WORLD TRADE  
ORGANIZATION  WT/DS413/1 
S/L/375 20 September 2010 
 
(10-4729) 
 Original:   English 
  
 
CHINA – CERTAIN MEASURES AFFECTING  
ELECTRONIC PAYMENT SERVICES 
 
Request for Consultations by the United States
 
 
 
 The following communication, dated 15 September 2010, from the delegation of the United States to the delegation of China and to the Chairman  of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU.  
_______________ 
 
  My authorities have instructed me to request  consultations with the Government of the 
People's Republic of China ("China") pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes  ("DSU"), and Article XXII of the General 
Agreement on Trade in Services  ("GATS") with respect to certain restrictions and requirements 
maintained by China pertaining to electronic payment services
1 for payment card2 transactions and the 
suppliers of those services ("electronic payment services suppliers").   In the financial services sector, as set out in China's GATS Schedule of Specific 
Commitments on Services (the "Schedule")
3, China undertook both market access and national 
treatment commitments with respect to:  
• "Banking services as listed below: . . . All payment and money transmission services, 
including credit, charge and debit cards, travellers cheques and bankers drafts 
(including import and export settlement)"; 
 
                                                     
 
1 "Electronic payment services" involve the services through which transactions involving payment 
cards (as defined below) are processed and through which transfers of funds between institutions participating in 
the transactions are managed and facilitated. Suppliers of electronic payment services supply, directly or 
indirectly, a system that typically includes the following : the processing infrastructure, network, and rules and 
procedures that facilitate, manage, and enable transaction information and payment flows and which provide 
system integrity, stability and financial risk reduction; the process and coordination of approving or declining a 
transaction, with approval generally permitting a purchase to be finalized or cash to be disbursed or exchanged; 
the delivery of transaction information among participating entities; the calculation, determination, and reporting of the net financial position of relevant institutio ns for all transactions that have been authorized; and 
the facilitation, management and/or other participation in the transfer of net payments owed among participating 
institutions. 
2 A "payment card" includes a credit card, charge  card, debit card, check card, automated teller 
machine ("ATM") card, prepaid card, and other similar card or payment or money transmission product or 
access device, and the unique account number associated  with that card or product or access device. 
3 Annex 9 of the Protocol on the Accession of the People’s Republic of China , WT/L/432, 
23 November 2001 (the "Accession Protocol").   WT/DS413/1 
S/L/375 Page 2 
 
 
  • "Other financial services as listed below: . . .  provision and transfer of financial 
information, and financial data processing and related software by supplier of other 
financial services"; and  
 
• "Advisory, intermediation and other auxiliary  financial services on all activities listed 
in subparagraphs (a) through (k), includi ng credit reference and analysis, investment 
and portfolio research and advice, a dvice on acquisitions and on corporate 
restructuring and strategy."
4 
  Despite those commitments, China appears to impose market access restrictions and requirements on service suppliers of other Members seeking to supply electronic payment services in 
China. It appears that China Uni onPay ("CUP"), a Chinese entity, is th e only entity that China permits 
to supply electronic payment services for paymen t card transactions denominated and paid in 
renminbi ("RMB") in China. Service suppliers of other Members can only supply these services for 
payment card transactions paid in foreign currency.   
 In addition to permitting only CUP to supply electronic payment services for payment card 
transactions in China denominated and paid in RM B, China also requires all payment card processing 
devices at merchant locations to be compatible  with CUP's system, which gives CUP guaranteed 
access to all merchants in China who accept payment cards. Electronic payment services suppliers of other Members or their participating institutions, by contrast, must negotiate for access to merchants.  
In addition, China requires that all payment cards,  including "dual currency" cards, issued in China 
for transactions denominated and paid in RMB bear  the CUP logo. These and other requirements and 
restrictions identified below appear to accord l ess favorable treatment to electronic payment services 
suppliers of other Members than to Chinese suppliers of these services.     The instruments through which Chin a maintains these measures include: 
 
– Measures for the Administration of Bank Card Business by the People's Bank of 
China (Yinfa [1999] 17), issued on 27 January 1999;   
 
– Circular of the People's Bank of China on Promulgation of Opinions on 
Implementation of Joint Work in Bank Ca rd Interoperability in 2001 (Yinfa [2001] 
37), issued on 19 February 2001; 
 
– Circular on Uniform Use of CUP Logo and its Holographic Label for 
Anti-counterfeiting by the People's Bank of China (Yinfa, [2001] 57), issued on 13 March 2001; 
 
– Notice of Circulating the Bank Card Connection Business Standard by the People's 
Bank of China (Yinfa [2001] 76), issued 29 March 2001; 
 
– Opinions on Bank Card Interoperability Re lated Work in 2002 by the People's Bank 
of China (Yinfa [2002] 94), issued on 5 April 2002; 
 
– Circular regarding Issues concerning Bank Ca rd Interoperability Related Work by the 
People's Bank of China (Yinfa [2002] 272), issued on 29 August 2002; 
 
                                                     
 
4 Section II, 7 (Financial Services), B (Banking and Other Financial Services) of the Schedule 
(circulated in WT/ACC/CHN/49/Add .2 and WT/MIN(01)/3/Add.2).  WT/DS413/1 
 S/L/375 
 Page 3 
 
 
  – Circular on Further Improving Bank Card Interoperability Related Work by the 
People's Bank of China (Yinfa [2003] 129), issued on 2 July 2003; 
 
– Announcement of Clearing Arrangements Provided by Banks in relation to 
Individuals' Deposits, Exchanges, Bank Card and Remittance in RMB in Hong Kong 
(PBOC Announcement [2003] 16), issued on 19 November 2003; 
 
– Circular on Regulating the Administration of Foreign Currency Bank Cards by the 
State Administration of Foreign Exchange Circular (Huifa [2004] 66), issued on 30 
June 2004; 
 
– Announcement of Clearing Arrangements Provided by Banks in relation to 
Individuals' Deposits, Exchanges, Bank Cards and Remittance in RMB in Macao 
(PBOC Announcement [2004] 8), issued on 3 August 2004; 
 
– Notice of the People's Bank of China con cerning Relevant Issues on Accepting and 
Using Renminbi Bank Cards in Border Areas (Yinfa [2004] 219), issued on 21 September 2004;  
 
– Circular regarding Issues concerning Indi vidual RMB Business Handled by Banks in 
Mainland China and Banks in Hong Kong a nd Macao by the People's Bank of China 
(Yinfa [2004] 254), issued on 28 October 2004; 
 
– Some Opinions of the People's Bank of Ch ina, the National Reform and Development 
Commission, the Ministry of Public Security, the Ministry of Finance, the Ministry of 
Information Industry, the Ministry of Commerce, the Station Administration of 
Taxation, China Banking Regulatory Commission and the State Administration of Foreign Exchange on Promoting the Deve lopment of Bank Card Industry Some 
Opinions of the People's Bank of China,  the National Reform  and Development 
Commission, the Ministry of Public Security, the Ministry of Finance, the Ministry of 
Information Industry, the Ministry of Commerce, the Station Administration of 
Taxation, China Banking Regulatory Commission and the State Administration of 
Foreign Exchange on Promoting the Deve lopment of Bank Card Industry (Yinfa 
[2005] 103), issued 24 April 2005; 
 
– Guiding Opinions of the People's Bank of China on Regulating and Promoting the 
Development of Bank Card Acceptance Market (Yinfa [2005] 153), issued on 
16 June 2005;  
 
– Notice of the People's Bank of China on the Relevant Issues concerning 
Strengthening the Administration of Oversea Business Acceptance of Bank Cards (Yinfa [2007] 273), issued on 6 August 2007; 
 
– Notice of the China Banking Regulatory Commission on the Issues Concerning 
Wholly Foreign-funded and Chinese-forei gn Equity Joint Banks in Conducting the 
Bank Card Business (Yin Jian Fa [2007] 49), issued 6 June 2007;  
 
– Notice of the People's Bank of China, the China Banking Regulatory Commission, 
the Ministry of Public Security and the State Administration for Industry and Commerce on Strengthening the Safety Ma nagement of Bank Cards and Preventing 
and Combating Bank Card Crimes (Yinfa [2009] 142), issued 27 April 2009; and  
 WT/DS413/1 
S/L/375 Page 4 
 
 
  – The Opinions of the Standing Office of the People's Bank of China on the Circular on 
Strengthening the Safety Management of  Bankcards and Preventing and Fighting 
Crimes in Bank Cards by the People's Bank of China, the China Banking Regulatory Commission, the Ministry of Public Security and the State Administration for 
Industry and Commerce (Yinfa [2009] 149), issued 1 August 2009; 
 as well as any amendments, related measures, or implementing measures.   China therefore appears to be acting inconsis tently with its obligations under Articles XVI 
and XVII of the GATS. 
   The measures cited in this request for consu ltations also appear to nullify or impair the 
benefits accruing to the United States directly  or indirectly under the cited agreements. 
 
 We look forward to receiving your reply to the present request and to fixing a mutually 
convenient date for consultations.   
__________