WORLD TRADE  
ORGANIZATION  WT/DS378/3 
S/L/337/Add.1 9 December 2008 
 
(08-6056) 
 Original:   English 
  
 
CHINA – MEASURES AFFECTING FINANCIAL INFORMATION SERVICES AND 
FOREIGN FINANCIAL INFORMATION SUPPLIERS 
 
Joint Communication from China and Canada
 
 
 
The following communication, dated 4 December  2008, from the delegation of China and the 
delegation of Canada, is circulated at the request of those delegations. 
 
_______________ 
 
  The Governments of the People's Republic of China and Canada wish to notify the Dispute Settlement Body that we have signed the att ached Memorandum of Unde rstanding regarding the 
matter raised by Canada in the dispute China – Measures Affecting Financial Information Services 
and Foreign Financial Information Suppliers (WT/DS378). 
 
 We ask that you circulate this notification and th e attachment to the Dispute Settlement Body.   
   
 
Sun Zhenyu 
Ambassador 
Permanent Mission 
of the People's Republic of China John Gero 
Ambassador 
Permanent Mission of Canada  
 WT/DS378/3 
S/L/337/Add.1 Page 2 
 
 
  Memorandum of Understanding Between the People's Republic of China and 
Canada Regarding Measures Affecting Foreign Suppliers 
of Financial Information Services 
  Whereas Canada requested consultations with th e People's Republic of China ("China") at the 
World Trade Organization ("WTO") on 20 June 20 08 regarding certain measures affecting foreign 
suppliers of financial information services (DS378);  Whereas China and Canada held constructive c onsultations in Geneva  on 20 August and 25 
September 2008;   
 China and Canada have agreed as follows:  1. During the consultations, Canada described its concerns regarding the independence of the 
regulator of financial information services in China. 
(a) The State Council, following the approval of the Reform Plan of the State Council by 
the first meeting of the 11
th Session of the National People's Congress on 
15 March 2008, has been undertaking adjustment of certain elements in China's institutional structure. China confirms that the State Council will, by 31 January 2009, authorize a new regulator  of financial information services (the 
"new regulator") and that the new regula tor will be a governmental entity separate 
from, and not accountable to, any supplier of financial information services.   
(b) The new regulator, within its mandate, will have  the authority to require that suppliers 
of financial information services comply wi th all relevant Chinese laws, regulations, 
and departmental rules.  
2. Canada also described its concerns about Ch ina's measures relating to foreign financial 
information service suppliers, including through the Notice Authorizing Xinhua News Agency to 
Implement Centralized Administration Over the Re lease of Economic Information in the People's 
Republic of China by Foreign News Agenci es and Their Subsidiary Information Institutions , issued by 
the General Office of the State Council on 31 December 1995 (the " Circular "), and the Measures for 
Administering the Release of News Information in China by Foreign News Agencies , issued by 
Xinhua News Agency on 10 September 2006 (the " 2006 Measures ").   
(a) China confirms that a legal instrument (the  "new measures") of at least equal legal 
stature to the 2006 Measures  will be promulgated by 30 April 2009 to replace the 
2006 Measures , effective no later than 1 June 2009.  
(b) China confirms that under the new measures, a new licensing system will be applied 
to foreign suppliers of financ ial information services. China further confirms that this 
new licensing system will conform to the co mmitments that China made in paragraph 
308 of the Working Party Report accompanying its Protocol of Accession to the World Trade Organization.   
(c) China confirms that beginning on the da te of the implementation of the new 
measures, China will permit foreign supplie rs of financial information services to 
supply financial information services, direc tly or indirectly, without requiring the 
involvement of any agent or intermediary, and will not impose any licensing requirements or similar approvals on service consumers in order for them to receive 
financial information services from foreign suppliers.      WT/DS378/3 
 S/L/337/Add.1 
 Page 3 
 
 
  (d) The new regulator may require foreign supp liers of financial information services to 
submit only information that is relevant  to matters under the license.  The new 
regulator may require foreign suppliers of financial information services to file with 
the new regulator relevant information iden tifying each subscriber to the financial 
information service within thirty (30) days after the conclusion of the subscription 
contract with that subscriber, but will not require the filing of the subscription contract itself.      
(e) China confirms that it will accord foreign financial information services and foreign 
suppliers no less favorable treatment th an that accorded to Chinese financial 
information services and service suppliers. 
(f) China clarifies that a document will be issu ed by the same authority that issued the 
Decision on Establishing Administrative Permission for the Administrative 
Examination and Approval of Items that Must Be Retained  (State Council Order 
No 412 ) no later than 31 January 2009, stating that the State Council Order No. 412  is 
modified to identify a new regulator and that the Circular  is superseded and will no 
longer be implemented, so that foreign supp liers of financial information services will 
be subjected to the administration of th e new regulator in accordance with this 
Memorandum of Understanding.  
3. Canada also described its concerns about the protection of commercially valuable information 
belonging to foreign suppliers of  financial information services. 
 China confirms that, in accordan ce with China's laws, regulations and departmental rules, the 
new regulator will take all necessary steps to prot ect the information provided to it by a foreign 
supplier of financial information services, and will only use such information for the specific 
regulatory purpose for which it is provided, and w ill not otherwise disclose the information to any 
unauthorized person.     
  
4. During the consultations, Canada described its concerns about China's prohibition on foreign 
suppliers of financial information services operatin g through commercial presence in China, other 
than limited representative offices, to supply these services. 
 China clarifies that Chinese laws, regulations, and departmental rules do not impose any 
prohibitions on the supply, through commercial prese nce, of financial information services.     
 
5. The term "financial information service" as used in this Memorandum of Understanding 
means a service that supplies information that could affect financial markets and/or financial data, 
targeted at service consumers engaged in financial analysis, financial transactions, financial decision 
making, or other financial activities.  Financial in formation services are distinct from "news agency 
services" as defined in UN Provisional Centra l Product Classification (1991) group 962. 
6. As used in this Memorandum of Understa nding, the terms "service consumer", "supply", 
"service supplier" and "commercial presence" are to  be interpreted in accordance with Article XXVIII 
of the General Agreement on Trade in Services . 
7. China and Canada agree to communicate in  a timely manner with respect to the 
implementation of the actions described above, in cluding China's provision of a reasonable period to 
comment on any proposed measure related to th is Memorandum of Understanding prior to the 
finalization of such measure. WT/DS378/3 
S/L/337/Add.1 Page 4 
 
 
  8. This Memorandum of Understandi ng is without prejudice to the rights and obligations of 
China and Canada under the WTO Agreement . 
 Done in Geneva, 13 Novemb er 2008, in two original versions in Chinese and English, 
respectively, each text being equally authentic.  
 
  For the Government of the People's Republic of China: 
 
   ___________________________ 
 For the Government of Canada: 
 
 
   ____________________________ 
  
 
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