RESTRICTED  
  
WT/TPR/G/375  
6 June 2018  
(18-3454) Page: 1/23 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
CHINA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by China  is 
attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on China . WT/TPR/G/375 • China  
 
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  Contents  
 
 
1  INTRODUCTION  ................................ ................................ ................................ ...........  3 
2  NEW ERA, NEW THOUGHT  AND NEW VISION  ................................ ...............................  3 
3  APPLYING A NEW DEVEL OPMENT VISION AND ES TABLISHING NEW 
INSTITUTIONS OF AN O PEN ECONOMY  ................................ ................................ ............  4 
3.1  Setting new mechanisms for sustainable trade development  ................................ ..............  4 
3.2  Creating  more attractive investment environment  ................................ ............................  5 
3.3  Supporting outbound direct investment cooperation for mutual benefits and win -win 
with host countries and regions  ................................ ................................ ............................  8 
3.4  Strengthening the protection of intellectual property rights  ................................ ................  8 
3.5  Building pilot free trade zones  according to high standard  ................................ .................  9 
3.6  Latest development of trade and investment  ................................ ................................ ...10 
4  ACHIEVING SHARED GRO WTH THROUGH DISCUSSION AND COLLA BORATION 
AND BUILDING AN OPEN  WORLD ECONOMY  ................................ ................................ .. 11 
4.1  Firmly supporting economic globalization and b uilding new platform for international 
cooperation  ................................ ................................ ................................ ....................... 11 
4.2  Firmly safeguarding the multilateral trading system and striving to contribute 
Chinese wisdom and strength  ................................ ................................ .............................. 12 
4.3  Participating actively in global economic governance and opposing protectionism  ................ 15 
4.4  Steadily pushing forward construction of free trade areas (FTAs) and promoting 
trade and investment liberalization and fa cilitation  ................................ ................................ .15 
4.5  Upholding justice while pursuing shared interests  and enhancing constantly South -
South cooperation  ................................ ................................ ................................ .............. 16 
5  DEEPENING THE REFORM  COMPREHENSIVELY, UPH OLDING RULE OF LAW 
AND DEVELOPING A MOD ERNIZED ECONOMY  ................................ ................................  16 
5.1  Furthering supply -side structural reform and strengthening innovation capacity of 
the economy  ................................ ................................ ................................ ..................... 17 
5.2  Implementing coordinated regional development strategy, rural vitalization strategy 
and carrying out targeted poverty alleviation  ................................ ................................ ......... 17 
5.3  Advancing modernization of the system and capacity for governance  ................................ .18 
5.4  New development of China's Economy  ................................ ................................ ........... 21 
6  THE WAY FORWARD  ................................ ................................ ................................ ... 22 
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  1  INTRODUCTION  
1.1.  With decades of hard work, o n the 40th anniversary of China 's adoption of the reform and 
opening up  policy , China has reached a new historic juncture in its development, and socialism 
with Chinese characteristics has entered  a new era. Following the guidance of Xi Jinping Thought 
on Socialism with Chinese Characteristics for a New Era, China  will remain commit ted to the new 
vision of development and building a new system  of an open economy, continue to push forward 
liberalization and facilitation of trade and investment, and make new ground in pursuing opening 
up on all fronts.  
1.2.  China  will follow the principle o f achieving shared growth through discussion and 
collaboration, work together with all parties to press ahead with the Belt and Road Initiative, and 
strive to make the initiative a broad platform for international cooperation keeping up with the 
historical  tide of economic globalization. China will actively participate in global economic 
governance, firmly safeguard the multilateral trading system and oppose unilateralism and 
protectionism, promote further the construction of free trade area s (FTAs), and  continuously 
enhance South -South Cooperation . China will spare no efforts in making economic  globalization 
more open, inclusive, and balanced so that its benefits are shared by all.  
1.3.  China will continue  to comprehensive ly deepen reform, advanc e law-based governance in 
every dimension, and keep promoting the modernization of China 's governance system and 
capacity. China will pursue supply -side structural reform as its main task , implement the 
innovation -driven development strategy, and work hard for better quality, higher efficiency, and 
more robust drivers of economic growth. While accelerating efforts to improve the socialist market 
economy, China will improve  further  the Chinese socialist system of laws, at the heart of which is 
China 's Constit ution, and build a socialist country based on the rule of law.  
2  NEW ERA, NEW THOUGHT  AND NEW VISION  
2.1.  In 1978, China made the historic decision of reform and  opening up , and soon afterwards 
embarked on the great historic journey of building socialism with Chi nese characteristics. The year 
2018 marks the 40th anniversary of China's adoption of the reform and opening up  policy . With 
decades of tireless efforts, in particular the hard work in the 40 years of reform and opening up, 
socialism with Chinese character istics has crossed the threshold into a  new era. The 19th National 
Congress of the Communist Party of China established  the guiding status of the Xi Jinping Thought 
on Socialism with Chinese Characteristics for a New Era , by which China will be guided to s ecure a 
decisive victory in building a moderately prosperous society in all respects and embark on a new 
journey to fully build a modern socialist country.  
2.2.  While socialism with Chinese characteristics has entered a new era, the basic dimension of 
the Chine se context  - that China is still and will long remain in the primary stage of socialism  - has 
not changed , and China 's international status as the largest developing country in the world has 
not changed. However, the principal contradiction facing Chinese society , which had been between 
the growing material and cultur al needs of the people  and the backward social production , has 
evolved to be the contradiction between unbalanced and inadequate development and the people 's 
ever-growing  needs for a better life.  
2.3.  China 's economic development has been transitioning from a phase of rapid growth to a 
stage of high -quality development. It is a pivotal stage for transforming growth model, improving 
economic structure, and fostering new drivers of growth. Develop ing a modernized economy is an 
urgent requirement for getting China smoothly through this critical transition. China  will adhere to 
its overall policy keynote of making progress while maintaining stability , pursue with firmness of 
purpose  the new vision of innovative, coordinated, green and open development that is for 
everyone , regard supply -side structural reform as its main task , and push ahead in a coordinated 
way all the work of stabilizing growth, promoting reform, adjusting structur e, benefiting the 
people 's livelihood and preventing risks.  
2.4.  China will remain committed to deepening reform  comprehensively  and accelerating  efforts  to 
improve the socialist market economy. The core issue of further deepening reform is to properly 
handle t he relationship between the government and the market , so that  the market play s the 
decisive role  in resource allocation , and the government play s its role better. China will stay WT/TPR/G/375 • China  
 
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  committed to advancing law-based governance, improve the Constitution -centre d Chinese socialist 
system of laws, and promote  sound law -making, strict law enforcement, impartial administration 
of justice, and the observance of law by everyone. Reform of the government administration 
system and the judicial system  will be advanced , and systems for applying checks and oversight 
over the exercise of power  will be further improved . 
2.5.  China  will make all the efforts  to build a new system  of open economy and mak e new ground 
in pursuing opening up on all fronts. Opening up has been indispensable to China 's economic 
growth . In the same vein, high -quality development of China's economy in the future can only be 
achieved with ever greater openness. China will continue to adhere to the fundamental national 
policy of opening up, pursue development with the strategy of opening up for win -win results, and 
develop its open economy aiming at  higher standards . China hopes that  its development outcomes 
benefit all countries and regions.  
2.6.  China  will stick to  the path of peaceful developme nt and strive to forge a new type of 
international relations featuring mutual respect, fairness, justice, and win -win cooperation. China 
will continue to take an active part in the global economic governance  systems , work to promote  
an open world economy a nd the building of a community with a shared future for mankind. China 
will firmly support the multilateral trading system, unswervingly advance  economic globalization  
and trade and investment liberalization and facilitation, further  the construction  of free trade 
areas . China  will take a clear -cut stand in opposing unilateralism and protectionism. Guided by the 
principle of upholding justice while pursuing shared interests , and the principle of sincerity, 
honesty, affinity, and good faith , China will  continue to strengthen  cooperation with other 
developing countries.  
3  APPLYING A NEW DEVEL OPMENT VISION AND ES TABLISHING NEW INSTI TUTIONS OF 
AN OPEN ECONOMY  
3.1.  Based on the new vision of development, China  is engaging itself in the development of an 
open economy in a wider range and more areas, at deeper level and higher standards , and 
expedit ing the transition  from opening up itself to promoting the opening up of the world. Back in 
2015, China released  guidelines  on establishi ng new institutions  of an open econom y. The overall 
objective is to put in place  new mechanism s for market allocation  of resources , develop new 
administration models for economic operation, create  a new layout of all -round openness and 
forge new advantages in terms of international competitio n and cooperation.  
3.1  Setting new mechanisms for sustainable trade development  
3.2.  In recent years, the underlying  impact of the international financial crisis persists , and  the 
international environment  and domestic circumstances  have undergone complicated and profound 
changes. Against this background,  development of China 's trade is facing tremendous  difficulties 
and challenges. China  has been actively promoting the optimization of  the international market 
layout and domestic regional distribution,  as well as t hat of commodity structure, business entities 
and modes of trade.  New forms of business and trade models are explored.  Innovative 
development s of processing trade  are transferred  among regions in gradient . Proactive and 
effective import policies  are implem ented . These e fforts  have resulted in  remarkable  outcomes in 
the development of China 's trade , with the  structure further improv ed, and the shift of driving 
forces  accelerated . It is now brought back to stability and turns for better , which  not only provid es 
countries and regions around the world with broader markets and more opportunities for 
cooperation , but also makes contributions  to global trade growth and economic recovery.  
3.1.1   Implementing more proactive import polic ies 
3.3.  Since the last review, China has further simplified import administration procedures and 
lowered import tariffs. By November 2017, interim tariff rates had been applied on 152 tariff lines 
of consumer goods with an average decrease  of 50%  from the MFN rates , involvi ng a yearly 
import value of $10.9 billion. From 1 December 2017  on, China has further lowere d import tariffs 
on 187  tariff lines of  consumer goods  at HS 8 -digit level. The tariff rates dropped from  17.3% to 
7.7%  on average , covering  food and supplements , drugs, chemical products for daily use, clothing  
and footwear, hats and caps, household appliances, cultural and recreational goods and etc. This 
was China 's fourth slash of import tariffs  within three years , and the tariff lines involved WT/TPR/G/375 • China  
 
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  outnumbered the to tal of the previous three times.  In 2017, China 's import s propell ed the global 
import s to grow by nearly 2 percentage points , contribut ing more than 15% of global import s 
increase. Its portion  in global import s reached  11.1%, touching a record high.  
3.1.2   Continuously enhanc ing trade facilitation  
3.4.  On 22 February 2017, WTO Trade Facilitation Agreement  came into force . China has been 
preparing for  the implementation of the Agreement actively . As early as in March 2016, an Inter-
Ministerial Joint Co mmittee on  Trade Facilitation chaired by a Vice Premier of the State Council was 
established  to promote trade facilitation  through enhanced  and productive collaboration among 
relevant  government agencies . By the end of 2017, all provinces , autonomous regions and 
munic ipalities  directly  under  the Central  Government  had set up provincial -level joint committees  
on trade facilitation  to push ahead  trade facilitation work in the respective localit ies. 
3.5.  China  implements  the obligations under the Agreement  seriously . China retains only four 
Category B measures  and its C ategory  A measures account s for 94.6%. China will honour its 
promise to implement  all Category B measures within  the 3-year transition period.  
3.6.  On 1 July 2017, the integrated Customs clearance reform was rolled out nationwide . National 
centers for Customs  risk prevention  and control and for tariff collection and administration were 
established , and Customs clearance operations began to follow "one-time declaration and phased 
processing " approach. Meanwhile, construction of  Single Window for international trade has been 
further pushed ahead . Single Window  in a standard format is now implemented in all ports of entry 
in China . To further increase transparency, all Customs in China have introduced the version1.1 
online integrated platform for businesses. T he nationwide average import clearance time in 2017 
was 15.87 hours, a  36.85% decrease compared with 2016 , and the average export clearance time 
was 1.11 hours, a 38.24% drop from the previous year . 
3.7.  In addition, China has also taken a series of substantial measures  in foreign exchange 
administration to facil itate trade and investment . Pilot programs were carried out to facilitate 
foreign exchange payments concerning cross -border E -commerce or via third -party payment 
agencies. Supporting policies and measures were developed for the Bond Connect , i.e. 
cross-border bonds transactions and settlement. Prudent  macro administration policies for 
cross-border financing  were further improved. Reform of external debts administration through 
filing for record was pushed forward steadily to meet corporate fina ncing needs. Foreign exchange 
market was also further opened to allow foreign investors in the interbank bond market to 
participate in  foreign  exchange derivatives  transactions in China.   
3.1.3   Developing new modes of trade and business models  
3.8.  China  has been working hard in replacing driving forces  and adjust ing structures, and has 
undertak en and expanded  pilots on cross -border e -commerce and market purchase trade mode. 
13 pilot zones on cross-border e -commerce in Hangzhou and other cities  were promoted . Policy 
framework  conducive to the development of cross -border e -commerce  is taking shape .  
3.1.4   Promoting the innovative development of processing trade  
3.9.  In January 2016, China issued guidelines  concerning  optimizing development environment 
and promoting innovative development of pr ocessing trade . In May of the same year, it was 
further proposed that movement  of processing trade to the central and western regions  of China 
be supported , and examination  and approval  procedures for engaging in processing trade  be 
cancelled nationwide an d replaced w ith effective operational and post -operational supervision and 
regulation mechanism.  
3.2  Creating  more attractive investment environment  
3.10.   Active utilization of foreign investment has always been an important part of China's 
fundamental national pol icy of opening up to the outside world. In 2017, the State Council 
released two Circulars in this respect, on measures to further open up to foreign investment and to 
promote f oreign investment growth respectively , in a bid to perfect investment environment 
through enhancing facilitation , sharing international experiences and re -stressing rule of law, WT/TPR/G/375 • China  
 
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  promote domestic and foreign enterprises to compete on an equal footing, and improve both 
investment  quality and quantity.  
3.2.1   Improv ing the filing administration of foreign -invested enterprises  establishment 
and change  
3.11.   In September 2016, the 22nd Session of the Standing Committee of the 12th National 
People 's Congress adopted the Decision to revise four investment -related laws includin g the Law 
on Foreign -Invested Enterprises (FIEs). According to the Decision, for those foreign -invested 
enterprises not subject to foreign investment access administration,  their establishment and 
change would be administered only through filing for record  and no longer need to be examined 
and approved.  This was a significant change brought to the case-by-case examination and 
approval  system for FIEs,  which had been in place  for over 30 years.  In October 2016, the Ministry 
of Commerce (MOFCOM) released  detailed administrative m easures for implementation, and it was 
later amended in July 2017 . In the administrative measures, it was further clarified that the filing 
administration applies also to mergers and acquisitions of non -FIEs and strategic investments i n 
listed companies in China in sectors not subject to investment access admin istrati on and involving 
no related party transactions. Presently more than 96% of the establishment and change of FIEs 
are processed  through filing  for record . 
3.2.2   Improving  the approval administration and filing administration of investment 
projects  
3.12.   In December 2016 , China  revised the Catalogue of investment projects subject to 
government verification  and approval , involving totally 17 items. Among the 17 items, two were 
replaced  with administration through filing for record, and 15 were delegated to be verified and 
approved by local governments. This was the third revision of the Catalogue after two previous 
revisions in 2013 and 2014.  As a result of the three  revisions, the tota l number of project s subject 
to verification and approval by the central government  has been considerably reduced by 90%.  
After this revision, in terms of foreign investment, apart from sectors that are prohibited for 
foreign invest ment and sectors where t he same verification and approval administration for access 
is applied for both domestic and foreign investment projects , scope of foreign  invest ment projects 
subject to verification and approval administration is  as follows . Projects listed in the restricted 
category in Catalogue for the Guidance of Foreign Investment Industries  with a total investment of 
US$300 million and above shall be verified and approved at the central government level, in which 
those  with a total invest ment of US$2 billion and above shall be filed with the State Council.  
Projects listed in the restricted category in Catalogue for the Guidance of Foreign Investment 
Industries  with a total investment of less than US$300 million shall be verified and approv ed at the 
provincial government level. Other  foreign  invest ment projects are subject to administration 
through filing for record . In February and April 2017, regulation and implementing measures 
concerning both approval administration and filing administra tion for investment projects of 
enterprises were implemented.  
3.2.3   Further opening up the manufacturing and service s sectors   
3.13.   In Ju ne 2017, China released the lastly revised  Catalogue for the Guidance of Foreign 
Investment Industries (2017  Catalogue ). In this r evision, sectors  previously in the encouraged 
category but with equity ratio capping and sectors in the restricted and prohibited categories  were 
consolidated  into the negative list for market access of foreign investment, and sectors where 
same access prohibitions and restrictions are applied equally to both domestic and foreign 
investments were no longer included. Compared with the last 2015 Catalogue, the number of 
restricti ons was reduced from 93 to 63. For sectors not in this negative list, investment access 
restrictions, or  in other words "special administrative measures on foreign investment access " shall 
in principle not be imposed.  
3.14.   Compared with the 2015 Catalogue , the main changes in this Revision were as follows.  In 
manufacturing, China lifted ac cess restrictions  in sectors such as  rail transportation equipment, 
automotive electronics, battery for new -energy vehicle s, motorcycle s, edible fat and oil, ethanol  
fuel, and relaxed access restrictions in sectors such as purely electric -powered vehicle s. In mining , 
access restrictions were removed  in sectors such as non -conventional  oil and gas, precious metals  
and lithium mines . In services, access restrictions  were eliminated  in sectors and areas including WT/TPR/G/375 • China  
 
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  road transport of passenger s, ocean cargo  tally, credit investigation and rating, accounting and 
auditing, wholesale markets  of agricultural products and etc.  In the next step, China  will consider 
rolling out a series of opening measures involving manufacturi ng of  vehicle s, ships and aircraft s, 
resources and energy, infrastructure, transport, commercial distribution , professional services  etc. 
3.2.4   Further opening up the financial sector  
3.15.   In the banking sector, in June and July  2017 respectively, the People's Bank of China 
(PBOC ) eased access restricti ons of bank card clearing institutions and for financial service 
suppliers to engage in credit investigation and rating  service. In March 2018, PBOC issued policies 
concerning foreign investment in payment service by non -banking institutions and opened up the 
sector. In March 2017, the former China Banking Regulatory Commission also relaxed  policies and 
supervisory requirements  for foreign -invested banks to engage in  such business activities as  
government bond s underwriting, custody service s, financial cons ultancy  etc. In  the securities 
sector, China decided  in November 2017  to allow foreign ownership of up to 51% in foreign -
invested securities firms, fund manage ment companies  and futures companies.  This capping will 
be further removed three years after impl ementation . In March 2018, the crude oil futures were 
listed for trading  in Shanghai Futures Exchange . It was the first product in China allowing foreign 
investors to trade in Chinese futures.  Next, China Banking and Insurance Regulatory Commission  
will further  consider relaxing equity restrictions on foreign participation in Chinese financial  asset 
management companies , Chinese banks  and life insurance companies. Conditions for foreign 
financial services providers to establish presence in China will be e ased, the business scope be 
expanded, and regulatory rules be optimized.  
3.2.5   Continuing  to encourage foreign investment in central and western regions of 
China  
3.16.   In February 2017, the  newly revised  Catalogue of Advantaged Industries for Foreign 
Investment in the  Central -Western Region s (2017 revision) was published . This revision contain ed 
a total of 639 entrie s, with 139 entries  added  compar ed with the  last 2013 revision . Foreign 
investment projects listed in th is Catalogue are regarded encouraged projects as pr ovided for in 
the Catalogue for the Guidance of Industries for Foreign Investment  and therefore are entitled to 
the same preferential policies . The 2017 revision aim ed to promote transformation and upgrading 
of traditional industries , support development of high and new and applicable technologies, 
encourage  accelerated development of service s sectors and  labour -intensive industries , and  
reinforc e infrastructure and associated supporting capabilities . 
3.2.6   Speeding up the comprehensive pilot s on establishing  new institutions  of an open 
economy  
3.17.   In May 2016, China launched the experimental work of comprehensive pilot program s on 
establishing new institutions of an open economy in 12 cities and areas including Jinan, Nanchang, 
Tangshan, Zhangzho u, Dongguan, Fangchenggang, Pudong New Area, Liangjiang New Area, Xixian 
New Area, Dalian -Jinpu New Area, Wuhan Metropolitan Area and Suzhou Industrial Park, in a bid 
to explore new modes and means of administration of an open economy by promoting various 
specific reform measures. In April 2017, MOFCOM and National Development and Reform 
Commission (NDRC) jointly issued guidelin es on advancing the comprehensive pilots. Since the 
launch, 24 effective practice s from the pilots have been shared nationwide . 
3.18.   Thanks to a series of measures to facilitate  trade and investment , China 's business 
environment has been further optimized. There is no law or regulation  in China requiring foreign 
enterprises to transfer their technology to Chinese partners . The Doing Business 2017 by the 
World Bank indicated  that in the past three years, China 's global ranking o n the ease of doing 
business had  risen by 18, and the ranking on the  ease of starting a business had  climbed up by 
31. In the Doing Business 2018 , the tim e needed for paying taxes in China has shortened by 52 
hours compar ed with the previous  year, resulting  in a moving -up of 32 in the ranking.  WT/TPR/G/375 • China  
 
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  3.3  Supporting outbound direct investment cooperation for mutual benefits and win -win 
with host countries and regions  
3.19.   China  attaches  equal importance  to attracting  foreign investment  and going global , and 
strive s to enhance the quality and efficiency of the outbound investment, improve its facilitation 
and safeguard its legitimate rights and interests.  
3.3.1   Advancing  the refor m of overseas investment administration  system  
3.20.   In January 2018, MOFCOM  together  with other relevant government agencies  issued the 
interim measures on regular reporting of outbound investment subject to administration of filing 
for record or administration of verification  and approval . The interim measures, on top of the 
administration system featuring filing for record supplemented by verification and approval which 
was put in place in 2014, aimed to improve administration of outbound investm ent through 
identifying both a negative list and those that are encouraged.  
3.21.   In August 2017,  NDRC,  MOFCOM , PBOC  and the Ministry of Foreign Affairs jointly issued 
guideline s on direction s of overseas investment , signall ing to the market the overseas invest ment 
activities that are encouraged, restricted or prohibited. In December 2017, N DRC revised and 
issued the measures on administration of overseas investment projects of enterprises requesting  
that sensitive overseas investment projects be verified and ap proved  by NDRC , and that non-
sensitive projects be subject to administration of filing for record . Projects of enterprises directly 
under the central government, and those projects with Chinese investment of no less than US$300 
million  are to be filed with the NDRC. Projects with Chinese investment of less than US$300 million  
are to be filed with the Development and Reform Commission of the provincial level government 
where the enterprise is registered.  In February 2018, NDRC  issued the catalogue of sensitive 
projects . In addition,  NDRC  and MOFCOM  jointly issued in December 2017  the code of conduct for 
overseas investment and operation  of private enterprises.  
3.3.2   Promoting the facilitation of overseas investment cooperation  
3.22.   China believes that e nterprises a nd individuals should go abroad to conduct investment 
cooperation , undertake engineering projects and provide labour service s by demonstrating their 
own strengths  and advantages and  at their own  risks. They can explore not only direct ways of 
green field i nvestment and merger and acquisition but also  innovative means including securities 
and portfolio investment. Enterprises with sufficient capabilities are encouraged to conduct 
overseas cooperation in areas including infrastructure , energy and resources an d etc. Ag ricultural 
cooperation can be promoted stead ily. Technologies and t echnical standards  should go abroad. 
Chinese investors and entities are also supported in the ir construction, management and 
upgrading of overseas economic and trade cooperation zones.  
3.4  Stren gthening the protection of intellectual property rights  
3.23.   China  has continued to strengthen both the administrative and judicial protection of IPR s 
and reinforc e related  long-term mechanism s. Since its establishment, the National Leading Group 
on Fight against IPR Infringement and Counterfeiting headed by a Vice Premier of the State 
Council has coordinated its 29 member  agencies  in an overall manner to advance  IPR protection 
with integrated and enhanced forces. Corresponding l eading groups have also been established by 
governments at provincial, city and even county levels . An effective working mechanism across the 
country  has taken shape . 
3.4.1   Strengthening the top -level design for IPR protection  
3.24.   In November 2016, China issued guidelines  on improving property rights system for better 
protection purposes, stressing intangible properties such as IPR s should be protected on an  equal 
footing  with tangible properties. In December 2016, a general s cheme of reform for 
comprehensive administration  of IPRs  was issued. The scheme aim ed to establish  an efficient 
integrated administration  system  for IPRs , build a convenient and benefiting public service system 
in terms of IPRs , and improve capabilit ies to comprehensive ly utilize  IPRs to promote innovation -
driven development.  WT/TPR/G/375 • China  
 
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  3.25.   In December 2016, China issued the  plan of p rotection and utilization  of IPRs during the 
13th five-year plan period , calling for further deepening reform in the IPR field. In March 2017, the 
Chinese government, taking into count new develop ments, gave its guideline s on strengthening 
the combat against IPR i nfringement s and against m anufactur ing and sale of counterfeits in the 
near future. In April 2017 , the outline of judicial protection of IPRs in China for 2016-2020 was 
issued , which specified guiding principles, goals and key measures of judicial protection of IPR s 
during the 13th five-year plan period.  
3.4.2   Steadily advancing legislations on IPR protection  
3.26.   In March 2017, the F irst Session of the 13th National People's Congress adopted  the General 
Provisions of the Civil Law, i n which  trade secrets is taken as object of IPR for protection. The Law 
against Unfair Competition amended in November 2017 redefine d trade secrets, ex panded  the 
scope of the subject infringing on trade secrets and sc aled up the administrative penalty on 
infringers of trade secrets. In addition, the Patent Law and the Copyright Law are also currently 
undergoing amendment.  
3.4.3   Constantly strengthening IPR judicial protection  
3.27.   Judicial interpretation and case guidance are imp ortant ways of the Supreme People 's Court 
to guide the adjudication and enforcement work of courts across the country. To ensure the 
applicable standards in law are unified, i n March 2016, the Supreme People 's Court promulgated 
the Interpretation on Several Issues concerning the Application of Law in the Trial of Patent 
Infringement  Dispute Cases (II)  to address  such problems as long litigation  duration, difficult ies in 
collecting evidence s and insufficient compensation in patent  litigation. In January 2017, the 
Supreme People 's Court promulgated  the Provisions on Several Issues concerning the Trial of 
Administrative Cases involving Trademark Authorization and Confirmation , making further  
clarifications on issues such as the exami nation scope of trademark registration and the protection 
of famous trademarks  etc. 
3.28.   Reform on trial of IPR cases  has been further advanced . Since the establishment of IPR 
courts in Beijing, Shanghai and Guangzhou in 2014, the total number of IPR cases handled has 
exceeded 60,000. In July 2016, the Supreme People 's Court began the reform on trial of IPR cases 
to have all type s of IPR cases , being civil, administrative or criminal , handled by one single division 
of a court. Since 2017, the Supreme People 's Court has approved the establishment of special 
divisions responsible for IPR cases in People 's Courts in Nanjing, Suzhou, Wuhan, Chengdu, Hefei 
and Ningbo. In February  2018, the Supreme People 's Court further instructed that efforts should 
be accelerate d to moderniz e both the trial system and capacities of IPR cases.  
3.29.   China has made notable progress in the trial of IPR cases in recent years. Compar ed with 
2016, IPR cases  of first instance newly accepted  and closed  in courts nationwide increased by 46% 
and 43% respectively  in 2017 . Judicial protection has become an increasingly important means in 
IPR protection in China.  
3.4.4   Actively carrying out administrative law enforcement in IPR protection  
3.30.   To crack down on IPR infringement s and counterfei ts, China launches e very year  special 
campaigns targeting particular areas including for examples online trade and import -export 
transactions. In September 2017, an IPR protection operation for foreign -invested enterprises  was 
organized jointly by 12 government agencies , whic h focused on fighting illegal acts of violating 
commercial secrets, infring ing upon trademark  and patents as well as  online piracy.  Key areas  of 
hi-technology , e-commerce, food  and drug, environment protection as well as key venue s of 
exhibitions  etc. were also identified  where a  special law enforcement campaign named  Thunder  
was launched  with the concerted efforts of various government agencies to fight against all kinds 
of infringement s on patents.  
3.5  Building pilot free trade zones  according to hi gh standard   
3.31.   Establishing  Pilot Free Trade Zones (pilot FTZs) is a major movement  of the Chinese 
government to further  the reform and opening up under new development circumstances. It aims 
at accelerating  transformation of government functions, searching for innovati ve modes of WT/TPR/G/375 • China  
 
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  administration and management, promoting trade and investment  facilitation , and exploring new 
ways, means and  experience for deepen ing reform and opening up in an all -round manner . Since 
2013, China  has successively established pilo t FTZs in 11 provinces and municipalities including 
Shanghai, Guangdong, Tianjin, Fujian, Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan and 
Shaanxi, and has made positive progress in various reform areas.  
3.5.1   Realizing the significant  transformation of the FDI administration  system  
3.32.   The Shanghai Pilot FTZ began exploring the foreign investment administration model of pre -
establishment national treatment plus negative list  and issued the first negative list for foreign 
investment access in 2013 to replace  the traditional model of case-by-case examination and 
approval . Since then, the negative list of the  pilot FTZ s has been revised and shortened three 
times.  When the last 2017 revision of the negative list was issued in June 2017, the original 190 
items ha d been reduced to 95.  
3.5.2   Putting in place a trade regulatory system in line with international practice s 
3.33.   38 facilitation measures  out of the  40 as provided in the Trade Facilitation Agreement  of the 
WTO have been implemented in Shanghai Pilot FTZ. The Single Window for international trade in 
Shanghai has entered the 3.0 era, covering various functional modules such as cargo declaration, 
declaration of means of transportation, cross -border e -commerce , logistics information  etc., and 
linking all trade regulatory  agencies . In Guangdong Pilot FTZ , 90% of cargo declaration s are made 
through the Single Window. The trade facilitation measures implemented  successively by various 
FTZs have on average improved  the clearance efficiency by 40%.  
3.5.3   New and creative  measures  facilitating the real economy development  
3.34.   The Shanghai Pilot FTZ developed  a new model of administration of cross -border capital 
flow by creating a system of free trade accounts. By the end of 2017, approximate 70,000 free 
trade accounts had been opened cu mulatively in Shanghai Pilot FTZ, covering business 
transactions of more than 30,000 enterprises home and abroad which had involved  over 
120 countries and regions. Supporting p ublic service s system s in the pilot FTZs are also  constantly 
improved.  
3.35.   By the en d of 2017, the number of newly -established enterprises in the 11 pilot FTZs had 
exceeded 400,000, of which 25,000 were foreign -invested enterprises , with a total paid-in capital  
of RMB 261.93 billion. Experience from a large number of reform measures imple mented 
effectively in the pilot FTZs has been introduced  nationwide . By the end of 2017, a total of 123 
pieces of reform experienc e from the pilot FTZs including the negative list  model  for foreign 
investment ha d been copied  to the whole country . This has greatly optimized the nationwide 
business environment.  
3.6  Latest development of trade and investment  
3.6.1   Trade development  
3.36.   In 20 16, China's total import and export  of goods  amounted to US$3.6855 trillion, down 
6.8% year  on year ; of which, the export was US$2.0976 trillion, down 7.7%, and the import was 
US$1.5879 trillion, down 5.5%. In 2017, China's total import and export of goods reached 
US$4.1070 trillion, up by 11.4% year -on-year, of which, the export was US$2.2632 trillion, up 
7.9%, and the import was US$1.8438 trillion, up 16.1%. 
3.37.   The d evelopment of trade in goods had  the following features. First ly, the growth of trade in 
2017 outpaced expectation  by hitting a six -year high, which reversed the trend of negative 
increase over the previous two consec utive years. Second ly, trade structure continued  to be 
improve d. In 2017, the share of foreign -invested enterprises and private enterprises in total 
exports had gone up to 8 9.7%. Private enterprises became the largest exporting entity , accounting 
for 46.3 % of the  total exports , and contribut ing nearly  40% of the total imports and exports. 
Thirdly, the mode of trade further improv ed. In 2017, the share of general trade in total imports 
and exports had risen to 56. 4%. WT/TPR/G/375 • China  
 
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  3.38.   In 2016, China 's total imports and export s of services was US$661.6 billion, growing by 
1.1% year on year. Service s exports stood at US$209.5 billion, down 4.2%, and imports 
amounted to  US$452.1 billion, up 3.8%. Deficit of service s imports and exports reached  
US$242.6  billion. In 2017, the total imports and exports of services was US$695.7 billion, showing 
a year -on-year 5.1% growth. Service s exports reached US$228.1 billion, up 8.9%, and imports 
registered US$467.6 billion, up 3.4%. Deficit of service s imports and expo rts reached 
US$239.5  billion. The  top three traditional service sectors of travel, transportation and 
construction witnessed a drop by  1.1 percentage points of their share in total imports and exports.  
3.6.2   Inward direct investment  
3.39.   In 2016, 27,900 FIEs were new ly established in China  with a year -on-year increase  of 5%. 
The paid-in foreign investment  (excluding banking, securities and insurance sectors, hereinafter 
the same)  reached  US$126 billion,  down 0.2%. In 2017, 35,652 FIEs were newly established in 
China, up 27.8% year on year. The paid-in capital  was US$131.04 billion, a steady growth of 4%.  
3.40.   Features of inward direct investment development were as follow s. Firstly, the sectoral 
distribution of foreign investment continued to improve . In 2017, the paid-in foreign investment  in 
hi-tech services sectors reached US$26.07 billion, which registered  a year -on-year growth of 
106.4%. Second ly, the regional layout optimized continuously. In 2017, the paid-in foreign 
investment  in the central region was US$8.31 billi on, showing a year -on-year growth of 17.1% 
which was the highest in the country . Newly-established FIEs in the western region increased  by 
43.2% over the previous year, and the vitality of various entities in the market was further 
stimulated. Thirdly, the  role of pilot FTZs leading the reform and opening up was further  
demonstrated. In 2017, there were 6,841 FIEs newly established in  the 11 Pilot F TZs, of which 
99.2%  were by way of filing for record . The paid-in foreign investment  reached US$15.55 billion,  
up by 14.7% year on year , which was 10  percentage points higher than the average growth rate  
nationwide . 
3.6.3   Outbound direct investment  
3.41.   In 2016, China 's outbound direct investment was US$196.15 billion, up 34.7% year -on-
year. In 2017, the outbound direct investment was US$124.63 billion, down 32%. Overseas 
economic and trade cooperation zones have played a positive  role in promoting the common  
development of China and host countries. By the end of 2017, 99 overseas economic and trade 
cooper ation zones develop ed by Chinese enterprises in 44 countries had taken  shape , with an 
accumulative investment of US$30.7 billion, and 4,364 enterprises  choosing to locate in. T axes 
paid to host countries had amounted to US$2.42 billion , and 258,000 local j ob opportunities  had 
been created . Among them, new investment in 2017 was US$5.79 billion, and total output value in 
2017 was  US$18.69 billion.  
4  ACHIEVING SHARED GRO WTH THROUGH DISCUSSI ON AND COLLABORATION  AND 
BUILDING AN OPEN WOR LD ECONOMY  
4.1.  Since the outbr eak of the international financial crisis, China has contributed on average 
more than 30% of global economic growth annually. China is a beneficiary of economic 
globalization, but more a contributor. China has always stuck to promoting trade and investment  
liberalization and facilitation at multilateral, regional, and bilateral levels, and promoting the 
building of an open world economy.  
4.1  Firmly supporting economic globalization and b uilding new platform for 
international cooperation  
4.1.1   Proactively promoting in ternational cooperation over the Belt and Road Initiative  
4.2.  In the autumn of 2013, President Xi Jinping proposed in Kazakhstan and Indonesia 
respectively the building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, 
known as the Belt and Road Initiative. Later on, China issued an action plan on the proposed Belt 
and Road Initiative namely the Vision and Proposed Actions Outlined on Jointly Building Silk Road 
Economic Belt and 21st Century Maritime Silk Road , and held the first Belt and Road Forum for 
International Cooperation in Beijing in May 2017.  Today, building the Belt and Road has had the WT/TPR/G/375 • China  
 
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  strong support and active participation of more than 100 countries and international organization s 
around the world. The Belt and Road Initiative originates in China, but the opportunities and gains 
it brings belong to the world.   
4.3.  Under the Belt and Road Initiative, trade connectivity has been greatly increased. Total trade 
between C hina and other Bel t and Road countries in 2014 -2017 has exceeded US$4 trillion, and 
China 's accumulative investment in these countries near US$60 billion . Trade and investment 
facilitation has also been significantly enhanced. For example, for Kazakhstan and other Central 
Asian countries, C ustoms clearance time for agricultural produce exported to China has reduced by 
90%.  
4.4.  China advocates the Silk Road spirit characterized by peace and cooperation, openness and 
inclusiveness, mutual learning and mutual benefit. President Xi Jinping pointed out that the Belt 
and Road should be built into a road for peace, a road of prosperity, a road of opening up, a road 
of innovation and a road connecting different civilizations. All parties should join hands to meet the 
challenges faced by the world economy, create new opportunities for development, seek new 
development momentum, expand new development space, achieve mutual complementarity and 
mutual benefit, and continuously move towards the direction of a community with a shared future 
for mankind . 
4.1.2   Preparing vigorously for the first China International Import Expo  
4.5.  In May 2017, President Xi Jinping announced at the first Belt and Road Forum for 
International Cooperation that  China will host the China International Import Expo starting from 
2018. Sponsored by China and participated by countries and regions all over the world, the China 
International Import Expo invites buyers both at home and abroad and serves as an open platform 
to buy from the world and sell to the world. The Expo will organ ize both country and enterprise 
exhibitions. More than 120 countries, regions and international organizations are expected to 
participate, and over 150,000 professional buyers will come for purchase. China will facilitate all 
countries and regions in their  participation and offer more preferences to developing countries 
especially the Least Developed Countries (LDCs). At that same time, China will also host the first 
Hongqiao International Forum on Trade with the theme of "invigorating the new vitality of global 
trade and creating a new pattern of opening up and mutual benefit ". 
4.6.  As the world 's first large -scale expo focusing on import,  the China International Import Expo  
is a major policy initiative as well as a  commitment taken of China's own accord to ope n up further 
the Chinese market to the world. It will create new demands for and inject new impetus into the 
world 's economic growth. Through building a new platform that embraces inclusiveness, openness 
and cooperation and providing public products that p romote global inclusive and mutually 
beneficial development, the Expo will also start a new model of cooperation between China and 
international organizations. China welcomes and expects the active participation by WTO members 
and WTO Secretariat in the Ex po and the Hongqiao International Forum on Trade.  
4.2  Firmly safeguarding the multilateral trading system and striving to contribute 
Chinese wisdom and strength  
4.7.  For the multilateral trading system, China is a staunch supporter, an active participant and 
important contributor.  President Xi Jinping pointed out at the 19th National Congress of the 
Communist Party of China that China will support  the multilateral trading system and work to build 
an open world economy . China believes that trade is a major grow th engine , and the WTO rules a 
critical  institutional  guarantee safeguard ing economic globalization.  In light of the serious 
challenges now facin g the multilateral trading system, China  calls on all WTO members to stay 
committed to the basic principles  of the WTO, i.e. open, transparent, inclusive, non -discriminatory 
and rules -based . China  calls on all WTO members to  safeguard the role of the WTO -centred 
multilateral trading system  as a fundamental s tabilizer in global economic governance , and firmly 
oppose  unilateralism and protectionism, so as to contribute to the recovery and growth of the 
world economy and common development and prosperity.  WT/TPR/G/375 • China  
 
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  4.2.1   Participating proactively in the multilateral trade negotiations and discussions and 
playing a constructive role  
4.8.  During the past two years, China has made great efforts in the multilateral trade negotiations 
to facilitate discussions, bridg e gaps and advanc e consensus . China submitted a series of proposals 
in various fields. China not only was among the first few membe rs to complete national ratification 
of the Trade Facilitation Agreement , but also actively promoted more members to ratify the 
agreement when hosting the G20 Hangzhou Summit.  
4.9.  China has actively participated in the negotiations on the remaining issues of the Doha 
Round. With regard to agricultural domestic support, China holds that the core of the negotiation is 
to correct the imbalances in international rules in agricultural trade. China does not agree to 
discuss the reduction of the de minimis  support in  developing members prior to the elimination of 
the Aggregate Measurement of Support  (AMS) in developed countries. Public stockholding for food 
security purposes has a clear mandate from Ministers. China maintains that an agreement should 
be reached accord ingly as soon as possible. Regarding the negotiation of rules, China holds that 
the negotiations on fishery subsidies and those on anti -dumping and countervailing rules should all 
be advanced.  China is also willing to work with other members to make progre ss on non -
agricultural market access, service trade and other issues.  
4.10.   China believes that development being the most outstanding theme of today 's world should 
always be the key task of the WTO work. Although there are differences in economic scales and 
levels among the developing members, they all face the common challenges of unbalanced and 
inadequate development, insufficient governance capacity, and lagging -behind social security 
system. China strongly opposes classification of developing countries. Chin a believes that only 
those organizations truly focusing on inclusive development will have bright future. As more than 
two-thirds of WTO members are developing countries, the top priority for the WTO should be to 
address the existing deficits in rules and in development. This is  not just to  help developing 
members to achieve development , but more importantly, to find a way forward for the WTO itself. 
In this course, China is willing to continue making contributions to promote liberalization and 
facilitation of global trade and investment, as long as they are commensurate with its development 
level and its capabilities.  
4.11.   China believes that the WTO should discuss new issues with development implications such 
as investment facilitation and E -commerce to respond to the expectations of the business 
community as well as to maintain its relevance in  global governance. The discussions should aim 
at multilateral results, adhere to the principles of openness, transparency and inclusiveness and 
mobilize all the membership to participate.  
4.12.   Invest ment facilitation benefits all m embers. China has joined hand s with a group of 
developing members in the establishment of the Friends of Investment Facilitation for 
Development (FIFD). With the support of Nigeria as the host, the High -Level Forum on Investment 
Facilitation for Development was successfully held in No vember 2017. China was particularly glad 
to facilitate the endorsement by around 70 members of the Joint Ministerial Statement on 
Investment Facilitation for Development during the 11th Ministerial Conference in Buenos Aires. 
China will continue support WT O members to engage in dialogues and discussions and promote 
the incorporation of the investment facilitation issue into the WTO framework at an early date.  
4.13.   China attaches great importance to and supports the work related to E -commerce within the 
WTO frame work. China participated actively in the discussions, tabled important proposals, and 
joined the Friends of E -Commerce for Development (FED). During the 11th Ministerial Conference, 
China made all the efforts for members ' final agreement on the Ministerial  Decision on the Work 
Programme of Electronic Commerce . In May 2018, a workshop on E -commerce for development 
under the multilateral trading system was held in China , where more than a dozen of developing 
members were invited for experience sharing and dis cussion on the boost of economy and 
development by E -commerce.  WT/TPR/G/375 • China  
 
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  4.2.2   Defending firmly core values of the WTO and opposing resolutely unilateralism 
and protectionism  
4.14.   China has always held that an open, inclusive and non -discriminatory multilateral trading 
system is the critical institutional guarantee that promotes world economic growth and trade 
liberalization and facilitation . The multilateral trading system represented by the WTO is one of the 
most important global governance mechanism s ever created by mankind,  and a strong and 
powerful constraint against unilateralism and protectionism. China has repeatedly stressed that 
trade frictions and disputes should be addressed through dialogues, consultations and 
communications with mutual respect in accordance with th e multilateral trading rules within the 
WTO framework. China expresses its grave concern over the unilateral and protectionist practices 
of an individual WTO member which are openly in breach of the fundamental rules and spirit of the 
WTO. Opposing such pr actices firmly, China has filed complaints to the dispute settlement body of 
the WTO and calls for the entire WTO membership to stand in solidarity and maintain vigilance and 
resistance.  
4.2.3   Earnestly honouring obligations and commitments and support ing the da ily 
operation of the WTO  
4.15.   Since its accession to the WTO, China has faithfully implemented the extensive market 
access commitments made during the negotiations and seriously fulfilled various obligations as a 
responsible member. As a result, the openness of  the Chinese market has been greatly enhanced 
and maintained. In formulating and implementing economic and trade policies, China pays great 
attention to the consistency with WTO rules and has realized transparency, predictability and 
stability of its trade  measures and practices. China 's efforts in honouring its commitments and 
obligations have been well recognized and applauded by members in previous trade policy reviews.  
4.16.   In recent years, China has made continuous efforts to strengthen the institutional 
arrangement for transparency of trade policies and measures. The capacities and level of 
obligations fulfilment have been further improved.  
4.17.   According to the Legislation Law  amended in March 2015, draft laws shall be published for 
public comments for a peri od of no less than 30 days.  According to the Regulations on Procedures 
for Formulation of Administrative Regulations  and the Regulations on Procedures for Formulation of 
Rules  amended in December 2017, draft administrative regulations of the State Council,  draft rules 
of departments under the State Council and of local governments at the provincial level shall also 
be published for public comments for a period of no less than 30 days. In March 2018, it is further 
reques ted in a c ircular issued by the Genera l Office of the State Council that, a system of 
government gazettes for three levels of the government, namely central, provincial and city -level, 
should be established to be the authoritative platform to publish administrative regulations, rules 
and other  measures.   
4.18.   The notification obligations under various WTO Agreements applicable to China have 
generally been fulfilled. In the notification of subsidies where information gathering has long been 
a tremendous obstacle for China as the largest developing country, positive progress has also been 
made. While the notification used to cover only subsidies at the central government level, it now 
has local subsidies included. Next it is planned to cover all administrative regions at the provincial 
level.  
4.19.   China j oins in the day -to-day work of the WTO seriously. China respects the rulings of the 
Dispute Settlement Body of the WTO, and participates actively in the negotiations on the reform of 
the Understanding on Rules and Procedures Governing the Settlement of Dis pute for progress. 
China is committed to maintaining the stability and authority of the multilateral trading system 
throug h recourse to and reliance on the WTO Dispute Settlement Mechanism. China believes that 
to ensu re the proper functioning of the Appell ate Body is not only a common obligation of all WTO 
members, but also in the common interests of the entire WTO membership. In view of the 
difficulties facing the multilateral trading system, and the heavy dispute settlement workload, any 
further delay in starting the selection process of the Appellate Body members will undoubtedly 
damage seriously the interests of the WTO and the entire membership. As one of the main 
participants in the Dispute Settlement Mechanism, China will work closely with other membe rs to 
strive for the start of the selection process as early as possible.  WT/TPR/G/375 • China  
 
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  4.2.4   Responding positively to the WTO Aid for Trade initiative  
4.20.   In March and December 2017, China 's LDCs and Accessions Program (China Program) 
sponsored the Fifth and the Sixth Roundtable s on LDCs ' WTO accession in Cambodia and Argentina 
respectively. China contributed another US$1 million to the Program to help more LDCs to join the 
big family of the WTO. During the 11th Ministerial Conference in Argentina, China signed a 
memorandum with the WTO on donating US$1 million to the Trade Facilitation Agreement Facility 
(TFAF). During the Belt and Road Forum for International Cooperation held in May 2017 in Beijing, 
China signed an economic cooperation agreement with the WTO, providing US$8 mill ion to support 
the research and relevant activities of the WTO with developing countries for capacity building in 
the international trade field.  
4.3  Participating actively in global economic governance and opposing protectionism  
4.21.   On many occasions including th e annual meeting of the World Economic Forum in Davos, 
the G20 Summit, the BRICS Summit and the Annual APEC Economic Leaders ' Meeting, President Xi 
Jinping stated that China will firmly safeguard the authority and effectiveness of the multilateral 
trading system, oppose protectionism, guard against beggar -thy-neighbour positions and strive to 
advocate and promote an open world economy.  
4.22.   As the G20 presidency, China held the G20 Hangzhou Summit with the theme of "building 
an innovative, invigorated, interconn ected and inclusive world economy " in September 2016. The 
Summit released the G20 Leaders ' Communiqu é, Hangzhou Summit  and adopted 28 outcome 
documents, including a series of pragma tic action plans. The G20 Strategy for Global Trade Growth  
was devoted to reverse the weakness  of the global trade, and the Guiding Principles for Global 
Investment Policy  filled in the blanks in global investment governance and was of primary 
significance to promote transformation of G20 from a crisis response mechanism to a long -term 
governance mechanism.  
4.23.   According to the proposal of the Summit, the Global Forum on Steel Excess Capacity (the 
Forum) was established in Berlin in December 2016. In a constructive and pragmatic manner, 
China participated in the Foru m, shared information and discussed the six principles of proposals 
on policies and measures. China believes that the Forum should abide by its mandate and adhere 
to the principle of collective responses to global challenges.  
4.24.   In September 2017, the 9th BRICS Summit with the theme of "Stronger BRICS Partnership 
for a Brighter Future " was held in Xiamen China. The BRICS leaders witnessed the signing of the 
BRICS Action Agenda on Economic and Trade Cooperation , and reached the Outlines for BRICS 
Investment Fac ilitation  and a number of other economic and trade cooperation outcomes in 
support of the multilateral trading system and opposing protectionist actions. The BRICS countries 
unanimously believed that, under the background of insufficient growth impetus of global economy 
and rising protectionism, the BRICS countries should further improve cooperation mechanisms, 
expand cooperation areas, promote industrial and technological upgrading, and give full play to the 
complementarity and diversity of the BRICS econo mies to better deal with the various challenges 
of the globalization.  
4.25.   In addition, China continued its deep involvement in APEC with the commitment to building 
an open Asia -Pacific economy and establishing the Free Trade Area of the Asia -Pacific. China 
pushed for a trade facilitation process in the Shanghai Cooperation Organization and advancement 
in the ASEM trade and economic cooperation mechanism. China also participated pragmatically in 
the economic cooperation activities in mechanisms including the Gre ater Tumen Initiative, Greater 
Mekong Sub -region Economic Cooperation and Central Asia Regional Economic Cooperation.  
4.4  Steadily pushing forward construction of free trade areas (FTAs) and promoting 
trade and investment liberalization and facilitation  
4.26.   Since  the last review, China has signed FTAs with Georgia and the Maldives.  So far, China  
has signed 16 FTAs with 24 countries and regions, in which more than 90% the tariffs would be 
reduced to zero . Thirteen FTAs or upgrading negotiations are now going on , namely Regional 
Comprehensive Economic Partnership  (RCEP), China -Japan -Korea FTA, China -GCC (Gulf 
Cooperation Council) FTA, China -Sri Lanka FTA, China -Israel FTA, China -Norway FTA, China -WT/TPR/G/375 • China  
 
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  Moldova FTA , China -Mauritius FTA , China -Panama FTA , China -Pakistan FTA (second phase ), China - 
Korea FTA  (subsequent negotiation) , China -Singapore  FTA (upgrade) and China -New Zealand  FTA 
(upgrade) . In addition, China signed the Investment Agreement under the Mainland and Hong 
Kong Closer Economic Partnership Agreement ( CEPA), with Macao, China. Both have been 
implemented as of 1 January 2018.  
4.5  Upholding justice while pursuing shared interests  and enhancing constantly South -
South cooperation  
4.27.   As the largest developing country in the world, China empathizes with developing members 
in the desire  for development. While striving to achieve its own development, China has, guided by 
the principle of upholding justice while pursuing shared interests a nd the principle of sincerity, 
honesty, affinity and good faith, endeavoured within the framework of South -South cooperation, to 
provide other developing countries, especially the LDCs with assistance in line with its capabilities, 
development level and na tional conditions . China has  made positive contribution s to the 
development of South -South cooperation, to the implementation of the 2030 Agenda for 
Sustainable Development and to the building of  a community with a shared future for mankind . 
4.28.   Since Septembe r 2015, China has successively announced at the United Nations Sustainable 
Development Summit, the Johannesburg Summit of the Forum on China -Africa Cooperation, and 
the Belt and Road Forum for International Cooperation  a series of assistance measures inclu ding 
the establishment of the South -South Cooperation Assistance Fund and the pledge to increase the 
contribution therein to US$3 billion, grants of RMB 60 billion to Belt and Road countries, and 
emergency food aid of RMB 2 billion. Taking the needs of the  recipient countries into close 
consideration, China has implemented more than 600 assistance programs in areas such as 
infrastructure, agricultural development, medical and health care, aid for trade, poverty reduction 
and capacity building . China has als o exempted relevant countries from debts of interest -free 
loans due at the end of 2015, implemented nearly 200 assistance projects concerning 
humanitarian assistance and  people 's livelihood. China is to further improve the connection and 
synergy between th e implementations of the Belt and Road Initiative and the 2030 Agenda for 
Sustainable Development.  
4.29.   At the Johannesburg Summit of the Forum on China -Africa Cooperation held in December 
2015, President Xi Jinping announced that China will join hands with Afr ican countries to roll out 
ten major China -Africa cooperation plans. In the past two years, major progress has been 
achieved in the implementation of the ten cooperation plans, which has brought tangible benefits 
to African countries in industrialization c ooperation and infrastructure construction. In 
September  2018, another Summit of the Forum on China -Africa Cooperation will be held in Beijing. 
China will continue to support African development and enhance further the solidarity and 
cooperation with Afric an countries.  
4.30.   China is one of the most open markets to the LDCs and has continued implementing zero 
tariffs for 97% of its tariff lines for LDCs ' exports to Chin a. By the end of 2017, China had  applied 
the zero -tariff scheme to 36 LDCs WTO members that had  exchanged diplomatic note with China, 
enhancing greatly their exports to the Chinese market. China has long been a major export 
destination for LDCs since 2008, importing nearly 1/4 of the total exports from LDCs.  
5  DEEPENING THE REFORM  COMPREHENSIVELY, UPH OLDING RULE OF LAW A ND 
DEVELOPING A MODERNI ZED ECONOMY  
5.1.  China has continued to comprehensively deepen reform and perfect law -based governance, 
constantly advanced the modernization of China 's system and capacity for governance , and 
endeavo ured to develop a n economy with more effective market mechanisms, dynamic micro -
entities, and sound macro -regulation.  WT/TPR/G/375 • China  
 
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  5.1  Furthering supply -side structural reform and strengthening innovation capacity of 
the economy  
5.1.1   Improving supply structure and further exploiting potential of domestic demand  
5.2.  Since the last review, China has continued to promote the expansion and upgrading of 
consumption, speed up the reform of the domestic distribution channels. A series of guidelines on 
expanding consumer demand in services of tourism, cult ure, health, information and etc. as well 
as on improving product quality have been issued. China has strive n to stimulate private 
investment, promote the Public -Private Partnership (PPP) model, so as to give play to the critical 
role of investment in opti mizing the supply structure.  
5.1.2   Implementing innovation -driven development strategy and making China a 
country of innovators  
5.3.  Innovation is the primary force driving development. China has been committed to improving 
the national innovation system, further ref orming the management system for science and 
technology, promoting innovation in the development of services trade, and inspiring creativity 
throughout the society. Since the last review, China has continued to promote entrepreneurship 
and innovation  among  the public , develop service systems for  the general public to innovate and 
start businesses . Reform experience  in such areas as innovation incentives and intellectual 
property has been rich and shared  extensively. New technologies  and industries together with new 
models and forms of business are thriving, and transformation and upgrading of traditional 
industries are accelerating.  
5.1.3   Eliminating vigorously ineffective supply and pushing forward cutting excess and 
out-dated capacity  
5.4.  Since 2016, China has issu ed policy guidelines on eliminating excess and out -dated capacity 
in steel and coal industries respectively, focused  on the key issue of "zombie enterprises" , and 
persisted in scaling down overcapacity through market -oriented, law -based measures . China 
organized special operations against outdated  facilities  and projects that  violated laws and 
regulations to strictly control the expansion of production capacity . Meanwhile, China has made 
tremendous efforts to ensure that laid -off employees were resettled an d provided employment , 
and that enterprise debts were properly handled . Enterprises affected by overcapacity are 
encouraged to merge, restructure, transform, upgrade, or optimize business distribution.  In 2016 
and 2017, China dissolved production capacity  by over 120 million tons of steel and over 
500 million tons of coal.  
5.1.4   Resolutely stepping up pollution prevention and control and committing to 
building ecological civilization  
5.5.  China has fully realized that lucid waters and lush mountains are invaluable a ssets, and 
focused on pollution prevention and control with unprecedented determination and efforts to 
strengthen ecological and environmental protection. Forceful measures have been taken to tackle 
air pollution. Encouraging progress has been made in esta blishing a national market for the trading 
of carbon emission rights. Energy conservation and emission reduction in key industries have 
continued to make progress, and energy structures further optimized. China has strengthened the 
prevention and control o f water pollution in key river basins and sea areas, and implemented 
major ecological protection and restoration projects. From 2013 to 2017, 71% of all the coal -fired 
power generating units in China achieved ultra -low emissions, and the proportion of coal  
consumption dropped by 8.1 percentage points, while that of clean energy consumption up by 
6.3 percentage points.  
5.2  Implementing coordinated regional development strategy , rural vitalization strategy 
and carrying out targeted poverty alleviation  
5.2.1   Coordinati ng regional development in a more effective manner  
5.6.  China implements a coordinated regional development strategy, speeding up the 
development of old revolutionary base areas, areas with large ethnic minority populations, border WT/TPR/G/375 • China  
 
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  areas and poor areas , contin uing to advance the large -scale development of the western region, 
accelerating the revitalization of old industrial bases in the northeast and other parts of the 
country, promoting the central region to rise by tapping into local strengths, and supporting  the 
eastern region to take the lead in pursuing optimal development. China will drive the coordinated 
development of the Beijing -Tianjin -Hebei region and explore ways to solve the "big city malaise " 
by planning and building the Xiong 'an New Area. China wi ll facilitate the development of the 
Yangtze Economic Belt by promoting well -coordinated environmental conservation and avoiding 
excessive development. China will develop networks of cities and towns based on city clusters, 
enabling the coordinated develop ment of cities of different sizes and small towns.  
5.2.2   Intensifying targeted poverty alleviation and enhancing self -generated impetus 
for development in poverty -stricken areas  
5.7.  China has continued to implement targeted poverty reduction and alleviation measures  so as 
to ensure that, by the year 2020, all rural residents living below the current poverty line will have 
been out of poverty, and poverty is eliminated in all poor counties and regions. From 2013 to 
2017, China achieved decisi ve progress in the fight against poverty. More than 68 million people 
were lifted out of poverty, including a total of 8.3 million relocated from inhospitable areas, and 
the poverty headcount ratio dropped from 10.2% to 3.1%.  
5.8.  It is the solemn commitment o f the Communist Party of China that in 2020 impoverished 
population and poverty -stricken areas will enter the moderately prosperous society in all respects 
along with the people of the whole country. Based on the achievements made, China will further 
step up targeted poverty alleviation and intensify efforts  to develop  local industries, education , 
healthcare  and ecological system. China  will strengthen  such areas of weakness as infrastructure 
and public service , pay particular attention to helping people in crease confidence in their own 
ability to lift themselves out of poverty, and ensure that they can access the education needed. 
China will also crack down corruption in the field of poverty alleviation.  
5.2.3   Speed ing up the modernization of agriculture and rura l areas  and fostering new 
growth drivers of rural development  
5.9.  Addressing  issues  relating to agriculture, rural areas , and rural people has always been  the 
centrepiece of  the work of the Chinese government . In January 2018, China issued guidelines on 
implem enting the rural vitalization strategy. It is proposed that agricultural supply -side structural 
reform be pushed forward, and the production -oriented  pattern of development be adjusted 
towards a quality -oriented one highlighting green development.  Agricult ural science and 
technology should be enhanced, whole -process mechanization be further promoted, and rural 
public services and infrastructure be strengthened. China will further deepen the rural reform 
including the rural land system in a comprehensive app roach. Agricultural  support policies and 
measures will continue to be improved  to form a mechanism containing both incentives and 
restraints which is green -oriented and promotes the rational use of agricultural resources and 
protection of ecological enviro nment.  
5.3  Advancing modernization of the system and capacity for governance  
5.3.1   Adopting the Amendments to the Constitution  
5.10.   On 11 March 2018, the First Session of the 13th National People's Congress adopted  the 
Amendments to the Constitution of the People 's Republic of China . The Amendments  wrote into the 
Constitution Xi Jinping Thought on Socialism with Chinese Characteristics in a New Era, together 
with expressions of "building China into a great modern socialist country that is prosperous, 
powerful, democr atic, civilized, harmonious, and beautiful ", "promoting the building of a 
community with a shared future for mankind " and others. The Amendments also established the 
legal status of the National Supervisory Commission as a state organ. This constitutional 
amendment is a major move of China to advance law -based governance in all fields. It will further 
uphold the authority of the Constitution, enhance the people's awareness of the Constitution, 
ensure effective enforcement of the Constitution and give better  play to the role of the 
Constitution as the fundamental law of governance.  WT/TPR/G/375 • China  
 
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  5.3.2   Pressing ahead with restructuring of government institutions  
5.11.   Deepening reform of Party and government institutions is a profound change to modernize 
China 's system and capacity fo r governance. It is an important part of the overall reform process, 
and plays the role of institutional support and guarantee for reforms in other areas. In 
March  2018, the First Session of the 13th National People 's Congress approved the institutional 
restructuring plan of the State Council. Institutions at the ministerial level and the vice -ministerial 
level have been reduced by 8 and 7 respectively. After restructuring, the State Council consist s of 
26 ministries and commissions in addition to the Gener al Office of the State Counci l. These are  
Ministry of Foreign Affairs, Ministry of National Defense, National Development and Reform 
Commission, Ministry of Education, Ministry of Science and Technology, Ministry of Industry and 
Information Technology, Sta te Ethnic Affairs Commission, Ministry of Public Security, Ministry of 
State Security, Ministry of Civil Affairs, Ministry of Justice, Ministry of Finance, Ministry of Human 
Resources and Social Security, Ministry of Natural Resources, Ministry of Ecologic al Environment, 
Ministry of Housing and Urban -Rural Development, Ministry of Transport, Ministry of Water 
Resources, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, Ministry of Culture and 
Tourism, National Health Commission, Ministry of V eterans Affairs, Ministry of Emergency 
Management, People 's Bank of China, and National Audit Office.  
5.12.   In addition, the State Council has established  State Market Regulatory Administration , State 
Radio and Television Administration , China Banking and Insurance Regulatory Commission , State 
International Development Cooperation Agency , State Medical Insurance Administration , State 
Grain and Reserves Administration , State Immigration Administration , State Forestry and 
Grassland Administration  and State In tellectual Property Office  (restructured). The National 
Council for Social Security Fund  is administered by Ministry of Finance instead of directly by the 
State Council. National and local taxation systems are restructured.  
5.3.3   Further streamlin ing administrat ion and delegat ing powers  and improving 
government services  
5.13.   From 2013 to 2017, the number of ite ms subject to approval by ministries, commissions 
and administrations of the State Council was slashed by 44%, the number of investment items 
subject to approva l at the central gove rnment level was cut by 90%, and the requirements for 
professional qualification licensing and accreditation were significantly reduced. The number of 
items f or which central government set  the prices was cut back by 80%, and loca l 
government -priced items were cut down by over 50 %. 
5.14.   China has continued to push forward the reform of business system. In business 
registration, the prev ious system of a business licenc e plus an organization code certificate plus a 
taxation registration certificate was replaced by a unified business licenc e with a unified social 
credit code, operating permits required for certain specific sectors were se parated from the 
business licenc e, simplified de -registration procedures were introduced , and whole -process 
electronic registration  and electronic business licenc e were promoted. The time taken to start a 
business has been reduced by over one third.  
5.3.4   Striving to create a market  environment of fair competiti on for all types of market 
entities  
5.15.   China is now in the process of  introducing the negative list for market access  nationwide. In 
March 2016, NDRC and MOFCOM issued the Draft Negative List for Market Access (Pilot Version), 
which specified  sectors, areas and business prohibited or restricted from investment and business 
operation in China, including 96 items in the prohibited category and 232 items in the restricted 
category. Pilots to apply the market access negative list were then initiat ed in 4 municipalities and 
provinces of Tianjin, Shanghai, Fujian and Guangdong. In 2017, 11 more provinces and 
municipalities directly under the central government, i.e. Liaoning, Jilin, Heilongjiang, Zhejiang, 
Henan, Hubei, Hunan, Chongqing, Sichuan, Gui zhou and Shaanxi were added to carry out the 
pilot. In 2018, the negative list for market access will be implemented nationwide. At present, the 
negative list for market access is being revised with intense effort s.  WT/TPR/G/375 • China  
 
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  5.16.   Reform  of state -owned enterprises  has b een further advanced.  Mixed -ownership reform  has 
been accelerated, corporate governance structure of state -owned enterprises further improved, 
the system to report to the Standing Committee of National People 's Congress on situations of 
state assets manage ment established, and transparency of state assets management enhanced. At 
the end of 2016, over 68% subsidiaries of the enterprises supervised by the State -owned Assets 
Supervision and Administration Commission (SASAC) were already mixed -owned. From 2013 to 
2017, 34 enterprises supervised by SASAC were reorganized.  
5.17.   China has vigorously promoted the development of small and medium -sized enterprises 
(SMEs ) and private businesses. On 1 January 2018, the revised Law on Promotion of Small and 
Medium -sized Enterprises took effect. It aims to safeguard the level playing field for SMEs in line 
with their development.  
5.18.   Support to the SMEs, particularly micro -enterprises has been further strengthened. From 
1 January 201 7 to 31 December 2019, micro and small and medium -sized enterprises that may 
enjoy preferential enterprise income tax policies have been extended from those with an annual 
taxable income of no more than RMB 300 thousand to those of no more than RMB 500 tho usand, 
from 1 January 2018 to 31 December 2020, they have been further extended to those having an 
annual taxable income of no more than RMB 1 million. The preferential income tax policies they 
are entitled are that only 50% of their income will be calcula ted as taxable income, and the 
enterprise income tax rate applied will be 20% instead of 25%.  
5.19.   In addition to that, from 1 January 2018 to 31 December 2020, small -scale taxpayers of 
VAT with a monthly sale of no more than RMB 3 0 thousand  will continue to b e exempted from 
VAT. Also, effective from 1 May 2018, small -scale VAT taxpayers that may enjoy the 3% rate have 
been extended from those of industrial enterprises with an annual taxable sale of no more than 
RMB 500 thousand and those of commercial enterpri ses with an annual taxable sale of no more 
than RMB 800 thousand to both as long as their annual taxable sale is no more than 
RMB 5 million. Competitive business in the basic telecommunications sector, oil and gas 
exploration and development, national defe nse related science and technology and other sectors 
are also open to private capital.  
5.20.   China has continued its efforts to safeguard a fair and competitive market system. In 
June 2016, China issued guidelines on establishing a fair competition review mechan ism for the 
market system, which requires governments and their institutions to conduct fair competition 
review when formulating policies and measures and avoid adopting policies or measures that 
eliminate or stifle competition, so as to safeguard a unifie d, open and competitive market system 
nationwide.  
5.21.   In November 2016, the guidelines on improving the property rights protection system and 
protecting property rights in accordance with the law was published. It requires improving further 
the property right s protection system with fairness as its core principle to  ensure the rights and 
interests of economic entities under all forms of ownership are subject to law -based protection on 
an equal footing.  In November 2017, The Law against Unfair Competition  was amended to include 
new provisions against anti -competition behaviours through technical means on the Internet, and 
redefined trade secrets.  
5.3.5   Speeding up reform of fiscal and tax system s 
5.22.   Management over local government debts  has been tightened . On 1 Ja nuary 2015, the  new 
Budget Law  took effect , according to which  issuing local government bonds is the only legal way of 
debt financing by local governments. Debts of local state -owned enterprises are not  governmental 
debts  and shall be repaid by the enterpr ises themselves.  Local governments are not responsible 
for repayment. A capping mechanism was also established to set according to law up -limits to the 
size of local government debts. Reform of the scheme to share powers and expenditure 
responsibilities be tween the central and local governments has also moved forward  according to 
the requirement to establish a fiscal relationship between the central and local governments built 
upon clearly defined powers and responsibilities, appropriate financial resource allocation, and 
greater balance between regions . WT/TPR/G/375 • China  
 
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  5.23.   Business tax has been replaced with VAT in all sectors, and VAT reform further deepened. 
On top of the pilot replacement of business taxes with VATs in an all -round way in May 2016, 
business tax was finally abolished in November 2017. Structure of VAT rates has been further 
simplified. Starting from 1 July 2017, the VAT rate of 13% has been abolished, and VAT rates have 
been simplified to three levels  of 17%, 11% and 6%.  Starting from 1 May 2018, the VAT rate 
applied to manufacturing and other sectors has been lowered to 16% from 17%, and the rate for 
transportation, construction, basic -telecommunication and other services sectors as well as for 
agricultural and other goods has been lowered from 11 % to 10%.  
5.3.6   Further deepening reform of financial system  
5.24.   The market -based reform of interest rates continued to deepen. The capital regulation and 
transmission mechanism of the monetary policy was further enhanc ed. Improvements were also 
made to the market -based RMB exchange -rate regime, making the exchange rate more market -
oriented and flexible. Large  and medium commercial banks were prompted to set up inclusive 
financ e departments, and targeted cut in reserve requirement ratio was implemented for inclusive  
finance . Efforts were also made to strengthen the f unction of the deposit insurance system, and to 
push forward in order the development of private banks.  
5.25.   China has continued to explore the reform of the multi -tiered capital market , and to speed 
up the ca pital accounts opening up. Currently, overseas investors can invest in the Chinese 
securities market through various channels including  QFII, RQFII, Shanghai -Hong Kong Stock 
Connect, Shenzhen -Hong Kong Stock Connect, Bond Connect , and direct invest ment in the 
interbank bond market.  Overseas entities can also raise capital through issuing RMB bonds in the 
Chinese securities market.   
5.4  New development of China 's Economy  
5.4.1   Slower but stable economic performance with good growth momentum  
5.26.   China 's GDP in 2016 was RMB 74.4127 trillion, showing a growth of 6.7% over the previous 
year. GDP in 2017 was RMB 82.7122 trillion, up by 6.9% year -on-year, 0.2% higher than 2016. 
This is the first time since 2011  that a rise in growth rate was registered, and  also the first tim e 
that China 's GDP hit s RMB 80 trillion. In 2017, newly -created jobs exceeded 13 million. Per capita 
disposable income of urban and rural residents nationwide rose by 7.3% in real terms, higher than 
the per capita growth of GDP. The registered urban unempl oyment rate was 4.98%, a new low 
over the years. From 2013 to 2017, residents ' annual income increased by 7.4%  on average , 
outpacing the economic growth and creating the largest middle -income population  in the world . 
5.4.2   Major  changes in economic structure  
5.27.   In terms of sectoral  structure, the tertiary sector or service s sector has become a major 
driving force  of the economic growth, upholding China 's economic development along with the 
secondary or industry sector .  
5.28.   In 2016, the added value of the primary sector  reached  RMB 6.3671 trillion, up 3.3%; the 
added value of the secondary sector reached RMB 29.6236 trillion, up 6.1%; the added value of 
the tertiary sector reached RMB 38.4221 trillion, up 7.8% , and the proportion of the added value 
of the tertiary sector  in total added value wa s 51.6%.  
5.29.   In 2017, the added value of the primary sector reached RMB 6.5468 trillion, up 3.9%; the 
added value of the secondary sector reached RMB 33.4623 trillion, up 6.1%; the added value of 
the tertiary sector reached RMB 42.7032 trillion, up 8.0% , the proportion of the added value of the 
tertiary sector in to tal added value remained at 51.6%, and it contributed 58.8% of the economic 
growth.  
5.30.   So far as the demand structure is concerned, China 's economic growth, instead of being 
driven mainly by investment and exports  as in the past, is now being fuelled jointly by 
consumption, investment and exports. In 2017, final consumption expenditure, gross capital 
formation and net export of goods and services contributed 58.8%, 32.1% and 9 .1% to the GDP 
growth respectively.  WT/TPR/G/375 • China  
 
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  6  THE WAY FORWARD  
6.1.  Currently, continu ed recovery of the global  economy faces risks, and there are many factors 
that bring instability and uncertainty. The policy changes of major economies and their spill -over 
effects creat e uncertainty. China 's economy is in a pivotal stage for transforming its growth model, 
improving its structure, and fostering new drivers of growth.  
6.2.  China will stick to  the new vision of development, continue to explore  new methods to 
improve macro -regula tion, and make further headway in supply -side structural reform . China will 
accelerate the efforts to turn itself into an innovative country , deepen reforms in fundamental key 
areas, and take tough steps to forestall and defuse major risks , carry out targe ted poverty 
alleviation, and prevent and control pollution . China will vigorously pursue  a rural vitalization 
strategy, and implement  the coordinated regional development strategy. China  will actively expand 
consumption, promote effective investment, and strive to ensure and further improv e people 's 
wellbeing.  
6.3.  In the meant ime, China  will further expand  the scope  and raise the quality of its opening up, 
improve the structure, layout, institutions and mechanisms for opening up, so t hat opening up at a 
higher level will contribute  to the high-quality development.  
6.4.  Firstly, China  will further  ease market access. In manufacturing, China  has basically opened 
up the sector only with a small number of exceptions like automobiles, ships and aircraft . These 
excep tions now are also in a position to open wider . Going forward, China  will ease foreign equity 
restrictions in these industries, automobiles in particular. In services, financial services in 
particular, China  will accelerate the opening up of the insurance industry, relax restrictions on the 
establishment of foreign financial institutions in China, expand their business scope, and broaden  
areas of cooperation between Chinese and foreign financial markets.  
6.5.  Second ly, China  will continuously  perfect investment  environment, strengthen  alignment with 
international practices  and increase further transparency. In 2018, China  will complete  revision of 
the negative list for foreign investment and implement across the board the management system 
of pre-establishment n ational treatment plus a  negative list.  
6.6.  Thirdly, China  will continue to encourage normal technolog y exchanges and cooperation 
between  Chinese and foreign enterprises, and protect the lawful IPR s of foreign enterprises.  
6.7.  Fourth ly, China  will take the initiative to expand the imports. In November 2018, the first 
China International Import Expo  will open in Shanghai. China will also significantly lower the 
import tariffs for vehicles and other products and import more to meet the needs of the Chinese 
people . China  will accelerate  the negotiation process  to join the Government Procurement 
Agreement  of the WTO.  
6.8.  Since its accession to the WTO  and through continuous reform and opening up , China has 
established an economic and trade system in li ne with both its national conditions and 
international prevailing rules and practices . It has  greatly contributed to the development of 
China's open economy and its integration with the world economy. China is now the largest trading 
partner of over 120 co untries and regions. In the next five years, China will impor t US$8 trillion of 
goods, attract US$600 billion of foreign investment, invest US$750 billion overseas , and have 
travel abroad of 700 million person -times. These  will provide countries and region s around the 
world with a bigger  market, more capital, more products and more business  opportunities.  
6.9.  Meanwhile, China 's per capita income still ranks low, and nearly 30 million people are living 
under the national poverty line. Despite of th e economic achievements , the basic national 
conditions of China as a large developing country have not changed , and will not fundamentally 
change  in the near future . China in a relatively long period of time still faces arduous development 
tasks.  
6.10.   China is c losely linked with other countries and shares weal and woe in development. China 
will remain committed to peaceful development and will engage in global governance proactively, 
striving to build an open world economy. China will promote coordination and co operation among 
countries, deepen the friendship and common development, and enhance further unity and WT/TPR/G/375 • China  
 
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  cooperation with the developing world . China will continue to play its part as a responsible major 
developing country , and stands ready to work with all other countries and regions to build a 
community with a shared future for mankind.  
__________