./.  WORLD TRADE  
ORGANIZATION  G/SG/Q1/CHN/22 
31 March 2005 
 (05-1301) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Replies to Follow-Up Questions Posed by the EUROPEAN COMMUNITIES
1 
and MEXICO2 Regarding the Notifications of the PEOPLE'S REPUBLIC OF CHINA3 
 
 
 The following communication, dated 30 March 2005, is being circulated at the request of the Delegation of the People's Republic of China.  
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Replies to the European Communities
 
 
 Article 32 of the Regulations of  The People's Republic of China on Safeguards  states that  
“Where any country (region) discriminatorily appli es safeguard measures on exports from the 
People's Republic of China, the People's Republic of China may, based on the actual situations, 
adopt corresponding measures toward that country (region) .” 
  Please identify which safeguard measur es would qualify, in PRC’s view, as 
“discriminatory” measures within the meaning of  Article 32.  For instance, does PRC consider 
that measures taken in conformity with Article 16 of the Protocol of Accession of PRC to the WTO (TPSSM) are “discriminatory” safeguard measures?   Please specify the procedure under domestic and/or international law (i.e. WTO) that 
PRC intends to follow in order to establish whet her a safeguard measure is “discriminatory”. 
 
 Please identify the nature (e.g. form a nd level) of the “corresponding measures” 
contemplated in Article 32.    Please explain how the PRC intends to en sure that such “corresponding measures” 
would be adopted in conformity with PRC’s substantive and procedural WTO obligations, 
including the obligations deriving fr om the WTO Agreement on Safeguards.  
 
Reply
 
 
 According to the Agreement on Safeguard, WTO Members may apply a safeguard measure 
only after a legitimate investigation, and the measur e shall be applied to qualified Members fairly and 
without discrimination. 
 
                                                      
1 G/SG/Q1/CHN/21 
2 G/SG/Q1/CHN/20 
3 G/SG/N/1/CHN/2 and Suppls 1 and 2 and G/SG/Q1/CHN/18. G/SG/Q1/CHN/22 
Page 2  
 
  Up to now, China does not have any subs tantive and procedural rules governing the 
application of this Article under domestic law.  Neither do we have  any specific cases.  However, 
China promises to implement this Article  in conformity with the WTO Rules. 
 
 China is of the view that measures taken in conformity with Article 16 of the Protocol of 
Accession of PRC to the WTO are discrimination. 
 
 
Replies to Mexico
 
 
Q1. Are there any special characteristics or condi tions that information must comply with in 
order to be considered a business secret?  If the answer to the previous question is yes, then 
which law, regulation or specific provision mandates this?  
Q2. Is there an administrative authority which has discretionary faculties to determine when 
a particular information constitutes a business secret?  If yes, then which authority (or authorities ) has (have) such faculties? 
 Reply
 
 
 Please refer to Certain Regulation on Prohibition of Infringing Business Secret, which is 
promulgated as NO.41 Decree by State Administration for Industry and Commerce(SAIC) of the People’s Republic of China on Nov. 23 1995 a nd modified in No. 86 Decree by SAIC on 
3 December 1998 (www.saic.goc.cn
). 
 
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