. /.   WORLD TRADE  
ORGANIZATION  G/TRIMS/W/59 
9 October 2008 
 (08-4796) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
COMMUNICATION FROM CHINA 
 
 
 The following communication, dated 8 October 2008, is being circulated at the request of the Delegation of the People's Republic of China. 
 
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TRANSITIONAL REVIEW MECHANISM PURSUANT TO PARAGRAPH 18 OF THE 
PROTOCOL ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA 
("CHINA")
1 
 
Information notified by China on Annex 1A of the Protocol  
on the Accession of the People's Republic of China  
 
 
II. ECONOMIC POLICIES 
3. Investment Regime 
(a) Completed revisions to investment guidelines in conformity with the WTO Agreement   
A revised Catalogue for the Guidance of Foreign Investment Industries  (hereafter referred to as 
"Catalogue ") was promulgated on 31 October 2007, and came into force since 1 December 2007.   
Major adjustments include:  
 New items including "undertaking service outsourcing" and "modern logistics" have been added 
to the "encouraged items", while "goods leasing", "fre ight forwarding" and "foreign trade" have been 
adjusted from "restricted items" to "permitted ite ms". "Futures companies" and "construction and 
operation of power grid" have been  moved from "prohibited items" to "restricted items", thus open 
them to foreign investment for the first time. Th ese adjustments mirrored China’s efforts to further 
liberalize the service sector.  
 
The revised Catalogue  also incorporates policies and measures relating to foreign investment 
contained in specific industrial policies and programs a pproved by the State Council in all sectors, 
thus streamlined the foreign direct investment (FDI) access requirements in various regulations and 
rules, consolidating a consistent, transparant a nd practicable legislative framework for foreign 
investment to further faciliate FDI in China. 
 
In the former Cataloge , "permitted foreign invested project s whose products are to be wholly 
exported directly" is treated as an "encouraged" ite m. This provision has been eliminated in the new  
Cataloge . 
                                                     
 
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  IV. POLICIES AFFECTING TRADE IN GOODS 
8. Trade-Related Investment Measures 
(a) Elimination and cessation of enforcement of  trade and foreign exchange balancing 
requirements, local content and export performance offsets and technology transfer 
requirements made effective through laws, regulations or other measures 
Please refer to the information in 3(a) above, and th ere are no other major changes in this field.  
 
(b) Amendments to ensure lifting of all meas ures applicable to motor vehicle producers 
restricting the categories, types or models of vehicles permitted for production (to be completely removed two years after accession) 
Please refer to the information in 3(a) above, and there are no other major changes in this field. 
 
(c) Increased limits within which investments in motor vehicle manufacturing could be 
approved at the provincial government at the levels outlined in the Report 
Please refer to the information in 3(a) above, and there are no other major changes in this field. 
 
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