demonstration area development, important na tional 
standards of bus safety, energy consumption quotas of major industries, safety of 
children's toys, fireworks and firecrackers, as well as the establishment of service 
standards system and the formulation of standards. Fourth, strengthening local 
standardization training, and strengthening the guidance of standardization in various 
regions.  
– What are the methods of translation of standards into Chinese language?   
Reply: This question is not clear to us yet. Please further clarify it.  
– What functions  does the National Electrotechnical Committee performe?  
Reply: At present, there is no National Technical Committee for Standardization of 
Electrotechnical Technology in China. Instead, China has established 30 -plus National 
Technical Committees for Standa rdization of the electrician field for the relevant IEC WT/TPR/M/3 42/Add.1  
 
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  technologies. These National Technical Committees for Standardization are mainly 
responsible for such standardization work as drafting and technical review of national 
standards in relevant technologi cal fields.  
– What is the legislation on the basis of which standardization in China is carried out?  
Reply: The legislative basis of the standardi zation in China : Adhering to the reform 
orientation, and setting the reform measures speculated in the Reform  Plan and the 
practices that have been proven effective in the legislation. Adhering to the problem -
oriented approach and making amendments in the draft on the outstanding problems in 
the standardization work and contents in the current laws that are obvio usly not in line 
with or comply with the requirements of the current development. Adhering to 
streamlining administration and delegating power, clarifying the relationship between 
government and market, giving full play to the role of the market in the sta ndardization 
formulation and implementation, strengthening government's interim and post 
supervision, and letting the government and market jointly promote the standardization.  
– What is the structure of regulatory framework in the field of standardization ?  
Reply: The regulatory  structure of China's standardization: In accordance with the 
current Standardization Law, the standardization work in China adopts the regulatory 
system featuring "unified management, division of responsibilities." AQSIQ of China a nd 
SAC are authorized by the State Council to manage the national standardization work, 
the relevant administrative departments of the State Council manage the 
standardization work of their respective departments and industries, and the 
administrative depa rtments of the people's governments at the provincial level are in 
charge of the unified management of standardization work of their respective 
administrative regions.  
– What is the procedure for electronic sales of standards?   
Reply: Recommended national standards and industry standards are sold on China 
Standards Online Service Network ( www.spc.org.cn  ), which can be read, downloaded 
and printed.  
Process: Logging in the official website - registration - searching for the standards needed - adding 
to shopping cart - submitting orders - payment - downloading the standards and their plug -ins. 
– What is the procedure for control of copyright in the field of standardization?  
Reply: The current Copyright Law of China does n ot explicitly regulate the copyright of 
the standard works, so there is no explicit copyright control process in the field of 
standardization.  
– What are methods of controlling the unauthorized copying of standards?  
Reply: Unauthorized copying of standard s protected by the Copyright Law shall be held 
liable for infringement in accordance with the laws of China.  
– Does China have any plans for improving functioning of the NSB in Chinese?  
Reply: This question is not that clear to us. Please further clarify it.  
– Could China elaborate on its experience related to ensuring loss -free functioning of the 
NSB (experience of China)?  
Reply: Please further clarify the meaning of loss -free.  
– What are the documents that regulate activities of standardization technic al committees 
in China?   WT/TPR/M/3 42/Add.1  
 
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  Reply: Currently, China regulates the activities of standardization technical committees 
in accordance with the Administration Provisions on National Professional 
Standardization Technology Committee.  
– Does system of fundamental standards exist in China (main provisions in case of 
existence of such a system)?   
Reply: This question is not that clear to us. Please further clarify it.  
– Could China elaborate on the implementation of international and regional cooperation: 
quantitati ve and qualitative composition of International Standardization Technical 
Committee conducted by Sweden; financing of participation of Swedish representatives in 
general assemblies, governing bodies meetings, etc. of international organizations in 
standard ization; procedure of paying annual fees to budgets of international 
organizations member of which is China?  
Reply: Currently, China is responsible for 71 secretariats of ISO technical committee or 
sub-technical committee; 8 secretariats of IEC technical committee or sub -technical 
committee. On behalf of China, related personnel from Standardization Administration of 
the People's Republic of China (SAC) and  Certification and Accreditation Administration 
of the People 's Republic of China (CNCA) attend the I SO/IEC Conference and meetings 
of governing institutions. Related expenses should be paid by SAC and CNCA 
respectively. The Standardization Administration of the People's Republic of China 
declares budget to its superior departments in charge based on the total amount of 
ISO/IEC membership fee and an increase of 5% from the previous year. Upon receiving 
the invoice of the membership fee from ISO/IEC, SAC will pay for it in accordance with 
Measures for the Payment of Membership Fees laid out by ISO/IEC.  
– What forms of encouragement (including economic) of companies are available for 
participation in  standardization works?  
Reply: The China Standards Innovation and Contribution Award was created by AQSIQ 
and SAC in September, 2006 to encourage innovation and  mobilize standardization 
organizations and workers so as to promote the healthy development of China 's 
standardization. In 2012, another two awards were set up, namely Leadership Award 
and Individual Award. In accordance with the Administrative Regulation s for China 
Standards Innovation and Contribution Award, a legal entity incorporate and other 
social organizations within the territory of the People's Republic of China that mainly 
shoulders the responsibility of drawing up the standards as well can apply  for China 
Standards Innovation and Contribution Award.  
It's known that some local governments will provide financial incentives of different 
amounts to enterprises participating in standardization work.  
Paragraph 3.66, Page 64  
The report mentions that « Industry/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 esta blishing 
industry/sectoral standard development plans and approving the corresponding standards. Most 
national and industry/sectoral standards are filed and stored at the National Library of Standards, 
but this is not mandatory. Local standards are formula ted by the standardization authorities of 
provinces, autonomous regions and municipalities directly under the Central Government in 
accordance with the Administrative Measures on Local Standards. Industry/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.  
Questions:   
How does China ensure effective functioning of standardization technical committees  WT/TPR/M/3 42/Add.1  
 
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  a) Reply: To ensure t he effective operation of standardization technical committees, 
China shall: first, concentrate on building institutions and improve the management 
system; second, choosing the qualified institutions to undertake the relevant work of 
standardization techni cal committees; third, strengthen the assessment and 
examination of the daily operations of technical committees.  
Could  China  clarify  the process  of development  and submission  for approval  of business  plans  of 
standardization  technical  committees ?  
b) Reply: Before deciding to establish standardization technical committees in a certain 
field, SAC requires relevant departments to submit establishment applications, identify 
standard systems and lay out working plans. Only after expert review, disclosure and 
establishment preparation can the establishment of standardization technical 
committees be approved.  
Have standardization  technical  committees  have a status  of legal entities ?  
c) Reply: Technical committees are unincorporated bodies.  
How is financing  of standard ization  technical  committees  carried  out?  
d) Reply: There are four sources of the funding of technical committees: first, financial 
subsidies; second, membership fees of committee members; third, sponsorship from 
enterprises or other organizations to standar dization work; fourth, financial subsidies 
from the department where the Secretariat is located.  
3.1.9 Sanitary and phytosanitary requirements  
Paragraph 3.81, Page 68  
The report states that The 2015 Food Safety Law aims at strengthening the domestic food  safety 
management system. It imposes greater responsibility for food safety on food producers and 
traders, and on local governments; and at the same time imposes severe punishments to those 
that violate the Law. Some of the main amendments introduced by t he Food Safety Law in 2015 
are as follows . 
Question: Is the new Law on Food Safety influenced on the exports from third countries? If yes – 
please explain how.  
Reply: The formulation of the new Law on Food Safety has considered the impact on 
trade and com plies with relevant regulations of the WTO.  
Paragraph 3.83, Page 69  
The report mentions that  «The Ministry of Health and the National Population and Family Planning 
Commission were replaced by the newly established National Health and Family Planning 
Commission, which took over the Ministry's functions regarding the formulation of food safety 
standards and food safety risk assessment. At the same time, the Office of Food Safety 
Commission of the State Council, the State Food and Drug Administration (SFDA) , and the 
functions of the State Administration for Industry and Commerce (SAIC) regarding SPS measures, 
were merged, to create the China Food and Drug Administration (Table 3.9). The authorities noted 
that the new entity took over the functions of the ins titutions that it absorbed with regard to SPS 
policies»  
Ukraine' s question: What agency is responsible for export -import certificate negotiation on food of 
animal and non -animal origin?  
Reply: Negotiations in this field involve Ministry of Agriculture, M inistry of Commerce, 
AQSIQ and General Administration of Food and Drug. We need to identify the 
department in charge based on the specific service content.  WT/TPR/M/3 42/Add.1  
 
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  Paragraph 3.87, Page 70  
The report states that  The 2015 Food Safety Law indicates that imported (a nd exported) food must 
be subject to the supervision and administration of state entry -exit inspection and quarantine 
authorities both at the central and sub -central level. In general, imported food, food additives and 
other food -related products must meet  China's national food safety standards; however, if these 
standards do not exist, the health administrative department of the National Health and Family 
Planning Commission may, on a temporary basis, apply the standards of a relevant country (or 
region) o r an international standard. Importers (of food, food additives and food -related products) 
must establish a "review system" for overseas exporters and/or overseas producers. If the 
imported food fails to meet China's national food safety standards, or may harm human health as 
proved by "evidence", the importer concerned will be prohibited from continuing to import the 
product and all imports of the concerned products must be recalled»   
Question:  Please provide the link with the existing China's national foo d safety standards for 
consideration.  
Reply: Based on the provisions of Food Safety Law, national food safety standards shall 
be developed and amended according to the food safety risk assessment results and the 
risk assessment results of edible farm prod uce by fully considering China 's need of 
social economic development level and the objective needs and referring to relevant 
international standards and international food safety risk assessment results. The 
development principle, scientific evidence and f ramework system of China 's national 
food safety standards are generally consistent with the international standards.   
Paragraph 3.89, Page 71  
The report notes that «In 2012, Members raised concerns regarding the registration requirements 
for foreign compa nies importing food into China. This issue has been reiterated on several 
occasions. At the time of the last Review, the authorities indicated that these measures were 
based on WTO rules. As a result of the 2015 Food Safety Law, the requirements for foreig n 
companies importing food into China have changed. Exporters or agents (foreign enterprises) that 
export food into China and importers (Chinese enterprises) that import food must apply to the 
state entry -exit inspection and quarantine authority (through r ecord -filing). Overseas enterprises 
that produce food and/or export food into China must be registered by the state entry -exit 
inspection and quarantine authority. To apply for registration, enterprises must be recommended 
to the CNCA via a competent autho rity of the countries (regions) where such enterprises are 
located or in other "prescribed manner". If a registered overseas food production enterprise has 
provided false material or if the imported food has been the object of a major food safety issue, 
the state entry -exit inspection and quarantine authority will cancel the registration of the 
enterprise and make a public announcement  
Ukraine' s question: Please provide the list of products that subject to registration for foreign 
companies importing food i nto China.   
Reply: According to AQSIQ 's Notice on Updating Implementation Directory of 
Enterprises Registration concerning Imported Food Produced Abroad （[2015] No.  152）, 
the foreign enterprises producing four kinds of food, including meat, aquatic products, 
dairy products and bird 's nest, can export their products to China only after registration 
in accordance with the law.  
Paragraph 3.90, Page 71  
The re port notes that  «Foreign enterprises that manufacture, import, process and store food must 
be registered with the CNCA before their food products are imported into China. In addition, the 
2015 Food Safety Law in its Articles 74 -83 stipulates special regula tions for certain food or food -
related products (e.g. supplements, "formula food for special medicinal purposes"; and infant and 
follow -up formula and other special foods), which are subject to strict supervision and 
administration. Enterprises producing t hese products must fulfil special registration and/or record -
filing formalities, establish a production quality management system, and submit a "self -WT/TPR/M/3 42/Add.1  
 
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  inspection" report to the food and drug administration of the local government. Registration and 
record -filing formalities vary according to the product»  
Question:  Please provide the list of products that subject to registration by CNCA for foreign 
companies importing food into China.  
Reply: According to AQSIQ 's Notice on Updating Implementation Directory of  
Enterprises Registration concerning Imported Food Produced Abroad （[2015] No.  152), 
the foreign enterprises producing four kinds of food, including meat, aquatic products, 
dairy products and bird 's nest, can export their products to China only after regist ration 
in accordance with the law.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.3 Policy instruments  
4.1.3.1 Border measures  
4.1.3.1.1 Measures affecting imports  
Paragraph 4.9, Page 117  
The report states that "some products subject to TRQs (i.e. gra ins, cotton, sugar, and chemical 
fertilizers) are also subject to state trading. In these cases, part of the quota is allocated to state -
trading enterprises and another part to other enterprises ".  
Ukraine' s question: Could China kindly provide the informa tion about the distribution of quotas for 
import of cereals to the People's Republic of China (wheat, corn) among the state -owned and 
non-state enterprises during the period of 2013 -2016?  
Reply: Since China 's entry into the WTO, China has been issuing tar iff quotas in line with 
our commitments. According to the commitments, the final limit of the tariff quota for 
wheat is 9.636  million tons, with the proportion of state -owned trade of 90%; the liit of 
corn is 7.20 million tons, with state -owned trade reach ing 60%. In 2013 -2016, the tariff 
quotas assigned to the state -owned trade enterprises and non -state -owned trading 
enterprises are in line with the above commitments. When issuing tariff quotas, the 
ownership of the enterprise is not a factor that competen t departments will consider.  
WT/TPR/G/342  
2 ECONOMIC AND TRADE ENVIRONMENT AND MACROECONOMIC POLICY DIRECTION  
2.2 MACROECONOMIC POLICY  
2.2.2 Fiscal policy  
Paragraph 2.11, Page 6  
The report mentions that «the central government "expanded the scope of st ructural tax 
reductions, cut fees across the board, comprehensively popularized the pilots in collecting value 
added tax (VAT) instead of business tax, and widened the scope of preferential taxation policy for 
small and micro enterprises  
Ukraine`s question s: Could China kindly clarify what taxes and fees across the board were reduced 
or cut and to what extent? What preferences in taxation have small and micro enterprises and 
under what conditions? Which other activities are involved in the scope of preferen tial taxation 
policy and what does such policy provide?  
Reply: From Nov. 11, 2011 to Dec. 31, 2017, the loan contracts signed between financial 
institutions and small and micro enterprises are exempt from the stamp tax. The 
identification of small and micr o enterprises will be implemented according to relevant 
regulations in the Notice on Issuing Regulations on Sizing Standard for SMEs Issued by 
the Ministry of Industry and Information Technology, the National Bureau of Statistics, 
the National Development and Reform Commission and Ministry of Finance (Gong Xin Bu 
Lian [2011] No. 300).  WT/TPR/M/3 42/Add.1  
 
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  2.2.3 Monetary policy  
Paragraph 2.13, Page 6  
The report notes that In 2014, the People's Bank of China employed comprehensively multiple 
instruments such as open market oper ation, medium -term lending facility, and the universal cut of 
deposit reserve ratio to reasonably adjust the liquidity in the banking system. It cut RMB loan and 
deposit base rates five times, guided the reduction of reverse repo rates in open market nine 
times, and implemented targeted RRR cut. Monetary loan and public financing have grown 
steadily, loan structure continued to improve and the problem of high financing costs of 
enterprises alleviated to a certain extent.  
Question:  What are the goals, opera tional targets of medium -term lending facility? How are they 
determined (including analytical tools)? What factors are taken into account?  
Reply: The People 's Bank of China created the Short -term Liquidity Operation (SLO) in 
January,  2013. Through appropr iately using this tool, the People's Bank of China can 
stabilize market volatility when the market loses balance between short -term capital 
supply and demand, leading to greater volatility of interest rates in currency market in 
the intervals of open marke t normal operation twice a week (on Tuesday and Thursday). 
From 2013 to 2015, a total amount of 2.3 trillion RMB of SLO liquidity input operations 
and 350 million RMB liquidity return operations have been made.  On the other hand, the 
People's Bank of China  established the open market daily operation normalization 
mechanism on February 18, 2016, adjusting the mechanism of two operations a week to 
carrying out operations every workday. Normal operations can timely hedge liquidity 
disturbance factors and impro ve the degree of precision of liquidity management. As the 
expectation of financial institutions is stable and currency market interest rates are 
relatively stable, the necessity of using SLO tools will also decrease.  
Question:  What is the path of targeted  cut of reserve requirement ratio (RRR)? How were targets 
of RRR cut determined? What factors are taken into account?  
Reply: The main purpose of deposit reserve policy is to adjust the total amount for the 
liquidity in the banking system.  
3 TRADE AND INVE STMENT DEVELOPMENT AND RELATED POLICIES  
3.2 PROMOTING FOREIGN TRADE INNOVATION AND DEVELOPMENT  
3.2.1 Implementing proactive import policy  
Paragraph 3.17, Page 18  
The report mentions that The Chinese government has continued to integrate import with dom estic 
demand expansion, improve import promotion policies, broaden import channels, and optimize the 
structure of trade revenue and expenditure.  
Question : Which import promotion policies have been carried out? Did they meet your 
expectations? What was the effect of these policies on the balance of payments?  
Reply: The activities organized by China Council for the Promotion of International Trade 
(CCPIT) to promote import include holding special import exhibitions and trade fairs to 
strengthen the publicity  of import policies; researching and developing exhibitions and 
holding forums during the exhibition period to strengthen the publicity of import policies 
and organize enterprises to participate in the exhibitions organized by developing 
countries and emer ging markets. The public service platforms for promoting import and 
export under the CCPIT include the CCPIT small and medium foreign trade enterprises 
import and export service platform, which mainly provides services include supply and 
demand information  and commercial matches, foreign trade orders follow -up, import 
and export procedure management and domestic and foreign market access 
consultation and management.  WT/TPR/M/3 42/Add.1  
 
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  47  UNITED STATES  
WT/TPR/S/342  
SUMMARY  
Page 8,  paragraph 2: The Secretariat 's report explains that "[t]he authorities have recently 
taken steps aimed at dealing with overcapacity in certain industries. Measures were introduced to 
discourage or reduce production in industries such as iron and steel, electrolytic aluminum, 
cement, plate glass and ves sels. Local authorities and central departments are not allowed to 
approve any new capacity -expanding projects in these areas. " 
a. In 2016, China 's State Council issued recent opinions providing guidance for structural reforms 
to address excess capacity in th e steel and coal sectors (February 1, 2016 Guo Fa [2016] No. 6) 
and the non -ferrous sector, including aluminum (June 16, 2016, Guo Ban Fa [2016] No.  42). The 
United States notes that China has issued numerous measures since 2005 to rein in excess 
capacity in the steel sector.  And yet, capacity continued to rise steadily.  Is China pursuing new 
approaches in the State Council measures on overcapacity issued this year, given that the 
previous measures do not seem to have been successful?  Please explain.   
Reply : For steel, the Opinions of the State Council on Reducing Excess Capacity in the 
Steel Industry to Achieve Development by Solving the Difficulties (Guo Fa [2016] No. 6) 
requires that the market should serve as a check, the role of enterprises as the major  
actors be brought into full play, and efforts be made to ensure the exit of steel capacity 
that cannot meet the requirements according to laws and regulations, through strict 
implementation of laws, regulations and industrial policies on environmental pro tection, 
energy consumption, quality, safety and technology. The equipment of obsolete capacity 
must be dismantled.  Law enforcement and supervision should be strictly implemented, 
the "blacklist " of bad records be timely released for better information dis closure and  
public 's supervision. Support should be provided to the hiving -off and reemployment of 
personnel as a result of local endeavor to reduce overcapacity.  
For electrolytic aluminium, the Guiding Opinions of the General Office of the State 
Council on Creating a Favorable Market Environment to Promote Structural Adjustment, 
Transformation and Increases in Benefits in the Non -Ferrous Metal Industry (Guo Ban Fa 
[2016] No.  42) requires that efforts be made to strengthen fair and impartial law 
enforcemen t in environmental protection, energy conservation, quality, safety and 
technology, to ensure the exit and disposal of excess capacity according to laws and 
regulations, and guide the transfer and exit of uncompetitive capacity.  
During the 12th Five-Year Plan period, in cumulative terms, over 90 million tons of crude 
steel capacity had been cut, the overcapacity situation in the electrolytic aluminium 
industry had improved with the rate of capacity utilization kept at above 80%. Fixed -
asset investment in t he aluminium smelting industry registered negative growth for 
three consecutive years, and the growth in productivity has slowed down. The measures 
put into place by China have delivered positive results. Next, relevant authorities and 
local governments wi ll resolutely implement the requirementsof the documents.  
b. To date, what actual steps have been taken to implement the State Council guidance for steel 
and non -ferrous metals, including aluminum?  
Reply: For steel, China has established an inter -agency join t conference mechanism on 
reducing overcapacity in steel and coal sectors to achieve development by solving the 
difficulties, and relevant provincial people 's governments and the State -owned Assets 
Supervision and Administration under the State Council hav e studied and put forward 
respective implementation plans. For non -ferrous metal, according to the requirement of 
Document Guo Ban Fa [2016] No.  42, the provincial people 's governments will waste no 
time in working out specific plans by taking int account local situations; relevant 
departments under the State Council will issue policy measures according to their 
respective functions; National Development and Reform Commission and the Ministry of 
Industry and Information Technology will strengthen overall co nsideration and WT/TPR/M/3 42/Add.1  
 
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  coordination and join hands with relevant departments for supervision, examination and 
tracking analysis.   
c. What is the Chinese Government 's estimate of the current amount of excess crude steelmaking 
capacity in China?  Does China envision ta king steps beyond those outlined in the State Council 
guidance for steel to address the excess steel capacity situation?   
Reply: In recent years, China has vigorously pressed ahead with the reduction of steel 
production capacity and has already achieved si gnificant results. On this basis, the State 
Council has set the following goal: starting from 2016, another 100 to 150 million tons 
of production capacity of crude steel will be reduced in five years so as to optimizethe 
rate of capacity utilization. The C hinese Government will work together with the 
industry to enhance overall consideration and coordination, strengthen supervision and 
examination, and implementthe measures put forward by the Guiding Opinions.   
d. What is the Chinese Government 's estimate of t he current amount of excess primary aluminum 
capacity in China?  Does China envision taking steps beyond those outlined in the State Council 
guidance for non -ferrous metals, including aluminum, to address the excess primary aluminum 
capacity situation?   
Reply: According to the data released by National Bureau of Statistics, the rate of 
capacity utilization of primary aluminum was estimated at around 82%  in China in 2014. 
Though there is room for further improvement in the capacity structure, the total 
amount  was by and large  the normal level under market conditions. Therefore, the 
Guiding Opinions of the State Council stressed have focused on promoting the 
transformation and upgrading of the electrolytic aluminium industry and facilitate the 
exit of uncompeti tive production capacity. The Chinese Government will work together 
with the industry to enhance overall consideration and coordination, strengthen 
supervision and examination, and implement the various measures put forward by the 
Guiding Opinions.   
e. What s teps have been taken to address excess capacity in cement, plate glass and vessels?  
What steps prohibit capacity expansion in these sectors?  What steps have been taken to prohibit 
local authorities and central departments from approving any new capacity or  expanding projects 
in the cement, plate glass and vessels sectors?  
Reply: For cement, plate glasses and other industries,  the Guiding Opinions of the State 
Council on Promoting Steady Growth, Structural Adjustments and Increased Efficiency of 
the Buildin g Materials Industry (Guo Ban Fa [2016] No. 34) put forward specific 
requirements thatexpansion of production capacity shall be strictly prohibited and  
outdated production capacity be closed down. Specifically, the requirements include 
severe measures such  as strictly prohibiting the record -filing of new production capacity 
(cement and other investment projects are not subject to examination and approval, but 
only to record -filing);  the projects failing to engage in production capacity displacement 
accordin g to stipulations thus resulting in new production capacity shall be seriously 
investigated and penalized, and departments for land resource management, 
environmental protection and quality inspection shall not support these projects; where 
a project viola tes regulations, its application for production permit shall not be 
accepted, and, incasethat its application has been accepted, the permit shall not be 
granted.  
f. Please describe the institutional factors at the local government level that frustrate or inh ibit 
the process of supply side adjustment in industries with excess capacity.  What concrete steps has 
the central government taken to address these factors?   
Reply: Overcapacity is mainly caused by such factors as weak global economic recovery 
and insuffi cient market demand, it is a common problem facing various countries in the 
world today. Some enterprises including private and foreign -funded enterprises have 
been too optimistic about the market in their expectation and business decision, and 
some local authorites have been open to investment out of development considerations 
and led to some overlapping construction, but there do not exist the so -called WT/TPR/M/3 42/Add.1  
 
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  "institutional factors at the local government level that frustrate or inhibit the process of 
supply si de adjustment in industries with excess capacity ". According to the Guiding 
Opinions of the State Council on Resolving Serious Overcapacity Contradictions  (Guo Fa 
[2013] No.  41), the provincial people 's governments take the overall responsibilities for 
resolving the overcapacity problemsin their respective areas and they are organizing 
and implementing specific plans by taking into account particular local situations.  
g. On April 18, 2016, the People's Bank of China, China Banking Regulatory Commission, China  
Securities Regulatory Commission and China Insurance Regulatory Commission jointly issued the 
Opinion on Supporting the Iron and Steel Industry and the Coal Industry in Reducing Excess 
Capacity to Realize Development by Solving Difficulties (Yin Fa [2016]  No. 118).  This measure 
states:  "No loans are to be extended to enterprises that add new capacity in violation of 
regulations.  The related loans must be resolutely reduced in scale and removed from the books for 
enterprises with long -term losses and that h ave lost solvency and market competitiveness; for 
enterprises that do not meet standards in terms of environmental protection, quality, work safety, 
and technology and that do not have prospects for making improvements; for outdated production 
capacity; an d for other production capacity that does not conform to industrial policy. " Later, the 
measure states that banking financial institutions: "must proactively provide comprehensive 
financial services to iron, steel, and coal enterprises that are undergoing positioning adjustments 
and consolidated restructuring but that have not added new capacity. " In view of the steps taken 
to date, why were this measure and its mandates necessary?  If the central government has not 
taken steps to address the underlying inst itutional factors, on what basis is it reasonable to 
assume that this measure and its mandates will be effective at reducing excess capacity?   
Reply: To address the common problem of excess capacity, at the global level, we need 
concerted efforts by all re levant countries, and within each and every country, we need 
joint endeavor by all relevant departments. When profoundly implementing 
theobjectives to reduce excessive steel production capacity, relevant departments have 
successively formulated supporting documents regarding employee placement, land 
resource management, environmental protection, quality and safety to offer policy 
guidance to assist local authorites in well conducting relevant work. Document Yin Fa 
[2016] No. 118 is one of the above supporti ng policies.  
Page 8,  paragraph 2: The Secretariat 's report states that "local authorities and central 
departments are not allowed to approv e any new capacity -expanding projects in those areas. " 
Please specify what measures are in place to ensure that such  approvals will not be allowed.  In 
particular, what penalties or sanctions will be imposed on local authorities or central departments 
that approve new capacity -expanding projects?   
Reply:  Document Guo Fa [2013] No.  41 explicitly provided that any local go vernment or 
department shall not, in any name or in any form, approve or put on file any new project 
that will bring extra production capacity to the industry already with severe 
overcapacity, and relevant department or institutions shall not proceed with provision of 
land (sea area), energy efficiency assessment or environment impact assessmentt ; with 
respect to the project construction in industries with serious overcapacity, a production 
capacity displacement plan shall be prepared for equivalent replac ement or reduction.  
Circular of the State Council on Issuing the Catalogue of Investment Projects Approved 
by the Government (2014 Version) (Guo Fa [2014] No. 53) requires that projects in 
industries with severe excess capacity, such as iron and steel, ele ctrolytic aluminium, 
cement, plate glasses and vessels are strictly subject to the relevant provisions of the 
Guiding Opinions of the State Council on Resolving Serious Overcapacity Conflicts (Guo 
Fa [2013] No.  41). Containing overlapping construction and resolving serious 
overcapacity conflicts has been included in local governments ' performance appraisal 
indicator systems, third -party agencies have  been introduced to assess the 
accomplishment of objectives by various local authorities, and the local author ities and 
enterprise failing to fulfill the tasks shall be held accountable.  
Page 9,  paragraph 10: The Secretariat 's report states that authorities have identified a roadmap 
to achieve stable medium -term growth through measures to strengthen the role of th e market, 
including the reduction of overcapacity.   WT/TPR/M/3 42/Add.1  
 
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  a. Please specify the measures that China plans to take to strengthen the role of the market 
through the reduction of overcapacity.   
Reply: Document Guo Fa [2016] No. 6 requires that steel capacity that cann ot meet the 
requirements should be exited according to laws and regulations through strict 
implementation of laws, regulations and industrial policies on environmental protection, 
energy conservation, quality, safety and technology; incentive policies shal l be 
improved, and enterprises shall be encouraged to close down some of steel production 
capacity through voluntary reduction, M&A and reorganization, transformation and 
switching to other business, relocation and remoulding.   
b. Why does China believe that these measures are sufficient to reduce overcapacity in the 
market?  
Reply: The main idea of these measures is to strengthen the mechanism of market 
competition and market choice and reduce overcapacity through complete, fair, open 
and transparent market r ules. First, enable the enterprises to get a better idea of the 
real production cost, conduct more objective cost -benefit analysis by taking into account 
market situations both at home and abroad and make decisions that are more aligned 
with market princip les, by strict implementing laws, regulations and industrial policies 
on environmental protection, energy consumption, quality, safety and technology. 
Second, help solve the problem of laid -off personnel  when enterprises are closing down 
excessive producti on capacity through rewarding or compensatory personnel placement,  
re-employment assistance and other measures. Third, mitigate the contradiction of 
supply exceeding demand through boosting domestic demand such as promoting the use 
of steel structure build ings in the transformation of shantytowns and dilapidated houses 
and the construction of quake -proof  housing projects, thus expanding the application of 
steel in downstream sectors.  
Page 9,  paragraph 10: The Secretariat 's report discusses China 's structura l reform process and 
China 's aim of attaining a "New Normal, " which is to include, among other things, an increasingly 
market -oriented approach to investment, with the market playing the main role in allocating 
resources.  The report describes some of the m easures being taken by China in support of this 
initiative.  The report adds: "Other proposed measures, on the other hand, such as  increasing 
financial support to the real economy, especially credit support to key and weak areas, and 
supporting the developm ent of strategic emerging industries, would seem to point in a  different 
direction. " In Table A1.2, the Secretariat 's report also references support provided by the Chinese 
Government for the development of "strategic emerging industries. "  
a. Does China agre e with the Secretariat 's assessment of its support for strategic emerging 
industries?  Please explain.   
Reply: China does not agree with the Secretariat 's opinion that financial support to 
strategic emerging industries "seem to point in a different directio n". Innovation is the 
blood of development, which all countries value. To focus more on innovation -oriented 
development is one of the features of New Normal in China 's economic development. 
Being optimistic about the innovation elements in the strategic em erging industries and 
their development prospects, the financial sector based on its independent business 
decision provides more credit to the relevant areas. This is a case in point that the 
market plays a decisive role in the allocation of resources, inc luding financial resources.  
b. To date, how much total funding has been allocated to the various funds created to develop 
China 's strategic emerging industries?  
Reply: Please refer to Program No. 81 in China 's notifications on subsidies at central 
government  level for 2009 -2014 (G/SCM/N/220/CHN , G/SCM/N/253/CHN , 
G/SCM/N/284/CHN) for details.  
c. Please identify each of the funds and itemize the funding allocated to it to date.   
Reply: Please refer to the reply to the above question.   WT/TPR/M/3 42/Add.1  
 
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  d. Have any prohibited export s ubsidies or prohibited import substitution subsidies been provided 
to support the strategic emerging industries at the central government level or the sub -central 
government level?  Please explain.   
Reply: As stated in Article 10 of the Protocol on the Acce ssion of China, China shall 
eliminate all subsidy programmes falling within the scope of Article 3 of the SCM 
Agreement upon accession. China has honored its committement to the WTO and 
performed its obligations under the WTO agreements.  
Page 12,  paragraph  24: Can China provide information about the operation of the government -
set price for cotton since China 's last TPR in 2014?   
Reply: Cotton used to be subject to state -pricing, like other important agricultural 
products vital to national economy and the p eople 's livelihood. In 2015, state -pricing for 
cotton was repealed, and buyers and sellers may freely negotiate prices under market 
conditions.  
Page 13,  paragraph 30: According to the Secretariat 's report, "The Chinese authorities aim to 
modernize the agri cultural sector through mechanization and by promoting the development of 
moderate -scale operations to increase productivity, ensure grain self -sufficiency and promote food 
safety. These goals are to be attained by, inter alia, increasing and improving sup port to the 
sector, reforming the price forming system for agricultural products, and facilitating access to 
credit. " To date, it appears that China 's programs to increase production have led to high domestic 
prices for low quality grain.  At the same time,  China has put in place measures to protect its 
market from competition.  Neither of these steps benefits China 's efforts to modernize the 
agriculture and food sectors. Can China explain why grain self -sufficiency remains a policy goal?  
Reply: With less tha n 10% of the world 's arable land, China successfully feeds the huge 
population that accounts for one fifth of the world 's total population, making important 
contributions to the world 's grain safetyfood security. As the largest producer and 
consumer of gra ins, China needs to make effective use of the international market and 
overseas resources, due to constraints in arable land, fresh water and other resources. 
However, on the one hand, the international market leaves limited room for adjustment. 
As the tot al amount of grain traded in the globalworld market grain trade volume is less 
than half of China 's grain consumption, and it is impossible to supply all the grains to 
China. On the other hand, large -scale imports are not sustainable. If China buys large 
quantity of grains from the international market on a long -term basis, it may result in 
continuous sharp rise in grain prices in the international market. Therefore, China has 
adopted the national grain safetyfood security strategy of maintaining independen ce, 
focusing on domestic production and supply, ensuring production capacity, controlling 
conducting appropriate import quantity at appropriate level, and relying strengthening 
the supporting capacity on of science and technology, which is of significant i mportance 
for maintaining balance between global supply and demand of grains . 
1 ECONOMIC ENVIRONMENT   
1.2 Fiscal Policy and Structural Reform  
1.2.2. Structural reform measures   
Page 22,  paragraph 1.23:  The Secretariat 's report states that projects in indu stries with excess 
capacity, such as iron and steel and electrolytic aluminum, are now subject to filing with local 
governments for advance approval.  The report goes on to note that local authorities and central 
departments are not allowed to approve any n ew capacity -expanding projects in industries with 
excess capacity.   
a. Please specify the procedures for reviewing filings with local governments.   
Reply: According to the Decision of the State Council on the Reform of the Investment 
System (Guo Fa [2004] No.  20), projects not funded by the government were no longer 
subject to examination and approval. Instead, the systems of "ratification" and "Record -
filing" will be used where appropriate. The specific implementation method of the filing 
system, including it s way, contents, time limits and materials needed, is formulated WT/TPR/M/3 42/Add.1  
 
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  separately by provincial people 's governments, which may be accessed through the 
competent investment departments of local governments at various levels.  
b. Please specify the penalties or sanc tions imposed on local government officials who approve (or 
fail to disapprove) new capacity -expanding projects in excess capacity industries.   
Reply: Document  No. 41 requires that supervision and inspection on the implementation 
shall be strengthened and law enforcement and the accountability system shall be 
carried out in real earnest. The local authorities and central departments that have 
performed their duty shall be publically  criticized. The investigation and handling of 
cases shall be intensified. W here insufficient supervision has led to the construction of 
projects in industries with excess capacity in violation of laws or regulations,  relevant 
responsible persons shall be held accountable in accordance with relevant provisions of 
the country. Cont aining overlapping construction and resolving serious overcapacity 
conflicts has been included in local governments ' performance appraisal indicator 
systems .  
c. Please also specify the penalties or sanctions imposed on enterprises whose projects in excess 
capacity industries proceed without prior filing with local governments.   
Reply: For example, where a project violates regulations, its application for production 
permit shall not be accepted, and, in case thatits application has been accepted, the 
permit sh all not be granted; iron and steel enterprises not up to the environmental 
protection standards shall be disposed of in strict accordance with the law, and 
production restriction, production suspension and other measures shall be taken against 
enterprises that over -discharged pollutants; the "blacklist " of iron and steel enterprises 
with poor production safety records will be made public, and iron and steel entrprises 
not equipped with safe production conditions shall be investigated and punished 
according to law.  
1.3 Developments in Trade and Foreign Direct Investment   
1.3.4 Outlook   
Page 31, paragraphs 1.48 -1.49:  The Secretariat 's report indicates that China has entered a 
"New Normal " and that Chinese authorities are intent on cutting surplus production ca pacity and 
inventories.  At the same time, according to the report, the roadmap to deal with risks and achieve 
stable medium -run growth includes "increasing financial support to the real economy, especially by 
increasing credit support to key and weak areas  in the economy. " What would China consider to be 
key and weak areas in the economy?  How does China intend to align its credit easing measures 
with its goal of reducing excess capacity and output?   
Reply: Under the slow recovery of world economy and pressu re of economic downturn 
domestically, overcapacity, inventory overstocking, heavy debt burdens and other 
problems are found in some industries. The Chinese Government encourages banking 
financial institutions to, based on the market -oriented and commercial ized principle 
sand in light of the requirement of the environment and industrial transformation and 
upgrading, support industries with excessive capacity to cut overcapacity and excess 
inventory, deleverage, reduce costs and strengthen points of weakness.  The government 
respects and safeguards the  status of banking financial institutions as market players, 
and supports their allocation of credit resources in a market -oriented manner.   
2 TRADE AND INVESTMENT REGIME   
2.1 Institutional and Legal Framework   
Page 33, Box 2.1:  In Box 2.1, the Secretariat 's report identifies the laws, regulations and other 
measures that make up China 's legal regime.  However, this box omits normative documents, 
which take a variety of forms and are formulated by various departments  and ministries of the 
State Council, typically without the use of notice -and-comment procedures, even though in many 
instances normative documents impose binding requirements on enterprises and individuals as 
well as Chinese government officials in charge  of administering laws, administrative regulations WT/TPR/M/3 42/Add.1  
 
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  and departmental rules.  The United States understands that China plans to reform its use of 
normative documents.   
a. Please describe how China intends to reform its use of normative documents.   
b. What is China 's timetable for implementing this reform?   
Reply to question a & b: China has all along attached significant importance to the 
supervision and administration of  normative documents which have been prescribed by 
relevant laws and regulations and the documen ts of the State Council. First, the State 
Council deployed and launched complete or specific work on sorting out regulations and 
normative documents successively in 2004, 2006, 2007, 2010 and 2011. The Circular of 
the General Office of the State Council on  Matters concerning the Work of Sorting out 
Administrative Regulations and Department Rules and Documents issued on 
January  27, 2016 once again required the departments of the State Council to conduct 
comprehensive work of sorting out relevant rules, regul ations and documents. 
Currently, the work in this regard has been largely completed. Second, the Regulation of 
the People 's Republic of China on the Disclosure of Government Information 
implemented as of May 1, 2008 listed rules and normative documents as government 
information that shall be voluntarily disclosed with emphasis by the people 's 
governments at or above the county level and their departments. Third, the 
Administrative Procedure Law of the People 's Republic of China amended and 
promulgated in Ma y 2015 stipulates that where a citizen, legal person or another 
organization considers that a normative document formulated by a department under 
the State Council, a local people 's government or one of its departments on which an 
administrative behavio ur is based is illegal, an examination on the normative document 
may be requested when a lawsuit is filed against the administrative behavio ur. Fourth, 
the Implementation Program for Building A Law -based Government (2015 -2020) issued 
in December 2015 required  that supervision and administration shall be strengthened on 
normative documents, the formulation procedures of normative documents shall be 
improved, the legality review and the collective discussion and decision -making systems 
shall be implemented, the system of unified registration, unified number and unified 
printing and issuance of normative documents by formulating organs; normative 
documents shall not contain items of administrative licensing, administrative penalty or 
administrative enforcement, an d shall not impair the lawful rights and interests of 
citizens, legal persons and other organizations or add to their obligations; the normative 
documents involving the rights and obligations of citizens, legal persons and other 
organizations shall be made  known to the public according to statutory requirements 
and procedures; and a long -term mechanism on sorting out normative documents shall 
be established.  
Page 32,  paragraph 2.4: The Secretariat 's report briefly describes China 's judicial system.  The 
United States recalls that that the Decision issued following the Third Plenary Session of the 
18th Communist Party of China National Congress (the Third Plenum) in November 2013 called for 
the promotion of greater judicial independence and that the Fourth Ple num, held in October 2014, 
focused on improving the country 's legal infrastructure.  Since 2013, has China taken any steps to 
promote judicial independence, i.e., the ability of Chinese judges to make decisions without 
interference from officials from Peopl e's Congresses, Communist Party officials, officials from 
Communist Party committees, officials from central government ministries, local government 
officials and officials from the procuracy?  If so, what steps have been taken or are planned to be 
taken to  promote greater judicial independence?   
Reply: Judicial reform is an important component of China 's comprehensively deepened 
reform, and is an inetivable requirement to promote the rule of law in an all -round way. 
Since 2013, China has taken the following  four main reform measures: improving the 
classified management of judicial personnel, improving the judicial responsibility 
system, improving the occupational guarantee for judicial personnel, and facilitating the 
unified management of staff members, fisc al affairs and properties at local courts below 
the provincial level. Three batches of pilots have been launched across the whole 
country.  WT/TPR/M/3 42/Add.1  
 
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  Page 34,  paragraph 2.7: The Secretariat 's report notes that MOFCOM publishes trade -related 
laws, administrative regul ations and departmental rules in the China Foreign Trade and Economic 
Cooperation Gazette.  It adds, however, that MOFCOM publishes only the title of a measure in 
Chinese and English while the text is only available in Chinese.  The United States recalls Chi na'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 case later than 
90 days after they are implemented or enforced.  
a. The United States understands that China 's State Council issued a measure in March 2015 
requiring the publication of English translations of trade -related departmental rules before they 
take effect or, in special circumstances, no later than 90 days after they take effect.  Please provide 
an update on how this measure has been implemented by the  departments of the State Council.  
How many departments routinely publish English translations in a timely manner?  What are 
China 's plans for ensuring full compliance with this measure by all departments?   
b. The United States understands that a measure issue d in 2003 addresses the translation of 
administrative regulations.  However, this measure does not require translations normally to be 
made before an administrative regulation takes effect, nor does it require translations to be 
published.  In practice, it c an be several years before China makes available a translation of an 
administrative regulation.  When will China issue a new measure requiring the publication of 
English translations of trade -related departmental rules before they take effect or, in special  
circumstances, no later than 90 days after they take effect?   
c. What plans does China have for ensuring that the publication of translations of trade -related 
laws before they take effect or, in special circumstances, no later than 90 days after they take 
effect?  
Reply to Question a -c: On March 23 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 mad e 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. This represents ano ther effort of China 
to earnestly implement its transparency obligations under the WTO Agreements. So far 
institutional arrangement has been put place for the translation of English versions of 
trade -related laws, regulations and departmental rules. China will make constant 
endeavor to press ahead with this work.  
Page 34,  paragraph 2.7: The Secretariat 's report discusses the China Foreign Trade and 
Cooperation Economic Gazette, published by MOFCOM.  During the 2014 TPR, China stated that it 
would "strive to improv[e] the work relating to the Gazette " (WT/TPR/M/300, page 58,  
paragraph  5.16) and would "step up " efforts to make "local municipal governments better 
understand the compliance to the transparency obligation and the China Foreign Trade and 
Economic Ga zette related work " (WT/TPR/M/300/Add.1, page 192, answer to question 10(d) of the 
United States). Can China explain what specific efforts have been taken to improve local 
governments ' compliance with the publication commitment set forth in paragraph 2(C)( 2) of Part I 
of its WTO Protocol of Accession?  What have been the specific results of these efforts?   
Reply: Each year, the Ministry of Commerce compiles and issues 80 editions of the 
Gazette which include 339 documents and around 5,000 pages. The Gazette has been 
published through the website of the ministry and is also available through email 
subscriptions. Up to now, the Gazette has received over 6,000 email subscriptions and 
the annual click rate is over 3.9 million, and has achieved favorable social ef fects. In 
2015, the Gazettee began to include documents issued by local governments.  WT/TPR/M/3 42/Add.1  
 
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  2.2 Trade Policy Framework and Objectives  
2.2.2 Trade policy formulation and objectives   
Page 35, paragraphs 2.13 -2.14:  The Secretariat 's report notes that the 2015 Forei gn 
Investment Catalogue "encourages investment in those sectors where capital is needed, and 
discourages and prohibits investment in areas where there is overcapacity. " The report also notes 
that "China is also promoting its 'Going Abroad Policy, ' as outwa rd direct investment is considered 
a way to promote trade. " In promoting its "Going Abroad Policy, " what steps is China taking to 
discourage outbound investment in industries where there is both global and Chinese 
overcapacity?   
Reply: The Chinese Governme nt has insisted on market -oriented outward direct 
investment in which enterprises play the leading role, and the sectors, directions, 
manners and countries/regions of destination are determined by enterprises themselves 
(except as explicitly prohibited by laws and regulations of China).  China 's economy has 
developed fast during more than 30 years of reform and opening up. While relying 
mainly on its own efforts, China 's economic development has also benefited from the 
economic globalization process, especia lly global industrial gradient transfer. Currently, 
China has already formed a relatively complete industrial chain and enjoys a number of 
mature and quality industries with high cost -effective advantages. Through outbound 
investment, China helps host coun tries, especially developing countries to perfect their 
industrial chains, develop and improve their domestic industrial systems, promote local 
economic development and realize mutual benefit and win -win results.  
2.3 Participation in the World Trade Organi zation  
Page 36,  paragraph 2.19:  According to the Secretariat 's report, "During the period under 
review, China submitted a large number of notifications to the WTO, which cover a wide range of 
agreements, including those on subsidies, state trading, and qu antitative restrictions, areas in 
which China was lagging behind (Table A2.1). Nevertheless, notifications on domestic support 
remain pending. Previously implemented changes and updates to laws and regulations in different 
areas, as well as the creation of  new agencies (e.g. customs procedures, inspection of imports and 
exports, food safety, government procurement, and intellectual property) also require notification 
as an update or amendment to former WTO notifications. "  
a. When will China submit its notific ation on domestic support as required by the Agreement on 
Agriculture?  
Reply: C hina has always attached great importance to the transparency principle, as it is 
one of the basic principles of the WTO. The general situation of China 's performing 
transparen cy obligation is sound regarding the agriculture sector. According to the 
statistics of the WTO Secretariat, the overdue notification in agricultural field is rather 
common while the number of overdue notification in China is less than other major 
members.  As to the notification of domestic support, China is preparing for the 
notification regarding domestic support since 2010 and will provide the information as 
soon as possible upon completion.  
It should be noted that agricultural subsidy is limited in Chi na, and the subsidy must be 
provided in the approach that match the local conditions best. As China is a vast country 
with a large agricultural sector, there are huge differences in agricultural production 
conditions among different regions, there is a lar ge agricultural population and wide 
variety of agricultural products, therefore, it is almost impossible to make one policy 
that fits for all regions, and local subsidy policies often have their own characteristics. 
Such situation makes it very difficult t o handle the sorting and calculation of support 
measures in a simple and unified manner.  This has increased our workload and working 
hours in collecting information on agricultural subsidy and preparing the notification. 
We hope that Members may understand  this. 
b. When will China notify previously implemented changes and updates to laws and regulations on 
new import inspection requirements and food safety?  WT/TPR/M/3 42/Add.1  
 
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  Reply: The rules of AQSIQ on new import inspection requirements and food safety have 
all been notifi ed to the WTO.  
2.5 Foreign Investment Regime  
2.5.1 Regulatory framework and market access   
Page 37,  paragraph 2.24:  The Secretariat 's report notes that the three laws regulating foreign 
investment in China are being revised and merged into one law.  The dra ft law has been released 
for public comment.  What is the process and timetable for consideration of comments, issuance of 
a revised document taking comments into account, and finalization of the law?  
Reply: In January 2015, the Draft Foreign Investment La w of the People's Republic of 
China was made available for the soliciting of  public opinions. This law aims at creating 
a more stable, transparent and predictable l egal environment for foreign investment. For 
the next step, China will promote the law for e arly entry into force according to the set 
legislative procedures.   
Page 39,  paragraph 2.27:  The Secretariat 's report states: "Technology transfer is . . . at the 
core of China 's FDI policy.  Nonetheless, the authorities maintain that technology transfer is  not a 
mandatory requirement for FDI to be approved. " The United States notes that WTO Members 
repeatedly have expressed concerns about China imposing de facto technology transfer 
requirements.  The United States believes that forced technology transfer rem ains a significant 
problem in China.  As explained in the 2015 USTR Report to Congress on China 's WTO Compliance, 
issued in December 2015, "confidential accounts from foreign enterprises indicate that Chinese 
government officials, acting without fear of leg al challenge, at times require foreign enterprises to 
transfer technology as a condition for securing investments approvals, even though Chinese law 
does not – and cannot under China 's WTO commitments – require technology transfer. " The USTR 
report adds: "[C]onfidential accounts from foreign companies indicate that Chinese government 
officials at times use China 's current foreign investment approval process to restrict or 
unreasonably delay market entry for foreign companies, to require the foreign company to take on 
a Chinese partner, or to extract valuable, deal -specific commercial concessions as a price for 
market entry. " Please explain how China justifies these policies and practices in light of its WTO 
Protocol of Accession commitments not to condition investment approvals on, among other things, 
the transfer of technology.   
Reply: The Chinese Government has announced many times that China will not regard 
technology transfer as a precondition for market access. There are no so -called 
"requirements on for ced technology transfer " in the laws or regulations of China, and 
China has all along strictly abided by its commitments under the Accession Protocol. The 
US did not mention under what circumstances the enterprises met with what specific 
cases in the quest ion, so it is difficult for China to learn about it. If the US could provide 
the specific cases, the Chinese Government will further study it in real earnest.  
Page 40,  paragraph 2.31:  The Secretariat 's report noted that the authorities took steps to clarif y 
the scope of China 's national security reviews in 2011.  Do any of the national security reviews 
required by Chinese law currently cover greenfield investments in China by foreign enterprises?  If 
so, please explain.  
Reply: The Circular on Distributing th e Trial Measures on National Security Review of 
Foreign Investment in the Pilot Free Trade Zones, released by the General Office of State 
Council of China in 2015, states that foreign investors ' invest ment  in the pilot free trade 
zone s involve the followin g circumstances: "foreign investors individually invest , or 
co-invest with other investors , new projects or set up a business", meaning that 
greenfield investments are included.  
2.5.2 Examination and approval procedures  
Page 41,  paragraph 2.34:  The Secreta riat's report states that National Development and Reform 
Commission (NDRC) approval is required for projects designed to expand capacity in projects 
involving "huge" overcapacity, including steel and electrolytic aluminum.  WT/TPR/M/3 42/Add.1  
 
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  a. Please specify the penalties or  sanctions imposed on NDRC officials who approve (or fail to 
disapprove) new capacity -expanding projects in these excess capacity industries.  
Reply: This question is the same with that regarding  "Page 22,  paragraph 1.23". Please 
refer to the relevant  reply. 
b. Please also specify the penalties or sanctions imposed on enterprises whose projects in these 
excess capacity industries proceed without prior filing with NRDC.  
Reply: This question is the same with that regarding  "Page 22,  paragraph 1.23". Please 
refer to the relevant  reply . 
c. The Secretariat 's report discusses the Catalogue of Investment Projects Subject to Government 
Verification.  Do the approvals required for "encouraged " and "restricted " sectors apply to domestic 
investment as well as foreign investm ent in the steel sector?  If not, for investment subject to 
verification, please explain the differences between the approvals required for domestic and 
foreign investment.  
Reply: For the approvals required for domestic and foreign investment subject to 
verification, please refer to the Circular on Releasing the Catalogue of Investment 
Projects Subject to Government Verification (2014 Version) (Guo Fa [2014] No.  53). 
Page 43,  paragraph 2.42:  The Secretariat 's report notes that the State Council Circular on 
Distributing the Trial Measures on National Security Review of Foreign Investment in the Pilot Free 
Trade Zones does not include details on how China defines its national security review criteria or 
how it will carry out the evaluation.  
a. When and how will China provide further transparency into its foreign investment review 
procedures for Pilot Free Trade Zones?  
Reply: The Chinese government, on the basis of  sufficient research and demonstration 
and by referring to relevant experience of other countries an d regions, released the Trial 
Measures on National Security Review of Foreign Investment in the Pilot Free Trade 
Zones in April 2015. The Measures provide for  the scope, content, working mechanism 
and procedures of the security review of foreign investment  in the pilot free trade zones, 
which is very transparent , and confirms that the said security review procedures of pilot 
free trade zones shall be conducted according to Article Four of the Notice of the General 
Office of the State Council on Launching th e Security Review System for Mergers and 
Acquisitions of Domestic Enterprises by Foreign Investors. The notice made clear 
provisions on the security review procedures to ensure procudural  transparency . 
b. What is the purpose of including factors such as econo mic stability, social order, and morality 
into a national security review, and how is this broad set of criteria consistent with China 's 
asserted goal of relaxing restrictions on foreign investors?  
Reply: Reviewing the foreign investment that influence s or may influence the national 
security is internationally  prevailing  practice s. The aim of taking national defense 
security and economic stability into the review is to safeguard national security. This is 
not contradictory with China's further opening up or efforts to reduce  market access 
restrictions for foreign investment. Not all foreign investment in China i nvolve s national 
security. Relevant regulations of China already clearly established the scope of security 
review of foreign investment, which only cover s few foreign investors and foreign 
investment matters. Meanwhile, the effectively maintenance of  national security will 
enable China to open up quicker to the outside world . In the future, China will 
continuously and unswervingly open up , to create g ood investment environment for 
foreign -invested enterprises and provide more market access opportunities for foreign 
investors . WT/TPR/M/3 42/Add.1  
 
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  3 TRADE POLICIES AND PRACTICES BY MEASURE   
3.1 Measures Directly Affecting Imports   
3.1.1  Customs procedures and requirements  
Page 47, Paragraph 3.3:  The Secretariat 's report states that "[i]mporters (and exporters) need 
to comply with the inspection and quarantine requirements of Customs and the General 
Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), as s tipulated by law 
and by the Catalogue of Import and Export Commodities Subject to Compulsory Inspection. " In 
addition to amending the commodities subject to inspection, does this catalogue also identify any 
changes in China 's import standards?  If so, has C hina notified them to the WTO?  If it has not done 
so, when will China notify them to the WTO?   
Reply: The catalogue of inspection only amends the commodities subject to inspection 
and does not change the import standards.  
Page 47,  paragraph 3.4: The Secret ariat's report notes that, in order to facilitate trade, China 
has launched a series of reforms to make customs procedures more efficient for imports and 
exports.  Given these efforts, are there any plans to review both the de minimis threshold and the 
benefits of basing it on shipment value versus duty liability?  The United States notes that the 
present RMB 50 threshold is based on duty liability, which requires each consignment to go 
through a customs broker and delays delivery of goods to Chinese consumer s.  
Reply: As for the de minimis threshold of tariff, the customs does their job according to 
the Regulations on Import and Export Duties  of the People 's Republic of China ; and 
declaration is one of the necessary steps for consignees and consignors of impo rted and 
exported goods to fulfill the customs procedures. From the legal persepective , 
declaration means that the consignees and consignors report to customs about the 
actual situation of imported and exported goods and apply for a release of the goods 
according to the content they have declared. Therefore, declaration is not only a legal  
duty has to be fulfilled by  the consignees and consignors, but also a prerequisite for the 
customs to confirm the imported and exported goods.  
Page 48,  paragraph 3.7: The Secretariat report highlights the existence of different customs 
procedures existing across China.  Given these differences, how does China ensure each port 
follows the WTO Agreement on Customs Valuation?   
Reply: China formulated the Measures of Customs fo r Assessing and Determining Duty -
Paid Value of Imported and Exported Goods according to the principles of WTO 
Agreement on Customs Valuation. Each port conducts the valuation in strict accordance 
with the Measures. China customs have established  price info rmation institutions across 
the country which mainly engaging in supervising and analyzing the valuation 
enforcement. Moreover, General Administration of Customs organizes trainings and 
workshops every year for training and discuss ion of  the valuation meth ods and 
procedures. These actions well ensure that all ports strictly abide by the principles of 
WTO Agreement on Customs Valuation.  
3.1.2  Customs valuation   
Page 48,  paragraph 3.8: The Secretariat 's report highlights that valuation procedures have not 
undergone major changes since legislation went into place in 2006.  Given that China 's customs 
legislation provides that the central customs authorities can assign audit responsibilities to any 
local branch of customs to review other ports, how is the use of c ommon accounting methods 
ensured to enable effective and consistent findings?   
Reply: China formulated the Measures of Customs for Assessing and Determining Duty -
Paid Value of Imported and Exported Goods according to the principles of WTO 
Agreement on Cust oms Valuation. Each port conducts the valuation in strict accordance 
with the Measures. China customs have established  price information institutions across 
the country which mainly engaging in supervising and analyzing the valuation 
enforcement. Moreover,  General Administration of Customs organizes trainings and 
workshops every year for training and discuss ion of  the valuation methods and WT/TPR/M/3 42/Add.1  
 
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  procedures. These actions well ensure that all ports strictly abide by the principles of 
WTO Agreement on Customs Valua tion.  
Page 48,  paragraph 3.8: Paragraph 3.8 of the Secretariat 's report discusses China 's customs 
valuation regime.  Can China confirm that it applies paragraph 2 of the Decision on Carrier Media 
Bearing Software and therefore values carrier media bearing s oftware based on the value of the 
carrier media as opposed to the value of the software?   
Reply: Yes, this is stipulated in the Measures of Customs.  
3.1.4 Tariffs   
Page 52,  paragraph 3.18: The Secretariat 's report states:  "According to the authorities, the  
tariff quota allocation process has not changed since 2013. The most recent information available 
for tariff quota utilization dates from 2014. "  
a. Does this mean that the quantities under the cotton tariff -rate quota (TRQ) that are restricted 
to "processin g use " (i.e., the downstream product is required to be exported) have not changed?  
Please provide data on the allocation of the TRQ that are restricted to processing.  
Reply: According to China 's relevant commitments on its WTO accession, the quantities 
and allocation way of the cotton TRQ has remained unchanged up to now . 
b. The Secretariat 's report indicates that the "out-of-quota rates also remained unchanged. " Are 
sliding -scale duties for imports out -of-quota still available and at the same levels?   
Reply:  Sliding duties on cotton are not higher than the bond rates and are currently still 
in force. For details please refer to page 502 of the Customs Tariff of Import and Export 
of the People's Republic of China 2016 (Legal Text) (compiled by the Office of Cu stoms 
Tariff Commission of the State Council and Department of Tariff of the Ministry of 
Finance).  
Page 52,  paragraph 3.19: The Secretariat 's report states that "[i]mport duty exemptions apply 
in certain cases and under certain incentives programmes. " Please provide a list of incentives 
programs that offer import duty exemptions and explain what products are covered by each 
program.   
Reply: For details, please refer to program No.61 of notifications on subsidies at central 
government level for 2009 -2014  (G/SCM/N/220/CHN, G/SCM/N/253/CHN and 
G/SCM/N/284/CHN).  
3.1.7  Anti-dumping, countervailing, and safeguard measures  
3.1.7.1  Anti-dumping Measures  
Page 57,  paragraph 3.32: The Secretariat 's report notes that "China 's legal framework to 
conduct AD investigations  and apply AD measures was not modified during the period of review " 
and cites to regulations and rules that are the basis for investigating dumping cases that have 
been notified to the WTO.   
a. During China 's last TPR in 2014, China indicated that it was rev ising 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 revisions in a timely 
manner.  (See RD/TPR/326, page 278).  Please pr ovide an update on the status of revisions of 
these rules, and when China expects to notify them to the appropriate WTO Committees.   
Reply: MOFCOM has finished the work of soliciting public opinions for the drafts of Rules 
on the Conduct of Public Hearings  in Anti -dumping and Countervailing Duty 
Investigations, Rules on Questionnaires on Anti -dumping Duty Investigations and Rules 
of Midterm Re view  on Anti -dumping. Once the amendment work is completed, WTO will 
be notified. The amendment of other rules for trade remedy department will be carried 
out by MOFCOM  as the circumstances require . WT/TPR/M/3 42/Add.1  
 
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  b. During China 's last TPR in 2014, China indicated that MOFCOM would clarify whether it believed 
that the Provisional Rules for Implementing WTO Trade Remedy Rulings, issued o n July  31, 2013, 
are in the scope of China 's notification obligations under relevant WTO agreements, and if so, 
whether China would notify the rules to the relevant committees as soon as possible.  (See 
RD/TPR/326, page 275.)  Please provide an update on whe ther China has concluded that these 
rules should be notified and when it will do so.   
Reply: The Chinese government will complete the notification as soon  as possible . 
c. In 2015, China solicited public comments on draft revisions to the Rules on Antidumping and 
Countervailing Investigation Hearings, the Rules on Antidumping Questionnaires in Investigations, 
and the Rules on Antidumping Interim Reviews.  To date, China does not appear to have finalized 
revisions to any of these rules.  Please provide an update o n the status of the revision processes for 
each of these rules, and indicate when China expects to finalize them and notify them to the 
appropriate WTO committees.   
Reply: MOFCOM has finished the work of soliciting public opinions for the drafts of Rules 
on the Conduct of Public Hearings in Anti -dumping and Countervailing Duty 
Investigations, Rules on Questionnaires on Anti -dumping Duty Investigations and Rules 
of Midterm Re view  on Anti -dumping. Once the amendment work is completed, WTO will 
be notified.  
Page 57,  paragraph 3.33:  The Secretariat 's report discusses the establishment of the Trade 
Remedy and Investigation Bureau within MOFCOM in April 2014.  During China 's last TPR in 2014, 
it advised that MOFCOM would be revising departmental rules on trade reme dies in accordance 
with the needs of practice following the establishment of the Trade Remedy Investigation Bureau 
and that revisions of these rules were included in the rulemaking plan of MOFCOM.  China also 
indicated that after completion of the revisions , China will promptly notify the relevant WTO 
committees of the revisions.  (See RD/TPR/326, page 276.)  Please provide an update on the status 
of the revisions, and when China expects to notify the relevant committees of the revisions.   
Reply: In April 2014 , MOFCOM established the Trade Remedy and Investigation Bureau 
(TRB). After that , MOFCOM has launched the  revis ion of  departmental rules for trade 
remedy according to its working responsibilities. MOFCOM has finished the work of 
soliciting public opinions for the drafts of Rules on the Conduct of Public Hearings in 
Anti-dumping and Countervailing Duty Investigations, Rules on Questionnaires on Anti -
dumping Duty Investigations and Rules of Midterm Re view  on Anti -dumping. Once the 
amendment work is completed,  WTO will be notified. The amendment of other rules for 
trade remedy department will be carried out by MOFCOM  as the circumstances require . 
Page 58,  paragraph 3.37:  The Secretariat 's report states that MOFCOM is authorized to use a 
"sampling method " in an investigation where it would be difficult to determine a separate margin 
of dumping for each individual exporter or producer because the number of exporters and 
producers is so large that it would prevent the timely completion of the investigation.   
a. Please describe how MOFCOM determines when it is necessary to use sampling.  Does MOFCOM 
have a standardized metric or set of factors to assess the appropriateness of sampling in a 
particular case?  If so, please describe those factors.   
Reply: According to the  Anti-dumping Regulations and the Provisional Rules on Sampling 
in Anti -dumping Investigations, when the number of exporters and producers is so large 
that it would prevent the timely completion of the investigation, the investigating 
authorities can adopt  sampling method to conduct the investigation. As the Provisional 
Rules on Sampling in Anti -dumping Investigations stipulated, the investigating 
authorities shall adopt the largest export volume or effective statistic method on the 
basis of available facts  during sampling investigations. The largest export volume 
method means the investigating authorities choose the enterprises with available 
resources and largest export volume to examine according to the rank of export volume 
of known exporters and produce rs. In this way, the chosen enterprises represent the 
largest export volume. The effective statistic method means the investigating 
authorities rank the know n exporters and producers and choose sample enterprises WT/TPR/M/3 42/Add.1  
 
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  according to the effective way of statistic s. In general, Chinese investigating authorities 
adopt random sampling as the effectively statistical sampling method . 
b. Please identify the rules governing when and how MOFCOM conducts sampling in an 
investigation.  The United States notes that China issu ed Provisional Rules on Sampling in 
Antidumping Investigations in 2002.  Please indicate if MOFCOM has issued or implemented any 
other relevant rules governing sampling since 2002.   
Reply: Up to now, China has not revised or issued new rules on sampling in 
investigation . 
Page 59,  paragraph 3.43: In paragraph 3.43, the Secretariat 's report addresses Article 56 of 
China 's anti -dumping regulations, which authorizes taking countermeasures when a trading 
partner "discriminatorily " imposes anti -dumping measures.  The United States notes that a similar 
provision appears in Article 55 of China 's countervailing duty regulations, which, like Article 56 of 
China 's anti -dumping regulations, has its roots in Article 7 of China 's Foreign Trade Law.  According 
to the Secretar iat's report, "the authorities have repeatedly stated that these provisions have not 
been used. " In the past, China has explained that it would resort to WTO dispute settlement before 
taking corresponding countermeasures in respect of a WTO Member.  Neverth eless, the United 
States notes that, on several occasions in recent years, MOFCOM has stated that it will initiate 
anti-dumping and countervailing duty investigations of U.S. products if the United States takes 
actions adverse to China 's interests in anti -dumping, countervailing duty or safeguard 
investigations, apparently with the design of discouraging the United States from the legitimate 
exercise of its rights under WTO anti -dumping and countervailing duty rules or the safeguard 
provisions of China 's WT O Protocol of Accession.  In the United States ' experience, this type of 
retaliatory conduct remains atypical of WTO Members.  In addition, when MOFCOM has pursued 
anti-dumping and countervailing duty investigations under these circumstances, it appears that  it 
has tended to move forward with the imposition of duties even when there are significant flaws in 
the underlying legal and factual support, as has been confirmed by WTO panel and Appellate Body 
rulings in China – Countervailing and Anti -Dumping Duties on Grain Oriented Flat -Rolled Electrical 
Steel from the United States (DS414), China – Anti-Dumping and Countervailing Duty Measures on 
Broiler Products from the United States (DS427) and China – Anti-Dumping and Countervailing 
Duties on Certain Automobile s from the United States (DS440).  Will China consider repealing 
Article 56 of its anti -dumping regulations and Article 55 of its countervailing duty regulations?  Will 
China agree to refrain from pursuing retaliatory actions like those described above?   
Reply: At present , China has no plan  to revise relevant provisions of Foreign Trade Law, 
Anti-dumping Regulations and Regulations on Countervailing Measures. In history, 
China has never used these provisions.  
Page 60,  paragraph 3.48: The Secretariat 's report states that "China 's lower rate of renewal of 
AD measures following sunset reviews addresses worries expressed in the past with respect to the 
results of these reviews. " Despite this statement, the United States continues to have concerns 
that China lacks specific rules and procedures governing expiry reviews.  In response to questions 
in its last TPR in 2014 regarding the lack of specific rules and procedures governing expiry reviews, 
China noted that it will continue to study the development of sunset revi ew rules on the basis of 
practice.  (See RD/TPR/326, page 279.)  Please provide an update on China 's development of 
sunset review rules.   
Reply: China has no plan to formulate sunset review rules . 
3.1.8 Standards and other technical requirements   
Page 64,  paragraph 3.67:  The Secretariat 's report describes China 's procedures for developing 
standards and technical regulations.  It explains that China frequently cites voluntary standards in 
technical regulations, thereby in effect turning these voluntary standard s into mandatory 
standards.  For example, Chinese measures setting food safety requirements frequently cite 
previously developed voluntary standards.  However, China generally does not notify these 
voluntary standards to the WTO for Member review and comment , even after citing them in 
technical regulations and effectively turning them into mandatory standards.  Please explain why WT/TPR/M/3 42/Add.1  
 
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  China takes this approach?  When will China begin notifying voluntary standards that have been 
cited in technical regulations?   
Reply : Turning voluntary standards into mandatory ones through the citation of 
technical regulations is not an invention by China. Many countries including the US have 
the similar approaches. Citation of voluntary standards in China consists of two ways, 
citati on in full and in articles. The competent authority of national standards  has no way  
to know whether voluntary standards have been cited in technical regulations or not and 
in what way .According to the principle that the release r shall be the notif ier, the  
department who have cited the standards shall be responsible for notif ication to the  
WTO . 
Page 65,  paragraph 3.70: The Secretariat report states: "During its last Trade Policy Review in 
2014, China was invited to streamline and review the domestic standar ds framework, and to look 
into replacing local standards with national standards where relevant.  China replied that it was 
actively facilitating integration and optimization of mandatory national, industrial and local 
standards to reduce the number of stan dards.  During the current Review, Chinese authorities 
noted that a reform of the standardization system is under way, and that a new mandatory 
national standards system will be established. " On March 22, 2016, China 's State Council released 
the draft Stand ardization Law.  The United States has several concerns and questions regarding 
this draft law.   
a. How does China view the draft law in relation to TBT Agreement Article 4.1, which requires 
central government standardizing bodies to accept and comply with the  Code of Good Practice for 
the Preparation, Adoption and Application of Standards when drafting standardization laws or other 
related measures?   
Reply: During the amendment of Standardization Law, China has been insisting on 
making clear of some basic prin ciples in good practice guidelines. For example, the draft 
stipulates that setting standards shall be beneficial to promote foreign economic and 
technological cooperation and foreign trade; and it is forbidden to set standards that 
may interfere with marke t order or impede fair competition. The draft also  stated 
provides that  the state encourages participati on in international standardization 
activities and the formulation  and adopt ion of  international standards; and encourages 
international cooperation and  exchanging on standardization and promot es the 
transformation and utilization between Chinese standards and foreign standards.  At the 
same time, t he draft stipulates that mandatory standards shall be notified according to 
WTO requirements.  
b. There are areas  in the draft law that lack clarity or raise concerns.  One example is the apparent 
lack of provisions addressing the use of international standards.  The draft law appears to be 
limited to the development and promotion of China -specific standards rather tha n calling for the 
use of international standards where they would meet China 's objectives.  Will China add provisions 
on the use of international standards?  What guidance will be provided on the use of international 
standards?   
Reply: As clearly stipulated in Article 6 of the draft Standardization Law, the state 
encourages to adopt and promote international standards. AQSIQ specially formulated 
the Administrative Regulations for Adopting International Standards in 2001 and made 
clear provisions on how to ado pt international standards . 
c. The United States encourages China to ensure that any standards and technical regulations are 
developed, adopted and applied in an open, transparent and non -discriminatory manner.  It is not 
clear that this principle will be inco rporated into or even is compatible with the draft law.  For 
example, the draft law, particularly in Articles 4, 5 and 13, appears to envision a system where the 
central government plays the leading role in the development and use of standards.  Is this 
characterization correct?  Can China clarify the future role of the central government in the 
development of standards, including pursuant to Articles 4, 5 and 13?   
Reply: The revised draft of Standardization Law fully reflects open, transparent and non -
discrim inatory principle of formulation and revision of standards. The draft clearly WT/TPR/M/3 42/Add.1  
 
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  stipulates that the formulation of standards shall bring into full play  the roles of 
enterprises, scientific research institutions, consumers and social groups and widely 
listen to opinions . 
Articles 4, 5 and 13 reflect the government 's macroscopic management and overall 
coordination of the development of national standardization, and are consistent with the 
overall thinking (namely let the market play a decisive role in allocatin g resources of 
standardization and give better play to the role of the government) of this round of 
standardization reform. Article 4 makes regulations on the standardization management 
systems of China. Since the promulgation  of the Standardization Law in  1988, China 
always adheres to the administration system of "unified management and divided 
responsibilities" , which t his law amendment did not change. As Article 5 stipulated, the 
coordination and promotion mechanism of standardization shall be establishe d. This is 
an important part of the standardization reform, aiming at enhancing the planning and 
coordination on the key policies of standardization between government department s 
and the coordination of formulation and implementation of import ant standard s. 
Article  13 emphasized that when the law sets new group standards, the government 
shall strengthen the cultivation, guidance and supervision of group standards. This does 
not affect the autonomy of social groups to set the standards . 
In June 2015, the St ate Council established the Inter -agency  Joint Conference for 
coordination and promotion of standardization consisting of 39 department s including 
Cyberspace Administration of China, Ministry of Foreign Affairs and National 
Development and Reform Commissio n. Meanwhile, AQSIQ and Standardization 
Administration of China already carried out pilot work in 39 social groups such as 
Chinese Institute of Electronics, and formulated and issued the Guiding Opinions on 
Cultivating and Developing Group Standards on the  basis of the pilot s. 
d. The draft law is not clear with regard to whether private parties, including foreign parties, will 
be able to participate in the standard setting process in China.  Please confirm that private parties, 
including foreign parties, will b e able to participate in the standard setting process in China?  Please 
explain how it is envisioned that the standard setting process will work.   
Reply: The Standardization Law has the features of territoriality. Enterprises in China, be 
it Chin ese-investe d or foreign -invested, shall obey the law and can conduct  
standardization activities according to the stipu lations of the Standardization Law . 
e. The draft law uses terms that are not generally used in standardization settings and that do not 
appear in the TB T Agreement.  For example, the draft law uses the terms "sample standards, " 
"trade/industry standards ", "group standards " and "enterprise standards " without providing any 
definition as to what these terms mean.  How does China define these terms for purposes  of the 
draft law?   
Reply: The draft law already makes the definition and explanation on the "industry 
standards, " "group standards " and "enterprise standards ". Industry standards are set 
by relevant administrative departments under  the State Council, and are the agreed -on 
voluntary standards in one industr y of China in the absence of  national standards. Group 
standards are made by de jure social groups and for voluntary adopt ion by the society . 
Enterprise standards are developed  by enterprises themselves a ccording to the ir needs , 
which  act as the standards for organization of production . 
The United States notes the importance of respecting intellectual property rights in the 
standard setting process.  Where copyrighted material is adopted or incorporated by 
reference, the rights of the copyright owners must be protected.  It also is critical to 
protect the rights of holders of patented technologies that are incorporated into a 
standard.  Will China clearly affirm these essential basic principles in the draft la w?  
Reply: Protecting the rights of owners is one of the main principles of relevant laws and 
regulations of China on patents and copyrights. Meanwhile, for the patented 
technologies that are incorporated into a standard, especially the standard essential 
patents, China holds that the patent policy shall ensure the balance of interests between WT/TPR/M/3 42/Add.1  
 
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  patent holders and standard implementers , as well as  the smooth implement ation  of 
standards to promote creation and competition and protect the interests of the publi c. 
In 2014, Standardization Administration of China and State Intellectual Property Office 
of China specially formulated  and released the Administration Regulations for the 
National Standards Relating to Patents which makes clear regulations on the disposa l of 
patents in standards. For possible antitrust problems due to patent involvement in a 
standard, Article 17 of the draft Standardization Law explicitly stipulates that it is 
forbidden to use standards to engage in illegal activities such as industrial m onopoly, 
interdiction of an area and unfair competition . 
Page 67,  paragraph 3.78: The Secretariat 's report discusses the revised Food Safety Law, which 
was adopted in April 2015 and introduces more specific and detailed labelling and packaging 
requirements  for pre -packaged and healthcare foods.  The United States notes that the China Food 
and Drug Administration published draft implementing rules for the Food Safety Law in 
December  2015.  The draft implementing rules state that "[i]mported prepackaged foods s hall have 
Chinese labels, which shall be directly printed on the product package before importation; it is not 
allowed to stick Chinese label over the foreign language label. "  
a. Will China 's final implementing rule permit supplemental labels, consistent wit h Section  8.2.1 of 
the Codex Standard on the Labeling of Prepackaged Foods, to be applied upon arrival, but before 
customs clearance, to ensure that products are fully in compliance with China 's labeling 
requirements before their release into commerce?   
b. Will bilingual labels be permitted?   
Reply to question a - b: The stipulation that "imported prepackaged foods shall have 
Chinese language labels, which shall be directly printed on the product package before 
importation; it is forbidden to stick Chinese lab el over the foreign language label " in the 
Implementing Rules of the Food Safety Law currently is only applied to infant formula 
and not applicable for other foods . 
3.1.9 Sanitary and phystosanitary requirements  
Page 67,  paragraph 3.80:  The Secretariat 's report states that "[t]he most important change 
regarding the legislation that regulates the SPS regime in China since the last Review, has been 
the promulgation of the Food Safety Law in 2015 " and that "[t]he other laws and regulations that 
were in place a t the time of the last Review, remain in place (Table 3.8). " The report also notes in 
paragraph 3.85 that, according to the authorities, the "inspection procedures for imports and 
exports subject to SPS measures have not undergone substantial changes since  2013. " However, 
the United States notes with concern that China has not notified SPS measures that implement the 
Food Safety Law.  The measures in question were issued by some of China 's principal regulatory 
agencies, including the China Food and Drug Admi nistration (CFDA), AQSIQ, the Ministry of 
Agriculture (MOA), and the National Health and Family Planning Commission (NHFPC).  Many of 
these non -notified measures will have a significant impact on trade.  For example, AQSIQ 's May 
2016 announcement that a new Official Certificate Requirement for Imported Foods had entered 
into force in April 2016 without WTO notification or comments from international stakeholders 
poses a risk to imports from many trading partners.  
a. When does China plan to notify the Official C ertificate Requirement for Imported Foods and all 
of the other implementing measures for the Food Safety Law and afford Members the opportunity 
to provide comments?   
Reply: China will notify relevant measures as required by the WTO rules.  
b. What is China 's plan to reduce the overlap between its existing laws and regulations and the 
new Food Safety Law and its implementing measures?   
Reply: China is actively sorting out  the non -compliant laws and regulations with the new 
Food Safety Law and the expired ones, t o establish  supporting laws and regulations that 
are consistent  with the requirements of new Food Safety Law . WT/TPR/M/3 42/Add.1  
 
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  Page 69,  paragraph 3.84:  The Secretariat 's report states that China 's "prohibition [on the 
importation of plants or animals that originate in coun tries or regions where there are plant 
diseases or epidemics] may be lifted on the basis of scientific assessment. To this end, the country 
affected must submit an application to the relevant Chinese authorities once the epidemic is under 
control. The MOA and AQSIQ will jointly assess the application, and an on -site survey will be 
undertaken to assess whether measures taken by the affected country are in accordance with a 
risk analysis based on the principles stipulated by national and international organiz ations. "  
a. Please provide clarification on how "under control " is defined for highly pathogenic avian 
influenza (HPAI), bovine spongiform encephalopathy (BSE) and foot -and-mouth disease (FMD).  
Reply: The "control" mentioned by China means that the epidemic  disease surveillance 
and management level of a country or region reach es the demarcation that China can lift 
the prohibition after comprehensive assessment. It does not simply mean one epidemic 
situation is put out or comes to an end, but a process of com prehensive risk assessment 
or equivalence evaluation. It mainly measures the establishment of scientific and 
effective management and supervision system for a kind of disease conducted by the 
official veterinary competent sectors and other animal -epidemic -disease supervision 
sectors of a country or region according to relevant requirements of OIE and China, and 
the controllable status of the disease that can be controlled for quite some time under 
the active and passive surveillance of the system and has lo w risks in recurrence . 
b. Please clarify, or provide a reference to the relevant regulation or rule, where the process and 
criteria are defined for "assessing the application " to lift the prohibition.   
Reply: The procedures of lifting the prohibition of an an imal epidemic is described as 
followed: After the animal epidemic of an exporting country or region can be put out and 
effectively controlled, an epidemic end report shall be submitted to and approved by the 
OIE. If in two consecutive months there are no n ew cases in the exporting country or 
region, its national authorities can apply for the relief of the epidemic to the AQSIQ of 
China. After receiving the application, AQSIQ will carry out the risk assessment and 
exchange ideas on the risks with Ministry of  Agriculture and other relevant sectors, and 
will decide on whether to lift the prohibition of the epidemic and specific contents 
according to the results of assessmen t. 
c. Please clarify why China does not recognize a "regionalization " approach to HPAI when 
"regionalization " is in accordance with the principles and risk analysis of an international 
organization, the World Organization for Animal Health (OIE).   
Reply: China has a poultry industry of large scale. The security of poultry concerns 
national econom y, people 's livelihood and social stability. Chinese people, poultry 
industry and the government are highly sensitive and attach great importance to HPAI. 
China applies the strictest control measures over HPAI. OIE encourages regionalized 
management of ani mal epidemic diseases, but has not formulated standard for 
regionalized assessment of HPAI.  
d. Please clarify why China bans the use of ractopamine, a ban which is in conflict with risk 
analyses performed by international organizations.   
Reply: China bans the  use of ractopamine. It is a provision of Chinese law and is a 
measure formulated based on the national conditions and the basic need to protect 
consumers ' health. Chinese residents have a long -standing dietary habit of eating offals. 
In order to evaluate the safety of the registration and use of RCT in China, China has 
formed a dedicated group of evaluation experts to conduct research and evaluation on 
its safety and the safety risks under China 's dietary structure the model of swine 
feeding. The phased re search report on the experiments on RCT residue elimination 
indicates that it is risky to use RCT in China. Most of the countries in the world have not 
approved the use of ractopamine as a veterinary drug. The EU also explicitly bans the 
use of all β-adren ergic agonist drugs including ractopamine in edible animals . WT/TPR/M/3 42/Add.1  
 
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  Page 71, paragraphs 3.89 and 3.90:  According to the Secretariat 's report, China 's new Food 
Safety Law has changed the way that food exporters and importers must register.  "Exporters or 
agents (fo reign enterprises) that export food into China and importers (Chinese enterprises) that 
import food must apply to the state entry -exit inspection and quarantine authority (through 
record -filing). Overseas enterprises that produce food and/or export food in to China must be 
registered by the state entry -exit inspection and quarantine authority. To apply for registration, 
enterprises must be recommended to the CNCA via a competent authority of the countries 
(regions) where such enterprises are located or in ot her 'prescribed manner. '" Further, "[f]oreign 
enterprises that manufacture, import, process and store food must be registered with the CNCA 
before their food products are imported into China.  In addition, the 2015 Food Safety Law in its 
Articles 74 -83 stip ulates special regulations for certain food or food -related products (e.g. 
supplements, "formula food for special medicinal purposes "; and infant and follow -up formula and 
other special foods), which are subject to strict supervision and administration.  Enterprises 
producing these products must fulfil special registration and/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. Regis tration and record -filing formalities vary according to 
the product. " 
a. When will CNCA have established procedures for registration under the new Food Safety Law?   
Reply: Accoding to laws and administrative regulations including Food Safety Law and 
its imple mentation regulation, based on scientific risk analyses and measures of disease 
control and prevention, trying to minimize the registration 's influence on existing trade, 
CNCA, in accordance with Administrative Measures for Registration of Overseas 
Manufac turers of Imported Food (General Administration of Quality Supervision, 
Inspection and Quarantine of the People 's Republic of China Decree No.  145) , will 
enlarge the scope of Catalogue of Registration of Foreign Manufacturers of Imported 
Foods . An ample tr ansitional period in implementation will be arranged according to 
international convention. We will try our best to establish the procedures for 
registration by 2020.  
b. Does China believe that CNCA is adequately staffed to handle registrations under the new Food 
Safety Law?   
Reply: Yes, and we will continue to increase the number of staff.  
c. Please explain how consumer safety is enhanced by the new registration system.  
Reply: Please clarify what "the new registration system " refers to.  
Page 71,  paragraph 3.91:  The Secretariat report states that "China 's national enquiry point for 
SPS continues to be AQSIQ. " However, according to the WTO SPS Information Management 
System, it appears that MOFCOM is China 's WTO Notification and Enquiry Center.  Please clarify 
which ministry is the correct national enquiry point for SPS?  
Reply: Currently, China SPS Notification and Inquiry Center is responsible for China 's 
SPS notification and inquiry. Guidance is provided by China WTO Notification and Inquiry 
Center.  
Page 71,  paragra ph 3.91:  The Secretariat 's report notes that "China made some 
417 notifications regarding adopted SPS measures or measures that they were to adopt. " China 
failed to notify to the WTO numerous measures relating to revised plant, animal and food safety 
requirements and commodity standards, measures, such as:  Administrative Measures of 
Production License for Animal Feed and Feed Additives, issued by MOA and effective as of 
1 May 2012; Administrative Measures of New Feed and New Feed Additives,  issued by MOA an d 
effective as of 1 May 2012; Regulation on Product Approval Numbers for Feed Additive and Premix 
Feed (Amended Draft for Comments), issued by MOA on 1 March 2012; Regulation on Feed and 
Feed Additive Import Registration (Amended Draft for Comments), issue d by MOA on 
1 March  2012; Guidance on Formulating Acceptable Daily Intake Limit (ADI Limit) of Pesticide, 
MOA Public Notice No. 1825,  effective as of 25 August 2012;  Notice on Announcing and Soliciting 
Comments on Draft for Maximum Residue Limits of Averme ctins and 63 Other Kinds of Pesticides WT/TPR/M/3 42/Add.1  
 
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  in Food, issued by MOA on 25 March 2012; National Food Safety Standard for Maximum Residue 
Limits for Pesticides in Foods (GB 2763), issued by MOH on 1 December 2012; Determination of 
Impurities in Raw Milk and Dairy Products (GB 5413.30 -2010), issued by MOH; Standard 
Regarding Nutritional Fortification Substances in Foods (GB 14880 -2012); Aquatic Product 
Processing Firm Hygiene Management Norms (GB/T 23871 of 2009); Revised Maximum Residue 
Limits for Pesticides in Foo d (GB 2763 -2012); Draft Measure for Major Crop Seed Registration, 
issued by MOA on 27 February 2013;  National Food Safety Standard – Flavoring for Foods, issued 
by NHFPC (2013); National Food Safety Standard – Food Additive  Ethanol, issued by NHFPC 
(2013);  85 Pesticides (MOA No. 145), issued 10 October 2013; Order Banning the Entrustment 
and OEM Production or Repackaging Infant Formula Milk Powder (CFDA No. 43), issued by CFDA 
on 27 November 2013; Order on the Regulation of Supervision and Inspection of Inf ant Formula 
Milk Powder Processing Plants, (CFDA No. 43), issued by CFDA on 27 November 2013; Safety 
Examinations of New Food Raw Materials (NHFPC No. 1), issued by NHFPC 12 July 2013; 
Administrative Measure of Veterinary and Non -Veterinary Prescription Dr ugs (MOA Order No. 2), 
issued 11 September 2013; Dairy Import and Export Inspection and Quarantine Management 
(AQSIQ Decree No. 152), issued 24 January 2013; Implementation of Dairy Import and Export 
Inspection and Quarantine Management Decree 152 (AQSIQ N otice No. 53), issued 15 April 2013; 
Foreign Dairy Plant Registration Requirement (2013), issued by CNCA; National Food Safety 
Standard for Food Additive Marking (2013), issued by NHFPC; Food Additive Flavorings 
(Compounded Flavours) (GB 30616 -2014), issue d by NHFPC; No.1 Revision of the Determination 
of Protein in Foods (GB 5009.5 -2010), issued by NHFPC; Revised Maximum Residue Limits for 
Pesticides in Food (GB 2763), issued by NHFPC; Requirement on GMO Samples and Technical 
Information, issued December 20 12; Amendment of the Administrative Measures for Quarantine 
and Approval of Animal and Plant Imports issued by AQSIQ in September 2015; Decree 88 on the 
Amendment of the Provisions on Food Hygiene Supervision and Administration at Entry/Exit Ports 
issued b y AQSIQ in September 2015; Decree 103 on Amendment of the Administrative Measures 
for the Quantity and Weight Inspection and Appraisal of Import and Export Commodities issued by 
AQSIQ in September 2015 , Notice concerning Soliciting Comments on the Administ rative Measures 
for Foreign Food Importer 's Review and Inspection of Overseas Enterprises issued by AQSIQ in 
September 2015 ; Administrative Measures for National Border Hygiene Permits issued by AQSIQ in 
2015; Administrative Measures on Port Inspection and  Supervision of Imported Food issued by 
AQSIQ in  November 2015 ; Detailed Rules of Supervision and Administration on the Safety of the 
Foods Imported via Cross -Border E -Commerce under the Bonded Internet Shopping Model issued 
by AQSIQ in 2015;  Draft Impleme nting Rules for the 2015 Food Safety Law issued by CFDA in 
December 2015; Administrative Measures for Review and Inspection of Offshore Enterprises by 
China -Bound Food Importers issued by CFDA in 2015 ; Notice of China Food and Drug 
Administration on Reques ting Comments on the Measures for Supervision, Inspection and 
Administration of Food Production and Operation issued by CFDA in 2015 ; Notice of the State Food 
and Drug Administration on Seeking Comments for the Measures for Supervision and 
Administration o f Online Food Operation issued by CFDA in 2015 ; MRL Standard of 90 Pesticides 
(including 2,4 -D-dimethylammonium) in Foods issued by MOA in November 2015; Adoption of the 
Codex Alimentarius (CAC) MRL Standards issued by MOA in November 2015;  Fresh (Frozen) 
Animal and Poultry Products and Explanations of Standard Development issued by NHFPC October 
2015; Microbiological Examination:  Salmonella and Explanations of Standard Development issued 
by NHFPC in October 2015 ; Microbiological Examination:  Enumeration of  coliforms and 
explanations of standard development issued by the NHFPC in  October 2015 ; Microbiological 
Examination:  Enterobacter sakazakii (Cronobacter spp.) and explanations of standard development 
issued by NHFPC in October 2015 ; Microbiological Examin ation:  Determination of total plate count 
and explanations of standard development issued by NHFPC in October 2015 ; Microbiological 
Examination:  Enumeration of Molds and Yeasts and explanations of standard development issued 
by NHFPC in October 2015 ; Lactic acid Bacteria and explanations of standard development issued 
by NHFPC in October 2015 ; Determination of Norovirus in Foods and explanations of standard 
development issued by NHFPC October 2015; Official Certificate Requirement for Imported Foods 
communi cated by a letter to the U.S. Embassy in Beijing from AQSIQ on April 25, 2016;  Foods for 
Special Medical Purposes issued by CFDA in early 2016; Requirements for Stability Study on 
Formula Foods for Special Medical Purpose issued by CFDA;  Quality Management  Specification on 
Clinical Trial of Formula Food for Special Medical Purpose ; Points and Judgment Rules of Field 
Check on the Registered Manufacturer of the Formula Food for Special Medical Purpose issued by 
CFDA;  China 's Welfare Code for Feed Lots and Sla ughterhouses issued by the Chinese Veterinary 
Medical Association in February 2016 ; Concentrated Liquid for food processing (Juice Plasm) 
(GB17325 -2015) issued by NHFPC in February 2016 ; and Beverages (GB7101 -2015) issued by 
NHFPC in February 2016.  WT/TPR/M/3 42/Add.1  
 
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  a. In lig ht of the obligations that China 's National Notification Authority (NNA) has housed in 
MOFCOM regarding the notification of SPS measures as specified under Annex B of the SPS 
Agreement, does MOFCOM plan to notify the above -identified measures to the WTO?   
Reply: Article 5 of Annex B too the SPS Agreement specifies what measures should be 
notified to the WTO. China will assess the above measures according to Article 5 
stipulations to determine which measures need to be notified.  
b. What steps is MOFCOM taking t o ensure that in the future proposed sanitary or phytosanitary 
regulations not substantially the same as the content of an international standard, guideline, or 
recommendation and with significant effect on trade of other Members will be notified to the WT O 
for comment prior to adoption and enforcement?   
Reply: China has always been performing notification obligations according to Annex B 
of the SPS Agreement. Between 2013 and 2016, China has made 417 notifications for 
SPS regulations implemented or to be i mplemented.  
c. What is China 's process for taking into account comments from domestic and international 
stakeholders prior to final adoption of a measure?  
Reply: Paragraph (d) of Article 5 of Annex B of the SPS Agreement states: "Without 
discrimination, allow  reasonable time for other Members to make comments in writing, 
discuss these comments upon request, and take the comments and the results of the 
discussions into account. " China will carry out itswork according to this paragraph.  
3.2. Measures Directly Af fecting Exports  
3.2.2  Export taxes, charges, and levies  
Page 73, paragraphs 3.95-3.97: The Secretariat 's report states that China continues to apply 
export duties on a wide range of products.  It explains that between 2013 and 2015 China imposed 
export du ties on 4.1% of all tariff lines at the HS - 8-digit level.  Table 3.10 lists 416 tariff lines at 
the HS 8 -digit level on which China imposed export duties in 2015.  The United States notes that, 
as two panels and the Appellate Body have found, paragraph 11.3  of part I of China 's WTO 
Protocol of Accession commits China to eliminate all export duties unless specifically provided for 
in Annex 6 of the Protocol or applied in conformity with the provisions of Article VIII of the GATT 
1994.  Please explain why China  continues to impose export duties on products that are not listed 
in Protocol Annex 6.  Does China plan to eliminate these export duties?  If so, when?   
Reply: China  always  respect s the WTO rules. The export duties on some raw materials 
reflect  the scientif ic regulation o f resource product s to achieve sustainable development  
against the ever severe resources and environment pressure, and are a component in 
the comprehensive measures to strengthen eco -environment protection. It is in line with 
WTO rules. Fric tions related to export duties will be resolved according to WTO dispute 
resolution process.  Members can follow the discussion under the dispute settlement 
mechanism . 
3.2.3 Export prohibitions, restrictions, and licensing  
Page 75,  paragraph 3.104:  In para graph 3.104, the Secretariat 's report states that "China 
continues to impose global and destination -specific export quotas, " including with respect to a 
number of industrial raw material inputs.  The report notes that China removed its export quotas 
on rare  earths, tungsten and molybdenum, which the panel and the Appellate Body found to be 
WTO-inconsistent in DS431, DS432, and DS433.  Please explain how China justifies the remaining 
export quotas on industrial raw material inputs in light of China 's WTO oblig ations?  
Reply: The export quota on industrial raw material s of China is to achieve the policy goal 
of protecting natural resources and environment to realize sustainable development. 
WTO emphasizes free trade and also respects national sovereignty o f natur al resources 
and allows members to take necessary measures to accomplish  objectives of protecting 
resources and environment. China always abides  by the rules of WTO and honors its WT/TPR/M/3 42/Add.1  
 
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  commitments to  the WTO. China regulates the export of industrial raw materia ls 
according to WTO rules.  
3.2.4 Export support and promotion  
Page 76, paragraphs 3.107:  The Secretariat 's report states: "The most recent notification to the 
WTO regarding export subsidies, in which China indicated that it did not maintain nor had it 
introduced any export subsidies on agricultural products, covers the year 2012. " The report adds 
that China did not provide any information covering the period under review.   
a. Can China clarify whether its 2012 notification, and in particular its statement tha t it did not 
maintain nor had it introduced any export subsidies on agricultural products, applies only to 
central government measures?  Was this notification intended to provide any information on 
measures issued by sub -central governments in China?   
b. Has C hina introduced any export subsidies on agricultural products since 2012?   
Reply to question a & b: China notified in 2015 agricultural export subsidy commitments 
(Table  ES:1) for 2013 and 2014. China has honored its commitment at the accession to 
WTO that  it would give no export subsidy for agricultural products.   
Page 76,  paragraph 3.109:  The Secretariat 's report explains that in China the value -added tax 
(VAT) may be rebated on exports, but exporters are generally entitled to VAT rebates lower than 
the V AT paid.  In connection with the 2012 Trade Policy Review of China, the Secretariat 's report 
noted (in  paragraph 143 of Part III) that "[t]he difference between the two rates constitutes a levy 
on exports, which may in turn constitute assistance to downstre am processing of the products 
affected, and could affect China 's terms of trade. " It added that "China adjusts VAT rebate rates as 
part of its industrial policies, to control, restrict, or otherwise 'manage ' the export of certain 
products. " The United Stat es notes as well that moving to a trade -neutral VAT system, in which 
input VAT is rebated in full for all exports, would help the market play a decisive role in allocating 
resources in China, consistent with one of the key reforms announced by the Third Pl enum 
Decision.   
a. Please provide an update on China 's consideration of the possibility of adopting a VAT rebate 
policy pursuant to which the input VAT is automatically rebated in full for all exports, consistent 
with the policies prevailing in other WTO Memb ers with a VAT system.   
b. When does China anticipate that it will be able to adopt such a policy?  Please explain.  
Reply to question a & b: There has been no latest adjustment plan for the VAT rebate 
policy now.  
3.2.5 Export finance, insurance and guarantees   
Page 77,  paragraph 3.111: The Secretariat Report states that "at least two institutions " provide 
export finance, insurance and guarantees, i.e., China Eximbank and SINOSURE.  What other 
institutions are providing export credits or export credit -like produc ts? What is the nature of these 
products (purpose, terms, etc.)?  
Reply: Some of the commercial insurance companies in China also conduct short -term 
export credits insurance, including People 's Insurance Company of China, Ping An 
Insurance Group, China Pac ific Insurance Company and China Continent Insurance. 
These companies provide short -term export credits insurance according to market 
principle.  
Page 77,  paragraph 3.112:  The Secretariat 's report states that the China Eximbank provides 
export financing tha t covers agricultural products through export buyer and seller programs.  The 
United States notes that China reported "nil" to providing any officially supported export credits for 
agriculture in the 2016 WTO Committee on Agriculture Export Competition ques tionnaire 
(G/AG/W/125/Rev.4).  Can China explain why this program was not reported in the questionnaire?  
Does China intend to revise its response to the questionnaire to include China Exim Bank?  WT/TPR/M/3 42/Add.1  
 
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  Reply: China Exim Bank provides working capital loans to Chine se exporters of 
agricultural products. This is not export financing for agricultural products covered by 
Ministerial Decision on Export Competition. Therefore, it is unnecessary to revise the 
response.  
SINOSURE supports China 's enterprises in export of ag ricultural products through 
providing short -term export credits insurance, but it is of commercial nature and 
conducted by SINOSURE based on market condition, not an "officially supported export 
credits for agriculture ". 
Page 77,  paragraph 3.112:  The Secre tariat 's report states that China Eximbank "provides export 
financing services in areas where social and commercial capital are unwilling to enter " but at the 
same time states that "[t]he authorities noted that loans are granted at commercial interest 
rates." 
a. Can China explain how the authorities determine an appropriate commercial interest rate 
"where commercial capital [is] unwilling to enter "? 
Reply: "Areas where social and commercial capital are unwilling to enter " often feature 
long investment circle, high risk and low benefit. China Exim Bank as an official export 
credit organization provides export financing at low benefit for these areas that need 
official export credit support. The interest rate of export credit of China Exim Bank is set 
according t o principles as follow: RMB credit adopts interest rate policy of People 's Bank 
of China.Lending rate is adjusted on the benchmark interest rate. The fixed interest rate 
for short -term foreign currency credit (of 1  year or less than 1 year) is set by addin g 
certain percentage points on LIBOR value. The fixed interest rate of medium and long -
term foreign currency credit (of over 1 year) is set by adding certain percentage points 
on CIRRs. The floating interest rate of foreign currency loan is quoted by addin g certain 
percentage points on LIBOR value. The benchmark interest rate can be chosen from the 
LIBOR value of one, three, six or twelve months.  
b. What are the different characteristics of a government concessional loan versus a preferential 
export buyer cred it? How do they differ?  Are concessional loans tied to exports?   
Reply: Government concessional loan and preferential export buyers ' credit are 
intergovernmental South -South cooperation with the goal of mutual benefit and shared 
development.  
c. The report pro vides totals and graphs for seller 's credits and buyer 's credits but no amounts for 
concessional loans and preferential export buyer credits.  Please provide these amounts.   
Reply: Government concessional loan and preferential export buyer credit are interg overnmental 
South -South cooperation with the goal of mutual benefit and shared development.  
d. Does China Eximbank offer seller 's credits to Chinese enterprises with export facilities in other 
countries?   
Reply: Please explain what "Chinese enterprises with e xport facilities in other countries " 
refers to. All companies that have registered at administrative department of industry 
and commerce and with the independent legal person status can apply for export sellers ' 
credit of China Exim Bank. It also should me et application conditions for the export 
sellers ' credit of China Exim Bank  
e. What are the criteria for an enterprise to be eligible to receive China Eximbank seller 's credit 
support? Are seller 's credits offered exclusively on the condition of an export con tract?  For 
example, would China Eximbank ever offer a seller 's credit that could be used to finance exports 
but is not contingent on a specific export contract?  In the case of a seller 's credit, does China 
Eximbank assess the risk of the foreign buyer or o nly the domestic exporter?  
Reply: The export seller 's credit of China Exim Bank is mainly working capital loans for 
domestic export companies for the borrowers ' turnover need in production and WT/TPR/M/3 42/Add.1  
 
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  operation. The products of these companies can be sold in China 's domestic market and 
overseas market as well. China Exim Bank does not do risk assessment of the foreign 
buyer in case of a seller 's credit.  
Page 78, paragraphs 3.115 -3.116: The Secretariat 's report states that the official export credit 
agency, SINOSURE , provides export credit insurance.  
a. Does SINOSURE offer export credit insurance that is untied, i.e., offer is not contingent on 
procurement from China?  
Reply: SINOSURE does not offer untied export credit insurance.  
b. According to the OECD findings on the Chinese Export Credit Policies and Programs 
(TAD/ECG(2015)3), agricultural products accounted for 3 % of SINOSURE 's short term and medium 
long term export credit insurance in 2012.  China reported "nil" to providing any officially supported 
export credit s for agriculture in the 2016 WTO Committee on Agriculture Export Competition 
questionnaire (G/AG/W/125/Rev.4).  Can China explain why this program was not reported in the 
questionnaire?  Does China intend to revise its answer to the questionnaire to include  SINOSURE 's 
export credit insurance?  
Reply: All the above business items of export credit insurance are commercial activities 
conducted by SINOSURE under market conditions without financial support from the 
government. Therefore, the answer is "Nil" regard ing this item in the export competition 
questionnaire. China will adjust its answer in 2016 questionnaire.  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 80,  paragraph 3.120:  There appears to be a general investment system in China funde d from 
the central budget.  See Interim Measures for the Administration of Central Budget Investment 
Subsidy and Interest Discount Projects, issued by the National Development and Reform 
Commission, Order No. 31 (8  June 2005); Interim Measures for the Admin istration of Central 
Budget Investment Subsidy and Interest Discount Projects, issued by the National Development 
and Reform Commission, Order  No. 3 (15 June 2013).  Article 3 of the 2013 measure states:   
Investment subsidies mentioned in these measures ref er to investment subsidies given to local 
governments and investment subsidy projects given by the National Development and Reform 
Commission to qualifying enterprises.  
Interest discounts mentioned in these measures refer to loan interest subsidies given by the 
National Development and Reform Commission to qualifying investment projects that utilize mid - 
to long -term bank loans.   
Investment subsidies and investment discounts are gratis investments.  
Please explain the nature and objective of this program.  Why has it not been notified pursuant to 
the notification requirements of Article 25 of the Subsidies Agreement?  
Reply: The Measures for the Administration of Central Budget Investment Subsidy and 
Interest Discount Projects ( NDRC  No. 3) is the management m easures for investment 
subsidy and interest discount within the central budget, and does not involve  allocation 
or use of specific funds. The SCM Agreement of WTO requires the notification of  
subsidies  with specific ity. Since  the Measure s is not  specific  in nature,  it doesn 't need to 
be notif ied to the  WTO according to Article 25  of the SCM Agreement . 
Page 80,  paragraph 3.121:  In China's 2014 Trade Policy Review  (see WT/TPR/S/300, page 88,  
paragraph 3.126, and pages 191 -198, Table A3.6) , the Secretariat 's report included information 
that it had uncovered 30 support programs for China's fisheries sector. The Secretariat's report 
noted that China had not notified any of these support programs to the Committee on Subsidies 
and Countervailing Measures and that C hina could not verify any of the information on these 
support programs provided to it by the Secretariat.  During the ensuing Trade Policy Review WT/TPR/M/3 42/Add.1  
 
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  meetings in 2014, China responded to Members' questions about these support programs by 
stating that it needed more time to identify and verify information regarding these support 
programs.  However, no further information was provided.  In April 2015, the United States 
submitted questions to China with respect to these programs and other fishery support measures 
the United States had uncovered through its own efforts.  (See G/SCM/Q2/CHN/52, 17 April 2015 .) 
China did not respond to the United States' request.  Earlier this year, the United States "counter 
notified " over 40 Chinese fisheries subsidy measures, nearly all of which were not included in  
China 's most recent subsidy notification.  (See G/SCM/Q2/CHN/59; 21 April 2016 .) When will China 
provide a full notification of its wild capture fisheries subsidies?  
Reply: Just as China mentioned at the regular spring session of SCM committee held in 
April 2016, most of the contents of the US document (G/SCM/Q2/CHN/59) overlapped 
those of US Document G/SCM/Q2/CHN/52 submitted in April 2015, and some of the 
programs already notified by China were still included in it.  
For exampl e, the Item No.  35 of the document, Public Notice on the  Issues Related to 
the Implementation of Preferential Corporate Income Taxation for Agriculture, Forestry, 
Animal Husbandry and Fishery Projects, State Administration of Taxation [2011] No. 48  
has alr eady been notified by China in the program No. 42 of its latest central subsidy 
notification; Item No.  42 of the US document, Ministry of Agriculture 2014 Guiding 
Opinions on Implementing Subsidies for Purchase of Agriculture Equipment, Ministry of 
Finance  and Ministry of Agriculture, Nong Ban Cai [2014] No. 6  has been notified by 
China in the  program No. 47 of its latest central subsidy notification. It is of crucial 
importance for a member to carefully study the notifications already submitted by 
another and then raise relevant questions. China once again call on the United States to 
do so seriously, so as to avoid counter -notificatifying what 's already notified by other 
members and reduce their burden of unnecessary and repeated verifications and 
clarific ations. Currently, China is still studying the US document and will, based on 
verified facts, provide feedbacks at the regular session of SCM committee in good time. 
China 's latest notification on central subsidy policies already included three fishery 
related subsidies. At present, China is reviewing fishery subsidy and will deliberate on 
the notification isuue based on the review results and the working progress.   
Page 80,  paragraph 3.123:  Over the past two years, Chinese central and local governments 
have established and directed various industrial development funds, including for the integrated 
circuits industry.  For example, in June 2014, the State Council released the Guidelines to Promote 
National Integrated Circuit (IC) Industry Development.  Under th ese Guidelines, the State Council 
approved the establishment of a National IC Investment Fund Co. Ltd. (IC Fund), pursuant to the 
State Council Notification Regarding National Integrated Circuits Industry Investment Fund 
Establishment Approval (Guo Han [20 14] No. 48).  The two largest shareholders of the IC Fund are 
the Ministry of Finance (MOF), and the China Development Bank.  The IC Fund appears to operate 
under the direction of the National IC Industry Leading Small Group, which is chaired by a Vice 
Premi er of the State Council, with the stated goal of implementing national policy.  What is China 's 
national policy with respect to the development of it semiconductor industry?  Given the significant 
size of these programs (i.e., US$21 billion for the National IC Fund, and more at the local level), 
what steps is China taking to ensure that these funds do not harm the global semiconductor 
industry?  
Reply: 1) The expression "The IC Fund appears to operate under the direction of the 
National IC Industry Leading Sma ll Group " is not correct. The IC Fund is a private equity 
fund with its business area of equity investment in integrated circuit industry. The IC 
Fund 's operation is completely based on market principles. Its investment and 
internaitonal cooperation are ca rried out by the fund management company according to 
legal agreements such as the company charter. The major decisions are made by the 
board with voting system. The government does not intervene in the decision -making of 
the board let alone give direction . 
2) The policy of IC industry applies all the same to all IC enterprises no matter 
domestically -funded or not. This is to create a fair, transparent and just environment of 
market competition.  WT/TPR/M/3 42/Add.1  
 
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  3) Chinese IC industry is an important engine of global semico nductor industry. Its 
healthy and sound development is important for the sustainable development for global 
semiconductor industry. The fund is just medium -sized, equaling the R&D input of Intel 
and Qualcomm in a whole year. The fund 's influence on Chinese  IC industry as well as 
the global semiconductor industry is very limited let alone "harm "; meanwhile, the fund 
chooses the object of its investment strictly according to Chinese laws and WTO rules. 
Its has a consistent standard of  deciding the investment without any discrimination in 
terms of ownership. The idea of openness and cooperation has always been involved in 
the fund 's operation; through investing in equity and promoting M&A, the fund tries to 
help the receiver of investment improve its operation and product quality to promote 
orderly competition in the market.  
Pages 80 -84, paragraphs 3.121 -3.129:  With respect to both agricultural subsidies and 
industrial subsidies, the United States notes that numerous WTO Members have on many 
occasions identifie d and raised questions about a wide range of unreported Chinese government 
subsidy programs, and many of these subsidy programs have appeared to be contingent upon 
export performance.  For example, the United States recently submitted questions to China bef ore 
the WTO Committee on Subsidies and  
Countervailing Measures identifying and requesting information on a number of fishery -related 
subsidy programs administered by both central and sub -central level governments in China that 
appear to provide financial incentives that are contingent upon exportation.  (See 
G/SCM/Q2/CHN/59.)  Several of these programs were identified in the Secretariat 's report for 
China 's 2014 TPR, in which the Secretariat included information that it had uncovered on 
30 support programs f or China 's fisheries sector.  The Secretariat 's report noted that China had not 
notified any of these support programs to the Committee on Subsidies and Countervailing 
Measures. (See WT/TPR/S/300, page 88,  paragraph 3.126, and pages 191 -198, Table A3.6.)  Other 
examples can be found in the more than 400 Chinese government support programs included in 
the 2011, 2014, 2015 and 2016 U.S. submissions under Article 25.10 of the Agreement on 
Subsidies and Countervailing Measures.  All of this information was drawn f rom publicly available 
Chinese government sources, and many of the unreported subsidy programs identified in these 
submissions appear to be prohibited export subsidies.  Although China has submitted three subsidy 
notifications to the WTO, China has yet to r eport any sub -central government subsidy programs.  
Moreover, the Secretariat 's report states that "[n]o new information was supplied to the 
Secretariat regarding support measures at the sub -central level.  However, the authorities noted 
that they are prepar ing a notification of programs maintained at the sub -central level. " The report 
goes on to state that "no information was provided in the context of this Review regarding these 
specific programs or China 's industrial policies.  The identification of these p rograms remains 
difficult . . . . " 
a. Can China confirm the details of these programs listed in the U.S. counter -notifications and 
explain each of these programs in light of Article 3 of the Subsidies Agreement?  
Reply: As to the contents of the U.S. counter -notifications, China has made clarifications 
at several regular sessions of SCM committee. Please refer to relevant meeting minutes. 
Meanwhile, please study carefully the notifications already submitted by members.  
b. Can China explain why it was not able to p rovide the Secretariat with industrial subsidy 
information for this review period?  
Reply: China does not agree to the point of "there are other support programs and other 
means  to support different industries " and "not able to provide the Secretariat with 
industrial subsidy  information for this review period " in the Report by the Secretariat for 
this review . China noted that the wording  in paragraph 3.124 comes from 
paragraph  3.125 of the 2014 China TPR Report by the Secretariat. At that time, China 
had not  submitted the most recent notification on subsidies. However, in 2015, China 
already  submitted its notification on subsid ies at central government level for 2009 -
2014, and before the review meeting, its  first notification on subsidies at sub -central 
gover nment level , covering 14 years from 20 01 to 2014. These notifications contain  the 
subsidy policies that are required to be notif ied to the  WTO, according to  China 's 
understanding of the relevant definitions and rules requirements  of the SCM Agreement. WT/TPR/M/3 42/Add.1  
 
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  It's a pity that  the relevant paragraphs of Secretariat's Report failed to be updated in 
the light of  the above -mentioned important latest  developments . 
c. The United States notes that China has continued to claim for several years that it is actively 
collecting information regarding sub -central government support programs.  Can China commit to a 
deadline by which it expects to complete its notification of sub -central government support 
measures?  
Reply: China attaches great importance to fulfilling the transparency  obligations under 
the WTO agreements. Since the last review, China has stepped up its efforts in this 
respect and and submitted to the WTO in 2015Notification on Subsidies at central 
government level for 2009 -2014. Prior to this review conference, China h ad already 
submitted to the WTO Notification on Subsidies at sub -central government level for 
2001 -2014, which was China 's first Notification on Subsidies at sub -central government 
level.  
d. Can China provide details regarding the support measures relating to  its energy sector?  
Specifically, the Secretariat 's report states that in 2015 the Ministry of Finance circulated the 
Interim Measures on the Administration of the Renewable Energy Development Special Fund, 
which aim at supporting the production and use of  renewable energy and "new" energy.  Can China 
explain what type of financial support is being provided under this fund?  Is any of the support 
contingent upon export performance or the use of domestic over imported goods?  
Reply: The support is aimed at prom oting the development and exploitation of 
renewable energy to optimize energy structure and gurantee energy security.  
e. Table 3.14 provides information regarding various support measures in the energy sector that 
were in place in 2015.  Can China explain whet her these measures are the only support measures 
in the energy sector maintained by China in 2015?   
Reply: For support measures in the energy sector, please refer to Program No. 14 -26 
and No. 68 -79 in China 's Notification on Subsidies at central government  level for 2009 -
2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN). Information 
listed in Table 3.14 by the Secretariat has not been confirmed by the Chinese 
authorities.  
Page 83,  paragraph 3.127:  The Secretariat 's report addresses financial support provided by 
Chinese financial institutions to important areas of the economy and disadvantaged regions. Please 
provide information on the types of trade -related financial support programs operated by China 
Development Bank during the years 2013 -2015.  
Reply : China Developent Bank is a financial institution that focuses on development. Its 
business area does not include providing financial support for trade.  
Page 83,  paragraph 3.129:  In Table 3.14, the Secretariat 's report lists two discriminatory tax 
measure s that made a VAT exemption available in connection with the purchase of certain 
domestically produced aircraft but not similar imported aircraft.  In DS501, the United States 
challenged these measures not only as inconsistent with Article III:4 of the GATT  1994, but also 
on the ground that the Chinese government had not published these measures as required by 
Article X:1 of the GATT 1994 and Part I, Paragraph 2(C)(1), of China 's WTO Protocol of Accession.  
Are these two measures the only discriminatory tax m easures that China has failed to publish?  Are 
there other unpublished discriminatory tax measures that China is currently enforcing?  
Reply: The support policies for domestically produced regional aircraft listed in 
Table  3.14 were abolished in 2013.  
3.3.3 National security review of concentrations  
Page 90,  paragraph 3.160:  The Secretariat 's report provides an overview of China 's national 
security review system for mergers and acquisitions of domestic enterprises by foreign investors.  
Does China 's national s ecurity review system in any circumstances require the review of a WT/TPR/M/3 42/Add.1  
 
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  greenfield investment, i.e., a foreign investor seeks to establish a foreign -owned enterprise in 
China?   
Reply: Currently, only the national security review system in the pilot free trade z ones is 
applicable to greenfield investment.  
Page 91,  paragraph 3.163:  The Secretariat 's report provides an overview of China 's national 
security review system in Pilot Free Trade Zones.   
a. Does China 's national security review system in any circumstances re quire the review of a 
greenfield investment in a Pilot Free Trade Zone?  
Reply: Yes.  
b. The Secretariat 's report notes that special procedures apply to national security reviews of 
foreign investment in the financial sector in Pilot Free Trade Zones.  Do these  procedures in any 
circumstances require the review of a greenfield investment in a Pilot Free Trade Zone?  
Reply: Currently, the security review system for foreign investment in the financial 
sector of Pilot Free Trade Zones is still being formulated.  
3.3.5 State trading and state -owned enterprises  
Page 93,  paragraph 3.172:  The Secretariat 's report states that in 2015 China submitted a new 
and full notification regarding its state trading enterprises (STEs) to the WTO.  Questions regarding 
this notification were posed by Australia, the European Union and the United States in the Working 
Party on State Trading Enterprises.  To date, China has not submitted its replies to these questions.   
a. When will China respond to the questions posed by Australia, the European  Union and the 
United States?   
b. These questions raise a number of format and data issues regarding China 's notification and 
call into question whether what China submitted was actually a proper notification.  Will China 
submit a corrected notification to rec tify these issues and, if so, when?  
c. China 's notification provides very little information regarding the status of the entities listed in 
the August 2014 counter notification submitted by the United States.  As stated in the counter 
notification, of the 153 STEs counter -notified, 44 were ones that had been explicitly self -identified 
by China as STEs or otherwise qualify as STEs under paragraph 1 of the Understanding on the 
Interpretation of Article XVII of the General Agreement on Tariffs and Trade 1994.  Please explain 
why China, whether through its notification or otherwise, has not provided an update to Members 
regarding these self -identified STEs.  In past Working Party meetings, China stated that it was 
reviewing the counter notification and reserved the ri ght to make comments or clarifications.  If 
China is unable to provide a response to some or all of the information contained in the counter 
notification, please explain why.  
Reply to a -c: Questions concerning the STE notification  for period 2003 -2014  pose d by 
the European Union and Australia have been replied in the Working Party on State 
Trading Enterprises this June. Please check the relevent meeting minute s and written 
reply provided  by China  thereafter . As for the questions raised by the United States in 
this meeting, China will reply to them in the Working Party on State Trading Enterprises 
this October according to relevant rules. As for the misunderstandings caused by  
individual translation s in the notification, China will submit a  corrigendum  to the  WTO in 
due course . 
As the STEs notification for period 2003 -2014 shows, since 2003, except that the state 
trading administration on individual products have been canceled or suspended, and 
some STEs have been merged, separated or have their names changed,  China 's state 
trade management system has generally had no obvious changes. What the United 
States should pay attention to is that, China did not merely inform 25 STEs in this 
notification. The name list of STEs exporting products including antimony, tung sten, and WT/TPR/M/3 42/Add.1  
 
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  silver was released through the annual document of the Ministry of Commerce, which 
include many enterprises. We have also noticed that many enterprises mentioned in the 
counter notification submitted by the United States  were the STEs back in 200 1, and the 
information has not been updated. For the latest information, please refer to China 's 
STEs notification for 2003 -2014.  
Page 94,  paragraph 3.173:  The Secretariat 's report states that the quantities imported under 
state trading are not available.   
a. The United States understands that the percentage allocations for state trading enterprises for 
China 's TRQs for 2013 -2015 are listed in Table 3.17.  Please provide the fill rates for each of these 
TRQs by state trading enterprises and by private enterpris es under initial allocations.  Please also 
indicate how much of the initial TRQ reserved for entry through the STE is made available for 
reallocation in September for the years in question.  
Reply: Since its entry into the WTO, China has earnestly honored i ts commitment. The 
TRQs are allocated and reallocated each year according to Interim Measures for the 
Administration of Import Tariff Quotas of Agricultural Products . 
b. Please explain why China does not regularly publish information on the fill rates for eac h TRQ 
by state trading enterprises and by private enterprises.  
Reply: China has notified to WTO the import of agricultural products subject to TRQs. 
There is no such requirement that members shou regularly publish information on the 
fill rates for TRQ by s tate trading enterprises and by private enterprises.  
c. Please explain why China stopped providing information to the WTO on the total TRQ shares 
allocated, rejected and goods imported at over -quota rates.  China 's last notification including this 
information was to the Market Access Committee in 2011. The United States notes that Annex 1A, 
Section IV, paragraph 1, requires China to provide "evidence " of a consistent national allocation 
and reallocation policy on an annual basis, including the provision of TRQ fill rates, reallocated 
quota or TRQ applied for, the volume and values of allocation and reallocation denied, the value of 
any goods that entered over quota, and the time taken to grant a TRQ allocation.  Please provide 
the total TRQ shares allocated, reje cted and goods imported at over -quota rates, as well as the 
percent of the TRQ reallocations by state trading enterprises and by private enterprises, for 
2013-2015.   
Reply: Annex 1A is about information China should provide in transitional review 
mechanism . According to Paragraph 4 of Article 18 of Protocol on the Accession of the 
People 's Republic of China , the transitiaonl review mechanism "will take place after 
accession in each year for eight years. Thereafter there will be a final review in year 10 
or at an earlier date decided by the General Council. " In 2011, the final review of the 
transitional review mechanism for China has already been finished. The Chinese 
government has seriously honored all its commitments including providing Annex 1A 
informatio n. Thereafter, China no longer needd to supply relevant information to the 
WTO.  
d. Please explain how China ensures that the state trading share of the TRQ is made available to 
end users (including private end users), grain reserves, and other government enti ties in a 
predictable and transparent manner.   
Reply: The Chinese government has allocated TRQs to state trading and non -state 
trading enterprises  in a transparent manner including the so -called "end users ". The 
state trading enterprises themselves are als o end users. If private enterprises, grain 
reserves and other government entities need to purchase grain, they can contact 
directly with the state trading enterprises.  
e. The United States notes that Table 3.18 lists enterprises that may import coproducts sub ject to 
the STE share of the TRQ.  Please confirm that COFCO, Jilian Grain and Heilongjiang Beidahuang 
Agriculture Group Corporation are all eligible enterprises for importing rice and corn.   WT/TPR/M/3 42/Add.1  
 
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  Reply: The Chinese government confirms that the three enterprises  listed above are 
state trading enterprises, among which COFCO and Jiliang Grain were approved state 
trading enterprises at China 's accession to the WTO, while Heilongjiang Beidahuang 
Agriculture Group Coporation was approved as state trading enterprise in  2015. To 
increase the number of state trading enterprises can help strengthen the effect of 
market mechanism. Besides, according to Annex 2A1 of Protocol on the Accession of the 
People 's Republic of China , COFCO is the only state trading enterprise in Chi na qualified 
to import grain while Jiliang Grain and Heilongjiang Beidahuang Agriculture Group 
Corporation can only export grain.  
f. China 's state trading notification seems to imply that only COFCO actually imported rice and 
corn between 2003 and 2014.  Please explain the reasons why the other two enterprises did not 
import corn or rice.  Were these shares surrendered and reallocated?   
Reply: Please refer to the reply to the above  question.  
g. The United States notes that the Secretariat 's report fails to provide any information on the 
enterprises approved for wheat.  Please identify the eligible enterprises for wheat imports subject 
to the STE share of the TRQ.  
Reply: According to Annex 2A1 of Protocol on the Accession of the People 's Republic of 
China , COFCO is a state trading enterprise that can import wheat.  
h. China 's state trading notification also aggregates import statistics for wheat, corn, and rice into 
a single "grains " category.  Please explain why import statistics are not provided for each 
commodity.  
Reply:  According to Annex 2A1 of Protocol on the Accession of the People 's Republic of 
China , the category of products that state trading enterprise can import is "grain ". 
China 's STE notification is conducted according to the category of state trading  
product(i mport) listed in Annex 2A1 of the Protocol.  
i. Does the state trading enterprise allocate cotton imports under the TRQ by country?  Of the TRQ 
allocated to state -trading enterprises, what percentage was used by STEs and/or private 
entities?  If not imported by the STE, was this section of the TRQ reallocated?  Please provide the 
most recent reallocation notification, a description of the volume of quota allocation returned by 
private and STE entities, and the volume reallocated.  
Reply: TRQ for cotton is a global quota which is not allocated by country. The allocation 
of TRQs for agricultural products such as cotton is done according to Interim Measures 
for the Administration of Import Tariff Quotas of Agricultural Products (NDRC -MOFCOM 
Decree [2013] No.  4). Accord ing to the principles of fairness, transparency and 
non-discrimination, the total amount of annual TRQs of imported agricultural products, 
proportion of state trading quota, application conditions, allocation principles and 
relevant procedures are publishe d on official website and the reallocation notice of TRQs 
of imported agricultural products is published in a timely manner.  
Page 95,  paragraph 3.174:  The Secretariat 's report states that there are state trading 
arrangements for exports of certain agricult ural products.   
a. Are there any government -backed export guarantees for these state trading arrangements, 
particularly for agricultural exports?   
Reply: There are not any government -backed export guarantees for the agricultural 
exports of state trading enter prises.  
b. In Table 3.18, entitled "Export products subject to state -trading arrangements, " rice and corn 
are exported through COFCO, a state trading agency.  Does COFCO provide any government -
backed guarantees or financing for its agricultural exports?  Do the  other enterprises exporting rice, 
corn, and cotton, such as Jilin Grain Group Export & Import Company, Heilongjang Beidahuang 
Agricultural Group Corporation, Chinatex Cotton Import & Export Corporation, Xinjiang Uygur WT/TPR/M/3 42/Add.1  
 
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  Autonomous Region Cotton and Jute Imp ort & Export Co., Xinjiang Yin Long International 
Agricultural Co., and China National Cotton Reserve Corporation, provide government -backed 
guarantees for their agricultural exports?  Please explain.  
Reply: State trading enterprises have not provided gover nment -backed guarantees for 
their agricultural exports.  
c. Please provide information on the volume of cotton exports subject to state trading.  
Reply: Please refer to China 's STE notification . 
Page 97,  paragraph 3.178:  The Secretariat's report states that the  number of SOEs under the 
supervision of SASAC is declining according to the report due to "ongoing restructuring of SOEs. " 
The report goes on to note that, despite ongoing reforms, SOEs continue to have an important role 
in a number of key sectors like te chnology, natural resources, energy and transportation.  In 
addition to streamlining and reducing the number of SOEs, how, if at all, are the reforms 
addressing systemic problems in the SOE system, such as inefficiency, unprofitability, excess 
capacity, and  a lack of transparency?  Please explain.  
Reply: With regard to the above -mentioned issues, China is deepenning the reform 
ofstate -owned enterprises (SOEs) to get them streamlined and to enhance their 
competitiveness through reforms and restructuring.  
Page 97, paragraph 3.178:  The Secretariat 's report notes in Table 3.21, entitled ( "Ten largest 
state-owned enterprises, " that the sixth largest state -owned enterprise in China is the Agricultural 
Bank of China (ABC).  According to the OECD findings on the Chines e Export Credit Policies and 
programs (TAD/ECG(2015)3), the ABC is an active provider of export credits.  The United States 
notes that China reported "nil" to providing any officially supported export credits for agriculture in 
the 2016 WTO Committee on Agr iculture Export Competition questionnaire (G/AG/W/125/Rev.4).  
Please explain why this program was not reported in the questionnaire.  Does China intend to 
revise its answer to the questionnaire to include ABC?  
Reply: According to ABC's statistics , it handl es very little export credit business, and 
has never provided any official credit for the export of agricultural products. ABC is not a 
policy bank but a commercial bank. All of its transactions are commercial business 
carried out under market conditions. The service objects of ABC's commercial operation 
and commercial terms of its service provision are free from government intervention, 
which is not different from other private banks. Therefore, China does not think such 
measures fall into the scope of the  questionnaire.  
Page 97,  paragraph 3.179:  In the Explanation of the 2016 Central State -Owned Capital 
Operating Budget, the following "capital injection " expenditures are listed:  RMB 20.3 billion in 
expenditure on state -owned economic restructuring, for use  in supporting the development of the 
equipment manufacturing industry, industrial upgrading and development of central cultural 
enterprises, etc.; and RMB 10.0 billion in expenditure on the development of forward -thinking, 
strategic industries.  In light o f the goal of increased budget transparency noted on page 145 of the 
Secretariat 's report, what are the names of the state -owned enterprises that received these capital 
injections?  Will these capital injections be notified pursuant to the notification requ irements of 
Article 25 of the Agreement on Subsidies and Countervailing Measures?   
Reply: Details of t he support measures for strategic emerging industries can be found in 
Program  No.81 of the Notification on Subsidies at central government level for 2009 -
2014 (G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN) submitted by 
China.  
Page 98, Table 3.22:  The Secretariat 's report indicates that, in 2014, China provided public 
support to, among others, SAIC Motor Corp. Ltd., Air China Ltd., the semiconductor com pany BOE 
Technology Group Co. Ltd. and Chongqing Iron & Steel Co. Ltd. in the amounts of 
RMB 2.67 billion, RMB 1.06 billion, RMB 0.83 billion and RMB 0.92 billion, respectively.  Can China 
please provide details of the program(s) under which this support wa s provided to these 
companies?  In what form(s) was this support provided?  Were these programs notified by China WT/TPR/M/3 42/Add.1  
 
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  pursuant to the requirements of Article 25 of the Agreement on Subsidies and Countervailing 
Measures when it made its notification for the perio d 2009 -2014?  
Reply: The so so -called "government support " mentioned in the Annual Report of 
Chinese Listed Companies is an accounting subject in China, and it should be clearly 
differentiated from the "subsidy " defined by the SCM Agreement. Moreover, in th e 
common "government support " project, based on environmental protection 
considerations, part of the support is reflected as the refund after collection of VAT for 
products that comprehensively utilize resource. This policy applies equally to all types of 
enterprises rather than only to state -owned enterprises (SOEs), so it cannot be taken as 
subsidy provided specially for SOEs. This project has been notified in Program No. 16 -17 
of China 's Notification on Subsidies at central government level for 2009 -2014  
(G/SCM/N/220/CHN, G/SCM/N/253/CHN, G/SCM/N/284/CHN). For details, please 
refer to it.  
Page 98,  paragraph 3.182:  The Secretariat 's report mentions that new guidelines were issued in 
2015 to reform SOEs.  Please provide an update as to the status of these re form efforts and what 
specific reforms have been put in place since the new guidelines were issued.  If no reforms have 
been put in place, please explain why.  
Reply: In September 2015, the State Council distributed the Opinions on State -owned 
Enterprises' D evelopment of Mixed Ownership Economy (Guo Fa [2015] No.  54), further 
identifying the general requirements, main principles, major tasks and supporting 
facilities for SOEs' development of mixed ownership economy. Industries of electricity, 
oil, natural gas , railway, civil aviation, telecommunications, military industry, etc., in 
which SOEs hold a dominate position, are key fields to promote the development of 
mixed ownership economy, and various kinds of capitals (including foreign capital) are 
encouraged t o participate in the reform of mixed ownership of SOEs. In terms of pilot 
reform of mixed ownership, in June 2014, China National Building Materials Group 
Corporation and China National Pharmaceutical Group were chosen as the pilot 
enterprises of mixed own ership reform. In terms of implementing the functions and 
powers of board of directors, China pushed forward the building of standard board of 
directors with most directors  being external ones . Currently, 87 of 106 SOEs ha ve 
established standard board of d irectors and the boards of some enterprises  are 
authorized with responsibilities of planning medium - and long -term development 
strategies and selecting and recruiting senior administrative officers. In the terms of the 
market -oriented systems of selecting and recruiting administrators and professional 
managers, the board s of directors of 5 SOEs adopt ed market -oriented approaches and 
recruited 14 administrators and managers. For the next step, China will continue deeply 
promoting the reform of SOEs.  
3.3.6 Go vernment procurement  
Page 102,  paragraph 3.204:  The Secretariat 's report notes that China is currently an observer 
to the WTO Agreement on Government Procurement (GPA) and is in the process of negotiating its 
accession thereto.  It explains that China submi tted its initial offer in January 2008 and its most 
recent revised offer in December 2014.  However, since December 2014 no progress has been 
made in China 's accession.  What steps does China intend to take to reinvigorate its accessions 
process?  
Reply: Sinc e December 2014 when China submitted its 6th offer, it has actively 
conducted bilateral and multilateral negotiations with contracting parties, as well as 
evaluation and preparation for further improvement of offer.  
3.3.7 Intellectual property rights   
Page 103,  paragraph 3.205:  The Secretariat 's report states: "In copyright, with a view to 
improving the registration system and services in general, the National Copyright Administration 
has been implementing the Notice on Further Standardizing Works Registra tion Procedures and 
Other Relevant Work issued in October 2011. "  WT/TPR/M/3 42/Add.1  
 
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  a. Please provide further details on what results have been achieved since this Notice was issued 
in 2011.   
Reply: Generally, since this Notice was issued, the registration of works copyright h as 
been standardized effectively, and quantity of copyright registration has increased year 
by year. Works registration is playing an increasingly greater role in copyright 
protection.  
b. As China continues to implement this Notice, what ongoing or future imp rovements to both the 
registration system and services are anticipated?  Has China identified any benchmarks or 
deadlines for the completion of these improvements?  Please explain.   
Reply: In October 2011, after the National Copyright Administration issued t he Notice on  
Further Standardizing Works Registration Procedures and Other Relevant Work , the 
copyright offices and registration authorities in various regions have paid high attention 
and carefully implemented, gradually unifying the registration procedur es and 
registration numbers; new Works Registration Application Form, Notice of Rejection of 
Works Registration, and Works Registration Certificate are introduced uniformly; the 
acceptance and review of works registration application, registration time lim it, decision 
of rejection of registration, form and certificate of works registration,  statistics of works 
registration information, etc. are carried out strictly according to requirements, and 
works registration information is regularly reported to the Co pyright Protection Center 
of China.  
Page 105,  paragraph 3.212:  The Secretariat 's report mentions that the licensing or transfer of 
Chinese patent rights to foreign parties is subject to the provisions of the Regulations on the 
Administration of Technology Import and Export, as revised in December 2010.  The United States 
notes that the licensing of foreign technologies, including patent rights, is also governed by these 
same regulations.  The report states that the licensing of foreign technology is not a pre condition 
for foreign direct investment (FDI) approval in China today.  The United States notes, however, 
that Article 27 of these regulations mandates that the Chinese party receiving any technology 
imports owns any improvements to that technology and that , according to Article 24, the foreign 
supplier of the technology must indemnify the Chinese party against third party infringement.  
Pursuant to China 's Contract Law, these same obligations do not attach to a Chinese exporter of 
patents or technology to a foreign party, or a transaction occurring solely within China.  The United 
States believes that the above -described provisions of the Regulations on the Administration of 
Technology Import and Export restrict the willingness of foreign parties to license te chnologies to 
China and also restrict the ability of foreign companies to license technology to avail themselves of 
tax preferences available for High and New Technology Enterprises (as described in Table A3.2).  
a. Does China have any plans to revise the Reg ulations on the Administration of Technology 
Import and Export to provide that foreign exporters of technology are treated on the same basis 
as Chinese exporters of technology or Chinese domestic parties?   
Reply: Currently, China has no plan to revise the Regulations on the Administration of 
Technology Import and Export.  
b. Has China studied the impact of these regulations, particularly Article 24, on the willingness of 
foreign parties to license technology to China?  If so, what has China learned?  
Reply : This  question mentioned by the United States may involve specific cases, thus 
further details are desirable.  
c. Has China examined the consistency of these regulations with cross -license agreements, 
bilateral science and technology agreements and/or open source l icensing agreements?  If so, what 
has China learned?  
Reply : The question mentioned by the United States may involve specific cases, thus 
further details are desirable.  WT/TPR/M/3 42/Add.1  
 
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  Page 105,  paragraph 3.215:  During the period since 1995 when China first provided patent  
protection for pharmaceutical compound patents, China has progressively amended its patent 
examination guidelines to provide stricter standards regarding the amount of data necessary at the 
time of filing to support "enablement " (Article 26.3 of China 's Patent Law) and non -obviousness 
(Article 22.3 of China 's Patent Law).  China 's original standards for examination appeared to closely 
follow those articulated in U.S. case law as well as the standards in other large patent offices such 
as the Japan Patent Of fice, the Korea IP Office and the European Patent Office.  Since that time, 
and more particularly since China 's WTO accession in 2001, China 's patent examination guidelines 
have become progressively more restrictive while the Patent Law itself has not chang ed.  
a. Please explain the scope of the amended examination guidelines, i.e., whether they apply to all 
previously granted patents, and whether China 's patent authorities and courts have retroactively 
invalidated previously granted patents on the basis of sub sequently amended examination 
guidelines.   
Reply: P atent Examination Guidelines  are departmental rules of SIPO, which applies the 
stipulations of Article 93 of the Legislation Law of the People's Republic of China, and 
generally are  non-retroactiv e. 
b. The Un ited States understands that certain internal measures were issued to address 
inconsistency in examination practices regarding Article 26.3 and Article 22.3.  Please explain any 
plans to incorporate these measures into current examination guidelines and/or make them public 
so that SIPO patent examiners as well as Chinese and foreign rights holders are informed about 
examination practice and procedures in this area.   
Reply: SIPO has started the research and revision of 2016  Patent Examination 
Guidelines . Duri ng the revision process, SIPO will listen to comments from inside and 
outside of the office, and study relevant opinions.  
c. The Secretariat 's report states that China amended the Patent Examination Guidelines to allow 
granting design patents for graphical us er interface products. These guidelines came into force on 
May 1, 2014.  How many patents for graphical user interface products has SIPO granted since 
these examination guidelines came into force?  
Reply : Currently, China has no relevant statistics.  
Page 10 7, paragraph 3.221:  The Secretariat 's report indicates that prior right holders have a 
five-year period to contest registration of a trademark, with the exception of cases involving 
abusive registrations.  Does this five -year exception apply to all cases in volving abusive 
registrations, or is it limited to cases involving well -known marks?   
Reply: Article 45 of the Trademark Law stipulates that  " Where a trademark registration 
violates the provisions of Paragraph 2  and Paragraph 3  of Articles 1 3, Article 15,  
Paragraph 1  of Article 16, Article 30, Article 31 or Article 32 of this Law, any holder of 
prior rights or any interested party may, within five years from the date of registration, 
request that the Trademark Review and Adjudication Board make a ruling to  invalidate 
the trademark 's registration. Where the registration was obtained with ill will, the 
owner of a famous trademark shall not be bound by the five -year limitation. "  
Page 107,  paragraph 3.222:  The Secretariat 's report refers to China 's issuance of  a Judicial 
Interpretation of the Supreme People 's Court on the Jurisdiction of Trademark Cases and 
Application of Laws after Implementation of the Amendment Decisions of Trademark Law, which 
came into force on 1 May 2014.  Judicial Interpretations provide welcome guidance for the new 
Trademark Law.  The United States understands that, in 2014, a draft Judicial Interpretation of the 
Regulations of the Supreme People 's Court on Certain Issues Related to the Hearing of 
Administrative Cases of Trademark Authoriz ation and Confirmation was issued for comment.  Can 
China clarify whether this draft Judicial Interpretation has been finalized, and if so, how WTO 
Members may obtain a copy of the final version?   
Reply: The judicial interpretation is still in the formulati on process, and will be officially 
released to the public after its completion.  WT/TPR/M/3 42/Add.1  
 
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  Page 108,  paragraph 3.225:  The Secretariat 's report references the Rules of Supreme Court on 
Several Issues Concerning the Application of Law in Adjudication of Civil Disputes Related to 
Infringement of the Right of Communication through Information Networks, effective 
1 January  2013.  How many operators of electronic trading platforms have been found civilly liable 
for facilitating online infringement since the law came into eff ect?  
Reply: The specific quantity concerns relevant cases of all courts in the vast regions of 
China, thus it is fairly difficult to conduct specific statistics. Currently, China has no 
relevant data.  
Page 108,  paragraph 3.230:  The Secretariat 's report st ates that AQSIQ formulated its Measures 
on the Protection of Overseas Geographical Indication (GI) Products in 2015.  Please explain how 
third parties may challenge a GI that is issued under this measure.   
Reply: AQSIQ officially issued the Measures on the Protection of Overseas Geographical 
Indication  in March 2016. Article 12 of the Measures stipulates that "The period of 
accepting objection to public notice is 60 days, which is calculated from the day when 
the AQSIQ makes the announcement of acceptance. D uring the period of objection, any 
domestic or foreign organization or individual may submit an objection in written form 
to AQSIQ."  
Page 109,  paragraph 3.232:  The Secretariat 's report states that copyright registration and 
enforcement takes place at both  the central and provincial government levels.  
a. With respect to copyright registration functions, please provide recent data regarding the 
quantity of copyright registrations for 2013 -2015.  In particular, please provide the following data 
for this time per iod: the number of registration applications received; the number of registrations 
processed and issued; a breakdown of the kinds of copyrightable subject matter (e.g., literary 
works, audiovisual works, etc.) involved in these applications; and the divisi on in registration 
workload experienced by the national and the provincial offices.   
Reply: Statistics show that during the 12th Five -Year Plan period, the quantity of works 
registration in the whole country had seen breakthrough increase. The total regist ration 
was 4.334312 million, and a 95.85% growth over the 2.213038 million of the 11th Five -
Year Plan period. In 2013, 845,064 works registrations were completed nationwide, 
among them, photography works were 434,143, fine art works were 154,491, written 
works were 134,108, music works were 76,741, films and television programs were 
14,153, graphic works were 12,934; in 2014, 992,034 works registrations were 
completed in the whole country, among them, photography works were 428,819, fine art 
works were 177, 095, written works were 340,576, music works were 6,977, films and 
television programs were 12,858, graphic works were 6,126, phonograms were 11,264, 
videos were 579, and models, plays, dances and other categories were 7,740; in 2015, 
1.3482 million works registrations were completed in the whole country, among them, 
photography works were 510,120, fine art works were 274,431, written works were 
489,672, music works were 2,834, films and television programs were 15,527, graphic 
works were 5,315, phonograms were 3,998, videos were 8,627, and models, plays, 
dances and other categories were 6,319. The copyright offices in provinces, autonomous 
regions and municipalities directly under the central government are in charge of the 
works registration of authors or other copyright owners in their jurisdictions; the 
National Copyright Administration of China is in charge of works registration of authors 
and other copyright owners from foreign countries, Chinese Taipei, Hong Kong China 
and Macao China. In September 199 8, the works registration formerly undertaken by 
the National Copyright Administration of China was specifically transferred to the 
Copyright Protection Center of China.   
b. Regarding copyright enforcement, please provide data for 2013 -2015 indicating the foc us of 
enforcement efforts (such as online piracy, unauthorized duplication of materials, or software -
based piracy), the results of any sustained enforcement actions (such as a special campaign), and 
the coordination between the central and provincial gover nments, and the numbers of cases 
involving foreign rights owners.   WT/TPR/M/3 42/Add.1  
 
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  Reply: From 2013 to 2015, copyright enforcement authorities at different levels of the 
country conducted enforcement actions in areas of literature, news, films and television, 
music, game,  software, etc., including the "Network Sword Campaign". Currently, there 
is no statistical data on the cases involving foreign rights owners.   
c. Please provide information on any actual or proposed plans for future copyright enforcement 
actions.   
Reply: The  National Copyright Administration of China will cooperate with the State 
Internet Information Office, Ministry of Industry and Information Technology, and 
Ministry of Public Security to jointly conduct the "Network Sword Campaign 2016".  
Page 109,  paragra ph 3.237:  The Secretariat 's report states: "The Interim Measures for the 
Payment of Remuneration by Radio and Television Stations for Broadcasting Sound Recordings, 
implemented on 1 January 2010, mandate that broadcasting organizations pay remuneration to 
copyright owners for broadcasting musical works.  The methods and amounts of such payment 
must be determined in agreement with the copyright collective administration organization. " 
a. Please provide further details on the tariff amount itself (i.e., the amoun ts that are agreed to 
with the collective administration organizations).   
Reply: Currently, the Music Copyright Society of China does not directly agree on the 
amount of paid remuneration with broadcasting organizations, what they have agreed 
on is the sta ndards of remuneration payment. In 2015, the income of Music Copyright 
Society of China from broadcasting licensing was 39.18 million yuan. It is worth noting 
that, for broadcasting organizations' paying remuneration, the tariff paid in this year is 
for us e in the previous year. For example, the broadcasting right tariff collected in 2015 
was mainly the remuneration of music works used in 2014.  
b. Please provide further details (annual data for 2013 -2015) on the amounts of remuneration 
both collected and distr ibuted in accordance with the Interim Measures.   
Reply: The incomes of the Music Copyright Society of China from broadcasting right 
licensing in 2013 -2015 are 34.743 million yuan, 48.4123 million yuan and 39.18 million 
yuan respectively.  
Page 109,  paragra ph 3.237:  The Secretariat 's report states:  "During the period under review, 
the NCAC and the NDRC jointly promulgated the Measures for Paying Remuneration for the Use of 
Written Works on 23 September 2014 (Decree of the National Copyright Administration an d the 
National Development and Reform Commission, No. 11), which were implemented on 
1 November  2014 (footnote omitted). " Please provide further details on the amounts of 
remuneration both collected and distributed in accordance with these Measures in 2015 . 
Reply: In 2015, the remuneration collected by the China Written Works Copyright 
Society  was 3.93 million yuan. Among it, 2.61 million yuan was statutory license 
remuneration. China Written Works Copyright Society does not collect membership fees; 
and acc ording to its charter approved by the National Copyright Administration  and 
Ministry of Civil Affairs, the management fees shall not exceed 30%. The remuneration 
income after deduction of management fees shall be allocated to members and other 
right owners , of the remuneration for use of written works in statutory license, which 
concerns non -members, a small proportion has not been allocated due to the failure in 
finding right owners' contact information.  
Pages 109 -110, paragraphs 3.237 and 3.238:  The Secre tariat 's report discusses several 
measures related to the collection and distribution of remuneration to copyright owners. During 
China 's last TPR in 2014, the United Stated asked a question on this subject (reproduced below), 
and China responded:  "To be a nswered. " (See China 's Reply to Advance Questions, 
WT/TPR/M/300/Add.1, page 220.)  The United States asks that China now respond to this question, 
which reads as follows:  "The United States requests confirmation of the Chinese government 's 
current views reg arding the lack of payment to music copyright owners during the first eight years 
after China joined the WTO (i.e., 2001 to 2009). In this regard, in connection with China 's 2012 WT/TPR/M/3 42/Add.1  
 
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  Trade Policy Review, the European Union asked China for an explanation of the  retroactive effect 
of the tariff established by the 2010 Interim Measures for Payment of Remuneration by Radio and 
Television Stations for Broadcasting Sound Recordings , and China responded that the principle of 
non-retroactivity applies and these tariff rates are not applicable to cases prior to the 2010 
measures entering into force. Does the Chinese government 's view regarding the principle of non -
retroactivity still apply to China 's implementation of the 2010 measure? Does the Chinese 
government 's view regarding the principle of non -retroactivity also somehow extend to China's  
obligations under the Berne Convention, as implemented via the TRIPS Agreement? Please 
explain. " 
Reply: Since 2010 when the Measures were implemented, in its negotiations with 
broadcasting organizations, from the perspective of prioritizing paying subsequent 
remuneration, the Music Copyright Society of China has temporarily not touched upon 
broadcasting organizations' paying of remuneration of broadcasting right of music 
works from 2001 to 2009. However, in all its agreements of paying remuneration signed 
with relevant broadcasting organizations, the Music Copyright Society of China declares 
that it reserves the right to be paidfor use from 2001 to 2009.  
Page 110,  paragraph 3.238:  The Secretariat 's report states:  "As of December 2015, there were 
five collective copyright management organizations in China: the Music Copyright Society of China, 
the China Audio -Video Copyright Association, the China Film Copyright Association, the China 
Written Works Copyright Society, and the Images Copyright Society of China. As of end 
December  2014, China Written Works Copyright Society was the largest copyright association in 
terms of the number of members, which reached 7,960, with remuneration worth  
RMB 1.62 million. Music Copyright Society of China had 7,701 members and an annual revenue of 
RMB 137 million in the same year; while China Audio -Video Copyright Association, with 
123 members, collected about RMB 148 million for the use of copyright in ka raoke; the Images 
Copyright Society of China, with 807 members, collected RMB 1.91 million for the use of 
photographic works; and the China Film Copyright Association, with 82 members, had an annual 
revenue of RMB 136,169. " 
a. Please confirm whether the above  numbers regarding remuneration reflect solely the 
remuneration collected under Chinese measures, and do not include any membership fees.  
Reply: The Music Copyright Society of China does not collect membership fees from its 
members, in 2014, its total inco me from licensing was 137 million yuan, and in 2015 
170 million yuan, which included no membership fees. Up to December 2014, China 
Auto -Video Copyright Association totally collected 148 million yuan of use charge of 
karaoke copyright, which did not includ e any membership fees.  
China Written Works Copyright Society  does not collect membership fees. According to 
its charter approved by the National Copyright Administration  and Ministry of Civil 
Affairs, the management fees shall not exceed 30%.  
China Film Co pyright Association's remuneration does not include any membership fees, 
and it has not signed any reciprocal agreement with any foreign collective management 
organizations.  
The 1.91 million yuan collected by the Images Copyright Society of China for using  
photography works was all copyright royalty of textbooks' use of photography works, 
and did not include any membership fees. In addition to the 15% of management fees 
financed according to provisions, the remaining amount will be allocated to its members.  
b. The above data only reflects remuneration collected and does not indicate any data regarding 
distribution.  How much of the revenue collected do these collective management organizations 
distribute to their members?  
Reply: The total amount allocated by th e Music Copyright Society of China to its 
members in all the years is about 83% of its total income.  WT/TPR/M/3 42/Add.1  
 
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  In 2014, China Auto -Video Copyright Association allocated 79.55 million yuan to right 
owners, and this allocation plan was approved by its council. In 2014 , its management 
fees were about 64.57 million yuan, among which association management fees were 
5.63 million yuan, and the rest was operation management fees.  
Currently, the ratio of management fees financed by China Written Works Copyright 
Society  is 15 % to 20% of income from each transaction; after management fees are 
deducted, all the remaining remuneration income will be allocated to members and 
other right owners.  
According to Paragraph 1 of Article 38 in the Charter of the Images Copyright Society o f 
China, "The ratio of management fees for collective management activity shall generally 
not exceed 30% of the use charge, the specific ratio could be determined through 
negotiation with the right owner." In 2014, other than the 15% management fees 
financ ed according to provisions, the remaining amount would be allocated to members.  
c. What, if any, administrative fees are retained by these organizations for their services to their 
members?  These fees are sometimes called "management fees " and are often state d in terms of a 
percentage of annual revenue.  
Reply: For example, the management fees are about 17% of the licensing income for the 
Music Copyright Society of China.Management fees include necessary working expenses 
of staffing, office venues, office equip ments, etc.  
d. The United States understands that at least one of the above groups, MCSC, does have 
reciprocal agreements with foreign collective management organizations in its sector.  Please 
provide a breakdown of the collections MCSC received from, and dis tributed to, foreign collective 
management organizations for 2014 and 2015.  The United States understands that distributions 
have been made on a quarterly basis and would appreciate a confirmation that quarterly 
distributions are still the current practice . 
Reply: In 2014, the licensing charge transferred from foreign associations to MCSC was 
5.54 million yuan, and that transferred from MCSC to foreign associations was about 
31.05 million yuan; in 2015, the licensing charge transferred from foreign associat ions 
to MCSC was 6.20 million yuan, and that transferred from MCSC to foreign associations 
was about 31.57 million yuan. The allocation of charges for foreign associations was the 
same as that for MCSC's own members, each foreign association could be deeme d as a 
member, and the allocation is on a quarterly basis.  
e. Do any of the other four collectives have reciprocal agreements with foreign collectives in their 
sector?  If so, please provide data on collections and distributions for 2014 and 2015.  
Reply: Curr ently, China Auto -Video Copyright Association has no reciprocal agreements 
with foreign organizations of the same kind.  
Up to now, China Written Works Copyright Society has unilateral licensing agreements 
with Copyright License Agency (CLA) and Korea Repro duction and Transmission Rights 
Association (KORRA), but has not received any fees from the above organizations.  
China Film Copyright Association has no reciprocal agreements with foreign collective 
management organizations.  
Since its establishment, Images  Copyright Society of China has not signed any mutually 
representative agreements with other related international collective management 
organizations.  
Page 111,  paragraph 3.241: The Secretariat 's report discusses undisclosed information and 
trade secrets.  According to the report, China protects test data and other data that are self -
obtained and undisclosed, and submitted by manufacturers to obtain approval for manufacturing 
or selling a drug that contains a new chemical entity.  During the protection term of six years, the 
authorities must deny approval to other applications using the same data.  However, U.S. and WT/TPR/M/3 42/Add.1  
 
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  other foreign innovative pharmaceutical companies complain that, in many cases, the authorities 
approve applications from generic Chinese companie s that use the same data to get marketing 
approval.   
a. Please explain what appears to be a discrepancy between paragraph 3.241 of the report and 
the experience of U.S. and other foreign innovative pharmaceutical companies seeking marketing 
approval of their products in China that have been unable to obtain the protections described in  
paragraph 3.241.  
Reply: China does not know the specific cases mentioned by the United States, and 
encourages the United States to provide further details. China's provisions o f relevant 
laws and regulations are as below:  
Article 35 of the Regulations for Implementation of the Drug Administration Law (State 
Council Decree No. 360) stipulates that " The State protects undisclosed data of drug 
study and other  data which are indepen dently acquired and submitted by drug 
manufacturers or sellers to obtain production or approval of the drugs in question which 
contain new chemical  component . No one may make unfair commercial use of the said 
data.  Within six years from the date a drug man ufacturer or seller obtains the approval 
documents for producing or marketing a drug containing new chemical entities, if any 
other applicant uses the data mentioned  above  to apply for approval for production or 
marketing of the drug in question without pe rmission of the original applicant who has 
obtained the approval, no approval may be given to any other applicant by the drug 
regulatory department except that the data submitted are acquired independently.  
Article 20 of Provisions for Drug Registration (S FDA Order No. 28) stipulates that 
"where a manufacturer or distributor submits undisclosed drug experimental and other 
data which are independently acquired in order to obtain approval for production or 
marketing of the drug in question which contains any new chemical entity, the State 
Food and Drug Administration shall, within six years from the approval date of the drug, 
reject any application made by any other applicants by using the undisclosed data of the 
drug in question without permission of the orig inal applicant who has obtained the drug 
approval, unless the data submitted are independently acquired by the applicants other 
than the original one. Article 14 of Provisions for Drug Registration (SFDA Order No. 28) 
stipulates that when the applicant's " cited references are not published, an author's 
permission shall be provided". Such provisions are equally applicable to domestic and 
foreign enterprises.  
b. Please explain what plans China has to amend its Anti -Unfair Competition Law, which governs 
trade sec ret protection.  
Reply: The Anti -Unfair Competition Law (revised draft to be submitted for review) has 
been delivered to the Legal Affairs Office of the State Council for review. This draft 
perfects the concept of business secret, intensifies the administra tive penalty of actions 
infringing business secrets, and enhances the protection of right owners of business 
secrets and the burden of proof of the infringers.  
Page 111, Table 3.27:  The Secretariat 's report indicates that the number of administrative 
actions involving trademark has fallen from a peak of 59,085 in 2012 to 27,329 in 2015 and that 
the number of cases transferred to judicial authorities has fallen from 576 in 2012 to 164 in 2015. 
The United States notes  that patent administrative enforcement ac tions have increased by over 
six-fold since 2012, that trademark disputes have decreased by approximately 50 % and that that 
copyright disputes also have declined.  During this same period, civil IP disputes have not shown 
such extreme changes, and Customs c ases have increased by approximately 50 %. 
a. Please explain on what basis patent authorities have decided to increase their administrative 
actions by six times during this period.   
Reply: The major reasons are: The cracking -down on patent infringement actions  in 
e-commerce and exhibitionI has been intensified, and the enterprises' consciousness 
and initiative of patent protectionare increasingly strengthened. The quantities of patent WT/TPR/M/3 42/Add.1  
 
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  application and license increase rapidly, the concentration degree of patent in force 
within the same field is higher and higher, and chance of patent dispute in the relevant 
field is also bigger. The State Intellectual Property Aid Center provides powerful support 
for patent administrative enforcement. By induction training of enf orcement and 
improvement training, SIPO provides guidance on issues of application of law, and 
effectively improves the professional level of law enforcement officers. Local IPOs also 
enhance their enforcement teams.  
b. Please explain why copyright and tradem ark authorities have decreased their administrative 
enforcement activities.  Are administrative agencies envisaging an increased role for the courts in 
adjudicating IP disputes?  
Reply: In recent years, the quantity of cases of trademark violations registere d and 
investigated by authorities of industry and commerce and market supervision decreases. 
It is mainly because the increasingly intensified cracking -down on infringement and 
counterfeit, and the public's enhanced consciousness of IPR protection have eff ectively 
suppressed infringement and counterfeit activities.  
In China, the trademark protection adopts a "dual -track" mode which combines 
administrative protection and juridical protection and plays an active role in practice as 
an effective protection mod ality suitable for China's national conditions.  
The decrease of copyright disputes does not mean the reduction of administrative 
enforcement actions. It is actually the result of intensified administrative enforcement 
activities by copyright enforcement an d supervision authorities at various levels in 
China, and shows that our country's copyright enforcement and supervision have 
obtained remarkable results.  
Page 112,  paragraph 3.246:  The Secretariat 's report notes that "the local IP offices in Zhejiang, 
Beijing, Jiangsu, among others, have established cooperation mechanisms with local e -commerce 
service enterprises to avoid patent infringement. " Please provide an explanation of the cooperation 
mechanisms existing between local IP offices in Zhejiang, Jiangsu , and Beijing and local 
e-commerce service enterprises.  
Reply: Zhejiang Provincial IP office  has signed memorandum of cooperation with some 
e-commerce enterprises, and provided training of professional knowledge and capacity 
for the enterprises' staff acce pting patent complaint. The IP office of Beijing also timely 
established cooperation mechanisms with some e -commerce enterprises, and actively  
investigated and dealt with counterfeit patented goods. The IP office of Jiangsu has 
discussed with some e -commer ce enterprises for many times to improve their 
awareness of patent protection on e -commerce platforms, and established cooperation 
mechanism.  
Page 113,  paragraph 3.252:  The Secretariat 's report highlights the expansion of the jurisdiction 
of the Liangjiang  IP tribunal over utility model patent and design patent cases.  Please provide data 
regarding the numbers and nature of patent cases handled by the Liangjiang IP tribunal in 2015.  
Reply: In 2015, the tribunal accepted 44 patent cases, among which 2 were ut ility model 
patent cases  and 42 were design patent cases. In 2015, the tribunal concluded 42 cases, 
including 1 utility model patent case and 41 design patent cases.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.3 Policy instruments  
Page 117,  paragraph 4.9: The Secretariat 's report notes that historically the fill rates for the 
TRQs on agricultural products have been low.   
a. The United States notes that China 's schedule CLII establishes separate TRQs for long grain 
and short/medium grain rice, but that China  notifies TRQ utilization information for rice on an 
aggregated basis.  Please explain why utilization information is not supplied for each rice TRQ.  WT/TPR/M/3 42/Add.1  
 
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  Reply: China may notify fill rates of long grain rice and short grain rice separately.  
b. Please provide two separate quota fill rates for the long grain rice TRQ and the short/medium 
grain rice TRQ since 2012.  If there is an underfill of either TRQ, please also provide the reasons for 
the underfill.   
Reply: Main reason for the low fill rate of short grain rice T RQ include that Southeast 
Asian countries mainly produce long grain rice withlimited yield of short grain rice; 
Japan and South Korea produce short grain rice but the prices are much higher than that 
of China; and other countries' short grain rice does not  cater to Chinese consumers ' 
taste, therefore the enterprises have no intention to import.  
c. Please explain the decline in the quota fill rate for wheat between 2013 and 2014.  
Reply: Enterprises that have been granted import tariff quota for wheat can decid e on 
their own whether to import in light of such business factors as market prices at home 
and abroad. Over the recent years, the quota fill rate for wheat, corn and rice have 
witnessed a year -on-year increase , from less than 3% in 2007 to nearly 50% in 2 015. At 
present, China 's domestic grain supply is generally adequate; thus the import of wheat 
is only aimed at balancing the harvest conditions among different years or among 
different grain varieties.  
d. Given the decline in quota fill rate for wheat, as we ll as the fact that world wheat import prices 
are low and China 's exports to the world are minimal,  please explain how an export quota 
(paragraph 3.104) and licensing administration (paragraph 4.11)  for wheat addresses China 's food 
security concerns (parag raph 4.24).  
Reply: Export quota and licence for agricultural products are important instruments of 
China 's grain security policy. China needs to reserve the rights to control exports 
through such measures. This does not mean, however, that these measures would be 
implemented in the strictest way each and every year. In fact, when domestic food 
security is guaranteed, the Chinese government will not restrict the exports of wheat. In 
recent years, the wheat export volume was minimal, only because the enterpr ises' 
willingness to export was hampered by such factors as price. It needs to be pointed out 
that the prices of agricultural products on the international market often experience 
drastic ups and downs, thus the current low price is, most probably, a tempo rary 
phenomenon, and there might be an upturn or even a drastic rise in future, when China 
would face pressures to export. Once that happens, China would have to make use of 
the export quota and licencing regime to ensure the domestic grain security.  
Page 117, paragraph 4.9, Table 4.2 : The Secretariat 's report bases Table 4.2 on 
G/AG/N/CHN/30.  Please explain the discrepancy between the final bound tariff in China 's schedule 
of commitments for broken rice (HS 10064010 and HS 10064090), which is ten percent, and the 
out-of-quota tariff of 65 % listed in Table 4.2 and is notified by China.  
Reply: China 's notification (G/AG/N/CHN/30) does not list the out -of-quota tariff of 
broken rice as 65 %. Please check with the Secretariat.  
Page 118,  paragraph 4.10:  The Secre tariat 's report explains that "agricultural goods produced 
and sold directly by small -scale farmers remain exempt from the VAT. " While the United States 
understands that, from China 's perspective, this VAT exemption may simplify China 's VAT 
administration vis-à-vis small -scale farmers in China, it may have the effect of treating domestic 
goods more favorably than imports.  Has China considered any alternative approaches that would 
be less likely to negatively impact imports?   
Reply : China  has note d the conce rn of the United States. However, small -scale farming 
will, for quite a long period to come, remain the mainstay of China 's agricultural 
production ; and it is extremely difficult and costly to levy VAT from the income of 
hundreds of millions of small -scale  farmers from  selling agricultural goods produced by 
themselves; therefore in the short term , the Chinese government is not  able to adopt WT/TPR/M/3 42/Add.1  
 
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  any alternative approach. If the US or other members have viable suggestions, we 
would be happy to consider.  
Page 118 , paragraph 4.14:  What is the current export quota for rice?  Is the export quota 
allocated between long -grain and other types of rice?  If so, how is the allocation made?  Which are 
the state trading enterprises currently allocated export quotas for rice?  
Reply: The export quota for rice is allocated with no distinction of long -grain and other 
types of rice.  Three state trading enterprises have been allocated export quota for rice in 
2016, namely, Jilin Grain Group Import & Export Co. Ltd, Heilongjiang Beidah uang 
Agriculture Group Corporation, and China National Cereals, Oil and Foodstuffs Import & 
Export Co. (renamed as COFCO in April  007).  
Page 121,  paragraph 4.21:  Under the Subsidy for Purchasing Agricultural Machinery and Tools 
scheme, on what basis is sup port provided?  Is support provided based on the product produced?  
Reply: The purpose of the subsidy for purchasing agricultural machinery and tools is to 
improve the level of mechanization in agriculture. The scope of the subsidy covers 
almost all varietie s of agricultural products ; any machinery or tool fall ing into the Scope 
of Agricultural Machinery Purchase Subsidies  with the authentication certificate can be 
subsid ized regardless of the variet y of products that the farmer produces.  
Page 123,  paragraph 4.24:  The Secretariat 's report states:  "Grain reserves of maize, rice, soya 
beans and wheat are maintained by central and local authorities to ensure food security.  According 
to the authorities, the purchase of the reserves is carried out by appointed ente rprises at market 
prices or at the minimum procurement prices set by the Government. " 
a. For each of the eligible commodities (maize, rice, soya beans and wheat), please provide data 
for the years 2011 -2015 on the quantities that were purchased by appointed e nterprises at market 
prices and the quantities that were purchased at minimum procurement prices.   
Reply: Relevant  data will be provided in the notification of domestic support.  
b. For each of the eligible commodities (maize, rice, soya beans, and wheat), pl ease provide data 
on the market prices and minimum procurement prices that the appointed enterprises paid for 
each of these commodities for the years 2011 -2015.  
Reply: China only adopts minimum procurement prices for wheat and rice. From 2011  to 
2015, the minimum procurement prices for wheat were  respectively  0.93 Yuan/ "Jin" or 
half a kilogram (for white wheat:  0.95 Yuan/Jin) , 1.02 Yuan/Jin , 1.12 Yuan/Jin , 
1.18 Yuan/Ji n and 1.18 Yuan/Jin . The minimum procurement prices for early long -grain 
nonglutinous rice  were  respectively, 1.02 Yuan/Jin , 1.20 Yuan/Ji n, 1.32 Yuan/Jin , 
1.35 Yuan/Jin  and 1.35 Yuan/Jin ; for middle and late indica rice : 1.07 Yuan/Jin , 
1.25 Yuan/Jin , 1.35 Yuan/Jin , 1.38 Yuan/Jin  and 1.38 Yuan/Jin ; for round -grained 
nonglutinous rice : 1.28 Yuan/ Jin, 1.40 Yuan/Jin , 1.50 Yuan/Jin , 1.55 Yuan/Jin  and 
1.55 Yuan/Jin . 
c. Please provide additional information on the temporary reserve programs and the prices used 
to purchase commodities under this program.  For example, on September 18, 2015, China 's 
National  Development and Reform Commission and the State Administration of Grain announced a 
purchase price for maize for the period of November 2, 2015 to April 30, 2016.  Does China 
consider this pre -set purchase price a "market price " or a "minimum procurement p rice"? If this 
reflects a "market price ", please explain how such a pre -set purchase price reflects market 
conditions, given that market prices generally fluctuate in response to changes in supply and 
demand.  
Reply: In 2015, China continued the temporary procurement and stockholding program 
over maize. The price adopted was the price for temporary reserve, which was different 
from the minimum procurement prices for wheat and rice.  WT/TPR/M/3 42/Add.1  
 
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  Page 123,  paragraph 4.24:  Please explain the relationship between the minimu m-price system 
and its linkage to the grain reserve.  Will the minimum price be adjusted to target a desired volume 
of reserves to "ensure a stable supply of grains "?  
Reply: The minimum prices have no direct linkage to the grain reserve, and will not 
fluctuate with the volume of the grain reserve.  
Page 123,  paragraph 4.25:  The Secretariat 's report states that in 2014 China stopped its 
stockholding program for cotton because the program "resulted in an increase in the domestic 
price of cotton paid to farmers  to above international prices, and . . . state reserves increased to 
levels beyond annual domestic demand. "  
a. Please explain the impact of this program on domestic and international commodity markets.  If 
China considers it did not have an impact on these m arkets, please explain the reasons for that 
view.  
Reply:  This program has impacts on both domestic and international markets. For the 
domestic market, as the price was higher than that in the international market , farmers 
tend to sell  all of their cotton d irectly to China National Cotton Reserves Corporation,  the 
enterprises  in needtend to  import large quantities of cotton and cotton yarn;  some 
enterprises even  moved their spinning mill s abroad. For the international market , the 
large amount of cotton  impor t by China  may drive up its price. The impact of this policy 
on the markets w as many -sided . Yet overally speaking, it was conducive to imports and 
did not cause  any unnecessary restrictions on substitution  to imports.  
b. Please provide an update on the statu s of the temporary reserve program for maize.  Will China 
continue to purchase corn under this program?  Has China introduced any new support measures 
for corn?  
Reply: The temporary reserve program for maize has already ended. In 2016, China 
adjusted its mai ze procurement and stockholding regime and turned to the policy of 
"market -based procurement ". The government will provide appropriate direct subsidy to 
maize producers in certain areas of Heilongjiang, Jilin, Liaoning and the Inner Mongolia 
Autonomous Reg ion. 
Page 123,  paragraph 4.25:  The United States understands that China is no longer building up 
its cotton reserves under its stockholding program for cotton.  Can China provide further details on 
its current program for holding, disposing of and replacing  cotton held in the state stockpile?  
Reply:  Please refer to the NDRC and Ministry of Finance Notice No. 9 of 2016.  
(http://www.sdpc.gov.cn/zcfb/zcfbgg/201604/t20160415_798290.ht ml). 
4.1 Services  
4.2.1 Telecommunications services  
Page 125,  paragraph 4.30:  It is the United States ' understanding that a new 
Telecommunications Law, whose first draft dates back to July 2004, is still being drafted and 
reviewed within the Chinese Gover nment.   
a. When will a draft of the Telecommunications Law be circulated for public comment?   
Reply: Over the recent years, there have been fairly big changes in  the landscape of  
telecommunications and internet services. After the draft Telecommunications Law  was 
submitted to the State Council  for re view, the Legal Affairs Office of the State Council , in 
accor dance with  the requirements of national legislation procedure , has carried out an 
extensive opinion solicitation from related administrative bodies, dome stic and foreign 
enterprises, scientific research institut ions, experts and scholars, as well as social  
organizations . On this basis , it has made repeated studies and revisions to the  draft. The 
formulation of the Telecommunications Law  needs to reflect th e new situations in the 
development of telecommunications and internet services, and to comply with the WT/TPR/M/3 42/Add.1  
 
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  requirements of domestic legislation procedures , there is not yet a specific timetable as 
to when the draft Telecommunications Law  will be made availabl e for public comment.  
b. Does the current draft of the Telecommunications Law either make MIIT structurally and 
financially separate from all the telecommunications operators and providers or move the 
regulation of this sector outside of MIIT?   
Reply: Acco rding to the division of responsibilities within the Chinese government, the 
competent telecommunications  authorities  in the State Council exercises supervision 
and regulation over the telecommunications  industry nationwide in accordance with law. 
Its rela tionship vis -à-vis the telecommunications operators and providers is one 
between regulator and the regulated; and the competent authorities are completely 
independent from the telecommunications operators and providers.  
c. Does the current draft of the Tel ecommunications Law provide that foreign service suppliers 
required to form joint ventures with Chinese entities to operate in China are free to choose their 
joint venture partner, and that they may choose a partner from a sector outside the sector of 
operation of the joint venture, consistent with the commitment that China made in paragraph 314 
of the Working Party Report accompanying its WTO Protocol of Accession?   
Reply: The Telecommunications Law is still in the process of formulation, and  like any 
other law, the Telecommunications Law  will be consistent with  China 's WTO 
commitments.  
4.2.1 Financial services  
Page 130,  paragraph 4.53:  The Secretariat 's report states that in April 2015 China 's State 
Council issued a decision setting out the conditions and procedures for the market access of 
bankcard clearing institutions.  The United States notes that, in June 2016, the People 's Bank of 
China issued the Administrative Measures for Bankcard Clearing Institutions, which provide for the 
licensing of domestic an d foreign suppliers of electronic payment services as bankcard clearing 
institutions in China.  
a. Articles 4 and 13 of the Administrative Measures for Bankcard Clearing Institutions refer to 
possible national security reviews for applicants to become license d as bankcard clearing 
institutions.  Are the envisioned national security reviews only required in the circumstances 
described in Article 26, which involve a foreign investor 's acquisition of a bankcard clearing 
institution?  Is it correct that a national s ecurity review will not be required for greenfield 
investments, where a foreign investor seeks a license for a wholly foreign -owned enterprise to 
become a bankcard clearing institution?  
Reply: The national security reviews provided for  by the Administrati ve Measures for 
Bankcard Clearing Institutions  not only apply to the circumstances described in 
Article  26, which involve a foreign investor 's acquisition of a bankcard clearing 
institution , but also apply to  greenfield investments (including both doemstic ally- and 
foreign -invest ed enterprises). All enterprises planning to  apply for license s of bankcard 
clearing institutions need  undergo a comprehensive assessment in accordance with the  
National Security Law of the People's Republic of China , to decide whether a national 
security review is required.  
b. Article 17(11) appears to require an applicant seeking a license to supply domestic currency 
bankcard clearing services in China to  submit a work plan for "migrating " the applicant 's existing 
foreign currency bankcard clearing services if the applicant intends to continue using a foreign 
brand.  The concept of "migration " is not defined.  Can China explain what Article 17(11) means by 
"migration "? Does an applicant that intends to continue using a foreign brand always need a 
migration work plan?  Does the applicant need a migration work plan if the applicant is established 
as a legally separate enterprise from the enterprise that supplies  foreign currency bankcard 
clearing services?  
Reply: According to Article 17(11) of the Administrative Measures for Bankcard Clearing 
Institutions , the foreign institutions that supply foreign currency bankcard clearing WT/TPR/M/3 42/Add.1  
 
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  services of their own brand in the mode of "cross -border delivery " shall migrate their 
cross -border foreign currency clearing services from their institutions outside China to 
their institutions in China , after establish ing entities in China and getting access to 
China 's domestic bankcard c learing market in accordance with law. Whether or not the 
applicants are established as legally separate from the original overseas institutions  
that provide  foreign currency bankcard clearing services, applicants invariably need to 
submit a migration work  plan as long as they intend to continue using a foreign brand.  
c. Article 22 appears to address dual -branded cards, i.e., cards that carry both a Chinese brand 
(such as China Union Pay) and a foreign brand, and appears to require these cards to use the BIN 
for the Chinese brand.  Is that correct?  Does this requirement apply to existing dual -branded cards, 
including those that currently use the BIN for the foreign brand, or does this requirement only 
apply to new dual -branded cards issued in the future?   
Reply:  According to Article 22 of the Administrative Measures for Bankcard Clearing 
Institutions , when a foreign insitutition cooperate with a domestic bankcard clearing 
institution to issue dual -branded cards, they should use the BIN for the doemstic 
bankcard c learing institution. This applies to both the existing dual -branded cards in 
China and new dual -branded cards to be issued in the future. In order to protect the 
lawful rights and interests of the cardholders of existing dual -branded cards, the 
original co operation mechanism shall still hold, so that such cards could be used and 
accepted  normally . However, when such cards expire or when the cardholders come to 
change cards, the new type of cards shall be issued in accordance with relevant  rules 
and regulati ons.  
Page 132,  paragraph 4.61:  The Secretariat 's report discusses the challenges presented by 
shadow banking in China.  
a. What percentage of the activity in the shadow banking sector can be attributed to the state -
owned banks in China (e.g.,  the Big Four sta te-owned commercial banks acting through related 
companies)?   
Reply: China  does not have such data.  
b. What regulatory constraints on the formal banking sector explain why shadow banking became 
the fastest growing segment of the financial services sector in r ecent years?   
Reply: Due to the big differences between China and developed countries in Europe and 
America  regarding  financial market environment s, architecture  of financial system s and 
regulatory framework s, there are also remarkable differences between the shadow 
bank s of China and those of the European and America n countries  in terms of the way of 
organization, source of capitals, modes of fund application, a s well as  features of 
functions. Overally speaking, shadow bank s in China have  emerged in respon se to the 
diversified needs of fund raisers and investors. To a certain extent, it is an important 
aspect of financial innovation and an integral component of the broad -sense financial 
market.  It has played a postive role in advancing the development of fi nance, serv ing 
the real economy and enriching the channels of investment for citizens.  
c. In what specific ways and for what specific reasons does shadow banking pose a systemic risk 
(to the formal banking sector) that the measures strengthening the regulato ry framework seek to 
address?  
Reply:  The lessons of international financial crisis suggest that shadow banking, if in 
lack of effective regulation, might cause grave risks. At present, the risks posed by 
shadow banking in China are generally control lable , yet some potential risks also lurk 
underneath the rapid development in some  areas, especially where  regulation s are not 
in place or insufficient. First, it has reduced the  effectiveness of macro -control  and 
financial regulation. Some shadow banks invest ca pitals into the financing platform of 
local government s, the real estate industr y and industries with high pollution, high 
energy consumption or excess capacity, which to a certain extent has impacted the 
progress of economic restructur ing. Moreover, t he rigid payment policy adopted by WT/TPR/M/3 42/Add.1  
 
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  shadow bank s covers up the debt proble ms, which may incur moral hazard and adverse 
selection. Second, it may pass risks on  to the regular financial system. The sources of 
capital and the business conduct s of shadow banking ar e intertwined with the regular 
financial system, thus once effective firewall s are out of place, the risks may get across 
to different sectors and markets. Some enterprises that get financing from both 
commercial banks and shadow banks may use the money bo rrowed from regular banks 
to pay their debts with shadow banks. Third, it may impact the business es of regular 
financing institutions. Some shadow banks provide unrational ly-high return rates, which 
would mislead the customers and worsen  illicit competitio ns, bringing business drain  to 
the regular financing institutions.  
Page 134,  paragraph 4.67:  The Secretariat 's report states that, "[d]uring the period under 
review, there were no significant changes as compared to the situation described in previous TPR 
reports regarding supervisory authorities and prudential regulations in the insurance subsector. " 
The United States notes that China recently notified the draft Supervision Rules on Insurance 
Institutions Adopting Digitalized Operations to the TBT Committee  (see TBT Notification 
CHN/1172).  In the draft rules, the China Insurance Regulatory Commission (CIRC) follows the 
trend among Chinese regulators of seeking to control the information and communications 
technology (ICT) procurement choices of businesses.  Among other things, like past efforts from 
other Chinese regulators, the draft rules tend to be vague in scope and either mandate or imply 
nationality -based requirements for purchasing ICT goods and services.  
a. In its TBT notification, China indicates that t he planned date of adoption of the draft rules 
coincides with the final date for comments from WTO Members.  This timeline for adoption of the 
draft rules does not permit CIRC to "allow reasonable time for other Members to make comments 
in writing, discuss these comments upon request, and take these written comments and the 
results of these discussions into account " in the final rules, as required by Article 2.9.4 of the 
Agreement on Technical Barriers to Trade.  Will China delay finalization of the draft rul es until 
comments submitted to the TBT Committee may be fully considered and addressed?  
Reply: The draft Supervision Rules on Insurance Institutions Adopting Digitalized 
Operations  was formulated after soliciting opinions extensively from within the 
insura nce industry , including foreign -invested enterprises . In December 2015 and 
January 2016, China Insurance Regulatory Commission communicated with 
representatives of the United States Information Technology Industry Association and 
the European Union Chamber  of Commerce in China  regarding the ir comments on the 
draft Supervision Rules , and reached quite extensive consensus  on the focal issues. 
After studies and assessments , China Insurance Regulatory Commission fully considered 
the feedbacks and heeded some of  the advices by revising and improving the draft 
Supervison Rules  to avoid any misunderstanding . On 19 April 2016, China Insurance 
Regulatory Commission submitted to the WTO TBT Committee the notification of the 
draft Supervision Rules on Insurance Institu tions Adopting Digitalized Operations . The 
comment period lasts 60 days , with the final date for comments falling on 19 June 2016; 
this is consistent with the requirements of the WTO/TBT Agreement . 
b. Article 8(8) and Article 31 of the draft rules impose a re quirement on insurance institutions to 
store data within China.  However, insurance institutions have both a fiduciary responsibility to 
their customers and financial incentives to ensure the secure storage and integrity of data 
regardless of where data is stored.  The draft rules do not appear to further that security and 
integrity, but instead impose restrictions that could unduly raise the cost for international firms 
doing business in China and also create fragmentation risks with regard to enterprise ris k 
management.  Will China remove this requirement from the draft rules?  
Reply: The above article was developed on the basis of relevent laws and regulations, 
especially Article 25 of National Security Law of the People's Republic of China, i.e. 
"Realize the  controllable security of the core technologies and crucial infrastructure of 
network and information and the information systems and data in important fields. " The 
purposes are as follows. First, it is to protect the lawful rights and interests of Chinese  
insurance consumers and make sure the security of personal data as well as the rights 
of knowing data application. Second, it is necessary for implementing on -site security 
check of insurance supervision information. If data is not stored within China, we  are 
lack of methods and ability to regulate. Third, it will not add cost prominently. In WT/TPR/M/3 42/Add.1  
 
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  addition to self -construction, data senters can be built through colabrative construction 
and outsourcing as well as other ways. Especially, cloud computing service b ehind the 
border is a better way for cost saving. Now many insurance institutions have already 
deployed data and information centers through third party cloud computing service, 
which dramatically decreased operation cost and  achieved good results.  
c. Article  53 of the draft rules requires insurance institutions to give preference to purchasing 
products that are "secure and controllable. " The draft rules do not provide a definition for "secure 
and controllable. " The absence of a definition raises concerns beca use other proposed Chinese 
government measures have defined the term "secure and controllable " to mean products and 
technologies with domestically owned and registered IP.  In other words, it appears likely that the 
reference to "secure and controllable " in the draft rules will be interpreted by CIRC to require that 
insurance institutions provide a preference to products, technologies or intellectual property of 
domestic origin.  Among other things, such a requirement would undermine companies ' flexibility to  
determine their own ICT product procurement decisions on the basis of their unique business 
considerations and as dictated by their legal and fiduciary responsibility to protect their customers ' 
information.  It would also impair the ability of insurance i nstitutions to quickly respond to new 
cybersecurity risks.  Furthermore, this requirement could result in companies needing to operate 
different ICT platforms for different markets, which would increase costs prohibitively and detract 
from business efficien cies without any guarantee of making the industry 's systems more secure.  
Will China ensure that its insurance institutions have the flexibility to freely choose ICT systems 
that maximize security and functionality by removing the mandatory requirement to g ive 
preference to the procurement of "secure and controllable " products from the draft rules?  
Reply: The above provision was developed on the basis of specific requirements in 
Article 24 and Article 25 of National Security Law of the People's Republic of C hina, i.e. 
"The state shall strengthen capability buildingin independent innovation, accelerate the 
development of independent and controllable strategic new and high technologies and 
core technologies in important fields. " "Realize the controllable securi ty of the core 
technologies and crucial infrastructure of network and information and the information 
systems and data in important fields. " The purpose is to uphold the network and 
information safety of insurance industry. It do not exclude foreign produc ts, service and 
technology, and is in line with ICT framwork secruity policy. This provision applies 
equally to Chinese domestic and foreign -invested insurance companies. "Secure and 
controllable " include but are not limited to the following: First, to mak e sure that users 
have rights to control their data, and no institutions should aquire, apply, revise and 
transfer comsumer data without users ' permission or against users ' will; Second, to 
make sure users have rights to control their own system, and no in stitutions should 
enter, change and control users ' system without users ' permission or against users ' will; 
Third, no institutions should make use of users ' dependency on products and services to 
seek unlawful benefits, including stopping or threatening to  stop providing reasonable 
technological support.  
d. Article 56 of the draft rules requires insurance institutions to follow the Ministry of Public 
Security 's Multi -Level Protection Scheme (MLPS).  While the United States understands that the 
MLPS is designed to ensure critical infrastructure sectors purchase ICT products and systems in 
accordance with their perceived level of national security risk, introduction of this scheme into the 
insurance sector carries with it the serious threat that, among other thing s, many foreign ICT 
products will be excluded from China 's market by incorporating level three requirements without 
justification.  Will China remove the reference to MLPS from the draft rules?  
Reply: Information system classified security protection is an important measure taken 
by the country for pressing ahead with information security. Insurance information 
system classified security protection is a concrete step of  implementing the relevent 
state requirements, aiming to uphold information security of in surance industry. As a 
major national industry of information system, insurance institutions can classify its 
own information systems by themselves and conduct  classified security protection  
according to standards and requirements of national information s ystem classified 
security protection and on the basis of importance. According to statistics, now there 
are 103 third level systems, which only account for a small proportion of insurance 
information system.  WT/TPR/M/3 42/Add.1  
 
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  e. Article 57 of the draft rules requires that info rmation security system certifications be 
accredited by China 's National Certification and Accreditation Administration (CNCA), which may 
unnecessarily raise costs for companies, or potentially threaten companies ' confidential 
information.  Can China explai n how it will recognize relevant international certification results to 
remove unnecessary efforts that are in conflict with or repetitive to international regimes?  Can 
China explain how it will allow conformity assessment to be conducted outside of China?   
Reply: The international standards ISO/IEC27000 adopted by that accredition is in line 
with Chinese national standarts. The two standards are just two language versions 
sharing the same content, which can be mutual trusted. No matter Chinese or foreign 
certification authorities, as long as they get industrial and commercial registration 
within China and meet standard conditions, they can appaly to and be accredited by 
China 's National Certification and Accreditation Administration. Therefore, foreign 
certification authorities can aquire the service qulification of accrediting information 
security system certifications within China without discrimination. Multi national 
corporations can also choose to be accredited by this kind of institutions in order to 
meet the requirement of this provision.  
f. Article 58 of the draft rules requires insurance institutions to conduct international data 
transmissions "in accordance with relevant Chinese regulations. " The vagueness of this 
requirement and the absence of any ref erence to specific measures could encourage burdensome 
restrictions on the transfer of data across borders by firms striving to comply with the 
requirement.  Given the international nature of the modern economy and insurance markets, an 
insurance institutio n's ability to transfer data across borders to its headquarters or other locations 
is important for conducting data analysis to improve the quality of its risk management.  Cross -
border data transfers could also be necessary for international businesses to meet regulatory 
obligations in their home countries or other jurisdictions.  Will China make clear in the draft rules 
that insurance institutions will be permitted to conduct cross -border data transfers?  
Reply: The above article was developed on the basis o f relevent laws and regulations, 
especially the Article 25 of National Security Law of the People's Republic of China, i.e. 
"Realize the controllable security of the core technologies and crucial infrastructure of 
network and information and the informatio n systems and data in important fields. " 
When it is necessary to provide data cross border, data should be assessed according to 
relevent regulations fomulated by cyberspace affairs departments and relevent 
departmens of State Concil. Where laws and admini strative regulations provide 
otherwise for the data transfer, those provisions shall prevail.  
g. Can China explain how it views the draft rules ' requirements regarding domestic cryptography 
(Article 54), security mechanism (Article 25(e)) and MLPS at security  levels 3 and above 
(Articles  20 and 56) in light of Article III.4 of the GATT 1994 and Article 2.1 of the Agreement on 
Technical Barriers to Trade?   
Reply: Cryptography is an internationally recognized civil -military  dual-use item and 
technology. According to Regulations on the Commercial Passwords, China conducts 
management of cryptography, which is to meet  the need of protecting information 
security, pertecing lawfull rights and interests of citizen and institutions and upholding 
national security and interests, and not against basic principles of GATT and TBT. Usage 
of cryptography within China by insuranc e institutions should be  in compliance with 
Regulations on the Commercial Passwords and national requirements of cryptography 
application in financial sector. In the draft proposal of Insurance Regulatory Commission 
(CIRC) Information and Communication Tec hnology Regulation, there is no new 
requirement about cryptography application in insurance industry beyond relevant 
national policies and regulations and the phrase "domestic cryptography " has never 
been used.  
4.2.4 Audiovisual services   
Page 143,  paragra ph 4.105:  The Secretariat 's report explains that the establishment of foreign -
owned film production companies in China is prohibited.  The United States notes that Chinese film 
production companies make hundreds of films each year, and that these films now capture well WT/TPR/M/3 42/Add.1  
 
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  over 50 % of total box office revenue in China annually.  The United States also notes that China is 
now the second largest market in the world in terms of box office revenue.  What is China 's 
justification for continuing to prohibit the establis hment of foreign -owned film production 
companies in China?   
Page 143,  paragraph 4.105:  The Secretariat 's report explains that the establishment of foreign -
owned film distribution companies in China is prohibited.  The Secretariat 's report also notes the 
dramatic expansion of China 's film market from 2010 to 2015, when the number of indoor screens 
increased from 6,256 to 31,627 and total annual gross box office receipts for feature films rose 
from RMB 10.2 billion to RMB 44.1 billion.  Given this dramatic grow th, what is China 's justification 
for continuing to prohibit the establishment of foreign -owned film distribution companies in China?  
Reply: It is the same question as the above one. Reply: China 's GATS commitments do 
not include film making service. Estab lishing film production companies in China has 
special cultural requirements. Conuntries and regions dramastically differ from one 
another in chulture. This is more prominent when it comes to oriental and western 
culture. Chinese, as a unique language, has  its own cultural independence in terms of 
content. At present, Chi na already has over 2000 film prduction compines, producing as 
many as 700 feature films annually, but only about 300 feature films can be screened, 
reflecting the firce competition in the Chinese film market. China will decide the future 
oppening up measures of film market in light of the development demand of China 's 
demestic film market.  
Page 142,  paragraph 4.105:  The United States understands that numerous Chinese companies 
participate i n the distribution of films in China.  The United States also understands that only one or 
two state -owned Chinese companies supply digital keys to cinemas, enabling them to exhibit a 
particular digital film being distributed.  Does China prohibit other Chin ese companies from 
supplying digital keys to cinemas?  Are there any restrictions on other Chinese companies 
supplying digital keys to cinemas?  Please explain.  
Reply: China has no restrictions on digital keys making. Film producers can entrust 
different com panies to make digital keys for their films and distribute digital keys to 
national cinemas through two platforms. Building third party platform for digital keys 
distribution is a common practice in many contries. It is learned that DELUX is in charge 
of the making and distributing digital keys for six American film producing companies, 
which shows that American restrictions torwards digital keys supply is far stricter than 
China.  
Page 142,  paragraph 4.109:  The Secretariat 's report catalogues the broad inve stment 
prohibitions and restrictions imposed on foreign investors with regard to the production, 
distribution and exhibition of films in China.  The report also discusses other restrictions imposed 
by China, such as an import quota.  The United States unders tands that China also continues to 
maintain a measure calling for two -thirds of screen time in China to be reserved for domestically 
made films.  How does China continue to justify this measure in light of the considerable growth in 
all segments of its film  sector?   
Reply: China 's film market capacity is limited. China produces about 700 films anually 
while only half of them can be shown in cinema. Film, as a cultural product, has the 
responsibility to facilitate cultural exchanges and transmission. Therefor e, it is 
necessary to provide proper time and space for films featuring "multitype, multiform, 
multinational and multi -culture patterns " (including imported films through buyout). As 
a result, China maintains import quota for revenue -sharing films, which a re single type 
and mainly commercial films. As for screen time, the proportion of screening domestic 
and foreign films is according to Regulations on Administration of Films published by the 
State Council. For the time being, the reason for longer screenin g time of China 's 
domestic films than imported films is that Chinese domestic films are more appealing 
and attractive to Chinese audiences with its domestic cultural taste.  WT/TPR/M/3 42/Add.1  
 
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  5 APPENDIX TABLES   
Page 160, Table A2.4:  Table A2.4 of the Secretariat's report ref erences certain investment 
restrictions that China imposes on online publishing services.   
a. Please explain the relationship between the restrictions on the activities of Chinese -foreign joint 
ventures, Sino -foreign cooperative joint ventures and foreign inv estment businesses under 
Article  10 of the Administrative Regulations on Online Publishing Services and China's specific 
commitments under the General Agreement on Trade in Services to permit the cross -border supply 
of audio -visual distribution services wi thout any limitations?   
Reply: China 's GATS commits do not include publishing service. The relevant provisions 
of the Administrative Regulations on Online Publishing Services are in line with the WTO 
rules. 
b. Please explain the relationship between the restr ictions on the activities of Chinese -foreign joint 
ventures, Sino -foreign cooperative joint ventures and foreign investment businesses under 
Article  10 of the Administrative Regulations on Online Publishing Services and China's specific 
commitments under t he General Agreement on Trade in Services to permit foreign service 
suppliers to engage in contractual joint ventures with Chinese partners to engage in the 
distribution of audiovisual products?   
Reply: Please refer to  the reply to question "a". 
WT/TPR/G/3 42 
2 ECONOMIC AND TRADE ENVI RONMENT AND MACROECONOMIC POLICY DIRECTION  
2.3 ADJUSTING ECONOMIC STRUCTURE AND TRANSFORMING DEVELOPMENT PATTERN  
2.3.3  Strengthening the protection of intellectual property rights   
Page 8,  paragraph 2.22:  The Chinese Government 's report indicates that the National Leading 
Group on the Fight Against IPR Infringement and Counterfeiting has been working to ensure 
implementation of law enforcement against IPR infringement at provincial, municipal and county 
levels.  How does the Natio nal Leading Group evaluate the effectiveness of IPR enforcement at 
provincial, municipal and county levels?  If provided, will the National Leading Group give 
substantial weight to reports provided by right holders doing business in China?  
Reply: The Natio nal Leading Group on the Fight against IPR Infringement and 
Counterfeiting conducts performance evaluation at provincial, municipal and county 
levels annually, in which quantification marking is an important basis for evaluating 
local governm ent's work.  
Page 8,  paragraph 2.23:  The Chinese Government 's report indicates that the Chinese 
Government has launched an action "to preserve the overseas image of products made in China, 
strengthened management over the source of production . . . and improved the quali ty of exported 
products made in China. " Nevertheless, customs authorities in various countries report that China 
continues to be the source of majority of the world 's trademark counterfeit products.  What specific 
steps has China taken to effectively resolv e this problem and when should clear results be 
expected?  
Reply: China holds that both producing and exporting countries as well as consuming 
and importing countries should undertake supervisory responsibility to strengthen 
inforc ement cooperation in ever y link of production, logistics transportation, import and 
export as well as marketing and sales, thus effectively cracking down on illegal activities 
of infringement.  
Chinese cust oms attach great importance to IPR protection and add have increased 
input in IPR enforcement to strengthen port enforcement and cooperation with domestic 
enforcement departments. Chinese cust oms pay specially attention to coo peration with 
customs of other countries to effectively intercept cross -border flow of infringement 
goods by sharing statistics of IPR infringement cases, real time information exchanges WT/TPR/M/3 42/Add.1  
 
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  of individual case information, joint enforcement action and cooperation with right -
holders.  
Page 8,  paragraph 2.23:  The Chinese Government 's report indicates that the Chinese  
Government has "carried out special programs to crack down on online infringement and piracy. " 
However, other government actions have the unintended consequence of increasing piracy.  
Regulations issued by the State Administration of Press, Publication, Ra dio, Film and Television 
have considerably delayed the ability of legitimate providers of serial television dramas from 
offering licensed content to consumers in China, creating a greater incentive for consumers to seek 
the pirated content from unlicensed sources.  Is China 's Government working in a coordinated 
fashion to promote timely availability of licensed content in order to reduce copyright piracy?  
Reply: The copyright management of Chinese government does not contradict the 
content management by oth er government departments. Copyright management is 
conducted in the principle of "permission first; authorization later. " In the monitoring of 
serial television dramas by Nationa l Copyright  Administration , no prominent increase of 
copyright piracy cases were found.  
Page 8,  paragraph 2.23:  The Chinese Government 's report indicates that China is amending its 
Copyright Law.  There have been news reports indicating that China 's State Council Legislative 
Affairs Office (SCLAO) recently released its Legislative Work Plan for 2016, categorizing the 
copyright law amendments as a "preparatory project " subordinate to "urgent projects " requiring 
immediate completion and "projects planned to be completed in 2016. "  
a. Please explain whether the priority level for the copyright reform a mendments cited in the news 
report remains accurate, and provide an update on the current timeline for the SCLAO 's 
completion of its review of the Copyright Law amendments.  
Reply: Amendment of Copyright Law has been incorporated into the Legislative Work 
Plan for 2016 of State Council. The revised draft  submitted for review was published on 
China 's Government Legislative Information Network for public comments between 
5th June to 5th July, 2014. China will listen attentively to views of all sectors, carry out 
in-depth study on those opinions and proactively press ahead with legislative process.  
b. Does the category of "preparatory project " mean a completion date in 2017, or a later yea r?  
Reply: Amendment of Copyright Law has been incorporated into the Legislative Work 
Plan for 2016 of State Council.  China will listen attentively to views of all sectors, carry 
out in -depth study on those opinions and proactively press ahead with legisla tive 
process.  
c. What copyright topics are currently under discussion as part of SCLAO 's review?  
Reply: For specific topics, please refer to the website below:  
http://www.ch inalaw.gov.cn/article/cazjgg/201406/20140600396188.shtml  . 
d. What consideration is being given to expressly clarifying that original recordings of the images, 
or sounds and images, of live events, including sports events, are protectable as copyrightable 
works under China 's Copyright Law, regardless of whether the underlying event is copyrightable?   
Reply: For this specific qu estion, please refer to the expla nation about the revised draft 
submitted for review. The website is as follow:  
http://www.chinalaw.gov.cn/article/cazjgg/201406/20140600396188.shtml  . 
e. When is it expected that SCLAO will submit i ts final draft to the National People 's Congress?   
f. Will the final SCLAO draft be available for public comment?   
Reply to Question E -F: Amendment of Copyright Law has been incorporated into the 
Legislative Work Plan for 2016 of State Council. The revised draft  submitted for review 
was published on China 's Government Legislative Information Network for public WT/TPR/M/3 42/Add.1  
 
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  comments between 5 th June to 5 th July, 2014. China will listen attentively t o views of 
all sectors, carry out in -depth study on those opinions and proactively press ahead with 
legislative process.  
g. What are the anticipated dates for NPC approval and issuance of the final Copyright Law 
amendments?   
Reply: Amendment of Copyright Law has been incorporated into the Legislative Work 
Plan for 2016 of State Council. The revised draft  submitted for review was published on 
China 's Government Legislative Information N etwork for public comments between 
5th June to 5 th July, 2014. China will listen attentively to views of all sectors, carry out 
in-depth study on those opinions and proactively press ahead with legislative process.  
Page 8,  paragraph 2.23:  Please explain wh at preparations China has made to join the Geneva 
Act of the Hague Agreement Concerning the International Registration of Industrial Designs (the 
Hague Agreement), and the proposed time line for accession.  
Reply: China is stud ying and considering joining the Hague Agreement.  
Page 8,  paragraph 2.23:  The United States understands that China is studying the 1991 Act of 
the International Convention for the Protection of New Varieties of Plants (the UPOV Convention).  
a. Please explain whether China intends to joi n the 1991 Act of the UPOV Convention, and the 
proposed timeline for its accession.  
Reply: Currently , China has no plan to join the 1991 Act of the UPOV.  
b. What law or regulatory changes must China make in order to join the 1991 Act of the UPOV 
Convention?  
Reply: Currently, China has no plan to join the 1991 Act of the UPOV.  
2.3.4 Pursuing innovation -driven development   
Page 8,  paragraph 2.25:  The Chinese Government 's report indicates that "the Chinese 
government has regarded innovation as a core priority, " that is, has "pushed forward 
entrepreneurship and innovation by the public, and that it "has made great efforts to cultivate new 
elements, develop new industries and create new models. " Yet enterprises operating in China 
report that certain innovation incen tives and market access opportunities are not open to 
enterprises that choose to locate intellectual property rights or that conduct their research and 
development activities outside of China.  Does China intend to open incentives and market access 
to enter prises, domestic and foreign, on a non -discriminatory basis?  
Reply: China has no idea about the specific questions ra ised here. Please provide further 
details for evaluation. China 's "Entreprene urship and Innovation by the public " policy 
aims at boosting i nnovation and will provide a level playing field for the R&D activities  
within China.  
Page 8,  paragraph 2.26:  How does China 's "Internet Plus " program relate to the restrictions that 
China imposes on and the barriers that China has created to digital trade, including its filtering of 
cross-border Internet traffic and its data localization measures?   
Reply: Currently, there has not been an internationally recognized definition of digital 
trade. China 's "Internet Plus " program has not imposed restrictions on and created 
barriers to digital  trade.  
Page 9,  paragraph 2.27:  How does China 's "strategy of innovation -driven development, big 
data, electronic commerce, . . . as well as other new forms of business " relate to the restrictions 
that China imposes on and the barriers that China has creat ed to digital trade, including its 
filtering of cross -border Internet traffic and its data localization measures?   WT/TPR/M/3 42/Add.1  
 
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  Reply: "Internet Plus " program integrates innovation achievements on internet toghter 
with development of economical and social sectors, to p romote teconological progress, 
improved efficiency and institutional reform, advance the innovative and productive 
ability of real economy and create a new and broad socioeconomic development 
landscape on the basis of Internet as infrastructure and innovat ive factors. China has 
always been open to Internet and welcome outs tanding good enterprises worldwide to 
provide morequality services for the Chinese people through Internet under the 
framework of Chinese laws and regulations.  
Page 9, paragraphs 2.29 and 2.30:  The Chinese Government 's report notes that 90 million 
metric tons of steel capacity ha ve been closed.  During which period were these steelmaking 
capacities closed?  Were the closures that were made net closures of capacity, i.e., did total 
steelmaking  capacity in China decrease as a result of these closures?  Have any of these backward 
capacity facilities that were closed re -opened?  If so, how much of the capacity has been 
re-opened?   
Reply: The 90 million tons of steel capacity which has been closed du ring "the Twelfth 
Five-year Plan " period was net cut capacity, including demolishment and storage, which 
cannot be restarted.  
2.3.6 Consolidating and strengthening the foundation for agriculture   
Page 9,  paragraph 2.31:  The Chinese Government 's report stat es that the Chinese government 
firmly promotes agricultural modernization.  Please explain how China 's policy prohibiting the 
review of foreign biotechnology applications until the products are approved in the country of 
origin or export is consistent with China 's objective to modernize when, as a result of this policy, 
Chinese farmers are deprived of needed new technology to combat pests and environmental 
stresses.  
Reply: First, China has clear policies about genetical modification: stud ying proactively, 
spreading prudently, management according to law and ensuring safety. Second, 
according to Regulations on Administration of Agricultural Genetically Modified 
Organisms Safety, offshore companies who i ntend to export Agricultural Genetically 
Modified Organis ms to China need to make sure the products are approved in the 
country origin of export before applying for safety review. This institutional 
arrangement aims to prevent the technological risk of genetical modification and make 
sure the safety of Genetical ly Modified products; it is not prohibitive regulation on 
transgene technology. Third, genetically modified cotton has already been widely 
planted in China. China 's relevant regulations are for the safety of Genetically Modified 
products.US misinterpreted Chinese regulations to ensure products safe ty as barriers for 
farmers to appl y new technology, which has gone too far from the original policy 
intention.  
Page 10,  paragraph 2.32: The Chinese Government 's report states:  "Efforts were made to . . . 
reform an d improve the policy on agricultural support, including integrating the subsidy to 
purchase agricultural machinery and tools, the subsidy to promote the use of superior strains and 
seeds and the direct subsidy to farmers into agriculture support and protec tion subsidy. "  
a. Please provide a list of agricultural subsidies that have been implemented or subject to 
significant revision since China 's last TPR in 2014.   
Reply: In 2004, pilot reforms of target price for cotton and soybean were conducted. In 
2015, pil ot reform of "three subsidies " were introduced, which was rolled out across the 
country in 2016. In 2016, reform of corn reserve system began to be implemented.  
b. Please provide a clear description of these subsidies including products, recipients, objective s, 
results and the yearly budget (including by province if a subsidy measure is not implemented 
through a national program).  WT/TPR/M/3 42/Add.1  
 
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  Reply:  
1. Target Price Reform  
Subsidized goods: cotton, soybean. Targeted people: producers. Target: guarantee  
stable income for produ cers. Annual budget: unknown.  Scope of policy application: 
Xinjiang (for cotton)  and 3 pro vinces in northeastern China and Inner Mongolia (for 
soybean).  
2. "Three Subsidies " Reform  
Subsidized goods: not coupled with specific products. Targeted people: farm ers who has 
contract right of land. Target: increasing farmers ' income; encouraging farmers to 
protect environment; improve soil; maintain and improving land productivity. Annual 
budget: unknown  
3. Corn -Producers Subsidy  
Subsidized goods: corn. Targeted people: corn -producers in certain regions of 
3 provinces in northeastern China and Inner Mongolia. Target: compensate income loss 
of corn -producers caused by policy changes. Annual bu dget: unknown.  
c. Has China notified all of its agricultural subsidies to the WTO?   
Reply: Relevant agricultural subsidies will be reflected in the annual domestic support 
notification.  
2.4.4 Reform of state -owned enterprises and development of the private ec onomy   
Page 12,  paragraph 2.46: Please provide information on whether SOEs that are allocated cotton 
TRQ or are licensed for export are listed as commercial enterprises or non -profit enterprises.  
Reply: The SOEs applying for TRQ are all commercial enterpri ses. 
3.3 PAYING EQUAL ATTENTION TO THE STRATEGIES OF FDI ATTRACTION AND GOING 
GLOBAL   
3.3.1 Optimizing the utilization of foreign investment while opening wider to the outside 
world   
Page 20,  paragraph 3.31: The Chinese Government 's report states that the 2015 revision to the 
Catalogue for the Guidance of Foreign Investment Industries reflects the Chinese Government 's 
further efforts to encourage foreign investment in modern agriculture.  Please explain why China 
continues to limit foreign direct investment in the agricultural biotechnology sector, the grains 
sector and the agricultural processing sector if China is interested in encouraging foreign 
investment and modernization of its agriculture sector.   
Reply: The 2015 revision to the Catalogue for the Guid ance of Foreign Investment 
Industries encourages foreign enterprises to invest in numerous related areas of 
modern agriculture. At the same time, out of consideration to guarantee food safety and 
preserve bio -diversity, China retains restrictions on foreig n investment in a few sectors.  
Page 20,  paragraph 3.32:  The Chinese Government 's report discusses equity restrictions that 
have been lifted, including in the steel sector.  Which equity restrictions in the steel sector were 
lifted?  Are equity restrictions f or foreign direct investment "by and large " lifted for investment in 
China 's steel sector, as the report indicates?  If not, what are the remaining restrictions on foreign 
direct investment in the steel sector in China?  Is China considering lifting those re strictions?   
Reply: According to the Catalogue for the Guidance of Foreign Investment Industries 
(revised in 2015), on the whole, China has lifted the equity restriction on FDI in the 
steel and iron industry.  WT/TPR/M/3 42/Add.1  
 
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  3.3.2 Improving competitiveness through going g lobal   
Page 22  paragraph 3.40:  Does China Eximbank or China Development Bank provide any 
financing for the OBOR initiative?  Are any of the financing vehicles export credits?  Please explain.   
Reply: Please refer to the website of Eximbank or China Developme nt Bank to check 
details if any.  
3.4.2 Safeguarding the multilateral trading system with concrete actions   
Page 24,  paragraph 3.52:  At the 10th WTO Ministerial in Nairobi, Ministers agreed to proceed 
with ITA Expansion implementation and make initial tarif f cuts by July 1, 2016 subject to the 
completion of domestic procedures. In late June, China indicated that it would miss the agreed 
deadline.  Can China please confirm when it will make initial tariff cuts on ITA covered goods, and 
also when it will submit  its notification under the 1980 procedures to modify its bound tariff 
schedule to incorporate ITA Expansion commitments?   
Reply: According to the Chinese law, China needs to submit the schedule of concessions 
for the ITA expansion to the Standing Committe e of the National People's Congress for 
consideration and approval, before eliminating tariffs and submitting notifications to the 
WTO. China has already started the domestic approval process, and will implement the 
outcome of the ITA expansion negotiation s soon after the process.   
Part III: Other question  
1.  China 's draft Cyber Security Law was released for public comment on July 6, 2015.  China 's 
National People 's Congress (NPC) announced in its 2016 work plan that a second reading of the 
draft law is sch eduled for June 2016 and that the draft law could be finalized as early as 
October  2016.  We understand that China conducted a second reading of the draft Law during the 
week of June 27.   
a. Please provide an update on the status of China 's consideration of th e draft law, including 
whether the draft law is still on schedule for possible adoption in October 2016.  
Reply: The formulation of  draft Cyber Security Law will be proceeded according to  
China 's domestic legistative requirements. On 27th June, 2016, the t wenty -first meeting 
of the National People's Congress  Standing Committee conducted the second  review of 
the draft Cyber Security Law of PRC.  
b. The United States and other WTO Members have urged that this law be developed in an open 
and inclusive way that tak es into account feedback from domestic and foreign stakeholders.  Will 
China open another public comment period after the NPC 's second reading of the draft law?  
Reply: In the formulation  process of Cyber Security Law of PRC, the draft has been 
released for public comment twice following the principle of openness and inclusiveness. 
Currently, the second reviewed  version of the draft Cyber Security Law of PRC is 
available  on the website of NPC for public comment. Before t he deadline of 
4th August,  2016 , the p ublic can put forward their comments.  
c. Can China confirm that the requirements in the draft law will only be applied to national 
defen ce infrastructure and not applied to private sector goods that are not intended for China 's 
national defen ce infrastructure?   
Reply: Cyber Security Law of PRC is still in the legislative process. Specific provisions are 
undecided . 
2.  The China Food and Drug Administration issued Opinions on Implementing Priority Review and 
Approval and Resolving the Backlog of Drug Registratio n Applications.  These Opinions set forth the 
scope of CFDA's "priority review and approval " of pharmaceutical products.  Among the criteria of 
drugs eligible for priority review and approval are "innovative new drugs with manufacturing site WT/TPR/M/3 42/Add.1  
 
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  transferred to C hina" and "new drugs listed in the National Major Science and Technology Projects 
and National Key R&D Plan. "  
a. Can China explain the relationship between the provisions of a regulatory incentive for the 
transfer of manufacturing to China and China 's obliga tions under Article 2 of the WTO Agreement 
on Technical Barriers to Trade?  
Reply: According to Opinions on Implementing Priority Review and Approval and 
Resolving the Backlog of Drug Registration Applications, in addition to "innovative new 
drugs with man ufacturing site transferred to China ", the scope of CFDA's "priority 
review and approval " of pharmaceutical products also includes "innovative new drugs 
that have not been on the market domestic and abroad  for sales . Therefore, other 
innovative new drugs c an apply under this provision without discrimination. If there are 
objections to the decisions of authorities , written opinions can be submitted to the drug 
review centr e within five days of public  notice regarding the kinds for priority review 
and approva l. 
b. Can China explain the criteria and process used to determine which products are listed on the 
National Major Science and Technology Projects and National Key R&D Plan?  
Reply: Please check the websites of Ministry of Science and Technology and other  
relevant management department.  
3.  The Opinions on Implementing Priority Review and Approval and Resolving the Backlog of Drug 
Registration Applications also provide drug applications that meet "urgent unmet medical needs " 
with the opportunity for "priori ty review and approval. "  
a. Can China explain what criteria are used to determine a situation of "urgent unmet medical 
need"? 
Reply: For more de tails, please refer to the website below ： 
http://www.sda.gov.cn/WS01/CL0844/145260.html  . 
b. We also request China 's explanation for the process used by the National Health and Family 
Planning Commi ssion and Ministry of Industry and Information Technology to make this 
determination.  
Reply: Drug manufacturers need to apply to provincial (regional, municipal) industrial 
competent departments, and products would be recommended to Ministry of Industry 
and Information Technology by provincial competent departments. Then the Ministry of 
Industry and Information Technology and the National Health and Family Planning 
Commission organize specialists for reasoning and selecting the products which meet 
"urgent m edical need in short supply ". The list of recommended products will be 
submitted by the two departmen ts to State  Food  and Drug  Administration  in written.  
c.  If a party objects to the decision made by the National Health and Family Planning Commission, 
Ministry of Industry and Information Technology, or China Food and Drug Administration, what is 
the process for the party to oppos e the decision?   
Reply: If there is  any objection, please report to China Food and Drug Administration.  
 WT/TPR/M/3 42/Add.1  
 
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  48  UNITED STATES (FOLLO W-UP) 
Part I: WT/TPR/S/342  
SUMMARY  
1. In a question addressing page 8, paragraph 2, of the Secretariat 's report, the United States 
referenced State Council guidance issued in 2016 regarding structural reforms to address excess 
steel capacity.  After noting that China had issued numerous measures since 2005 to rein in excess 
capacity in the steel sector  without success, the United States asked whether new approaches 
were being pursued by the State Councils 2016 guidance.  In its response, China stated that over 
90 million metric tons of crude steel capacity had been cut during the 12th Five -Year Plan, 
covering 2011 through 2015.  The United States notes, however, that during this same time period 
China's  steelmakers built new capacity that resulted in an overall net increase of over 
350 million  metric tons of steel capacity after taking into account capacity cuts.  
a. Given that this overall net  increase in steel capacity in China occurred during a time period 
when steel demand was slowing both in China and the rest of the world, can China explain how the 
market was allowed to work to allow firms to exit the market during this time period, i.e., 2011 
through 2015?  
Reply: The market was allowed to work  means  that the market is operated according to 
the principle of the  market economy . Market operation in  China  and the US follow the 
same principle . Between 2011 and 2014, driven by the increas ing demand, China's  crude 
steel output kept increasing. The Guiding Opinions of the State Council on Resolving 
Overcapacity (Guo Fa [2013]  No. 41) unveiled i n 2013  set forth accelerating the 
elimination of backward production capacity through policy guidance and make power, 
by upgrading the standards on energy consumption and pollutant emission, strictly 
implementing particular emission limits and intensifying law enforcement and penalty. 
Between 2011 till 2015, China mainly focused on phas ing out backward product ion 
capacit y that  was heavily polluting and energy -consuming. S uch capacit y was forced to 
be phased out from the market . 
b. Can China explain how the significant increase in steel capacity from 2011 through 2015 was 
financed?   
Reply: The  projects were funded by raising money or financing according to market 
rules by the enterprises, which is  part of their own business operation .  
2. In a questio n addressing page 8, paragraph 2, of the Secretariat 's report, the United States 
asked whether China envisions taking st eps beyond those outlined in the State Councils 2016 
guidance for addressing the excess capacity situations in the steel and aluminum industries.  In its 
response, China stated that it has established an inter -agency joint conference mechanism on 
reducing o vercapacity in the steel industry.   
a. Can China describe how this mechanism works?  What authority does this mechanism have vis -
à-vis provincial governments or steel enterprises?  Will this mechanism issue or recommend the 
issuance of new measures for addressi ng excess steel capacity?  If so, will these new measures be 
made public?  
Reply: The inter -ministerial joint conference mechanism on reducing overcapacity in 
steel and coal sectors to achieve development by solving the difficulties consist s of 
25 agencies s uch as NDRC, the Ministry of Industry and Information Technology  and etc. 
The inter -ministerial  joint conference mechanism has put in place a detailed working 
regime , where conferences are convened on a regular or irregular basis according to 
actual workin g needs, and where member agencies formulate  and implement relevant 
policy measures in line with their own responsibilities, and study and coordinate with 
each other in address ing specific issues  at the central government level.  
b. Does China intend to estab lish a similar mechanism for reducing overcapacity in the aluminum 
industry?  WT/TPR/M/3 42/Add.1  
 
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  Reply: Given the fact that under the existing work ing mechanism , notable results were 
achieved  in addressing overcapacity of electrolytic aluminum , there is no plan at present  
to establish an inter -ministerial  joint conference mechanism in this regard.  
3. In questions addressing page 8, paragraph 2, of the Secretariat 's report, the United States 
asked for the Chinese Government 's estimate of the current amount of excess crude steelmak ing 
capacity in China and whether China envisions taking steps beyond those outlined in the State 
Councils 2016 guidance for addressing the excess steel capacity situation.  In its response, China 
stated that it has already achieved significant results.  It added that the State Councils 2016 
guidance calls for the elimination of 100 to 150 million metric tons of crude steel production 
capacity.  
a. Can China explain what significant results have been achieved in the reduction of crude steel 
production capacity?  
Reply: From January to June 2016, the aggregate output of crude steel in China dropped 
by 1.1%  year on year. This, together with the overall effect s of such factors as 
inventory , demand and expectancy, has enabled the steel enterprises to perform better 
in their business operation. The repayment of loans became better, and the market 
expectancy  also improved . 
b. What is the amount of excess capacity that China estimates exists in China today?   
Reply: As a reflection of the gap between supply and demand in the g lobal market, 
excess capacity changes with market circumstances , and is thus difficult  to be 
estimat ed.  
c. Please explain China's  views on whether its excess capacity will be eliminated if it achieves the 
State Councils goal of eliminating 100 -150 million me tric tons of crude steel production capacity 
within five years.  
Reply: After achieving the goal of eliminating 100 -150 million metric tons of crude steel 
production capacity within five years, the capacity utilization  rate of the steel industry 
will stay i n a reasonable range.  
d. Does the figure of 100 -150 million metric tons in the State Councils 2016 guidance  represent a 
net capacity closure goal or a gross capacity closure goal?  
Reply: The figure of 100 -150 million metric tons represents a reduction on the basis of 
the national crude steel output.  
4. In questions addressing page 8, paragraph 2, of the Secretariat 's report, the United States 
asked for the Chinese Government 's estimate of the current amount of excess primary aluminum 
capacity in China and whether  China envisions taking steps beyond those outlined in the 2016 
State Council guidance for non -ferrous metals, including aluminum, to address the excess primary 
aluminum capacity situation.  In its response, China stated that, f or aluminum, its capacity 
utilization rate was approximately 82 % in 2014.  
a. The United States understands that China's  capacity utilization rate for aluminum has been 
falling since 2014 and that, according to some estimates, will remain below 70 % through 2020.  
What is the capacity utili zation rate for aluminum today (or during the most recent period for 
which data is available)?  
Reply: since 20 13, China's  capacity utilization  rate for electrolytic  aluminum has been 
above 80%, on par with the world average level.  
b. Does China foresee improv ement in its capacity utilization rate for aluminum?  Please explain.  
Reply: Since 2013, the overcapacity situation in China's  electrolytic aluminum industry 
has already improved; the expansion of new capacity has basically been curbed.  WT/TPR/M/3 42/Add.1  
 
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  c. What are the reason s capacity utilization has been falling in China's  aluminum industry?  
Reply: Capacity utilization has not been falling in China's  electrolytic  aluminum industry  
since 2013 . 
5. In questions addressing page 8, paragraph 2, of the Secretariat 's report, the Unite d States 
asked China to describe the institutional factors at the local government level that frustrate or 
inhibit the process of supply side adjustment in industries with excess capacity and to identify 
concrete steps taken by the central government to ad dress these factors.  In its response, China 
noted that some enterprises including private and foreign funded enterprises have been too 
optimistic about the market in their expectation and business decision.  
a. Is it the Chinese Governments view that SOEs have  not been among those companies making 
overly optimistic investment decisions in excess capacity industries in China such as steel and 
aluminum? . 
Reply:  The Chinese government is of the view that some enterprises including private 
and foreign funded enterp rises have been too optimistic about the market in their 
expectation and business decision . Enterprises of other types of ownership may be 
included in these some enterprises.  
b. What does China mean by foreign funded enterprises?  
Reply: Foreign funded enterpr ises refer to the enterprises that are invested  by foreign 
firms, enterprises and other economic organizations or individuals  within the territory of 
China , including Sino-foreign equity joint ventures  Sino-foreign cooperative joint 
ventures , wholly foreig n-owned enterprises , etc.  
c. What portion of the steel industry in China is foreign funded?  
Reply: No such data  is available  at present . 
d. What portion of the aluminum industry in China is foreign funded?  
Reply:  No such data  is available  at present . 
e. Have Chines e banks also been too optimistic about the market?  
Reply: the State Council issued the Guiding Opinions of the State Council on Resolving 
Overcapacity  (Guo Fa [2013]  No. 41), and guided market players of all types to observe . 
1.2.2 Structural reform measur es 
6. In a question addressing page 22, paragraph 1.23, of the Secretariat 's report, the United States 
asked about the government approval process for new capacity -expanding projects in industries 
with excess capacity.  The United States asked this question in  order to better understand how 
China intends to implement 2016 State Council guidance not to expand capacity in the steel and 
aluminum industries.  In its response, China stated that projects not funded by the government 
were no longer subject to examinati on and approval  
a. On average, what percentage of projects in the steel industry are funded by the government 
and therefore are subject to examination and approval?  
b. On average, what percentage of projects in the aluminum industry are funded by the 
government and therefore are subject to examination and approval?  
c. How does the Chinese Government intend to regulate new capacity -expanding projects in the 
steel and aluminum industries that are not funded by the government?  WT/TPR/M/3 42/Add.1  
 
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  Reply to Question s a-c: According to the e xisting investment management system, 
government funded projects are subject to examination and approval. At present, there 
are no government funded projects in the steel and aluminum industries. The 
requirements set forth by the State Councils Guidance al so apply to non -government -
funded steel and aluminum projects.  
2.1 Institutional and Legal Framework  
7. In a question addressing page 34, paragraph 2.7, of the Secretariat 's report, the United States 
recalled 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 availab le before they are implemented or enforced, but in no case later 
than 90 days after they are implemented or enforced.  In its response, China stated:  So far 
institutional arrangement has been put place for the translation of English versions of trade -relate d 
laws, regulations and departmental rules. China will make constant endeavor to press ahead with 
this work.  
a. The United States is encouraged by China's  establishment of an institutional arrangement  . .  . 
for the translation of English versions of trade -related laws, regulations and departmental rules. 
Can China describe this institutional arrangement in more detail?  
b. Did China issue a measure establishing this institutional arrangement?  Is the measure public?  
c. When does China anticipate that this institutio nal arrangement will begin routinely translating 
trade -related laws, regulations and departmental rules?  Has China set a target date?  
Reply to Questions a -c:  
1) The Legal Affairs Working Committee under the National People's  Congress publishes, 
on a regul ar 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  
Governing For eign-related Matters. On 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 
translati ng the regulations 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 
Legisl ative Affairs Office of the State Council.  
3) On March 23 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 translati on 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.  
2.3 Participation in the World Trade Organization  
8. In a question addressing page 36, paragraph 2.19, of the Secretariat 's report, the United States 
asked when it will China notify previously implemented changes and updates to laws and 
regulations on new import  inspection requirements and food safety.  China replied that [t]he rules 
of AQSIQ on new import inspection requirements and food safety have all been notified to the 
WTO.  The United States notes that, to date, China has not submitted to the WTO SPS Committ ee 
AQSIQs decision of 26 April 2016, provided to the U.S. Embassy in Beijing, requiring that all foods, 
regardless of risk, be accompanied by an official import certificate.  In the case of this AQSIQ 
measure, China's  implementation appears to be more restr ictive than necessary to provide an 
appropriate level of food safety protection.  WT/TPR/M/3 42/Add.1  
 
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  a. When will China notify AQSIQs 26 April 2016 implementing measure?   
Reply: China will revise and perfect the implementing measure on the basis of soliciting 
and summarizing  the opinions of all relevant parties, and then perform the notification  
procedures . 
b. China typically does not notify implementing measures like AQSIQs 26 April 2016 implementing 
measure absent strong encouragement from a trading partner.  Will China consider ro utinely 
notifying this type of implementing measure?   
Reply: According to the WTO rules, China will notify any measures that influence trade.   
3.1.4 Tariffs  
9. In a question addressing page 52, paragraph 3.18, of the Secretariat 's report, the United States 
asked about the quantities under the cotton tariff -rate quota (TRQ) that are restricted to 
processing use (i.e., the downstream product is required to be exported) have not changed.  In its 
response, China stated that the quantities and allocation way of the cotton TRQ has remained 
unchanged up to now . Could China specify what the allocation of the TRQ is that is restricted to 
processing?  
Reply: The quantities and allocation way of the cotton tariff -rate quota  have never 
changed. The allocation of tariff -rate quota  (including the TRQs for processing use) is 
subject to one same method, namely the Interim Measures on the Administration of 
Tariff Rate Quota of Imported Agricultural Products . 
3.1.7 Anti -dumping, countervailing, and safeguard measures  
10. In a question addressing page 58, paragraph 3.37, of the Secretariat 's report, the United 
States asked China to identify the rules governing when and how MOFCOM conducts sampling in 
an antidumping investigation.  The United States noted that China had issued Provisional Rules on 
Sampling in Antidumping Investigations in 2002 and specifically asked that China indicate if 
MOFCOM had issued or implemented any other relevant rules governing sampling since 2002.  In 
its response, China stated:  Up to now, China has not revised o r issued new rules on sampling in 
investigation.  Could China identify the rules currently governing when and how MOFCOM conducts 
sampling in an investigation?  
Reply: The Provisional Rules on Sampling in Anti -dumping Investigations  promulgated in 
2002 is st ill in effect. When needed in a case, the investigational agencies of China shall 
conduct sampling in accordance with the Provisional Rules . After the case is approved to 
be investigated, the stakeholders may register at the Chinese investigational agency 
within 20 days in order to participate in the investigation. If the Chinese investigational 
agency finds that there are too many parties registered, which may hamper the smooth 
proceeding of the investigation, it shall sample several parties from those reg istered, 
and set a tax rate for them specifically. The other parties shall be subject to a weighted 
average tax rate.  
3.1.8 Standards and other technical requirements  
11. In a question addressing page 67, paragraph 3.80, of the Secretariat 's report, the Unite d 
States asked China when it plans to notify the Official Certificate Requirement for Imported Foods 
and all of the other implementing measures for the Food Safety Law and afford Members the 
opportunity to provide comments?  In its response, China stated on ly that it will notify relevant 
measures as required by the WTO rules.  Could China indicate when it will notify the Official 
Certificate Requirement for Imported Foods and all of the other implementing measures for the 
Food Safety Law and afford Members th e opportunity to provide comments?  
Reply: The AQSIQ notified foreign embassies to China on April 25th 2016, requesting that 
countries having trade relations with China shall produce official certificates for the food 
products they export to China, to certi fy that the products conform to China's  national 
food safety standards. This note is a pre -notification in the hope of fully communicating WT/TPR/M/3 42/Add.1  
 
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  and consulting with other countries. After listening to the opnions of various countries, 
China will notify the impro ved measures and requirements to the WTO, and leaving a 
sufficient transitional period before implementation. China suggested an 18 -month 
transitional period in the official note, which means before October 1st 2017, food import 
will not be influenced by t his measure.   
12. In a question addressing page 69, paragraph 3.84, of the Secretariat 's report, the United 
States asked China to clarify why it does not recognize a regionalization approach to HPAI when 
regionalization is in accordance with the principles and  risk analysis of an international 
organization, the World Organization for Animal Health (OIE).  In its response, China stated:  China 
has a poultry industry of large scale. The security of poultry concerns national economy, people's 
livelihood and social s tability. Chinese people, poultry industry and the government are highly 
sensitive and attach great importance to HPAI. China applies the strictest control measures over 
HPAI. OIE encourages regionalized management of animal epidemic diseases, but has not 
formulated standard for regionalized assessment of HPAI.  
a. The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) 
encourages WTO Members to base their sanitary measures on international standards, guidelines 
and recommendatio ns, where they exist. Members may choose to adopt a higher level of 
protection than that provided by international texts if there is a scientific justification or if the level 
of protection provided by the relevant international texts is considered to be i nappropriate.  In such 
circumstances, Members are subject to obligations relating to risk assessment and to a consistent 
approach of risk management.  The OIE clearly states recommendations for establishing a zone for 
international trade purposes in Article 5.3.7 of the Terrestrial Animal Health Code.  Has China 
prepared a risk assessment that warrants adoption of a higher level of protection than the OIE 
deems necessary in Article 5.3.7 of the Terrestrial Animal Health Code?  If so, can China make this 
risk as sessment available?   
Reply: China is a big poultry farming  country. The development of  poultry farming 
industry concerns national economy, people's livelihood and social stability. Therefore 
the Chinese people, poultry industry and the government attach gr eat importance to 
high pathogenic avian influenza (H PAI). Given the great danger and sensitivity of HAPI, 
particularly its significance to public health, it is ranked among the First Level Animal 
Pandemics on the list of imported animal diseases inspection  and quarantine according 
to China's  laws and regulations, and needs to be controlled with the strictest measures. 
To avoid the entry of such pandemics, and safeguard the safety of China's  poultry 
industry, China cannot yet establish zones or implement reg ionalized management with 
regards to those countries where HAPI take place. However, with regards to low 
pathogenic avian influenza (LAPI), China can adopt the practice of zones in management 
on the basis of scientific risk evaluations. If the American sid e realizes an effective 
control over the pandemic, it can provide the Chinese side with concrete information, 
and the Chinese side will kick off the pre -assessment of regionalized management.  
b. As stated in Article 5.3.7 of the Terrestrial Animal Health Code , the importing country (i.e., 
China) determines whether it accepts an area as a zone for the importation of animals and animal 
products, taking into account (i) an evaluation of the exporting country's Veterinary Services; 
(ii) the result of a risk assess ment based on the information provided by the exporting country and 
its own research; (iii) its own animal health situation with respect to the disease(s) concerned; and 
(iv) other relevant OIE standards.  The code further states that the importing country shall notify 
the exporting country of its determination and the underlying reasons for recognition of the zone.  
The United States has repeatedly requested China visit the United States to evaluate U.S. Avian 
Influenza Surveillance Programs and again invite s China to evaluate USDAs Animal and Plant 
Health Inspection Services surveillance programs.  Please clarify the underlying reasons for not 
engaging the United States on regionalization.  
Reply: Since the H5 subtype of HAPI broke out in the U.S. in December 2014, several 
other cases of LAPI subject to notification broke out successively in different regions of 
the U.S. with the latest case taking place on July 6th. This means the U.S. side has not 
yet met the condition of 3 months of confirmed epidemic -free s tate, as regulated by the 
OIE code, and thus does not qualify for pre -assessment of lifting the pandemic -incurred 
ban. After the bird influenza pandemic gets effectively controlled, monitored and WT/TPR/M/3 42/Add.1  
 
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  measured in accordance with the OIE code, the Chinese side m ay start the pre -
assessment of lifting the pandemic -incurred ban.  
13. In several questions addressing page 71, paragraphs 3.89 and 3.90, of the Secretariat 's 
report, the United States sought to learn more about the new Food Safety Law . One U.S. question 
asked China to explain how consumer safety is enhanced by the new registration system.  In its 
response, China asked the United States to clarify what the new registration system refers to.  The 
United States clarifies that, by new registration system, it is r eferring to (1) Decree 145 facility 
registration, (2) the new product registration requirements under the Food Safety Law and 
(3) product and facility registration of feed products under Decree 118 . 
a. How does facility registration under Decree 145 enhance c onsumer safety when the 
production facilities in question in the United States, for example, are already under the 
purview of domestic competent authorities?  U.S. facilities must meet relevant domestic 
regulations and are subject to audit and inspection by  U.S. competent authorities.  Has 
China experienced any safety issues with regard to U.S. exports for the products covered 
by Decree 145 that would warrant facility registration measures?   
Reply: In line with the requirements of the WTO SPS Agreement, the i mporting member 
has the rights to come up with such measures as examining the products of the 
exporting country in order to ensure the safety of imported food. The registration of 
overseas manufacturers of imported food is a regulatory measure in line with  the WTO 
rules. China notified to the WTO the Administrative Measures for Registration of 
Overseas Manufacturers of Imported Food  (AQSIQ Decree No. 145) when the 
Administrative Measures  was revised in 2012, and has already responded to the review 
opinions of members. The port regulatory agencies for import  inspection and quarantine 
did experience some problems with regard to meat, diary products, and aquatic products 
exported by the U.S. to China, as samplings of these products did not meet Chinese laws 
and regulations, standards and requirements in connection with food safety.  
b. Decree 145 requires competent authorities to certify compliance with Chinese 
regulations.  The United States notes that it is the duty of exporters to ensure that their 
products meet t he requirements of the importing country, and it is the responsibility of 
the importing country 's competent authorities to ensure that imports meet their own 
regulatory requirements. Why does Decree 145 require foreign competent authorities 
to certify comp liance with Chinese regulations?  
Reply: Decree 145 requires that enterprises applying for registration in China need to be 
approved and be under the effective regulation of the competent authorities of the 
exporting country, and their sanitary conditions m ust conform to the clauses of related 
laws and regulations, and meet the standards of China. Under this requirement, the 
exporting countrys competent authorities need to certify the enterprises that they have 
approved and have been regulating and that they  recommend to register in China 
comply with Chinese laws and regulatory requirements. China notified to the WTO the 
Administrative Measures for Registration of Overseas Manufacturers of Imported Food  
(AQSIQ Decree No. 145) when the Administrative Measures  was revised in 2012, and 
has already responded to the review opinions of members.  
c. Is it correct that all food product facilities will eventually need to be registered pursuant 
to Decree 145?  If so, what is the timeline for this expansion to all products?  We 
understand that China is aiming to have it completed by 2020, but how will the 
requirements be implemented, and what is the scope of products specifically  
Reply: According to the  Food Safety Law  of the People's Republic of China , the scope of 
registratio n under Decree 145  covers all food types included by the Food Safety Law . In 
the practice of implementation, the registration will be forged ahead in a gradual way 
according to the AQSIQ s Public Notice about updating the Catalogue of Registration of 
Foreig n Manufacturers of Imported Foods  (AQSIQ  [2015] No.  152).  
d. If all food production facilities need to be registered pursuant to Decree 145, then why is 
China requiring all imported processed food products to be accompanied by a safety WT/TPR/M/3 42/Add.1  
 
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  certificate under the F ood Safety Law?  This requirement appears to be duplicative, and 
there appears to be no science -based reason for packaged, shelf -stable processed 
products to be accompanied by a safety certificate.  Please provide the justification for 
these measures, and ex plain how they enhance consumer safety.  
Reply: To enhance the regulation of imported food from its very origin, accelerate the 
course of international joint regulation over imported food, and ensure food safety, the 
AQSIQ delivered A Letter of Requiring Im ported Food to Be Attached with Official 
Certificates (Zhi Jian Shi Wai Han [2016] No. 327) to the embassies of countries having 
food trade relations with China, requesting the countries concerned to produce official 
certificates to the food they export to  China in order to prove that the food concerned 
meet China's  national standards about food safety. The letter clearly stated that the 
transitional period will last until October 1st, 2017.  
By now, the U.S. has come up with disagreements on this measure, b elieving there is no 
need for low -risk products to be attached with official certificates; and the diplomatic 
commission of the EU in China has sent a letter to AQSIQ, hoping that exemption could 
be given to pre -packaged food. Later on, the EU diplomatic c ommission communicated 
with China's  State Food and Drug Administration (SFDA), and suggested to organize a 
China -EU seminar in this regard with the EU as the organizing party, which was carried 
out recently.  
Besides, countries such as Mauritius and Peru ha ve already sent their sample certificates 
to China. Countries including Canada and New Zealand also expressed their willingness 
to cooperate actively with the Chinese side on the implementation of this measure to 
ensure the safety of food export to China.  
e. Thus far, the United States is aware of two examples of implementing regulations under 
the Food Safety Law in which the products being imported need to be registered or 
certified and the requirements present a barrier to trade, i.e., processed food product s 
and infant formula.  With regard to infant formula, according to Decree 26, companies 
may not register more than three formula recipes for each stage, i.e., infant (0 -6 months 
of age), older infant (6 -12 months of age) and young children (12 -36 months of age). 
Our understanding of Decree 26 is that a producer could register no more than 
nine product recipes, and would need to prove the distinct differences of products under 
each stage. It is unclear why China seeks to limit the number of products that a si ngle 
company may register.  If the specific infant formulas are determined to be safe and 
effective, there appears to be no reason to place such a limit on infant formula 
producers. This requirement also appears to be an unnecessary barrier to trade and to 
serve no purpose in assuring the safety of the products.  Please explain the justification 
for this requirement.  
Reply: China has always been paying great attention to the quality and safety of infant 
formula, which ranks as the most strictly regulated food  in China. To make sure that 
infant formula can provide adequate, appropriate and safe nutrition to the growth of 
infants, and in light of the existing problems in the market of infant milk formula, 
namely: too many different formulas exist; inadequate res earch and evaluation in the 
process of formula designing; inadequate scientific evidences available to support the 
differentiation of formulas; consumers feeling at lost when choosing among different 
brands and different formulas; formulas altering too oft en in the course of production 
thus bringing potential quality and safety problems, etc., the competent authorities 
researched and drafted the Registration And Administration Measures for Infant 
Formula Powder , urging enterprises to improve their abilities  in R&D, production and 
testing so as to develop infant formula products in a scientific way and restrain from 
exaggeration in publicity or misguidance towards the consumers.  
The market of infant formula in China is somewhat different from foreign markets . One 
the one hand, there is great demand in China and the industry is developing rapidly. On 
the other, there exist nonstandard brands and formulas in the market, thus rectification 
is needed for the industry to develop in a sound way.  WT/TPR/M/3 42/Add.1  
 
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  Theoretically,  infants should better be breast fed whenever and wherever possible, and 
infant formula can only serve as a supplement when breast feeding is improbable or 
inadequate. For this reason, the designing concept for infant formula is to imitate breast 
milk, and ther e should not be too many different formulas. The State Food and Drug 
Administration (SFDA)  exercises strict administration over the registration of formulas, 
and advocates that the R&D of formula s should be based upon scientific evidence 
related to human h ealth. These are all consistent with China's  national conditions and in 
agreement with the formula making principles.  
f. There are on -site inspection requirements in Decree 26 and in Decree 145 for infant 
formula.  These requirements appear to be duplicative.  Please explain how these 
requirements differ and how it enhances consumer safety . 
Reply: Manufacturers of infant formula are to be reviewed each and every year after 
registration. To ensure the quality and safety of imported infant formula, inspection is 
conducted for each and every batch, which is not duplicative to the registration 
requirement.  
g. Decree 118 appears to provide another example of a product and facility registration 
requirement that is presenting a trade barrier for animal feed.  China's  AQSIQ has divided 
feed products into different categories  some categories of feed products are being 
exported with few problems, while others, notably feed additives and compound feed, are 
being unnecessarily restricted because of unworkable registration require ments.  These 
requirements include safety assessments that must be conducted for new feed products 
by two agencies: AQSIQ and the Ministry of Agriculture.  The United States has estimated 
that these reviews will take 4 to 5 years to complete given the fact t hat approximately 
30 applications for new feed products have been submitted to AQSIQ, and no 
assessments have been started to date.  Has China experienced any safety issues with 
regard to U.S. exports for the products covered by Decree 118 that would warran t 
product and facility registration measures?  Please explain how this registration system for 
animal feed enhances consumer safety.  
Reply: In line with the concept of risk management, Decree 118 stipulates registration 
of overseas enterprises producing or  processing animal feed. The purpose is to ensure 
that the manufacturers meet the regulatory requirements and standards of both the 
exporting country and China, thus guaranteeing the safety and healthiness of imported 
feed. In recent years, China detected unpermitted Genetically Modified Ingredients in 
the 500,000 tons of animal feed corn wine dregs, and found Dioxin for many times in the 
feed additives, fish meal and brine shrimp flakes that the U.S. exported to China. The 
occurrence of these problems full y testifies the necessity for the registration of 
manufacturers.  
3.2.5 Export finance, insurance and guarantees  
14. In questions addressing page 77, paragraph 3.112, and page 78, paragraphs 3.115 -3.116, of 
the Secretariat 's report, the United States asked about export financing.  In its responses, China 
stated:  SINOSURE supports China's  enterprises in export of agricultural products through 
providing short -term export credits insurance, but it is of commercial nature and conducted by 
SINOSURE based on market  condition, not an officially supported export credits for agriculture.  
China also stated:  All the above business items of export credit insurance are commercial activities 
conducted by SINOSURE under market conditions without financial support from the go vernment.  
The United States does not understand China's  responses with respect to SINOSURE.  The 
Secretariat 's report notes that SINOSURE is China's  official export credit agency.  Furthermore, the 
Ministerial Decision on Export Competition does not use the terms commercial nature and market 
conditions.  In other words, the Ministerial Decision on Export Competition does not exclude 
programs that a Member believes are of a commercial nature or are operated on market 
conditions.  
a. Could China explain what it mean s by the terms commercial nature and market conditions?   WT/TPR/M/3 42/Add.1  
 
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  Reply: The terms commercial nature and market conditions refer to the fact that the 
products concerned are independently designed by SINOSURE, and that the credits 
insurance company calibers its rate s as well as other conditions according to the supply 
and demand, and commercial competition on the market.  
b. Could China explain why export credits, export credit guarantees and insurance programs 
operated by SINOSURE for agricultural products are not subje ct to the Ministerial Decision on 
Export Competition?  
Reply: the Chinese side did not state that the financial support provided by SINOSURE is 
not subject to the Ministerial Decision on Export Competition.  
3.3.1 Incentives  
15. In a question addressing pag e 80, paragraph 3.120, of the Secretariat 's report, the United 
States asked about investment subsidies and interest discounts provided under two measures, the 
Interim Measures for the Administration of Central Budget Investment Subsidy and Interest 
Discoun t Projects, issued by the National Development and Reform Commission, Order No. 31 
(8 June 2005), and the Interim Measures for the Administration of Central Budget Investment 
Subsidy and Interest Discount Projects, issued by the National Development and Re form 
Commission, Order No. 3 (15 June 2013).  In its response, China stated:  The SCM Agreement of 
WTO requires the notification of subsidies with specificity. Since the Measures is not specific in 
nature, it does  not need to be notified to the WTO according  to Article 25 of the SCM Agreement.  
However, the United States notes that the eligibility criteria for both measures indicate that, 
among other criteria, the investment subsidies and interest discounts are limited to under -
developed regions and the indust rialization of high and new technologies.  Given these limitations, 
both measures appear to be specific under Article 2 of the SCM Agreement.  When will China notify 
these measures?  
Reply:  The Interim Measures for the Administration of Central Budget Investm ent 
Subsidy and Interest Discount Projects  does not involve the allocation or utilization of 
specific funds. For specific subsidy programs, please refer to the official notification 
submitted by the Chinese government.  
16. In a question addressing page 80,  paragraph 3.121, of the Secretariat 's report, the United 
States noted that the Secretariat 's report for China's  2014 Trade Policy Review had included 
information that it had uncovered 30 support programs for China's  fisheries sector, and the United 
States  asked China when it will provide a full notification of its wild capture fisheries subsidies.  In 
its response, China stated that some of the programs already notified by China were still included 
in it, and it then proceeded to identify three subsidy prog rams.  The United States appreciates the 
notification of the three referenced subsidy programs.  However, it appears that China maintains 
dozens of other fisheries subsidies programs, many of which the Secretariat first uncovered more 
than two years ago.  Given the urgency of addressing fisheries subsidies, China's  existing WTO 
commitments and the commitments made by China for greater transparency in other fora, when 
will China notify the large number of remaining fisheries subsidies programs?  
Reply:  At presen t, China is reviewing fishery subsidy and will deliberate on the 
notification issue based on the review results and the working progress.  
17. In a question addressing page 80, paragraph 3.123, of the Secretariat 's report, the United 
States noted that, ove r the past two years, Chinese central and local governments have 
established and directed various industrial development funds, including for the integrated circuits 
industry.  The United States specifically identified China's  establishment of a National IC  
Investment Fund Co. Ltd. (IC Fund), pursuant to the State Council Notification Regarding National 
Integrated Circuits Industry Investment Fund Establishment Approval (Guo Han [2014] No. 48).  
The United States asked for clarification regarding the purposes  of the IC Fund and whether steps 
had been taken to ensure that the operation of the IC Fund does not harm semiconductor 
industries outside China, given the very large size of the IC Fund, which has been estimated to 
exceed US$21 billion.  In its response, China maintained that the IC Fund is a private equity fund 
with its business area of equity investment in integrated circuit industry.  The IC Funds operation is 
completely based on market principles. . . . The government does not intervene in the decision -WT/TPR/M/3 42/Add.1  
 
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  making of the [funds] board let alone give direction.  However, the United States notes that 
recently the IC Fund invested funds into the Wuhan XMC national memory base, with the total 
amount of funding reported to be $24 billion.  The United States further notes that p ublic 
statements made by IC Fund officials indicate that the investment into the XMC project was a 
strategic and not a market -based investment.  Can China explain how this investment was 
consistent with market principles?  
Reply: The National IC Investment Fund Co. Ltd. (referred to as the Fund hereinafter) is 
a private equity fund whose main business area is the IC equity investment. Just like 
other private equity funds in the world, the Funds major task is to gain profit for its 
shareholders, an d all its investment activities and statements are only accountable to 
the shareholders. Therefore, the strategic investment as mentioned by the staff of the 
Fund means that the Funds investment project in  Wuhan XMC national memory base  is 
made according t o the development strategy of the Fund, and is a long term strategic 
investment. This is in no conflict with the market -based operation mechanism of the 
Fund.  
18. In a question addressing page 83, paragraph 3.129, of the Secretariat 's report, the United 
States referenced two discriminatory tax measures challenged by the United States in DS501 and 
asked whether these two measures are the only discriminatory tax measures that China has failed 
to publish and whether there are other unpublished discriminatory t ax measures that China is 
currently enforcing.  In its response, China did not answer these questions and instead stated only 
that the two measures challenged by the United States in DS501 had been abolished.  Can China 
answer the United States questions?  
Reply: Since its entry into WTO, the Chinese government has always been strictly 
abiding by the WTO rules, hono uring its WTO commitments, seriously fulfilling member 
obligations, and endeavo uring to ensure that its taxation legislation complies with the 
WTO rules.  
3.3.3 National security review of concentration  
19. In a question addressing page 91, paragraph 3.163, of the Secretariat 's report, the United 
States asked about the national security review system for the financial sector applicable in Pilot 
Free T rade Zone s. In its response, China stated:  Currently, the security review system for foreign 
investment in the financial sector of Pilot Free Trade Zones is still being formulated.  Is foreign 
investment in the financial sector of Pilot Free Trade Zones bei ng held up until the security review 
system can be formulated?  Can foreign investment in the financial sector of Pilot Free Trade Zones 
proceed in the absence of a security review system?   
Reply: At present, foreign investment in the financial sector of Pi lot Free Trade Zones 
can be made in accordance with the rules of foreign investment access in the financial 
industry.  
3.3.5 State trading and state -owned enterprises  
20. In a question addressing page 94, paragraph 3.173, of the Secretariat 's report, the Un ited 
States referenced China's  TRQs for 2013 -2015 listed in Table 3.17 and asked China to provide the 
fill rates for each of these TRQs by state trading enterprises (STEs) and by private enterprises 
under initial allocations and also to indicate how much o f the initial TRQ reserved for entry through 
the STE is made available for reallocation in September for the years in question.  In its response, 
China stated only that, [s]ince its entry into the WTO, China has earnestly hono ured its 
commitment. The TRQs a re allocated and reallocated each year according to Interim Measures for 
the Administration of Import Tariff Quotas of Agricultural Products.  
c. Could China provide the fill rates for each of these TRQs by state trading enterprises and by 
private enterprises under initial allocations.   
d. Please also indicate how much of the initial TRQ reserved for entry through the STE is made 
available for reallocation in September for the years in question.  WT/TPR/M/3 42/Add.1  
 
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  Reply to Questions a -b: The competent authority releases information on a regular basis 
about the reallocation of TRQs and reallocate the unfulfilled TRQs returned by 
enterprises in accordance with the Interim Measures on the Administration of Tariff Rate 
Quota of Imported Agricultural Products . 
21. In a question addressing  page 94, paragraph 3.173, of the Secretariat 's report, the United 
States asked China to identify the eligible enterprises for wheat imports subject to the STE share 
of the TRQ.  In its response, China stated:  According to Annex 2A1 of Protocol on the Acces sion of 
the People's Republic of China , COFCO is a state trading enterprise that can import wheat.  Are 
there any other enterprises other than COFCO that are eligible to import wheat subject to the STE 
share of the TRQ?  If so, please identify them.  
Reply: A ccording to China's  WTO accession commitments, COFCO  is the only state 
trading enterprise that is qualified to  import wheat . 
22. In a question addressing page 97, paragraph 3.179, of the Secretariat 's report, the United 
States stated:  In the Explanation of  the 2016 Central State -Owned Capital Operating Budget, the 
following capital injection expenditures are listed:  RMB 20.3 billion in expenditure on state -owned 
economic restructuring, for use in supporting the development of the equipment manufacturing 
industry, industrial upgrading and development of central cultural enterprises, etc.; and 
RMB 10.0 billion in expenditure on the development of forward -thinking, strategic industries.  The 
United States then asked two questions:  In light of the goal of increas ed budget transparency 
noted on page 145 of the Secretariat 's report, what are the names of the state -owned enterprises 
that received these capital injections?  Will these capital injections be notified pursuant to the 
notification requirements of Article 2 5 of the Agreement on Subsidies and Countervailing 
Measures?  In its response, China stated that  the support measures for strategic emerging 
industries can be found in Program  No. 81 from its 2014 subsidies notification covering 2009 to 
2014.  However, the U nited States notes that its questions do not concern China's  strategic 
emerging industries program or the time period from 2009 to 2014.  Rather, its questions 
specifically concern expenditures under China's  2016 Central State -Owned Capital Operating 
Budget . Could China please answer the United States questions?  
Reply:  During the 8th round of China -U.S. economic dialogue, China and the U.S. reached 
an outcome concerning the state -owned capital operating budget, i.e. to include more 
SOEs into the implementat ion scope of state -owned capital operating budget; to make 
public the information related to state -owned capital operating budget including 
expenditures classified by areas of use according to the Budget Law  as well as 
regulations on making government info rmation public; China will establish an open and 
transparent state -owned capital operating budget system which covers all SOEs at the 
national, provincial and municipality levels. China will enhance the transparency of 
state -owned capital operating budget within the scope defined by China's  laws and 
regulations.  
3.3.6 Government procurement  
23. In a question addressing page 102, paragraph 3.204, of the Secretariat 's report, the United 
States asked China what steps it intends to take to reinvigorate its acc ession process to the WTO 
Agreement on Government Procurement (GPA).  China responded that, [s]ince December 2014 
when China submitted its 6th offer, it has actively conducted bilateral and multilateral negotiations 
with contracting parties, as well as eval uation and preparation for further improvement of offer.  
Given this ongoing work, does China intend to submit a revised offer in 2016?  If not, can China 
indicate when it will submit a revised offer?  
Reply:  The time for submit ting a revised offer  will depen d on the negotiations and on the 
preparation at home.  
3.3.7 Intellectual property rights 3.3.7  
24. In a question addressing pages 109 -110, paragraphs 3.237 and 3.238, of the Secretariat 's 
report, the United States asked for the Chinese Governments views regarding application of the 
principle of non -retroactivity to China's  implementation of the 2010 Interim Measures for Payment WT/TPR/M/3 42/Add.1  
 
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  of Remuneration by Radio and Television Stations for Broadcasting Sound Recordings.  In its 
response, China states that the Music Copyright Society of China has temporarily not touched upon 
broadcasting organizations paying of remuneration of broadcasting right of music works from 2001 
to 2009.  However, in all its agreements of paying remuneration signed with relevant broadcasting 
organizations, the Music Copyright Society of China declares that it reserves the right to be paid 
for use from 2001 to 2009.  We welcome this information regarding the views of the Music 
Copyright Society of China, but also seek the views of the Chinese gove rnment.  Specifically, we 
noted in the original U.S. question that, in connection with China's  2014 Trade Policy Review, 
China responded that the principle of non -retroactivity applies and these tariff rates are not 
applicable to cases prior to the 2010 mea sures entering into force.  Is that statement still the view 
of the Chinese Government?  In order for the Music Copyright Society of China to effectively 
attempt to seek payment for uses in 2001 -2009, it would seem that the Chinese government 
would have to s pecifically permit retroactive payments, which would seem to conflict with the 
response provided by the Chinese Government in connection with China's  2014 Trade Policy 
Review.  Could China clarify this situation?  
Reply: the Interim Measures for Payment of Remuneration by Radio and Television 
Stations for Broadcasting Sound Recordings  does not have retroactiv e power towards 
the remuneration by radio and television stations for broadcasting music pieces before 
2010, the year when the Measures was issued. The remuneration standards by the Music 
Copyright Society of China  with regard to the use of music piece by radio and television 
stations from 2001 to 2009  shall be based upon the free will and mutual consultations 
and agreements of the both parties concerned.  All these have nothing in conflict with 
the re plies  provided by China  in the context of it s Trade Policy Review  in 2014 . 
4.2.1 Financial services  
25. In a question addressing page 130, paragraph 4.53, of the Secretariat 's report, the United 
States asked about new People's  Bank of China (PBOC) regulations providing for the licensing of 
domestic and foreign suppliers of electronic payment services as bankcard clearing institutions in 
China.  With regard to references in the regulations to national security r eviews, China stated:  The 
national security reviews provided for by the Administrative Measures for Bankcard Clearing 
Institutions not only apply to the circumstances described in Article 26, which involve a foreign 
investors acquisition of a bankcard clea ring institution, but also apply to greenfield investments 
(including both domestically - and foreign -invested enterprises). All enterprises planning to apply 
for licenses of bankcard clearing institutions need undergo a comprehensive assessment in 
accordan ce with the National Security Law of the People's Republic of China, to decide whether a 
national security review is required . 
e. China's  response states that the national security reviews provided for by the new PBOC 
regulations apply to greenfield investmen ts by foreign enterprises applying for licenses as 
bankcard clearing institutions.  Which provision in the new PBOC regulations establishes this 
requirement?  Does a provision in some other measure instead establish this requirement?  
Reply: The American side  does not seem to have a comprehensive understanding of the 
content of the Bankcard Clearing Institutions Administration Measures  in connection 
with national security reviews. Article 13 of the Measures  stipulates that after 
evaluation, if national securit y reviews are deemed necessary by law, the PBOC shall 
officially accept the preparation applications of the applicant after the national security 
reviews are completed. This clause applies to any enterprises that apply for licenses of 
bankcard clearing ins titutions  (whether they are domestically funded or foreign funded). 
Article 26 of the Measures  sets forwards additional requirements for the acquisition of 
established bankcard clearing institutions by foreign investors. These two articles are 
mutually non -substitutable.  
f. On the one hand, China's  response states that the national security reviews provided for by the 
new PBOC regulations apply to greenfield investments by foreign enterprises applying for licenses 
as bankcard clearing institutions.  On the oth er hand, China's  response states that foreign 
enterprises undergo a comprehensive assessment in accordance with the National Security Law of 
the People's Republic of China to decide whether a national security review is required.  Does 
China's  response mean  that some greenfield investments by foreign enterprises will require a 
national security review and some greenfield investments by foreign enterprises will not require a WT/TPR/M/3 42/Add.1  
 
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  national security review?  If so, what are the standards for determining when a nation al security 
review will be required?  Which Chinese regulatory authority determines when a national security 
review will be required?  Which Chinese regulatory authority conducts any required national 
security review?  
Reply: With regard to applications for e stablishing new bankcard clearing institutions, 
the PBOC and other relevant departments and commissions will each provide a 
professional review opinion from the perspective of their own field of jurisdiction, and 
then based on that form a proposal, which w ill be submitted to the competent 
authorities of national security reviews for final decision.  
g. In response to a question from the United States regarding page 90, paragraph 3.160, of the 
Secretariat 's report, China stated that, [c]urrently, only the nation al security review system in the 
pilot free trade zones is applicable to greenfield investment.  China appears to have given a 
conflicting response in the context of bankcard clearing institutions, where it stated that national 
security reviews apply to gre enfield investments by foreign enterprises applying for licenses as 
bankcard clearing institutions.  Can China clarify which response is correct?  
Reply: The Bankcard Clearing Institutions Administration Measures were formally 
published in June 2016, and it stipulated national security reviews according to the 
National Security Law. According to existing laws and regulation, the national security 
review system in the pilot free trade zones is applicable to greenfield investment.   
h. In response to a question fro m the United States regarding page 43, paragraph 2.42, of the 
Secretariat 's report, China stated:  Not all foreign investment in China involves national security. 
Relevant regulations of China already clearly established the scope of security review of fore ign 
investment, which only covers few foreign investors and foreign investment matters.  The United 
States understands that national security reviews apply in the circumstances described in 
Article  26 of the new PBOC regulations, which involve a foreign inv estors acquisition of a domestic 
bankcard clearing institution.  However, China also stated that national security reviews apply to 
greenfield investments by foreign enterprises applying for licenses as bankcard clearing 
institutions, despite the fact that no provision in the new PBOC regulations or in any other 
measure provides that national security reviews apply to those investments.  Can China clarify the 
legal authority for requiring national security reviews for greenfield investments by foreign 
enterpr ises applying for licenses as bankcard clearing institutions?  
Reply: The American side has misunderstandings about the circumstances where 
national security reviews apply. Just as the replies to Questions a and b have mentioned, 
in the field of bankcard cl earing, the requirement of national security reviews apply to 
all enterprises that apply for licenses of bankcard clearing institutions  (whether they are 
domestic funded or foreign funded), and apply to the circumstance where a foreign 
investor intents to acquire a licensed bankcard clearing institution within the Chinese 
territory. The PBOC raises related requirements based on the National Security Law ; and 
for concrete requirements and rationale, please refer to Article 26 and 13 of the 
Measures . 
i. Has the national security review system for foreign enterprises applying for licenses as 
bankcard clearing institutions been formulated?  If not, when does China expect to formulate it?  
Reply: The PBOC, together with other relevant departments and commissions, has been 
drafting the national security review measures for foreign investments in the financial 
sector since 2015. At the moment, the measures are under discussion and revision. The 
national security review mechanism for new foreign -funded bankcard clearing 
institutions shall be implemented in accordance with the above measures.  
Part II: WT/TPR/G/342  
1. In a question addressing page 9, paragraph 2.31, of the Chinese Governments report, the 
United States referenced China's  agricultural modernization efforts and as ked China to explain how 
China's  policy prohibiting the review of foreign biotechnology applications until the products are 
approved in the country of origin or export is consistent with China's  objective to modernize when, WT/TPR/M/3 42/Add.1  
 
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  as a result of this policy, Chin ese farmers are deprived of needed new technology to combat pests 
and environmental stresses.  In its response, China stated that, according to Regulations on 
Administration of Agricultural Genetically Modified Organisms Safety, offshore companies who 
intend to export Agricultural Genetically Modified Organisms to China need to make sure the 
products are approved in the country origin of export before applying for safety review.  This 
institutional arrangement aims to prevent the technological risk of genetic al modification and make 
sure the safety of Genetically Modified products; it is not prohibitive regulation on transgene 
technology.  Can China explain how requiring the pre -approval of a biotechnology product in the 
country of export, which only serves to delay the adoption on new biotechnology products globally, 
will facilitate China's  own review and approval of the biotechnology product?  
Reply:  China's  policy towards genetic modification is as follows: first, making active 
efforts in research, being prude nt in promoting, conducting law -based management and 
ensuring safety. Second, based on the Regulations on Administration of Agricultural 
Genetically Modified Organisms Safety , companies outside the Chinese territory who 
intend to export agricultural geneti cally modified organisms to China need to make sure 
the products have been approved in the export ing country or region with the same 
usages and have been admitted into the market by the time of applying for safety 
review s. The aim of this requirement is to  ward off the technological risks of genetic 
modification, and ensure the safety of genetically modified products. Third, safety is the 
precondition for the application of genetic modification technology, and the guarantee 
for the sustainable development o f G.M. technology in the field of agriculture. The 
current measures adopted by China are in steps with China's  practices and capacity of 
risk management in genetically modified agricultural organisms.  
2. In a question addressing page 20, paragraph 3.31, of th e Chinese Governments report, the 
United States asked why China continues to limit foreign direct investment in the agricultural 
biotechnology sector, the grains sector and the agricultural processing sector if China is interested 
in encouraging foreign in vestment and modernization of its agriculture sector.  In its response, 
China stated: The 2015 revision to the Catalogue for the Guidance of Foreign Investment 
Industries encourages foreign enterprises to invest in numerous related areas of modern 
agricultu re. At the same time, out of consideration to guarantee food safety and preserve bio -
diversity, China retains restrictions on foreign investment in a few sectors.  How does China's  limit 
on foreign direct investment in the agricultural biotechnology sector,  a sector itself for which China 
is investing heavily, guarantee food safety and preservation of bio -diversity?  
Reply: The Catalogue for the Guidance of Foreign Investment Industries (revised in 
2015) restricts foreign investment in only a few industries o f agriculture, which are as 
follows: on the selection and cultivation of new varieties of crops and production of 
seeds, the Chinese party must be the controlling shareholder; investments in the 
research and development, breeding and planting of China's ra re and special varieties, 
as well as the production of relevant breeding materials (including quality genes in the 
planting industry, animal husbandry, and aquaculture) are prohibited, and likewise with 
the breeding of genetically modified crops, livestock  and poultry and aquatic fingerlings 
and production of genetically modified seeds. In other industries, foreign investments 
are welcomed. The above policies do not have direct link with safeguarding food safety 
or protecting biodiversity.  
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