WORLD TRADE  
ORGANIZATION   
WT/TPR/M/264 
17 July 2012 
 (12-3877) 
Trade Policy Review Body 
12 and 14 June 2012  
 
 
 
TRADE POLICY REVIEW 
 
CHINA 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Eduardo Muñoz Gómez (Colombia) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA  5 
III. STATEMENT BY THE DISCUSSANT 10 
IV. STATEMENTS BY MEMBERS 12 
V. REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL COMMENTS 56 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 68 
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by China are 
reproduced in document WT/TPR/M/264/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.   
   WT/TPR/M/264 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fourth Trade Policy Review of China was held on 12 and 14 June 2012.  The Chairperson 
H.E. Mr.  Eduardo Muñoz Gómez (Colombia) welcomed the delegation of China headed by H.E. Mr. YU Jianhua, Assistant Minister of Commerce, and the discussant, H.E. Mr. Steffen Smidt (Denmark).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by China was contained in document WT/TPR/G/264 and 
that of the WTO Secretariat in WT/TPR/S/264. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to  the delegation of China:  the United States, Switzerland, Brazil, 
India, Republic of Korea, Japan, Pakistan, No rway, ASEAN, Singapore, Ukraine, Costa Rica, 
Canada, Chinese Taipei, Colombia, Malaysia, Do minican Republic, Trinidad and Tobago, Hong 
Kong, China, New Zealand, Australia, Thailand, the European Union, Indonesia, Peru, and Turkey.  
The following delegations submitte d written questions after the two-weeks deadline:  Mexico, Chile, 
Argentina, and South Africa.   
4. The Chairperson observed that both reports noted  that China enjoyed strong economic growth 
in 2010 and 2011, based mainly on huge economic stimulus package that was introduced in 2008-
2009.  However, export growth had re mained below its historic rate because of weak global demand.  
One consequence of this is the narrowing of merc handise trade surplus to 4.3% in 2011, compared 
with levels of 9% and above before 2008. 
5. China recently downgraded its growth target for 2013 to 7.5%.  He noted that Members 
would be interested to learn more about how th e Government viewed China's economic prospects 
over the next few years.   
6. There had been relatively few changes to Chin a's policies on imports and on inward foreign 
investment since 2010.  However, China had made noti ceably more use of export restrictions recently.  
He believed that Members would be interested  in learning more about of these measures. 
7. With regard to specific topics of interest  to Members, he mentioned the following: 
 Standards, SPS, and other technical requirements:  As in the previous Review and as 
indicated in many advance written questions, Members would be interested in learning more of how China would enhance transparen cy and predictability of its standards and 
SPS measures, such as providing more opport unities for consultations with its trading 
partners, using international standards, and recognition of conformity assessment 
procedures. 
 Intellectual property rights:   I noted that China has promulgated or amended a number 
of laws, regulations, and departmental rul es regarding the protection of intellectual 
property rights, and Members may wish to know the details, especially those concerning trademarks.  Some considered China's enforc ement of intellectual property rights to be 
insufficient in the previous Review, and this c ontinues to draw the attention of Members.   
 Agriculture:   As China's agricultural production increases, support provided to the sector 
has also increased.  Given the importance of this, Members would like to have more 
details of how and to what extent Chin a's support programmes will be implemented. 
 Government Procurement:   China is in the process of becoming a party to the 
Agreement on Government Procurement (GPA).  Members are interested to have more WT/TPR/M/264 
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  information about procurement activities at th e sub-central level and to know how China 
intends to amend its current practices of gove rnment procurement when it joins the GPA. 
 Services:   China intends to reduce its reliance on manufacturing and to develop further its 
services sector.  Members would be interested to learn better the extent to which further liberalization of China's market services can serve that intention. 
 Anti-dumping:   While China's institutional and procedural framework on anti-dumping 
has not changed since 2009, Members wish to know the details of how anti-dumping measures are implemented.  
 Subsidies:   It is satisfactory to note that in 2011 China submitted its new notification of 
subsidies covering the central government's  assistance programmes for the period 2005-
2008.  However, Members wish to know more  about the details of China's subsidy 
programmes since 2009, including those implemented at the sub-central level.  WT/TPR/M/264 
 Page 5 
 
 
  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF CHINA  
8. Since the last Review, China has been confr onted with a complicated economic and trade 
environment.  However, to promote robust, su stainable, and balanced growth, the Chinese 
government has deepened reform and opening up, expanded domestic demand, and accelerated economic restructuring and the transformation of th e economic growth model.  The development of 
China's economy and trade has maintained a good momentum, and China's economic and trade links 
with other countries and regions have been furt her strengthened on the mu ltilateral, regional, and 
bilateral fronts.  My presentation will mainly cover tw o parts.  The first part is the macro-environment 
for China's economy and trade, and the second is trade and investment development and related 
policies.  In the end, I will briefly touch upon future prospects. 
9. Since the last Review, external environmen t for China's development has been very 
complicated.  The ongoing financial crisis and th e non-conventional monetary policies adopted by 
some Members caused many negative impacts on China.   
10. External demand has been sluggish, and the influe nce of the Eurozone de bt crisis has been 
deepening.  The European Union is China's largest trading partner.  In  the first quarter of 2010 and the 
first quarter of 2011, China's export to the EU gr ew by 31% and 17.2% respectively over the previous 
year. In sharp contrast, the year-on-year figure for 2012 dropped by 1.8%.  EU's investment in China increased by around 10% in the first quarter of 2 010, 26.54% in the first quarter of 2011, but 
decreased by 31.2% in the first quarter of 2012. 
11. The Chinese currency RMB continu es to appreciate.  According to the Bank of International 
Settlements, the nominal ef fective exchange rate of the RMB wa s up by 21.37% compared with 2005 
when the reform of the exchange rate regime kicked  in, and the real effective exchange rate was up by 
29.38%. 
12. Against this background, many Chinese compani es, in particular the export-oriented SMEs 
along the coastal regions are having a hard time deal ing with dwindling orders, rising costs, and the 
difficulty of financing. 
13. Inside China, the government has been under mu ch pressure to stabilize price.  During the ten 
years from 2000 to 2009, CPI increased by only 1. 85% on average every year.  But from the first 
quarter of 2010 to the third quarter of 2011, CPI's growth rate surged from 2.2% to 6.2%. 
14. The cost of labor has shot up while the aging population brings more challenges.  In 2010, 30 
out of the 31 provincial-level governments raised mi nimum wage by an average of 22.8%.  In 2011, 
25 of them raised the benchmark by another 22% on average. 
15. China has 185 million elderly people, and it is the only country in the world to exceed the 100 
million thresholds.  The elderly popul ation is growing by 3% every year, and is expected to climb to 
the peak of 487 million by 2053, which is not far from now, taking up 34.8% of the whole population, 
compared to the current figure of 13.3%. 
16. The government has taken a host of control measures including in the real estate sector to 
curb price hikes.  However, the measures have  backfired on consumption.  Car sales in China 
rocketed by 46% in 2009 and 34% in 2010, but only edged up by 2.5% in 2011.  Rural market boasts great potential, but it is a long and slow process to materialize this potential.  China must address the 
long term problems of unbalanced, uncoordinate d and unsustainable development of its economy, 
while resolving short term imperatives. WT/TPR/M/264 
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  17. Facing such an environment, the government has adopted a host of policies to deepen reform 
and opening up, improve people's liv elihood, and expand domestic demand,  in particular consumption 
demand.   
18. In September 2011, the revised Individual In come Tax Law came into effect, slashing 
personal income tax by a large margin.  This is the second round of individual income tax cut since 
2008, reducing the number of taxpayers  from 84 million to 24 million.   
19. Social security system has seen breakthroughs in the past two years.  The framework of a 
social security system covering 1.3 billion urban and rural residents is basically put in place.  While 
the sustainability of the system is insured, the leve l of insurance has been boos ted.  A better social 
security system will certainly contribute to expand ing domestic demand, in particular consumption 
demand in the long run.   
20. In terms of deepening reform, in the past two years, the reform of resource tax and the pilot 
reform on converting business tax to VAT have been  launched.  Reform of RMB exchange rate 
pricing mechanism and the cross border use of RMB have made headways.  By the end of 
March 2012, the People's Bank of China had signed b ilateral local currency swap agreements with 
17 countries and regions.  83 overseas institutions can now invest in China's bond market, including 
monetary authorities, international financial ins titutions, commercial banks, insurance companies and 
fund management companies.  In merely two m onths after the Government Report of China was 
drafted, the Chinese government has continued to take essential reform measures in many key areas. 
21. The Central Bank expanded the floating range of  RMB against the U.S. dollar in the foreign-
exchange market.  The Ministry of Transport, Ministry of Railways, China Banking Regulatory 
Commission, and the State Assets Supervision and Administration Commission announced a series of 
opinions on private capital's access to certain sect ors or their participation in the reform and 
restructuring of state owned enterprises.  Just a fe w days ago, that is on 8 June, China's Central Bank 
decided to cut RMB benchmark interest rates by 0. 25 percentage points, and to adjust the upper limit 
of the floating range for deposit inte rest rates to 1.1 times the benchm ark rate and the lower limit of 
the floating range for loan interest rates to 0.8 times  the benchmark rate.  This  is yet another important 
step towards market-bas ed interest rates. 
22. Under the efforts of the Chinese government, 2010 and 2011 witnessed a strong growth in 
China's economy.  GDP was up by 10.4% and 9.2% r espectively, while CPI growth dropped to 4.6% 
in the fourth quarter of 2011.  In the first quarter of 2012, GDP grew by a fairly strong 8.1%, while CPI growth further dropped to 3.8%.   
23. Economic and social development has become more balanced. This is manifested by the 
declining share of current account surplus in GDP, which dropped from 10.1% in 2007 to 2.8% in 2011, and to merely 1.2% in the first quarter of 2012.   The level of urbanization exceeded 50% in 
2011, signalling a historic change in social structure. 
24. China attaches equal importance to export and import.  Import growth has outpaced export in 
the past two years, indicating that trade is on the way to become more balanced.  In 2010 and 2011, 
China's total export of goods was US$1.58 trillio n and US$1.9 trillion, up by 31.3% and 20.3% 
respectively over the previous year, while the to tal import was US$1.4 trillion and US$1.74 trillion, 
up by 38.8% and 24.9% respectively.   
25. Trade surplus in goods has been going downwar d in recent years.  Surplus hit a peak of 
US$298.1 billion in 2008, but then dropped to US $195.7 billion in 2009, US $181.5 billion in 2010, 
and US$155 billion in 2011.  In 2010, trade surplus in  goods took up 6.1% of to tal trade and 3.0% of 
GDP.  In 2011, the figures dropped to 4.3% and 2.1%  respectively.  An important reason for the more  WT/TPR/M/264 
 Page 7 
 
 
  balanced growth of trade is that the Chinese govern ment has been making greater efforts to further 
open up, expand import, and stimulate domestic demand. 
26. During these years, the Chinese government has set interim import tariffs that are lower than 
the MFN rates, and made tariff reductions and exemp tions.  We hope to import more products that can 
stimulate domestic economic and social development a nd raise people's living standards.  In this way, 
import could contribute to macroe conomic balance and economic r estructuring.  In both 2010 and 
2011, over 600 eight-digit tariff lines were subject to low interim import tariffs.  In 2012, the coverage 
extended to more than 730 tariff lines, with an aver age tariff rate of 4.4%, 50% lower than the MFN 
tariff rate.   
27. China is now the second largest exporter next to the EU.  However, it is different from many 
other WTO Members as its export contains a large pr oportion of import.  This explains why China is 
also the third largest importer after the U.S. a nd the EU.  Take information technology products for 
example, they take up nearly one third of China's total export.  The export of such products in 2010 
was around US$600 billion, but of which only 40% of th e value was added in China.  In comparison, 
domestically added value in exports from the U.S.  and the EU to China usually accounts for over 
80%.  
28. China has fully capitalized on its  comparative advantages, adhere d to reform and opening up, 
endeavored to create a sound investment climate and facilitated trade and investment.  It has become 
an indispensable manufacturing link in the global valu e chain, and has been one of the most attractive 
investment destinations for many years. 
29. In 2010 and 2011, foreign direct investme nt rebounded after the backlashes of the 
international financial crisis.  Pa id-in foreign investment registered 17.4% and 9.7% growth in these 
two years, reaching US$105.74 a nd US$116.01 billion respectively, exceeding the threshold of 
US$100 billion for two consecutive years, setting record highs.   
30. In the first four months of 2012 however, paid -in investment dropped by 2.38% over the same 
period last year, which is not optimistic. This is prob ably due to the sharp fall of EU's investment as I 
mentioned earlier. We will pay close attention to this trend and make further analysis. 
31. In 2011, the Chinese government revised th e Catalogue for the Guidance of Foreign 
Investment Industries, making more sectors open to foreign investment.  Investments are particularly 
encouraged in central and west ern China, as well as in such sectors as high-end manufacturing, high 
and new technologies, energy conservation and envi ronmental protection and modern services.  We 
have also further simplified investment review a nd approval procedures to facilitate investment.   
32. In terms of trade in services, China has taken voluntary and autonomous liberalization 
measures in a number of sectors that go beyond our WTO accession commitments.  In tourism, from August 2010, foreign travel agencies began to offe r outbound travel services to mainland citizens on a 
pilot basis. Pilot project also began in 2011 to allow the establishment of wholly-foreign-owned medical institutions in major Chinese cities.  In  insurance, from 1 May 2012, the market of the 
compulsory third party liability insurance for autom obiles was open for foreign services suppliers.  In 
securities, the foreign equity cap in joint venture securities firms was raised from 33% to 49%, while 
joint venture futures companies with no more than 49% of foreign equity are also allowed to establish.   
33. Protection of intellectual property rights is a key concern for foreign investors.  Since the last 
Review, the Chinese government has been pushing forward software legalization in government 
agencies and enterprises, and launched nationwide ca mpaigns to crack down on IPR infringement and 
manufacturing and sales of shoddy and counterfe iting products.  The Chinese government also WT/TPR/M/264 
Page 8  
 
  established a permanent high-level working group to ensure uninterrupted efforts on fighting 
infringement for a long time to come.   
34. Since the last Review, China has signed new bila teral investment treaties with five countries, 
namely Uzbekistan, the Democratic Republic of th e Congo, Libya, and Japan and Korea together. By 
the end of May 2012, China has signed 131 bilate ral investment treaties with 128 countries and 
regions.  The negotiations between China and Canada  have also concluded, and the agreement is 
expected to be signed in the near future. 
35. While inbound investment is we lcome, outbound investment has also picked up pace.  China's 
outbound investment took up 1.3% of the world total FDI by the end of 2009 and rose to 1.6% by the end of 2010.  In both 2010 and 2011, China's non-financial overseas investment exceeded 
US$60 billion.   
36. China staunchly supports and upholds the multilatera l trading system.  Last year, the Chinese 
government celebrated the 10
th anniversary of China's accession to the WTO.  China has honoured the 
tremendous commitments it made during the accession, which greatly promoted trade and economic relations between China and other WTO Members.   
37. China is strongly against protectionism.  We have refrained from using trade remedies and 
have been trying to settle trade and investment  differences through dialogues and cooperation 
according to multilateral rules.  We respect the decisions made by the WTO Dispute Settlement 
Mechanism.   
38. According to a recent report on G-20 trade m easures by the WTO, the OECD and UNCTAD, 
during the six months between October 2011 and Ap ril 2012, the number of trade remedy measures 
initiated by China was reduced by 25% over the previous six months. 
39. Regarding the Doha development agenda, China is  open to all efforts that may facilitate the 
negotiations.  Meanwhile, China believes that  Members should not abandon the development 
mandate, and should not deviate from the multilateral a pproach.  At the same time, China is willing to 
advance regional and bilateral c ooperation with other countries a nd regions with an open and 
inclusive mind.  In promoting world trade libera lization, the Chinese government believes that the 
multilateral system should play a fundamental a nd major role, while regional cooperation being 
supportive and supplementary.  
40. As a developing country, China has always attached great importance to South-South 
Cooperation.  China has been the largest export ma rket for the least developed countries for four 
consecutive years since 2008.  According to statis tics of the WTO Secretariat, in 2010 China's import 
of goods from the least developed countries increase d by 58% over the previous year, accounting for 
nearly a quarter of the LDCs' global total export. From 2000 to 2010, China's import from the LDCs had been growing by an average of 27% annually. 
41. Following the duty-free-quota-free market access in itiative for the least developed Members 
adopted at the Hong Kong Ministerial Conference, Ch ina decided to further expand market access for 
the LDCs in spite of our own difficulties.  Du ring the G-20 Summit held in Cannes, France in 
November 2011, Chinese President Hu Jintao announced  that China would give duty-free treatment to 
products of 97% tariff lines products from the least developed countries, up from our former promise 
of 95%. 
42. On the issue of cotton, which is an important concern for over 30 African countries, many of 
which LDCs, China launched a multilateral coopera tion project on cotton with the major cotton 
producers in Africa during the Eighth WTO Ministerial Conference.  China is now earnestly  WT/TPR/M/264 
 Page 9 
 
 
  implementing its commitments of offering improved seed varieties, chemical fertilizers, agricultural 
machines, advanced techniques and human resource training.  
43. A few days ago a roundtable for LDCs' accession was held by the WTO Secretariat under the 
China's LDC and Accessions Program.  We were very pleased to welcome in Beijing the WTO Director-General Lamy, H.E. Mr. Fonotoe Nuafesili Pierre LAUOFO, Vice Prime Minister of Samoa, 
and ministers and ambassadors from 12 other WTO Members and acceding candidates, including our 
discussant Ambassador Smidt who chairs the LDC Sub-Committee.   
44. Within the framework of South-South cooperati on, China has also been providing help to 
other developing members to the best of its capacity  through bilateral channels.  China has cancelled 
the interest-free debts that were due by the end of 2010 from 50 heavily indebted countries and least 
developed countries.  We have pr omised to send another 3,000 agricultural experts and technicians to 
other developing countries by 2015, and provide tr aining opportunities for 80,000 professionals.  We 
have committed to continue providing assistance for development projects such as infrastructure for 
other developing countries.   
45. I just made a brief account on China's trade and economic developmen t and related policies 
since the last Review.  About future outlook, in March 2011, the Fourth Session of the 11
th National 
People's Congress adopted the 12th Five-Year Plan for National Economic and Social Development, 
which outlined a clear roadmap for China's developmen t in the next five years, featuring expanding 
domestic demand and accelerating the transfor mation of the economic growth model. 
46. In the next five years, China will maintain a gr owth rate of over 7%.  The share of services in 
GDP will be raised from 43% in 2010 to above 47% in 2015.  45 million new jobs will be created.  
Another 36 million low-income apartments will be  built.  Pension and medical insurance programs 
will be bolstered.   
47. In the next five years, as effect of the stra tegy to expand domestic demand is felt, China's 
consumption structure will be further upgraded, a nd consumption potential will be further unlocked.  
Social retail sales is expected to grow by 15%  on average every year, reaching 32 trillion RMB yuan 
in 2015, making China's domestic market one of the largest in the world.  China's total import will 
surpass US$8 trillion within five years, only to bring huge business opportunities to countries and regions all over the world. 
48. The Chinese government will push forward reform in all fronts with greater determination 
and courage, particularly reform in the economic system.  China will adopt a more proactive opening 
up strategy, expand and deepen opening up and the c onvergence of interests with other parties.   
49. China will take an open, inclusive, coopera tive and responsible attitude in building and 
maintaining a sound international ec onomic and trade environment togeth er with its trading partners, 
and in shaping a balanced multilateral trading system featuring benefit for all.  We hope that with our 
joint efforts, the mutually beneficial and win-wi n trade and economic relati ons between China and all 
other WTO Members could continue to develop soundly and steadily.   WT/TPR/M/264 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. STEFFEN SMIDT (DENMARK)) 
50. Since the onset of the financial and economic crises of four years ago, China has played a 
leadership role in global macroeconomic manageme nt.  The stimulus package that it introduced in 
2008 - worth 12.5% of its GDP - made an important  contribution to the recovery of global economic 
and trade growth in 2009.  It had the effect also of shifting China's own growth pattern decisively 
towards domestic demand, away from the export-led model on which China's growth had been based 
for several decades.  And China joined other G-20 me mbers in rejecting a protectionist response to the 
crisis, keeping its markets as open to foreign compe tition as they had been before the crisis struck.  
The result for China has been faster growth of impor ts than of exports over the past few years, and a 
shrinking of China's current account surplus from 9%  of GDP in 2008 to about 3% of GDP in 2011. 
51. The question now, I think, on everyone's lips is how  China's sees the future in terms of this 
balance between exports and domestic demand to  drive its economic growth.  Where do the 
authorities want that balance to be struck? 
52. Turning to China's external trade, it is striki ng that China is now the world's second largest 
exporter and third largest importer.  This extr aordinary performance has been achieved through 
gradually opening up China's economy to global co mpetition through trade and foreign investment.  I 
think I am right in saying that some outside obser vers may have found the process a bit too gradual 
for their liking.  Please let me advice colleagues that have made such observations to take comfort in 
an old Chinese proverb that I have  found:  "Be not afraid of gr owing slowly; fear standing still". 
53. Nonetheless, it is understandable that the sheer size of China's economy and China's growing 
role in international trade underline the importanc e for China's trading partners of there being 
continuing progress in economic reform in China, an d particularly those reform measures that have 
direct impacts on Chinese trade and investment. 
54. I shall leave each of China's trading partners  to speak for themselves on this point, but I 
would like to try to put forward a couple of points on trade policy reform of a more generic nature - in 
particular, the importance that transparency of trad e policy reform plays in the proper functioning of 
the multilateral trading system, and how the WTO rules and procedures can help WTO Members, as 
both exporters and importers, to support tr ade policy reform both at home and abroad. 
55. Let me start with tariffs, where I think the s ituation in terms of both WTO rules and current 
policy practice is relatively clear.  Like many ot her WTO Members, China's applied tariff is little 
changed from what it was at the last TPR in 2009.  To give credit where credit is due, in April 2012 
China reduced a few of its tariffs on some en ergy products, consumer goods and key economic 
components in strategic emerging industries.  But by  and large I do not believe we are likely to see 
significant changes in tariffs, in China or in its major trading partners, until we find ways collectively 
of unblocking the Doha Round and striking a new, multilateral tariff-cutting deal. 
56. The situation with regard to non-tariff barrier s and behind-the-border measures such as state 
aids and subsidies, government pr ocurement practices, and the activities of state-owned enterprises is 
much less clear.  There is a good deal of descrip tive material about these trade and trade-related 
policies in China in the Secretariat Report.  Even so , one comment I feel obliged to make is that I was 
struck by several instances in whic h the Secretariat concludes that it was not able to gather sufficient 
information to do its job properly, to describe cl early and fully all of th e trade and trade-related 
measures that it encountered and the ways in which th ey are applied.  It seems that some important 
policies, laws and regulations remain complex or not  sufficiently transparent to the outside observer, 
that the implementation of laws in some cases is unclear, or that the local administration or imports or 
investments in some instances is cumbersome.  WT/TPR/M/264 
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  57. One particular example seems to be the difficu lty in describing and understanding the role 
that subsidies play, at national and provincial levels , in China's industrial development.  Similarly, it 
would appear that during the period under review the government has managed to "guide" resources 
going to manufacturing subsectors, although how that  is done is not very clear, and in China's 
Government report it is mentioned that certain sectors, steel for instance, are subject to explicit 
binding targets for industrial restructuring, but again, one is left with a bit of an appetite to know more 
about how this is being done. 
58. China has a huge and complex economy that, it seems to me, is still going through a very 
substantial restructuring process.  A wide variety of  measures are being used concurrently to manage 
that process, and it is a challenging task to unta ngle these measures into their constituent parts along 
the lines of the WTO Agreements - standards and technical regulations, for example, non-tariff 
barriers such as import licensing, subsidies, government  procurement practices, and so on.  Yet in all 
of these areas, and in others too, WTO Members want to  be able to take a look at individual policies, 
on the basis of full and frank transparency, in order to understand how they are affecting international 
trade and investment.  That is the role of the TPRB, and of the specialized WTO Councils and 
technical Committees. 
59. Some areas of China's economic  and trade policies come through more clearly, I think, from 
the documentation that we have for this meeting.  The agricultural sector, for example, and trade in 
agricultural products have expanded significantly in the period under review, and it seems that various 
agricultural support programmes are having an importa nt effect on this development.  China has 
strengthened its protection of intellectual propert y and its dispute settlement process on IP.  And 
China has taken several steps to improve the transp arency of its implementation of competition policy 
- rules on the implementation of the Anti-Monopoly Law have been promulgated, for example, to 
clarify procedures for conducting anti-trust reviews and national security rules.  Importantly, China 
has announced its intention to accede to the WTO' s Government Procurement Agreement which will, 
I am confident, provide both China and its trad ing partners with substa ntial new market access 
opportunities in the future. 
60. The period that we are reviewing at this mee ting today - from 2009 to 2011 - is exceptional in 
at least two respects.  One is, of course, the extrao rdinarily difficult global economic situation that has 
prevailed and that has tended to make "cauti on" the watchword for governments around the globe 
when it comes to pressing ahead with trade and struct ural reform programmes.  I think we can see this 
happening in the case of China too, although let me repeat what I said at the start of my remarks that 
there have been gradual steps taken by Beijing in the direction of further opening up the economy to 
international competition, and this should  not be mistaken for standing still.   
61. The second respect in which the last two years h as been exceptional is th at there has been no 
forward movement in the DDA, no success in pushing ahead with the multilateral trade agenda to 
open markets and codify new rules to keep tho se markets open.  WTO rules, coupled with the 
principle of reciprocity, are powerful forces for supporting and reinforcing trade policy reform at 
home, and China has taken good advantage of this fact  over the years.  Like all other WTO Members, 
I feel China would welcome a new dose of multilatera l support for its domestic trade and investment 
policy reform agenda.  My reading of China's expe rience over the past two years is that the will to 
continue the reform programme is undoubtedly there. WT/TPR/M/264 
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  IV. STATEMENTS BY MEMBERS 
UNITED STATES 
 
62. In the ten years since it acceded  to the WTO, China has risen to become the world's second 
largest exporter, and it is now the world's third la rgest importer.  It is clear that China benefits 
immensely from the global trading system.  It is equally clear that China's emergence and growth 
have, in turn, had far-reaching impacts on economies throughout the world, as well as a major impact 
on the World Trade Organization and the nego tiations we conduct in this institution. 
63. In the years immediately following its acces sion to the WTO, China made noteworthy 
progress in adopting economic reforms that facilita ted its transition toward a market economy and 
increased the openness of its economy to trade and investment.  However, beginning in 2006, 
progress toward further market liberalization in China began to slow, and a trend toward the 
increasing use of measures imposing new restrictions on market access and foreign investment began to emerge.  We are worried, to use Ambassador Sm idt's proverb – not only of China standing still, but 
also moving backward.  Since China's 2010 TPR, it a ppears the trend toward state intervention in the 
Chinese economy has intensified.  China's tighter embrace of state capitalism now runs directly 
counter to the economic reform goals that originally  drove its pursuit of WTO membership, goals that 
had offered real leadership and r eal promise for China's future ec onomic growth.  The United States 
continues to urge the Chinese government to rec onsider its divergence from the path of reform. 
64. As we look back on developments in particular areas since Chin a's last TPR, the United States 
notes both positive developments and negative devel opments. One area that continues to generate 
significant concerns for the United States is Ch ina's inadequate and uneven enforcement of 
intellectual property rights.  The Secretariat's Report and the Government Report set out numerous actions by the Chinese authorities to try to improve the enforcement of intellectual property rights.  
However, those efforts have still not significantly  reduced the unacceptably high infringement levels 
in China, and therefore the United States continues to seek ways to work with China to improve 
China's enforcement regime.  In our view, a key me tric of success needs to fo cus on a central issue – 
whether the legitimate goods and services purchase d in large volumes around the globe can also 
achieve reasonable levels of sales in China. 
65. With regard to industrial policies, which refl ect China's growing embrace of state capitalism, 
the Secretariat's Report notes several ways in which the Chinese Government actively seeks to 
manage trade, allocate resources, "support[ ] nati onal champions" and enhance the competitiveness of 
state-owned enterprises.  Many of the specific polic ies used by China are problematic.  For example, 
grave concerns about discrimination and poor lo ng-term economic development arise from certain 
policies promoting "indigenous innovation," as well as from policies mandating the use of unique national standards, pursuing restrictive governme nt procurement practices, imposing investment 
restrictions, creating pressure to transfer technology,  using variable value-a dded tax rebate rates for 
exports and deploying export restraints. 
66. The Secretariat's Report also explains that the use of subsidies is "an important feature of" 
China's trade policy regime.  The Report notes that China submitted a subsidies notification under the 
Agreement on Subsidies and Countervailing Measures in October 2011, but adds that "in many cases 
there are no figures on the magnitude of support pr ovided, and no information is available on 
subsidies ... provided at the provincial level, which are believed to be considerable".  It is also 
disturbing that, in several instances, China failed to  provide information requested by the Secretariat 
for its Report.  In a similar, disturbing vein, the United States notes that it filed a counter notification 
under Article 25.10 of the SCM Agreement in Sept ember 2011, detailing 200 central and sub-central 
government subsidies – including subsidies that appeared to be prohibited – that had never been 
notified by China.  In these circumstances, Articl e 25.10 called on China to notify those subsidies  WT/TPR/M/264 
 Page 13 
 
 
  promptly.  However, in its subsequent subsidi es notification, China included only 10 of the 
200 subsidies identified in the U.S. counter notification and has not taken any further action.  In addition, China has failed to notify large fisheries su bsidies, even though China is the world's greatest 
fishing power and the Secretariat's Report cites a study indicating that the Chinese Government's 
support of this industry has exceeded $4 billion per year.  The United States expects China, 
commensurate with its fishing status, to notify all of  its fisheries subsidies promptly and to make a 
significant contribution in the WTO's ongoing work  toward ambitious and effective disciplines on 
fisheries subsidies. 
67. The United States would like to underscore th at these concerns about China's subsidies 
practices are far from trivial.  During China's te nure as a WTO Member, investigatory work by the 
United States has led to the filing of three WTO disputes involving allegations that China has 
employed scores of prohibited subsidies, both at the central government level and the sub-central 
government level.  In each dispute, China subseque ntly withdrew the challenged subsidies or removed 
export contingencies or local content requirements. 
68. In the area of services, the Secretariat's Report states that, "[a]ccording to the authorities, 
China's general policy is of gra dual, progressive, and ma naged opening, with a view to promoting 
development through a win-win strategy for bot h domestic and foreign services suppliers."  The 
United States' perspective unfortuna tely is less positive.  While Ch ina has increased market access in 
some sectors, our stakeholders' experience in  multiple sectors has shown that discriminatory 
regulatory processes, overly bur densome and capricious licensi ng and operating requirements, 
informal bans on entry and other similar problems fru strate efforts of foreign services suppliers to 
achieve anywhere near their full market potential in  China.  Key services sectors affected by these 
problems include telecommunications, banking, insuran ce, express delivery, electronic payment, legal 
and other services. 
69. In the area of agriculture, we note concer ns that China has still not fully embraced 
international standards and science-based rulemaki ng with regard to both sanitary and phytosanitary 
barriers and other measures.  For many agricultura l products, China remains an unpredictable market, 
largely because of selective intervention in the mark et by China's regulatory authorities.  Key U.S. 
exports adversely affected by these practices include beef, poultry and pork. 
70. Serious concerns also continue to arise in th e area of transparency.  China's notification 
practices at the WTO offer one example, not only wh en it comes to subsidies notifications under the 
SCM Agreement, but also agricultural support.  I ndeed, China, despite repeated requests from the 
United States and others, has failed to notify any agricultural support provided after 2008, even 
though it appears that China has significantly increased  its subsidies for many agricultural products in 
recent years –including what appears to be the world' s largest subsidies in the area of cotton.  China 
also needs to improve its notification practices  for proposed SPS measures and proposed standards, 
technical regulations and conformity assessment pro cedures.  At the same time, we recognize that 
China has improved its transparency on other fronts, particularly by publishi ng draft laws, regulations, 
and departmental rules for public comment more re gularly.  Nevertheless, improvements are needed.  
According to a recent study by the U.S.-China  Business Council, the National People's Congress 
(NPC) passed 9 trade-related la ws from March 2011 to March 2012 but  only posted drafts of 3 of 
them on the NPC website for public comment.  The same study found that only 49% of draft trade-related regulations and departme ntal rules had been published on the State Council's website for 
public comment. 
71. The United States is working bilaterally with  China to resolve our concerns through 
cooperative and constructive enga gement, using avenues like the U.S.-China Joint Commission on 
Commerce and Trade to seek pragmatic resolutions  to pressing trade issues and the U.S.-China 
Strategic and Economic Dialogue (S&ED) to he lp manage the complex U.S.-China economic WT/TPR/M/264 
Page 14  
 
  relationship on a long-term, strategic basis.   We note our appreciation for China's commitment at the 
most recent S&ED meeting to submit a comprehens ive, revised Government Procurement Agreement 
(GPA) accession offer, which responds to the requ ests of the GPA Parties, before the last GPA 
Committee meeting this year.  We look forward to an  offer from China that is of the same high quality 
of coverage as that provided by the GPA Parties.   
72. We also have made constructive use of othe r mechanisms where di alogue with China has 
failed to resolve our concerns.  Since China's l ast TPR in 2010, the United States has initiated five 
WTO dispute settlement cases against China. 
73. I note that two of the WTO cases recently brought by the United States reflect our continuing 
deep concerns about a pattern of Chinese Govern ment action that has seemed to emerge in recent 
years.  China seems to have reflexively resorted  to domestic trade remedy actions in response to 
legitimate actions taken by the United States or other trading partners under their trade remedies laws.  
In our view, this type of apparently retaliatory  conduct, which is specifically provided for under 
Chinese law, is at odds with fundamental WT O principles.  The WTO's dispute settlement 
mechanism, not the immediate initiation of a new trad e remedy investigation, is the appropriate means 
to try to resolve legitimate concerns  about a trading partner's actions.  
74. In conclusion, there can be no question about the ever-increasing impact of China on global 
trade and the operation and functioning of institutions like the WTO.  With such influence, of course, 
comes great responsibility.  We urge China to live up to the high expectations of its trading partners – 
and we look forward to working with China toward that end.   
SWITZERLAND 
75. Having weathered the impact of the 2008-2009 fi nancial crisis well - also due to massive 
governmental stimuli - China now seems to be faced by a lull in demand for its products both in Europe and America. China has thus shifted its focu s towards domestic demand, and rightly so in our 
eyes, since China still has vast untapped potential. We are watching attentively how this shift will 
affect trade with China, as well as investment by and in China. 
76. Despite all challenges, I am very pleased to say that bilateral econom ic relations between 
Switzerland and China are excellent: With a new record volume of bilateral merchandise trade 
amounting to 15.2 billion Swiss Francs during 2011 , China remained by far our most important 
trading partner in Asia. 30 years after a Swiss comp any formed the first ever Joint Venture with a 
Chinese company, Swiss enterprises continue to invest significant amounts in China. 
77. Thus, it comes, to no surprise that the ques tions Switzerland has submitted to China deal 
much with issues of transparency for foreign econo mic operators and investors. They range from the 
implication of potentially affected investors in pub lic consultations on new la ws, rules and regulations 
to registration and licensing requirements for traders before they can fill in customs declarations and 
receive official answers by customs. 
78. As the Secretariat rightly points out in diffe rent chapters, State Owned Enterprises and State 
Trading Enterprises still have a significant, in certain areas even a dominating or monopoly status in 
China. It is important to Switzerland that the public involvement in Chinese economy does not negatively affect the playing field for foreign co mpanies doing business with China. Switzerland is, 
therefore, interested in the latest developments  regarding state trading requirements notably for 
agricultural products and natural resources as we ll as the notification thereof. Moreover, the 
Secretariat's report states that there may be openi ngs with regard to investment in some state-
controlled enterprises. Depending on which sectors these enterprises are in, I believe there may be an 
interest also of Swiss investors. Further questi ons cover the use of subsidies and other government  WT/TPR/M/264 
 Page 15 
 
 
  assistance, or the scope of government procuremen t in sectors where State Owned Enterprises form 
de facto  utilities through their monopolies. Systemically , the full implementation of the basic WTO 
principle of National Treatment remains a challenge. 
79. Furthermore, Switzerland and its high-tech industries are following with great attention the 
developments in China regarding access to rare earth s. Let me raise one other, particularly Swiss 
issue: The Secretariat's report makes reference to the unchanged Chinese "consumption tax". 
Switzerland is particularly interested in shedding some light on the possibility of abolishing (or at 
least adjusting) this excise as re ferenced by the Secretariat.  
80. As you are doubtlessly aware, Switzerland negotiates a comprehensive Free Trade Agreement 
with China in order to further enhance our already close bilateral relations. We are confident that we 
will be able to conclude this Agreement in the near future. 
81. Before I conclude, I would like to highlight the crucial role China has played since its 
accession to the WTO. A mere ten years have changed not only the workings of this organisation but 
world trade itself. Located in the heart of Europe , also to Switzerland the shift towards Asia is a 
reality and its impact is tangible. A strong rules-based system, as provided by the WTO, remains 
crucial for a small but highly integrated and open trading economy like Switzerland. And I am 
convinced that it will also remain crucial to a tr ading powerhouse like China. We look forward to 
pursuing and further enhancing our co-operation,  and call on all Members to care for a strong 
multilateral trading system. 
INDIA 
82. Allow me to begin by congratulating China on completing 10 productive years of its 
membership in the WTO during which it has been  actively engaged in the DDA negotiations and 
contributed effectively to strengthening the mu ltilateral trading system. We appreciate China's 
constructive involvement in the process to ensure a balanced and expeditious outcome in accordance 
with the DDA mandate and based on progress already made, while respecting the principles of single undertaking and multilateralism. China's commitment to the development agenda has been extremely 
encouraging to the group of developing countries  and LDCs in particular. We share China's 
sentiments on concluding the DDA and preserving the credibility of the WTO. We also commend the positive role played by China in assisting accession of LDCs to the WTO and the recent round table 
organized in Beijing on the subject. In this context,  I would like to place on record our appreciation of 
the deep commitment and role played by Ambassador Yi Xiaozhun and his outstanding team in Geneva in strengthening the mu ltilateral trading system and in the ongoing Doha Round Negotiations. 
83. For India, China is a close partner, bila terally, regionally and multilaterally. We share 
multifaceted and long-standing ties with China deep r ooted in history. As a neighbouring country, we 
have a mutual stake in each other's progress and pros perity and there is a lot we can learn from each 
other's development experiences.  
84. On the bilateral front, our trade has been gr owing exponentially. China is India's second 
largest trading partner with a bilateral trade of US$63.1 billion in 2010- 11 (April 2010-March 2011) 
registering a growth of 48% from the previous  year. This included India's exports worth 
US$19.6 billion and imports from China worth US$43. 48 billion resulting in a negative trade balance 
of almost US$20 billion.  
85. We are aware of the huge challenge this poses for our policy makers. Market access for 
Indian agro exports and pharmaceutical products re mains a matter of concern.  Both sides have been 
working through various channels to remove barrier s to trade and bring down the trade deficit. The 
Joint Economic Group (JEG) on economic relations and trade, is a ministerial level dialogue WT/TPR/M/264 
Page 16  
 
  mechanism, that has been in operation since 1988.  Separately, a Joint Working Group at the DG level 
is operational since 2003 for regular interaction and coordination on trade and economic issues.  
86. India and China have also set up a Strategi c and Economic Dialogue in 2010, which looks 
beyond the immediate bilateral issues and is a forum for both sides to discuss strategic macroeconomic issues impacting both nations as a r esult of the changing international economic and 
financial scenario, to share their individual best pr actices and to identify specific fields for enhanced 
cooperation, learning and experience sharing. Fi ve working groups have been set up under this 
dialogue to cover specific areas of cooperation.  
87. Growth in bilateral trade has le d to an increase in the presence of Indian companies in China 
and vice versa. For many Chinese companies in the telecom, power, cement, construction and 
automotive sectors, India is a promising investment destination. Indian companies are now allowed to 
access RMB denominated loans for up to US$1 bi llion from Chinese banks to finance equipment 
purchases. This decision follows from the BRICS ag reement in Sanya in April 2011 when it was 
decided that the BRICS economies would start lending to each other in local currencies and conduct part of their trade in domestic currency. 
88. It is a matter of great satisfaction that our relationship with China has now transcended the 
bilateral dimension and assumed global and strate gic significance. As partners under the BRICS 
framework, China and India are working on issues of global governance and sustainable development.  
89. China's growth story is truly remarkable draw ing admiration from all quarters. Its reforms and 
active participation in economic gl obalization have made China one of the fastest growing economies 
in the world. It is today the second largest economy  and a major driver of global growth. China's GDP 
achieved stable and rapid growth during the peri od under review. However, signs of downward 
pressure also began to emerge with the growth ra te gradually slowing down from 12.1% in the first 
quarter of 2010 to 8.9% in the last quarter of 2011. Th is continuing trend is a cause of concern not just 
for China but its trading partners as well.  
90. India appreciates the challenge of maintaining steady and robust growth in the face of rising 
inflationary pressures and an unfavourable external e nvironment. In this context, we welcome China's 
pursuance of a proactive fiscal policy and a prudent monetary policy to prevent large scale economic 
fluctuations. 
91. Home to 1.3 billion people or one fifth of the world's population, China's per capita GDP is 
still ranked 88
th in the world as per IMF data. As a fellow developing country, India fully understands 
the huge challenges confronting China in terms of ra ising per capita income and living standards of its 
people, fighting poverty and ensuring that development is balanced and sustainable. In this regard, we 
welcome China's increased public spending on health care and social security and congratulate China 
for solving the problem of adequate food a nd clothing for over 200 million impoverished people 
thereby realizing the UN Millennium Development Go al of eradicating poverty and hunger ahead of 
time. 
92. We commend China's commitment to promoti ng South-South Cooperation through various 
forms of assistance to developing countries and cong ratulate China on its duty free quota free scheme 
which is proposed to be extended to 97% of the tariff items exported by China.  
BRAZIL 
93. China has continued to post impressive economic growth rates in the two year period since its 
last TPR.  In 2010, China overtook the U.S. as the world's leading manufacturer, a position the U.S.  WT/TPR/M/264 
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  had held from more than a century, doing justice to those who called the "factory of the world".  In 
2011, China became the world's second biggest economy. 
94. Boosted by an impressive stimulus package a dopted in the wake of the 2008-09 financial 
crisis, China was the first country to emerge fro m the worldwide economic sl owdown that followed.  
Its GDP has grown 10.4% in 2010 and 9.2% in 2011, per capita income calculated on a PPP basis 
reached US$8,400, and its citizens continued to improve  their conditions of living:  since the start of 
Deng Xiaoping reforms in 1978, 600 milli on people were lifted from poverty. 
95. International trade has been an important factor  of China's economic growth, particularly after 
its accession to the WTO.  Bilateral and regional trade agreements complement China's overseas commercial strategy and offer it additional ways to expand and diversify its trade. 
96. In the last biennium, China has overtaken Germany to become the world's second largest 
exporter, and also ranks as the third largest importe r of goods and services.  Before the crisis hit, 
exports and imports combined represented around 60% of GDP.  Growing trade surpluses, powered 
by China's competitiveness in pr ocessed goods that corresponds today to 44% of Chinese exports – 
led to an accumulation of foreign reserves that ma ny saw as potentially unsustainable and risky. 
97. After 2009 this picture changed:  exports and imports weakened, with foreign sales 
recovering less quickly than imports.  As a result, China's trade surplus fell from 9% of GDP in 2007 
to 3.3% of GDP last year.  Although partly related to the crisis, this movement also reflected public 
policies designed to rebalance the economy toward s domestic demand, a very welcome development 
in China's efforts to attain healthy and sustaina ble growth.  Fast growth during 2010-11 has been 
accompanied by inflation and higher labour, land a nd other production costs.  As a result, China 
tightened fiscal and monetary policies. 
98. But the deterioration of Europe's financial hea lth led to a sharper than anticipated economic 
cooling, and in the last weeks there are signs of a ne w stage of policy easing, with cuts in interest rates 
and reserve requirements for commercial banks.  Th e challenge facing Chinese policy makers is not 
small.  The fine-tuning of measures to guarantee that  China remains one of the engines of the world 
economy is important for all countries gathered here and to our societies at large.   
99. Brazil subscribes to the views expressed in China' s Report that the interplay of several factors 
– quantitative easing and expansionist monetary policies, exchange rate  volatility, wild fluctuations of 
commodity prices, and attempts by developed countries to prevent manufacturing sectors from going overseas has led to a situation of intense international competition. 
100. In these times of uncertainty, economic slow- down and mounting protectionism – especially 
with massive market distorting subsidies – Brazil is pleased to note China's efforts to adjust the 
exchange rate of the renminbi and to bringing it closer to equilibrium level. Brazil commends those 
efforts and hopes that th ey will succeed fully. 
101. Brazil also shares with China the commitment to  a rules-based, multilateral trading system.  
As China, Brazil is deeply con cerned over the current impasse in the Doha Round negotiations and 
strongly believes that the conclusion of the DDA w ould bring in its wake expanded trade flows, 
higher investments and more job opportunities for all. 
102. China is today Brazil's largest trading partne r, accounting for 17.3% of Brazil's exports and 
14.5% of its imports in 2011.  Between 2007 and 2011, bilateral trade has climbed from US$23 to 
US$77 billion, an increase of 230%.  During that pe riod, Brazil's exports to China increased by 312% 
while imports increased by 160%.  Since 2008, Brazil has had a surplus in the bilateral trade.  In 2011, WT/TPR/M/264 
Page 18  
 
  such surplus reached around US$12 billion, accoun ting for 40% of the Brazilian trade surplus 
worldwide. 
103. It must be noted, however, that his performance of Brazilian exports can be largely credited to 
price rises in the top three products exported to Chin a, namely iron ore, soya bean products, and oil 
products.  Together, those three products alone repres ented almost 80% of Brazil's exports to China in 
2011.  All of them are commodities.  Conversely, Brazil's imports from China are almost entirely of 
industrial goods, with machinery and chemicals accounting for 55%. 
104. Bilateral trade has in brief been characteri zed by a systematic pattern.  Exports are 
concentrated on a small group of commodities where as imports are fragmented and consist largely of 
industrial products.  That pattern in Brazil's trade w ith China has given rise to some level of concern, 
particularly among those industrial sectors being faced  with the challenge of having to respond to the 
fast and increasing penetration of Chinese exports, such as, for example, textiles. 
105. However, as increased trade flows give rise to some bilateral frictions, Brazil and China are 
strengthening the institutional mechanisms fo r cooperation and dialogue both bilateral and 
multilaterally – in the BRICS and other multilateral fora.  Both countries are indeed working ever 
more closely to continue to stimulate bilatera l trade while adopting measures aimed at further 
diversifying it. 
106. President Hu Jintao's visit to Brazil in April 2010 signalled an important step towards 
strengthened cooperation in the most relevant areas, resulting in the signature of several agreements, 
such as a Joint Plan for 2010-2014.  During the visit of President Dilma Rousseff to China in 2011, dialogue was started on how to create additional opportunities in the Chin ese market for Brazilian 
products, ranging from regional jet ai rcraft to traditional commodities. 
107. Turning briefly to China's trade related polici es and measures, we note, in particular, that 
transparency could improve in some areas, especia lly:  (i) measures adopted by provincial and local 
government, (ii) customs regulations  and valuation procedures, and ( iii) agricultural disbursements. 
108. Regarding SPS inspection and approval pro cedures, Brazil acknowledges that progress has 
been made and expects that continued technical engagement from both parties will allo for the 
expansion of bilateral trade in the agricultural and food sectors. 
109. In the area of TBT, China and Brazil have recently taken important steps to increase the 
cooperation between their regulatory authorities and to seek to ensure the quality and safety of consumer goods.  In April 2012, a Memorandum of  Understanding was signed with the objective of 
promoting the conformity of mutually traded c onsumer goods to the relevant requirements in both 
countries.  Brazil is committed to working with China towards the successful implementation of this 
important instrument.   
REPUBLIC OF KOREA 
110. We find this TPR meaningful and significant as it provides Korea and other WTO Members 
with a good opportunity to better understand wh ere the Chinese economy stands and is headed, 
particularly in light of the recent tenth anniversar y of China's accession to this Organization.  An old 
Korean saying goes that "In ten years, even mountai ns and rivers change".  Indeed, the past decade 
has seen a sea change not only in the Chinese economy, but also in the global economic and trade landscape.  In 2001, China was the world's sixth larg est trading nation.  At present, it is the second 
largest.  During this period, China's exports rose n early six times, while imports increased by nearly 
the same order of magnitude.  WT/TPR/M/264 
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  111. China's remarkable economic traj ectory bears witness to the fact  that China's WTO accession 
and its subsequent economic re forms and liberalization have not only benefitted the Chinese 
economy, but have also made impor tant contributions to the development of the multilateral trading 
system and the growth of the global economy.  We share the high expectations that China, as a key 
player in the WTO, will continue to play a meani ngful role in the evolution of the global economy. 
112. We are pleased to note that China and Korea c ontinue to enjoy one of the most robust and 
prosperous periods of our bilateral history.  China is currently Kor ea's largest trading partner, while 
Korea stands as China's fourth largest trading pa rtner.  Bilateral merc handise trade reached over 
US$220 billion in 2011.  In a summit meeting held in Beijing last month, our two leaders agreed to work together to expand the bilateral trade volume to US$300 billion earlier than the previous target 
year of 2015. 
113. Korean investors have thus far invested over US$51.7 billion in some 45,000 cases, making 
China the second largest destination for Korean inve stment abroad.  Investment in Korea by Chinese 
investors cumulatively amounts to US$3.8 billion. 
114. It is against this backdrop that the trade mi nisters of our two countries announced the launch 
of the Korea-China FTA negotiations last month.  We very much hope and expect that the timely 
conclusion of the FTA negotiations will help deep en the Strategic Cooperative Partnership between 
the two countries.  We hope that the initiative will al so play its due part in helping advance trade 
liberalization as it will aim to achieve a comprehensive and high-quality trade deal while fully respecting WTO standards. 
115. Turning to China's overall economic perform ance, it is worth noting that China has 
maintained rapid growth during the period under revi ew.  It is particularly encouraging as China has 
posted strong economic growth despite the ongoing gl obal economic and financial difficulties, thanks 
to a good mix of substantial fiscal stim ulus and accommodative monetary policy. 
116. Having said that, we also think that it would be both necessary and desirable to pay heed to 
the various economic imbalances and challenges th at China would need to address, as has been 
repeatedly identified in the Secretariat reports for both the previous and present review periods.  We 
would appreciate it if the Chinese delegation coul d provide further explanations and insights 
regarding such observations as well as the specifi c policy directions the Chinese government is 
pursuing to address these issues. 
117. As far as China's trade policies and practices are concerned, we would like to recognize and 
applaud China's continued efforts to make them mo re transparent and predictable.  We hope that 
China will stay the course on its economic reform s and continue to open up its economy including 
through raising the level of overa ll liberalization, as highlighted in the Twelfth Five-Year Economic 
and Social Development Plan released last year.  
118. We also take due note of China's trade and investment policy directions as put forward in the 
Plan, such as keeping its trade in balance through expanding impor ts and encouraging its domestic 
enterprises to invest more actively in foreign c ountries.  These policies are expected to facilitate 
China's efforts to recalibrate its economic developm ent paradigm so that China can better respond to 
the challenges and opportunities arising in this rapi dly changing environment, while helping achieve a 
balance in international trade as well. 
119. Equally noteworthy are China's strenuous efforts to expand its trade in services as they will 
help improve the overall trade structure of China, wh ich has been dependent primarily on the trade in 
manufactured goods, and, as a result, create new oppor tunities for China to expand trade with its 
trading partners including Korea. WT/TPR/M/264 
Page 20  
 
  120. Having said that, let us turn to some of the i ssues that are of particular interest to us 
concerning China's trade policy. First of all, we do  appreciate China's genuine efforts to continue to 
improve its legal and institutional framework aimed at helping better protect IPRs.  Nevertheless, 
there are calls for the Chinese government to do more to strengthen the enforcement of relevant laws 
with a view to substantially enhancing IPR prot ection.  We expect and trust that the Chinese 
government will reflect such calls in a timely and appropriate manner as it works to strengthen IPR 
protection. 
121. Second, we hope that, as China continues to open up its services market, broader market 
access opportunities will be offered in the foreseeab le future in sectors such as finance and 
construction.  Without doubt, broader market ac cess would go hand in hand with equal treatment 
between foreign and local companies and great er transparency in licensing procedures. 
122. Lastly, Korea shares the view that it is impor tant to achieve tangible progress in the ongoing 
negotiations regarding China's accession to the GP A.  Korea will work closely with other GPA 
Members and, particularly, China to make that happen. 
123. We are encouraged by the closing comments in  the Chinese Government Report that it will 
participate actively in global economic govern ance and regional economic cooperation, while 
opposing protectionism in all forms, and promoti ng the development of a balanced, inclusive and 
mutually beneficial multilateral trading system. Welcoming this policy direction, we very much hope that China, as a key player in the WTO, will continue  to play an important role in helping not only 
strengthen the WTO multilateral trading system as  a whole, but also advance the DDA negotiations. 
JAPAN 
124. While Japan recognizes that trade and investment liberalization and improvements of 
measures have been made by China, Japan still has concerns regarding trade-restrictive policies and 
measures; transparency and predictability;  and al so we have concerns in specific policy areas.   
125. As the first part of my statement, I would like to touch upon our concerns on trade-restrictive 
policies and measures in three areas.  First, Japan is concerned about various export restrictions, such 
as export duties, quantitative restrictions and a minimum export price system imposed by China on non-ferrous metals. These export restrictions also exist on other types of raw and related products, 
such as coal, chemical fertilizers and natura l sand. These measures raise concerns over their 
consistency with the WTO Agreement including Chin a's Protocol of Accession. This March Japan, 
together with other WTO members, requested consu ltations with China on export restrictions on rare 
earths, tungsten and molybdenum under the DSU. Japan urges China to withdraw all export 
restrictions which appear to be inconsiste nt with the WTO Agreement including China's 
commitments. 
126. Secondly, Japan very much hopes for Ch ina's early accession to the Agreement on 
Government Procurement (GPA) with a high degree of commitment, especially in terms of coverage 
of local government and state owned enterprises (S OEs). Japan is willing to discuss China's latest 
revised offer at the coming GPA meeting and expects that China will further revise its offer.  In this 
respect, Japan urges China to bring its government  procurement regime, which gives priorities to 
domestic products and services, in line with the GPA principle of non-discrimination.  
127. The third point concerns trade remedies. Nowa days, China is one of the top five frequent 
users of AD measures. Japan has serious concerns with Chinese practices from the view points of due 
process and transparency in light of the AD Agreemen t. Specifically, we have two points. Firstly, in 
their causations analysis, China should sufficiently separate and distinguish the injurious effects of 
dumping from other factors. Secondly, Chinese authorities should disclose sources of the Facts  WT/TPR/M/264 
 Page 21 
 
 
  Available used and margin calculations in their disc losure of essential facts, so that the interested 
parties can properly defend their interests. We ha ve experienced that the Chinese authorities did not 
disclose them while they reject the use of da ta submitted by cooperating Japanese exporters. These 
problematic practices could easily lead to unjustifiable and unnecessary use of AD measure. Japan strongly requests China to improve its practices.   
128. The second part of my statement relates to transp arency and predictability.  Firstly, China has 
made a commitment to publish proposed measur es for public comment. Japan agrees with the 
Secretariat's Report that these are not fully implemented yet. Japan also recognizes various notifications to WTO committees by China. However, there still remain a lot of technical standards, 
including local ones, recent subsidies and other measur es to be notified. Japan continues to urge China 
to duly comply with its accession commitments on tr ansparency and notification obligations under 
WTO agreements.  
129. Secondly, lack of transparency and predic tability are substantial issues for conducting 
business in China.  In China, interpretation of la ws and regulations often varies across regions or 
offices. This is particularly problem for custom offices. Japan urges China to address this issue by 
clarifying criteria and interpreta tion of laws and regulations, and by replying to business in writing. 
Another issue is the enforcement of laws and regula tions at very short notice. Japan invites China to 
consider sufficient grace periods.  
130. As the third part of my statement, I would like to express our concerns in five specific policy 
areas. Firstly, with regard to services and invest ment policy, Japan welcomes the recent speech by 
Premier Wen Jiabao, to further open up the service sect or. However, Japan consid ers that there is still 
room for improvement in financial, telecomm unications, logistics and construction services.  
131. Secondly, while there has been improvement, in fringements of IPR continue at a significant 
level. Protection of trademarks, copyrights, technol ogies, know-how and trade secrets is a concern for 
investing in China. Japan therefore hopes that China will strengthen enforcement and criminal 
punishment. In respect of well-known trademarks ou tside China, Japan rec ognizes China's efforts to 
enhance their protection. However, there are still registered trademarks which are well-known 
Japanese trademarks or names of regions and provin ces. Therefore, Japan encourages China to further 
strengthen its efforts in this area.  
132. Thirdly, in the area of standards, certain technical standards appear to be more trade-
restrictive than necessary in light of the TBT agreem ent. Japan also urges China to take measures to 
reduce the burden of China Compulsory Certificates (CCC) in terms of time and cost due to their 
complexity. As for SPS areas, Japan requests China to relax and withdraw import restrictions on 
Japanese food and agricultural products introduced af ter the accident at the Fukushima nuclear power 
plant.  
133. Fourthly, as for customs, Japan requests that  entry be allowed in bonded areas without the 
establishment of local presence and to allow cust om clearance agents to engage in "through 
transportation service", which is currently  only permitted for shipping companies. 
134. Fifthly, Japan invites China to explain whethe r its taxes, regulations and other measures are 
non-discriminatory and equally applied between SOEs  and foreign competitors. According to the 
OECD report, SOEs in China receive preferential stat us in evaluation of risk in loan classification by 
Chinese banks. This causes con cerns to Japanese companies. 
135. To conclude, Japan appreciates China's trade and investment liberalization efforts during last 
10 years. This has brought China to the second largest trading country in the world. It is our strong WT/TPR/M/264 
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  expectation that China will assume greater res ponsibility corresponding to its significance in the 
multilateral trading system. 
PAKISTAN 
136. This Trade Policy Review is taking place in difficult times for the global economy. 
Protectionist sentiments are vivid in the economic dow nturn in all the continents, for the first time. 
The current impasse in the Doha Round is some times considered as a consequence of global 
economic turmoil, paradoxically; however, forwar d movement on the DDA can put a stop to the 
decline. 
137. During the period under Review, Chinese merchand ise trade surplus con tinued to fall, which 
we are witnessing since 2008. The macroeconomic indi cators, however, have remained stable due to 
the policies, which stimulated domestic cons umption and investment. Simultaneously, high 
commodity prices and volatility in the global economies  increased pressures of inflation, which led to 
tightening of fiscal and monitoring policies. No twithstanding these elements, Chinese economy is 
moving forward at about 8% this year. 
138. In the 12
th Five Year Plan, China has embarked upon reforms in a number of areas, which 
include reforms in the administrative system, stat e-owned enterprises, focussing on restructuring of 
large SOEs with the introduction of corporate and share holding system, and to realize diversification 
of investors. In this manner, non public sector would be encouraged. Reforms in many behind the 
borders policies in the areas of fiscal and taxation system, social security, medical and health care 
system are also important initiatives for investment  in these areas. Chinese tr ade surplus may further 
decline but would make China even a stronger player  in the international arena. Besides, a more 
focussed attention to trade in services will in crease Chinese global presence even further.  
139. Improving trade financing and trade facilitation is another key strategic objective of the 
Chinese economic policy. There are efforts to refo rm the customs clearance, quarantine and quality 
inspection. This is an area which w ould require greater attention by China to further reduce the cost of 
doing business by reducing the time and the cost associated with the clearance of merchandize from 
the ports. Improvements in infrastructure, proce dures and regulations would further benefit the 
Chinese economy. 
140. The foreign investment policy direction has also undergone a reform process; the new 
Catalogue for the Guidance of industries for Forei gn Investment which came into force on 30 January 
2012 is an improvement to the previous catalogue. This new version is aimed at opening up more 
fields to foreign investment; there is no new regulati on to restrict the existing access but in fact there 
are some autonomous opening up in certain areas.  
141. Before concluding my statement, I would also like to appreciate the role of China in the 
multilateral rule-based system. While China has cons iderably liberalized its trading regime, after 
becoming a WTO Member and unilaterally through  various RTAs, it is fully committed to the 
successful and balanced conclusion of the Doha R ound. China now represents the changing economic 
reality in the world and has to play the role of a "leader" at the multilateral level.  In the person of 
Ambassador YI Xiaozhun, China has a statesman and experienced negotiators to  perform this role in 
the most effective manner. His contribution to the system as well as his team deserves special 
appreciation.  
NORWAY 
142. First let me refer to Norway's bilateral trade re lationship with China. China is Norway's third 
largest source of imports and 10th largest export destination. We are pleased to observe that our  WT/TPR/M/264 
 Page 23 
 
 
  bilateral trade in goods actually increased by 16 % in 2011, despite the economic turmoil. The trade 
patterns reflects both the diversity and the comple mentary nature of our economies – a pattern we 
welcome and hope will continue in spite of recent strains.  
143. China and Norway are both world leading mariti me nations, and cooperation is extensive and 
well established.  Our cooperation spans small and large co mpanies in the whole spectre of the 
maritime sector. While this collaboration is highl y appreciated, we are concerned by reports of 
significant delays and even refusals to issue Lette rs of Invitations and visas to Norwegian personnel 
serving on foreign vessels operating in Chinese wa ters. We trust these incidences are due to 
misunderstandings and that this will not reoccur. 
144. China is the largest provider of wind energy in  the world. Our countries share both ambitions 
and interests as developers and provi ders of clean energy. We see considerable benefits in closer 
bilateral cooperation, and call upon China to main tain a positive and transparent environment for 
investment in this area. Likewise, we underline our considerable complimentary interest in oil and gas 
production. The fact that China has become the larges t consumer of energy in total numbers also gives 
China a particular responsibility in ensuring sust ainable extraction of energy, as well as working 
towards a stronger regime for global energy security. 
145. Norway continues to stress the importance of transparency, pr edictability and non-
discrimination as the main pillars of the intern ational trade regime. Norway commends China for 
continuing the process of opening up the economy and its  efforts to facilitate trade and investment. 
We also note the efforts described  in the secretariat's report regarding procedures and formalities for 
Customs clearance, quarantine and quality inspection;  this is real trade facilitation. We acknowledge 
these efforts, but at the same time would point out that there are still certain challenges related to a 
uniform, transparent and proportional application of trade policy.  
146. As stated in the Government Report, China has put sustained efforts in its accession to the 
Agreement on Government Procurement. Norway wants to underscore the importance of China 
becoming part of the GPA and would very much lik e to welcome China as a future party to the 
agreement. We look forward to receiving a new revised comprehensive offer in the accession process 
that will significantly advance its accession.  
147. Norway has submitted specific questions and co mments about China's trade and investment 
policies and procedures. I would like to highlight a fe w of those issues today.  As mentioned, Norway 
commends the gradual steps that China has continued to take to open up its economy to international 
trade and to relax restrictions on FDI in services. Ho wever, there is still some way to go. For instance, 
the laws and regulations related to China's ba nking sector require a multitude of licenses for the 
operation of different banking services. This complicated regulatory framework, and lack of transparency, is particularly challenging for smaller banks.  
148. In a world where value chains are increasingly global, the use of international standards is 
fundamental to promote and sustain a healthy trade pattern. China is a key player in the global 
production and value chains – participating in ever y sector. National standards and related mandatory 
certification schemes increase costs and hamper business development. While we acknowledge that 
China has progressed on the use of international sta ndards – there is still a need to reduce the actual 
cost of doing business by simplification of recognition and testing procedures.  
149. Despite the general increase in trade between No rway and China, there are a few areas that 
deserve attention in order to iron out some complications. Specifically, I am referring to trade in fresh 
chilled salmon where testing and quarantine measures continue to concern us. While it goes without 
saying that Norway recognizes each WTO Member's right to set their own level of risk, we are 
concerned about the justification, proportionalit y of the new procedures and of the lack of WT/TPR/M/264 
Page 24  
 
  transparency surrounding it. The issue has been rais ed a number of times in the context of the SPS-
committee and we strongly regret that the Chinese has not yet responded favourably to Norway's 
concrete request for a bilateral meeting between tech nical experts, neither in Geneva nor in Beijing. 
150. We also note that the regulatory framework for import of food to China is currently being 
reviewed. We urge China to ensure that any new regulatory system is applied in a transparent, non-
discriminatory way, and that the procedures themse lves do not become a hindrance to trade. Welcome 
further dialogue. 
151. China states in the Government Report that th e rules negotiations are important to tighten 
disciplines and reduce abuse of trade remedies. This is  a point of view that Norway fully shares. We 
have noted though, that, according to the Secretar iat's report, China does not apply the lesser-duty 
rule. We would urge China to consider introducing the lesser duty-rule in order to potentially avoid 
that anti-dumping measures contain a protectionist element, which implicitly would be the case if the 
applied dumping margin exceeds the injury margin.  
152. Both China and Norway attach great importa nce to the multilateral system and to the 
importance of successfully advanced multilateral trad e negotiations. We are pleased to note that China 
has generally resisted a protectionist response the gl obal economic crisis. As China is one of the major 
players in the world economy, it is of the utmost importance in the current volatile economic situation 
that China continues to work towards op enness and remains outward-oriented.   
153. In closing, Norway appreciates this opportunity to comment on China's trade policy. We 
welcome further cooperation on trade matters with  our Chinese colleagues and wish you a successful 
trade policy review.  
BRUNEI DARUSSALAM ON BEHALF OF ASEAN 
154. Since China's last Review, the continual deve lopmental achievements made, have brought 
numerous benefits for the development of their economy and people, where China continues to be 
open and has managed to strengthen foreign trade. Despite the challenging economic times, China has 
also remained committed to the multilateral trading system.  
155. With regard to China's growth, ASEAN notes from the Secretariat Report that in terms of real 
GDP, China's growth has fluctuated immensely with an average year-on-year growth of 
US$500 million annually since 2007.   Annual GDP growth has also been consiste nt at an average of 
9%.  
156. China has always been and remains a very important economic and regional partner for 
ASEAN. Trade and economic ties between ASEAN a nd China have been growing rapidly over the 
past years, particularly with the signing of the Framework Agreement on Comprehensive Economic 
Cooperation in 2002 to the establishment of the ASEAN-China Free Trade Area in 2010. As a result, 
China became ASEAN's second largest export destin ation in 2010 and maintained its position as the 
largest trading partner accounting for 11.3% of total trade. ASEAN was China's fourth largest trading 
partner in 2010 and for the first half of 2011, moved up a notch as China's third largest trading 
partner.  
157. Amongst China's trade policies and measures, an ar ea of particular interest to ASEAN is their 
customs procedures. We are supportive of China's "S ingle Window" project for customs clearance, as 
ASEAN is also working towards the establishment of an ASEAN Single Window. Another area of 
interest is the agricultural sector . China's agricultural sector shows significant growth, contributing to 
10% to GDP and roughly 40% of all employment. This  is a good indicator to ASEAN as agriculture is 
one of the 11
th priority areas of the ASEAN-China cooperation.  WT/TPR/M/264 
 Page 25 
 
 
  158. ASEAN also continues to work together with China, along with Japan and Korea under the 
ASEAN Plus Three Cooperation Framewor k, where this year marks the 15th year of cooperation. 
Under this cooperation framework, where one of the strategic areas is to strengthen food security, the 
ASEAN Plus Three Emergency Rice Reserve Agreement was signed in 2011.  
159. ASEAN is happy to note that China remains an  active participant in the multilateral trading 
system and has been supportive of the need to  push forward with the DDA negotiations. ASEAN 
would particularly like to thank Ambassador Yi and his delegation for their tireless efforts and constructive engagement with dele gations, including individual ASEAN Members, here in Geneva. In 
conclusion, on behalf of ASEAN countries, we would like to express our appreciation for China's 
continued and constructive partnership. 
SINGAPORE 
160. We fully associate with the ASEAN statement delivered by Brunei. Singapore's bilateral 
economic relationship with China has been one underp inned by strong trade and investment linkages.  
Last year, China was our third largest trading partne r, and bilateral trade increased 6.4% year-on-year 
to US$80 billion. 
161. In terms of investments, China remains Singa pore's top investment destination. Cumulative 
investments amount to US$53 billion in nearly  20,000 projects.  Investments in 2011 were 
US$6.1 billion, an increase of 13% from 2010.  These investments are also becoming more diversified geographically.  In Singapore, we have also seen th e results of China's proactive encouragement for 
Chinese companies to "Go Global".  More th an 4,000 Chinese companies base themselves in 
Singapore, leveraging on our connectivity as a platfo rm to expand operations into regional markets. 
162. Since 2009, the China-Singapore FTA has also bol stered our economic ties. With a built-in 
review process to continually improve the qualit y of the FTA and oversee its implementation, the 
agreement serves to benefit our companies with greater market access, and reduction of business costs. This has augmented the strong trade a nd investment linkages be tween our two business 
communities. 
163. China's importance as a trade and investment pa rtner for all WTO Members is evident.  We 
are therefore not alone in welcoming both the refo rms and gradual economic opening that China has 
undertaken, and their plans for the future. The repor ts cite that China has undertaken liberalisation 
efforts in reducing state-owned enterprises, and re moving foreign equity limits in various services 
subsectors. In particular, Singapore is also warmly welcomes China's ambitious plans to accelerate development of its services sector.  The recent Beiji ng International Fair for Trade in Services was a 
public testimony to China's commitment to grow its  services sector value-added output to 47% of 
GDP by 2015. The services sector is one major engine  to our own economy, and we can attest to the 
value that the services sector can bring.  
164. Taken together, these represent the growing ope nness of China's economy as well as China's 
firm commitment to improve its trade and investme nt policy regimes, even amidst the challenges it 
faces at the national level. Assistant Minister Yu's remarks this morning clearly show an 
understanding of the need to continue progressive liber alisation, and that the old thinking that exports 
are good and imports are bad no longer holds. 
165. As the world's second largest exporter of goods and services, it is also important that China 
continues its pursuit of progressive policies, for instance in its TBT and SPS regulations; and make 
further improvements in competition policies and inv estment practices.  Transparency and provision 
of information are also important for predictability  to businesses, and part of a conducive investment WT/TPR/M/264 
Page 26  
 
  climate.  We look forward to more good news in th ese areas, including the day when China joins us as 
one of the Parties to the Government Procurement Agreement. 
166. Today's discussion has given us a regular oppor tunity to better understand the situation in 
China.  We hope that Members' feedback today will help China's domestic reforms as you continue 
your work towards a pro-business environment that stimulates sustained economic development.  We 
appreciate being able to contribute to this exercise,  and we extend our best wishes to China in their 
fourth Trade Policy Review.  We will continue to  cooperate closely with Ambassador Yi and his 
dynamic team here in Geneva. 
UKRAINE 
167. China's TPR is always an event of special a ttention and importance, since China has become 
the world's second largest exporter and remains the third largest importer of goods and services 
playing a very influential role in the global ec onomy.  China remains one of the biggest trading 
partners of Ukraine. The development of comprehensive cooperation is based on similar 
understanding and practical approaches as regard s resolution of current international issues. 
168. The legal framework of bilateral relations be tween Ukraine and China amounts to more than 
200 documents that regulate relations in different areas, which also cover the levels of regional 
authorities, enterprises, cities (Kyiv and Sanya). 
169. During 2010-12, a number of important bilate ral documents were signed on credit and 
financial issues, in particular concerning further implementation of "Air Express" project (held by Ukraine) as well as cooperation in trade, investment, mining and agricultural areas. 
170. We are proud to state the absence of sharp unresolv able issues to date in bilateral relations 
and underline the considerable potential underpinni ng trade and economic, scie ntific and technical, 
humanitarian relations, which will be  definitely further developed. 
171. Given the above-mentioned facts, Ukraine tak es specific interest in  the new facts and 
developments in China's trade regi me, and this TPR provides such an ample opportunity to review it.  
Since the last TPR in 2010, China's economy continue d to develop at a fast yet steady pace, making 
important contributions to the world economic r ecovery and development. China continues to 
promote bilateral and regional economic and trade co operation, as well as the gradual liberalization of 
its international trade and investment regime. 
172. At the same time there are some facts that have  drawn our closer attention and we would like 
to indicate some still existing issues as follows:  applied MFN tariffs remain close to China`s bound 
rates, and the simple average applied MFN is unc hanged, at 9,5%.  No major changes to China's 
policies or programmes to support agriculture. It c ontinued to use a broad range of measures that 
include tariff protections, minimum purchase pric es for rice and wheat, government purchase and 
storage for these commodities, input subsidies and di rect payment. No information is available on 
subsidies and other government suppor t provided at province level, which are believed significant.  In 
some areas (e.g. state trading) notifications are considerably outdated or overdue.  China's export 
regime is complex and measures continued to be used to manage certain exports. 
173. Ukraine believes that further f aster liberalization of China's services industries, such as 
banking, insurance, telecommunicati ons and postal services is an important contribution to sustainable 
growth of the global economy. We urge China to further liberalize trade in light of the ongoing negotiations and push for an ambitious Doha Round outcome.  WT/TPR/M/264 
 Page 27 
 
 
  CANADA 
174. The Secretariat and the Chinese delegation will note that Canada has taken the opportunity 
offered by this review of China's trade policies to  ask a great many questions, which is commensurate 
with the importance of China in the WTO.  Canada  is doing so in a spirit of friendship and close 
bilateral collaboration.  As our tw o countries broaden and deepen thei r investment and trade relations, 
Canadians wish to gain a better understanding of th e policies, laws and regulations that shape the 
constantly evolving environm ent of Chinese trade policies. 
175. The commitment of our two countries to a multilate ral trading system that is robust and based 
on clear rules has made it possible to strengthen our fast-expanding trade relations.  During Prime Minister Stephen Harper's last visit to Ch ina, both our countries announced the conclusion of 
substantive negotiations on the B ilateral Agreement on the Promo tion and Protection of Foreign 
Investment.  We also agreed to launch explorator y talks on the deepening of our trade and economic 
relations following the conclusion of a joint st udy on the sectors in which our economies are 
complementary. 
176. A decade after its accession to the WTO, Ch ina has demonstrated its commitment to 
implementing the economic, institutional and legislat ive reforms required for its full participation in 
the rules based international trading system.  This monumental task has been highly beneficial to 
China and to all WTO Members.  During this pe riod, China and its population have witnessed 
unprecedented growth and China's importance to WTO Members as a trading partner has grown 
steadily.  The volume of trade with Canada is no exception to that rule.  China has now become 
Canada's second largest partner as pertains to th e goods trade, preceded only by the United States.  
The volume of trade quadrupled between 2001 and 2011.  In parallel with the expansion of the trade 
in goods, bilateral trade in services, as well as investments have also shown strong growth. 
177. Today China is the world's second largest econom y.  The rise of China's economic influence 
is attributable for the most part to the liberali zation of its economy, which has been undertaken in 
compliance of its WTO obligations.  Canada urges China to launch a renewed and ambitious drive to 
reform its policies and regulations so as to sustain th is growth and solidify its role as a driver of the 
world economy. 
178. Since China's last TPR in 2010, Canada is pleased  that China has affirmed its commitment to 
avoid protectionism and keep open its economy. For example, we note China's decision to de-link its indigenous innovation policy from government procurement. Not only is this policy change an 
important measure of China's incre asing transparency, but the new direction will help to ensure that 
policy development is consistent with China's e fforts to join the WTO Agreement on Government 
Procurement. Similarly, Canada welcomes China' s commitment to submit a comprehensive revised 
offer to the GPA by the end of the year. 
179. Canada also views China's decision to encour age foreign investment in a number of new 
sectors, through its December 2011 Foreign Investme nt Catalogue, as a positive development. By 
including such sectors as advanced  technology, energy efficiency, and environment protection in 
those now open to foreign invest ment, China has taken a step forw ard in improving its investment 
climate. Of course, there are more steps to be taken. There are more restrictions that could be removed, and further sectors that could be libera lized. For example, Canada hopes that China will 
focus its continued efforts to improve its investment  climate in areas of Canadian strength, such as 
mineral resources exploration and development. 
180. As we reflect on China's significant achievements of the last ten years, Canada wishes to 
stress the importance of redoubling efforts to ensure  that sub-national levels of government act in 
accordance with national policies. China's size, di versity, multiple levels of government and rapid WT/TPR/M/264 
Page 28  
 
  economic development present significant challenges to  policy coherence. To realise the benefits of 
trade liberalization, Canada encourages China to prioritize the clear implementation and enforcement 
of its international obligations across all of China's levels of government.  Othe rwise, shortcomings in 
the predictability and transparency of China's busin ess environment will continue to add to the cost 
and risks of doing business in China. 
181. As the Secretariat's report points out, China's regulatory process continues to pose challenges 
to the uninterrupted flow of goods and services. Requirements can be complex, lengthy and difficult 
to understand. These challenges affect a wide variet y of areas, from agriculture trade to certification 
requirements for finished goods.  Advance notificatio n and consultation prior to implementing new or 
revised regulations will help to ensure a smooth evolution of China's regulatory environment, 
allowing affected trading countries and their indus tries to provide comments or take appropriate 
action. Furthermore, Canada also encourages Ch ina to bring its policy relating to the China 
Compulsory Certification system in line with the international practice of accrediting foreign 
Conformity Assessment Bodies, in order to mini mize costly and lengthy duplication of work on 
certification.  Doing so would not detract from the objectives of protecting the health and safety of the 
public. Similarly, China's subsidy practices creat e significant impacts on global trade. Greater 
transparency of these measures is required.  
182. Canada also appreciates China's efforts to impr ove the legislative framework and enforcement 
of its intellectual property system. The 2011 Action Plan on Intellectual Property Protection, and the 
decision to make permanent the 2010 Special Campaign on IPR enforcement under the State Council, reflect an important commitment on the part of China to improve protection and enforcement of 
intellectual property rights. Canada looks forward to seeing sustained Chinese efforts to enforce IPR 
protection, particularly at sub-national levels.  The benefits will accrue to Chinese innovators and 
foreign rights-holders alike. 
183. In closing, Canada appreciates the effort that China has made over the last decade in meeting 
its WTO commitments, and we are optimistic China will continue on this path. Canada believes a 
robust, rules-based trading system is vital to the present and future  prosperity of trading nations.  
China has an indisputable role as a leader in a healthy, strong and functional multilateral system. In 
that light, Canada counts on China's commitment and active contribution to the WTO. 
MALAYSIA 
184. Malaysia and China enjoyed a long standing history of economic, social and cultural ties 
stretching as far back as the 15
th century. The economic and trade ti es between the two countries have 
grown stronger over the last 700 years, and now, Chin a is Malaysia's largest trading partner, largest 
export destination; and largest source of imports. In  2011, Malaysia's total exports to China stood at 
US$29.82 billion while our imports from China amounted to US$24.71 billion, growing by 19.82% and 19.91% respectively.  Appr oved manufacturing projects with participation by Chinese companies 
in Malaysia grew by 46% from approximately US$208 million in 2010 to US$377 million in 2011.  
185. Since 1985, Malaysia had concluded 28 bilateral agreements and MoUs with China, covering 
a wide ranging area of economic and trade coopera tion which among others include maritime, air 
services, science and technology, education, health, tourism and defense. Trade between Malaysia and 
China was further boosted with the conclusion of the ASEAN-China FTA in 2009.  
186. After successfully emerging from the global and fi nancial crisis with a strong growth in 2010 
and 2011, increasing global economic pressures have resulted in China lowering its prospects for 
annual growth to 7.5% for 2012. The slowing down of the Chinese economy would have serious 
repercussions on the global economy as China is wide ly seen as one of the strongest remaining engine 
that could shed some light on the gloomy global economy and hopefully drag it back from the brink  WT/TPR/M/264 
 Page 29 
 
 
  of recession. Thus, it is encouraging to note the recently announced domestic policies undertaken by 
the Chinese government in stimulating growth. It is hoped that China continues to find ways in 
addressing her economic imbalances, in reducing the large surplus of national savings over domestic 
investments and her over-reliance on exports as a source of growth.  
187. It is encouraging to note the improvements China had made in her trade policies since the last 
Review, which include the elimination or reducti on of export duties on 38 tariff lines, reductions in 
the number of state-owned enterprises, removal of  foreign equity ceilings in 11 sub-sectors and 
improvements to its intellectual property laws to  tackle intellectual property infringements.  
188. On the multilateral trading system, we continue  to see the critical role that China plays as a 
major developing country in both the WTO as well as  Doha negotiations. We would like to commend 
the active and untiring efforts of the Chinese Mission here, under the able leadership of 
Ambassador Yi in contributing and enriching the WTO work as well as the Doha negotiations here in 
Geneva. China's leadership role in hosting the recent Roundtable meeting on LDC Accession in 
Beijing is one shining example of China's key contri bution to an important agenda item of the WTO.  
189. There are several areas of interest to us whic h we wish to seek further clarification from 
China. These are with respect to China's domestic policies and practices which may have impact on 
bilateral, regional and multilateral trade such as  China's import licensing regime, trade remedies 
investigation procedures, intellectual property enforc ement at the sub central level, VAT rebates for 
exports and also the proposed tripartite FTA  with Japan and the Republic of Korea.  
COSTA RICA 
190. Relations between Costa Rica and Ch ina have grown closer and str onger at all levels in recent 
years.  We hope that the implementation of th e free trade agreement between the two countries 
on 1 August 2011 will contribute significantly to the prosperity of those relations, further increasing 
trade between both countries and maintaining and im proving the already fairly appreciable growth 
rates of our exports and imports, which grew a nnually by 28.5% and 29.1% respectively between 
2000 and 2011. 
191. I would now like to underscore some aspects of the Secretariat and Government Reports that 
were of particular interest to us.  Some of th ese have already been mentioned by preceding speakers, 
and I can therefore be brief.  We would firs t like to recognize the continued growth of the 
Chinese economy despite world economic conditions, and to underscore the important role that China 
has been playing in the WTO since joining the Or ganization.  We would further like to recognize 
China's efforts to minister to the needs of its poor est population groups and its work towards attaining 
the United Nations Millennium Development Go als of combating poverty and hunger, ahead of 
schedule. 
192. With respect to its trade policies, we view w ith interest the steps being taken to improve 
transparency by means of notice-and-comment pr ocedures in the drafting of trade-related laws, 
regulations and standards and we  hope that all trade-related in formation will be made publicly 
available. 
193. We also view with interest the international trade facilitation and customs clearance measures 
that have been implemented by China.  We woul d also like to have more details on sanitary and 
phytosanitary procedures and technical standards.  In  this regard, Costa Rica has raised a series of 
questions regarding certificates of preferential or igin, China Compulsory Certificates (CCC) and 
inspection and quarantine protocols.  We would also  like to have more ample information regarding 
the measures applied to the exportation of certain pr oducts, in particular, the administration of export 
quotas, the manner in which the State participates  in the exportation of these products and other WT/TPR/M/264 
Page 30  
 
  measures taken to restrict exports of products that require excessive amounts of energy and resources, 
are polluting, or are derived from non-renewable natural resources. 
194. One aspect that has attracted our attention is  that of notifications to the Committee on 
Agriculture regarding domestic support, the last  of which covered the 2005 to 2008 period.  
The Secretariat Report also points out that Ambe r Box support has increa sed in recent years.  
We would like to know when China intends to  notify support levels for 2009-2011, and what 
mechanisms China possesses for gua ranteeing that support levels  do not surpass bound levels. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
195. Since the last TPR of China, our bilateral ec onomic relationship has grown rapidly.  Right 
now, China is our largest trading partner and th e most important destination for our overseas 
investment.  In 2011, the total value of two-wa y trade between us amounted to US$127.5 billion. In 
the period 1991-2011, our investment in China r eached a cumulative total of US$111.7 billion.  
Moreover, the Economic Cooperati on Framework Agreement signed be tween us has been effective 
since 12 September 2010.  And, as the relationship h as grown it has steadily become more diversified 
and sophisticated.  With this in mind, we woul d like to see China continuing to pursue a more 
transparent and open-door trade regime.  My de legation has already addressed a number of written 
questions to China in advance, on issues of con cern to our business community. We thank China for 
their replies to our questions. 
196. I would also like to take this opportunity, to ask  China to provide us with information on three 
areas of its energy policy, as follows.  Firstly, the development measures under the 12
th Five Year 
Plan for Energy Technology issued in December  2011.  Secondly, the guaranteed full purchases 
system under the revised Law on Renewable Energy, which entered into force in April 2010.  And thirdly, the rules on the implementation of the " 36 clauses on Private Investment" for development of 
the renewable energy business.  We look forward to  the replies to these additional questions in due 
course. 
COLOMBIA 
197. China's growth slowed during the review period under the impact of the world economic 
crisis that is now affecting the major emerging ec onomies.  China has lowere d its 2013 growth target 
to 7.5%.  Although this is still an enviable figure,  a country that is home to 22% of the world's 
population – with high levels of poverty – can  ill afford a lesser economic performance. 
198. The world's most dynamic economy – its second la rgest exporter and third largest importer of 
goods and services – has moved from years-long growth of over 10% to 8% in the first quarter of 
2012.  That performance offered a foreboding of  a possible slowdown in the consumption of 
commodities such as copper, petroleum, coal and othe r minerals.  Nevertheless, some analysts see this 
business cycle as useful for examining whether th e policies of massive spending are yielding the 
hoped for results.  On 21 May last, however, th e Chinese Prime Minister announced that the 
Government was studying a new fiscal stimulus package worth some US$480,000 million to give a fillip to the economy. 
199. China's export restrictions on various commod ities used in the manufacture of articles for 
everyday use and technological products do affect trade in that they induce shortages and push up 
world commodity prices whilst securing a si gnificant advantage for China's products. 
200. Subsidies and other forms of Government suppor t are crucial elements in Chinese trade and 
industrial policymaking.  Hence the importance of  submitting complete and timely notifications.  
Although China submitted a new notification regardi ng its subsidies together with Government  WT/TPR/M/264 
 Page 31 
 
 
  support programmes for 2005-2008, we would be gr ateful if China would furnish more exact 
information regarding the scale of the support given, assistance at the sub-central level, and a notification of its subsidy programmes since 2009.  This is especially n ecessary when we consider 
that a fiscal stimulus package worth ¥4 billion was implemented during the period 2008-2010. 
201. As pertains to dumping, China is still by far the country against which the greatest number of 
anti-dumping measures are applied by Members.  According to the statistics available on the 
WTO website, 825 anti-dumping investigations have b een initiated against China, in other words, a 
single Member accounts for 20% of the total number  of investigations initiated by all 155 Members 
(3,922). 
202. During the period under review, China made ch anges to its agricultural policy that could 
negatively impact other countries, considering that China is one of the main  importers and exporters 
of agricultural products.  The measures involved in clude direct payments decoupled from prices and 
production, an increase in Green Box programmes, ma rket price support schemes, input subsidies and 
other forms of trade-distorting support. 
203. In an effort to combat infringements of inte llectual property rights, China amended a number 
of pertinent laws, including the Copyright Law, th e Regulation implementing the Patent Law, and the 
Regulation on the Customs Protection of Intellectual Property Rights.  We encourage China to continue those endeavours. 
204. Even as China makes gigantic steps forward, it must also meet enormous challenges such as 
income distribution, environmental degradation and the ageing of its population.  It must also strive to restore balance to its economy by achieving a more stable relationship between  external and domestic 
demand, and to create a more business friendly envir onment and improve the protection of intellectual 
property. 
205. The strategies to rebalance its  economy and to continue moving up the value chain thus take 
on crucial importance.  We welcome the intenti on to stimulate domestic demand, reduce dependence 
on the manufacturing sector and further develop the services sector.  Undoubtedly, greater 
liberalization of services in China, within the WTO framework, can help attain these goals, as well as 
speed up the process of accession to the Gove rnment Procurement Agreement (GPA). 
206. Moreover, although China has made significant headway, it still faces the major challenge of 
improving transparency and predictability.  We th erefore urge China to continue to work on 
submitting complete and timely notifications, prope rly disclosing all trade-related information, 
providing data at the sub-central  level and creating more opportun ities for consultations with its 
trading partners when initiating measures, amongst other things. 
207. Finally, we commend and thank China for its leadership with respect to the process of 
accession of least developed countries to the WTO through "China's LDCs and Accessions 
Programme".  Under this programme, the "Beijing Round Table on Best Practices in 
WTO Accessions" was held on 29 May last.  We hope  that it will give considerable momentum to 
accessions this year.  We also wish to acknowledge  the decision to grant duty- and quota-free market 
access to 97% of exports from LDCs, which is a clear example of leadership and responsibility at the 
world level. 
THAILAND 
208. We support the ASEAN statement rendered by H. E. Ambassador Kasmir han Tahir of Brunei. 
Although China and Thailand have just, for the past 30 years, formalized our long-lasting traditional 
relationship, our history in trade, commercial a nd business exchanges have been timeless.  During the WT/TPR/M/264 
Page 32  
 
  Song and the Yuan Dynasty, the Sukothai Kingdom in the 13
th century was the first to record the trade 
relationships between the two count ries, which have lasted for more than 750 years.  Both trade, 
social, and cultural relationships between China an d Thailand have grown immeasurably from that 
historic moment onward. 
209. The long trade history is now being confirmed with the present trade statistics, indicating that 
China, as Thailand's second largest trade partner, bo asts an increase of trade with Thailand by 26.85% 
from a total of approximately US$45.7 billion in 201 0 in the two-way trade to US$57.9 billion at the 
end of 2011.  In this strong an d meaningful trade relationship,  Thailand's exports accounted for 
US$27.4 billion and the imports from China were around US$30.5 billion. Goods which are traded 
between China and Thailand cover both industrial and agricultural pr oducts, including data processing 
machines, chemical products, tapioca products, sugar,  electrical machines, and fruits and vegetables.  
We are certain that, with the present economic growth  in Asia, our bilateral trade will be growing. 
210. The Secretariat Report endorses that China enjoyed the strong economic growth in the two-
year period under review, becoming the world's s econd largest exporter and remaining the third 
largest importer of goods and services.  Not only ar e we impressed by China' s continuing growth in 
trade and commerce in the global perspective, but  we also commend China's strong macroeconomic 
policy, her effort in making the drafting of China's trade laws timely and more transparent, with the 
notice-and-comment procedures, and her positive ad justment of the foreign investment policy. 
211. Echoing the ASEAN's statement, Thailand is ve ry appreciative of our regional integration 
with China having come into effect.  I am referri ng to the realization of the ASEAN-China FTA on 1 
January 2010, and the establishment of the A SEAN-China FTA Joint Committee in August 2011 in 
order to consolidate the progress already made an d to improve the quality and utilization of the 
Agreement.  In conclusion, Thailand appreciates its  longstanding relationships with China in trade and 
beyond, and in bilateral and through-ASEAN partnership. 
HONG KONG, CHINA 
212. Hong Kong, China maintains a close economic a nd trade relationship with China, which has 
been our largest trading partner since 1985.  We in  turn have consistently been among China's top 
three trading partners.  HKC is China's largest source of realised direct foreign investment, while China remains our most important external investor.  In 2011, our total trade with China topped US$442 billion.  China's rapid integration into the world economy, particularly after its accession to 
the WTO, has further strengthened the cl ose trade ties between our two economies. 
213. We acknowledge China's efforts in implemen ting measures and reforms to further its 
integration into the world economy, by increasingl y opening up its domestic market and improving 
transparency in its trade policy and regulations.  As a major trading partner of China, we hope its 
efforts currently under way to boost domestic consumption will mitigate the weakening global 
demand and create new opportunities for all WTO Memb ers to explore the country's huge market and 
development potential. 
214. Turning to specific aspects of Ch ina's trade policy, in respect of  investment, we are pleased to 
see various initiatives taken by China in encouragin g foreign investments, including the removal of 
foreign equity ceilings for certain sub-sectors, as well as decentralised and simplified verification 
procedures for foreign investment.  The transparen cy of the investment regime, however, remains a 
recurrent concern to many outside investors.  We look forward to China's continuous efforts in 
liberalising its investment regime and improving its  transparency to foster a more business-friendly 
environment for investors.  WT/TPR/M/264 
 Page 33 
 
 
  215. On services, I must start by congratulating Ch ina for its successful International Fair for 
Trade in Services held in Beijing last month.  Services now take up 43.1% of China's GDP and are 
expected to grow to 47% over the next few years.  It is particularly worth noting that the financial 
service sector is being opened up strategically.  We welcome this development.  There are of course still many areas where we see room for China to ope n up further and rationalise market access to 
certain services sectors.  We encourage China to k eep up with the liberalisation efforts.  This will 
facilitate a better balance to China's heavy reliance on low value-added manufacturing and 
"processing trade", while at the same time also benefiting global trade. 
216. Regarding trade facilitation, we are pleased with  China's efforts at streamlining its customs 
procedures, including adoption of the "classified cu stoms clearance" system.  We encourage China to 
continue its efforts in the area of trade facilitation,  as these will bring concrete benefits to trade in 
terms of savings in time and cost. 
217. We are also pleased to note that China supports giving priority to trade facilitation so as to 
advance the process of global trade liberalisation.  We will continue working closely with China 
towards the successful conclusion of the WTO negotiations on trade facilitation. 
218. We welcome China's active participation in the accession negotiations to the WTO 
Agreement of Government Procuremen t (GPA), and the effort to bring its legislative framework into 
conformity with the GPA.  As the Secretariat Re port notes, China's accession to the GPA will bring a 
"win-win" outcome for both China and all other GPA Pa rties.  We look forward to further plurilateral 
and bilateral discussions with China in the process, and to an early and satis factory conclusion of the 
accession negotiations. 
219. We recognise that China is often on the recei ving end of contingency trade measures but on 
the other hand, it has recently become a more regular u ser of such measures.  As a matter of principle, 
and in line with the recent APEC Trade Ministers'  Statement, we encourage all WTO Members to 
continue to exercise caution with respect to th e use of trade remedies, and to provide maximum 
transparency on the conduct of trade remedy measures. 
220. Regarding intellectual property rights, we are pleased to note that China has been 
strengthening enforcement, improving the administrati ve and legislative infrastructure, and fostering a 
favourable social environment for the protection and promotion of intellectual property rights.  China 
has made innovation a component of its "sustainable gr owth model" in its current Five Year Plan.  It 
is encouraging to note that the authorities cons ider intellectual property an essential element to 
achieve its goal.  We look forward to China's co ntinuing actions to enhance the protection of 
intellectual property rights. 
221. We thank China for its new notification of subs idies submitted to the WTO in 2011.  We note 
that the notification is not yet a complete one.  We also appreciate that for a country as big as China, it 
is a very challenging task to collate and notify the WTO of all its subsidy programmes in force at the 
national and sub-national levels.  However, given the systemic importance of the WTO's notification 
mechanism, we would encourage China to keep up the work on this front and strive to set a good 
example for other WTO Members, including the developing country Members. 
NEW ZEALAND 
222. China's impressive economic growth and developmen t has been driven by its integration into 
the global economy and its rapidly growing role in  international trade, anchored in its WTO 
membership.  As the world's second largest economy , largest exporter, second largest importer, and 
an increasingly active participant   in foreign dir ect investment, China's global economic significance, 
and its central importance to world trade, is undisputed. WT/TPR/M/264 
Page 34  
 
  223. China's importance globally is mirrored in its  economic relationship with New Zealand.  
China is our second largest trading partner, second  largest export market and largest source of 
imports. We take a close interest in developmen ts in China's trade policy and we enjoy positive 
cooperation through bilateral mechanisms.  Like Ne w Zealand, China has been a beneficiary of the 
multilateral trading system, and its commitment to the multilateral rules based system is to be 
encouraged. We joined other countries last year in congratulating China on the 10th anniversary of its 
accession to the WTO. 
224. As the Secretariat's report notes, in the peri od under Review China has made advances in 
areas such as liberalisation of services, reducing import barriers, development of capital markets and exchange rate reform.  We commend China on pr ogress in bringing laws and regulations into 
conformity with WTO norms and further opening of its economy to trade and foreign investment and 
encourage it to continue along this path. 
225. New Zealand notes and welcomes China's commitm ent to resist protectionist measures. As 
the global economy slowly recovers it will be importa nt for all members to maintain this commitment 
in both principle and in practice. As the Secretar iat's report notes, China has continued to expand its 
bilateral and regional free trade agreements. Tr ade under the Free Trade Agreement between New 
Zealand and China has weathered the recession well, with two-way trade increasing by 50% since the 
FTA's entry into force in 2008. The agreement has been implemented smoothly, and mechanisms under the FTA are working as intended.  
226. China responded proactively to the global reces sion through its stimulus measures, and in so 
doing significantly contributed to the global econom y. Though economic conditions remain difficult, 
it will be important to continue the process of economic reform and liberalisation. New Zealand 
welcomes China's goal in its 12
th Five-Year Plan to accelerate economic restructuring by boosting 
domestic consumption and balanc ing imports and exports.  New Zealand notes that the overall 
benefits of such reforms extend beyond economi c growth, to include positive impacts on the 
environment and on social harmony.  
227. In particular, New Zealand sees potential for fu rther reforms in agriculture and the services 
sector. Reforms in the agriculture sector would increase competitiveness and raise incomes in the 
rural sector, as well as supporting China's br oader goals of equality and increased domestic 
consumption. The services sector, which has histori cally been relatively constrained, will equally 
provide an important source of growth and employme nt in China, as it is further liberalised. Given 
China's importance in global fisheries, we enc ourage initiatives which reduce the pressure on fisheries 
that are overfished and which may include reduction of fleet capacity.  In this context, improved 
information on government support to the fish ing sector in China would be welcome.   
228. New Zealand welcomes the emphasis on renewa ble energy in China's medium to long-
term energy sector objectives as outlined in the Se cretariat's report and as a key goal of China's 
12th Five-Year Plan.  Encouraging green development and increased efficiency of resource use will 
not only sustain rapid growth but also address e nvironmental challenges w ithin and beyond China's 
borders.  
229. New Zealand welcomes a prominent role for China within the WTO.  New Zealand is a 
strong supporter of transparency mechanisms in th e organisation, including trade policy reviews and 
the notification processes.  These provide an important  opportunity for member to review the policies 
and practices of other WTO members.  In this contex t, we encourage China to ensure effective use of 
transparency mechanisms within the WTO including through continuing its efforts to ensure its 
notification obligations are fulfilled in a timely way.   WT/TPR/M/264 
 Page 35 
 
 
  230. New Zealand recognises China's achievements from over 30 years of "reform and opening 
up", and welcomes the Chinese Government's commitment to continuing reform and economic liberalization. New Zealand looks forward to furt her discussion of the issues we have raised during 
the course of this Review.   
DOMINICAN REPUBLIC 
 
231. In terms of its macroeconomic performance, we note with satisfaction that during the period 
under review China continued to achieve significa nt economic growth as a result of its own fiscal 
stimulus measures.  At the same time, those me asures helped push inflation above the 5% mark 
in 2011.  Out of genuine concern the authorities opted for more restrictive fiscal and monetary 
policies.  The goods trade surplus contracted further to stand at 4.3% of GDP in 2010.  Another 
disquieting factor is the structural imbalance in  the economy resulting from the sizeable surplus of 
domestic savings over domestic investment.  This s hould be corrected to make growth less dependent 
on external demand for Chinese manufactures. 
232. The Secretariat Report states that during the period under review, China made hardly any 
changes to its policies to liberali ze trade and international investme nts, and that the level of the 
applied MFN tariff is very close to the bound level of  9.5%.  The Report further states that China uses 
various non-tariff border measures such as import a nd export licensing and state trading to guide 
trade, though it does point out that not all trade-rela ted information is made publicly available.  It 
further mentions that subsidies and other forms of  Government support are important elements in the 
formulation of Chinese trade and industrial policies and that in many cases there are no figures 
available as to the scale of Government support to  industry.  We therefore call on the authorities to 
improve transparency and public acces s to information that affects trade and the economy, as this is 
the best way to correct such imbalances and foster trade flows on a fair basis. 
233. The Report also mentions that China has in creased Green Box support in the agricultural 
sector and also notes an increase in other forms of more trade- and production-distorting support.  
The Report cautions – and we endorse this – that beca use China's agricultural sector is the largest of 
any country in the world and China is one of the main exporters and importe rs of these products, its 
policies can affect other countries. 
234. We view with satisfaction the mention made in  the Report that China has amended a number 
of laws on intellectual property rights and that it plans to press ahead with its campaign to combat intellectual property rights infringements.  Moreove r, financial services have been undergoing gradual 
liberalization, opening the way for foreign inv estors to own as much as 100% of non-banking 
institutions, amongst other improvements. 
EUROPEAN UNION 
235. This is the fourth multilateral Review of Ch ina since joining the WTO more than 10 years 
ago. Being part of the multilateral rules-based tr ading system has contributed greatly to China's 
development, including to its transformation from an emerging economy to the global economic 
power it has become today: China is the world's larg est export nation, and is expected to become the 
world's largest national economy in the next 5 to 10 years.  
236. However, important challenges remain, and Chin a must now take the next step: increase its 
internal consumption, rely less on exports, a nd open its economy more, especially to services and 
foreign investment. Judging from China's 12
th Five-Year Plan, China's government is fully aware of 
this need to accelerate the rebalancing of its econo my. The EU therefore very  much hopes that China's 
leaders will engage in a second wave of sweeping reforms in services and investment that will pave 
the way to continue the country's growth trajector y also in the second decade after its WTO accession. WT/TPR/M/264 
Page 36  
 
  237. For the EU, China is our second trade part ner, and our economies are growing more 
interdependent by the day. The EU and China ar e important partners also in the WTO, actively 
seeking solutions for the current impasse of the DDA negotiations. In this context, the EU would like 
to particularly acknowledge China's constructive role in the on-going trade facilitation negotiations 
and encourage it to be even more involved to make  sure we take full advantage of the development 
gains of these negotiations. 
238. Having made these more general observations, I would like now to draw attention to our 
analysis of the Secretariat's Report. The EU regrets to note that, despite some incremental progress in certain sectors, most of our concerns highlighted  during the last Review in 2010 are still pertinent 
today – and some have even become more acute.  
239. Our main concern is related to lack of transparency, which makes China's trade and 
investment policies – in the words of Secretar iat's Report – "opaque a nd complex". While we 
acknowledge China's efforts, including its increased  use of public consultations, more needs to be 
done still to make key WTO principles like transpar ency and non-discrimination a norm in China's 
legislative system.  In this respect we woul d like to recall that China committed upon accession to 
make all laws, regulations and ot her measures pertaining to or affecting trade in goods or services 
available in one or more WTO languages. However,  more than 10 years after accession this remains 
the exception. Undertaking efforts to uphold this translation commitment would greatly contribute 
towards closing this transparency gap. 
240. We also call upon China to honour its notification commitments in particular in the area of 
subsidies. Subsidies and other assistance by the Chinese government can lead to a distortion of 
international competition and are an increasing source of friction. We share the explicit concern 
expressed in the Secretariat's report regarding the l ack of information provided by Chinese authorities 
on its subsidies. The EU stands ready to help Chin a and engage in an exchange of practices, but we 
would like to again underscore the need to work towards full cooperation and transparency. We also 
share the remark in the Secretariat report's that "d espite all the reforms, state-owned enterprises still 
tend to benefit from lower cost of and better acc ess to capital than non-public-sector enterprises". We 
therefore urge China to increase its efforts to ensu re a level playing field amongst market operators, 
regardless of their ownership structure or origin.  
241. In the same vein, the level playing field c oncerning export financing for foreign companies 
competing with Chinese players – very often state ow ned or state controlled - both in China, in third 
markets, and in Europe must be preserved. Also he re, more transparency would be an important first 
step towards agreeing a set of international guidelines.  
242. Many comments that the EU and other Members are raising today also relate to domestic 
behind the border measures. Despite the impressi ve progress China has made, significant challenges 
remain for foreign operators to realise the benef its of many of the commitments that China has de jure  
implemented.  For instance, too often China's technical requirements diverge from international 
standards or add specific and cumbersome proce dures. The report notes that only 46% of the more 
than 20,000 national standards in force in China ar e adopted from international or advanced foreign 
standards. Furthermore, in some areas, the particip ation of foreign and foreig n-invested companies to 
standard-setting work is still restricted. The EU th erefore encourages China to increase the number of 
national standards fully aligned to international standards and ensure the broader involvement of 
foreign companies in standardization. China shoul d also take steps to simplify its conformity 
assessment and regulatory approval procedures,  which are often unnecessarily burdensome and 
lengthy compared to the international norm. Th e China Compulsory Certification scheme (CCC) 
remains a major obstacle to foreign firms due  to its "one-size fits all" approach.  WT/TPR/M/264 
 Page 37 
 
 
  243. The Secretariat's report notes that China has a dopted a few measures to facilitate the foreign 
investment and we encourage it to continue to do so. However, restrictions in the so-called investment 
catalogue continue to limit the access of foreign comp anies to key sectors of the economy, while high 
capital requirements, branching restrictions, or cu mbersome or non-transparent licensing requirements 
reduce or effectively prevent mark et access in several services sectors. 
244. Despite significant efforts, IPR infringement in China - including violations of copyrights, 
trademarks, patents, and trade secrets - remains a central area of EU's concern. There are also 
difficulties in prosecuting criminal and civil IPR cases.  Forced technology transfer also remains an 
outstanding issue. The EU continues to encour age China to create a truly innovation-conducive 
environment in which its IPR enforcement regime is duly enhanced, at all levels of government. 
245. In government procurement, particular concerns  over the review period have been China's so-
called "indigenous innovation" scheme and the "Buy Chinese" provisions, recently reiterated by the 
Chinese Ministry of Finance – measures that run counter  to what is expected from a country that is 
formally engaged in GPA accession negotiations. The EU remains convinced that China's accession to 
the GPA would indeed constitute a "win-win" outco me for all concerned and thus encourages China 
to submit an improved GPA market access offer soon. We welcome the recent suspension of 
legislation linking public procurement to indi genous innovation policy and keenly await this 
legislative change taking effect on the ground. 
246. While we acknowledge China's true commitment to resist protectionism during the global 
economic crisis, its export restrictions, such as duties and quotas, are an exception. These trade 
restricting measures, especially on raw materials, have  also been reflected in the recent G20 report on 
trade and investment measures. As all countries ar e interdependent and relying on the free supply of 
raw materials the EU invites China to eliminate its export restrictions. 
247. Finally, the EU would like to seize the opportunity of this Trade Policy Review to convey a 
clear message on the need to preserve and uphold the rights of all WTO members and operators alike. 
Observing this principle includes for instance refr aining from pressurising foreign companies against 
participating in TDI proceedings. It also means for all Members to use transparency exercises like the 
TPR here today to express respectful but factual critique as a normal part of the deliberations. 
248. Director-General Lamy, in his statement made in December 2011 marking China's 10th years 
of WTO Membership, stated: "China has been and should remain important for the WTO. The WTO has been and should remain important for China." Indeed, China has greatly benefitted from joining 
the multilateral trading system. As a result, it s houlders a great responsibility to other countries, 
particularly developing ones, to comply fully with international rules. With its acquired size and clout, 
it should lead by example. 
INDONESIA 
249. China has had a rapid economic and social development and played an ever growing 
important role in regional and international affairs. Over the years, mutual understanding and 
friendship between China and Indonesia have continue d to deepen and widen. In addition to highly 
valuing our relationship, the two sides hope to en hance mutually beneficial cooperation at various 
levels to forge ahead with our strategic bilateral partnership. 
250. As an important part of this strategic partne rship, the China-Indonesia bilateral economic and 
trade cooperation have maintained a sound momentum  of growth. Trade and investment have also 
expanded dramatically between China and its many trading partners, as China rises to become one of 
the most important engines of economic growth in the world. WT/TPR/M/264 
Page 38  
 
  251. The trade relations between the two countries dur ing the last five year have shown a positive 
growth trend of 25.6%. According to Indonesian Statistics, total trade value of both countries in 2011 reached US$49.1 billion, with Indonesia's export to China valued at US$22.9 billion and imports at US$26.2 billion. Meanwhile, as for the period of January-March 2012, the total trade of both countries was amounted to US$11.8 billion, an incr ease by 26.0% compared to the same period 
of 2011.  
252. Indonesia commends China's effort to become fully engaged in the WTO processes, citing 
China's status as a full WTO Member and the size of  China's trade flows. I ndeed, China has become 
the world's second largest exporter and remains th e third largest importer of goods and services, 
creating far-reaching impacts on economies throughout the world. As one of the world's major traders, 
and as one of the major beneficiaries of the global trading system, China is expected to assume greater 
and leading role at the WTO.  
253. Indonesia recognizes the significant economic and so cial challenges that China faces at home. 
At the same time, Indonesia en courages China - while directing its economy and nurturing its 
domestic industries - that it also take fully into account any possible side effect it may cause to the 
country's WTO obligations and the development needs of the developing countries.  If subsidies and 
other forms of government assistance may be the important features of China's trade and industrial policies, they should carefully and strictly be fra med into the WTO rules and should not work to the 
detriment of the competitiveness of other developing countries. 
254. Particular care should also be directed towards China's types of input subsidy in the 
agricultural sector. It is important, for instance, that China's level of subsidy directed towards 
purchases of agricultural machines is kept as low as possible.  
255. In intellectual property sector, we acknowledge that the Secretariat's Report set out numerous 
actions that have been undertaken by the Chinese authorities to try to improve the enforcement of 
intellectual property rights.  China amended a numbe r of regulations and departmental rules on IPRs 
since China's previous Review, such as amendments  to the Regulations on Implementing the Patent 
Law, the Copyright Law, and the Regulations on Customs Protection of Intellectual Property. China 
launched a specific national campaign in November 2010 with a focus on cracking down on intellectual property rights infringement.  Indonesi a supports China in stepping up its efforts in 
enforcing IPR protection to show China's commitment in this sector. 
256. Indonesia has taken note of and welcomes China's commitment to promote the importance of 
the multilateral trading system.  China has been one  of the most active Members and has played an 
important role in the WTO. At the same time, it has been one of the biggest beneficiaries of this 
system.  China's entry into the WTO has important implications for the world trading system.  We 
highly value China's commitment to the multilateral trading system, and its active participation in the WTO's activities and the DDA negotiations.  We expect  that China will continue to make meaningful 
contributions to the timely conclusion of the DDA negotiations, as it will contribute to China's reform 
process as well as those of other WTO Members. 
TURKEY 
257. In terms of bilateral relations, Turkey and Chin a enjoy historical bond of friendship. We are 
located respectively on the west and east ends of th e ancient Silk Road, and have a long history of 
excellent political, cultural and economic relations.  Chinese Vice President H.E. Xi Jinping's visit to 
Turkey last February and our Prime Minister's visit to Beijing last April have underlined the 
determination of both countries to strengthen coopera tion and these visits resulted in the signature of 
important agreements such as a Swap Agreem ent and a Financial Cooperation Agreement.  WT/TPR/M/264 
 Page 39 
 
 
  258. In this respect, we are very pleased to observe  that trade between the two countries reached 
almost US$24 billion at the end of 2011. China has become our third biggest trade partner in the 
course of last decade. Both countries aim to double this amount by 2015.  As we strive to achieve this target, we also aim to achieve a more balanced tw o way trade which at present is heavily in favor of 
China. 
259. With regard to investments, we host more than 400 Chinese companies and, we witness 
increasing interest from China towards the Turkish market. Chinese corporations are very active in 
contributing to the modernization of the infrastruct ure in Turkey in several sectors, specifically 
railway transportation and energy. In light of su ch amplified interest from the business communities 
of the two countries, we aim to renew the bilatera l investment treaty in 2012. We will continue to 
strongly encourage the Chinese comp anies to invest in Turkey. 
260. We believe that there is still a great potential to  be tapped for further expansion of the steadily 
growing cooperation between the two countries. Ther efore, our objective is to expand and intensify 
the bilateral cooperation in areas such as food safety,  trade financing, mining and tourism. We greatly 
welcome the ongoing talk for a bilateral protocol in the area of food safety which would help us 
clarify the implementation of the SPS requirements. We  are also looking forwar d to conclusion of the 
work conducted by both sides towards facilitating the visa procedures as this is one of the steps 
eagerly requested by the businessmen of the two countries. 
261. Coming to China's trade and investment policies, we would like to express our appreciation to 
China for its extensive contribution in the various platforms of the WTO. China is a strong supporter 
of the multilateral trading system, and it plays a lead ing role in shaping of multilateral trade policies. 
In this respect, we particularly welcome the effo rts made by China to support the accession of LDCs 
to the WTO. Further, we must also acknowledge Ch ina's very active role at the Doha negotiations. 
We share its commitment to Doha Round and we ar e ready to work with Ch ina towards achieving a 
development oriented outcome.  
262. Given the size of its economy and its position as the top exporter and second biggest importer, 
it has utmost significance that China vigorously play a leading role to improve the implementation of 
the WTO disciplines, help further strengthen the trading system.  
263. China has continued to achieve rapid growth in the review period. It presents enormous 
market opportunities for world trade. While still a developing country, its dynamic economy which 
proved its resilience to the recent crisis has been a source of growth for the world. Nevertheless, there 
are still risks. The Secretariat's report also high lights various challenges like economic structural 
imbalances like relianc e on exports, large surplus of domestic  savings and overcapacity in some 
sectors still exist. The recent downside trend in the economic growth indicates the need to carefully 
handle these challenges. China's policy actions w ill have implications for the world economy. 
264. In this context, it is also important to note that the 12
th Five-Year Plan envisages the objective 
of increasing the role of domestic consumption in the economy. We are also pleased to learn that 
China will continue to further open up its economy  through a gradual reform process. We welcome 
this policy direction and narrowing of the current account surplus indicates that China's measures are 
being effective.  
265. In line with its overall opening up strategy, Ch ina has also continued to undertake progressive 
steps to improve its trade and investment regime. We welcome the recent efforts to improve transparency and consultation process at all levels of government. We also support China's initiatives 
to develop its services industries, and its steps to  further liberalize this sector. At the same time, 
however, we also note that  further work lies ahead. WT/TPR/M/264 
Page 40  
 
  266. The Secretariat's report indicates that its trade and investment regime has not changed much 
in the review period. China continues to provide a high degree of predictability with low tariffs and 
little water in its trade regime. We note with satis faction that the Chinese authorities are now focusing 
more on improving the implementation of various aspects of its trade and investment policies. 
267. In this respect, as internationally applicable common standards are critical to secure smooth 
flows of trade and services, we hope that China will increase its reliance on international norms while 
elaborating its national standards. At the present, about half of China's national standards are in 
parallel to or sourced from the international norms. Increasing this  ratio will contribute to cost 
effectiveness globally in manufacturing and customs procedures. 
MEXICO 
268. Thanks to the good management  of its macroeconomic policy, including a fiscal stimulus 
package worth ¥4 billion, the Chinese economy has performed more than remarkably, reflecting 
strong GDP growth (10.4 and 9.2% over the past two years).  China has successfully countered the 
downstream effects of the major world recession.  Its aggregate demand has nevertheless weakened 
recently, prompting the Government to take new st imulus measures including interest rate cuts. 
269. Good economic performance has led, inter alia , to a significant reduction in the number of 
people living in extreme poverty and a substantial in crease in the minimum wage.  We believe that the 
Chinese economy will have to confront a number of challenges.  The first is the potential re-emergence of its current account surplus.  Although it fell to 2.8% of GDP in 2011 from a historic high of 10% in 2007, there is the possibility that it could rise again owing to the following four main 
factors:  overcapacity in some industrial branch es such as iron and steel, automobiles, textiles and 
clothing, petrochemicals and light manufacturing;  the substantial increase in overall investment, 
which moved from 41% of GDP in 2007 to 48% in 2011, a development that could lead to overcapacity;  the lack of stimulus from domestic demand, which I shall describe subsequently;  and 
the size of the Chinese surplus, which is depende nt on the price volatility of some imported goods 
such as petroleum and other commodities. 
270. Second, it must provide the incentives required to substantially increase the contribution of 
services to GDP, as this is still low (43.1% in 2011) .  Third, it must face the danger that could arise 
from substantially increased lending, which moved from 122% to 171% of GDP in 2010, or almost 
50% of GDP in just two years.  This is reminiscen t of similar scenarios in the financial crises that 
affected Japan and Korea in the 1990s and more recen tly in the 2008 crisis in the United States.  The 
recent interest rate cut decreed by the Central Ba nk should be aimed at increasing consumption rather 
than investment. 
271. Fourth, despite increased consumption in recen t years (14.8 and 11.6% in 2010 and 2011 
respectively), it still represents a very small proportion of GDP (34%).  To put this into perspective, 
this level is 19 and 16 perc entage points lower than that of Japan  and the United States in the post-war 
period.  Given this scenario, we deem it important fo r China to take steps to reduce its dependence on 
external demand, thereby boosting domestic demand. 
272. On this latter point, we are particularly struck  by the fact that so me Chinese policies would 
seem to work against the attainment of that objectiv e, in particular the tightening of its fiscal policy 
and the restrictions on public spending.  Accord ing to a recent IMF study, a sustained increase in 
public spending of 1% of GDP would translate into a 1.25 percentage point increase in the share of 
consumption in GDP. 
273. Lastly, there is the exchange rate management po licy, which is related to all of the foregoing.  
Whilst we acknowledge that there has been a revalu ation of the effective exchange rate in recent  WT/TPR/M/264 
 Page 41 
 
 
  years, it is still below its real value.  We are c oncerned over the significant depreciation of the yuan in 
recent weeks, which would appear to be a measure to  offset the recent weakness of aggregate demand. 
274. As the world's leading exporter and second largest importer of goods, China undoubtedly has 
a very important role to play in global production ch ains.  This means that China should also act to 
lower its applied tariffs since, according to the S ecretariat Report, they have remained practically 
unchanged since China joined the WTO. 
275. In the case of Mexico, our imports from China have  largely enabled us to become part of the 
global production chains, inter alia , for electrical and electronic goods.  Nevertheless, we would also 
like to have easier access to the Chinese market a nd we would not like to see the opening of trade that 
came with its membership in the WTO undermined  by the problems entailed in complying with 
non-tariff measures such as the "Hygiene Standards for Distilled Spirits".  Me xico deems it important 
for the standards set by China in its regulations to  be scientifically based a nd, in the specific case of 
tequila, for them to take account of the production ch aracteristics stipulated in the Official Mexican 
Standard. 
276. Another element that is impeding access for Mexi can products in general and for pork in 
particular is the absence of an opinion from the Chinese Government regarding visits and 
information-sharing in sanitary matters.  We urge  China's Administration for Quality Supervision, 
Inspection and Quarantine to furnish an early response to our request. 
277. Given the size of the agricultural sector (the wo rld's largest), it is clear that any measure 
imposed by the Chinese Government can potentially  affect other markets.  We are therefore 
concerned over the increase in the amounts being allocated for market price support schemes and 
input subsidies. 
278. As mentioned in the Secretariat Report, China's export regime is still a complex one.  
In particular, we are concerned over the continued use of some measures to administrate certain exports, including the requirement that companies declare the weight percentage of rare earth 
components contained in certain exports.  In the same vein, we are perplexed at the policies to protect 
the exploitation of some commodities such as ba uxite, tungsten, antimony, tin and rare earths. 
279. We firmly believe that there are more effec tive alternative measures that would allow China 
to exercise its legitimate right to conserve na tural resources and protect the environment without 
unfavourably impacting international commodity markets in so doing. 
280. During the last annual review of the implemen tation of the commitments assumed by China 
upon joining the WTO, Mexico and other Members expr essed concern at the lack of transparency in 
the publication of trade-related laws  and regulations.  This is why in  this review, Mexico has asked 
whether links could be made available on whic h China's current legislation on anti-dumping, 
safeguards, countervailing measures and technical st andards and regulations could be viewed in 
English. 
281. We are gratified to see that as indicated in the Secretariat Report, China is implementing a 
general policy designed to open up the services industry.  Yet that policy is still to feed through to 
certain sectors.  For example, at least 50% of th e capital of basic telecommunications enterprises must 
be owned by the State, whilst Internet audiovisu al services are classified as prohibited activities. 
SOUTH AFRICA 
282. Since diplomatic relations were established be tween our two countries in the 90s, China and 
South Africa have worked hard to create mutually  beneficial relationships between our countries. WT/TPR/M/264 
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  South Africa and China share a common purpose and ha ve cultivated strong synergies with regard to 
building regional integration on the African continen t, via various initiatives such as that of NEPAD. 
China and South Africa also share a common commi tment to infrastructure development in the 
region. China is a critical trading partner for S outh Africa in Asia, ranking as South Africa's leading 
and largest export destination since 2010, as well as ou r largest source of imports. South Africa's trade 
with China has grown dramatically over the past 11 years. 
283. China has contributed to the increased valu e of African commodities, by increasing the 
demand for these products and is also a major mark et for the export of these products. South Africa 
has benefitted from this relations hip, exporting primarily resource products to China. Though our 
export basket in the past has been dominated by co mmodities and raw materials, this is set to change, 
with the conclusion of mutual partnership agreements  to rebalance the terms of trade between our two 
countries, including allowing the export of enhanced  value-added products to the Chinese market. 
These agreements will facilitate the exploration of  further complementarities in our respective 
markets. 
284. In particular, through a Comprehensive Stra tegic Partnership Agreement (CSPA) signed 
between South Africa and China in 2010, both c ountries have committed to pursue a balanced, 
mutually beneficial and more sustainable tradin g relationship. Under this Agreement, we are 
encouraging increased Chinese investment in the S outh African manufacturing industry in order to 
promote beneficiation of minerals at source. We also  look forward to further collaboration in the areas 
of finance, technology, skills and in frastructure for mineral beneficiation. 
285. China is a key investment partner for South Afri ca and the African continent. In 2008 China's 
Industrial and Commercial Bank of China purchased a 20% stake in one of South Africa's largest 
national banks, Standard Bank, for US$5.64 billion, making this South Africa's largest single foreign 
investment. Other key investment sectors have included metals, mining, chemicals and automotives.  
We look forward to continued colla boration and renewed investment in  key, high growth sectors, such 
as the renewable and solar energy, steel manufacturi ng, agricultural development, agro-processing, 
automotives, and also capital and transport equipment. 
286. China is also the main source of Southern Ai d to Africa, accounting for 83% of estimated 
Southern flows in 2006 (about US$2.3 billion), acco rding to UNCTAD figures. The bulk of this 
support was for Infrastructure and public works, estimated at US$4.7 billion in 2007. The main 
sectors targeted were electricity, transport and ICT.  Furthermore, at several Forum on China-Africa 
Cooperation ("FOCAC") meetings, as well as in the context of the UN Millennium Development 
Goals, China has committed to pr ovide debt relief and cancel overdue debt by African countries, 
initiatives which will be crucial for poverty alleviat ion efforts and development trajectories of the 
continent at large. China has also demonstrated its  commitment to the plight of LDCs by the provision 
of duty free quota free market access in the WTO. 
287. Importantly, China's experience has demonstrat ed how a developmental state can guide and 
lead the development of its productive capacity, de velopment strategy and reduce poverty. Technical 
assistance and sharing of its development experience will be crucial for Africa in the years ahead. 
288. Under the BRICS umbrella China and South A frica are working to strengthen the existing 
synergies between our economies in a mutually  beneficial manner and are enhancing our 
collaboration in several multilateral fora, including  the WTO. China and South Africa share many 
common perspectives on enhancing South-South cooperation, global economic governance, and a 
commitment to concluding the Doha Developmen t round on the basis of its  development mandate. 
Ambassador Zhenyu Sun and now Ambassador Xiaozhun Yi have provi ded excellent leadership and 
demonstrated China's solidarity with developing country concerns and interests in the WTO.  WT/TPR/M/264 
 Page 43 
 
 
  PERU 
289. Thanks to the growing commercia l and financial relationship a nd the complementarity of our 
countries' production structures, Peru regards Chin a as a strategic ally.  A very comprehensive 
bilateral free trade agreement has been in eff ect since March 2010 and contains provisions on the 
goods and services trade as well as investments.  Th at agreement was signed together with a Customs 
Cooperation Agreement and, for Peru, represents  the establishment of clear rules as well as a 
transparent and predictable framework th at makes for orderly bilateral trade. 
290. Peru and China have thus developed strong trad ing links that are reflected in their expanding 
bilateral trade in recent years, w ith exports and imports gr owing at an average annual rate of 15%.  As 
a result, China has become Peru's principal tradi ng partner and the main destination for Peruvian 
exports, even ahead of the United States.  Our 2011 exports to China thus amounted to a record 
US$6,961 million or three times their 2006 value.  Im ports in turn amounted to US$6,319 million, so 
that aggregate trade exceeded US$13,000 million in 2011.  I must also underscore China's importance 
to Peru in the realm of investme nt, since, with an FDI stock of US$736 million in 2011, for the most 
part in the mining sector, China occupies first place amongst Asian investors. 
291. My country appreciates China's efforts to im prove its macroeconomic policy and maintain 
basically stable prices in general, its prudent moneta ry policy, its control of the fiscal deficit level and 
its efforts to expand consumer demand, buttress th e protection of intellectual property rights, and 
speed up the development of the services sector and its capital market.  We believe that more balanced demand from China and greater liberalization of its trade policies will help re-launch growth 
in the world economy. 
CHILE 
292. On the trade front, Chile's exports to China in creased by 14% to US$4,429 million in the first 
quarter of this year, despite the crisis.  Copper made up 77% of those exports.  Non-mining exports 
too increased by 50% as compared with the first quarter of 2011.  Prominent among them were fruit 
exports, which increased by 133%, and metal pr oducts, machinery and equipment, up by 373%.  
Lastly, the trade balance shows a surplus in Chile's favour of US$6, 650 million in 2011 or just below 
the US$8,089 million registered in 2010. 
293. Today, Chile's trading relations with China fall under a comprehensive free trade agreement 
that has been in force since October 2006, and whic h has proven to be an effective tool for boosting 
bilateral trade, to the point wher e China has been catapulted to the position of Chile's leading trading 
partner.  The agreement has made it possible to  maintain smooth and institutionalized relations 
between the two parties and this h as deepened the trading relationship.   One example of this has been 
the signing of the Supplementary Agreement on Servi ces, which has been in force since August 2010.  
Similarly, we are hoping for an early conclusion of the Investment Protocol that is currently being 
negotiated. 
294. From our standpoint, the main challenge po sed by the trading relations between the 
two countries is achieving greater diversification of Chile's export basket, considering its strong focus 
on the mining sector.  An important step in that direction would be the speedy processing and approval by China of some pending sanitary protocols. 
295. Lastly, and as previously stated, although mention may be made of areas in which China 
could improve its performance within the framework of WTO rules, we cannot fail to appreciate the 
tremendous effort entailed in bringing an economy su ch as that of China into line with WTO rules.
 WT/TPR/M/264 
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  ZIMBABWE 
296. The Chinese economy experienced strong real growth during 2010-11. The growth, which 
was supported by a fiscal stimulus package, was al so matched with an increase in the nominal GDP 
per capita (in U.S. dollar terms) from around US $4,430 to US$5,417 representing a 22.3% increase.  
China, like most other WTO Members, resisted a trad e-restrictive response overall to the effects of the 
global economic crisis, which is indeed commendable.   At the same time, few measures were adopted 
to liberalise international trade while the simple av erage applied MFN tariff rate of 9.5% and the main 
measures related to trade and investment remain ed unchanged.  However, the introduction of 
measures that restrict or may restrict trade, notably  exports has been cited in the Secretariat's report. 
297. While China has been encouragi ng inward FDI, becoming the world's third largest recipient 
of FDI in 2010 after the EU and the U.S., with  particular emphasis on high value added production 
and new technology, and in certain services sectors,  the country has also become a major trading 
partner and investor in developing countries through bilateral and South-South Cooperation 
initiatives.  Over the period 2005-10 Zimbabwe's  exports to China increased from US$391,000 to 
over US$166 million while imports from China in creased from approximately US$5 million to 
US$218 million. The trade balance is in favour of China.  In the last two and half years, trade between 
Zimbabwe and China almost doubled to US$800 million as ties between our two countries continued 
to strengthen.   
298.  Major exports to China include tobacco leaf , textiles (excluding clothing), mineral products, 
leather and hides. Zimbabwe, in turn, imports ma inly electrical products, transportation equipment, 
footwear and machinery from China.  Inward investment from China has also increased from 
US$155 million in 2009 to US$1 billion in 2011. This has benefited the mining, tourism and 
manufacturing sectors.  
299. We note the challenges that China has to gr apple with as it moves towards correcting the 
various economic imbalances it faces, which includ e large surplus of national savings over domestic 
investment and overcapacity in sever al core industries, given the size of the economy and the depth of 
its integration into the global economy.  We wish China a successful implementation of the 12
th Five 
Year Plan, which aims to reform the economy into on e that is more driven by growth of domestic 
demand, and the adoption of additional measures to liberalise its trade and strengthen economic 
reforms. 
URUGUAY 
300. Our country maintains friendly and constructiv e relations with China.  Accordingly, 
China's importance to Uruguay has grown exponentially over recent years not only owing to the 
Asian giant's increased worldwide strategic weight in political and economic terms, but also to the 
headway made in bilateral dialogue at various leve ls, primarily in the political, cooperative, economic, 
commercial and cultural fields. 
301. The Uruguayan authorities underscore the fruitful  outcomes of the bilateral relationship, 
based on a regular exchange of visits and high-level m eetings.  This half of the year is marked by a 
four-day visit by our Minister of Foreign Affairs Luis Almagro together with a sizeable delegation, 
and by the visit to Uruguay of the Chinese Prime Minister Wen Jiabao, set for next week. 
302. Other noteworthy aspects are the concrete progress made in respect of the bilateral agenda, 
increased trade flows, Chinese investment in our c ountry and the very good level of dialogue and 
coordination between both countries at th e regional and international levels.  WT/TPR/M/264 
 Page 45 
 
 
  303. China is a trading partner whose share in both our exports and im ports is growing.  
A comparison of monthly export figures for 2010 and 2011 shows year-on-year increases for all the months of 2011.  Bilateral trade for 2011 was up by  approximately 30 per cent on the prior year.  
On this basis, we therefore confirm that China is now one of our country's principal trading partners. 
304. A breakdown of our foreign trade with China shows that soybean accounts for over half of 
our exports and has been the leading product sold by Uruguay to China since 2009.  It is followed by 
cellulose, wool tops and combed wool, and live bo vine animals.  To these we aim to add premium 
beef cuts, dairy products and wines. 
305. Uruguay's imports from China are chiefly manufactures of industrial origin such as 
computers, motorcycles, automobiles and automotiv e parts, household appliances, footwear, suitcases 
and other industrial goods. 
306. China is undoubtedly Uruguay's leading trading partne r in Asia.  Priority is therefore attached 
to these ties, and given the context of crisis and the objectives set by Uruguay, it is crucially important 
to strengthen them, specifically so as to generate further scope for collaboration and cooperation in 
areas such as infrastructure, the environment,  agriculture, science and technology, commercial 
services and software. 
307. As a closing observation, both countries have an  interest in the successful conclusion of the 
Doha Round and the strengthening of  the multilateral trading system. 
JAMAICA 
308. We recognize the important role that China is playing in global trade noting that it is now the 
second largest exporter in the world. While asymmetri es of size between Jamaica and China are great 
we share many common interests as developing countri es grappling with the challenges of translating 
trade into development. We have therefore taken keen note of the Secretariat and the Government 
reports which have served to illu minate developments in China's trade practices and performance 
since the last TPR in 2010.  
309. Jamaica's trade with China continues to grow  and china is now among our top five trading 
partners. We attach great importance to Chin a's continued developm ent support namely its 
involvement in important infrastructure projects, am ong others, as well as china's investment in those 
sectors which are of high importance to Jamaica.  
310. At the regional level China's cooperation with our sub-region in the form of the China-
Caribbean Trade and Economic cooperation Forum which was inaugurated in February 2005 in 
Kingston, represents a very important vehicle for trade and economic coopera tion between our region 
and China. This mechanism provides for dialog ue and exchange on the growing trade and 
development cooperation th at exists between us. 
ECUADOR 
311. In 2012, China is the world's second largest economy,  with one of its highest growth rates;  its 
macroeconomic performance has been remarkable and it has reached its tenth anniversary as a 
WTO Member.  The crisis had little impact within the Chinese economy, at least by comparison with 
other Members, and the growth expecta tions set for 2011 were surpassed by 1%. 
312. It is easy to understand the genesis of these figures when we consid er China's successful 
adaptation to a world economy in recession.  That process was not driven by consumer demand in 
Western countries, which is likely to remain low for some years to come.  The shift from external to WT/TPR/M/264 
Page 46  
 
  domestic demand has combined with fiscal stimulus programmes worth ¥4,000 million to reduce 
dependence on foreign markets to some extent a nd is consolidating Chin a's regional and global 
position.  Moreover, the Chinese Government's policy regarding financial operations on the 
derivatives market prevented the crisis from impac ting that country in the way it did other Members. 
313. China's ambitious fiscal policy adopted before  the period under review, together with an 
expansionary monetary policy an d successive interest rate hikes significantly expanded the money 
supply.  The inflationary impact of these measures barely began to be felt in early 2010.  Although 
this fact, coupled with the controls imposed on outbound capital, does stimulate domestic investment, 
it could also give rise to bubbles similar to tho se that preceded the 2008 crisis.  Caution should 
therefore be exercised in this connection.  It s hould be mentioned that ti mely action was taken in 
late 2011 to counter the effects of a number of these measures. 
314. China is currently the world's second largest  exporter and its third largest importer.  
Its trading partners have hardly changed over th e period covered by this review.  The EU, the 
United States, Japan, Hong Kong, China, Korea, Chinese Taipei and the ASEAN are still its major 
trading partners.  In contrast, trade with Latin Amer ica is less and markedly unbalanced.  The negative 
trade balances with China are becoming greater and imbalances in the terms of trade are worsening 
instead of disappearing. 
315. In Chinese-Ecuadorian bilateral trade, imports from China cover more than 4,000 items worth 
over US$4,500 million and grew steadily during the peri od under review.  In turn, Ecuador's basket of 
exports to China does not exceed 200 products , with petroleum accounting for over 60%. 
316. The picture is different when it comes to financial cooperation, as the complementarity 
between both countries has made it possible for Ecua dor to move away from the traditional lending 
institutions and seek new sources of funding whilst a llowing China to secure oil supplies and invest 
some of its financial resources on the market.  Th is rapidly expanding relationship gave rise to 
disbursements of US$1,000 million in 2010 and US$2,000 million in 2011, whilst an additional 
disbursement of US$1,700 million is envisaged for th is year.  These funds have been crucial to the 
funding of investment projects in Ecuador. 
317. We hope that just as China has made a leap fo rward, thereby revealing a renewed, committed 
and growing country, so will these bilateral trade fi gures evolve and endure, enabling both countries 
to reap the benefits of the multilateral trading system and of trade in an equitable manner. 
VIET NAM 
318. First of all I would like to express our association with the ASEAN Joint Statement presented 
by Brunei. We are aware that by this time, not only has China been embedded in the global economy, 
but the country has become one of the major players in world trade. It is highlighted in the Secretariat's report that China is now the world's second largest exporter and remains the third largest 
importer of goods and services. During the period  under review, China enjoyed strong economic 
growth with impressive high growth rates throughout each quarter.  
319. The WTO multilateral trade system has been bene ficial to the economic development of all 
Members including China and Viet Nam. In return , China has also contributed to the system by 
opening up its economy, improving the stability, pred ictability and transparency of a number of rules 
that favor trade and economic activities.  
320. In recent years, the bilateral economic relations hip between Viet Nam and China continues to 
have significant increase. The two countries have achie ved satisfying results in trade, investment and 
economic cooperation. The amount of two-way trad e between us reaches US$35.71 billion in 2011.  WT/TPR/M/264 
 Page 47 
 
 
  Our exports to China totaled US$11.12 billion, wh ile imports from China to Viet Nam stood at 
US$24.59 billion. Viet Nam is among the countries that have run sizable deficits with China, 
therefore, we appreciate that China has taken effec tive measures to reduce the trade surplus. In terms 
of investment, for the first quarter of 2012, Chin a has 843 investment projects in Viet Nam with the 
registered capital of US$4.36 billion, ranking 14th out of 95 countries and territories investing in 
Viet Nam. With this momentum, Viet Nam looks forward to furthe r deepening our close cooperation 
with China, both bilaterally and w ithin the framework of the WTO.  
NIGERIA 
321. The delegation of Nigeria is optim istic that China as one of the pillars of developing countries 
in the WTO will provide a policy regime that would be  appreciated by all players in the global trade. 
At the bilateral level, China and Nigeria have a long  and vibrant trade relationship. In Africa, Nigeria 
is one of the largest trading partners of China a nd the two countries have entered into a number of 
bilateral Trade Agreements and signed several Mo Us on issues ranging from trade in manufactures 
and raw materials to investment in transport, construction, health equipment and machinery and 
textiles. However, Nigeria remains concerned on th e continuation of "flooding" of the Nigerian 
market with cheap substandard goods from China. Th is practice has continued to adversely affecting 
the performance of domestic industries, particularly the textile sector where over 65 textile mills have 
been closed and over 150,000 workers have been la id-off over the course of a decade. Therefore, it 
would be interesting for my delegation to hear ho w china intends to address this specific concern, 
taking into account the ongoing bilateral efforts be tween Nigeria and China, as well as China's overall 
improvements in IPRs to combat the global menace of counterfeiti ng and pirated goods. 
322. The Nigerian delegation is quite impressed by the level of progress made by the Chinese 
Government since its last Review in 2010. Particul ar note has been taken of the authorities' ability to 
implement a robust agricultural development progr am alongside rural development which, according 
to the Government Report was considered as the b est of its kind since 1998 where the income growth 
of rural residents outpaced the growth in per capita disposable income of urban dwellers.  
323. With respect to FDI, the report of new record  heights of investments in the non-financial 
sector and realized value of foreign investment  is quite commendable and a sign of a dependable 
economy of the future. This, in addition to the po licy of balanced trade for import and export as well 
as strengthening economic and trade partnerships b ased on mutual benefits and win-win principle, 
places China on a strategic position to further contribute tremendously to global trade. 
324. There is no doubt that China's participation in  the WTO has been of a proactive and dynamic 
nature and a source of great encouragement to  both developing and de veloped as well as Least 
Developed Members. For instance, China's contribut ion to the Aid for Trade Initiative of the WTO, 
South-South Cooperation, China's LDCs and Accessions program aime d to assist LDCs participate 
more effectively in the multilateral trading system, regional and bilateral matters , are all indications of 
a super active partner in the WTO and world econo mic system. For example,  in July 2011, china 
contributed to the establishment of China's LD Cs and accession program, to help strengthen LDC 
Members participate in the WTO activities and also to help acceding LDCs to improve their capacity 
for accession.  
325. In spite of the above, the Nigerian delegation w ould like to encourage China to, as a matter of 
deliberate policy ensure that the country widen its import basket beside the traditional markets, to 
include more African countries, particularly in sectors that have shown remarkable improvements 
such as in the agro-allied sub-sector. There is also the issue of pronounced application of non-tariff 
border measures such as licensing and State trading, etc. The Nigerian delegation has also noted from 
the Secretariat Report that China applies massive use of market price support programs, input subsides and other more trade and production dist orting forms of support and these have been on the WT/TPR/M/264 
Page 48  
 
  increase. It is the wish of the delegation of Nigeri a that China would take a second look at some of 
these issues and ensure their appropriate adjustment. 
326. It is the desire of the Nigerian delegation that after this TPR, China would take a more 
positive and proactive means of dealing with th e challenge of savings surplus over domestic 
investment and think of expanding investment in developing countries where investable funds are not 
available. By doing this, China will be contributing to world growth further than it is at the moment. 
AUSTRALIA 
327. This is an especially notable year in the Au stralia-China bilateral relationship, being the 
40
th  anniversary of the establishment of diplomatic relations between our two countries. During this 
time, we have shared a strong, enduring and mutua lly beneficial trade and commercial relationship. 
One built on economic complementarity. Australia has be en a safe and reliable source of the minerals 
and energy resources needed to fuel the enormous  growth of China's manufacturing and construction 
sectors, while China has supplied a wide range of  competitively priced manufactures to Australian 
consumers. And we are both working hard to furt her diversify the relationship into areas such as 
agriculture and services.  
328. China has no doubt benefitted greatly in econom ic terms since it began the process of opening 
its economy and reforming its trade regime. Membersh ip of the WTO, now more than a decade old, 
has played an important role in creating a more pr edictable trading and investment environment which 
has aided China in becoming an increasingly importa nt contributor to glob al supply chains.  
329. The economy has grown by about l0% a year on average for the past two decades, and many 
millions have been lifted out of poverty. In th e process, China has beco me the second largest 
economy in the world, the largest exporter, and the second largest importer, behind only the United 
States. 
330. Australia welcomes China's rising profile in th e global economy, and encourages it to make a 
strong contribution to the multilateral trading system. Indeed, we note from China's 2011 IMF Article IV Report that China's authorities see the counterproductive rise of protectionism in recent 
years as one of the potential risks to China's con tinued growth. We hope that this will mean China 
continues to place a strong emphasis on the rules-based multilateral trading system.  
331. In the aftermath of the worst financial crisis since the Great Depression, ongoing concerns 
about many European economies, and its own structural  challenges, China faces a significant task if it 
is to sustain its impressive growth rates, and sp read the benefits more evenly among its citizens. 
Inflationary pressures, labour issues and sustaining strong economic growth all need to be managed. 
China's trade and economic reform efforts have provided improved mark et access in many areas, 
which in turn have assisted China's own manufact uring sector and consumers and this needs to 
continue.  
332. Many of Australia's written questions to Ch ina reflect areas where we see a need for 
continued reform and reflect our ongoing concerns , and those of Australian companies, about both 
formal and informal barriers to trade and investment.  Australia would urge china to take further steps 
to improve the openness, transparency, predictability a nd efficiency of its trade and investment regime 
for foreign companies doing business with China. This is in China's own interests as well. 
333. The Secretariat has concluded that there have been no major changes to China's institutional 
and legal framework for trade since 2010. It would be  disappointing if this signalled a slow-down in 
the reform process.   WT/TPR/M/264 
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  334. Australia encourages China to unde rtake further legal and institutional reforms in the context 
of continuing the important process of econom ic reform, including implementing the measures 
contained in the 12th Five-Year Plan. These reforms should incl ude measures to improve transparency, 
as well as China's overall trade and investment polic y regime, which the Secretariat has found to be 
complex and opaque in many areas. As a matter of principle, there should be little scope for 
administrative discretion in policy decisions, other than what might be clearly permitted in the policy 
itself.  
335. The Secretariat has concluded that the main ru les and laws relating specifically to foreign 
direct investment have remained unchanged during th e Review period.  Australia encourages China to 
simplify the large number of laws and regulations a pplying to foreign investment, to further liberalise 
the sectors and thresholds to which they apply and to  review the industries which remain restricted or 
prohibited.  
336. The administration of tariff quotas is particularly important, given they are often the only 
means of acquiring market access for products that  have not undergone sign ificant tariff reform. 
Again, and in the interest of transparency, we w ould urge China to regularly make available public 
information on tariff quota administration, including fill rates. State-trading enterprises continue to 
dominate access to China's tariff quotas, and that China's last notification to the WTO on this issue was made in 2003. China needs to provide such in formation more regularly, and in a much more 
timely manner.  
337. In the area of SPS, it would be helpful if as a member of the Codex Alimentarius, China could 
undertake to adopt the relevant Codex standard fo r food safety. Further, where audits of overseas 
export establishments are required, it would also be  helpful if China could ensure that adequate 
resources are made available to conduct such a udits, so they do not hold-up the commencement of 
trade. 
338. Given the scale of China's economy, its subsidy programs have the potential to create 
significant trade distortions. Australia acknowledges that gathering information on subsidy programs 
from different levels of government  is time-consuming, but all Memb ers have obligations to provide 
regular notifications of these programs. It will be important for China to meet its obligations, 
including by improving the transparency of subsidie s provided by all levels of government, which the 
Secretariat has noted are generally not available.  China has recently improved its notifications on 
agriculture domestic support. 
339. Australia welcomes China's decision to revise its  Trademark Law, which has not been revised 
for over a decade. Australia would however encour age the government to consider reverting from a 
first-registration basis for the recognition of trademar ks, to a first-use basis. This would also assist 
with the problem of trademark "squatting", wh ich remains a matter of concern for Australian 
businesses.  
340. Market access for services providers is an area of particular interest to Australia. The 
Secretariat has concluded that the banking sector in China continues to be dominated by State-owned 
banks. The current policy of limiting foreign ba nks to two investments in Chinese financial 
institutions significantly constrains the ability of Australian banks to grow, and would be assisted by a 
relaxation of this policy.  Similarly, the govern ment should consider increasing the existing 20% cap 
on single investments by foreign financial institutions  in Chinese financial institutions, along with the 
25% cap on total foreign investment in Chinese fina ncial institutions, without losing their status as a 
domestic provider.  Finally in this area, the long waiting periods for foreign banks to obtain Renminbi 
Business Licences impedes their scope of business.  Australia would welcome a reduction in the 
licensing period.  WT/TPR/M/264 
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  341. Australia notes China's strong commitment to concluding the Doha Round to a successful 
conclusion. Australia encourages China to continue to contribute to areas of ongoing work aimed at 
improving and updating the framework of multilateral rules, including where Members are exploring 
different, fresh and credible nego tiating approaches. In conclusion , Australia once again welcomes 
China's efforts to implement its WTO accession commitm ents and urges China to continue to reform 
and liberalise its trade and investment regimes, for the benefit of the Chinese people and China's 
economic partners.  
CÔTE D'IVOIRE 
342. It should be recalled that China is an important player in world trade and a key participant in 
the negotiations under way in the framework of the Doha Development Programme (DDP), which 
Côte d'Ivoire hopes will move the Round towards conclusion. 
343. The quality of the Reports made available to  us reveals the seriousness and scale of the 
preparations made for this review.  I would ther efore like to congratulate all the Chinese authorities 
for the work accomplished. 
344. China's trade policy is of interest to Côte d'I voire in various respects, given the trading and 
cooperative relations maintained by these two c ountries.  Our country is appreciative of its good 
cooperation with China, in which framework Côte d'I voire has always had that country's support in its 
development efforts and in boosting its trade capacity.  That support recently took the form of a grant 
worth some €9 million (or roughly US$11.5 milli on) for post-crisis reconstruction of the 
Ivorian economy.  In the light of the foregoing, Côte  d'Ivoire places  genuine hope in the strengthening 
of its economic and trade cooperation with China. 
NEPAL 
345. We congratulate China for its impressive ac hievements in maintaining strong economic 
growth even during the difficult years of world ec onomy. China's growth has not only helped improve 
the standard of living of the 1.3 billion people at hom e but has been able to inject life to the global 
economy at a time of volatility and uncertainties. Nepa l is impressed by China's successful harnessing 
of trade as the best tool to create jobs, reduce poverty and bring welfare in people's lives.  
346. My delegation is encouraged to note that the Chinese Government has scaled up efforts to 
expand domestic demand, promoted structural ad justment and continued reforms in line with 
commitments made in the process of joining the WT O. China has given equal emphasis to export as 
well as import and investment inward as well as investment outward. These are commendable positive measures undertaken by the world's second largest econom y, which is also the world's fastest growing 
consumer market.  
347. In its Report, China has reiterated its commit ment to multilateral trading system as the 
cornerstone of its foreign trade policy and its co mmitment to see the DDA carried forward.  My 
delegation shares China's "deep concern" over the existing impasse of the DDA negotiation. We also 
share the belief that the early conclusion of the DDA will bring more opportunities for trade, 
employment and economic growth as well as strengthen faith in multilate ral trading system's ability to 
deliver, especially to the poorest and most vulnerable segment of human population. 
348. We appreciate China's recognition of LDCs' conc erns and its support to giving priority to 
LDCs, issues in the WTO process. China is one of the major developing countries extending support 
to LDCs. We welcome China's announcement to give zero-tariff treatment to 97% of exports from the 
LDCs'.   WT/TPR/M/264 
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  349. In its Report, China has made candid assessment of the challenges it faces in its efforts to 
ensure development process that is balanced and su stainable. In fact, challenges related to addressing 
resource and environmental constraints, reducing income gap, strengthening agricultural sector, 
promoting technological innovation, maintain balan ce between rural and urban development are the 
common concerns of most developing countries. The way China seeks to tackle these challenges 
could provide useful lessons for others as well.  
350. China is a good neighbor and good friend of Nepal with relations dating back to the 5th 
century or even before. These relations have grow n further over the years. Trade volume between the 
two countries is expanding and so are the other comp onents of economic relations. China is one of the 
largest development partners, a major source of FDI to Nepal and a source of increasing number of 
tourists. Nepal will continue to work closely with China to explore further on the ways and means of 
expanding trade and investment for the mutual benefits of both countries. 
BOLIVARIAN REPUBLIC OF VENEZUELA 
 
351. A few months ago, China reached its tenth anni versary as a Member of this Organization, and 
we celebrate this fact.  Throughout that time, and with China as a full Member of the WTO, we have 
been witnesses to the significant ch anges that have occurred in international trade, and to the 
evolution in the day-to-day dynamics of this Organization. 
352. The various reviews undergone by China in th e WTO since becoming a Member, there have 
revealed the appreciable efforts deployed and the st eps taken by this important Member to adapt its 
economic and commercial model to existing WTO rules without neglecting the interests of its people. 
353. During the period under review, China, like th e other Members of the WTO, has been 
affected by the current economic and financial cris is, which has considerably impacted its trading 
relations and more particularly its domestic economy.  Indeed, as stated in the Secretariat Report, 
China's GDP growth target was recently lowered to  7.5%, also to make allowance for more sluggish 
growth of world trade expected in 2012 and 2013.  In this adverse environment, we witness with great 
interest and admiration China's success in m itigating the serious effects of the crisis. 
354. We deem it very important to be here toda y given the continuing dynamism, growth and 
diversification of the relations be tween both countries.  Sino-Venezuel an relations have been defined 
and consolidated as a Strategic Partnership for Joint Development, and this has made for better mutual 
understanding and broader and deeper  bilateral cooperation.  Our rela tions extend beyond the realm of 
trade, as there are now strong political and cultural ties between both nations. 
355. Our economic and commercial ties have been stre ngthened to the point where China, now our 
second biggest trading partner, is closer than ev er to becoming our principal trading partner. 
356. A large number of agreements, bilateral pr ojects and trade alliances are functioning 
phenomenally well between China and Venezuela, c onstituting an opportunity to grow our country's 
exports and imports, and paving th e way for economic and social advancement based on economic 
and productive complementarity and a win-win relationship.  Trade between both countries was 
worth US$20 billion in 2011 as against US$600 milli on a decade ago.  Our trade is expanding 
by US$2 billion annually. 
357. In this context, the most recent official vis it by a senior Chinese trade official to Venezuela 
took place at the end of 2011.  On that occasion,  the Chinese Deputy Minister for Foreign Trade 
expressed his pleasure at the achievements made an d the joint endeavour to develop the strategic 
alliance between the two countries.  Amongst other c oncrete results, he highlighted the fact that WT/TPR/M/264 
Page 52  
 
  Venezuela was the main destination in Latin America for Chinese investment, which amounted 
to US$1,900 million, and that China had become  Venezuela's second largest trading partner. 
358. Besides, the Chinese Government reiterated its readiness to share the experience it has 
acquired in the development of sectors such as ag riculture, industry, textiles, infrastructure and 
transport, technology transfer and the training of human resources. 
359. Beyond this, we can confirm that Venezuela and China share a very similar stance on most of 
the trade topics that fall under the umbrella of the Doha Round.  We ha ve always defended the 
integrity of the Single Undertaking and above all,  the development dimension of these negotiations 
with a view to achieving a fair, balanced and de velopment-oriented outcome  consistent with the 
Mandate.  This is clearly exemplified by the fact  that we have formed solid alliances in these 
negotiations, both in Agriculture through the G- 20 and the G-33, as well as in NAMA through 
the NAMA-11 group of developing countries, all these groups having played a pioneering role in 
these negotiations. 
CUBA 
360. We would like to highlight China's commendable effort to comply with its 
WTO commitments in a firm and resolute manner.  Th is is testimony to the importance of trade to its 
economy.  We will not repeat all that has already been stated in the Report, though we do wish to 
highlight China's tremendous end eavours and positive achievements in all fields since 2010, when the 
previous review of its trade policy took place.  The country has been progressively adapting its 
macroeconomic policies so as to bri ng about a gradual and equitable rise  in the standard of living of 
its people. 
361. Our ties with China are based on friendship, c ooperation and political affinity, and have been 
growing in number.  We also share the same ge neral objectives in the WTO, such as the preservation 
and defence of the multilateral trading system , reduced imbalances between developed and 
developing countries, and finding immediate and eff ective solutions to the problems confronting the 
poorest Members of this Organization. 
362. We wish to place on record the excellent bilatera l relations existing between Cuba and China.  
To our satisfaction, China is one of Cuba's princi pal trading partners.  C uba warmly congratulates 
China on this exercise and commends its representativ es for their active role in WTO deliberations.  
Cuba further wishes to assure its delegation that we reject the actions and attempts by those intent on 
distorting your country's efforts and positive ach ievements in promoting the Doha Development 
Programme.  We urge you to continue to de fend your national interests and those of all 
underdeveloped countries, and we wish you new and greater successes in the future. 
363. The accomplishments of the Chinese economy and so ciety as a whole in a mere ten years are 
clear, and have occurred in a time la pse that is insignificant in the life of a country.  It is only fair to 
recognize this as well as China's read iness to continue its endeavours to live up to its commitments. 
364. We have heard doubts being raised, and to my mind unfair criticisms of China calling for 
greater progress in respect of its WTO commitments.  In that regard, we deem it fitting to recall that 
most WTO Member countries, some of which have b een raising concerns to China at this session, 
have had the opportunity to implement their comm itments for over 15 years now, in some cases since 
the time they were GATT Contracting Parties.  WT/TPR/M/264 
 Page 53 
 
 
  SAUDI ARABIA 
365. The performance of China's economy since it jo ined the WTO in 2001 has been impressive 
and encouraging. The trade policy reports indicate that, China has become th e world's second largest 
exporter and third largest importer of goods. In ad dition to that, China has become an important 
source of FDI, in 2010; it ranked fifth in the worl d, with outward FDI of US$68 billion, up 20% from 
2009. China, along with other developing countries,  has become an increasingly important force 
propelling world economic growth.  According to th e IMF Statistics, from 2001 to 2011, China's GDP 
increased by US$5.97 trillion, representing 15.9% of the increase in the world aggregate, and the 
share of China's GDP in the world rose to 10.5% over the same period. 
366. The Kingdom of Saudi Arabia is glad to see that China has achieved impressive economic 
performance during the review period, despite the challenging global economic environment of recent 
years, which left its marks on several aspects of Chinese economy. A sound macroeconomic strategy combined with a prudent fiscal policy and major st ructural reforms, has integrated the Chinese 
economy into the globalized world, while transforming  China into one of the major sources of FDI in 
the world.  
367. Trade relations between the Kingdom of Saudi Ar abia and China go back many years. China 
and Saudi Arabia have made rema rkable achievements in economic, trade and energy cooperation. 
China is now Saudi Arabia's fourth  largest importer and fifth largest exporter, while Saudi Arabia is 
China's tenth largest importer and biggest oil s upplier. Trade between China and Saudi Arabia has 
been growing rapidly in recent years. Bilate ral trade between our two countries amounted to 
US$58.5 billion in 2011. The Kingdom of Saudi Arabia  sees China as an important economic partner 
for investment, joint venture, transfer of technology and joint projects in third countries. 
368. We would like to commend China for the way in which the country's accession commitments 
have been implemented. This augur s well for all of us and for the fu ture of the WTO and testifies to 
the importance that China attaches to the multilate ral trading system and its own responsibilities in 
that regard. China is a key player in the Doha  Development Round. We share China's commitment 
toward the DDA and hope that it can be concluded s oon in a fair, equitable and balanced manner. We 
also appreciate the important role that China play s in the multilateral trading system and in the WTO 
by H.E. Ambassador Yi and his competent delegation,  and we thank China in particular for recently 
organizing Beijing round table on best practices for LDCs accession. 
ANGOLA 
369. Since its last trade policy review in the WT O in 2010, and despite a complex, difficult and 
unstable international environment dominated by a financial crisis and a global economic recession, 
the Chinese Government has acceler ated the transformation of its economic development model 
through its unflagging efforts to boost domestic demand. 
370. Despite this, it has pressed ahead with its polic y of diversifying its economic and trading 
relations with the rest of the world and has sp ared no effort in moving the Doha Development 
Programme (DDP) forward. 
371. The Chinese economy as a whole has recorded stable and rapid growth, but has also shown 
some signs of downward pressures and trends.  GDP  growth moved from 12.1% to the 8.9% over the 
2010-2011 period, whilst the growth rate contracted appreciably.  Minimum wages increased by an average of 22%, as did those of migrant workers. 
372. As pertains to its budget policy, the Chin ese Government has successfully maintained its 
policy of structural tax reduction;  it has promul gated new fiscal legislation focused on individual WT/TPR/M/264 
Page 54  
 
  income tax, which has had the effect of reducing the tax burden on enterprises and investors.  China 
has also undertaken sweeping VAT reform. 
373. The People's Bank has continued to implement a flexible and measured monetary policy 
aimed at achieving balance between such major objectives as monetary stability, economic growth 
and full employment, as well as balance-of-payments equilibrium. 
374. Turning to the promotion of respect for and the protection of intellectual property rights, we 
congratulate the Chinese Government on its amendm ent of a number of laws and regulations on 
intellectual property rights, including the Copyri ght Law, and the Regulations on the Customs 
Protection of Intellectual Property Rights. 
375. As pertains to the reform of the social security and healthcare system, Angola commends the 
Government of China for its implementation of the framework of a pension insurance system and for 
the headway made in reforming the medical and healthcare system. 
376. To conclude, my delegation underlines China's role , leadership and active participation in the 
multilateral trade negotiations as well as its commitm ent to the Doha Development Programme in the 
framework of the WTO negotiations. 
ARGENTINA 
 
377. China and Argentina have had 40 years of fruitf ul bilateral relations the economic aspects of 
which were further intensified with the structuri ng of a strategic relationship in 2004.  This was 
further bolstered by the understandings reached duri ng the Presidential visit to China in 2010, which 
have given impetus to bilateral trade a nd cooperation in a broad range of areas. 
378. Today, Argentina and China are international players united by common goals, and are very 
active with respect to the global economic and trad ing agenda, especially in the WTO and in other 
forums such as the G-20.  In the WTO, China and Ar gentina have taken an active part in all stages of 
the Doha Round negotiations, prompted by the shar ed aim of strengthening the multilateral trading 
system, deepening the process of agricultural reform started under the Uruguay Round and striving for 
an outcome that will benefit developing countries.   We endorse China's position that the development 
mandate of the Doha Round should not be abandoned.  This level of  cooperation also occurs in the 
different areas of the regular work of the Organization. 
379. Various agreements were signed during the Presi dential visit to China in 2010, including a 
memorandum to expand and diversify trade relati ons and encourage productive investment based on 
the shared objectives of partnership and mutual bene fit.  Today, China is our second largest trading 
partner.  Bilateral trade amounted to US$16,597 milli on in 2011.  Argentina's exports to China were 
worth around US$6,000 million and its imports US$10, 573 million.  A comparison with 2010 shows 
that Argentine sales to China increased  by 3.9%, whilst imports rose 38.6%. 
380. Since the creation of a range of mechanisms fo r strengthening bilateral relations, such as the 
Trade and Economic Mixed Commission, the Bila teral Trade Monitoring Commission, and the 
Working Group for the Study of Economic and Trade Complementarity, there has been progress in 
executing several joint projects in the fields of rail transport, energy, mining, infrastructure and public 
works, all of which are making for the intensifi cation of bilateral economic relations.  Sectoral 
understandings have been reached this year in  the agriculture and livestock, sanitary and 
phytosanitary, agricultural biotechnology and bio-secu rity fields, and in the financial and fisheries 
sectors, amongst others.  We share China's view as  to the importance of a policy to regulate the 
marketing of national commodities, including export -related measures.  When designed to conserve 
natural resources and protect the environment such me asures are also legitimate tools of development.  WT/TPR/M/264 
 Page 55 
 
 
  381. The Secretariat Report shows that in 2010 and 2011 China recorded strong economic growth 
driven by a package of measures implemented from 2008 to 2010 to stimulate consumption and 
investment.  We hope that China will be able to  correct the macroeconomic imbalances resulting from 
measures taken in response to the economic and financ ial crisis that began in 2008.  We further hope 
that China will be able to expand its own dema nd for agricultural and manufactured goods and 
improve the mechanism for the setting of renminbi  exchange rates, stabilizing them around their 
equilibrium level, amongst other things. 
382. We therefore hope for the successful management of the 12th Five-Year Plan designed to 
reform the Chinese economy so that it is more driven by growth in domestic demand, and in which context China plans to stabilize exports, develop import s and thus reduce the trade surplus.  This is a 
prospect that holds enormous promi se for our strategic economic relations. 
383. We commend China for its commitment to the multilateral trading system as demonstrated 
through various initiatives such as quota- and duty-fr ee access to its market for the least developed 
countries, the Multilateral Cooperation Project on Cott on involving the main producers in Africa, and 
its support to the processes of accession to the WTO for least developed countries. 
384. We welcome China's statement regarding its de termination to forge ahead with bilateral 
cooperation.  Argentina is ready to continue to work towards increasing and diversifying the 
economic and trade relations cemented  with China over four decades. 
BARBADOS 
385. Since its last Review in 2010, the Chinese economy has had strong economic growth, helped 
mainly by a ¥4 trillion fiscal stimulus package and by  global recovery in trade after the 2008 global 
financial and economic crisis.  China, as the world' s third largest importer and second largest exporter, 
plays a critical role in the global economic and trad ing system. Its report shows that China has made 
concerted efforts over the past several years to meet growing global expectations. 
386. Economic recovery and growth of the Chin ese economy, has been based on macroeconomic 
policies aimed at maintaining stable overall prices and complemented by proactive fiscal policy and a 
monetary policy which is moderately easy to prudent  in order to prevent large economic fluctuations. 
Despite its phenomenal achievements, it is noted th at rising prices have impacted the costs of labour, 
resources, land and other factors of production.  Ho wever this has been kept to manageable levels. 
387. China's continued impressive growth and stab ility are important for the world economy and 
Barbados would like to join others in wishing Gove rnment of the People's Republic of China success 
in the planning and implementation of its 12
th Five Year Plan (2011-2015) which seeks to maintain 
steady and rapid economic development.  Success wi ll have a positive impact on other developing 
countries, including Barbados.  Increasing infl uence also carries increasing responsibilities. 
388. China continues to exhibit its commitment to the multilateral trading system through its full 
participation in the Doha Round of negotiations, particularly, in its support for advancing the 
development interests for developing countries, in cluding Small, Vulnerable Economies (SVEs). In 
this regard, my delegation enjoys a productive work ing relationship with the delegation of China and 
acknowledges the critical and active role that China plays in the ongoing DDA negotiations.  
389. China remains an important partner for Barbados , as this year will mark 35 years of formal 
diplomatic relations between Barb ados and Beijing.  Bilateral rela tions between the two countries are 
highly valued, and Barbados has benefited from ec onomic and technical cooperation with China, 
including in the areas of investment and culture. Ba rbados looks forward to this continuous dialogue 
with China. WT/TPR/M/264 
Page 56  
 
  V. REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL 
COMMENTS 
390. Today, I want to start my presentation with  responses to those issues of common interest  
among Members. Some Members seems to have an impression from the Secretariat's Report that in 
the past two years, there was little change to  China's policy on import and inbound investment.  A few 
are worried that China's reform and opening-up process is coming to standstill.  But such an 
impression is not right and may be due to compar ing China nowadays with China some years ago 
when the accession commitments were being implemen ted, and there were new developments every 
year. 
391. As a matter of fact, in the last two years when the DDA was in impasse, world trade and 
investment liberalization was set back. The Chin ese government never held back its reform and 
opening-up process. On the contrary, the Chinese gove rnment has firmly and steadily pushed forward 
reforms in key areas with greater determination and courage.   
392. In my statement at the meeting on 12 June, I already mentioned a host of policies that the 
Chinese Government has taken in the past two year s to deepen reform and further open up. These 
include reforms in the taxation system, reform of the RMB exchange rate pricing mechanism, steps 
towards market-based interest rates, voluntary appl ication of interim import tariffs lower than the 
MFN rates, new market access opportunities in such se rvice sectors as healthcare, tourism, insurance, 
securities, and revision of the Catalogue Guiding Foreign Investment in Industries.  
393. Today I can add more to illustrate. Reform of China's budget system has been advanced. The 
taxation regulations for domestic a nd foreign-invested enterprises and also individuals were unified at 
the end of 2010. Reform of state-owned enterpri ses has deepened, with dividends payment further 
increased in 2011. 
394. A latest move that Members may be interested in  is that the Ministry of Finance released on 
May 22 the revised  Interim Catalogue for the Classificati on of Government Procurement, which 
provides for sub-classification of government procur ement of goods, services and constructions based 
on the WTO GPA. This move aims to further refo rm government procurement system so as to meet 
the requirement of GPA accession.  
395. For details of the measures to deepen reform and further open up, Members could refer to the 
Government Report that we submitted. I want to  emphasize that China was making these efforts 
against the backdrop of the global financial crisis and a volatile internationa l environment. It shows 
that the Chinese government remains committed to reform and opening-up. I must emphasize these 
are new measures beyond China's WTO commitments and obligations. Such progress deserves to be 
recognized and commended by an organizati on that advocates equity and fairness. 
396. On stimulating domestic demand a nd economic rebalancing, this is  one of the key chapters of 
the Government Report. China has been making arduous efforts to work in that direction. The past 
two years witnessed some outcomes of our efforts to rebalance the economy.  
397. First, contribution by domestic and external demand to the GDP, as well as by domestic 
investment and consumption as a part of domestic demand to the GDP are changing positively (para. 27 of the Government Report).  Second, per capita income rise in rural areas have outpaced that 
in the urban areas in the last two years (para. 39 of the Government Report).  Third, shares of trade surplus and current account surp lus in GDP are going downward (para. 56 of the Government 
Report).  WT/TPR/M/264 
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  398. On the issue of the  transparency of China's trade and investment regime, improving 
transparency is an important part of China's reform on the administrative system. The Chinese 
government has continued with its efforts since the last TPR. 
399. On the issue of soliciting public opinions on legi slative drafts, it is now a common practice in 
China to solicit public comments th rough the internet. In particular, those drafts of administrative 
regulations of the State Council and departmental rules, which may ha ve direct effects on trade or 
investment, are posted on the official website of th e Legislative Affairs Office of the State Council for 
public comment. Such public comment system is al so made available on the website of the Standing 
Committee of the National People's Congress. 
400. On specific trade and investment policies and measures, regulations and notices by the 
Ministry of Commerce regardi ng import and export administration, trade remedy and FDI are 
published at our official website in a timely fashion.  They are also compiled into the "China Foreign 
Trade and Economic Cooperation Gazette" together  with trade related policies and measures 
promulgated by other government agencies. On the is sue of notification, China has fulfilled almost all 
of its notification obligations, except for subsidi es. Delay in subsidy notification is a universal 
problem among WTO members. The Chinese governme nt is working hard to overcome various 
complexities and insufficient capacity, and is bu ilding a mechanism that can ensure regular 
notification of subsidies at both the central and sub-central levels. 
401. On subsidies, as a WTO member, China has a clear position on this issue, that is, to play by 
the WTO rules. On the transparency  of subsidy policies, a working mechanism of central government 
subsidy notification has been established and put into  use. What we will do next is to extend our 
efforts to the sub-central level by training local o fficials and incorporating sub-central subsidies in the 
notifications.  
402. On China's  standard and accreditation system, China has adopted and will continue to adopt 
international standards during its modernization. Since 1980, China has always made international 
standards the foundation for technical regulations . By the end of 2011, 68% of China's national 
standards had adopted international standards or advanced foreign standards, far above our WTO 
commitment which is 50%. 
403. According to the TBT Agreement, exceptions ar e allowed in terms of adopting international 
standards. Developing members are not expected to use the international standards that are 
inconsistent with their development, fiscal or trade demands. In addition, in certain areas there are still 
no international standards, or no consensus on what international standards are under the TBT 
Agreement. In this context, we believe that it's unfair to say that China is developing its own 
standards and violates the TBT Agreement just becau se it does not follow the standards of some other 
Members in a few areas. 
404. The issue of foreign-invested enterprises' par ticipation in the formulation of standards was 
raised. The reality is that foreign enterprises are welcome to participate in national standardization 
activities in China. Measures on Administration of National Standards and re lated laws and related 
regulations and rules do not at all restrict the partic ipation of foreign-invested enterprises in technical 
committees or in the process of formulation or revision of national standards. At present, foreign-invested enterprises have participated in at least  25% of the technical committees, covering 120 areas 
of standardization in manufacturing, services, and agriculture, etc.  
405. China is open on the issue of standards and a ccreditation and is willing to discuss specific 
cases with other member in detail to build consen sus. China also supports more WTO dialogues on 
international standards under the TBT Agreement. WT/TPR/M/264 
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  406. On China's notification obligations in the area of TBT and SPS,  though China is among the 
Members that have made the most notifications, generally speaking, China has properly fulfilled its 
transparency obligations. 
407. Some Members mentioned that certain laws, regul ations or measures were not timely notified. 
I looked into this and found that the main reason is our staff had different opinions on whether the 
technical regulations should be notified under the TB T Agreement. For instance, some general laws 
and regulations are considered to  have no direct impact over trade, while some have adopted 
recommended standards or international sta ndards. I think these are technical issues. 
408. In order to push SPS and TBT related authorities to  better fulfil the notification obligation, we 
plan to seek technical assistance from the Secretariat and hold training programs on TBT and SPS 
notification in China next year. In the future, Chin a will have more exchanges with other members on 
these technical issues, as it will help both Ch ina and other members to better honour their 
transparency obligation in TBT and SPS.  
409. On IPR protection, the Chinese government has taken a clear-cut position, shown a strong 
determination and taken decisive  actions, with Premier Wen Jiabao and Vice Premier Wang Qishan 
are at the helm. IPR protection is China's national st rategy and is being implemented steadily.  In the 
past two years, the Chinese government has further improved IPR legislation and promoted the use of legal software. Moreover, it launched a special campaign on IPR enforcement and put in place a permanent mechanism to crack down on IPR infr ingement. More details can be found in the 
Government Report.  
410. We made further progress in IPR protection soon after the Government Report for this review 
was submitted. On May 15, the State Council relea sed the "Working Priorities in IPR Enforcement 
in 2012". Accordingly, China will carry out sp ecial IPR enforcement campaigns on trademark 
protection, copyright protection, patent protection, geographical indication protection, online shopping, exports and imports, drugs and cosmetics, a nd agricultural supplies, etc. More efforts will 
be made to fight infringement of trade secrets, and criminal punishment will have an important role to 
play in IPR protection. The Chinese government will make sustained efforts to improve enforcement 
of IPR laws and regulations.  
411. On the issue of export control, China indeed maintains such measures for some products, but 
all of them are consistent with WTO rules. E xport control on highly polluting, energy consuming 
products and exhaustible natural resources is a part  of our effort to protect the environment and 
achieve sustainable development under the mounting resource and environment pressure, therefore is 
necessary at present. The Dispute Settlement Body is now looking into cases between China and some 
members in this area. China will fully assess the final ruling and adopt sound measures in line with 
WTO rules, with the view to achieve sustainable development.  
412. There is one thing I need to add, to achieve  the same policy goals as export control, the 
Chinese government is advancing rela ted reforms. The resource tax reform has been launched. The 
collection of environmental tax is under study. Th e Chinese government will steadily push forward its 
efforts in this regard.  
413. About the agricultural policies, to address issues related to agriculture, rural areas and farmers 
is key to ensure long-term, stable and sustainable development of economy and society in China. In 
recent years, China has increased i nput in agriculture, rural areas a nd farmers to accelerate economic 
restructuring and promote balanced development. Yet, as a point of clarification, these are Green Box 
measures aiming at increasing farmers' income, with minimum distortion of agricultural production 
and trade.  WT/TPR/M/264 
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  414. China has noticed some Members' concern a bout the direction of China's agriculture 
supporting policies. These policies are in line with China's rights and obligations in the WTO, in 
terms of either implementation method or the amount of the support. Apart from the Green Box, 
China also has policy space in other boxes. Compar ed with the subsidies provided by some other 
WTO Members, China's support measures have little impact on trade. We are willing to keep 
communication and exchanges with other WTO Member s so that they can better understand China's 
rural areas and agricultural policies. 
415. In addition to common concerns mentioned above , the following questions were also raised 
by some members on June 12.  About government pr ocurement, China is working hard to speed up 
the process of joining the Government Procurement Agreement. To this end, China submitted its third 
offer within two years and included five relativ ely more developed provinces or municipalities in 
eastern China. By the end of this year, China will tr y to renew its offer. Meanwhile, the reform of our 
government procurement system is progressing. As I mentioned just now, Catalogue for the 
Classification of Government Procurement was revise d in line with GPA Agreement. All these efforts 
are a testament to China's good faith in join ing the Government Procurement Agreement. 
416. Nevertheless, China itself is a developing count ry and its reform of government procurement 
is not something that can be accomplished within a short time period. The state-owned enterprises are independent market players whose procurement and sales are not a pa rt of government procurement. 
Therefore, we hope that participants of the GPA can be visionary, flexible and pragmatic, and work 
with China to accelerate the negotiations. 
417. On trade remedies, China is the biggest target of trade remedy measures, as well as the major 
victim of abusing trade remedies. China is strongly against such practices. When China has to resort 
to trade remedies, we always do it through equitabl e and transparent procedures with utmost discreet 
and a sense of responsibility. China has established a sophisticated legal system on trade remedies, 
covering every link of the whole process, including initiation, sampling, questionnaire, disclosure of 
and access to information, site visit, and price undertakings. This provides legal guarantee for 
equitable procedures. In practice, China has strictly  abided by the WTO rules and its domestic laws in 
the investigations, adhered to the principles of be ing fair and equitable, followed proper procedures 
and ensured transparency. We fully respect the right s of every stakeholder, and make objective, fair 
and equitable rulings strictly based on laws and facts. 
418. With respect to the concern that some trad e remedy cases initiated by China are retaliatory 
measures, we believe that this statement is purel y speculative. Up to now, all China's anti-dumping 
and countervailing investigations are initiated on the basis of a duly substantiated claim by the 
petitioners. As in other WTO Members, China's i nvestigating authority is under the obligation to 
accept petitions that contain sufficient prima facie ev idence and will conduct the investigations in an 
objective and unbiased manner. 
419. On the issue of fair competition between st ate-owned enterprises and private enterprises, 
China sticks to the policy that public sectors a nd non-public sectors of the economy can achieve 
common development with mutual benefits. State-owned enterprises and enterprises of other ownerships are equal players in the market. The Chinese government will continue to build an open, 
transparent and fair market and legal environment, so as to create a level playing field for harmonious development.  
420. The Chinese government strongly supports the de velopment of non-public sectors. Related 
measures have been illustrated in our Government Re port for this and the last TPR. As I mentioned on 
June 12, the Ministry of Transport issued a doc ument encouraging private investment in land and 
water transportation on April 13. The Ministry of Railways also issued a document encouraging 
private investment in railways transport on May 18. These sectors are confirmed to be open to private WT/TPR/M/264 
Page 60  
 
  capital. In addition, a host of implementation rules to  further promote private capital's participation in 
certain sectors will be publicized in the near future.  
421. About the further opening up of trade in services, though as a developing country, China 
started late and remains inexperienced in many service sectors. However, it has been forging ahead 
with reform and opening up in these sectors.  
422. On January 1, 2012, the Chinese government launched the pilot reform on converting 
business tax to VAT for the purpose of acceleratin g the development of services sectors. Detailed 
information about the further opening up of service sectors is included in my statement on June 12. In the newly revised Catalogue for the Guidance of Fore ign Investment Industries, a series of services 
sectors including rural chain distribution, venture capital enterprises, intellectual property services, 
technical services for cleaning offshore oil pollu tion and vocational training are added to the 
encouraged industries. The proportion of services in encouraged industries is further expanded. 
Foreign investments in medical institutions and fina ncial lease companies are adjusted into permitted 
industries. It is China's established policy to acceler ate the development of service sector, improve its 
level and increase its share in our national economy. 
423. On the issue of aid for trade, the Chinese dele gation wants to express its appreciation to other 
Member delegations for your friendly remarks. The mutual assistance between China and other 
developing countries is an important way to rea lize common development for the developing world. 
China will continue to provide aid to other developing  partners to the best of its capacity, help them 
improve the capability for independent developm ent, and promote their economic and social 
development. In this regard, China will adhere to  its principle of putting first partner countries' own 
aspirations, and implementing projects through consultation without attaching any string.  
424. This is my response to the major questions raised by the discussant and other Members.  
DISCUSSANT 
425. My closing remarks will be guided by the following questions:  What are the most important 
contributions that China has brought, and can bring, to  the world trade?  What are the most prominent 
pieces of policy advice, that Member s have asked China to consider? 
426. WTO Members acknowledge the leadership role th at China has been able to maintain in 
global economic management despite the economic and financial crises. Via, inter alia , its big 
stimulus package in 2008 and its ability to resist  protectionist pressures with other G-20 partners, 
China is – and will continue to be – one of  the main drivers of international trade. 
427. Even if China's growth rates these years are no longer double-digit figures, Chinas growth is 
still impressive. Not only China's economy, but also Chin a's part in world trade will continue to grow 
– and most likely considerably more than in other parts of the world.  China's role in the world 
economy, and in world trade, is increasingly becoming " incontournable " – or, if you prefer, no one 
can any longer ignore the impact of China's economy. 
428. No wonder that the "participation rate" in this  China's fourth TPR has been so high. No 
wonder that more than 1700 written questions have  been put to the Chinese delegation. And no 
wonder that Members have addressed so many polic y recommendations to the Chinese authorities, as 
reflected in the many written questions and the many oral statements made on Tuesday. 
429. Members have expressed the hope that China w ill continue – and if possible speed up – its 
economic reforms, and in particular in policy areas  of importance to international trade.  Members 
have acknowledged China's support for the Doha agenda, for South-South trade and for LDC  WT/TPR/M/264 
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  participation in WTO.  Members have recommended that China's trade and investment regime should 
be subject to further liberalisation, in particular in  areas of relevance to the service sector, that further 
transparency should be provided for in the inst itutional and legal framework, and the China's 
investment regime should be made  less complex, in order to promote foreign investments.   
430. Members have recommended the Chinese author ities to review trade policy measures and 
practices in a variety of areas, such as import restrictions, anti-dumping, standards and their 
enforcements – plus, and not least, that China mi ght soon join the GPA.  Members have also 
recommended that other policy areas that affect trad e would be reconsidered, such as subsidies, both 
at national and sub-national leve ls, competition policy, and IPRs. 
431. In some respects concerns have been brought fo rward in more critical form, for example that 
some of China's regulatory measures in some services areas are discriminatory towards foreign 
suppliers, or that some of China's subsidies give rise to serious concern, in agriculture and particularly 
in fisheries. As your discussant, I will allow mysel f to believe, that both the multitude, the variety and 
- in some cases the strength of – the views and recommendations expressed by Members confirm my claim: China's economy has truly become " incontournable "! 
EUROPEAN UNION 
432. Today, we would like to present some comments and observations on the replies received and 
also explain some follow-up questions. Let me start with our comments on some of the main issues.  
First of all, the statements delivered on the first da y of this exercise underlined that China has by now 
become one of the top trading partners, and often al so one of the fastest growing trading partners, for 
many Members. But with size comes responsibility, and therefore we would like to fully share the 
view of all Members who called upon China to show more leadership in the WTO, honour all 
transparency requirements – including notification re quirements that may be very resource-intensive – 
and lead by example. 
433. Transparency was by no doubt the concern that was raised most on Tuesday – by developed 
and developing countries alike. It also featured prominently in the Secretariat's report. We are 
therefore surprised by China's reply to our qu estion 6 that it has "strictly honoured its WTO 
commitments" and that "since August 2011 the drafts  of all economic and trade-related administrative 
regulations and departmental rules have been made public with more than 30 days for the public to 
make comments – apart from individual cases of urgency".  Recurring discussions in the TBT 
Committee, ongoing in parallel to the TPR this week, how ever, show that in reality this is not always 
the case and often comments to consulations have  to be provided in much shorter periods.  
434. Regarding subsidies - another prominent theme of this TPR exercise - we would urge China 
to double its efforts to provide a notification al so on local subsidy programs – without, however, 
delaying its overdue notification of subsidies gran ted over the 2009-11 period. We are in particular 
also looking forward to receiving information as soon as possible on China's renewable energy fund. 
435. Standard setting and the importance of aligning with international standards is recognised by 
the Chinese Government itself since it set a target of having 85% of national standards being set on 
international standards – a target that was again re peated in the current Five Year Plan. We were 
therefore surprised to note in the replies to qu estions 30 to 32 that China currently has no recent 
statistics available on the number of standards based on international standard s. We have noted the 
statement of this morning referring to 68% of standards being based on international standards 
end 2011 and encourage China to cont inue its efforts in this area.  
436. Regarding the issue of technology transfer we are pleased with China's clarification that 
"technology cooperation and transfer are voluntary be haviours of enterprises and that China will not WT/TPR/M/264 
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  take technology transfer as a precondition for market access". However we are not fully reassured 
since the EU often hears complaints from its i ndustry about being pressured in accepting conditions 
imposed upon them that require a degree of forced technology transfer - to the local joint venture 
partner for instance. Therefore we would like to kindly  inform if there exists an entity or complaints 
office at central level where companies can speak  up if instances occur where technology transfer 
conditions would be imposed upon them at lower level? 
437. Regarding services we have taken good note that China reserves its right to undertake further 
liberalisation in the context of the DDA. However we would invite China to open up more and also to 
provide more transparency – again – and remove licensing requirements and other barriers that de 
facto limit foreign service providers from doing business in and with China. In this respect we would 
like to note that we disagree with the reply to our  question 144 that the approval process for licensing 
requirements and procedures for banking services "is al ready transparent enough". We continue to be 
convinced that this is an area where there remains great room for improvement. 
438. Regarding government procurement we have noted in the replies that it will be left to the sub-
central governments to decide whether or not includ e their procurements in China's GPA offer. We 
would like to take this opportunity to again expr ess our expectation that China's revised GPA offer 
will be ambitious and comprehensiv e – and important metrics to eval uate this will be the degree of 
participation by sub-central entities and the offere d commitments regarding state-owned enterprises. 
439. As mentioned, we have also prepared some follow-up questions and one additional question. I 
will not read these out in full here, but would like to limit myself to mentioning the main issues where 
our experts are seeking additional information. 
440. First, on export credits, we would appreciate some further information on conditions under 
which export credits are granted by China's EXIM bank and China's Development Bank. With regard 
to the specific reply given to our question 79 we would like to call upon China - and all major providers of export credits – to swiftly start worki ng together towards agreeing a set of international 
guidelines.   
441. Second, on IPR enforcement, we would like to ask China to further clarify the consistency 
and recognition between judicial decisions taken by different courts.  Third, on agriculture, we would 
appreciate additional information on the interim purchasing modalities for commodities.  
442. Four, on services, we have presented follow-up questions on Computer Reservation Services. 
On the latter, the EU - like othe r WTO Members - has a substantial interest that this longstanding 
trade irritant is solved and that  China, in line with its WTO commitments, opens up its market to 
foreign CRS providers. This would attract new inv estments into China and provide a far better service 
for consumers in the currently underdeveloped CRS market. We therefore very much hope that the 
new envisaged measures will in real terms ope n new actual business opportunities for foreign CRS 
providers, undistorted by administrative burdens or uncompetitive behaviour by current monopolies. 
443. Finally, on the origin labelling requirements we  are asking China to provide some detailed 
information, as unfortunately the websites referred to in China's initial reply are only available in 
Chinese. 
444. The EU is also taking the opportunity to s ubmit one additional question on China's value 
added tax regime for regional airc raft, which seems to create a discriminatory treatment between 
domestically and foreign-produced regional aircra ft. As always, we are submitting our follow-up and 
additional questions in writing through the Secretariat,  and we look forward to receiving the replies to 
these questions within one month of the meeting.    WT/TPR/M/264 
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  JAPAN 
445. This TPR is a great opportunity for China to de monstrate its commitment to transparency, in 
particular, by providing substantial answers to the questions raised by WTO Members. In this context, 
in many areas, these replies have given us useful  clarification. We have  submitted today follow-up 
questions on certain areas where further clarification is needed, for example, on some specific TBT 
issues, government procurement by SOEs, IPR issues  regarding Article 355 of the Contract Law and 
proposed amendment of Article 46 of the Copyrigh t Law, data on public stockholding of food, and 
clear explanation of the requirements for foreign participation in the constructor exam.  We look 
forward to receiving replies in due course.   
446. Japan reiterates its appreciation for China's ongoing efforts in improving its legal system 
related to trade. Japan, however, eagerly hopes for effective enforcement of these legislative changes 
on the ground. The Japanese Chamber of Commerce and Industry in China emphasizes, in its annual 
report last year, that a lack of transparency and predictability is one of the most outstanding common 
challenges that Japanese companie s face in the Chinese market. 
447. Today, I would also like to express our specific concerns regarding service sectors. In 
telecommunications, while the minimum registered capital for telecommunications was reduced to 
1 billion yuan at the national level, this still rema ins quite high particularly for those resale-based 
operators. Since resale based service does not necessarily  require substantial capital investment, Japan 
believes this level of requirement constitutes an unnecessary entry barrier.  
448. With regard to logistics services, the criteri a for designated agents, which are required for 
railroad transport services provided by the Ministry  of Railways, should be clarified in terms of 
foreign participation, so that a level playing field for all service suppliers is provided.  On government 
procurement, we would like to echo the points made by  the EU with regard to the need to have more 
extensive coverage of local governments and st ate owned enterprises in its future offer. 
449. Our bilateral trade and investment in China has further expanded since the previous review. In 
addition to discussion in multilateral and regional fo ra, trade-related issues can be discussed through 
bilateral mechanisms such as the High Level Economic Dialogue at the Ministerial level. 
450. Before concluding, Japan once again thanks  the Chinese Delegation for its valuable 
engagement to further develop the win-win relati onship between China and its trading partners and 
also efforts to make this review meaningful.  
UNITED STATES 
451. We would like to take this opportunity to rais e a couple of follow-up questions and also offer 
a number of comments. First, in our first question,  we had noted that, in its Protocol of Accession, 
China committed to provide a reasonable period of comment to the appropriate authorities before 
laws, regulations and other measures are implemented, subject to limited exceptions.  We then asked 
China to comment on a study conducted by the U. S.-China Business Council that found that only 
3 out of 9 trade-related laws and only 49% of trad e-related regulations and departmental rules had 
been circulated for public comment during th e period from March 2011 to March 2012.  China's 
response was two-fold.   
452. First, China asserted that it had made no commitment to solicit public comment on trade-
related laws, regulations and other measures.  Second, it main tained that since July 2011 it had 
published all trade-related regulati ons and departmental rules for public comment.  We find it 
puzzling that China would claim that it made no commitment to solicit public comment, and we 
would refer China to paragraph 2(C)2 of Part I of its Protocol of Accession.  We would also ask China WT/TPR/M/264 
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  to clarify its statement that it has solicited pub lic comment on all trade -related regulations and 
departmental rules since July 2011, given that this st atement is contradicted by the results of the U.S.-
China Business Council study as well as an independ ent review conducted by the United States.  In 
addition, we note that China did not respond to the part of our question addressing trade-related laws, 
and we would therefore ask that China provide a response on that front as well. 
453. In U.S. question 3, we had addressed China's October 2011 subsidies notification pursuant to 
Article 25.1 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement).  Among 
other things, we noted that shortly before that notification we had submitted a counter notification 
pursuant to Article 25.10 of the SCM Agreement, a nd that China's subsequent subsidies notification 
had only addressed 10 of the 200 subsidies identified in the U.S. counter notification.  In its response 
to U.S. question 3, China asserted that it had includ ed many of the 200 subsidies in its subsequent 
subsidies notification, and China indicated that it had no plans to notify the remaining subsidies 
promptly, as called for by Article 25.10.  Instead, Ch ina stated that it would include them when it 
notified its sub-central government subsidies.  This response is very disappointing.   
454. First, at the last meeting of the Committee on Subsidies and Countervailing Measures, China 
only identified four subsidies that overlapped between the U.S. counter notification and China's 
subsequent subsidies notification.  Second, Chin a has never notified any of its considerable sub-
central government subsidies, and in response to  another U.S. question China could provide no 
timetable for when it would make its first notific ation of sub-central government subsidies.  The 
United States therefore urges China to notify all of  the outstanding subsidies identified in the U.S. 
counter notification promptly, and the United States fu rther asks that China identify a timetable for its 
notification of its sub-central government subsidies. 
455. In U.S. question 4, we had asked about a different subject – technology transfer.  We 
explained in our question that Chinese law treat ed foreign companies and imported technology 
different from domestic companies and domestic tec hnology.  We then asked China to explain how it 
justifies this differential treatment in light of its obligations under the Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS Agre ement).  However, China did not answer this 
question.  Instead, China responded that this differen tial treatment is authorized by Chinese law.  We 
would therefore ask again that China explain how it ju stifies this differential treatment in light of its 
obligations under the TRIPS Agreement. 
456. In reviewing various Members' questions on China's economic environment, we could see 
that many Members are particularly interested in learning more about China's strategies for 
rebalancing its economic growth and, in particular, shifti ng toward domestic demand-led growth. 
457. In reviewing China's responses, we are pleased to receive China's assurance that it attaches 
"great importance" to this effort.  We believe that  it will be beneficial both to China and its trading 
partners for China to move further in the directi on of domestic demand-led growth as expeditiously as 
possible. 
458. We note that in our questions we highlighted the importance of China pursuing an increased 
role for services in generating domestic growth.  In  our view, growth in China's services sector will 
generate strong employment as well as improved dom estic infrastructure that will contribute to a 
sustainable development path, unlike that offered by continued promotion of  export-oriented goods 
manufacturing.  We believe that China shares this assessment and urge China to move forward more 
rapidly with services openings. 
459. We also seek clarification regarding China's re sponse to U.S. question 5, in which we had 
asked China to comment on a stat ement in the Secretariat's Report asserting that the privileged 
position of state-owned enterprises (SOEs), such as in  their access to bank lending, had contributed to  WT/TPR/M/264 
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  over investment and overcapacity.  In its response, China stated that "[c]redit is the self-decisive 
behaviour of market entities and the Chinese governme nt does not interfere."  The United States is 
confused by this response.  According to the China 2030  report, jointly authored by the World Bank 
and the State Council's Development Research Center , SOEs pay much lower average interest rates 
for their debt than other borrowers such as priv ate firms and cooperatives, and SOEs as a class have 
enjoyed access to cheaper capital, land and na tural resources. At the same time, the China 2030  report 
also states that SOEs are consistently less prof itable and less innovative than non-state-owned firms.  
We would ask that China explain how "the self-decisi ve behaviour of market entities" results in much 
cheaper access to credit fo r chronically weaker SOEs. 
460. Turning to Trade Policies and Practices by M easures, in U.S. question 22, we had asked 
China to explain when it would issue regulations governing anti-dumping expiry reviews.  China 
responded that it "strictly follow[s] the principle of appropriate procedures and transparency to ensure 
the interests and rights of stakeholders" and "specifi c procedures exist" in its practice.  Can China 
explain whether these procedures are set forth in a written document?  If so, can China publish that 
document so that interested parties are aware of the applicable procedures? 
461. In U.S. question 39, the United States asked several questions about China's VAT rebate 
policies, which the Secretariat's Report equated with  a "levy on exports."  In its response, China 
seemed to suggest that countries other than Chin a used similar VAT reba te policies, where VAT 
rebate rates for exports vary be tween and among exported products.  The United States is not aware of 
any other country that uses these policies.  Can Chin a tell us who they are referring to?  Also, in its 
response, China explained that it used variable VAT  rebate rates not as a means to encourage certain 
exports and discourage certain other exports, but rather as a fiscal tool  to raise additional revenue for 
the government.  China added that it needs this addi tional revenue because it is a developing country.  
If that is correct, can China explain why its VAT re bate rates vary from product to product and are not 
uniform across all products?   
462. In U.S. question 43, we had referenced th e panel and Appellate body decisions in the China – 
Raw Materials  dispute, which addressed export restrictions  on nine industrial raw materials.  Among 
other things, we had asked whether China planned to  eliminate all of its export duties that are not 
listed in Annex 6 to its Protocol of Accession, not  just the export duties on the nine industrial raw 
materials involved in this dispute, given the sweeping nature of the findings on export duties.  In response, China stated:  "China will take measures conforms [sic] to WTO's discipline in regard of 
export administration on products beyond the 9 products ."   Can China clarify what it means by this 
statement?  Is China stating that it will eliminate a ll of its export duties that are not listed in Annex 6 
to its Protocol of Accession, not just the export du ties on the nine industrial raw materials involved in 
the China – Raw Materials  dispute? 
463. In U.S. question 51, we had asked China to identify all measures relating to China's "export 
bases" for autos and auto parts.  We also had asked China to describe the support provided to 
manufacturers of autos and auto parts in connection with these export bases over the past 3 years, and 
to explain this support in light of China's obliga tions under Article 3 of the SCM Agreement.  In 
response, China only cited to its 2009 auto plan.  Can China identify all measures relating to these 
export bases, including all measures providing support  to manufacturers of autos and auto parts in 
connection with these export bases?  Can China al so describe the support provided to these 
manufacturers and explain this support in light of  China's obligations under Article 3 of the SCM 
Agreement? 
464. Regarding Trade Policies by Sector, in U.S. question 84, we had asked China to provide 
information about subsidy programs benefiting th e fisheries sector, which exceeded more than 
US$4 billion in 2003 according to one report.  In its response, China stated that it would only provide information about these subsidies after WTO Members agreed to disciplines on fisheries subsidies.  WT/TPR/M/264 
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  The United States notes that existing SCM Agreemen t rules already obligate Members to notify all 
subsidies, including fisheries subsidies, and that  this obligation is not in any way contingent on 
Members first agreeing to fisheries disciplines.  The United States would therefore ask again that 
China provide the information on its fisheri es subsidies requested by U.S. question 84. 
465. In U.S. question 93, we had asked China to  explain how China's state-owned commercial 
banks (SOCBs) can base their lending decisions en tirely on commercial considerations when they 
must take into consideration the needs of nationa l economic and social development and the guidance 
provided by the Chinese Government's industrial policies.   In its response, China nevertheless insisted 
that SOCBs make their lending decisions entirely on  commercial considerations.  China noted that 
Article 34 of the Commercial Bank Law of the Pe ople's Republic of China provides that SOCBs 
should take into consideration the needs of na tional economic and social development and the 
guidance provided by the Chinese Government's industr ial policies, but it is only a general guideline 
and not a statutorily binding oblig ation.  Can China explain why Ar ticle 34 uses the mandatory term 
"shall" instead of permissive terms like "may" or "should"?  
466. In U.S. question 104, we had asked when Ch ina will circulate draft computer reservation 
systems regulations for public comment.  In its re sponse, China explained that the Civil Aviation 
Administration of China (CAAC) had solicited the opinions of select parties on a draft measure and that the CAAC would next be promulgating the final measure.  Based on this response, it appears that 
CAAC does not intend to publish the draft measure for public comment, despite China's response to 
U.S. question 2, in which China asserted that it published all draft trade -related regulations and 
departmental rules for public comment, except in "s ome urgent and extraordinary conditions."  Is the 
United States' understanding correct? 
467. In U.S. question 107, we had asked Chin a to clarify whether it places any geographic 
limitations on foreign suppliers engaging in domestic express delivery services for packages.  The 
United States welcomes China's clear statemen t that it does not impose geographic limitations. 
468. In U.S. question 109, we had asked why China requires an internet content provider license 
for an internet company engaging in retail sales.  In  its response, China referred us to the home page 
of the Ministry of Industry and Information Technology's website. We cannot discern from that 
website why China requires an internet content prov ider license for an internet company engaging in 
retail sales.  Can China explain how retail sales qua lify as the provision of internet content? 
469. Before concluding, I would like to note that we will be submitting a few additional follow-up 
questions in writing later today, and we look forw ard to China's responses to those questions.   
MEXICO 
470. I should like to convey my thanks for the repli es received to our questions.  We have been 
instructed by our capital, however, to request greater detail and an individual reply to our 
questions 21 to 24 regarding sanitary and phytosanita ry measures applied to alcoholic beverages, and 
in particular to our tequila. 
471. Moreover, in the light of China's request for cl arification of our first question regarding the 
current state of implementation of its Authori zed Economic Operator Programme, I should like to 
point out that we were referring to the Class AA  Enterprise Program, which is mentioned in the 
APEC Authorized Economic Operator Compendium of September 2010.  I should like to point out 
that an authorized economic operator is defined by the National Customs Administration as an entity 
involved in the international movement of goods in  whatever function that has been approved or is 
being discharged on behalf of the National Custom s Administration.  This request as well as the  WT/TPR/M/264 
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  information regarding the first question have alre ady been sent to our coll eagues both from China and 
from the WTO Secretariat. 
CANADA 
472. Canada has some follow-up questi ons, and we are looking for clarification particularly in the 
area of transparency, on institutional legal fra mework, standards and technical regulations, 
government procurement, intellectual property regime , and financial services.  We do look forward to 
receive the responses to those qu estions within the time frame. 
CHINA 
473. Just now some Members raised follow-up ques tions, new questions, a dditional questions, and 
comments, and we will prepare the answers once we receive the questions in writing.  I am very 
pleased to discuss with you Ambassador Smidt and other Member delegations the general objectives 
and specific aspects of China's economic and trade po licies since the last Review.  As the Review 
comes to a conclusion I would like to express my sincere thanks to you Mr. Chair, other Member delegations and Ambassador Smidt for the candid an d extensive exchanges in the past two days. 
474. The Chinese government attaches great importanc e to the TPR as it is an essential mechanism 
that allows WTO members to conduct peer reviews and improve the transparency of their economic 
and trade system and policies. China, as the wo rld's largest developing country, faces extremely 
complex challenges on its path to strong, sustai ned and balanced growth. We wish, through the 
Review, Member countries will gain a better unders tanding of this reality in China and recognize 
China's continuous efforts to reform, open up an d improve its economic and trade regime and 
policies. Surely we will never standstill or rollback. We  believe standstill or rollback is a dead end for 
China. 
475. We listened attentively to your comments and questions as well as the messages you wish to 
convey. Most of these comments and questions are c onstructive and consistent with our target of 
deepening reform and opening up. We attach great importance to such questions and comments. For 
some questions resulted from misconceptions, we w ill keep in close consultation with Members to 
expand mutual understanding and build consensus. 
476. TPR is an important function of  the WTO, and I believe that it should be based on WTO rules 
and should not be politicized. However I note with regret that some Member labelled China as 
practicing state capitalism on June 12. The term ca nnot be found in GATT or WTO documents. It has 
nothing to do with the TPR or WTO rules. We strongly believe TPR should not be abused for the 
purpose of domestic politics. 
477. I believe, as long as we carry out this exercise in a friendly, constructive manner and give 
constructive comments and raise questions following WTO rules, the TPR can mean much more than 
the Review itself to the Member under Review, a nd to the entire WTO Membership.  That is the 
belief we held as we came to this Review. And th is is the belief we will hold as we come to other 
Members' Review. WT/TPR/M/264 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
478. This fourth Trade Policy Review (TPR) of China has provided Members an opportunity to 
conduct a collective appreciation and evaluation of  the full range of China's trade policies and 
practices and their impact on the functioning of the multilateral trading system.  I wish to thank the 
Chinese delegation, headed by H.E. Mr. Yu Jianhua, Assistant Minister in the Ministry of Commerce, 
for their active participation and H.E. Ambassador  Steffen Smidt of Denmark for his valuable 
contribution as the discussant.  The keen interest shown by Members in this Review, as reflected in 
the large number of statements made and of advan ce written questions posed, testifies to the important 
role played by China in international trade and in the WTO.  The TPRB appreciates China's responses 
to the questions it received, and looks forward to receiving any outstanding answers within a month.   
479. This TPR of China has taken place against the background of the lingering effects of the 
global financial and economic crises  and the difficult economic situati on that continues to prevail.  
Prompt actions by China through fiscal stimulus a nd prudential monetary polic ies were welcomed.  It 
was noted that this had resulted in domestic dema nd playing a substantially more important role in 
China's growth in recent years and to some easing  of macroeconomic imbalances that had been 
remarked on in previous reviews.  Members comment ed on the important role that a well-functioning 
multilateral trading system plays in helping China to sustain its growth and development, and were 
encouraged to note that China has kept its mark ets open and resisted protectionist pressures during 
this difficult period. 
480. Many Members commended China's constructiv e role in the WTO in seeking ways to 
advance the Doha Development Agenda, particular ly its development dimension, in encouraging 
South-South cooperation, in assisting LDCs' accession to the WTO, in offering zero tariffs for imports 
from 36 LDCs and the Chinese President's recent announcement that China is raising its DFQF 
treatment to 97%.  
481. It was noted that multilateral transparency plays a critical role in the functioning of the WTO 
Agreements and in giving practical meaning to  market access opportunities for the traders and 
investors of all Members.  China was encouraged to  continue to build on the progress it has made by 
fulfilling all of the WTO's transparency requir ements, including by providing full and prompt 
notifications of its trade and trade-related measures. 
482. This Review has highlighted some key areas for further actions or improvements.  I note from 
China's statements delivered Tuesday  and this morning that action is already being taken or is being 
considered in several of these areas.  I have also taken careful note of China's continued willingness to 
discuss with Members issues where further clarificati on or solution of problems is deemed necessary: 
 Standards, SPS, and other technical requirements:   Members urged China to enhance the 
transparency of its standards, technical regula tions and SPS measures, particularly by taking 
further steps such as notifying more measures and providing more opportunities for 
consultations with its trading partners prior to introducing new measures.  China was also 
encouraged to simplify its conformity assess ment procedures and to use international 
standards to a greater extent.   
 
 Intellectual property rights:   Members appreciated that China has promulgated or amended 
a number of laws, regulations, and departmental rules regarding the protection of intellectual 
property rights and its domestic dispute settleme nt.  However, concerns were expressed about 
China's current practices regarding the protecti on of trademarks and technology transfers.  
Some views were also expressed about the need to strengthen enforcement aspects of 
intellectual property rights.    WT/TPR/M/264 
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   Agriculture:   Members noted that the value of agriculture production and the amount of 
government support to agriculture had increased considerably over the past few years, and 
that China is now the world's largest produ cer of several major agricultural products, 
including rice, cotton, wheat and potatoes. Many Members asked for more information on 
China's agriculture programmes and urged China to bring its WTO agriculture notifications 
up to date. 
 
 Government procurement: China was encouraged to submit its revised offer as soon as 
possible in the context of acceding to the Ag reement on Government Procurement. It was 
noted that China had decoupled its governme nt procurement practices from its indigenous 
innovation initiative. Members were interested to  have more informa tion about procurement 
activities at the sub-central level.  
 Services: Some Members felt there is room for improvement in market access and investment 
conditions in:  banking, insurance, securiti es, construction, telecommunications, express 
delivery, legal services, electronic payments, l ogistics, and transport. Capital requirements, 
branching restrictions, licensing procedures, regulatory processes and informal bans were 
particularly mentioned as areas where obstacles need to be removed. 
 
 Contingency trade measures:   Concerns were expressed about the impacts of China's 
increased resort to anti-dumping and counterva iling measures, and about procedures such as 
the transparency of investigations, remedial me asures proportional to the injury and the length 
of time some individual measures have been kept in place.  
 
 Subsidies:   Members welcomed that in 2011 China had submitted its new notification of 
subsidies covering the central government's assistance programmes for the period 2005-2008. 
However, it was noted that very little informa tion is available on sub-central level subsidy 
programmes and China was urged to update its s ubsidy notification to cover the last three 
years on a comprehensive basis. China was also enc ouraged to notify its fisheries subsidies.   
 
 Export regime:   Many Members expressed concerns over aspects of China's export regime, 
notably: restrictions, licensing, quotas, export taxes and partial VAT rebates.  
 State-owned enterprises and competition:   It was noted that state-owned enterprises 
continue to play a central role in China's economy and foreign trade, and China was encouraged to take more steps to ensure  a level-playing field for competition among 
enterprises irrespective of their ownership.  
 
 Customs procedures and non-tariff border measures:   China was encouraged to continue 
streamlining its customs procedures and to make  other trade facilitation improvements.  China 
was also encouraged to incr ease the transparency of its import licensing procedures.    
483. Overall, this fourth Trade Policy Review ( TPR) of China has given us a sense of China's 
growing importance in the world economy in gene ral and in the multilateral trading system in 
particular.  I am sure that the Chinese delegation -a bly led by Assistant Minister Yu- is today more 
aware than ever about their country's role in the world of international trade and about the increased 
responsibilities that come with it.  We hope that th is exercise will serve the Chinese Government to 
continue to reflect on its trade policies and how th ey can continue to have a positive impact on the 
multilateral trading system and the wo rld economy in the years to come.   WT/TPR/M/264 
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  484. Finally, let me say that I leave this session hear tened by the hope that a deeper, more intense 
dialogue between China and the rest of the Members of the WTO will emerge out of this exercise.  I 
thank Assistant Minister Yu for his statemen ts this morning in that regard.     
485. Let me thank again Assistant Minister Yu and his delegation for their constructive efforts in 
preparing for and participating in this Review.  
__________