WT/GC/W/749  
 
19 July 2018  
(18-4553) Page: 1/14 
General Council  Original: English  
 
 
CHINA AND THE WORLD TRADE ORGANIZATION  
COMMUNICATION FROM C HINA 
 
The following communication, dated 18 July 2018, is being circulated at the request of the 
delegation of China.  
 
_______________  
 
 
TABLE OF CONTENTS  
 
FOREWORD  ................................ ................................ ................................ ......................  2 
1   CHINA HAS FAITHFULLY  FULFILLED ITS WTO AC CESSION COMMITMENTS  .................  2 
2   CHINA FIRMLY SUPPORT S THE MULTILATERAL T RADING SYSTEM  ..............................  6 
3   CHINA 'S SIGNIFICANT CONTRI BUTION TO THE WORLD AFTER ACCE SSION 
TO THE WTO  ................................ ................................ ................................ .....................  8 
4   CHINA IS ACTIVELY AD VANCING OPENING -UP TO A HIGHER LEVEL  .........................  10 
CONCLUSION  ................................ ................................ ................................ .................  13 
 
 
 
 
 
 
 
_______________  
 
 
 
 
 
  WT/GC/W/749  
 
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  FOREWORD  
In 1978, China started the historic process of reform and opening -up. This is a glorious chapter in 
the development epic of the country and the nation composed by the Chinese people, recording 
the great journey of common progress of China and the rest of the world. It has not only 
profoundly changed the country, but also greatly influenced th e whole world. Over the past 
40 years, China has been adhering to the fundamental national policy of reform and opening -up 
and pursuing development with its door wide open. A model of all -round, multi -level, and wide -
ranging opening -up has gradually taken shape. China is closely connected with the outside wor ld 
and has made a significant contribution to the noble cause of global peace and development.  
 
In 2001, China acceded to the World Trade Organization (WTO). This was a milestone in China 's 
integration into economic globalization, marking a new historic st age of reform and opening -up. 
Since its accession to the WTO, China has been a strong advocate for free trade. China has 
comprehensively fulfilled its commitments to the WTO, substantially opened its market to the 
world, and delivered mutually beneficial a nd win -win outcomes on a wider scale. Through these 
efforts, China has lived up to its responsibility as a major c ountry.  
 
The multilateral trading system, with the WTO at its core, is the cornerstone of international trade 
and underpins the sound and orde rly development of global trade. China firmly observes and 
upholds the WTO rules, and supports the multilateral trading system that is open, transparent, 
inclusive and non -discriminatory. China has participated in all aspects of WTO work, made its voice 
heard and contributed its own proposals on improving global economic governance. China is an 
active participant, strong supporter and major contributor in t he multilateral trading system.  
 
Accession to the WTO has boosted China 's development and benefited th e rest of the world. 
Propelled by a new vision of development, the Chinese economy is transitioning from rapid growth 
to high -quality development. China has become a major stabilizer and driving force for the world 
economy. China stays committed to the str ategy of opening -up for win -win results, vigorously 
promotes the Belt and Road Initiative, and shares opportunities and benefits with other countries 
and their people while developing China itself, enhancing global wellbeing and common prosperity.  
 
At the historic starting point of a new era, China 's door of opening -up will not be closed and will 
only open even wider. Opening -up was key to China 's economic growth over the past 40 years. In 
the same vein, high -quality development of China 's economy in the fu ture can only be achieved 
with greater openness. China will continue adhering to the fundamental national policy of reform 
and opening -up. China will more proactively embrace economic globalization, adopt policies to 
promote high -standard liberalization an d facilitation of trade and investment, and work together 
with other countries to build a community of shared future with extensive converging interests and 
a high degree of interdependence.  
 
The Chinese government is publishing this white paper to give a  full account of China 's fulfillment 
of its WTO commitments, to explain China 's principles, stances, policies, and propositions 
regarding the multilateral trading system, and to describe China 's vision and actions in advancing 
higher -level reform and openi ng-up. 
 
1  CHINA HAS FAITHFULLY  FULFILLED ITS WTO AC CESSION COMMITMENTS  
1.1.  Since China acceded to the World Trade Organization in 2001, it has made continued efforts 
to improve its socialist market economy system, further align its policies with multilateral tra de 
rules in all areas, honor its commitments on opening trade in goods and services, and strengthen 
intellectual property rights (IPR) protection. Remarkable improvements have been made in 
enhancing the stability, transparency, and predictability of its op ening -up policies. China has 
contributed significantly to the effective operation of the multilateral trading system.  
1.1  Improving the socialist market economy and relevant legal system  
1.2.  Consistently reforming to develop the socialist market economy.  China has 
accelerated efforts to improve the socialist market economy system and strengthen the market 
system. This has involved reorganizing the relationship between the government and the market, 
letting the market play the decisive role in resource all ocation and the government play its role WT/GC/W/749  
 
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  better. Education campaigns on WTO rules have been extensively rolled out, raising public 
awareness of the market, competition, rules and the concept of rule of law.  
1.3.  Continuously improving the legal system of social ist market economy.  Upholding the 
rule of law, China has faithfully observed and implemented WTO rules, improved its laws and 
regulations on market economy, and built up a legal system in line with multilateral trade rules. 
After its accession, China launc hed major efforts to review and revise relevant laws and 
regulations, involving 2,300 laws, regulations and departmental rules at central government level, 
and 190,000 policies and regulations at sub -central government levels, covering trade, 
investment, I PR protection, etc. In 2014, China issued an official document on furthering trade 
policy compliance with WTO rules, requiring government at all levels to assess proposed trade 
policies in accordance with WTO agreements and China 's commitments. In 2016, Ch ina set up a 
legality review mechanism to examine normative documents, enhancing the transparency of and 
public participation in policy development.  
1.2  Fulfilling commitments on trade in goods  
1.4.  Substantively reducing import tariffs. By reducing import costs to  boost trade, China has 
shared its development dividend and growing markets with the rest of the world. By 2010, China 
had fulfilled all of its tariff reduction commitments, reducing the  average tariff level from 
15.3 percent in 2001 to 9.8 percent. It low ered the average tariff rate of manufactured goods from 
14.8 to 8.9 percent. It cut the average tariff rate of agricult ural products from 23.2 to 
15.2 percent, about one fourth of the global average and far lower than those imposed by the 
WTO's developing Members  (56 percent) and developed Members  (39 percent). China 's maximum 
bound tariff rate of agricultural products is 65 percent, while the corresponding rates of the United 
States, the European Union and Japan are 440, 408 and 1,706 percent respectively.  
1.5.  Significantly lowering non -tariff barriers. To increase transparency and facilitate trade, 
China has reduced unnecessary trade restrictions. By January 2005, in accordance with its 
commitments, China had eliminated import quotas, import licenses, specific  import tendering 
requirements and other non -tariff measures with regard to 424 items such as automobiles, 
machinery and electronics products, and natural rubber. It introduced tariff rate quota 
administration for important bulk commodities, i.e. wheat, co rn, rice, sugar, cotton, wool, wool 
top, and chemical fertilizers.  
1.6.  Liberalizing the right to trade. To diversify entities and stimulate their enthusiasm to 
engage in foreign trade, in July 2004 China replaced approval system with registration system for 
foreign trade authorization, releasing immense vigor of private businesses which has led to a surge 
of foreign trade in the private sector. With rapid growth and an increasing share of the market, 
private companies have become important actors in China 's foreign trade. In 2017, foreign trade 
by private companies and foreign -invested enterprises (FIEs) accounted for 83.7 percent of the 
country 's total trade volume, up from 57.5 percent in 2001. In 2017, Chinese private companies, 
which take the largest share  of China's exports, contributed 46.6 percent of all goods and services 
exported.  
 WT/GC/W/749  
 
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  Share of State -Owned Enterprises (SOEs), Private Companies, and Foreign -Invested 
Enterprises in Total Imports and Exports  
 
Source:  China Customs Statistics.  
 
 
1.3  Fulfilling co mmitments on trade in services  
1.7.  Extensively opening up the services market.  China has striven to boost the services 
industry and increase its share of contribution to the economy. Of the 160 services sub -sectors 
under the 12 -sector WTO classification, Chin a committed to ope ning up 100 sub -sectors under 
9 sectors, a level approximate to the average 108 sub -sectors committed by the developed 
Members  of the WTO. By 2007, China had honored all of its commitments on trade in services.  
1.8.  Continuously reducing restr ictions. China has step by step lowered the threshold for 
foreign investment to enter the services sectors in China, lifted geographical and quantitative 
restrictions on services according to schedule, and constantly broadened the business scope for 
foreig n investment in the services sectors. China has permitted wholly foreign -owned enterprises 
in 54 sub -sectors such as courier, banking and property insurance services, allowed foreign 
majority ownership in 23 sub -sectors such as computer and environment ser vices, and accorded 
national treatment to foreign capital in 80 sub -sectors such as telecommunication, rail transport, 
and tourism services. In 2010, foreign direct investment (FDI) flowing into China 's services 
industry surpassed that into manufacturing i ndustry for the first time. In 2017, FDI in the services 
industry made up 73 percent of all FDI in China.  
1.4  Fulfilling commitments on IPR protection  
1.9.  Strengthening IPR protection on China 's own initiative. Strengthening IPR protection is 
the centerpiece for i mproving the property rights protection system, and it would provide the 
biggest boost to the competitiveness of the Chinese economy. It not only serves China 's own 
development needs, but also helps cultivate a business environment that is law -based, 
internationalized and business -friendly. China encourages technological exchanges and 
cooperation between Chinese and foreign enterprises, and protects the lawful IPR owned by 
foreign enterprises in China. At the same time, we hope foreign governments will also  improve 
protection of Chinese IPR.  
1.10.   Building a full -fledged legal system on IPR protection. Since acceding to the WTO, 
China has formulated and improved its laws and regulations on IPR protection, set up IPR working 
mechanisms with many countries, drawn up on advanced international legislative practices, and 
built an IPR legal system that conforms to WTO rules and suits national conditions of China. The 
amended Trademark Law sets up a system of punitive damages. The amended Anti -Unfair 
Competition Law improv es the protection of trade secrets, identifies act of confusion, introduces 
the concept of sign and expands the scope of protection for sign. Currently China is working on 
amending the Patent Law and the Copyright Law.  
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  1.11.   Continuously strengthening law enforc ement on IPR protection.  China has enhanced 
the dominant role of the judiciary in IPR protection to significantly raise the cost for offenders and 
fully unlock the deterrent effect of relevant laws. The State Intellectual Property Office has been 
restructu red to strengthen law enforcement. China has set up three IPR courts in Beijing, 
Shanghai and Guangzhou, and special judicial organs at 15 intermediate courts in Nanjing, 
Suzhou, Wuhan, Xi 'an and other cities to handle cross -regional IPR cases, including t hose related 
to patents. China strengthened administrative law enforcement on intellectual property protection 
and launched special campaigns targeting outstanding problems, which effectively protected 
intellectual property rights. Such campaigns include "Convoy Campaign " for protecting patent 
rights, the "Sword -net Campaign " for combating online infringement and piracy, the "Sweeping 
Campaign " for cracking down pornography and illegal publication in the copyright field, the 
"Network Sword Campaign " for combating IPR infringements and counterfeits and the "Sword 
Actions on Quality Control " for cracking down counterfeits.  
1.12.   Attaining notable results in IPR protection.  Since 2001, intellectual property royalties 
paid by China to foreign right holders has  registered an annual growth of 17 percent, reaching 
USD28.6 billion in 2017. In 2017, China received 1.382 million invention patent applications, 
ranking the first in the world for the seventh consecutive year. Nearly 10 percent of the applicants 
were for eign entities and individuals. Invention patent applications filed by foreign entities and 
individuals in China reached 136,000, growing by threefold compared with 33,000 in 2001. 
According to the World Intellectual Property Organization, 51,000 patent app lications filed from 
China through the Patent Cooperation Treaty were accepted in 2017, second only to the US.  
1.5  Fulfilling commitments on transparency  
1.13.   Providing a solid legal basis.  The Legislation Law, the Regulations on Procedures for 
Formulation of Admin istrative Regulations, and the Regulations on Procedures for Formulation of 
Rules explicitly provide for the solicitation of public comments on draft laws, administrative 
regulations and rules. The legislative affairs commission of the Standing Committee o f the National 
People 's Congress regularly publishes the Laws of the People 's Republic of China  (English edition); 
the State Council 's legislative affairs organ regularly publishes the Laws and Regulations of the 
People 's Republic of China Governing Foreig n-Related Matters (Chinese and English bilingual 
edition); and the Ministry of Commerce regularly publishes trade policies in China Foreign Trade 
and Economic Cooperation Gazette . 
1.14.   Comprehensively implementing the WTO notification obligations.  China has 
submitted notifications to the WTO on a regular basis concerning the amendment, revision and 
implementation of relevant laws, regulations and measures as required by the WTO. By 
January  2018, China had submitted over one thousand notifications covering areas such as central 
and sub -central subsidy policies, agriculture, technical regulations, standards, conformity 
assessment procedures, state trading, trade in services, and IPR laws and regulations.  
1.6  Making tremendous efforts to honour  its commitments  
1.15.   China made extensive and profound commitments on opening up when entering the WTO. 
Domestic companies were confronted with international competition, and most industries faced 
great difficulties. Rising up to these challenges, Chinese companies took the initiati ve to promote 
structural readjustment, participated in the global value chains and significantly increased their 
international competitiveness.  
Box 1. The Automobile Industry 's Costly Adjustment  
Before WTO accession, China 's automobile industry lagged far behind developed Members  in terms 
of production scale, product quality, manufacturing technology, R&D capacity, costs and prices, 
and brand development. After accession, China faithfully fulfilled its commitments to slash 
customs duties on automobiles. By 1 July 2006 when the transitional period ended, China had 
lowered the duties on imported automobiles from 100 to 25 percent. China 's auto industry was hit 
hard by cheaper imported cars and mounting competition. For e xample, China imported 
USD37.91  billion worth of passenger cars with engine displacement at 1.5 -3L in 2017, compared 
to USD890 million in 2001. This represented an annual growth of 26.4 percent, with the auto trade 
deficit surging from USD870 million to USD34.35 billion. Facing the pressure, Chi na's auto industry WT/GC/W/749  
 
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  took the initiative to carry out large -scale restructuring, opened wider to foreign capital, raised its 
levels of technology, management and services amidst fierce competition, and steadily penetrated 
the global value chains.  
 
 
2  CHINA FI RMLY SUPPORTS THE MU LTILATERAL TRADING S YSTEM  
2.1.  The multilateral trading system with the WTO at its core is the cornerstone of international 
trade, and has been playing a pivotal role in promoting global trade and building an open world 
economy. Since its ac cession to the WTO, China has firmly supported the multilateral trading 
system, participated in all aspects of WTO work. It called upon the WTO to focus more on the 
concerns of developing Members , opposed unilateralism and protectionism, upheld the authori ty 
and efficacy of the multilateral trading system, and made concerted efforts with other Members  in 
supporting the WTO to play a greater role in economic globalization.  
2.1  Liberalizing and facilitating trade and investment  
2.2.  Participating fully in the Doha Ro und negotiations.  China has submitted or co -
sponsored more than 100 negotiation proposals, helped secure agreement on trade facilitation and 
export competition in agricultural products, and promoted the continuous improvement of the 
multilateral trading sy stem. In 2015, China became the 16th WTO member to ratify the Trade 
Facilitation Agreement (TFA). During its G20 presidency in 2016, China encouraged a number of 
countries to complete their domestic ratification procedures of the TFA, prompting the agreeme nt's 
entry into effect at an early date.  
2.3.  Promoting plurilateral trade liberalization.  As a developing country, China has actively 
participated in plurilateral liberalization initiatives and made important contributions to relevant 
talks. It accepted the In formation Technology Agreement (ITA) upon accession, subsequently 
participated in the negotiations to expand its coverage, and encouraged relevant parties to reach 
agreement on eliminating tariffs of 201 information technology products. As one of the initi ators of 
the negotiations on the Environment Goods Agreement, China always participated in relevant 
discussions in a constructive manner, and contributed to the important consensus reached at the 
G20 Summit in Hangzhou. In 2007, China started the negotiati on on its accession to the 
Agreement on Government Procurement and has been m aking great efforts ever since.  
2.4.  Mobilizing support for discussing new issues in the WTO.  China has encouraged the 
WTO to respond to and discuss new top ics of general interest to the M embers such as investment 
facilitation, micro, small and medium -sized enterprises (MSMEs), and e -commerce. China initiated 
"Friends of Investment Facilitation for Development (FIFD) " and sponsored the Joint Ministerial 
Statement on Investment Facilita tion for  Development signed by over 70 M embers. China joined 
the "Friends of Micro, Small and Medium -sized Enterprises ", and shared with other M embers its 
proposals that support MSMEs. As an advocate of multilateral discussions on e -commerce in the 
WTO, Ch ina joined "Friends of E -commerce for Development (FED) ", shared its experienc es and 
helped other developing M embers benefit from e -commerce.  
2.5.  Faithfully implementing the Trade Facilitation Agreement. As a developing member, 
China has actively promoted the implementation of TFA. It has set up the National Committee on 
Trade Facilitation to coordinate the efforts of relevant government agencies to enhance trade 
facilitation. By 2017, China 's provinces (as well as autonomous regions and municipalities directly  
under the central government) had all established a joint committee mechanism for trade 
facilitation in their respective jurisdictions. Regarding China 's TFA commitments, 94.5 percent of 
all commitments fall into Category A (immediately implemented upon e ntry into force of the TFA), 
and only four items belong to Category B (implemented after a transitional period following the 
TFA's entry into force). China will honor its promise and implement all the Category B measures 
following a transitional period of three years after entry into force of the Agreement.  
2.2  Safeguarding the dispute settlement mechanism  
2.6.  Safeguarding  the effective operation of the dispute settlement mechanism.  The WTO 
dispute settlement mechanism has played a vital role in maintaining the pre dictability of 
international trade and the stability of the multilateral trading system. China has actively WT/GC/W/749  
 
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  participated in the negotiations on improving the Understanding on Rules and Procedures 
Governing the Settlement of Disputes and supports the indepe ndence and impartiality of the WTO 
Appellate Body. Desp ite the attempt of certain WTO M ember to obstruct the appointment of 
members of the Appellate B ody, China joined more than 60 M embers in submitting a proposal on 
starting the selection process at the e arliest possible date.  
2.7.  Properly handling  trade disputes with other WTO M embers.  China supports WTO 
Members to solve their trade disputes within the WTO dispute  settlement mechanism. By 
April 2018, China had brought 17 disputes to the WTO, of which 8 had be en concluded. Meanwhile, 
China had been complained against in 27 disputes, of which 23 had been concluded. By lodging 
complaints in the WTO, China redressed other Members ' violation of obligations under the covered 
agreements, and defended its own trade in terests as well as the authority of WTO rules. China also 
actively defended the cases against it, respected the WTO rulings, and made adjustments to its 
measures according to WTO rules. Up to now, none of the complainants has requested for 
retaliation agai nst China.  
2.3  Fully participating in trade policy review  
2.8.  Attaching great importance to trade policy monitoring by other WTO Members . The 
WTO trade policy review (TPR) mechanism is effective in enhancing the transparency of the 
multilateral trading system. Chi na places great emphasis on the TPR process. Having undergone 
six TPRs on itself, China is preparing for the seventh one in July 2018. In an open and frank 
manner, China has briefed the WTO membership on its macro -economic, trade and investment 
policies, a nd listened attentively to their comments and suggestions on China 's reform and 
opening -up. Other WTO Members  applaud China 's active participation and regard China as an 
impressive example in reinforcing the role of TPR in monitoring commitments, ensuring compliance 
and enhancing openness.  
2.9.  Urging other WTO Members  to abide by multilateral trade agreements.  Since its 
accession to the WTO, China has participated in nearly 300 TPRs on other Members . It raised 
thousands of written questions and trade concerns to the Members  under review, urged them to 
abide by the WTO rules and their commitments, and played a positive role in safeguarding and 
strengthening the TPR mechanism.  
2.4  Vigorously supporting the  integration of developing Members  into the multilateral 
trading system  
2.10.   Supporting the WTO to focus on development. An important objective of the WTO is to 
ensure that developing Members , especially least -developed country Members , benefit from 
internation al trade and boost their economic growth. As the largest developing country, China 
understands the difficulties of developing Members  to benefit from the global value chains and 
participate in international economic and trade governance. China worked hard to make trade an 
enabler of the 2030 Agenda for Sustainable Development.  
2.11.   Providing pragmatic and effective support to other developing Members . China has 
reinforced its aid to other developing Members , especially least -developed country Members , to 
bridge the South -North development gap. By March 2018, it had accorded zero tariff treatment on 
97 percent of all tariff lines to 36 least -developed countries (LDCs) that have diplomatic relations 
with China and completed exchange of notes. Responding to the "Aid for Trade " initiative, China 
has contributed multilateral and bilateral resources to help other developing Members , especially 
least-developed country Members , with infrastructure construction, professionals training, 
productivity improvement, as well as trade and investment d evelopment. It has donated 
USD1  million to the WTO Trade Facilitation Agreement Facility to assist the implementation of the 
TFA. The LDCs and Accessions Program, established by China in 2011, has helped six LDCs accede 
to the WTO. Si nce 2017, China has strengthened cooperation with the WTO and other international 
organizations under the South -South Cooperation Assistance Fund, and carried out cooperative 
projects in "Aid for Trade " to help other developing Members  benefit from global value chains.  WT/GC/W/749  
 
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  2.5  Firmly opposing unilateralism and protectionism  
2.12.   Unilateralism and protectionism run counter to the fundamental principles of the 
WTO.  The multilateral trading system is a historic choice that follows the trend of global economic 
development. The WTO advocates the principles of rules, openness, transparency, inclusiveness 
and non -discrimination, and it will remain the main channel to address global trade issues. China 
explicitly opposes unilateralism and protectionism. Unilateralism goes agains t the law of the 
market and international rules, causes injury to others but ends up defeating oneself. Pursuing 
protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that 
dark room will also block light and air. On ly through equal consultation and joint efforts can win -
win results be achieved for all.  
2.13.   Pursuing free trade through platforms for multilateral cooperation.  China advocates 
solving international trade problems through cooperation, dialogue and consultation  on an equal 
footing. During the 22nd APEC Economic Leaders ' Meeting, the G20 Hangzhou Summit, and the 
BRICS Xiamen Summit, all hosted by China, the country increased coordination with all parties 
concerned, and secured statements on opposing trade protect ionism in the outcome documents of 
these summits. When attending the Belt and Road Forum for International Cooperation, the Boao 
Forum for Asia, and the World Economic Forum, Chinese leaders repeatedly expressed their firm 
support for the multilateral trad ing system and an open world economy. In the WTO, the vast 
majority of Members  echoed China 's opposition to unilateralism and protectionism.  
3  CHINA 'S SIGNIFICANT CONTRI BUTION TO THE WORLD AFTER ACCESSION TO T HE 
WTO  
3.1.  China steadfastly pursues a mutually beneficial opening -up strategy, upholds the WTO 's 
principle of free trade, and has lived up to its responsibilities as a major country in the process of 
opening -up. From its WTO accession in 2001 to the Belt and Road Initiative in 2013, China has 
embraced the world with open arms, made a significant contribution to promoting international 
trade and increasing global wellbeing, and become a key anchor and driver for the world economy.  
3.1  Boosting world economic recovery and growth  
3.2.  Since its accession to the WTO , China has accelerated its reform and opening -up process and 
economic growth. China 's development is a forceful driver of global economic growth.  
3.3.  In 2016, China 's GDP accounted for 14.8 percent of the world total, up by 10.7 percentage 
points over 2001, c alculated at exchange rates. Since 2002, China 's contribution to global 
economic growth has approached 30 percent on average. The Chinese economy has become a 
major engine for globa l economic recovery and growth.  
3.4.  China has quickened its pace in promoting n ew industrialization, IT application, urbanization, 
and agricultural modernization, created enormous opportunities for consumption and investment, 
and generated more jobs for the world. According to a report released by the International Labor 
Organization , "Effects of China on the Quantity and Quality of Jobs in Latin America and the 
Caribbean ", China created 1.8 million jobs for Latin America and the Cari bbean region from 1990 
to 2016.  
3.5.  China 's rapid development has made tremendous contributions to the cau se of global poverty 
reduction. Over the past 40 years of reform and opening -up, the Chinese people have emerged 
from scarcity to abundance and from poverty to moderate prosperity. According to current UN 
standards, more than 700 million Chinese people hav e been lifted out of poverty, accounting for 
more than 70  percent  of the global total over the same period. This represents the largest 
contribution to poverty reduction in the world.  
3.2  Foreign trade development benefiting the world  
3.6.  Since China 's entry into the WTO, China 's foreign trade has maintained sustained 
development, benefiting more than 1.3 billion Chinese and other peoples across the world.  WT/GC/W/749  
 
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  3.7.  Confronted with unprecedented difficulties and challenges including the global financial crisis 
in 2008, China  has taken effective measures to stabilize and revitalize its foreign trade. According 
to WTO statistics, China 's imports accounted for 10.2 percent of the world total merchandise 
import in 2017, and its exports 12.8 percent, making China a major trade par tner of more than 
120 countries and regions. China 's exports have provided high -quality and inexpensive products to 
businesses and people around the world. From 2001 to 2017, China 's imports increased by an 
annual average of 13.5 percent, 6.9 percentage po ints higher than the global average; and China 
has become the world 's second largest importer. Since 2009, China has been the largest export 
market for the LDCs, and absorb ed 20 percent of their exports.  
3.8.  China 's services imports increased from USD39.3 bill ion in 2001 to USD467.6 billion in 2017, 
up by an annual average of 16.7 percent, and accounting for nearly 10 percent of the world total. 
Since 2013, China has been the world 's second largest service importer, making significant 
contributions to stimulati ng consumption, creating jobs and boosting economic growth in the 
exporting countries. Taking tourism services as an example, China has been the world 's largest 
source of outbound tourists for many years in a row. In 2017, outbound tourist trips made by 
Chinese citizens exceeded 130 million person -times, generating USD115.29 billio n of overseas 
tourism spending.  
3.9.  China 's innovation in trade models has also given new impetus to world trade growth. Cross -
border e -commerce and other new types and modes of forei gn trade have flourished in China, 
providing an ever -expanding market to its trading partners. In 2017, the value of imported and 
exported goods in cross -border e -commerce checked and released by China Customs totaled 
RMB90.24 billion, up by 80.6 percent o n yearly basis, of which imports stood at RMB56.59 billion, 
up by 120 percent compared with the previous year.  
3.3  Two-way investment benefiting all countries  
3.10.   China has been promoting the establishment of a fair, equitable and transparent system of 
international trade and investment rules to boost the orderly flow of production factors, efficient 
resources allocati on and full market integration.  
3.11.   China has proactively attracted foreign institutions and individuals to invest and develop in 
China. Since  1992, China has consistently topped the list of FDI recipients among developing 
countries for 26 years consecutively. After China 's accession to the WTO, its FDI increased from 
USD46.88 billion in 2001 to USD136.32 billion in 2017, up by an annual average  of 6.9 percent. 
FIEs have shared the benefits of China 's economic development, while helping improve the quality 
and performance of China 's economy. According to the "2018 China Business Climate Survey 
Report " by the American Chamber of Commerce in China (AmCham China), nearly 60 percent of 
the interviewed enterprises ranked China as a top three investment priority; some 74 percent of 
the AmCham China member enterprises plan to expand their investments in China in 2018, the 
highest in recent years, and one  third of the interviewed enterprises plan to increase their 
investments in China by over 10 percent. According to the "Business Confidence Survey 2018 " by 
the European Union Chamber of Commerce in China, more than half of its member enterprises 
plan to ex pand their presence in China. In 2017, newly founded FIEs in China reached 35,652, 
registeri ng an increase of 27.8 percent.  
3.12.   China 's outward investment cooperation has developed in a sustained, sound, and orderly 
way. In terms of annual flow of outward dire ct investment (ODI), China 's world ranking rose from 
the 26th place after its accession to the WTO to the third in 2017. China 's outward investment 
cooperation has accelerated technological progress in the host countries, advanced their economic 
developmen t, improved their people 's well-being and created many jobs.  
3.4  Providing public goods to the world  
3.13.   China receives support from the international community in its own development process 
and stands ready to provide more public goods to the world. China is committed to building an 
open platform of cooperation, upholding and growing an open world economy, and working 
together with other countries to build a broad  community of shared interests.  WT/GC/W/749  
 
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  3.14.   Proposing the Belt and Road Initiative.  In the face of difficultie s in world economic 
development, China put forward the Belt and Road Initiative in 2013. While the proposal was 
initiated by China, the opportunities and achievements belong to the world. The Belt and Road 
Initiative plays an important role in promoting in -depth cooperation and common development 
between countries and regions, upholding and growing an open world economy, making economic 
globalization open, inclusive, balanced, win -win and beneficial to all and advancing the building of 
a community with a sh ared future for mankind.  
3.15.   Since 2013, more than 80 countries and international organizations have signed cooperation 
agreements with China. The in -depth and practical cooperation between China and relevant 
countries has achieved fruitful results. From 2013 to 2017, the total value of China 's trade with 
other Belt and Road countries exceeded USD5 trillion, and total investment by Chinese enterprises 
in these countries exceeded USD70 billion. By the end of 2017, Chinese enterprises had set up 75 
overseas econo mic and trade cooperation zones in relevant countries, contributed more than 
USD1.6 billion taxes to the host countries and created 220,000 local jobs. Within three years 
starting from 2018, China will provide RMB60 billion worth of aid to the developing c ountries and 
international organizations participating in the Belt and Road Initiative, with a view to developing 
more proj ects to improve people 's lives.  
3.16.   Hosting the China International Import Expo. Initiated by China, the  China 
International Import Expo (CIIE) will bring together multiple international organizations and more 
than 100 countries. It is an international public product that promotes inclusive and mutually 
beneficial development around the globe. The inaugural session o f CIIE will be held in 
November  2018. Hosting the CIIE  is an important decision made by China to promote a new round 
of high -level opening -up, a major policy measure of China to further open its market to the world, 
and a concrete action by China to support economic globalization and trade liberalization. In the 
coming 15 years, China is expected to import USD24 trillion worth of goods. The CIIE will provide 
new export opportunities for the world, build a new platform for other countries and regions to 
share China 's development dividends, and bring more dynami sm to world economic growth.  
4  CHINA IS ACTIVELY AD VANCING OPENING -UP TO A HIGHER LEVEL  
4.1.  Fulfilling China 's WTO commitments has never been the end point of its opening -up. In the 
face of the overwhelming trend of economic globalization and its winding path, China keeps pace 
with the times, takes firm steps to expand opening -up, and makes continuous efforts to open up in 
a more comprehensive, profound and diversified way, with a view to achieving greater mutual 
benefit and win -win outcomes.  
4.1  Promoting balanced development of trade  
4.2.  China pursues a trade strategy of mutual benefit, win -win, diversification and balanced 
development. It endeavours  to raise the quality and added -value of its exports, proactively 
increase imports, and better integrate into the global value chains. China never deliberately 
pursues trade surplus in goods. At the same time, China takes an objective view towards existing 
trade deficit in services. The country always welcomes imports that diversify market supply, 
improve people 's quality of  life, and upgrade its industrial structure. In recent years, on top of its 
commitments to the WTO, China has self -initiated significant reductions to import tariffs on an 
interim basis for multiple times. According to the WTO, China 's trade -weighted avera ge import 
tariff rate had fallen to 4.4 percent in 2015, only 1.5 to 2 percentage points higher than those of 
developed economies such as the US and the EU. By the end of 2017, China had reduced tariffs on 
more than 900 tariff lines. At the 2018 Boao Forum  for Asia Annual Conference, China announced 
plans to further reduce import tariffs and to import more high -quality, distinctive products that 
meet the strong demand of the Chinese people.  
Box 2. China Takes Concrete Action to Expand Imports  
At the Boao Fo rum for Asia Annual Conference held in April 2018, China announced plans to 
increase imports. It has since taken effective measures to put its plans into action.  
 
From 1 May 2018, China was to eliminate import tariffs on all common drugs including cancer 
drugs, alkaloid -based drugs that can treat cancer, and imported traditional Chinese medicine. All 
imported cancer drugs are now exempted from tariffs.  WT/GC/W/749  
 
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  From 1  July 2018, China is to reduce the most -favoured -nation (MFN) tariffs for automobiles from 
25 perce nt and 20 percent to 15 percent, and for auto parts from 25 percent to 6 percent. As a 
result, China 's average MFN rates will have fallen to 13.8 percent for automobiles and 6 percent 
for auto parts.  
 
From 1  July 2018, China is to cut MFN tariffs for 1,449  consumer products from an average MFN 
rate of 15.7 percent to 6.9 percent, representing an ave rage reduction of 55.9 percent.  
 
The country will further increase imports of goods and services to meet the rising needs of its 
consumers and to enhance the quality of its economic development. This will also boost economic 
growth and employment in other countries and regions.  
 
The aforementioned measures for reducing tariffs and expanding imports will provide abundant 
supplies to meet diverse domestic demand and promote China 's supply -side structural reform and 
industrial restructuring and upgrading.  
 
4.2  Facilitating international trade  
4.3.  China 's efforts to implement the WTO Trade Facilitation Agreement, which entered into force 
in February 2017, have resulted in impressive improvement in China 's trade facilitation. The 
average time for customs clearance has been reduced to less than 20 hours for imports and less 
than two hours for exports. China has accelerated the establishment of a single window for 
internationa l trade. By the end of 2017, the China International Trade Single Window had been 
connected to 11 authorities and agencies responsible for border control and covered basically all 
major import and export procedures. This one -stop system enables traders to use a single entry 
point to declare freight and taxes with a single submission of documents, and track the results 
after a single joint inspection by the participating authorities. It has accelerated the modernization 
of China 's port management. China will  further optimize supervision and management approaches, 
reform port administration regime and streamline procedures and reduce costs for import and 
export, to create a more business -friendly environment at the port.  
4.3  Substantially widening market access fo r foreign investment  
4.4.  China has adopted a foreign investment administration model of pre -establishment national 
treatment plus negative list. This move marks an institutional reform in response to new 
developments in economic globalization and changes in in ternational rules for investment. In 
September 2016, the Standing Committee of the National People 's Congress amended four laws 
including the Law on Foreign Invested Enterprises. For those foreign -invested enterprises not 
subject to the special administrat ive measures on access to foreign investment (the negative list), 
their establishment and changes are now administered by a "filing for record " approach instead of 
the examination and approval system. In the first half of 2018, revision of the negative lis t for 
foreign investment was completed and the "Notice of the State Council on Measures for Using 
Foreign Investment Actively and Effectively to Promote High -Quality Economic Development " was 
issued to further widen market access considerably. China is making efforts to steadily liberalize its 
financial sector, constantly open up the services industry, and deepen the opening -up of 
agricultural, mining and manufacturing sectors.  
4.5.  As regards the shipbuilding industry, China will lift foreign equity caps for companies engaged 
in the design, manufacturing and repair of vessels in 2018. Moreover, China will lift foreign equity 
caps on airplane manufacturing of trunk airliners, regional jets, util ity aircrafts, helicopters, drones 
and lighter -than-air aircrafts. In the automobile industry, China will remove foreign equity caps on 
manufacturing of special -purpose vehicles and new -energy vehicles, and phase out those on all 
automotive ventures over t he next five years.  WT/GC/W/749  
 
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  Box 3. China Further Opens up Its Financial Sector to Foreign Investment  
Since its accession to the WTO, China has advanced reform of its financial system and pushed the 
opening of its financial market into further depth and width.  
 
From the end of 2017, China has announced a series of new measures to open up its financial 
sector, to lower the threshold for market access and expand the business scope of foreign 
investors, including:  
• Lifting market access restrictions on bank card clearin g institutions and non -bank payment 
institutions, easing restrictions on credit rating services by foreign financial services 
companies, and granting national treatment to foreign credit information service suppliers;  
• Removing foreign equity caps on banks and financial asset management companies, and 
allowing foreign banks to set up both branches and subsidiaries in China;  
• Cancelling  the requirement that foreign insurers must have a representative office in China 
for two years before they can establish comm ercial presence, allowing eligible overseas 
investors to engage in insurance agency and insurance assessment businesses, and lifting 
restrictions on the business scope of foreign invested insurance brokerage companies;  
• Raising foreign equity cap to 51 percent in securities, fund management, futures, and life 
insurance companies, and removing the limitations after three years;  
• Encouraging foreign investment in financial services in the banking sector, including trust, 
financial leasing, auto finance, cur rency brokerage, and consumer finance; and  
• Applying no cap on foreign equity for new financial asset investment companies and 
wealth management companies sponsored and incorporated by commercial banks.  
• These measures will open up China 's financial sector f ar beyond China 's commitments 
under the WTO. In the future, China will take further steps to open up its financial industry 
and develop a more open financial system that is internationally competitive and 
commensurate with China 's economic scale and influe nce. 
 
4.4  Creating a more attractive environment for foreign investment  
4.6.  China makes efforts to create a favorable and orderly investment environment, ease market 
access for foreign investment, further simplify the administrative procedures on access to foreig n 
investment, build pilot free -trade zones (FTZs) with high standards, and better promote and 
protect foreign investment. China works to improve an investment climate that conforms to 
international rules, facilitates foreign investment and is based on the rule of law, and to make its 
market more transparent and better regulated. These efforts will help attract more foreign 
investment into China and ensure its effective utilization.  
4.7.  By March 2018, all items for non -administrative license approval had been ca ncelled, and 
items for administrative approval had decreased by 44 percent as compared to March 2013. The 
number of investment projects by enterprises subject to verification of the central government had 
been reduced by 90 percent. China has comprehensive ly reformed its systems for business 
registration and registered capital, rolled out the subscribed capital registration system, and 
revoked 87 percent of the items subject to examination and approval preceding the industrial and 
commercial registration. T he time for business establishment has been shortened by at least one 
third. In order to alleviate the burden on businesses, China is advancing the reform of the negative 
list for market access, promoting the concept of "everything that is not forbidden is  allowed ", and 
reinforcing the impartiality of law enforcement.  
4.8.  China will continue with the reform to streamline administration, lower taxes, and reduce 
fees. China will further align its business environment with international economic and trade rules, 
enhance policy transparency, strengthen the protection of property rights, advance the rule of law, 
encourage competition and oppose monopoly. The enactment of the Law on Foreign Investment 
will be expedited to build a legal system for foreign investment th at meets the needs of reform and 
opening -up in the new era, elevate opening -up to a higher level, push for deeper reform in the 
foreign investment administration system, and protect the legitimate rights and interests of foreign 
investment and foreign inve stors. The threshold will be lowered for foreign talents to work and 
start their own businesses in China. In addition, China will improve various development zones, 
build the pilot FTZs with high standard and good quality, and explore the construction of f ree-trade 
ports with Chinese characteristics.  
 WT/GC/W/749  
 
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  4.5  Regulating outward investment  
4.9.  China encourages its enterprises to abide by local laws, fulfill corporate social responsibilities 
and observe business principles and international practices when they do busines s in host 
countries and conduct outward investment cooperation. China will continue to promote the 
sustainable, reasonable, orderly and sound development of outward investment, and effectively 
prevent risks of all kinds. Meanwhile, in order to create a mor e equitable, transparent and 
predictable environment for foreign investment, China calls on host countries to refrain from 
abusing security review or adopting other restrictive practices to impose excessive limitations on 
foreign investment.  
4.6  Advancing the Free Trade Area Strategy  
4.10.   The multilateral trading system and regional trade arrangement are the two wheels driving 
economic globalization forward. China upholds the multilateral trading system and promotes free 
trade arrangements. By May 2018, China had si gned 16 free  trade agreements (FTA) with 
24 countries and regions. In 2017, trade between China and its FTA partners accounted for 
25.9 percent of China 's total foreign trade. In those free trade agreements, basically 90 percent of 
imported products enjoy duty free treatment, and approximately 120 service sectors have been 
opened to foreign suppliers, compared to 100 service sectors in China 's commitments to the WTO 
at the time when China joined the organization. Committed to advancing economic globalizatio n 
and safeguarding free trade, China is negotiating with relevant parties the Regional 
Comprehensive Economic Partnership for its early conclusion and implementation, and is 
accelerating the building of Free Trade Area of Asia -Pacific and East Asia Economi c Community. 
With all these efforts, China will build a high standard network of free trade areas, focusing on the 
neighboring areas, radiating across the Belt and Road and open to the world.  
CONCLUSION  
4.11.   The world is undergoing a new round of major develop ment, great change and profound 
readjustment. The mankind still faces growing uncertainties and destabilizing factors. Surging 
tides of anti -globalization in recent years, coupled with rising protectionism and unilateralism, have 
posed severe challenges to  the multilateral trading system with the WTO at its core.  
4.12.   Economic globalization has powered global growth and is an irreversible trend of our times. 
China and the multilateral trading system stand together through thick and thin. China will 
continue to fulfil its commitments, comply with rules, actively participate in the improvement of 
the multilateral trading system, and give firm support to the WTO in playing a greater role in 
global economic governance.  
4.13.   China 's economy has been transitioning from rapid growth to high -quality development. In 
this historic process, China will pursue with firmness the vision of innovative, coordinated, green, 
and open development that is for everyone, improve the socialist market economy system, and 
stimulate the vita lity of various market entities.  
4.14.   China will take innovation as the primary driving force for development. China will adopt a 
more open attitude, strengthen the protection of innovation and intellectual property rights, and 
enhance international exchanges a nd cooperation. These efforts will ensure that technological 
development and innovation benefit not only China, but also the world, and its convenience readily 
accessible to more and more people.  
4.15.   China calls on all countries to jointly shoulder the respons ibilities of our times and believes 
that all countries should have equal access to development opportunities. As the largest 
developing country in the world, China looks forward to further cooperation and communication 
with other countries to jointly respo nd to global issues that emerge in the process of globalization, 
and to building a global economic governance system based on equality, equity and win -win 
cooperation.  
4.16.   China commits itself to opening up wider and deeper to promote common development 
across  the world, providing other countries with more opportunities to share the benefits of China 's 
development. China is willing to work hand -in-hand with its global trading partners to make WT/GC/W/749  
 
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  economic globalization more open, inclusive, balanced and win -win wit h benefits to all so that 
different countries, different social strata and different groups of people all share in the benefits of 
economic globalization.  
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