WORLD TRADE  
ORGANIZATION  WT/TPR/M/230 
29 June 2010 
 (10-3549) 
Trade Policy Review Body 
31 May and 2 June 2010  
 
 
 
TRADE POLICY REVIEW 
 
CHINA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA 5 
III. STATEMENT BY THE DISCUSSANT 8 
IV. STATEMENTS BY MEMBERS 11 V. REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL 
 COMMENTS  53 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 65 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by China are 
reproduced in document WT/TPR/M/230/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/230 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The third Trade Policy Review of China was held on 31 May and 2 June 2010.  
The Chairperson H.E. Mr. Bozkurt Aran (Turkey)  welcomed the delegation of China, headed by 
Mr. Yi Xiaozhun, Vice Minister of the Ministry of Commerce, and the discussant, H.E. Mrs. Marie-
Claire Swärd Capra (Sweden).   
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/230 and 
that of the WTO Secretariat in WT/TPR/S/230. 
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:  Brazil;  Korea;  Pakistan; Norway; 
Australia; Switzerland; the EU; Egypt; Hong Kong, China; Turkey; Malaysia; Singapore; the United 
States; India; Chinese Taipei; Japan; Canada; New Zealand; Peru; Mexico; and Ecuador.  Canada, 
Mexico, and the United States also submitted questions jointly.   
4. Some of the above delegations as well as Ch ile, Argentina, Costa Rica, Colombia, and 
Thailand submitted written questions after the two-week deadline. 
5. The Chairperson said that central to the WTO' s mission was multilateral transparency and 
consultation. They helped avoi d misunderstandings and trade dis putes.  That kind of cooperation 
among Members on trade and related issues c ould also be a catalyst for negotiations. 
6. China was continuing to integrate itself into the global economy, through, inter alia , the 
multilateral trade framework.  Chin a relied heavily on a well-functioning multilateral trading system. 
It also had a prominent role to play in the WTO;   China was helping to boost global recovery and 
growth, and could help conclude the DDA. 
7. The Chairperson said that he had considered the reports prepared for the Review and he noted 
that since China’s previous Trade Policy Review in 2008, it had con tinued to liberalize gradually its 
international trade and investment regime.  Ch ina's export-driven economy was hit by the global 
economic recession that began in late 2008. Howe ver, its growth rebounded quickly and China 
achieved real GDP growth rate of 8.7% in 2009.  The year-on-year GDP growth rate reached 11.9% 
in the first quarter of 2010.  In January 2010, Ch ina overtook Germany to become the world's largest 
exporter.  China remained the world's second largest importer, behind the United States.  
8. China largely resisted a protectionist response to the negative effects of the global economic 
recession, just like other WTO Members.  Inst ead, the Government had responded by introducing 
expansionary fiscal and monetary po licies to offset the sharp decline in external demand, putting more 
emphasis on domestic demand to drive GDP growth . In particular, China announced a Y 4 trillion 
economic stimulus package in November 2008, accounting for 13% of GDP in 2008 and covering a 
period of two years.  Consequently, China's econom y recovered quickly, and it is helping a global 
recovery now. 
9. The crisis had reinforced China's intention to offset several imbalances in its economy, many 
of which were arguably structural in nature.  Th e Government recognized that temporary measures 
alone were not sufficient.  More longer-term structur al reforms were needed to diversify its economic 
structure from manufacturing to services and agricu lture, reform SOEs, improve its capital market, 
and strengthen its social safety net.  These reforms would also help to reduce national savings, which 
was more than half of GDP, and thus contributed  to address the issue of current account surplus in 
China. WT/TPR/M/230 
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  10. China remained the largest developing country reci pient of foreign direct investment.  To rely 
less on manufacturing, the Government had relaxed FDI restrictions on some services sectors, particularly in telecommunications and tourism.  The Central Government had been delegating to 
local governments licensing authority for foreign invested enterprises. 
11. China bound all its MFN tariffs, and the bound rates were close to the applied rates, giving 
the tariff a high degree of predictability.  It had continued to review, revise or amend its trade and 
trade-related laws, including the Anti-Monopoly Law a nd the Patent Law.  China had also reformed 
its tax system to make it more neutral in relation to  investment decisions; this involved the unification 
of enterprise income tax rates for all companies, both domestic and foreign, and the transformation of 
VAT from a production-based tax to a consumption-based one. 
12. China had continued to intensify its enfo rcement of IPR protection. The authorities 
recognized that such protection facilitated domestic innovation, whose promotion was now an integral 
part of China's national development strategy. 
13. He noted that Members would be interested to  know more about China’s further liberalization 
plans.   WT/TPR/M/230 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHINA 
14. Let me report to you and other colleagues on our responses to other Members’ questions. 
Before this meeting, we have received 1,508 questions from 27 Members, and our preliminary 
answers are already on the table. I would like to ma ke a special note on questions posed in Spanish. 
Due to translations back and forth, responses to th ese questions in English only arrived this morning 
and so we will distribute them after today’s meeti ng. Regarding some of those questions that were 
sent after the two-week deadline, we will provide answers within one month after this meeting.  
15. Today I will focus briefly on three aspects of China’s development, namely, macroeconomic 
environment; trade development and economic polici es; and future economic prospects. Before I go 
into the details, I would like to state that wh ile facing enormous difficulties, China has acted 
responsibly. Over the period under review, China h as remained firm towards trade liberalization and 
continued to boost domestic demand. All these effo rts have contributed to the rebound of the world 
economy. 
China’s Macroeconomic Environment 
16. Under both domestic and external pressures in  the past two years, the Chinese economy has 
experienced the greatest difficulty since 2000.  
17. On the domestic front, natural disasters incl uding Wenchuan Earthquake  in 2008 and Yushu 
Earthquake this year dealt heavy blows to th e Chinese economy. The Wenchuan Earthquake alone 
claimed nearly 100,000 lives and caused econom ic losses of more than US$120 billion. 
18. On the international front, the most daunting pressure came from the global economic crisis. 
External demand shrank and many Chinese companies especially the SMEs suffered from difficulties 
in business operations. Since the beginning of 2009, so me 20 million migrant workers have left their 
jobs in cities and went back to the countryside . These unemployed people accounted for nearly 15.3% 
of the total migrant workforce in China. 
19. Facing the dual pressure on domestic and external  fronts, the Chinese Government resolutely 
adopted proactive fiscal policy and expansionary monetary policy. China launched a new investment 
plan that would add Y 4 trillion within two years. Meanwhile, China also launched projects such as 
providing financial support for Home Appliance fo r Farmers and Automobiles for Farmers to boost 
domestic demand and stimulate domestic consum ption. These measures have delivered tangible 
results. 
20. At present, domestic demand plays a much str onger role in driving China’s economic growth. 
Despite the 16% decline in its exports, China has mana ged to register a GDP growth of 8.7% in 2009. 
That is due to a 30% increase of fixed assets investment and a 17% rise in retail value of domestic 
consumer goods. 
21. We have made progress on energy conserva tion, emission reduction and environmental 
protection, and these progresses are very encouragin g. From 2006 to 2009, the energy consumption 
per unit of GDP fell by 14%. 
22. In addition, we improved the social security system. The Central Government allocated 
Y290.6 billion into social security fund in  2009, an increase of 17% year on year. WT/TPR/M/230 
Page 6  
 
  China’s Trade Policies and Latest Development 
23. China will stand firm for trade liberalizati on and has fully implemented its WTO accession 
commitments. 
24. Despite the huge impact of financial crisis on its economy, China managed to maintain its 
import growth, which has helped creating an enormous  market for China’s trading partners against a 
sluggish global demand. 
25. China is the only major economy that registered increase in import during the crisis. 
According to the WTO, at a time when world trad e declined by 12.9%, Ch ina maintained an import 
growth of 2.8%, and became the second largest importer in the wo rld with over US$1 trillion imports. 
Its share in global imports rose from 3.4% in 2000 to 8.1% in 2009. 
26. Nowadays, China has become a major export destination for many economies. While the 
world automobile market shrank sharply in 2009, China’s auto imports grew by 2.8%, making it the 
largest auto market in the world. 
27. Foreign trade of China is becoming more balanced . In the past 12 years, China’s import grew 
at an average annual rate of 14%, higher than that  of the exports. The balance was most visible in 
2009 when China’s trade surp lus decreased by some US$100 billion. In the first four months of 2010, 
China’s surplus further went down by 78.6%. In Ma rch 2010, China even recorded a trade deficit of 
US$7.2 billion.  
28. China has committed itself to transforming economic developm ent pattern and has never 
single-mindedly pursued trade surpluses. In order to achieve more balanced development, China 
needs a better external environment. Such envi ronment will become more favourable if trading 
partners remove their high-tech export restrictions  on China, lower investment threshold and remove 
numerous trade and investment barriers. 
29. Unfortunately, while China was combating the cr isis, it became the primary target of trade 
protectionism. In 2009, 22 WTO Members initiated 1 16 trade remedy investigations against Chinese 
products, accounting for 43% of the world total. Th e value involved hit a record high, representing a 
growth of 102% from the previous year. The ty re special safeguard case alone has cost China 
100,000 jobs. 
30. In order to promote foreign investment, China has been making great efforts to open up its 
market and improve investment environment. We listened carefully to comments and suggestions 
from foreign investors. On April 29 2010, Premier Wen Jiabao personally attended a meeting with 
foreign-invested enterprises to learn about their c oncerns in regard to China’s investment climate. 
31. Foreign investors speak positively about the overall investment environment in China. 
According to a 2009 report on business environment by the American Chamber of Commerce in China, 82% companies are very optimistic about their business outlook in China and 91% hold very 
optimistic view on the prospect of their business in  China in the coming five years. A report by 
UNCTAD also identified China as the most attractive host country for foreign investment in the 
world. Another report by the European Chamber of Commerce in China suggests that most EU 
companies remain confident about China’s market  in the future, and they are developing new 
investment strategies and expansion plans. 
32. While global FDI plunged by 38.7% in 2009, China only experienced a decline of 2.6%. 
Foreign capital actually employed by China last year  reached US$90 billion, ra ising its global ranking 
to the second place.   WT/TPR/M/230 
 Page 7 
 
 
  33. China has not only tried to attract foreign inv estment, but also strongly encouraged Chinese 
companies to accelerate their overseas investment. China’s outbound FDI in non-financial sectors grew by 64% to US$40.7 billion in  2008, and further grew by 6.5%  to US$43.3 billion in 2009 
despite the fall of the world FDI.  
34. On trade in services, although China’s services e xports decreased by 12% in 2009, its services 
imports achieved additional increase, making it the fourth largest services importer. Compared to the 
previous year, its services trade deficit increased by 1.6 times. China was the only one among the 
world top 10 services importers that did not witness a drop in 2009.  
35. On IPR protection, from 2006 to 2009, China issued for four consecutive years its Action 
Plans on IPR Protection, which contained 887 specific measures in 10 areas. In 2008, China formulated the Outline of the National Intellectua l Property Strategy, specifying the objectives, 
priorities and measures of its national IPR strategy . On administrative law enforcement, agencies 
jointly fight against piracy on line and investigated 558 cases. 
36. China firmly supports multilateralism and always  regards the multilateral trading system as 
the cornerstone of its trade policy. China belie ves that a successful Doha Round is of great 
significance to realize rebound of the global economy and resist trade protectionism. China advocates 
that as a viable strategy for Doha negotiations in  the final phase, Members should respect the Doha 
mandate and negotiate on the basis of the progress achi eved to date. China stands ready to make joint 
efforts with other Members to conclude the Roun d with an outcome that is comprehensive and 
balanced, delivering development mandate.  
37. While setting multilateralism as a priority, China believes that regional cooperation can play a 
complementary role in trade liberalization. Si nce 2002, China has signed eight FTAs and started 
negotiations on six other FTAs, altogeth er involving 31 countries and regions.  
38. As a developing country with a huge population,  China fully understands the importance of 
economic growth for other developing countries and always tries its best to assist them under the 
South-South cooperation framework. The duty-free treat ment that China accord s to LDCs has been 
playing an active role in building up their trad e capacity. From 2007 to 2009, China’s imports from 
LDCs went up from US$23.8 billion to US$27.4 billion with an annual growth  of 15.5%. Since 2008, 
China has become the No. 1 market for LDCs and in that year took up 23% of the total LDCs’ exports. In 2008, among the top 20 investment des tinations of Chinese companies, 12 are developing 
countries. China has also provided development assi stance to 120 countries, covering their priority 
areas such as agriculture, health, education, infrastructure and human resources training. Those 
projects have been warmly welcomed by host countries.  
Looking ahead 
39. On the domestic front, China still has 150 million people living in poverty. We have to create 
jobs not only for 30 million unemployed people regi stered in cities, but also over 20 million people 
newly added to the working population every year.  
40. On the international front, major economies are s till in slow recovery, and the international 
money and bond markets are haunted by potential cris is. All in all, many uncertainties still exist on 
global economy.  Nevertheless, China is ready to join hands with other c ountries to overcome the 
difficulties.  
41. China is still going through a period of rapid in dustrialization and urbanization. This process 
will unleash enormous demand for investment and cons umption. It is predicted that China’s total 
imports will exceed US$7 trillion in the next five years. We firmly believe that opening-up will 
generate unlimited vitality for trade as well as  dynamism for economic growth. Under no 
circumstances will China change its opening-up policy.  WT/TPR/M/230 
Page 8  
 
  III. STATEMENT BY THE DISCUSSANT (H.E. Mrs. Marie-Claire Swärd Capra 
(Sweden)) 
42. China’s impressive economic performance is becoming increasingly familiar. Few days go by 
without international media reporting on how and to what extent the Chinese economy impacts global 
affairs.  We have all heard the impressive statis tics. Since the beginning of its economic reform in 
1978, China’s economic growth has averaged almost  10% a year, and this has made it the fastest 
growing economy in the world. China has the sec ond largest economy in PPP terms today, as well as 
the world's second largest manufacturing sector.  China is gradually but surely emerging into a major global economic actor.  
43. In some aspects, China is still a country in deve lopment. But this does not change the fact that 
the sheer size of its economy makes China’s im portant share in shaping the global economy 
inevitable. This influence is nothing new, of c ourse, and for the last two Trade Policy Reviews the 
trend has been clear. The timing of today’s Revi ew is however particularly opportune for a 
multilateral dialogue, when the global economy is strivi ng to recover from one of its worst crises ever, 
adding new challenges to policy choices and decisions in all our countries. 
44. When approaching China’s role in the globa l economy, a choice of perspective should be 
made: that China’s economic development brings new opportunities for global growth. Its market 
constitutes a huge potential, both for China itself a nd for the world economy, be it through trade in 
goods and services, government procurement, or FD I. The development of a win-win dynamic is 
essential, and the multilateral trading system a key component. 
45. As other economies, China passed through a diffi cult year in 2009. The drop in external 
demand caused a sharp decline in exports in the early pa rt of last year. On the whole, nevertheless, it 
appears that China weathered the global economic cris is remarkably well and is now at the forefront 
of recovery. Through the Government’s massive pub lic investment led stimulus measures, household 
consumption holding up well, China distinguished it self in achieving a robust growth of 8.7% in 
2009. Exports had picked up again by mid-year, a nd China ended up by gaining global market share 
and becoming the world’s largest exporter of goods . One should not overlook China’s performance as 
an importer either, the world’s second largest behind the U.S. In fact, during the global slowdown, imports held up better than exports . In March 2010, China even had a trade deficit of US$7.5 billion, 
the first time in six years that its imports overt ook its exports. The domestic growth momentum has 
continued in the first months of 2010, and the World Bank projects 9.5% GDP growth for this year. 
46. This economic outcome clearly shows that China has benefitted from its integration into the 
global economy.  With WTO accession, Beijin g effectively locked in many of China’s trade 
liberalisation commitments. And WTO membership has given added impetus to the reform process. 
The last years’ outstanding trade performance indeed points to how the Chinese economy relies 
heavily on a well-functioning multilateral trading syst em for its continued prosperity. WTO is central 
to Chinese growth. And just as it has contributed to th e global recovery in taking rapid crisis measures 
to boost growth, while at the same time avoiding protectionist solutions,  China has a central, leading 
role to play in the WTO.  
47. In view of its rapid growth and economic impact, it is essential that China picks up the 
systemic challenge to strengthen the multilateral trading system it so much needs for its own 
economic development. China remains a strong supporter of the system, and there is a continuing political commitment of fulfilling the obligatio ns of WTO membership. Beijing stresses its 
commitment to the DDA negotiations. Nevertheless, contributions from China to help resolve global 
imbalances, boost global recovery and growth, an d of course conclude the DDA, are very much 
needed.   WT/TPR/M/230 
 Page 9 
 
 
  48. Turning to some trade policy issu es, during the review period, Beijing has maintained its long 
term strategy of gradually openi ng up the economy to international trade and FDI. But there are a 
number of challenges, as well as areas for further reform. Let me point just a few, and propose some questions on my part to the Chinese delegation. 
49. As noted by the Secretariat, its performan ce notwithstanding, the Chinese economy suffers 
from structural vulnerabilities. Some of these needs to be addressed without delay, and, the gradual 
approach to reform may have to be complemented by a more comprehensive one to ensure sustained 
growth. A number of important shifts to the ec onomy may rapidly be needed. Competition, openness, 
transparency, predictability, are elements that should underpin this development. 
50. Among the most prominent and urgent challenges is encouraging growth in China’s domestic 
markets. This is an essential part of re-balan cing the Chinese economy and ensuring continued stable 
growth. Liberalisation of trade a nd FDI have stimulated competition. According to the Government, 
out of the 8.7% of GDP in 2009, domestic dema nd contributed 12.6 percentage points. But it is 
necessary to increase domestic demand for the econom y’s transition into a new long term growth 
model. In this transformation, competition would be  of key importance. However, even if there has 
been a relative increase of the private sector in  the economy, China’s State owned enterprises still 
restrict market entry in a number of important sectors. They also appear to have benefitted disproportionately from the crisis stimulus package.  
51. So far, manufactured exports have been one of the main engines for growth for China, and it 
is clear that the Chinese manufacturing sector is highl y integrated into world markets. But this heavy 
dependence on manufactured exports constitutes a vul nerability, which was highlighted during the 
crisis. A balanced development of imports and exports must be achie ved. The problem is exacerbated 
by obvious over-capacities in some  sectors. China needs to become less dependent on manufactured 
exports, and also come to terms with policies that lead to problems with over-investment. 
52. In this context, services trade remains a con cern for the future, and its development would 
help boost domestic demand. China is placing increasing emphasis on services in the economy, and 
measures have been adopted to further liberalise fi nancial services, telecommunications and tourism. 
Regulatory reforms in telecoms have encouraged competition. But important areas for liberalising 
services trade remain. What are the outstanding obst acles in liberalising China’s services sectors, and 
how does the Government intend to tackle them? 
53. The relaxing of existing restrictions on forei gn investment could have  important additional 
beneficial effects to trade liberalisation in sever al areas, not least services. According to UNCTAD 
figures, China was the third largest recipient of FDI overall in the world, after the U.S. and France in 
2008. And China has increasingly opened up to forei gn investments, notably in telecommunications 
and tourism.  But most FDI relate d regulations have remained largely unchanged since the last TPR. 
There would seem to be huge potential gains here, both for China and the global economy - and in 
promoting a new pattern of econom ic development. What other measures are envisaged by the 
Government to further relax FDI restrictions?  
54. Undeniably, new potential market opportunities in China would have a hugely beneficial 
effect on the world economy. One particularly importa nt area for growth is government procurement. 
China applied for accession to the GPA in December 2007, and is currently an observer to the 
Agreement. Consultations on accession with the par ties are expected to continue in 2010. GPA 
accession would give assured access by China to the procurement markets of other GPA parties, as 
well as the possibility of enhanced compe tition and improved governance in China’s own 
procurement markets. China’s acceding to the GPA w ould constitute an important step indeed in its 
integration into the international trading system. Consequently, this would enhance the importance of 
the Agreement as an instrument of international ec onomic policy in addition to providing new market WT/TPR/M/230 
Page 10  
 
  access opportunities for both the existing GPA parties a nd China itself. Is the Government considering 
making any substantial changes to China’s current Government Procurement Law in the near future? 
55. Last but not least, the energy sector is of interest . Despite low tariffs, trade restrictions remain 
on energy imports. Artificially low energy prices also lead to energy waste, to the detriment of the 
environment. The Government apparently is co nsidering levying an environmental tax on the 
extraction and processing of natural resources during th e next Five Year Plan period (2011-15). Could 
the Government provide some  details of this tax? 
56. Let me end with some brief remarks regarding China’s trade regime.  Tariffs on manufactured 
goods are fairly low, with little water and a high degr ee of predictability. However, the tariff structure 
tends to be very complex, and work in simplifying the tariff structure could be accomplished. 
Furthermore, China continues to use import and export licensing as instruments of its trade and 
industrial policies. Does the Government plan  to reduce its use of non tariff border measures?  Export 
restrictions are especially worrisome, since they reduce export volumes and divert supplies to the domestic market, thereby implicitly assisting domestic downstream processing of the products 
concerned. Trade remedy activity also plays an impo rtant role, and it is clear that China is not only a 
target but also a user, in particular of anti-dumping. Finally, the issue of standards should be 
mentioned. Standards not only solve problems, but opens up new possibilities. And they form a stable 
and credible platform for international compe tition. Around 15% of China’s national standards are 
mandatory. The rest are voluntary. However, th eir implementation can be complex, creating 
uncertainties for business. Does the Government have  any plan to further align China’s national 
standards with international ones?  
57. To conclude, by the time of this third Review , China is not only integrated in the global 
economic system, but has become one of the l eading economies in the world. The Chinese economy 
has stood the test of the crisis, and managed to come out of the last two years intact, if not even ahead 
and better equipped for sustainable structural change . China needs to keep its reform momentum for 
long term stable growth. Its economy relies heavily on a well-functioning multilateral trading system, 
and China has a leading role to play in the WTO. The growth in China’s markets translates into 
opportunities for other countries. Balanced trade w ith China can bring win-win relationships. Much 
will be the result of what measures the Chinese Gove rnment takes. But it is clear that the economic 
relations with China depend not only on how China acts, but also on China’s trade partners. There is a 
need for an open dialogue with China, to genuinely  clarifying issues where Members have different 
perspectives. WTO and the multilateral trading sy stem have proved itself a reliable channel. 
58. Let me close with a quote by Prime Minister Wen Jiabao that expresses some core values of 
my own country in international relations: “It’s alwa ys better to have a dialogue than a confrontation, 
co-operation than containment, a nd a partnership than rivalry.”  WT/TPR/M/230 
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  IV. STATEMENTS BY MEMBERS 
BRAZIL 
 
59. Brazil once again congratulates China for its impr essive performance in recent years.  As 
mentioned in the Secretariat Report, despite the global economic recession, which reduced the 
expansion of GDP to 6.2% in the first quarter of 2009, China achieved real GDP growth of 8.7% in 
2009 overall, one of the most difficult years for the international economy. 
60. China deserves praise for its c ontinued success as a competitor in global markets, which has 
been accompanied by the gradual liberalization of its  own international trade and investment regime.  
We are also pleased to note the continuation of effort s to increase the support to rural areas;  diversify 
the economy;  reform the administrative, taxation and social security systems;  and encourage energy 
conservation and pollution reduction.  Brazil is confident that such efforts will greatly contribute to 
the consolidation of a prosperous  and harmonious Chinese society. 
61. Commercial relations between Brazil and China ha ve intensified considerably throughout the 
years.  In 2009, China became our first trading part ner, the main destination of our exports and our 
second supplier.  Bilateral trade flows increas ed 780.5% between 2002-2009 reaching almost US$40 
billion in 2009.  In the first two months of 2010, trade has again increased by 36% compared to the 
same period in 2009.  Even during the worse ph ase of the global economic crisis, commerce between 
China and Brazil fell by much less than Braz il’s trade with the rest of the world. 
62. President Hu Jintao’s recent visit to Brazil signalled another important step towards 
strengthened cooperation in the most relevant areas, resulting in the signature of several agreements, 
such as the Joint Plan between the two Governme nts for the years 2010-2014.  In this framework, 
Brazil and China will continue to stimulate bilate ral trade and investment and adopt measures aimed 
at its diversification. 
63. Strengthened cooperation in areas such as in frastructure, aeronautical industry, mining, 
energy, transport, science and technology, among others  will pave the way to an even greater volume 
of bilateral trade and investment. 
64. Brail feels encouraged by the Chinese commitm ent to a rules-based multilateral trading 
system and its opposition to protectionism, which is  of paramount importance given the level of 
participation of China in world trade.   
65. Brazil notes with satisfaction that China a ttaches great importance to the Doha Round and 
have been making wholehearted efforts to its early conclusion with development oriented results and 
preserving the achieved outcomes.  Brazil fully shar es this objective and has worked with China to 
make it possible bilaterally, in the WTO and in other fora such as the G20.  It is of course essential 
that those who shape the multilateral trading system are also prepared to do what is necessary to 
achieve this goal. 
66. We are glad that China has continued to a dopt measures to improve transparency but we 
regret that certain aspects of its trade policy regi me remain complex and opaque, as highlighted in the 
Secretariat Report.  Greater transparency would c onsiderably benefit Chinese trade relations with the 
rest of the world.  Brazil also regrets the insuffi cient improvement in China’ s import licensing regime, 
which negatively impact our bilateral trade.  We be lieve there is room for further refinement of both 
transparency and the criteria for issuing import licen ses with a view to meeting demand.  We remain 
committed to deepening the dialogue on these issues, building upon the strategi c partnership between 
China and Brazil in order to find a satisfactory solution. WT/TPR/M/230 
Page 12  
 
  67. We had, in the past, expressed our concern a bout the complexity of China’s SPS regime and 
the inspection procedures, which had been preventing further expansion of our exports into China, in 
particular in sectors such as beef and poultry.  Fo rtunately progress has been made in this area and 
some of the instruments concluded recently aim to address these issues, and th ey should allow for an 
expansion of bilateral trade in the agricultural and food sectors. 
KOREA, REPUBLIC OF Remarks on bilateral relations 
68. Indeed, Korea and China are currently in the mi dst of one of the most prosperous times in 
their rich bilateral history. 
69. Bilateral trade:  Both countries are on track to surpass US$170 billion of bilateral trade this 
year.  China is currently Korea’s largest trading pa rtner, and Korea is China’s fourth largest trading 
partner.  At the current pace, bilateral trade figures are expected to surpass the US$200 billion per 
year mark in the next two years, and furthermore attain the US$300 billion per year goal by 2015 as agreed by our two Governments. 
70. Bilateral investment:  Chinese investment in Korea surpassed 6,000 individual cases with a 
cumulative investment of US$2.7 billion.  In return, Korean investors have thus  far invested in excess 
US$40.8 billion in some 40,000 cases, making China the top destination for Korean investment 
abroad. 
71. Bilateral exchanges:  Business and tourist vis its of Koreans to China and Chinese to Korea 
have surpassed 5 million per year in 2007.  Currently  there are over 60,000 Korean students registered 
in various educational institutions in China, while a similar number of Chinese students are in Korea.  
In total, roughly 660,000 Koreans are presently residing in China, while over 560,000 Chinese 
nationals are in Korea to either work or study, or to do both. 
72. Just over the week end, Korea had the pleasure of welcoming H.E. Premier WEN Jia-bao to 
Korea.  During his visits, President Lee and Pr emier WEN agreed to further promote bilateral 
relations.  In this context, the two leaders re-a ffirmed the goals of the “Korea-China Economy and 
Trade Cooperation Vision Report” signed by our two Governments in October 2009. 
Remarks on China’s economic performance 
73. In view of the close ties between the two countri es, it is only natural for Korea to be greatly 
interested in China’s economic pe rformance.  In this context, Korea applauds China’s economic 
achievement over the past two years. 
74. Korea notes that despite the sev ere difficulties caused by the global financial and economic 
crisis, China has successfully overcome the situati on by offsetting the sharp decline in external 
demand by implementing an aggressive economic stim ulus package in the neighbourhood of 13% of 
its GDP.  Korea, in particular would like to note that through such pro-active fiscal measure, coupled 
with the easing of its monetary policy, China achieve d real GDP growth of 8. 7% in 2009, while many 
Members registered negative growth for the year.  In light of China’s place in the global economy, i.e. 
its size and the depth of its integration into the global economy, Korea would see this as a welcoming 
development. 
75. At the same time, however, Korea notes that th ere are several fundamental structural issues 
that the Chinese economy would need to address as  it continues to develop its economy.  In the 
Secretariat Report, three of them are identified as fo llows:  1) China’s large and persistent surplus of  WT/TPR/M/230 
 Page 13 
 
 
  domestic savings over investment;  2) China’s dependence on overseas demand for its manufactured 
exports;  and 3) Overcapacity in several core i ndustries.  For each of these issues, the Secretariat 
details its analysis on the underlying reason, a nd offers possible policy guidance to address these 
issues.  At this stage, we wonder if China concur s with the assessments of the Secretariat, and what 
remedial measures are being considered and/or implemented by the Chinese Government. 
Remarks on China’s trade policy 
76. In regards to China’s trade policy, we do appr eciate China’s continued efforts to enhance the 
transparency of its trade and trade-related polici es, practices, and measures.  In particular, Korea 
applauds China’s efforts to adopt and revise trad e-related laws such as the Anti-Monopoly Law, the 
Enterprise Income Tax Law, the Patent Law, and the Provisions on Disclosure of Government 
Information.  However, as the Secretariat Report points out in several instances, it appears that there is 
room for further improvement.  In this context,  Korea would like to encourage China to undertake 
further work in this area. 
77. With regards to IPR, Korea welcomes China’ s increasing awareness of the importance of this 
issue, and the strengthening of administration in a ll categories of IPR.  Actually, according to WIPO’s 
latest report, China is among the top five sources of  international patent a pplications.  Partially 
reflecting this new-found stature of China in this area, we sense a greater commitment within China 
for the enforcement of IPR protection.  We are encour aged by this trend, and hope it will continue in 
the coming years. 
78. With regard to the services sector as a w hole, Korea appreciates China’s continued 
commitment to develop its services industry by way of  further liberalization and market opening.  At 
the same time, however, we also note that further work lies ahead. 
Concluding Remarks 
79. This year marks the 32nd year since China first embarked on a course of gradual transition 
from a centrally planned economy to a market-based economy together with a policy of opening up to 
the world.  Comparing China’s reform process with the life trajectory of Confucius, China has set its 
goal, and after much effort has recently passed th e age of being “self reliant”.  The coming years up 
until the year when China celebrates 40 years of refo rm, will be critical as China might be swayed by 
“temptations” along the way.  However, judging by  the closing comments in the Chinese Government 
Report, it is clear that nothing will de-rail China fro m its current course, as China declares that “only 
by adhering to reform and opening up can China continue to survive and thrive”. 
80. Korea together with other WTO Members welcom es this policy direction, and hopes to work 
together with China throughout the way, up until Ch ina reaches the age of 50, 60, 70 years of reform 
and beyond. 
81. My remarks would not be complete if I did not include my delegation’s appreciations to 
China for their contribution and their commitment to the advancement of the DDA negotiations.  
Korea, as the Chair of the G-20 Summit to be held in Seoul in November 2010, looks forward to 
working closely with China and other WTO Members to ensure that the G-20 Summit in Seoul will 
make positive contributions to the timely a nd successful conclusion of the DDA negotiations. 
PAKISTAN 
82. The turn of this century witnessed two importa nt developments in the multilateral trading 
system;  launching of a development round in Doha and accession of China to the WTO.  One is ever 
continuing and the other is  ever growing.  The Chinese entry has paid dividends to China as well as to WT/TPR/M/230 
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  the multilateral trading system.  China today is the world’s second largest economy, major recipient of 
foreign direct investment, the world’s fastest gr owing consumer market, and the world’s leading 
provider of manufactured goods.  China’s regulatory and trade practices can move global markets.  Simultaneously, there is no doubt that China’s economic growth has led to the global economic 
growth.  Chinese demand for intermediary goods a nd raw materials has created jobs.  The World 
Bank notes that the efficiency and scale of China’s manufacturing has pushed down the price of many 
manufactured products relative to other goods and se rvices.  Investors, consumers, and taxpayers all 
over the globe have benefited from these developmen ts.  In my view, China’s growth bears the 
testimony of the success of rule based multilateral tr ading system.  China’s example is WTO’s best 
advertisement. 
83. The global financial crisis put the policies of all WTO Members to test.  Here again the 
Chinese system shoed its resilience.  The Chin ese Government relied mainly on expansion of 
domestic demand to stabilize its economy.  Of the 8.7% increase of China’s GDP in 2009, domestic 
demand contributed 12.6 percentage points, which off set the 3.9 percentage points shortfall due to the 
contraction of the external demand.  Domestic demand plays a significant role in fuelling China’s 
economic growth.  Although severely affected by th e global financial crisis, the Chinese Government 
has steadfastly pushed ahead reforms and opening  up.  China has implemented all its accession 
commitments in time and in letter and spirit.  In  fact, the Chinese words “R eform is China’s basic 
state policy”. 
84. In spite of impressive achievements over the p ast decades, China is still a developing country 
with a population of 1.3 billion.  China’s per capita  GDP still ranks behind more than 100 countries.  
Calculated by the World Bank’s poverty standard s of US$1.25 per person per day, China still has 
some 150 million people living in poverty.  However,  it is heartening to note that China accords 
priority to its social sector.  During 2008 an in crease of 48% and 28% respectively in health and 
education sectors holds bright prospects for a ba lanced socioeconomic development.  There are 
challenges ahead, including disparity in developm ent between urban and rural areas and between 
different regions.  We are confident that Chinese pe ople have the vision and determination to ensure 
that the benefits of its policies reach to the last ma n sitting in the remotest corner of China.  Pakistan 
fully endorses China’s philosophy that trade is the best tool to bring welfare and benefits to both the 
Chinese people and the people of other countries and regions in the world. 
85. The Report including the press reports also indicate that China is fully geared to join GPA.  
Considering the significant role played by the public sector in Chinese economy this is a welcome 
step.  It bears testimony to the commitment of Chin ese people in the international trade and rule based 
trading system. 
86. Pakistan has always enjoyed the confidence of  a trusted and all w eather friendship with 
China.  Bilateral deep political relations began to  translate into the exemplary economic and trade 
relations which date back to the first bilateral l ong term trade agreement signed in January 1963.  The 
two sides also signed an Agreement on Economic and Technology Cooperation in 1965.  Trade 
relations between the two countries were further deepened in 2006 with the signing of an FTA, as a 
result of which, total trade between the tw o countries increased from US$3,170 in 2005-06 to 
US$5,380 million in 2007-08.  The services part of  the Agreement was signed on 21 February 2009 
recently notified to the WTO.  Ou tside the trade regime, the Silk Route, or the Karakorum highway, 
and several other projects signify the depth of our friendly relations. 
87. Before concluding I would also like to appr eciate role of China in the ongoing Doha 
negotiations.  While China has considerably libera lized its trading regime, unilaterally and through 
RTAs, it is fully committed to the successful and equitable conclusion of the Doha Round.  China 
now represents the changing economic reality in the world, and has to play the role of a “leader” 
representing simultaneously the developing world and one of the world’s largest economy.  WT/TPR/M/230 
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  NORWAY 
88. China is Norway’s fifth largest trading partner and we have been pleased to observe that our 
trade in goods increased by 13% in 2009.  We have also observed that  Norwegian businesses 
operating in China, concentrated mainly within th e maritime sector, have done very well even during 
the financial crisis. 
89. 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.  We are, in particular, pleased to 
note that China has generally resisted a protectioni st response to the effects of the global economic 
crisis.  An old Chinese prober says “When the wind rises, some people build walls.  Others build 
windmills”.  In the midst of the financial and econom ic storm, China has, literally, continued to build 
windmills – rather than trade barriers – and is now  one of the three largest wind energy providers 
worldwide.  Norway appreciates the measures taken by China since its last Trade Policy Review in 
2008 that have helped support the global trading sy stem.  We urge China to continue on this path. 
90. Of more specific comments to the reports, we would like to highlight the following:  Norway 
hopes to see China joining the WTO Government Proc urement Agreement in the not too far future.  
Norway shares concerns over the “National Indige nous Innovation Policy (NIIP)”, which represents a 
hindrance with regard to foreign companies’ engageme nt in the public procurement market in China.  
China’s accession to the GPA should, as the Secretariat Report points out, bring fundamental changes to China’s government procurement framework. 
91. Standard setting policies are crucial to secure  smooth transition of goods and services.  While 
there has been progress on adopting international standards, Chinese authorities should ensure that 
rules and practices issued by the Standards Admini stration of China and the China National Institute 
of Standardization reflect international norms in st andardization.  Country- only standards and related 
mandatory certification schemes seriously hamper  business development for trading partners, and 
underline the importance of internationall y applicable common standards and norms. 
92. Referring to partial VAT rebates on exports, this  system lacks transparency and may entail 
uncertainty and unpredictability for businesses expor ting from China.  Norway encourages China to 
address the need for carrying out industrial policy th rough more predictable and transparent measures. 
93. Norway welcomes China’s efforts to implem ent the WTO/TRIPS rules, as well as China’s 
continued improvements of its legislative frame work and the intensified enforcement of IPR 
protection.  Norway especially welcomes China’ s decision to revise its Copyright Law based on 
recommendations and rulings of the DSB.  We ar e, however, still concerned about the lack of 
effective enforcement of intellectual property rights, particularly at regional a nd local levels.  Several 
Norwegian companies, including some in the furnitur e industry, have reported concerns of lack of 
adequate protection in the Chinese market.  The existence and effective enforcement of IPR are 
imperative to the functioning of modern trade.  China still has potential for improvement in its 
enforcement of IPRs. 
94. China is a key player in the Doha Developmen t Round.  Both China and Norway attach great 
importance to the conclusion of the Doha Round.  A successful conclusion of the Round will trigger 
economic growth and have impor tant development effects. 
95. Norway and China are currently undertaking bilateral FTA negotiations.  The WTO 
agreements remain, however, the main framework for trade between our two countries, and an FTA 
only builds on and supplements these.  We theref ore place great importance on China’s further efforts 
to liberalize its trade and investment regime  on an MFN basis in the multilateral setting. WT/TPR/M/230 
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  AUSTRALIA 
96. Australia and China enjoy a strong and mutually beneficial trading relationship.  China is 
Australia’s largest trading partner, and in 2009  for the first time beca me Australia’s largest 
merchandise export market.  China is also Australia’s largest source of imports. 
97. China like Australia has benefitted remarkably fro m economic reform and trade liberalisation.  
China has become the second largest  economy in the world and in January became the world’s largest 
exporter. 
98. This year, in the aftermath of the wors t global economic downturn since the Great 
Depression, China’s economic strength has contri buted greatly to global economic recovery.  
Australia welcomes China’s rising economy and en courages China’s continuing contribution to the 
multilateral trading system.  In particular, we encour age China to play an active and constructive role 
in bringing the Doha Round to conclusion. 
99. All of the evidence points to the significance of  trade, and the liberalisation agenda that 
facilitates trade, as an important and sustainabl e economic stimulus.  A successful outcome to the 
Doha Round would provide a major boost for gl obal economic recovery and strengthen the 
multilateral trading system upon which we all rely.  We  will continue to work closely with China and 
all WTO Members to bring the Round to a successful conclusion. 
100. Australia and China are engaged in negotiations to conclude a bilateral free trade agreement – 
a single undertaking covering goods, agriculture, ser vices and investment, and containing provisions 
we intend to be comprehensive, ambitious, libera lising and in compliance with WTO disciplines.  
Australia remains committed to negotiating a high qu ality FTA with China, which would significantly 
enhance and deepen our trad e and economic relationship. 
101. While China’s economic reform efforts have f acilitated access to China’ s markets, significant 
regulatory and other barriers remain which con tinue to hinder foreign goods exporters, service 
suppliers and investors alike. 
102. Australia’s written questions to China for th is Review reflect our ongoing concerns about 
formal and informal barriers to trade and foreign inv estment.  We urge China to take further steps to 
achieve open, transparent, predictable and effici ent rules for foreign companies doing business with 
China. 
103. We remain concerned that certain aspects of China’s Government Procurement Law and its 
various subsidiary guidelines con tinue to favour Chinese-made products and intellectual property.  
We would welcome China’s efforts to ensure that  regulations and guidelines are not more trade 
restrictive than necessary to achieve their underlying objectives. 
104. We would like to express our appreciation for China’s efforts to implement its accession 
commitments and progress China has made in trade a nd investment liberalisation since the last review 
in 2008.  In particular, we welcome the recent lifting of the screening threshold for foreign direct investment and the relaxation of FDI restricti ons in some sectors such as telecommunications. 
105. At the same time, significant restrictions on foreign investment and private sector activities 
remain, including in services sectors of interest to  Australia including financ ial legal, accounting and 
mining services.  Australia urges China to continue  its important reforms and further liberalise its 
trade and investment policies.  WT/TPR/M/230 
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  106. We have raised a number of concerns in rela tion to China’s policy instruments in supporting 
the agricultural sector.  We continue to be con cerned by tariff and non-tariff barriers that China 
imposes on a range of agricultural products.  Such measures distort trade and impose significant costs 
on Chinese consumers. 
107. Another important issue for Australia in this Review is China’s imposition of export duties on 
additional tariff lines.  We look forward to looking at  the responses that China has given on this and/  
on another issues. 
SWITZERLAND 
108. Allow me to highlight the fact that Swit zerland and China are celebrating 60 years of 
diplomatic relations this year. Switzerland was one  of the first Western countries to officially 
recognize the People’s Republic of China, on January  17, 1950. This early recognition was truly an 
act of respect and trust that laid a sound basis fo r the friendly relationship we share nowadays. In 
order to give further impetus to our bilateral re lations, China and Switzerland are in the midst of 
conducting a Joint Feasibility Study regarding a bila teral free trade agreement. Apart from that, a 
range of important high-level visits undoubtedly strengthened our bond of friendship and contributed 
to the advancing of a number of essential issues, i.e. in the field of environmental cooperation, 
investment and intellectual property rights. 
109. As a result, even in economically challenging times, bilateral trade between Switzerland and 
China remained at a high level. According to Sw iss customs data our bilateral trade volume in 2009 
amounted to CHF 10.6 billion which is about US$10 billion and was not much affected by the 
financial crisis and the economic downturn. 
110. It is remarkable how China secured its place among the key players of global economy by the 
means of consequent implementation of the “open- door policy” throughout the last three decades. 
China’s accession to the WTO in 2001 was the last corner-stone in the direction of liberalizing its 
economic and trade policy and key to  the continued high economic growth rates of the last decade. 
111. The documents distributed provide an extensiv e overview of the measures taken by China to 
fulfill its obligations under the WTO agreements. I would like to underline some elements of 
particular interest to Switzerland and raise so me issues on which we would appreciate further 
clarification from the Chinese delegation. 
112. One very important area of cooperation regards Foreign Direct Investme nt (FDI). Switzerland 
and China signed a new bilateral agreement on the pr omotion and reciprocal protection of investment 
that was enacted in April 2010. At the same time, a very large portion of China’s outward FDI leaves 
via the Special Administrative Region (SAR) of Ho ng Kong, while there is no bilateral investment 
protection treaty in place between the SAR Hong K ong and China. We would be grateful if the 
Chinese delegation could inform us on how the co mpetences between the Chinese and the SAR of 
Hong Kong authorities are divided regarding this matter. 
113. A second issue my delegation would like to rai se concerns the definition of the concept of 
“abuse of intellectual property rights” used in the An ti-Monopoly Law. The Secretariat mentions in its 
report that China has been making significant e fforts to achieve a balance between protecting 
intellectual property rights and encouraging compet ition. This was reflected in the Anti-Monopoly 
Law, which refers to the “abuse of intellectua l property rights”. We congratulate the Chinese 
authorities on their efforts. At the same time, we would appreciate if China would indicate where and 
how this concept of “abuse of intellectual property rights” is clarified and defined. WT/TPR/M/230 
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  114. China also made great efforts in prepari ng its future accession to the WTO Government 
Procurement Agreement (GPA). Switzerland very much  appreciates these efforts, and we are prepared 
to continue providing support to China with regard its adaptation to  the requirements of the GPA. 
While the GPA is operating on the ground of basi c principles of non discrimination and national 
treatment, the procurement law obliges the Chinese government to procure domestic goods, projects, 
and services. In this context, Switzerland is preoccupi ed by the implications of the application of the 
National Indigenous Innova tion Product Accreditation Work in terms of market access and protection 
of sensitive information in the tendering procedure.  
115. Even if the requirements have been eased lately by the Chinese authorities, China's 
indigenous innovation product accred itation system and the related procurement preferences based on 
domestic content are in Switzerland’s view undermin ing the standards of the GPA and especially its 
objectives which aim at creating a fair, open and effective competition worldwide. We would be 
grateful to learn more about the measures that the Chinese authorities are planning to take in order to bring the internal legislations in line with the provisions of the GPA. 
116. Another field of interest to us concerns the remarks made in the Secretariat’s Report that VAT 
may be rebated on exports, although the rebate rates are lower than the VAT rates actually paid. The 
Secretariat’s Report concludes that the difference be tween the two rates constitutes a levy on exports 
which in turn constitutes an assistance to downstream  domestic producers of the products affected. 
Even though rebate rates were in creased several times,  last in June 2009, we would like to know 
whether the Chinese authorities intend to eliminate the difference between the two rates. This is a 
point of concern to us, since we are of the opinion  that such measures represent an unfair competitive 
advantage for domestic producers. 
117. To conclude, let me state that although the existing WTO framework significantly facilitates 
trade with China in many different areas, I believe  that there is still vast potential for further 
enhancement and e xpansion of the economic cooperation. Hence, we look forward to further 
deepening our fruitful cooperation with China, b ilaterally as well as within the framework of the 
WTO. 
EUROPEAN UNION 
118. Over the last years we have observed Ch ina’s impressive economic development and 
transformation, propelled by two-digit economic growth  rates, using a model of export-led growth in 
an increasingly diversified range of sectors. China' s integration into the global economy, anchored in 
its WTO membership, has driven this economic tr ansformation and its rapidly growing role in 
international trade. Today, as the world’s largest exporter, second largest importer, and a rising actor 
in foreign direct investment, China has moved fro m being an emerging economy to a global economic 
power, one with unquestionable ec onomic and commercial clout in today’s global environment. The 
corollary of this power is that China’s domestic  policies and measures increasingly affect economic 
and trading trends globally. Those policies therefore ha ve to be the right ones, and they merit scrutiny. 
And that is why this week's Review is so significant.   
119. China's economic development is of course reflect ed in EU-China bilateral relations. In 2009, 
bilateral goods trade was €296 billi on, and trade in services over €30 billion. China is the EU's 
number one importer and the third largest export destin ation for EU exporters. Ho wever the EU is still 
exporting more to Switzerland than to China – while only about 3% of the EU's outward FDI goes to China. That suggests clearly untapped potentia l to deepen our bilateral economic ties.  
120. This is a key issue for our exporters as Ch ina has been the first major economy to rebound 
effectively from the crisis, and is set to overtak e Japan as the world’s second largest national economy 
in 2010. The substantial economic stimulus pack age - representing 13% of China’s GDP in 2008 - has  WT/TPR/M/230 
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  no doubt played a role in bringing the economy back  on track. However, at the same time the crisis 
has showed China's structural w eaknesses in terms of internal demand deficit, an underdeveloped 
capital market, and as we all well know, an excess dependence on export-led growth – inter alia , 
boosted by a low value of its currency, various form s of state intervention, and focussing investment 
in export-oriented industries. To arrive at a more sustainable growth model, China needs to rebalance 
its external and internal demand, and encourage a capital market responsive to market signals - one 
which favours profitable domestic investment flow s, at both household and corporate level.   
121. As China indicates in its government report, and has reiterated today, it currently faces other 
important challenges, such as the slow development of the services sector, high consumption of resources and energy, serious environmental polluti on, and wide disparity in development between 
urban and rural areas, and between regions. We r ecognise that these challenges are daunting, and we 
can but encourage China to undertak e all necessary structural reforms to mitigate them. In particular, 
we would like to put particular emphasis on the ne ed for continued reform, as we have seen some 
worrying signals of stagnation in this process. Even  though China reiterates its firm commitment to 
continued opening-up and reform – we find the word reform almost about 30 times in China’s 
government report - we believe this does not duly char acterize the current situation in China. In fact 
our companies have reported a worsening of the business climate. Continued reform is vital for 
instance in the services sector – reforms for exampl e in financial services, insurance, or telecoms 
could certainly contribute to the recognized need  for faster development of the services sector. 
Overall, we encourage China make further progress in its reform process. 
122. This reform process also needs to continue addressing social disparities in the Chinese 
economy. In this respect, China has a commendable tr ack record in developing strategies to fight 
poverty and inequality: over the past five years Ch ina has managed to increase its GDP per capita by 
almost 50% and lifted millions of people out of pove rty; this is a phenomenal achievement. However, 
it is still unclear how China uses its trade policy to this endeavour. Is China' s trade policy contributing 
to more sustainable production patterns or does it  lower standards? We need to know more from 
China as regards the steps it is taking to put trad e at the service of development in a sustainable 
fashion while integrating social and labour aspects.  
123. I would like now to move to some specific tr ade concerns we have with China, concerns 
which at the same time highlight the n eed for trade reforms more generally.  
124. Transparency first of all, which like charity be gins at home. As already reported during last 
TPR, there remain important transparency deficien cies in China's trade regime. The Secretariat’s 
Report stresses that “some aspects of China’s tr ade policy regime remain complex and opaque”. 
While we acknowledge China’s efforts to improve tr ansparency and predictability of its regulatory 
environment, including its increased use of public  consultations on some proposed legislative 
measures, more needs to be done. Public consulta tions should be systematically held for all new 
measures with an effect on trade. And these c onsultations should provide a reasonable period for 
comments by both foreign and domestic stakeholders , which does not always happen. An illustrative 
example was the draft notice on the Indigenous inno vation scheme which was initially about to enter 
into force on 10 May, the same date as the dead line for comments. This is neither good regulatory 
practice nor in line with the pro-transparency stat ement that the Chinese delegation has made today.  
125. Similarly, in advance of today's meeting the EU has presented a long compilation of written 
questions reflecting concerns and in formation deficits in several are as of China’s trade policy. China’s 
disregard to some of our questions during the last TPR in 2008, and the submission of the related 
replies two years later – this is only two months a go - is certainly regrettable. This is a serious 
systemic concern. So we would like to urge Chin a to fully respect and abide by the transparency 
requirements and disciplines set out by the TPRM, as any other WTO Member. China has openly argued on many occasions that it favours greater transparency in the WTO, and rightly demanded to WT/TPR/M/230 
Page 20  
 
  be treated equally as every other Member. So we hope that, starting from today, China will showcase 
this commitment for transparency in this  and every future Trade Policy Review. 
126. We still see this lack of transparency in Ch ina's regulatory processes. China’s Compulsory 
Certification Scheme (CCC) continues to be a major obstacle for foreign exporters due to the 
complexity, costs and length of the procedure. Inst ead of trying to reduce the administrative burdens 
and trade disruptions reported by many Members in  the TBT Committee, China seems determined to 
expand the scope of the CCC to new items such as ICT products.  The EU therefore urges China to 
review comprehensively its CCC scheme, and move from the current “one-size-fits-all” principle 
enshrined in the CCC towards a mo re risk-based approach to conf ormity assessment. The EU also 
urges China to do more to align Chinese standards to  international standards, and to avoid putting in 
place diverging Chinese-specific national standards wher e international standards exist. There is still a 
long way to go: only 47% of Chinese standards are a ligned with international standards, as mentioned 
in the Secretariat's Report. For a major tr ade power, this is hard to comprehend. 
127. The EU is also closely following recent deve lopments in the government procurement area. 
The EU welcomes China's commitment to joining the GPA and the announcement of the submission 
of a revised GPA offer this July.  The EU expects this offer will be ambitious  and substantially cover 
procurement by central, provincial and local en tities in China. The proposed outline for the 
“Indigenous innovation scheme” is creating uncertainty  with regard to its ultimate objectives and 
integration within the existing government procurem ent law. The EU would like China to clearly set 
out the objectives pursued by this policy and its  impact on the procurement market. While we 
welcome Chinese efforts in advancing strategies fo r scientific and technological innovation, these 
strategies should remain non-discriminatory, and should not limit the scope of innovation production. 
The aim ought to be to create the adequate c onditions for building up a sustainable innovation 
capacity with open and fair competition without restrictions in terms of market access. 
128. Fostering innovation goes hand in hand with a so lid protection of the related IPRs.  The EU 
acknowledges China’s continued effo rts and determination in building up its legislative framework 
and intensifying the enforcement of IPR protec tion, which is crucial in facilitating domestic 
innovation. Through its National Intellectual Property Strategy China has set itself a deadline to become by 2020 “a country with a comparatively hi gh level in terms of creation, utilization, 
protection and administration of IP rights”. We inv ite China to share its assessment about the success 
in implementation of this IP Strategy. We remain  concerned that enforcem ent remains insufficient, 
notably in regional and local levels, and deficiencies  and obstacles in solving complaints persist. The 
EU urges China to step up its efforts in enforcing IPR protection, including greater and effective 
customs control and criminal prosecution.  
129. Another area that continues, unfortunately, to create concern is China’s export barriers. The 
Secretariat’s Report has clearly articulated the real rationale behind this restrictive policy and the major problems it implies and has suggested more ade quate policy alternatives. The EU considers it is 
high time for China, as a global economic power able  to compete without these crutches, to free its 
exports from unreasonable restrictions, and review  and reduce the use of export quotas, taxes and 
VAT rebates, which only protect downstream industri es and, amongst other things, distort access to 
raw materials.  
130. Similarly, the WTO’s Report is also very clear in describing, even if briefly, the continued 
direct government intervention to guide resources in to particular sectors, notably manufacturing. As 
the world's largest provider of manufactured goods, th ere is no possible explanation that could justify 
this direct intervention and guidance. The sector is clearly already mature enough to perform alone: 
On what grounds can China justify the protecti on – for instance through ownership caps - of its 
automobile sector which is nowadays the world's largest producer?   WT/TPR/M/230 
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  131. Trade finance is a very important element in global trade - but again it is of utmost 
importance that officially supported export credits are not creating new distortions. Exporters should 
compete with the prices and the quality of their pr oducts and not with the terms and conditions of 
official trade finance support. Regrettably we not ice that EU exporters sometimes f ace Chinese 
competition of the latter kind. We believe that common disciplines and rules in the Export Credits 
field help reducing these forms of trade distortions and provide comfort for all exporters alike. We 
look forward to an intensified dialogue with our Chinese counterparts on these matters. 
132. To conclude, despite various bold reforms undert aken in the run-up to, and during the first 
years after China's WTO accession, the level of st ate interference in the economy is still noticeable 
and less and less compatible with China's leve l of economic development. The Chinese trading 
regime remains unduly complex and characterised by a large number of non-tariff barriers and a 
burdensome regulatory process. And as I pointed out ear lier, we see clear signs of reform stagnation 
in China: as illustrated by the fact that we are ra ising today very similar concerns to those already 
expressed during China's last TPR in 2008.  
133. We welcome that China has shown in a number of past WTO disputes that it is ready to make 
necessary changes to be in conformity with WTO la w, and we certainly hope China will pursue this 
policy in the future. In this spirit, the EU therefore encourages China to continue its efforts to embrace the key WTO principles of non-discrimination and national treatment, to fully institutionalize and enforce market mechanisms and overall, make its trade regime significantly more predictable and 
transparent.  
134. Nine years after China's accession to WTO, Chin a is a key player in the multilateral system. 
With that power come responsibility and the need to  contribute. There is still a mismatch between the 
two. We should thus expect that China not onl y fully abides by WTO rules and observes all the 
commitments made in the run-up of its accession but  also shoulders its responsibilities reflecting its 
weight as a leading trading nation. For this organisa tion to continue to function it is important that 
leading Members like China honour it s membership in spirit and in  letter. China has benefited 
enormously from the multilateral trading system, so  we can only expect that China continues its 
reform process steadily, opens its markets to le ss developed countries, and contributes to the 
multilateral trading system by providing cour ageous leadership in the DDA negotiations. 
HONG KONG, CHINA 
 General 
 
135. In common with other Members, Hong Kong, China has benefited from China’s growth and 
integration into the global economy.  Given our geographical proximity, Hong Kong enjoys very 
close economic and trade relations with China.  Si nce 1985, China has been our largest trading partner 
and we are China’s third largest trading partner.  In 2009, total trade between the two places amounted 
to US$324 billion, representing almost half of Hong Kong’s total trade value and 8% of China’s total 
external trade.  Hong Kong is China’s largest sour ce of realised direct foreign investment, while 
China is Hong Kong’s most important external inv estor.  With China’s progressive integration into 
the world economy, our economic exchanges with Ch ina have further intensified, particularly 
following the signing of the Closer Economic Partnership Arrangement, a comprehensive free trade arrangement between the two places.  Incidenta lly, we signed the seventh supplement to this 
Arrangement just last Friday.  This represents furt her liberalisation and brings us another major step 
forward in our mutual trade and economic cooperation. 
136. Overall, we commend China’s efforts in implementing measures and reforms to improve its 
integration into the world economy and in increasing the transparency of its trade-related policies and 
regulations.  We consider that China’s sustai ned economic growth, especially following its WTO WT/TPR/M/230 
Page 22  
 
  accession, is a good example of the benefits that can  be brought to an economy by trade liberalisation 
and integration into the multilateral trading system. 
Tariffs 
137. Turning to specific aspects of its trade policy, in respect of tariffs, we note that China has 
bound all its tariff lines at ad valorem  rates, and that its average applied MFN tariff rate at 9.5% in 
2009 is close to the average bound rate.  This  helps provide traders with a high degree of 
predictability on China’s tariff regime.  We also welcome the concrete steps taken by China to 
liberalize its tariff regime further by unilaterally reducing its standard applied MFN rates on 5 lines 
and interim MFN rates on 673 lines in 2009.  We look forward to additional market access 
opportunities in China through further tariff reduction.  
Standards and other technical requirements 
138. On standard setting, we note that, by 2007, 46.5% of China’s national standards were 
equivalent to international standards.  Chin a has also signed a number of intergovernmental 
agreements and has participated in the APEC  Electrical and Electronic Equipment Mutual 
Recognition Arrangement.  We would like to comme nd China’s efforts in aligning its national 
standards with international standa rds and its participation in region al standardization organizations. 
Services 
139. On services, the Secretariat’s Report has highlig hted that China has been liberalizing its 
services sectors in line with its commitments under the GATS and has implemented some of its 
GATS commitments ahead of schedule.  With the gr owing importance of services trade, in terms of 
its increasing contribution to China’s GDP and empl oyment, we believe that continued liberalization 
of trade in services will be crucial for China’s furthe r economic growth and sustainable development.   
140. In this regard, we note that China has been undertaking liberalization reforms in a number of 
infrastructural sectors, such as financial and tel ecommunications services, and has eliminated some 
approval requirements in respect of foreign funded enterprises in certain international maritime 
transportation and auxiliary services. We would encour age it to keep up its efforts in this direction so 
as to meet the challenges ahead. 
WTO Rules Negotiations 
141. On the Rules front, we are somewhat concerned that the number of trade remedy cases 
involving China, both as a user and a recipient of trade measures, has been rising recently.  This 
reflects that, as the global economic recovery remain s fragile, the risk of protectionism is still 
hovering.  There is an added urgency to strengthen the multilateral rules to fo restall possible abuse. 
We look forward to working closely with China and other Members to bridge the gaps in the Rules 
negotiations with a view to brin ging these to a fruitful conclusion. 
Government Procurement 
142. Finally, we welcome China’s application for accession to the Agreement on Government 
Procurement.  We would encourage it to step up its efforts to open up its procurement markets to 
WTO Members, and are keen to receive its revised offer in the accession process.  WT/TPR/M/230 
 Page 23 
 
 
  TURKEY 
143. Considering the share of China in the world economy and trade, without doubt this meeting 
will contribute to enriching our u nderstanding of the world trade wh ile ensuring the much needed 
transparency.   
144. We would like to join others in acknowledging th e very active role played by China at the  
Doha  negotiations under the wise guidance of Ambassador  Sun.  Besides being Members of the G-33, 
we are also very pleased to work with China on various topics of Doha and the WTO Committees. 
145. We share the commitment of China in im proving market access for goods and services 
through the conclusion of the Doha Round, and stre ngthening the WTO rules.  We will continue to 
work with China towards that end. 
146. Long and rich relations between Turkey and China have been strengthened with increased 
bilateral trade and economic ties.  The volume of trade between the two countries reached US$14 billion at the end of 2009, growing by more than 40% annually.  As of 2009, China has become our 
third biggest source of imports. 
147. Our cooperation in other fields like investment , construction, and energy are modest but 
increasing each day.  We are particularly pleased  with the contribution China is making to 
modernization of the railways in Turkey.  We area willing to further improve the bilateral relations in 
every possible field. 
148. Starting with Malaysia, since the beginning of his year until now, in the TPR Body, we have 
been looking at trade policies and business practices  of the several developing and recently acceded 
Members with different economic sizes.  They have  one thing in common.  All have been committed 
to open economies and trade regimes, albeit at vary ing degrees.  China follows the suite to a large 
extent with one exception:  state and public enterp rises still play a major role.  It also represents a 
unique case as the foreign companies have also quite  a large share in the economy and in trade. 
149. This review of China is also a very good oppor tunity for us to look into the alternative 
policies China has been adopted to attain sustainable development, and the definition of relation and 
interaction between state and market.  We believe  that the Chinese experience provides important 
insights to solve this puzzle. 
150. Nevertheless, integration of China into worl d’s open trade and investment regime has 
obviously paid off very well for the Chinese people in terms of prosperity and economic development.  
It is also clear that the accession to the WTO also play ed a role in this process.  We are pleased to read 
at both the Secretariat and the Government Reports th at China continues to move forward in this path 
towards a more open economy. 
151. We think that predictability and transparency are the key elements here, and respecting these 
elements in the course of trade policy making a nd implementation will help further improve the 
current business environment, and contribute to the development of many countries. 
152. As a result of the determined reforms in the l ast several decades, since its last review, China 
has now become top exporter and the second biggest im porter of the world in addition to its status as 
one of the top three economies of the world. 
153. Furthermore, due to its dynamic and very high rate of economic growth, it has also become 
the engine of growth for many countries.  In fact, China leaded the world out of the crisis in 2009 by 
responding to it in a swift manner with an initial expansionary policy and later stimulus package WT/TPR/M/230 
Page 24  
 
  equivalent to 13% of the GDP.  It is also commendabl e that China has not resorted to any protectionist 
measures during the crisis. 
154. Furthermore, we are also very pleased to see th at China continued to gradually liberalize its 
economy and improve the business environment.  It provided new market openings in services, 
relaxed certain restrictions on FDI, and reformed  the taxation system among others.  We are also 
appreciative that China continues to undertake policies to improve the IPR regime, and certainly we 
hope that it will provide a more secure environment as innovation becomes a priority. 
155. The information in the Secretariat Report reveal s that the future of the world’s economy is 
somewhat linked also to the health of th e Chinese economy and its commercial and economies 
policies.  It has a significant capacity to affect the world markets.  Any trade policy such as export 
duties has important ramifications for the other indi vidual economies and our trading capacity.  In this 
respect, we do not doubt that China will continue to pay attention to this element, and undertake this 
leadership role in line with its WTO commitments. 
156. We are also sure that “the Chinese way” w ill come up with the creative solutions in due 
course of time to the challenges such as establishi ng a social safety net, addressing the overcapacity in 
manufacturing, promoting domestic demand or the ex change rate as identified in the Secretariat 
Report. 
157. The Secretariat Report points out that “the Chine success in world markets and its heavy 
dependence on manufactured exports leaves it vulnerable to trade frictions with its trading partners”.  
We believe that the Chinese success in exporta tion and manufacturing provides opportunities for 
every country rather than a reason for frictions. 
158. Potential source of the friction is not their appa rent success.  Bur rather, compliance with the 
WTO rules while designing and implementing th e export and import policies has the critical 
importance.  However, any possible friction may eas ily be avoided through transparent, fair and 
predictable trade rules which all Members, includi ng China, are committed to observe and strengthen 
at the WTO. 
BRUNEI DARUSSALAM ON BEHALF OF ASEAN MEMBERS 
159. First and foremost, we would like to comme nd China on the continuous achievement of 
benefits for its economy and people,  which has been particularly remarkable amidst the challenging 
economic times and natural disasters faced.  Since the last Trade Policy Review, we note from the Secretariat Report that China’s overall trade policy aim has remained unchanged, where it has continued to open its economy to the outside worl d develop foreign trade and promote mutually 
beneficial economic developments.  
160. In this, we note that China has continued on its gradual liberalization of its international trade 
and investment regime, with continued deep commi tment to the multilateral trading system, resisting 
any protectionist responses during the time of th e global economic recession.  Even though there was 
a sharp decline in demand caused  by the recession, China was the second largest exporter in the 
world, as well as the second largest trader, reco rding a rebounded GDP growth of 8.7% in 2009. 
161. I shall now turn to China’s specific trade polic y instruments.  China has continued its long-
term strategy of opening its econo my and has taken steps towards improving transparency of its trade 
policy regime.  In addition to this, China has impr oved its IPR laws as well as adopted new laws in 
competition policy and relaxed FDI restrictions in services sectors of telecommunications and 
tourism.  All these measures would serve to continue  attracting even more foreign investment into  WT/TPR/M/230 
 Page 25 
 
 
  China, which, together with China’s continued efforts at developing its capital market would 
simultaneously contribute to  boosting domestic demand. 
162. On trade in goods, ASEAN notes with appreciat ion that a high degree of predictability 
remains with China’s tariffs, given that applied rat es are close to bound rates, which remain low.  The 
average MFN tariff has also been further reduced from 9.7% in 2008 to 9.5% in 2009. 
163. ASEAN also notes that China has continued to implement its Customs transit reform and has 
introduced a direct release system, wh ich would further facilitate trade. 
164. China remains to be a very important econom ic and regional partner for ASEAN, and has 
emerged as ASEAN’s third largest trading partner in 2008, with total trade of US$192.6 billion.  
Trade between ASEAN and China has steadily increased  over the years, enhanced further with the 
establishment of the ASEAN-China Free Trade Area, whic h is the third largest in the world.  With the 
trade in goods and dispute settlement agreem ents implemented from 2005 and the Agreement on 
Trade in Services in 2007, ASEAN further welc omed the ASEAN-China Investment Agreement 
signed in August last year, thereby completing th e ASEAN-China FTA.  With a view to further 
improving market access between ASEAN and China,  ASEAN also looks forward to a successful 
review of the Sensitive Track products. 
165. ASEAN also works together with China, Jap an and Korea under the cooperation framework 
of ASEAN+3, where Leaders, at the 12th ASEAN+3 Summit held in October 2009 exchanged views 
and issues such as the global financial crisis, furthe r reaffirming the support or resisting protectionism 
and calling for an ambitious and balanced conclusion  of the DDA.  ASEAN certainly looks forward to 
continuing this warm spirit of cooperation a nd partnership that we have with China. 
166. ASEAN is also happy to note that China has c ontinued to be an active participant in the 
multilateral trading system, particularly in its role  as a developing country member and its efforts at 
pushing forward the DDA negotiations.   
SINGAPORE 
167. Singapore has a history of strong bilateral ec onomic ties with China underpinned by deep 
trade and investment linkages.  In 2009, at the he ight of the global economic crisis, bilateral trade 
experienced a dip of 17.2% from the previous year, re aching US$53.73 billion.  In spite of this, China 
remains an important trading partner for Singapore.   In the same year, China was our third largest 
trading partner while Singapore was China’s eighth la rgest trading partner.  Reflecting the depth of 
our economic ties, China-Singapore bilateral trade has rebounded strongly this year with the global 
economic recovery, to grow 36.6% year-on-year in the first quarter. 
168. On the investment front, China continues to be  Singapore’s top investment destination, with 
cumulative actual investments of US$41.4 billion as of  2009.  In 2009, actual investments into China 
stood at US$3.6 billion.  China too has continued to  use Singapore as a platform for their enterprises 
to “Go Global”.  By end 2009, close to 3,000 Ch inese firms have based themselves in Singapore, 
leveraging on our connectivity,  pro-business environment and deep capital market to access 
international markets.  This is a win-win situatio n that Singapore will continue to facilitate and 
encourage. 
169. Economic ties between Singapore and China we re further strengthened by the China 
Singapore FTA, which entered into force last year.  The CSFTA is a milestone in our bilateral ties as 
it was the first comprehensive bilateral FTA that Ch ina concluded with an Asian country.  Since the 
FTA entered into force, our companies have benef itted from greater access into each other’s market.  WT/TPR/M/230 
Page 26  
 
  The cost of doing business has also reduced.  This  has deepened the trade and investment linkages 
between the business communities of both countries. 
170. The strengthening of our bilateral economic ties with China is due to the growing 
commitment of both countries.  It is also the result of the robust growth and increasing openness of 
the Chinese economy.  In particular, its commitment in the goods schedule is significant and 
commendable.  We commend the continuous efforts undertaken by China in liberalizing its import 
and export policies as well as the relaxation of FDI restrictions on some sectors.  These represent the growing openness of China’s economy as well as the country’s firm commitment to improve its trade and investment policy regimes. 
171. Nevertheless, the Secretariat Report has noted that China is the sixth most frequent user of 
anti-dumping measures during the period.  In this regard, China has adopted three anti-dumping 
measures against Singapore betw een January 2007 and December 2008.  As such measures can 
potentially slow the growth of bilateral trade, es pecially at a delicate time of recovery from the 
economic crisis, we remain concerned about China’ s imposition of definitive anti-dumping measures.  
Singapore shares China’s stance on the benefits of fr ee trade and the view that protectionism will only 
hamper global economic recovery.  We hope and be lieve that China will remain committed to open 
markets and free trade. 
172. Since its accession to the WTO in 2001, China h as played an active and responsible role at 
the WTO and on the global economic stage.  At the height of the global economic recession, China’s prompt and decisive response to the crisis helped to  cushion the crisis’ impact  on regional growth.  As 
shown in this trade policy review, China’s trade lib eralisation measures and reforms to align its trade 
practices with WTO principles illustrate its commitme nt to upholding the multilateral trading system.  
China is also an active participant in all ar eas of the Doha Round negotiations.  Singapore is 
committed to working with Ambassador Sun Zhengyu a nd his delegation here in Geneva, as well as 
other Members, to bring the DDA negot iations to a successful conclusion. 
UNITED STATES 
173. This is the third Trade Policy Review for Chin a since acceding to the WTO nearly nine years 
ago.  Under the terms of China’s Protocol of A ccession, China became responsible for full adherence 
to WTO rules nearly four years ago, when all of th e transition periods that China had been allowed as 
a new Member of the WTO expired. 
174. During China’s Trade Policy Review two years a go, the United States urged China to become 
fully engaged in WTO processes, citing China’s stat us as a full Member of the WTO and the size of 
China’s trade flows.  Indeed, Chin a has risen to become the world’s third largest trader, 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 syst em, China has a responsibility to take on a leading 
role at the WTO and to help shap e future trade liberalization –  and the United States again urges 
China to do so. 
175. The WTO process that needs China’s participati on most urgently is the Doha Development 
Agenda.  Since the Doha Round w as launched in 2001, China’s power and influence in the world 
economy have expanded dramatically.  It is vital for China, like other major emerging economies, to 
accept the responsibility that goes along with its powe r and influence.  We believe that sustained 
engagement, including through bila teral negotiations between the United States and China, is critical 
to building momentum for a successful conc lusion to a balanced and ambitious Round. 
176. Turning to the analysis in the Secretariat’ s Report, the United States notes its disagreement 
with the Report’s broad assertion that “China has maintained its long-term strategy of gradually  WT/TPR/M/230 
 Page 27 
 
 
  opening up its economy to international trade and FDI” since its Trade Policy Review in 2008.  In the 
United States’ view, this st atement should be qualified. 
177. In the first years after China’s accession to the WTO, China made noteworthy progress in 
adopting economic reforms that facilitated its tran sition toward a market economy and increased the 
openness of its economy to trade and investment. However, beginning in 2006, progress toward 
further market liberalization began to slow. 
178. By the time of China’s Trade Policy Review in  2008, the United States noted evidence of a 
possible trend toward a more restrictive trade regime, citing several Chinese measures signalling new 
restrictions on market access and foreign investment in China.  At the root of many of these problems was China’s continued pursuit of problematic i ndustrial policies that relied on excessive government 
intervention in the market through an array of trade-distorting measures designed to promote and 
protect domestic industries.  This government inte rvention appeared to be a reflection of China’s 
historic yet unfinished transition from a cent rally planned economy to a free-market economy 
governed by rule of law. 
179. Since China’s Trade Policy Review in 2008, ther e is increasing evidence of such a restrictive 
trend.  Examples from the past two years includ e:  (1) the continued and incrementally more 
restrictive use of export quotas and export duties on a large number of raw material inputs; (2) the selective use of other border measures such as valu e-added tax rebates to encourage or discourage 
exports of particular products; (3) the setting a nd enforcement of unique Chinese national standards, 
such as an informal requirement that all new 3G mobile handsets be enabled with a unique Chinese 
national standard for wireless Internet access; (4) China’s government procurement practices, 
including an array of new central, provincial and local government “Buy China” policies; (5) a new 
Postal Law that excludes forei gn suppliers from a major segment of the domestic express delivery 
market; (6) impediments to the foreign supply of  value-added telecommunications services and an 
informal ban on new entrants in China’s basi c telecommunications sector; and (7) continuing 
significant restrictions on foreign investment in  China, along with continuing consideration of 
“national economic security” when evaluating fore ign investment through mergers and acquisitions. 
180. The Secretariat’s Report itself notes that Ch ina “has been continuing with its direct 
intervention measures to ‘guide’ resources into certain sectors of the economy, particularly 
manufacturing.”  It also identifies a number of ways in  which China’s trade regime is restrictive.  For 
example, the Secretariat’s Report discusses in some  detail China’s export regime, which it explains 
“is still characterized by various restrictions, not ably prohibitions, licensing, quotas, taxes, and less 
than full rebates of VAT on exports.”  The Report also notes that “China’s Government Procurement 
Law requires the Government to procure domestic ally produced goods and services.”  Addressing 
foreign investment, the Report explains that “there  are still significant restrictions, such as foreign 
participation limits, on some sectors and private- sector activities” particularly in services sectors. 
181. Despite its discussion of these restrictive aspects of China’s trade and investment regime, the 
Secretariat’s Report fails to note more broadly the change in the pace and direction of China’s trade 
liberalization efforts over the past two years.  In  the United States’ view, China has become much 
more focused on developing industrial policy initia tives aimed at helping Chinese enterprises move up 
the value chain in key industries, and China has de monstrated a highly selectiv e interest in continuing 
to open its market more fully and fa irly to foreign participation.  
182. At present, the industrial policies generating the most controversy are China’s so-called 
“indigenous innovation” policies. Over time, it has become evident that many of these programs 
contain elements that could discriminate agains t foreign products, foreign investors, foreign 
technology and/or foreign intellectual property.  Recent measures have generated intense concern 
among WTO Members and their business communities by more concretely demonstrating a policy WT/TPR/M/230 
Page 28  
 
  direction that seems designed to limit market acce ss for imports and foreign investors and pressure 
enterprises to localize research and development in China, as well as transfer technologies.  We 
welcome the progress that we made on these matters during bilateral meetings in Beijing last week 
and look forward to continued intensiv e discussions with China in this area. 
183. The United States recognizes the significant economic  and social challenges that China faces.   
We also recognize the important contribution Ch ina’s economic progress has been making to global 
growth and development.  Nevertheless, the Chinese  government’s continued efforts to intervene in 
the economy and to direct the development of its domestic industries are generating increasing 
concern. 
184. One area that continues to generate significan t problems for the United States is China’s 
inadequate enforcement of intellectual property righ ts.  We acknowledge that the Secretariat’s Report 
and the Government Report set out numerous act ions that have been undertaken by the Chinese 
authorities to try to improve the enforcement of in tellectual property rights.  However, those efforts 
have still not significantly reduced the unacceptably hi gh infringement levels in  China, and therefore 
the United States continues to seek ways to work with China to im prove China’s enforcement regime. 
185. The services sector has also generated concerns.  While the Secretariat’s Report only 
addresses a few services sectors in depth, it does co rrectly note that “[w]hile the Government’s 
intention is to open the services sector further to  private and foreign participation as a means of 
boosting growth and providing altern ative employment to agriculture, the pace of liberalization has 
been slower than that for manufacturing.  As a r esult, some services sectors are still subject to a high 
degree of state control and lack of competition.”  In the United States’ view, key services sectors 
affected by these problems include banking, insu rance, telecommunications, electronic payment 
systems, express delivery and legal services. 
186. In the area of agriculture, we note that Ch ina has still not fully embraced international 
standards, science-based rulemaking and advance notifi cation, particularly with regard to sanitary and 
phytosanitary measures.  China re mains an unpredictable market for agricultural products, largely 
because of selective intervention in the ma rket by China’s regulatory authorities. 
187. Transparency, meanwhile, is an ongoing concern that cuts across sectors.  Many of China’s 
regulatory regimes continue to suffer from systema tic opacity, thereby frustrating efforts by both 
foreign and domestic businesses to achieve the potenti al benefits of China’s accession to the WTO.  In 
addition, China has fallen behind on its obligati on to notify its subsidy programs and has never 
notified any provincial or local government subsidies,  even though dozens of them were the subject of 
a recent prohibited subsidies WTO dispute brought by  the United States, Mexico and Guatemala.  
China has also resisted providing  greater transparency for its export credit regime. However, we 
recognize that China has improved its transparency on other fronts.  In particular, the National 
People’s Congress and the State Council have been re gularly publishing draft laws and regulations for 
public comment, although many individual ministries and agencies have displayed more difficulty 
publishing departmental rules for public comment.  China also now regularly publishes new laws, 
regulations and departmental rules issued by th e central government in an official journal.  
Nevertheless, China continues to lag behind in prov iding translations of these same measures, despite 
having committed to do so in its Protocol of Accession. 
188. The United States is working bilaterally with  China to resolve our concerns through 
cooperative and constructive engagement.  Indeed, we  appreciate China’s willingness to engage in a 
wide range of formal and informal bilateral di alogues, working groups and meetings.  We have 
continued to use avenues like the U.S.-China Joint Commission on Commerce and Trade to seek 
pragmatic resolutions to pressing trade issues and th e U.S.-China Strategic and Economic Dialogue to 
help manage the complex United States-China economic  relationship on a long-term, strategic basis.   WT/TPR/M/230 
 Page 29 
 
 
  We continue to make progress through this bilateral engagement, and we also have made constructive 
use of other mechanisms where dialogue has failed to resolve our differences.   Since China’s last 
Trade Policy Review in 2008, we have initiated tw o WTO dispute settlement cases against China, and 
in both cases we have been joined by other Members. 
189. In closing, the United States looks forwar d to further coopera tive and constructive 
engagement with China, both bilaterally and here at the WTO.   We stand ready to do our share of the 
hard work, and we hope that China will join us. 
INDIA 
190. The sustained high growth China has witnessed ove r the last three decades has not only led to 
a structural transformation of the Chinese economy, sh rinking poverty incidence to a fraction of what 
it was previously, but has also resulted in the emerge nce of China as a major driver of global growth.  
The emergence of China serves as an example of  the range of possibility for other developing 
countries.  In India, China’s growth story is a con tinuing theme of interest, narrated with great interest 
and admiration.  As economic partners, we continue to learn from each other. 
191. As China depends substantiall y on exports, the global financia l and economic crisis caused 
severe economic disruption to its economy, with huge  job losses.  However, the stimulus measures 
introduced by China seem to have moderated the da mage and the economy is returning to its high 
growth trajectory.  Given the role that China pl ays in the global economy, this is welcome news. 
192. From the Secretariat’s analysis, I would like to highlight three issues which stand out – large 
and persistent surplus of dom estic savings over domestic investment, heavy dependence on overseas 
demand and overcapacity in several core industries.  It is clear that China will need to address these 
structural issues in order to lend sustainability to its  economic growth in the medium to long term.  In 
addition, as far as China’s trade policy regime is concerned, I would like to mention that China’s 
continuing use of non-tariff border measures, such as import and export licensing or state trading to “guide” the allocation of resources, may not be the most efficient method for allocation of resources. 
193. In the context of its growing role in the multila teral trading system, it is heartening to note 
that China has been playing an active and constructi ve role in the WTO in general and in the Doha 
Round negotiations, in particular.  The active engagement of importa nt players like China is essential 
if we are to achieve a balanced and pr o-development outcome of the negotiations. 
194. India and China are both ancient civilizations  and share historic relations.  Our two 
governments have declared 2010 as the “Year of Indi a” for China and the “Year of China” for India.  
In the context of the 60
th anniversary of the establishment of di plomatic relations between India and 
China, the President of India has just concluded a 5-day visit to China.  The visit served the purpose 
of consolidating the strategic and cooperative part nership for peace and prosperity between the two 
countries. 
195. Bilateral trade between India and China in 2008 was US$52 billion.  In 2009, it went down to 
US$43 billion due to the global slowdown.  However recovery is underway and the first two months 
of 2010 have recorded trade of US$9 billion.  Th e two countries are committed to further expanding 
bilateral trade based on the huge new opportunities that  are emerging.  Issues like trade diversification 
have to be addressed as also the adverse trade balan ce for India.  We continue to work on a number of 
regulatory and other restrictions that constrain our  market access in China,  both for goods as well as 
services. 
196. My delegation has posed questions relating to certain trade policies, and trade measures of 
China which also cover some technical standard s and SPS measures which, in our view, impede WT/TPR/M/230 
Page 30  
 
  bilateral trade.  I do not wish to list the issues we have raised in detail, however, the important issues 
are the following. 
197. Firstly, export of Indian fruits and vegetables to China.  While China has granted access for 
Indian mangoes, grapes and bitter gourd, access is yet to  be granted for 14 other fruits and vegetables.  
I hope that China will take expeditious steps to f acilitate import and fruits a nd vegetables from India. 
198. Secondly, Indian companies are facing tariff and non-tariff barriers in the export of power-
plants and wind energy equipment from India to China.  I hope China will address this issue to 
encourage diversification in export of high-technology items from India. 
199. Thirdly, Indian drugs and pharmaceuticals manuf acturers face non-tariff barriers in exporting 
to the Chinese market.  I hope China will take effective steps to promote trade in Indian 
pharmaceuticals. 
200. Fourthly, Indian IT companies face some problems in areas of visa/work permits and business 
tax regulations.  We consider th is sector to be extremely important in our bilateral economic 
relationship and would request China to a ddress the issues in a comprehensive manner. 
201. I have highlighted these issues as we believe  that access barriers in these areas constitute 
excessive restrictions to market ac cess.  I hope that China will take concrete and timely steps to 
address these concerns. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
202. Since China’s last Trade Policy Review, our b ilateral economic relations hip has continued to 
grow rapidly.  China is currently our largest tradi ng partner and the most important destination for our 
overseas investment.  The amount of two-way trade between us totalled US$1 09.3 billion in 2009.  
During the period from 1991-2009, our investment in China has reached US$82.7 billion.  It has 
played a positive role in China’s economic develo pment, and is even steadily increasing and is 
becoming more and more diversified and sophisticated.   
203. With that in mind, we would like to see Chin a continues to pursue a more transparent and 
open-door trade regime.   
204. My delegation has already put forward a number  of written questions to China in advance, 
reflecting a number of issues of concern to our business community, which include:  1) providing 
opportunities for consulting our enterprises operating in Mainland China with a view to taking their 
interests into account before completing the form ulation of related regu lations and measures;  
2) China’s Standards and technical regulations;  3) government procurement;  4) exports taxes;  
5) taxation and tax incentives;  6) competition policy; 7) intellectual property rights;  8) energy policy; 
and 9) overseas investment policy. 
JAPAN 
205. With regard to the economic policy and envi ronment, Japan appreciates China’s economic 
growth, illustrated by the recent 8.7% GDP growth  rate, thanks to measures such as the economic 
stimulus package of Y 4 trillion and monetary easing by the Chinese Government, which minimized 
the effect of the global financial economic crisis.  
206. The bilateral economic relations hip between China and Japan h as deepened further since the 
previous TPR. China is the largest trade partne r for Japan, with US$232 billion and the destination 
country for the largest direct i nvestment from Japan with US$4.1 b illion, both in 2009. More than  WT/TPR/M/230 
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  25,000 Japanese-owned businesses operate in China. As the relationship grows, so does our interest in 
the liberalization of Chinese markets.  
207. A joint study has started in early May for an  FTA among China, Japan and Korea. Japan is 
willing to cooperate to have a fruitful result.  
208. Having said that, Japan has to point out that China is not completely free from measures 
which could be interpreted as protectionist. In this context, Japan would like to touch upon two issues.  
209. The first issue is government procurement. Jap an would like to express its concerns over 
measures which would strengthen the preferential treatment for Chinese products and services through government procurement. These are related to (1) the Indigenous Innov ative Initiative, (2) the 
China Compulsory Certification on IT security products, and (3) the Implementation Regulations of 
the Government Procurement Law. Japan very  much hopes for China’s early accession to the 
Agreement on Government Procurement (GPA) w ith a high degree of commitment to achieve 
openness, transparency and non-discrimination.  
210. The second issue is export restrictions over mine ral resources. Japan is concerned that China 
imposes export duties and export quotas through licensi ng systems on various minerals. It is not clear 
to us whether China has equivalent domestic m easures in conjunction with these export restrictions. 
Since China is one of the main sources of minera ls, which are necessary for the sound development of 
the world economy, it is essential that China mainta in the stable export of minerals. These export 
restrictions would not only affect the production of other Members, but also conversely  the production 
in China, given the deepening international divisi on of the production process. Therefore, the stable 
export of minerals to the world benefits China.  Japan hopes that these export restrictions will be 
removed or relaxed shortly.  
211. In addition to these measures, I would also like to touch upon five points 
regarding the trade 
policies of China. 
212. Firstly, as for the transparency of trade-relate d legislation, including the Anti-Monopoly Law, 
Japan appreciates the tremendous efforts that the Chinese Government has made so far. However, 
Japan has been informed by local businesses that application procedures under various legislations are 
complex. In addition, there are observed diverg ences among local governments and authorities. As for 
business combination legislation, we still have con cerns on the possibility of protectionist judgments 
and the low predictability of  the examination process. 
213. Japan expects China to improve these situations , and would appreciate China’s further efforts 
to improve the transparency and predictability in te rms of legislation as well as enforcement of trade-
related laws.  
214. The second point concerns trade remedies.  Japan is of the view that the Chinese Government 
has increased the use of anti-dumping measures. On the investigations and decisions taken by the 
Chinese authority, Japan has some concerns on bo th procedures and judgments in light of the AD 
Agreement. It is illustrated by so me cases where the lack of transp arency has obstructed due process 
towards the investigated enterprises. For this reason, Japan con tinues to monitor if China makes the 
investigations and takes the decisi ons appropriately and rationally. 
215. As for subsidies, Japan is concerned with the lack of notification since 2005. Notification is a 
basic obligation for the Member States. Japan ur ges China’s prompt submission of notifications. 
216. Thirdly, Japan appreciates the recent progress in IPR protection in China, in terms of 
development of the legal framew ork and strengthened enforcement. However, Japan observes that WT/TPR/M/230 
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  infringers have become more sophisticated in dealing with counterfeit and pirated goods. Japan 
therefore hopes that China will strengthen further the protection of IPR. We also have had concerns 
over trademark registration since we have learned of cases in which registrations of the names of 
prominent places have been registered and adve rsely affected business activities of Japanese 
enterprises.  
217. The fourth is about trade in services. Japan is particularly interested in the improvement of 
commitments, in the financial services, telecommunications services, and construction services in particular. In service in general, Japan would like to see more transparency in domestic regulations, 
smoother administrative procedures, and the steady implementation of commitments already made. In 
particular, Japan is interested in seeing relevant le gislations being operated consistent with the WTO 
rules.  
218. Fifthly, Japan recognizes that China prom otes “South-South coope ration” and plays a 
growing role in the area of Aid for Trade. Japan hope s that China will coordinate with other donors in 
the field of global economic cooperation,  including the Asia Pacific area.  
219. We note that there are several written questions  that remain unanswered from the previous 
TPR. To fulfill the main objective of TPRM, the tr ansparency and understanding of trade policies, 
Japan expects China to provide tim ely replies to all the questions. 
220. As I stated so far, Japan appreciates the trade liberalization efforts which the Chinese 
Government has made. At the same time, Japan w ould like to reiterate its hope that China will 
continue its efforts to trade liberalization, resisti ng the temptation for protectionist measures. China is 
now one of the most important players in the world trade. It is our strong expectation that China will 
contribute further to the development of world trade th rough the promotion of free trade, in light of its 
important position. 
CANADA 
221. Canada values its partnership with China, which is Canada’s sec ond-largest merchandise 
trading partner and third largest export market. Ca nadian merchandise exports to China have grown 
by more than half since 2005. China is also Cana da’s second-largest source of imported merchandise.  
222. There can be no question that China has made significant progress in liberalizing its trade. 
The pace of reform and opening that followed China’s WTO accession was rapid and impressive. Canada welcomed China’s effo rts and is committed to continuing to support China’s trade 
liberalization endeavours.  
223. Canada has raised with China a number of r ecent measures that could disadvantage foreign 
companies in the Chinese market, including polici es in the areas of standards development, 
government procurement, market access in particul ar sectors,  indigenous innovation and intellectual 
property rights. Sustaining the fragile global econom ic recovery depends on resisting domestic calls 
for protectionism. In this regard, Canada is pleas ed to note that, in its 2009 and 2010 federal budgets, 
Canada has undertaken unilateral tariff reductions affecting ove r $C1.2 billion in imports of 
manufacturing inputs, machinery and equipment from China . 
224. Canada believes that sustained economic and investment liberalization is the best way for any 
country to foster innovation, attract advanced tec hnology, and strengthen domestic sources of growth. 
While Chinese investment flows into Canada are grow ing at a healthy rate, Canadian investment into 
China remains constrained by limitations and restric tions. Creating the conditions for a more balanced 
investment relationship will enhance our two countries' economic relations.   WT/TPR/M/230 
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  225. Regulatory transparency is a cornerstone of China’s ongoing transformation into a 
competitive, modern economy. A further deepening of reforms would better support market openness, 
including the creation of regulatory institutions with authority, capacity and independence.   
226. A related consideration is China’s WTO accession commitment to publish, in a single journal, 
advance notice of all laws, regul ations and other measures affecting trade in goods, services, 
intellectual property rights, and foreign exchange  control - including a reasonable period to be 
provided for comment. Long-term competitiveness and economic efficiency benefit from integrating 
the views of foreign businesses into its regulations  and regulatory practices. Canada would like to 
commend China on the excellent progress it has made in  this area. China conducts a growing number 
of public consultations and has exercised good faith,  in many cases reflecting foreign views in its final 
laws and regulations. Continued efforts are require d to fully meet this WTO commitment, including 
addressing publication gaps and a dopting consistent and sufficiently lengthy comment periods.   
227. As the sophistication of China’s economy grows, so too does the importance of adopting 
market-driven standards and practices. Canada enco urages China to develop these in accordance with 
the TBT Agreement’s Code of Good Practice, avoidi ng unnecessary barriers to trade. Canada is eager 
to see China increase harmonization of its national st andards with international standards and simplify 
conformity assessment procedures. Canada looks forw ard to working with China to ensure that its 
standards practices contribute positively to trade. 
228. Canada recognizes the effort China is making through changes to tax policies and pricing 
reform on energy and resource products to promote the optimal use of resour ces in accordance with 
the objective of sustainable development.  We urge continued effort to find effective, non-distorting 
trade policy instruments to protect the environment. 
229. While increasing two-way trade has created ne w opportunities, trade friction is inevitable 
even in the strongest of relationships. One such area is  the steel sector. In today’s context of integrated 
global steel markets, China’s domestic reforms ha ve far-reaching, international impacts. Canada, 
along with our NAFTA partners, has expressed concer n about overcapacity in China's steel sector. 
Canada would welcome transparency in China’s propo sed reforms in this sector, including the draft 
publication of China’s anticipated new Iron and Steel Policy.  
230. In the agricultural sector, Canada encourages China to follow a science-based approach to 
regulatory measures and to minimize trade-distorting barriers to imports. Certain Chinese measures continue to hinder access for Canadian exports such  as canola and beef. China and Canada both have 
much to gain from facilitating market access for these and other products.   
231. Canada also favours a science-based approach to  product safety.  The health and well-being 
of consumers is a natural concern of all governments.  As China’s exports to Canada are large and 
growing, increased attention has been drawn to pro duct safety and quality.  Canada welcomes China’s 
efforts to ensure effective fulfillment of the mandate of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) with  regard to export inspection, enforcement of 
safety standards as well as continuing efforts to stre ngthen coordination with international standards. 
232. In the area of intellectual property, Canada  recognizes the Chinese government’s commitment 
to improve both its legislative framework and enfo rcement of its intellectual property system. To 
secure an increasing role for innovation in contri buting to China’s economic development, China’s 
intellectual property regime must provide the protect ions and meet the needs of domestic and foreign 
businesses and inventors.   
233. This year’s Trade Policy Review again serves to  remind us that China has emerged as a major 
international trading partner and th at this amazing economic growth has benefited in large part from WT/TPR/M/230 
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  an open, healthy, and functional multilateral trad ing system.  We now look to China as a WTO 
Member that can make a vital contribution to an  ambitious and successful conclusion to the Doha 
Development Round. 
NEW ZEALAND 
 234. As the Secretariat’s report notes, in the pe riod under review China has achieved further 
progress in areas such as liberalisation of services, development of capital markets, reducing import barriers and regulation of intellectual property. We commend China on progress in further opening of 
its economy to trade and foreign investment. 
235. New Zealand notes and welcomes China’s oppo sition to protectionism. As the global 
economy slowly recovers it will be important for a ll Members to maintain this commitment in both 
principle and in practice. Trade under the bilate ral Free Trade Agreement between New Zealand and 
China has weathered the recession well, with trad e volumes near-to doubling since the FTA’s entry 
into force in 2008. The agreement has been implem ented smoothly, and its mechanisms are working 
well.  
236. China has responded proactively to the global r ecession through its stimulus measures, and in 
so doing has significantly contributed to the prospects for global economic recovery. Though 
economic conditions have been difficult, it will be  important that China continues the process of 
economic reform and liberalisation. New Zealand notes that the benefits of such reforms extend 
beyond economic growth, to include positive imp acts on the environment and broader social 
conditions.  
237. In particular, New Zealand sees great potential for reforms in agriculture and the services 
sector. Reforms in agriculture would increase compet itiveness and raise incomes in the rural sector, as 
well as supporting China’s broader goals of promoting social harmony and increased domestic consumption. The services sector will equally provide  an important source of growth and employment 
in China, as it is further liberalised. 
238. New Zealand is a strong supporter of transparen cy mechanisms in the organisation, including 
trade policy reviews and notification processes.  These provide an important opportunity for Members to review the policies and practices of other WTO Members.  In this context, we welcome the indication, in answer to EU question 101, that China will submit its 2005-2008 subsidy notification by 
this summer. 
239. New Zealand recognises the immense scale of  economic development achieved by China 
over 30 years of “reform and opening up” and welcomes the Chinese Government’s stated 
commitment to continuing reform and economic liberalization. New Zealand welcomes a prominent 
role for China within the WTO.  New Zealand look s forward to further discussion of the issues that 
have been raised during the course of this review. 
MEXICO 
240. Today China is Mexico's second trading partner.   In just a few years, trade between our 
two countries has grown tenfold, rising from 3 billi on dollars in 2000 to more than 34 billion dollars 
by the end of 2009. 
241. However, because of its high trade deficit with China, Mexico needs to redouble its efforts to 
devise schemes for cooperation that will contribute to a more even balance of trade to the benefit of 
both nations.  WT/TPR/M/230 
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  242. An example of such cooperation is the Mexico -China High-Level Group, which has been one 
of the main instruments in planning an ongoing  strategic agenda with China.  Through this 
High-Level Group, the two countries are seeking to deepen mutual understanding of industrial and trade policies and to identify business opportunities. 
243. Although to date trade has been the backbone of  our economic ties, we will need to foster 
closer economic integration by making investment one  of the major links between Mexico and China.  
Despite sizeable investment by businesses in both c ountries, there is still great potential for further 
investment and it is essential that capital flows be tween our economies should increase.  This matter 
has been looked into and we accordingly welcome the entry into force in June 2009 of the Agreement 
on the Promotion and Reciprocal Protection of Investment between the two countries. 
Economic Environment 
 
244. Although the global financial crisis severely aff ected China's foreign trade, it did not prevent 
the country from becoming, in January 2010, the world's number one exporter, a reflection of the significant 8.7 per cent growth its economy achieved in 2009. 
245. This remarkable performance of the country's econom y even at a time of crisis could also be a 
challenge for the Chinese Government .  It is therefore very important that we should have further 
information on the measures China is taking to ch annel the surplus in domestic savings towards 
domestic investment and on the difficulties facing th e Government in reducing overcapacity in core 
industries such as steel, aluminium and cement. 
Trade Policy Regime:  Framework and Objectives 
 
246. In this area China is obviously continuing with its policy of concluding free trade agreements.  
The recent agreements with New Zealand (Octobe r 2008), Singapore (January  2009) and Pakistan 
(services only, 2009), and the recent signing of a trade agreement with Peru (April 2009), are evidence of this. 
247. Also noteworthy are China's efforts to adopt trade-related laws, including the Anti-Monopoly 
Law, the Enterprise Income Tax Law and the Patent  Law.  Like many other Members, we welcome 
China's efforts in these two areas. 
248. We would also welcome further details of th e measures China is taking to improve certain 
aspects of the transparency of its trade policy regi me.  As the Secretariat Report points out, China 
ranked 38
th among 48 countries in the 2009 Opacity Index produced by the Milken Institute. 
Trade Policies by Measure 
 
249. On the matter of sanitary and phytosanitary measures, we welcome the fact that as from 
July 2008 the AQSIQ has allowed inspection at the destination and not at the port for certain goods.  
However, we would like to know whether any anal ysis has been carried out of the most positive 
aspects of this initiative. 
250. On the matter of standards, we believe that the proportion (15-19 per cent) of mandatory 
technical standards could be improved.  We would be interested to know whether the Government has 
any strategy to increase this proportion. 
251. With regard to export taxes, in light of the co mment in the Secretariat Report that, in effect, 
these taxes "constitute[s] implicit assi stance to domestic downstream processors of the targeted 
products and thus provide[s] them a competitive a dvantage", and noting the direct impact that these WT/TPR/M/230 
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  measures have on the increase in international prices of the product in question, we would be 
interested to know what China's policy will be regard ing the application of export taxes in the future, 
bearing in mind the adverse effects mentioned above. 
252. As regards intellectual property, my delega tion would like to know whether Chinese law 
provides for the protection of geographical indications , particularly for wines and spirits;  and whether 
it provides for the protection of designations of origin. 
Trade Policies by Sector 
 
253. As regards agriculture, we welcome the fact th at China is engaged in a policy to narrow the 
gap between urban and rural populatio ns which had worsened significantly with the global financial 
crisis.  In this connection we would like to know wh ether, apart from the agri cultural reform referred 
to in the Secretariat Report, there are any other pr ogrammes designed to narrow this gap and, if so, 
whether they involve direct transfers of income or other measures that do not generate distortions in 
agricultural activity. 
254. With regard to the Grain Reserves programme  implemented by the Chinese government, we 
would be interested to know whether the recent major grain (maize, wheat, rice and soya beans) 
procurements were made as part of the strategy laid down in this programme.  It would also be 
important to know whether the Chinese Government has undertaken any analysis of the impact of 
such measures on international grain prices and whether there is a ceiling for inventories. 
255. With regard to services, we note the progress in liberalizing certain sectors such as finance, 
telecommunications and tourism, which will no doubt help to generate more sources of employment 
and step up productivity and economic growth.  We trus t that the attention China is paying to services 
will alter the present situation in which competition is lacking owing to the extent of state control in 
most services. 
256. As regards the manufacturing sector, which is the main contributor to China's industrialization 
and rapid economic growth, Mexico still has some majo r concerns particularly in subsectors such as 
leather and footwear;  textiles and apparel;  electri cal and electronic goods;  iron and steel (including 
steel manufactures), and chemicals. 
257. These stem from the fact that the Government 's "guidance" policies might consist of 
incentives and other forms of assistance, and a thor ough review will undoubtedly be needed to ensure 
that these measures are consistent with international commitments under the WTO. 
ECUADOR 
 
258. China's success with its strategy to compete on global markets is very much in evidence, 
particularly in the manufactured goods sector.  By ta king advantage of the comparative strengths of its 
economy and by opening up to foreign investment China has become the world's number one exporter, and this has contributed significantly to its robust economic growth.  Although this growth 
strategy has enabled millions of people in China to escape from poverty, the recent international crisis 
has highlighted the risks of basing growth solely on  exports, where there is now surplus capacity in 
certain subsectors.  In our view, therefore, the measures the Chinese Government has adopted to step 
up domestic demand are appropriate. 
259. State trading and the role it plays are a feature of China's trade policy.  Furthermore, 
according to some IMF directors, referred to in the Secretariat Report, China's foreign exchange 
regime has led to undervaluation of the currency.  It accordingly needs to be thoroughly reviewed by 
the authorities because of the direct impact it h as on the competitiveness of exports, with adverse  WT/TPR/M/230 
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  effects for exports in a country that has a dollarized economy and is therefore unable to apply 
exchange rate and monetary policies of its own. 
260. With regard to conditions for market access, in the case of certain tariffs deemed by the 
Secretariat Report to be complex because of the number of different ad valorem  rates applied, we note 
that China continues to apply non-tariff measures of various kinds such as import licensing, export 
restraints and state trading in order to guide th e allocation of resources.  We call on the Chinese 
Government to review the period of validity of these measures, which in practice act as barriers to 
market access, with the attendant adverse effect s they cause to the exports of other Members. 
261. Trade relations between China and Ecuador ar e founded on the principles of friendship and 
mutual respect.  The two countries have deepened their economic relations further in recent years and 
have benefited from the complementarity of their ec onomies.  This is evidenced by the significant 
investments China has made in various sectors of Ecuador's economy and in particular by the recent agreement reached by the Chinese and Ecuadorian author ities, shortly to be put on an official footing, 
for the construction in Ecuador of what will be th e largest hydroelectric dam in the country and in 
which more than 2.3 billion dollars are to be inv ested.  Merchandise trade between the two countries 
has grown significantly, although the total values for 2009 are lower than those recorded in 2008 
owing largely to the consequences of the growing in ternational crisis, whose effects on the developing 
countries have yet to be overcome.  We reiterate our  wish to see trade between our two countries rise 
to its former levels and trust that, together, we will find mechanisms that will allow us to put the trade 
balance, traditionally negative for Ecuador, on a more even footing. 
CHILE 
 
262. The Secretariat Report shows us that China has continued with its policies to liberalize its 
trade and foreign investment regimes.  Despite  the difficulties caused by the economic crisis, 
particularly for an economy that bases much of its development strategy on international trade, China 
has succeeded in avoiding many of the blows inflicted by the contraction of global demand. 
263. Moreover, we note with satisfaction that in China the crisis has al so produced ideas for 
reviewing certain aspects of its development strate gy through the introduction of long-term structural 
reforms to increase real incomes throughout all sect ors of the economy and to increase the propensity 
to consume out of income.  As the Secretariat Re port points out, the adoption of measures to liberalize 
the domestic market and international trade should assist in this process. 
264. China has also continued to step up its particip ation in the multilateral system, and we believe 
that this is extremely beneficial for the system as a whole.  In a short space of time, China has taken 
on a relevant and positive role in the WTO's different areas of activity, whether in regular tasks or in 
the Doha Round negotiations.  China has also u sed the WTO dispute settlement system more 
frequently. 
265. Notwithstanding these positive elements, there are several areas where Ch ina needs to pursue 
its reform process.  The changes introduced to enhanc e transparency are to be welcomed.  We believe 
that this trend should continue because, as we  know full well, the multilateral system relies on 
observance of this principle. 
266. Export restraint policies are another such area a nd they generate a certain amount of friction 
with the multilateral trading system.  The Secretaria t has provided us with a very good analysis of the 
possible economic effects or distortions that expor t restraints can have on various markets.  My 
delegation is following developments in this policy with much interest, particularly in terms of its 
systemic implications. WT/TPR/M/230 
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  267. Traditionally, our bilateral trade relations have been very close, and have grown even closer 
since the entry into force in October 2006 of the Free Trade Agreement between Chile and China.  
The depth of the liberalization of merchandise trade was viewed positively by the WTO Membership when that agreement was examined  in the Committee on Regional Tr ade Agreements.  Extension of 
the agreement has continued in order to cover ot her sectors of the economy.  In April 2008, the 
Supplement Agreement on Trade in Services was signed, and the investment negotiations are 
currently in their final stages. 
268. The way bilateral trade figures have evolved, pa rticularly in the last four years, speaks 
eloquently of China's importance for our country.  In  2008, China became the main destination for our 
exports, accounting for 17 per cent of our total shipments abroad.  Furthermore, in the period 
2006-2008 our exports increased by 93.4 per cent and trad e flows by 94 per cent.  In global terms, in 
the first half of 2009 China became Chile's main trading partner. 
ARGENTINA 
 
269. With regard to the content of the Report, we would like to refer to the sustained growth in 
China's economy and foreign trade which posted annual rates of between 6 per cent in 2009 and 
9.6 per cent in 2008.  This sustained growth has c onsolidated China's relevance and importance in the 
global economy and international trade as an emergi ng and obviously relevant economy in the context 
of world trade.  In 2010 China has become the world's main exporter, a reflection of its robust 
economic development. 
270. It is in this context, as the Secretariat Report points out in Chapter II, that China has continued 
to intensify its trade relations by means of b ilateral and regional agreem ents, involving further 
expansion and geographical diversif ication of its exports and imports.  The growing number of such 
agreements has prompted Argentina to submit a question about feasibility studies on free trade 
agreements with a number of countries. 
271. As for other matters, we would draw atten tion to the active role played by China in 
multilateral negotiations and in th e Doha Round and its very active contribution to the quest for a 
balanced outcome to the Round that genuinely furt hers the development of the developing countries. 
272. The Secretariat Report enabled us to identify topics of particular interest to us and we raised 
them in the questions submitted by Argentina.  Turn ing first to the Secretariat Report's reference to 
measures taken by the Chinese authorities to liberaliz e or facilitate FDI, we would appreciate further 
details of the Catalogue of Priority Industries for Foreign Investment, with an indication of the sectors 
involved.  We would also like information on the new laws and regul ations on FDI and the 
preferential measures being implemented by the Chinese authorities. 
273. With regard to trade policies, particularly as they concern imports, there are certain issues for 
which information and clarification from the delega tion of China are needed, such as the introduction 
of provisional tariffs;  the complexity of preferentia l rules of origins;  tariff exemptions and reductions 
applied to goods imported by designated enterprises;  standards and other technical requirements, for 
which further information on how they are drawn up would be appreciated.  We specifically draw 
attention to the new Food Safety Law, implementation of which has caused difficulties for the entry of 
imports from Argentina such as soy oil. 
274. The Government Report refers to far-reaching ch anges in China's economy, such as the rapid 
industrialization and urbanization a nd major investment in infrastruct ure mentioned in paragraphs 12 
and 14.  Reforms of this kind are still governed by state policy, such as those referred to in section (4) 
of the report:  reform of the administrative system, reform in the taxation system, reform of state-owned enterprises, etc.  Argentina submitte d questions on these matters, seeking information  WT/TPR/M/230 
 Page 39 
 
 
  about the system of indices for clean production assessment in eleven industries, and China's 
approach to achieving balanced development of im ports and exports, menti oned in paragraph 71 of 
the Government Report. 
275. The Argentine Republic and the People's Republic  of China established diplomatic relations 
in 1972 and share a full and wide-ranging bilatera l agenda covering political, economic, cultural, 
scientific and technological matters. 
276. Bilateral trade in 2009 amounted to 8.3 billi on dollars:  Argentina's exports to China 
amounted to more than 3.6 billion dollars in 2009, and imports from China reached 4.7 billion dollars.  
Despite the contraction in world trade in 2009 ca used by the financial crisis, Argentine exports 
increased by 43 per cent and its imports by 32 per cent over 2008. 
277. Argentina's main export to China was soy oil, which accounted for 36 per cent of total exports 
and amounted to more than 1.3 billion dollars.  Soy beans came second, with a further 33 per cent.  
Other major exports were sunflower oil, copper or e, chemical wood pulp and hides.  Imports from 
China included machinery, glyphosate, motorcycles and electronic goods. 
278. We believe that our two countries are in a positio n to increase and diversify our bilateral trade 
far more.  Current figures show a sizable deficit for Argentina, of over 1.1 billion, and a concentration 
of Argentine exports in a limited number of primar y products.  We can accordingly work together to 
improve these figures and expand our export offer. 
COSTA RICA 
279. The ties between Costa Rica and China have grow n significantly closer and stronger in recent 
years.  In particular, trade relations between the two countries have been consolidated through a 
process culminating with the signing on 8 April l ast of a Free Trade Agreement between Costa Rica 
and China.  Trade between our countries, virtually non-existent in the early nineties, has grown at an average annual rate of 40 per cent in the last 15 year s.  Currently, China is Costa Rica's main trading 
partner in Asia. 
280. My delegation wishes to congratulate China on the success of its strategy - which has 
involved major efforts to liberalize its trade and investment regimes - to achieve significant and 
sustained economic growth.  This strategy has helped  China to increase its per capita GDP fifteen-fold 
in the last three decades.  Although the Chinese econo my was not immune to the effects of the global 
economic recession, witness the sharp decline in its  GDP in real terms at the end of 2008, it is 
important to note that, as the Secretariat Repor t states, China refrained on the whole from a 
protectionist response to the effects of the global economic crisis. 
281. Costa Rica applauds China's commitment to th e multilateral trading system and appreciates 
the fact that China has continued to take step s to enhance the transparency of its trade and 
trade-related policies, practices and measures.  The delegation of Costa Rica also acknowledges the 
Chinese Government's wish to examine the possibility  of applying domestic measures other than trade 
measures in order to obtain its objectives of conserving natural resources, saving energy and 
protecting the environment. 
COLOMBIA 
 
282. We note with satisfaction that since the last review of its trade policy in 2008, China has 
pursued the gradual liberalization of its trade and investment regime in the interests of greater 
economic and social development.  Like other Me mbers, Colombia is opposed to protectionist 
measures as a response to the global economic recess ion and welcomes the fact that China remains a WT/TPR/M/230 
Page 40  
 
  dynamic Member of the WTO and a firm supporter of  the multilateral trading system and regional and 
bilateral agreements, and that it continues to  participate in the Doha Round negotiations. 
283. It should be noted that in response to the cr isis, China opted for expansionist fiscal and 
monetary policies and introduced a package of econo mic incentives to offset th e decline in external 
demand and to encourage domestic demand.  At firs t sight, the results are satisfactory and Colombia 
welcomes this fact:  in 2009, real GDP growth rec overed, posting an increase of 8.7%;  China became 
the world's main exporter, with export revenue of ju st over 1.2 trillion dollars, and has maintained its 
position as second-largest importer in the world, w ith purchases of 1 trillion dollars, after the United 
States. 
284. In the last review, it was pointed out that Ch ina needed to adopt a more flexible foreign 
exchange regime.  We note with satisfaction that it has made significant progress in this matter and 
we encourage it to continue to resort increasingly to market forces as a means of determining the 
exchange rate.  We also encourage China in its e fforts to reform its tax system, improve its legal 
framework for the protection of intellectual property ri ghts, alleviate its restrictions on FDI in certain 
services and gradually develop its securities market.  All this will facilitate trade and trade-related 
activities.  It is also important to note that China has improved its position in the competitiveness 
index, now ranking 29
th out of 132 countries, and also in information technology, where it ranks 
37th out of 133. 
285. Nevertheless, there are a number of areas that require particular attention on the part of the 
Chinese authorities:  transparency in governme nt policies and measures, where it ranks 38th in a list of 
48 countries;  increased payment of company dividends and public sector reform, including 
state-owned enterprises.  Other areas which s how progress but where there is still room for 
improvement are:  environmenta l performance, where it ranks 121st out of 163 and ease of doing 
business, where it ranks 89th out of 183. 
286. China continues to apply non-tariff border measu res, such as import and export licensing and 
state trading in order to guide the allocation of re sources.  Serious improvement is needed in these 
areas.  Nevertheless, we note that the downward tr end in tariffs has continued, as has the Customs 
transit reform, and that reforms of the tax system  have been undertaken and a comprehensive law on 
competition has been implemented. 
287. Although China has stepped up efforts to conc lude bilateral and regional free trade 
agreements, the preferential margins it provides ar e still small and trade with FTA partners still 
accounts for a minor share of its total trade.  Chin a's average applied MFN tariff was 9.5 per cent in 
2009, slightly lower than the 9.7 per cent recorded in 2007.  It is also to be noted that China's export 
barriers have not been falling at the same pace as its import barriers, and that China still applies 
prohibitions, licensing, quotas, taxes and less-than-full VAT rebates, to manage resource and energy conservation. 
288. Bilateral trade between Colombia and China has maintained an upward trend in the last few 
years, attaining 4.991 billion dollars in 2008.  In  2009, Colombia's exports to China recorded an 
increase of 114% over 2008, reaching 950 million dolla rs.  Imports likewise grew in 2009, attaining 
3.750 billion dollars, with a deficit for Colombia. 
289. Unfortunately, there is not the same dynamism in bilateral investment fl ows.  China is still 
one of the major recipients of FDI in the world, wh ile also becoming a major source of FDI.  In 2008, 
China ranked 13
th in the world, with outward investment  amounting to 52 billion dollars.  According 
to the statistics, Chinese investme nt in Colombia amounted to onl y 300,000 dollars in 2009 and a total 
since 2002 of 8.4 million dollars.  There is no Colombian investment in China.  WT/TPR/M/230 
 Page 41 
 
 
  290. China's performance is a good example of how sound management of economic policy can 
produce satisfactory results and augurs well for the future. 
PERU 
 
291. Bilateral ties between our countries, embodied in  the Friendship, Trade and Navigation Treaty 
of 1876, have not ceased growing since 1849 when th e first wave of official migration from China 
arrived in Peru, representing one of the first contacts Chinese migrants had with the Latin American region.  Thanks to them, the presence and input  of hard-working Chinese immigrants are to be 
witnessed in the many contributions that they have  made and continue to make to the forming of 
Peruvian nationality. 
292. Our countries have developed significant commerc ial ties and with the growth of Peruvian 
exports to the Chinese market in recent years, Chin a has become our second trading partner.  Peruvian 
exports in 2009 amounted to a record 4.073 billion do llars, doubling in value in only four years, while 
imports from China amounted to 3.063 billion dolla rs.  The bilateral trade balance for 2009 thus 
resulted in a surplus for Peru of slightly over 1 bi llion dollars, with total trade amounting to more than 
7 billion. 
293. China's importance to Peru in the area of i nvestment must also be noted, since with 
committed investment of more than 1.2 billion dolla rs and FDI stock of some 122 million dollars in 
2009, it is the largest Asian investor in Peru.  I should also point out that China is to carry out new large-scale projects in Peru, particularly in the me tals sector, including copper and gold.  Furthermore, 
Peruvian investors are arriving on the Chinese market  and only recently, a major Peruvian bank set up 
an office in Shanghai to facilitate the growing ec onomic and financial ties between our countries, and 
a big Peruvian firm has announced its intentio n of establishing a beverage processing plant in 
Guangzhou this year.  The framework for these importa nt undertakings is the Bilateral Agreement on 
the Promotion and Protection of Investment, in force since 1995. 
294. With the growing commercial and financial ti es and the complementarity of the productive 
sectors in our two countries, Peru now sees China as a strategic ally, and last March our Governments 
signed and launched a very broad fr ee trade agreement with provisions  on trade in goods and services, 
and investment, which was notified to the WTO on 3 Ma rch last.  For Peru, this agreement, together 
with another on customs cooperation, affords an opportunity to lay down clear ground rules with a transparent and predictable framework to allow the development of orderly bilateral trade. 
295. For the foregoing reasons, this review of China' s trade policy is particularly important for my 
country.  It enables us to analyse and assess achie vements to be commended, such as the importance 
worldwide of China's large market, GDP growth at an annual rate of almost 10 per cent in the last 
two decades, one of the highest in the world which,  despite the economic crisis, attained 8.7 per cent 
in 2009, and the fact that accord ing to OECD statistics, China has become the world's largest 
exporter.  The present review also serves as a foru m in which to envisage the possibility that China 
might remedy some of the imbalances in its  economic and development model which are 
macroeconomic and structural in nature. 
296. Peru appreciates China's efforts to carry out l ong-term structural reforms to strengthen its 
social security network, keep domestic savings at suitable levels while continuing with strong 
incentives to domestic consumption, diversify its eco nomic structure and promote full development of 
its capital market.  We also believe that more ba lanced demand from China and further liberalization 
of its trade policies will stimulate growth and ec onomic recovery worldwide in circumstances which 
are particularly complex. WT/TPR/M/230 
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  297. In the context of this review our delegation, like most others here present, has submitted some 
questions on levels of domestic support to agricult ure referred to in China's report to this body.  We 
also submitted questions on the requirements se t out in the Catalogue of Products Subject to 
Compulsory Certification, and on matters relating to  rules of origin, government procurement, the 
Customs transit reform, technical standards and maritime transport services. 
MALAYSIA 
298. China and Malaysia have a long history of trade which culminated during the 13
th century, 
where in the Malay history it was recorded that to strengthen trade ties, China had sent an envoy 
consisting of 500 officials and a princess to marry the ruling Sultan at that time. 
299. Some 600 years later, today, China is among one of  Malaysia’s largest trading partner.  Total 
trade recorded in 2009 was 2 billion.  In the first quarter of 2010, total trade with China amounted to 
US$10.6 billion compared to US$6.8 billion during the corresponding period in 2009.  China is also 
our second largest export destination, in 2009, total export was valued at US$19.1 billion and in the 
same year total imports was US$17.2 billion.  
300. In terms of investment, Chinese investment in Malaysia amounted to US$112.2 million 
during 2006-09.  During the same period, Malaysia’s investment in China was US$1.4 billion. 
301. Malaysia acknowledges China’s effort since 1978 in  substantially liberalizing its international 
trade and investment regime as noted  in the Secretariat Report.  Coupled with this fact, it is not 
surprising that China’s economic annual growth has c onsistently in the last three decades averaged at 
about 10%. 
302. We wish to applaud China for resisting prot ectionist measures during the recent financial 
crisis, and in fact had implemented measures that was facilitative to international trade. 
303. We note with great interest that China still main tains a high saving rate since the last TPR in 
2008, these are one of the challenges that China w ould need to shift from an investment-driven 
economy to a consumption-driven economy.  Thus, we  applaud China’s efforts in promoting domestic 
demand. 
304. Since China’s accession to the WTO in 2001,  their membership has strengthened the 
Organization specifically and the world trading system in general.  We are of the view that China has 
carried out its responsibility in assuming a leader ship role the WTO and in the world economy. 
SRI LANKA 
305. Although the global financial and economic crises coupled with unprecedented natural 
disasters, have negatively affected the Chinese econom y, China was able to continue its reforms and 
program of liberalization without resorting to any new protectionist measures.  China has maintained 
its long-term strategy of gradually opening up its economy to international trade and foreign direct 
investment.  It seems that China was able to addr ess the adverse impacts of the global financial crisis 
effectively by relying mainly on expanding do mestic demand, adjusting economic structures, 
advancing reforms and increasing the benefits to, and welfare of their people.  Consequent to these 
economic policies, it appears the growth has reboun ded in 2009 with the achievement of real GDP 
growth of 8.7%.  At present, as reported, China is the world’s largest exporter and the second largest 
importer. 
306. The bilateral trade relations between Sri Lanka and China have been longstanding and can be 
traced back several centuries.  The period be ginning from 1952 opened a new chapter in trade  WT/TPR/M/230 
 Page 43 
 
 
  relations between the two countries with the signing of a trade agreement relating to barter trade on 
rubber and rice.  At present, the official inte raction on trade and economic cooperation are being 
institutionalized through the Sri Lanka-China Jo int Committee on Trade and Economic Cooperation, 
the fourth session of which was held in April 2008 , in Beijing.  In addition, the Sri Lanka-China 
Business Cooperation Council was established with a vi ew to further enhancing bilateral trade and 
investment trade relations between the two countries through the private sector. 
307. China is fast becoming an important trade part ner for Sri Lanka in enhancing the total trade 
turnover between the two countries from US $270 million in 2002 to US$950 million in 2009.  
Although Sri Lanka’s exports to China are still at the lower level, they have increased from US$11 
million in 2002 to US$60 million in 2009.  In the s phere of Chinese investment in Sri Lanka, there are 
at present 28 investment projects of substantial capital outlay in the field of food processing, rubber, 
manufacture of bicycles, deep-sea fishing, apparel and textile products.  An investment facilitation 
agreement between the China Development Bank a nd the Central Bank of Sri Lanka is also in 
operation. 
308. In the field of development cooperation, Chin a has become the major bilateral development 
partner to Sri Lanka providing bo th grants and concessionary fina nces in order to develop major 
infrastructural projects such as ports, a new interna tional airport, power plants, roads network and the 
railway system.  These projects come under the ambit of the Aid for Trade Programme. 
309. We welcome the relaxation of certain restrictions in the services sector notable the tourism 
sector, which would enable Members who have conc lude MoUS for approved destination status 
(ADS) to promote group tours by Chinese citizens.  In this regard my delegation would like to learn 
more about the operational aspect of this mechanism. 
310. In the sphere of regional trading arrangements,  Sri Lanka and China are members of the Asia-
Pacific Trade Agreement (APTA) with other Memb ers such as Bangladesh, India, the Republic of 
Korea, and Laos People’s Democratic Republic.  Sr i Lanka considers APTA an important preferential 
trading instrument under which Sri Lanka has benef ited through enhanced exports, which have grown 
by 30% in 2009, when compared to exports in 2007.  Remarkably, exports to China under the 
Agreement have increased by 53% in 2009. 
311. During our regional trade forum of APTA, Chin a and other major trading partners have 
recognized that the resources-deficient trade de pendent net-food importing countries like Sri Lanka 
should be provided with more relaxed flexible marg in of preferences and rules of origin to enhance 
the trading capacity, and has responded positively to our concerns. 
312. With regard to the DDA, we share fully with  the Chine contention that the negotiations 
should go forward with a view to achieving a co mprehensive and balanced  outcome which will 
benefit all Members on the basis of three principles,  namely to respect the mandate for development, 
base the negotiations on the agriculture and NAMA Ch airs’ texts of 2008, and the negotiation process 
should adhere to the principles of inclusiveness and transparency. 
BOLIVARIAN REPUBLIC OF VENEZUELA 
 
313. Venezuela appreciates the Chinese Government's efforts in preparing this exercise which has 
brought the Members of the WTO together.  It also commends the transparency shown in the 
treatment of political, economic and trade issues.  We view this report as a genuine message of 
optimism at a time of recession, discouragement and frustration for the world of trade and our 
economies.  Nowadays it is impossible to understa nd international trade, finance or virtually any 
aspect of our globalized world without knowing what is happening in and with China as an essential 
part of the engine that drives the world. WT/TPR/M/230 
Page 44  
 
  314. In 2009, China achieved robust growth of 8 per cent thanks to the rapid stabilization measures 
applied by its Government in the midst of a 12 to 15 per cent decline in international trade, while on 
the social front, its progress has been visible in th e reduction of poverty as part of its commitment to 
the Millennium Goals. 
315. For us it is very important to attend this revi ew, since 61 years after China's Revolution, the 
positive effects are clear.  Venezuela, currently engaged in changing the structures of its 
socio-economic model, has sought diversification in  its international relati ons, establishing bilateral 
agreements with China which are highly relevant today. 
316. The Strategic Alliance for Shar ed Development, which has gui ded bilateral relations since 
2001, was originally based on two pillars:  ener gy and agriculture.  Since then, cooperation has 
deepened and grown more varied and today covers  areas such as trade, technology transfer and 
infrastructure development among others. 
317. As regards trade proper, in 2008 trade between China and Venezuela saw growth of 67% over 
the previous year, total bilateral trade amountin g to 9.664 billion dollars, of which 3.111 billion 
dollars corresponded to China's exports to Venezuel a and 6.552 billion dollars, to Venezuela's exports 
to China. 
318. In 2009, in the midst of the worst phase of the global economic crisis, trade between the 
two countries amounted to 7.141 billion dollars, with  China's exports to Ve nezuela accounting for 
2.811 billion dollars, and Venezuela's expor ts to China for 4.33 billion dollars. 
319. Furthermore, China and Venezuela share much the same views on most of the trade issues 
under negotiation in the Doha R ound, assigning priority to the development dimension of the 
negotiations, in order to reach a just and ba lanced outcome in keeping with the mandate. 
320. Lastly, Venezuela acknowledges that China, as a developing country, has made essential 
contributions to the growth of other developing co untries through trade, investment and technology 
transfer.  We therefore wish to recommend that  the Chinese authorities continue to promote 
south-south relations in this way, and also  to ask what is planned in this regard. 
GUATEMALA 
 
321. The WTO Secretariat Report states that Ch ina overtook Germany as the world's largest 
exporter in terms of the trade volume accumulated so far in the first half of the year.  If to this tremendous surge in China's economy we were to a dd other of the country's assets such as size of 
territory, demography, cultural diversity and wealth of history and traditions, we could spend days and 
days talking of China. 
322. For the multilateral trading system, the presence of a vigorous trading partner such as China 
has without doubt brought momentum and balance to  the trade negotiations.  Indeed, China plays an 
active and decisive role in the pursuit of the objectiv es established by the developing countries in this 
negotiating round. 
323. Furthermore, we know that as China joins the ranks of the major players in the multilateral 
trading system, it is bound to meet with growing ch allenges.  The challenges are the more difficult as 
China is a developing country, and they arise in areas such as the diversification of its economic 
structure and the improvement of its capital market.  WT/TPR/M/230 
 Page 45 
 
 
  324. With these challenges in mind, we take the opportu nity afforded by this review to recognize 
China's efforts gradually to liberalize its inte rnational trade and investment regime, and to 
acknowledge its commitment to the multilateral trading system. 
325. One noteworthy example of China's commitment to strengthening the multilateral trade 
system is without doubt the prompt attention it pa id to resolving the claims submitted by Guatemala 
in the dispute China - Grants, Loans and Other Incentives (DS390) . 
NIGERIA 
326. Nigeria is pleased to note that since the last  Trade Policy Review of China in 2008, the 
country has continued with the progressive liberali zation of its international trade and investment 
regime.  As pointed out in the Secretariat Re port, China’s dependence on export-led growth has 
exposed and increased its vulnerability to the effects of the global recession that began in late 2008.  
Similarly, China’s continued dependence on manufact ured exports has also exposed it to trade 
frictions with trading partners.  Nevertheless, it is  worthy to note that China has since 1978 continued 
to pursue a strategy of gradual transition from a cen trally planned to a market-oriented economy, with 
an open door policy that has involved substantial libe ralization of its trade and investment regime.  
Indeed, Nigeria is one of the first countries that r ecognized these efforts and accorded China a market 
economy status.  Overall, China has emerged as a global economic power, and has been playing a very important role in the world economy.  Its ec onomy is the third largest in the world.  China’s 
ranking as the largest exporter and second largest im porter of goods is also clear evidence of this 
impressive record;  which should demonstrate to other developing countries that properly managed 
and sequenced liberalization can and does contribute positively to economic growth and development. 
327. Nigeria has observed that there has been a c ontinued improvement in China’s legislative 
framework and the enforcement of IPR protection, including the promotion of innovation as a development strategy.  We encourage China to con tinue along this path.  However, we are concerned 
that China still unabatedly uses various non-tari ff border measures such as import and export 
licensing as well as state trading to “guide” the allocation of resources.  Stringent qualification 
requirements also remain in place in the banking sect or.  Nigeria would like to hear how China is 
taking steps to ameliorate the negative impact of  these measures on the trade and economic interests 
of its developing country trading partners, in particular. 
328. There is no doubt that the current world economic slowdown has presented China with new 
challenges.  Nonetheless, Nigeria is pleased to note that the crisis has rath er reinforced China’s 
intention to undertake more long-term structural  reforms to diversify its economy and promote 
expansion in agriculture and some services sectors.   We, therefore, call on Members to provide the 
requisite impetus towards the early conclusion of  the Doha Round negotiations, which should assist 
China and other developing countries particularly  the LDCs mitigate the negative impact of the 
current global economic and financia l crisis.  In that regard, Nigeria would like to commend China for 
ensuring that the multilateral trading system remains at  the core of its trade regime.  As an important 
Member of the WTO, we also like to acknowledge the tremendous contribution of China to the DDA, 
including the active participation of Ambassador Sun and his team in various developing country 
groupings in the WTO. 
329. At the bilateral level, it is necessary to recall that Nigeria and China established diplomatic 
relations on 10 February 1971.  Since then, the two countries have enjoyed a smooth and steady 
growth in their bilateral relations through high exch ange of visits, trade and investment and strategic 
cooperation.  Both countries have agreed to a four -point plan to improve bilateral relations, a key 
element of which is the expansion of trade and investments in agriculture, telecommunications, 
energy and infrastructural development.  Nigeria and China have signed a number of agreements on 
trade;  economic and technical cooperation;  scientif ic and technological cooperation:  investment WT/TPR/M/230 
Page 46  
 
  promotion and protection;  avoidance of double ta xation;  and the prevention of fiscal evasion with 
respect to taxes on income.  In 2002, the two G overnments also signed agreements on consular 
affairs;  cooperation on strengthe ning management of narcotic dr ugs, psychotropic substances and 
diversion of precursor chemi cal;  and tourism cooperation. 
330. Although Sino-Nigerian relations have clearly w itnessed a significant all-round development, 
particularly based on the consensus reached on build ing a strategic partnership with mutual political 
trust, economic reciprocity and mutual assistance in international affairs, a sticking point remains the 
“flooding” of the Nigerian market with cheap substandard goods.  This  practice has adversely affected 
the performance of domestic industries, particularly the textile sector where 65 textile mills have been 
closed and about 150,000 workers have been laid-off over the course of a decade.  Nigeria, therefore, 
would like to hear how China intends to or has been addressing this concer n taking into account the 
present bilateral efforts between the two countries, as well as China’s overall improvements in IPRs to 
combat the global menace of c ounterfeiting and pirated goods. 
MACAO, CHINA 
331. What has been achieved by Chin a over the past years is laudable, especially in the face of 
challenges and pressures brought about by the global financial crisis and the multiple tragic natural 
catastrophes that presented themselves during the p ast two years.  The macroeconomic indicators 
demonstrated that China was able to curb and reve rse the declining trend in outputs during this period 
and, by the end of 2009, reported resilient out put growth, improved em ployment conditions, and 
growing diversified exports.  Infla tion and interest rates have also been carefully monitored and kept 
in check. 
332. The evolvement of China in both the social and economic areas has laid solid groundwork for 
China to contribute to the world recovery from the current crisis.  Domestically, this has played a 
crucial role in continuously improving the living standards and social security as well as reducing 
poverty in its population.  Macao, China appreciates th e Chinese Government’s efforts at this critical 
juncture. 
333. At the international level, China has undert aken a wide range of commitments upon its 
accession to the WTO.  Throughout the years, China’s effort to continue fulfilling its obligations are 
witnessed and documented in the disclosure and anal ysis conducted during its Trade Policy Reviews.  
In fact, the gradual liberalization in both its goods and services sectors as well as its will to further 
opening up to the rest of the world have demonstrat ed China’s unwavering support to the multilateral 
trading system.  Considering a complement to th e multilateral trading regime, China continued to 
intensify its pursuit of bilateral and regional trade agreements with its trading partners.  During the 
period under review, several bilateral and regional agre ements have been signed or entered into force, 
which cover both trade in goods and services as we ll as investments.  Under the framework of the 
Closer Economic Partnership Arrangements, Chin a and Macao, China signed the Supplement V and 
VI of the Arrangements in 2008 and 2009, respectiv ely, further strengthening the cooperation in, inter 
alia, the areas of trade promotions and investments. 
334. We would like to express our appreciation to China on taking up an active role in the WTO, 
including showing its strong support for the DDA a nd its productive and cons tructive involvement in 
the current round of negotiations.  Together, we shar e the keen interest in upholding and strengthening 
the WTO system, as well as a common objective of achieving a comprehensive and balanced outcome 
of the  Doha Round Negotiations that would bring the benefits of increased trade liberalization to all.  WT/TPR/M/230 
 Page 47 
 
 
  DOMINICAN REPUBLIC 
 
335. Since the last review of its trade policy in 2008, China has continued to meet the 
WTO obligations undertaken since its accession in 2001, extending the liberalization of its trade and 
investment regimes by carrying out new structural reforms that will give added momentum to its 
economy.  Also to be commended is the fact that during the recent world crisis, China kept faith with 
those obligations and refrained from introducing any measures that would affect the flow of 
international trade. 
336. On the contrary, it continued to reduce its aver age applied MFN tariff, lowering it to 9.5 per 
cent in 2009, and in its legislation introduced re forms to enhance transparency in the release of 
government information, simplify and strengthen its ta x system, improve allocation of resources in the 
economy and reduce costs by unifying enterprise in come tax, phasing out tax incentives for foreign 
invested enterprises and transforming VAT from a pr oduction-based to a consumption-based tax.  It 
also introduced reforms to enhance competitiven ess and promote productivity by enacting an 
Anti-Monopoly Law, strengthening intellectual property rights, stimulating innovation and 
technological development through the implementati on of a new Patent Law and the introduction of 
more liberal regulations on foreign investment in the telecommunication and tourism sectors, on 
foreign exchange control, on the administration a nd supervision of securities firms, strengthening 
projection of consumer rights, and on co ntracting foreign engineering projects. 
337. This gradual process of structural reform a nd market liberalization continues to provide 
strong momentum for rapid modernization of the Ch inese economy thanks to the growing share of its 
foreign trade - China overtook Germany in January la st as the world's main exporter and has become 
the second largest importer of goods and the fourth of  services - and thanks to the technology transfers 
brought by enormous foreign investments, China be ing the world's third largest recipient of FDI. 
338. The economy's response to these in centives has been most impressiv e, with per capita income 
in dollar terms increasing fifteen-fold in the last 30 years, lifting a fifth of the population out of 
poverty.  Even more impressive is the way the economy performed during the recent global crisis, 
with steady quarterly growth of over 6 per cent rising by the end of 2009 to a robust 8.7 per cent.  This growth was largely driven (91 per cent) by expenditure on domestic investment and also by 
growth in domestic demand almost 50 per cent higher than GDP, easily offsetting the decline in international trade, whose share in GDP fell fro m 60 per cent in 2007 to 44 per cent in 2009. 
339. The ratio of China's balance of payments cu rrent account surplus to GDP also fell, by 
5 percentage points, a drop of nearly 50 per cent.  This is also indicative of a reduction in the gap 
between domestic investment and dom estic savings.  This drop in the surplus to GDP ratio, evident in 
the last two years, could be a reflection not only of the effects of the crisis but also of the real appreciation of the RMB - 21.4 per cent in relation to the dollar and 13.6 per cent in relation to the 
yen - between 2005 when the exchange rate re form was introduced and 2008, and although it 
remained relatively stable vis-à-vis  the euro during that period, in the second quarter of this year it has 
appreciated sharply in relation both to the euro and to the pound sterling.  In any event, the appreciation of a currency does not always imply a loss of competitiveness in the economy and a 
consequent decline in exports.  In Germany and Japan, for example, growth  has been driven by 
exports notwithstanding the appreciation of the two currencies. 
340. The promotion of investment and exports in a country depends on a combination of factors 
which are ultimately more important than exchan ge rate movements, for example stability and 
balance in macroeconomic policy with lower levels  of foreign debt, warding off uncertainty about 
sudden changes in tax policy, transparent and pr edictable legal systems that build trust among 
investors, high quality technology for product pro cessing and marketing, diversification of exports 
and markets, and domestic market s flexible enough to adapt rapidl y to changes in international WT/TPR/M/230 
Page 48  
 
  markets and redistribute resources.  The cont inuing expansion of th e global economy and 
international trade, and more particularly the certa inty and stability brought to price markets by the 
gold standard and the fixed exchange rates that pr evailed in the quarter century following Bretton 
Woods, are eloquent proof that more important factor s than foreign exchange rates are at play in 
promoting exports and making an economy more competitive.  Unquestionably, in the present 
situation, and in order to sustain balanced and ev en growth in the global economy and international 
trade in the medium and long term, the main econo mies have to play their part, and this includes 
China, given its growing weight and leading role in the global economy. 
341. The enormous accumulation of overseas assets and the rapid response of China's economy to 
the incentives to domestic demand, facilitate - and demonstrate the feasibility of - gradual promotion 
of greater purchasing power with an increase in av erage income, mainly among the rural population, 
which accounts for 40 per cent of total employment, in  order to close the gap between rural and urban 
income and lift 150 million people out of poverty by  applying policies for agricultural reform, for 
more flexible domestic price markets, including the money market so as to reduce costs and improve 
allocation of resources, and for reforms in the capita l market and the services sector to absorb labour, 
and in the social security system with more spe nding on the social sectors.  The gradual appreciation 
of the RMB plays an important role in easing the inflationary pressures that may accompany increased 
domestic expenditure, although maintaining China as a driving force in world trade will continue to 
be important to the growth of the gl obal economy and international trade. 
342. We urge the Chinese authorities to be resolute in applying the programme set out in their 
report which is headed in the right direction.  One encouraging indicator of the effectiveness of these 
policies is that for the first time since 1987 retail sal es grew at a faster pace  in rural areas than in 
cities. 
ZIMBABWE 
343. Zimbabwe cherishes the cordial relations that exist between our two countries which have 
enhanced the China-Zimbabwe cooperation in various sectors of our economies as well as at the 
social level.  This is so in spite  of the fact that China has also had to deal with the problems arising 
from natural disasters and the impact of the global economic and financial crises on that country’s economy and development.  We note with appreciati on that China, a very active Member of the WTO 
and the G33 and the G20 in this Organization, is committed to the consolida tion and development of 
the multilateral trading system.  China's leading aspirations are most valued in these forums. 
344. We applaud China’s development policy, guide d by the strategic concept of Scientific 
Development and putting the interests of the people first, with a view to, inter alia , increase benefits 
and welfare of the people.  The programmes put in place in 2009 by the Government, which include 
increased central government investment in housing projects for low-income urban residents, rural 
development and major infrastructure, energy conservation and emission reduction, as well as 
earthquake recovery projects bear testimony to  this people-oriented development policy. 
345. Despite having been exposed to the adverse effects of the global economic recession the 
country achieved a real GDP growth of 8.7% in  2009 as a result of the policies undertaken by the 
Government.  We note with admiration that China has made significant progress in the export sector, leading it to become the world’s largest exporter economy. 
346. China has become a major partner for South- South Cooperation, with the Forum on China-
Africa Cooperation now an important annual event.  The near operational status of the China funded 
African Development Fund is again testimony to Ch ina’s long-term commitment to Africa’s future.  
The technical assistance and investment programm es provided by China have had positive impact on  WT/TPR/M/230 
 Page 49 
 
 
  the promotion of social and economic infrastructur e development to many African countries including 
Zimbabwe. 
347. We wish China success in implementing the more  long-term structural reforms needed to 
strengthen its economy and societal well being.  Many developing countries like mine will be 
watching closely and emulating what China has done to ach ieve so much in such a short spell of time.   
BARBADOS 
348. Since its last review in 2008, the global econom ic recession has been the formidable backdrop 
against which China has continued its resolute acti ons towards reform of its economic structure and 
liberalisation of its international trade and inv estment regime.  We also congratulate China on 
achieving a remarkable turnaround in the economy over the course of 2009. 
349. It is within the framework of China’s multilate ral outlook, that the Government efforts to 
stem the effects of the crisis through expansiona ry fiscal and monetary policies to drive domestic 
demand took effect. The introduction of a tempor ary economic stimulus package to stabilise the 
national economy, has facilitated emerging signs of economic recovery which have been welcomed 
globally.   
350. Even though we are a small country, Barbados, as a country with a fixed exchange rate which 
had to face the uncertainties of trade liberalisati on, understands the care with which liberalisation 
initiatives are approached and the anxieties about unforeseen repercussions - even for large countries 
like China. However the tremendous sustained stride s which China has made in the last two decades 
and its almost unparalleled competitiveness in many ar eas, must by now have helped to allay many of 
its concerns about liberalisation and its success abro ad should augur well for its future approaches. 
351. Both the Secretariat and Government Reports highlig ht the role of the crisis in reinforcing the 
Government’s intention for long term economic structural reforms, and stress a number of measures 
already underway.  In particular we recognise th e continuing work on Intellectual Property and the 
consolidation of the legal framework for the adva ncement of the services and investment regime, 
which among other objectives, seeks to encourag e the development of Small and Medium Sized 
Enterprises (SMEs).  
352. During the review period, we have also seen Ch ina seek to complement its multilateral level 
engagement through the development of bilateral and regional economic and tr ade relations with its 
neighbors and other trading partners of interest. Developing countries such as ours have benefitted 
from the increasing interest of China in the developing world, particularly in the area of infrastructure. 
353. Within the DDA negotiations, Barbados enjoys a constructive working relationship with the 
Chinese delegation and values the active and important  role it plays, particularly in its support of 
advancing developmental interest s for developing countries, including Small, Vulnerable Economies 
(SVEs). Barbados further appreciates China’s involve ment in the Aid for Trade framework, including 
through participation in regional reviews and cont ribution to the DDA global trust fund.  China’s 
participation in this important mechanism as well as its wider South-South outreach, reflect a vital 
component of facilitating the development cap acity of other developing countries.   
354. China remains an important economic and tradin g partner for Barbados. We are net importers 
by far, but we continue to benefit from economic an d technical cooperation, including in the fields of 
education, investment, human resource manageme nt, and culture among others. With the recent 
establishment of an Embassy in Beijing, Barbados ha s further consolidated a critical element of the 
highly valued bilateral relations that our countries sh are. The fact that our new Ambassador is no less WT/TPR/M/230 
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  than a former Prime Minister of Barbados underlin es the importance we place on our relationship with 
China. 
355. It is apparent that China as a strong global power recognises its increasing responsibilities as a 
major force in sustaining global growth, as evidenced   by its  active role in the WTO. Barbados 
recognises China’s efforts, appreciates the road ahead and wishes China a successful trade policy 
review.  
CUBA 
356. China was a poor country in 1949.  In 1979 it em barked on a programme of reforms designed 
to open up its economy which in a mere 30 years has turned it into the power that we now all acknowledge.  There is no need for figures to illustrate China's economic progress. 
357. China's path to development has been the shor test and most successful of any nation in the 
world.  And in that process it has obeyed the rules of  our system.  Had it not done so, it would have 
been unable to integrate in to world markets as it has. 
358. Accordingly, our first observation is that Ch ina's achievements in terms of the economy and 
trade dispel any doubts as to its observance of the rules of the multilateral trading system. 
359. As a consequence of the global financial crisis  China, like the rest of the world, has had 
serious difficulties with both foreign trade and foreig n direct investment.  However, its economy has 
not ceased to grow at a remarkable pace. 
360. In 2009, China was the world's largest exporter of goods and it is making swift headway in 
developing its provision of services.  In the last two years, it has framed or amended a series of laws, 
regulations and standards on a considerable number of service sectors, and for others it has adopted 
guidelines to speed up development, the aim being to  reduce access thresholds even further, increase 
the share of private and foreign capital and encourage the development of SMEs. 
361. Despite the soaring growth of its economy, between 2006 and 2009 China reduced energy 
consumption by unit of GDP by 14.38 per cent, a result achieved by very few countries.  While 
endeavouring to stabilize the trading environmen t and international investments, the Chinese 
Government is at the same time improving and ch anging its foreign trade model, applying measures 
to restrict the production and consumption of certain  products in the country in order to save energy, 
reduce emissions and protect the environment.  Furt hermore, it monitors the export of products that 
consume a large quantity of energy or have hi gh emission levels, as well as products obtained from 
exhaustible natural resources. 
362. It is obvious that the Chinese Government ha s continued steadfastly to improve trade 
facilitation and investment, focusing both on procedur es to facilitate customs clearance and reduce its 
costs, and on the powers it grants to local author ities for examining and improving foreign investment 
projects. 
363. In addition to all that the People's Republic of  China has achieved, its Government attaches 
great importance to south-south cooperation.  Chin a lends economic and technical assistance to many 
other developing countries to enhance their productiv e capacity and enable them to further their own 
economic and social development.  China's aid in  infrastructure, agriculture and human resource 
training, and the duty-free treatment and exemp tion from debt payment it affords to the least 
developed countries, play a positive role in improvi ng the trading capacity of the other developing 
country Members, particularly the least developed countries.  WT/TPR/M/230 
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  364. China is assisting developing countries in Afri ca and Asia to build agricultural technology 
demonstration centres, and offers training cour ses on these fundamental activities.  Cooperation of 
this kind brings enormous support to  poor countries at a time when the financial and food crises are a 
severe impediment to the attainment of their economic and social objectives. 
365. China will help other developing countries to est ablish, by 2013, more than 100 small clean 
energy projects, such as hydroelectric, solar energy and biogas projects.  China has also provided food 
aid and assistance in health care, education, science  and technology.  In nearly all these areas of 
cooperation Cuba has been a benefi ciary, and hence a witness, of the spirit of cooperation displayed 
by the Chinese people and Government. 
366. Cuba feels bound constantly to acknowledge th e value of its economic and trade relations 
with China.  With its exemplary conduct China h as helped our country, blockaded for 50 years by the 
world's largest economic power, to carry out its econom ic plans and keep up the social indicators for 
which it is renowned. 
367. China's relevance to the WTO, its existence as an economic power and its socialist-oriented 
political, economic and social projects are a source of  hope in that they allow the belief that it is 
possible to build a system of relations among nations that is fairer than the one we now have which 
has polarized wealth and condemned thousands of  millions in the under-developed world to abject 
poverty. 
ZAMBIA 
368. There is no doubt that China’s role in the multila teral trading system is an important anchor 
for growth and development.  My delegation is  pleased to note that China is among the economies 
that have been made an important driver of grow th for the global economy in the aftermath of the 
global financial crisis.   
369. As highlighted in the two Reports submitted by  the WTO Secretariat and the Government of 
the People’s Republic of China, China has had pr omising recovery with positive domestic product 
growth rate of 8.7% in 2009.  China also is a world leader in  export trade and the second largest 
importer in January 2010.  These pos itive trends in global trade are important to countries like Zambia 
which are reliant on export markets for growth. 
370. My delegation also wishes to commend China fo r initiating the preferential market access 
scheme for least developed countries in light to China’s commitment to expand access for products 
originating from LDCs.  For Zambia in particular , China absorbs 6% of Zambia’s exports in 2008 
representing 80% growth since 2004.  China equally remains an important import source for Zambia.  
In 2008 about 4.5% of Zambia’s imports came  from China exhibiting 15% growth since 2004. 
371. China has also continued to be an important partner in the fuel investment and has been 
instrumental in the development of market facility  economic zones in variou s locations in Zambia 
which will attract over US$900 million worth of i nvestment; more than US$500 million has since 
been committed. 
372. China also has assisted Zambia in the construc tion of rural schools and hospitals and has built 
an agriculture demonstration center.  Other areas  of cooperation include the construction of a 
government complex building, the construction of fo od reserve agencies, the construction of national 
stadium, the cooperation in the field of geol ogy, an executive programme on culture to be 
implemented in 2014, and other development projects to be agreed on true consultations between the 
two countries. WT/TPR/M/230 
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  373. China’s investment in Zambia therefore contribute not only to GDP and trade growth, but also 
to implement creation, income gene ration and poverty alleviation.  It  is my delegation’s expectation 
that China will continue to play a leadership role  in the multilateral trading system and contribute to 
the growth and recovery of the global economy.      
VIET NAM 
374. We are happy to note that China has gained  extensive recognition in recent years for its 
outstanding economic performance.  In the time of  global financial crisis and severe economic 
turndown, foreign investment flow in China still atta in a high record in 2009.  Many sectors, such as 
services, textile, telecommunication, advanced technolog y, and bio-energy industries, just to name a 
few, have achieved impressive reco rds.  This fact leads me to be lieve that this TPR session will be 
fruitful. 
375. It is noteworthy that at the moment where ev ery economy in the world has felt the impact of 
the global economic crisis, which has resulted in  a sharp decline in exports, China has made 
tremendous efforts to keep its markets open, that we think as a good response to a back-slipping into 
the trade protectionism.  Such efforts are highly commendable. 
376. Let me turn to the bilateral economic relati onship between Viet Nam and China, which has 
been increasing significantly in recent years.  Si nce 2004, China has consecu tively been our largest 
trading partner.  Despite the recent global economic  downturn, the amount of two-way trade between 
us has been on the upward trend.  In 2009, our exports to China totaled US$4.91 billion, while 
imports from China stood at US$16.4 billion, accounting for the majority of View Nam’s total trade deficit for the year. 
377. In terms of investment by the end of 2009, Chin a has 676 investment projects in Viet Nam.  
These figures speak for themselves:  we should con tinue to step up our efforts in enhancing the 
bilateral trade and cooperation to ev er attain new heights, while at the same time we should do more 
to address the trade gap to create more benefits  for businesses and people of the two countries.  WT/TPR/M/230 
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  V. REPLIES BY THE REPRESENTATIVE OF CHINA AND ADDITIONAL 
COMMENTS 
378. Altogether 37 Members took the floor and/or  raised questions on a number of issues. 
Examples include China’s positions on Doha nego tiations, strategies to boost domestic demand, 
recent changes in foreign investment policies, i ndustrial policy orientatio ns and further market 
openings for services sectors.  While you may find al l the answers in our written responses, I will still 
try to cover some of them with additional inform ation today. I have grouped them into three broad 
categories, namely macroeconomic policy and e nvironment; trade and investment regimes and 
practices; and sectoral polices.  
Macroeconomic policy and environment  
379. The Discussant and several Members, including Tu rkey, the U.S. and Nigeria, expected China 
to expand domestic demand and to work towards re balancing its economy in the long run. I would 
like to thank the Discussant and Members for thei r advice and constructive comments. Their points 
are truly in line with the policy direction of the Ch inese Government. We have  made great efforts in 
this direction over the past few years, which is  properly noted by the Secretariat Report and the 
Discussant and echoed by many Members, such as Peru and Malaysia. 
380. Let me briefly list a few major steps that China has taken in this respect. As early as 2005, the 
“Eleventh Five Year Plan” already provided fo r measures to expand domestic demand.  In 2006, 
China eliminated all agricultural taxes, raising th e income of farmers by over Y 40 billion. This was 
the first such case in the history of China.  Fr om 2003 to 2007, annual income of China’s urban and 
rural residents grew by nearly 100% over that of the previous five-year period.  From 2006 to 2008, the amount of retail sales of consumer goods gr ew by 12.5%, 13.1% and 21.6% respectively. 
381. The stimulus package at the end of 2008 in res ponse to the financial crisis directly promoted 
consumption. The central budget provided Y 32 bill ion to consumption-promoting programs such as 
“home appliance to rural areas”, “motor vehicles to  rural areas” and “trade-in old home appliance and 
vehicles”. In 2009, China became th e world’s largest automobile mark et. That same year, retail sales 
of consumer goods registered an increase of 16.9% .  This year, 11 major coastal provinces and cities 
have raised minimum wages, at least by 10%. Th is will further build up consumption capabilities and 
confidence of workers. 
382. One of the key reasons for China’s high saving ra tio, as indicated in the Secretariat Report, is 
the lack of a sound social safety net. We are working hard to address this issue.  
383. From 2004 to 2008, national expenditure on social security amounted to Y 1.95 trillion, rising 
by 141% over that of the previous five years, while education expenditure reached Y 2.43 trillion, 
rising by 126%. Every year, about 10 million jobs were created. 
384. In 2009, central financial budget set aside Y 290.6 billion for social safety net, growing by 
16.6% over that of the previous year; Y 198.1 billi on for education, a growth of 23.6%; and Y 127.7 
billion for medical care, rising by 49.5%. The basic pe nsion for retired staff of enterprises increased 
every year for five years in a row, and will witness another 10% growth this year. 
385. In the future, China will continue its struct ural tax reduction to expand domestic demand. 
Financial expenditure will keep going to key areas such as “agriculture, rural areas and farmers”; 
people’s well-being; and social cause. In summary, expanding domestic demand and promoting 
economic balance are long term strategies of the Chinese Government. In spite of the challenges, we 
will keep making further efforts. WT/TPR/M/230 
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  386. India and Mexico mentioned the issue of over capacity of certain sectors in the economy. We 
appreciate these comments. As a matter of fact, the Chinese Government has been aware of this issue 
for a long time and now is working hard to address this problem in order to push ahead emission 
reduction and energy saving. We have raised the environmental and energy conservation benchmark 
for new investment projects in these sectors. We also took strict administrative measures to close 
down outdated production capacities. In our Government Report, we already informed Members of 
the capacities that had been reduced  in such sectors as iron and steel, coke, cement etc. in 2009.  In 
2010 it is estimated that another 8.25 million tons of steel production and 30 million tons of iron-
smelting will be closed down. 
Trade and investment regimes and practices  
387. The Discussant, Brazil, New Zealand and many others highlighted the importance of 
transparency. In recent years, ap art from the traditional means of workshops, symposiums and 
hearings, more and more draft laws and regulations  have been uploaded to the internet for public 
comments. The Legislative Affairs Office of the St ate Council specifically opened up a system in its 
official website (www.chinalaw.gov.cn) for public comments on draft legislations at both the State 
Council and Ministerial levels. The National People’ s Congress (NPC) decided in April 2008 that all 
future draft laws subject to the review by its  Standing Committee should increase their publicity for 
comments. 
388. Regarding trade policy transparency, all rul es and bulletins of the Ministry of Commerce 
(MOFCOM) concerning trade measures, trade remedies and foreign investment policies are clearly 
and publically available at our official website (www.mofcom.gov.cn). Our notification obligations in 
the WTO are generally fulfilled, except for some dela ys in the complicated area of subsidy, which is 
due to our capacity constraints. Members may have learned from our written answer that we will submit the second subsidy notifica tion this summer covering 2005-2008. 
389. The Secretariat noted in its report that our  applied MFN tariff contains 60 different 
ad valorem  rates. This led some Members like Ecuador to  complain about the complexity of our tariff 
structure. I would like to make some clarificati on on this. These 60 figures were consolidated results 
of our numerous bilateral negotia tions during China’s WTO accession. Therefore our tariff structure 
is quite different from other Members. 
390. However, China’s tariff structure is not complex at all. Our tariffs are 100 percent bound; our 
bound rates are low; and our applied rates are close to bound rates. During the international financial 
crisis, some Members were able to adjust their tariffs within the range between applied rates and 
bound rates. But China did not do it in order to keep our market open. 
391. Some Members called upon China to play a leading role in the ongoing Doha Round of 
Negotiations.  China has always supported multilateralism and actively participated in the multilateral 
trading system. Since the launch of the Doha Round , China has actively engaged in the negotiations 
and made contributions consistent  with its development level. Ta ke tariff reduction as an example, 
China will reduce its tariff by 30% in equivalent terms on the basis of its huge cuts in accession 
commitments. As mentioned earlier, China’s app lied rates are basically the same as its bound rates. 
Therefore, any further reduction will be real cuts. Ta ke services as another example, China offered to 
further liberalize 14 new services sectors and sub-sectors on the basis of opening up 100 sectors in its 
WTO accession. China believes that the Doha Roun d is a development round, not a market access 
round for a particular Member. China calls for a ddressing the concerns of developing Members as 
soon as possible, in particular those of LDCs. So we support duty-free a nd quota-free treatment for 
LDCs and reduction of cotton subsidy through early harvest. China promotes the early conclusion of 
the Doha Round so as to support the recovery of wo rld economy and resist trade protectionism. China 
stands ready with other Members in pushing forwar d negotiations, on the basis of respecting the Doha  WT/TPR/M/230 
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  mandate and locking in existing outcomes, to achie ve a balanced outcome and deliver development 
goals. 
392. The Discussant, Australia, Argentina, Guatem ala and others are concerned about China’s 
investment environment climate.  The Chinese Gove rnment has always attached great importance to 
improving foreign investment climate.  The Chinese G overnment at all levels listen carefully to the 
suggestions of foreign investors on improving busin ess environment.  Premier Wen Jiabao and Vice 
Premier Wang Qishan personally held many meetings to listen to the views of foreign investors so as 
to address their legitimate concerns and facilitate their operations in China. 
393. China has actively revised its foreign investment policies and promoted progressive opening-
up in various areas. Since the first Industrial Cata logue Guiding Foreign Investment was published in 
1995, China has made four revisions. Each time, liberalization was made by adding more industries to 
the Encouraged Category for Foreign Investment and reducing entries in the Restricted Category.  In 
the fourth revision, China added 94 entries to th e “Encouraged Category”, increasing its share in all 
industries from 69% to 73%. The percentage of entries in the Restricted Category dropped from 21% to 18%, and entries in Prohibited Category dropped from 9% to 8%.  In response to the financial 
crisis, the Ministry of Commerce alone abolished or  delegated to local authorities 26 licensing items 
with respect to foreign-invested enterprises. This  decision greatly improved administrative efficiency. 
394. Having said that, China needs to make further a nd greater efforts. In April 2010, the State 
Council issued a document titled Opinions on Usi ng Foreign Investment in a Better Way. By 
implementing this document, we will further enha nce openness and create an even better investment 
environment. 
395. The U.S., Canada and others raised their con cern on our export measures on certain products. 
These measures were introduced to protect environment,  to protect human life or health, to conserve 
exhaustible natural resources, or for national secur ity reasons. China believes that these measures are 
justifiable under the WTO rules. Since this issue ha s been brought to the DSB, I won’t dwell on this 
any longer. Let’s wait for the ruling of the panel. 
396. Switzerland and Colombia raised the issue of VAT  rebate on exports.  As known to all, tax 
rebate on exports is a common international practice.  The WTO rules on this issue are clear. That is, 
as long as the rebate rate is not in excess of the rate levied, the rebate does not constitute export 
subsidy. China started to implem ent tax rebate policy on exports as early as 1985. In reality, due to 
multiple reasons, China’s rebate rate has al ways been lower than the rate levied. 
397. After the outbreak of the international fi nancial crisis, many Chinese enterprises faced 
tremendous difficulty in trade financing. At the st rong request of enterprises, the Chinese Government 
moderately increased export rebate rates of some  products under the preconditions of complying with 
the WTO rules and international prevailing practices. Even after such increase, the rebate rates are 
still below the level levied. The Chinese Government w ill try to maintain the stability of export refund 
policy as a whole. 
398. Quite a few Members touched upon intellectual property rights. We appreciate Korea and 
others for acknowledging the great achievements China has made in this regard. The European Union 
and Japan mentioned specifically the enforcement of IPR laws. 
399. The Chinese Government has attached great importance to IPR protection, making it a 
national strategy. China has established an IPR legal framework that not only complies with 
international rules, but also conforms to China’ s realities. In terms of IPR law enforcement, the 
framework provides both administrative and judicial protection. On a broader perspective, China has WT/TPR/M/230 
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  set up a comprehensive system that allows IPR right -holders, companies, intermediary organizations 
and the entire society to cooperate on IPR enforcement. 
400. The U.S. and others expressed concerns with  regard to China’s indigenous innovation 
initiative, particularly its relationship with the govern ment procurement practices.  First of all, I would 
like to clarify the misunderstandings about i ndigenous innovation initia tive. The indigenous 
innovation initiative we are talking about is not just for wholly Chinese-owned enterprises. It is also 
applied to all other enterprises established in Ch ina, including foreign in vested enterprises. The 
purpose of this initiative is to promote innovation of all the enterprises, to encourage them to 
strengthen research and development, as well as to respect and protect IPR. 
401. Secondly, policies concerning this initiative w ill treat all enterprises legitimately established 
in China on equal footing, and no foreign invested en terprise will be discriminated.   Thirdly, we have 
carefully studied observations and suggestions by  Members on this initiative, and have published 
online a revised draft of “Notice Concerning th e Accreditation of Indige nous Innovation Products 
2010” in April 2010 for public comments. We believe  this initiative is open, non-discriminatory and 
WTO-consistent. This process will provide more  space of cooperation and broader development 
potential to Chinese and foreign enterprises.  
402. The Chinese Taipei, Norway and others sought cl arification on China’s policy regarding the 
government procurement  regime. China is not yet a Member  to the Government Procurement 
Agreement. Therefore, legally speaking China is not bound at this stage by this Agreement.  However, 
we are trying our best to accelerate the process of  accession. Last October China tabled a roadmap 
concerning our revised offer. In April 2010, the Ch inese Government reaffirmed this commitment. To 
be specific, China will submit an ambitious revised  offer before the GPA Committee meeting in July. 
Improvements in this offer would include a larger number of central entities and a wider coverage of 
goods, projects and services. 
403. As to the relationship between the state-owned enterprises and the Law on Government 
Procurement, paragraph 47 of the Working Party Report on China’s Accession is fairly clear that 
purchases or sales of state-owned or state-invested enterprises do not fall in the scope of government 
procurement. 
404. Chile and Singapore raised the issue of trade remedy measures.  As noted by the Secretariat 
Report and Members such as Pakistan, Hong Kong, China and Norway, China is the Member that 
suffers the most from trade remedy measures. In  2009, altogether 22 Members initiated 116 trade 
remedy investigations against China which invol ved US$12.7 billion. The number and value involved 
grew by 23% and 102% respectively from the previ ous year.  China resolutely opposes the abuse of 
trade remedies, in particular the discriminatory cr iteria and practices against China applied by some 
major Members in their trade remedy cases. 
405. The Discussant, Costa Rica and other Members pos ed the question of alignment of China’s 
national standards with international ones.  We al ways attach great importance to the adoption of 
international standards. 
406. Regarding the relationship between domestic and international sta ndards, as a general 
practice, China formulates and revises standards on  the basis of relevant international standards, 
including the international standards at the final stage of formulation. Exceptions would apply only 
when these international standards are ineffective or  inappropriate for China due to factors such as 
climate, geography or basic technical issues. When  adopting prevailing international standards, China 
gives priority to those fundamental standards and te st method standards. By the end of 2009, the rate 
of adopting international sta ndards and advanced foreign standards in China reached 68%.  WT/TPR/M/230 
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  407. Adopting international standards is an important  part of China’s long-term economic policy. 
Given that gap remains between international and do mestic standards, we will actively align domestic 
standards with advanced international and fore ign standards. As China’s economy grows, the 
adoption rate of international and foreign sta ndards will increase significantly in the future. 
408. On South-South cooperation, I would like to begin with my sincere thanks to the kind 
remarks on Monday by Cuba, Venezuela, Barbados , Sri Lanka, Zimbabwe , Zambia, Viet Nam, 
Ecuador and Pakistan.  
409. China’s Aid for Trade is an integral part of its overall South-South coope ration with friends in 
the developing world.  China provides aid to fellow developing Members within its capacity. 
Throughout this process, China respects the will of its trading partners, consults with them on aid 
projects and never attaches any po litical condition to foreign aid. 
410. China has helped recipient countries construct infrastructure that has a direct bearing on 
enhancing trade capacity such as airports, roads, bridges, power plants and communication facilities. 
Moreover, we have also helped recipient c ountries build up production projects and transferred 
technologies, and assisted them in formulating pl ans for national economic and trade development. 
These efforts enable recipient countries to build up trade capacity, improve commodity distribution 
and trade environment, diversify their trad e patterns and promote sustainable trade. 
411. By the end of 2009, China has helped over 120 developing countries complete more than 
2,100 projects. Quite a number of them are infrastru cture projects that help to build trade capacity of 
developing countries. 
412. Diversified forms of aid in this regard include  granting duty free treatment to relevant LDCs, 
exempting relevant LDCs from paying back matu red debt of interest-free loans, conducting 
technological cooperation and providing human resources training. In addition, China has also helped 
recipient countries expand export and improve trade administration. 
Sectoral policies 
413. On the issue of further liberalization of the se rvices sector put forward by the Discussant and 
several Members, I would like to respond with three basic facts. 
414. Fact 1: Gradual liberalization is a natural policy response to China’s underdeveloped services 
industry. In developed Members, the average share of services industry in GDP is 80% and that of developing Members is 60%. However, services i ndustry only takes up 40% of China’s GDP. Given 
such low level of development, only gradual liber alization will be reasonabl e and feasible. In the 
future, as services industries continue to grow, Ch ina will keep on opening up its services market. 
415. Fact 2: Without a proper regulatory system, it could be dangerous to open up further services 
sectors. That is especially true in the financial services sector. For a long time, China has respectfully 
regarded the U.S. and the E.U. Member States as our teachers in regulating financial services. 
However, to our great surprise, even the U.S. still had regulatory loopholes, resulting in the global 
financial crisis. This reality highlights the im portance of establishing a sound regulatory system 
before a Member further opens up its services sectors. 
416. Fact 3: China has been actively promoting further services liberalization in the Doha Round.  
China has been opening up its services sectors vigorous ly since the last Trade Policy Review. I would 
like to take telecom services as an example becau se of Members’ strong interest in this sector. 
According to paragraph 83 on page 88 of the Secr etariat Report, “Since its previous Review, China 
has continued to liberalize telecommunication services and promote competition in the sector; new WT/TPR/M/230 
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  players and technology have been introduced and pr ices have come down.” In fact, over the past two 
years, China has also further liberalized ot her sectors voluntarily such as securities services, 
environmental services, tourism services, and re search and development services. In order to 
contribute more to the multilateral trading system, China described its possi ble new offers in the 
Ministerial Signalling Conference on Services in July 2008. On the road ahead, China stands ready to 
further discuss mutual services opening-up with othe r Members within the framework of the Doha 
negotiations. 
417. Finally, several Members mentioned about Chin a’s energy sector. Specifically, the Discussant 
asked us to provide details about a potential envi ronmental tax.  Regarding this issue, China is 
actively researching the experiences of other Member s in regulating pollution discharge by taxes. We 
intend to replace the existing policy of collecting pollution discharge fee with an environment tax 
system that levies tax on pollution discharge. Relevant research is still on-going.  
418. I will stop here and look forward to further comments and questions from the Discussant and 
other Members. 
DISCUSSANT 
419. Let me just underline a couple of points that come out of the discussions as particularly 
important in my view.  First of all, China is quickly becoming a key global economic player. All of 
the statements made by Members have noted the significant growth of the Chinese economy during 
the review period. The transformation is underpinne d by China’s integration in the global economy, 
and Chinese economic growth means potential market  opportunities for its trading partners. But, as 
underlined notably by the U.S. and the EU on Mo nday, this economic development has far reaching 
impacts on other countries. China’s domestic polici es today directly affect global markets and global 
economic growth.  
420. With this development therefore it seems to me comes a new role for China, one that follows 
with its increasing size and influence. China’s taki ng on leadership is important not least to the 
multilateral trading system, which, as Vice Minister  Yi said in his introductory statement, is the 
cornerstone of China’s trade policy. WTO is an ess ential component in the further development of a 
win-win dynamic between China and its trading part ners, as is the conclusion of the DDA. China 
relies on a strong multilateral trading system. In this context, China’s rapid accession to the GPA would not only provide market access gains, but e qually strengthen the Agreement as an instrument of 
international economic policy.  It is therefore ind eed very positive to hear this morning that the 
Government intends to submit a revised offe r before the next GPA meeting in July. 
421. Secondly, the Chinese economy is confronted by sev eral important challenges, in particular to 
find a new balanced long term growth model. In  addition to achieving stable economic growth, a 
sustainable growth model, as I believe was menti oned by the Ambassador of New Zealand, could 
have external benefits for example to the environm ent. I will not of course repeat all the important 
issues that have been raised so far – and a num ber have already been commented also by Vice 
Minister Yi in his statement this morning – bu t coming to terms with dependence on manufacturing, 
over-investment and over-production appears particul arly important. And when continuing on its 
reform path, China would most certainly gain  from reducing its dependence on overseas demand and 
lessen its reliance on export led growth, open up to foreign investment, increase competition in its 
domestic markets, and find more efficient ways to allo cate capital than through state trading. In taking 
on these challenges, protectionist solutions must be avoided. It would be good if the elimination of 
export barriers occurred at the same  pace as the elimination of import barriers. And, as I think was 
noted by Canada, as the Chinese economy grows more  sophisticated, the need for a system of 
standards that contribute to trade grows.    WT/TPR/M/230 
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  422. Let me also take this opportunity to thank Vice Minister Yi for his explanation regarding the 
important issue of how the Government intends to further liberalise China’s service sectors. Developing China’s trade in services and reduc ing restrictions on FDI may indeed help boost 
domestic demand and balanced growth.  It is clear that China is already dealing with many of these 
challenges.  And there are all reasons to believe th at the dialogue that takes place through this Review 
will be of use both to the Chinese Government and to WTO Members. 
UNITED STATES 
423. The United States appreciates the responses that China provided to our questions regarding 
the first part of the Secretariat Report dealing with  China’s economic environment.  I was particularly 
gratified to hear China’s willingness to  exercise leadership on trade issues. 
424. As our questions reflect, we were particularly  interested in learning more about China’s 
strategies for rebalancing its econom ic growth and, in particular, shifting toward domestic demand-led 
growth. We have reviewed the response that China provided regarding the reba lancing of its growth.  
We are pleased to receive China’s assurance that it places “high importance” on this effort.  We 
believe that it will be beneficial both to China and its  trading partners for China to move further in the 
direction of domestic demand-led gr owth as expeditiously as possible. 
425. We note that in our questions we also highlighted the importance of China pursuing an 
increased role for services in generating domestic gr owth.  In our view, growth in China’s services 
sector will generate strong employment as well as improved domestic infrastructure that will contribute to a sustainable development path, unlik e that offered by continued promotion of export-
oriented goods manufacturing.  We are hopeful that China shares this assessment. 
426. In our written questions on the framework and objectives of China’s trade policy regime, our 
principal area of inquiry involved various aspects of transparency. 
427. Transparency is a critically important aspect of any Member’s trade regime, as China has 
acknowledged.  We would like to note our appreci ation for the constructive ongoing discussions on 
transparency issues that we are having with China under the auspices of the U.S.-China Strategic and 
Economic Dialogue and the U.S.-China Joint Co mmission on Commerce and Trade. We also 
appreciate the responses that China has provided to our written questions on transparency.  However, 
we still want to make a few observations.    
428. First, as we noted in our statement on Monday, we recognize that China has made notice-and-
comment procedures mandatory for new laws, regulati ons and other measures.  This is an important 
development, and the U.S. Government and U.S. i ndustry have been monitoring China’s adherence to 
this policy closely.  To date, it appears that th e National People’s Congress and the State Council have 
been regularly publishing draft laws and regulati ons for public comment.  However, we have found 
that many individual ministries and agencies have displayed more difficulty publishing departmental 
rules for public comment.  In our questions, we  specifically asked China if it had developed a 
mechanism for monitoring the performance of indivi dual ministries and agencies.  From the response 
that China gave to this question, it appears that China has not established such a mechanism.  Clearly, 
China recognizes the value of notice-and-comment pr ocedures.  We would therefore urge China to 
create a mechanism that will allow it to closely m onitor the performance of individual ministries and 
agencies, and we also urge China to take affirmativ e steps to ensure that any non-compliant ministry 
or agency fully adheres to China’s mandatory  notice-and-comment procedures when issuing 
departmental rules.   
429. Second, in one of our questions, we noted th at China has never notified any provincial or 
local government subsidies, even though dozens of  them were the subject of a recent prohibited WT/TPR/M/230 
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  subsidies WTO dispute brought by the United States , Mexico and Guatemala.  We asked China to 
commit to a date certain for the submission of a subsidy notification under Article 25 of the 
Agreement on Subsidies and Countervailing Measu res that would include provincial and local 
government subsidies.  However, China did not respond to this question.  It only stated that it would 
submit a notification of central government level subsidies this su mmer.  We would again ask China 
to commit to a date certain for notifying its provinc ial and local government subsidies, as required by 
the Subsidies Agreement. 
430. Finally, in one question, we had asked whether China’s Provisions on the Disclosure of 
Government  Information applies to so-called “internal guida nce.”  In response, China stated that it is 
not sure what the United States means by “internal gu idance”.  This response is puzzling.  In a recent 
WTO dispute brought by the United States challenging China’s restrictions on the importation and 
distribution of books, newspapers, journals, music, theatrical films and DVDs, China itself used this 
term.  It argued that certain measures challenged by the United States were only “internal guidance” 
and therefore did not constitute meas ures that could be challenged in a WTO dispute.  The panel and 
the Appellate Body disagreed with China, finding th at they were challengeable measures.  So, we 
would again ask China to respond to this questi on and explain whether China’s Provisions on the 
Disclosure of Government Information applies to so-called “internal guidance”.   
431. In our written questions on the part of the Secr etariat’s Report dealing with trade policies and 
practices by measure, we focused on a number of im portant areas, including standards, SPS measures, 
government procurement, export restraints such as quotas and duties, value-added tax rebates on 
exports, subsidies, competition policy and intellectua l property rights.  China responded to most of 
our questions in these areas, and we welcome those responses.  In some inst ances, however, China’s 
responses were incomplete. 
432. First, in U.S. question 22, we had asked a th ree-part question about China’s new Food Safety 
Law.  China provided a response to this question but did not address two of the sub-parts, in which we 
had asked China (a) to explain what steps it has take n to improve the timeliness of its notifications to 
the SPS Committee and (b) to id entify how many food safety measures had been enacted under 
China’s Food Safety Law and how many of them had been notified to the SPS Committee with a 60-
day comment period. 
433. Second, in U.S. questions 28.a., 28.b., 28.c., 28.d., 28.e. and 28.f., we had provided 
information about one central government program  and five provincial and local government 
programs that appear to provide subsidies conti ngent upon export performance.  We asked China to 
confirm the details of each program, but instead China stated that “we can have further discussions 
with relevant members”.  The United States would remind China that a Trade Policy Review is a multilateral exercise, and while we would welcome fu rther bilateral discussions, it is also incumbent 
upon China to respond to these questions in wr iting as part of its Trade Policy Review. 
434. Third, in U.S. question 37, we had asked about support provided by the Chinese government 
for “export bases” for autos and auto parts pursuan t to the sector-specific plan for the automotive 
sector.  In response, China discussed other support provided to the automotive sector, but it did not 
address support for the “export bases”.  We would ask that China provide responses in writing to all 
of these questions.  
435. We would also like to comment on two other res ponses that China did provide.   First, U.S. 
question 19 asked whether any interested parties had ev er requested judicial review of the Ministry of 
Commerce’s anti-dumping or countervailing duty determ inations.  China provided a chart indicating 
three instances where interested parties sought administrative reconsideration, but it does not 
expressly mention judicial review.  Does China’s re sponse mean that no interested party has ever 
requested judicial review?  WT/TPR/M/230 
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  436. Second, in response to U.S. question 29, whic h deals with China’s pr actice in the area of 
VAT rebates, where China periodical ly changes the available VAT reba te for certain exports in order 
to encourage or to discourage exports and to meet industrial development goals, China states that it is 
“unable to give a specific timeline for eliminating the difference between the rebate rate and the tax 
rate”.  Through this statement, it appears that Ch ina is acknowledging that it should eliminate its use 
of partial VAT rebates.  If that is correct, the United Sates welcomes this  acknowledgement and urges 
China to eliminate this practice as quickly as possible.   
437. We appreciate the many responses that China provided to our questions about the part of the 
Secretariat’s Report dealing with China’s trade polici es by sector.  Here, we seek one clarification.  In 
response to U.S. question 56, which dealt with licensing, China referred the United States to the 
“quantitative restriction notifications submitted by Ch ina to the WTO every year”.  Can China explain 
whether it has submitted any of these notifications af ter 2007?  If it has, can China explain how the 
United States can locate copies of those notifications?  
438. Finally, we acknowledge the large number of  questions that China received, and we 
understand that China was unable to respond to all of them by the first day of its Trade Policy 
Review.  But we want to note the questions from the United States to which China has not yet been 
able to respond.  They include questions 14, 20, 34, 41 and 52 relating to the Secretariat’s Report and questions 1 and 6 on the Chinese Government’s report .  In addition, we appreciate the responses that 
China provided to certain U.S. questions from Ch ina’s 2008 Trade Policy Review, which we had re-
submitted because China had not previously responde d to them.  Here, though, we note that question 
36 remains unanswered. 
439. Lastly, we note that we will be submitting a fe w follow-up questions in writing later today.  
These questions deal with China’s export credit polic ies and China’s investment restrictions in the 
steel sector. 
EUROPEAN UNION 
440. As we pointed out already on Monday, transpar ency remains the essence of the WTO and this 
trade policy review is a great opportunity for China to  demonstrate its commitme nt to transparency, in 
particular, by providing substantial answers to th e questions and comments raised by WTO Members. 
We have had a careful look at the replies provided by  China.  In many areas, these replies have given 
us useful assurances, for instance as regards the clas sification and continuity of operations of foreign-
funded enterprises (question 26). We also look forw ard to the announced submission by China of the 
2005-08 subsidy notification. 
441. However, we have to register with some regret  that still quite a few of our questions – 42 in 
all - have not yet been answered. In particular, a number of our questions are left unanswered in this 
year's questionnaire relating to IPR, export restri ctions, energy sector and industrial policy, amongst 
others. Although we acknowledge the daunting task of answering 1,500 questions – our EU TPR is 
still fresh in our memories – we need today to un derline once more the need to comply with the 
established deadlines, as it is a matter of great systemic importance. The EU hopes that these 
outstanding replies will be answered within one m onth after this meeting according to the procedures, 
and that we will not experience again the unfortunate  delays occurred during the last TPR of China. 
442. The EU will submit today a number of follow-up questions on certain areas where replies 
were not satisfactory and further clarification is sought, for example, in government procurement, 
SPS, services and IPR. Let me refer to some examples:  
443. As regards transparency in the context of public consultations (Q.8), we thank the 
Government of China for the information provided, but consider that the specific elements of our WT/TPR/M/230 
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  question have remained unanswered.  In particular, we would like to learn whether comments provided 
following "solicitation of public opin ion" are made publicly available.  Furthermore, we are interested 
to know if China has any plans to introduce mi nimum time periods for submission of comments under 
such public consultations.  
444. Another example where more information woul d be welcome concerns China's plans to 
implement duty-free treatment to imports from LDCs. China stressed during its opening statement, 
and repeated in its written replies, that it represents  the largest export market for LDCs. This is a bold 
statement, but we should pay attention to the deta ils behind it: according to our latest information 90% 
of China's imports from LDCs concern oil and mine ral products, while only 0.2% of the agricultural 
imports enter the Chinese market duty free.  It would be interesting to learn if China intends to make 
sure that the preferences granted to LDCs will contribute to the export diversification of their 
economies.   
445. In this respect, we also note from China's repl y to a related question from Brazil (Q.31) that 
China's duty free scheme includes a safeguard clause  allowing China to terminate duty-free treatment 
in case of sharp increases in LDC imports of a certain product. We would be grateful if China could 
elaborate on this. 
446. On Monday we outlined interest and concerns regarding China’s trade policy regime.  Today 
China has provided some useful information on how it intends to address these concerns, but further 
clarity and a sense of political direction are still n eeded.  We hope that this TPR will provide China 
with good argumentation to accomplish the followi ng changes: 1) To decrease the level of 
government interference in its economy, which affect s a wide number of horizontal and sectoral areas, 
including investment, financial services, and indust rial policies.  2) To intensify its efforts in 
improving IPR protection and enforcement.  Access to  the judicial system still remains problematic 
for right holders who are confronted with burde nsome and time-consuming requirements. Further 
improvement is needed to enable right holders to  defend their rights effectively.  3) Align with 
international standards and review the Compulsory  Certification Scheme. We note from the replies 
that at the end of 2009 68% of Chinese national st andards were internationa l or "overseas advanced 
standards", and we encourage China to continue its  efforts towards reaching its stated aim of 85% by 
2010. However, as far as ICT products are concerne d, we continue to disagree that the applied 
measures are in line with international practice, and we regret that the CCC coverage has been 
expanded to these products.  4) Review its governme nt procurement policies, which now seem to run 
counter to the direction one would expect from a country that is acceding to the Government 
Procurement Agreement. The indication given that SOEs – though not subject to China's government 
procurement laws and regulations - may voluntarily decide to implement GP measures, is a reason for 
increased concern, especially in light of the inform ation provided that gross output of SOEs accounted 
in 2008 for 45% of China's GDP. 
447. Let me conclude by saying that China is in a position in our view to be more transparent 
about its regulatory and trading regime. Greater tr ansparency and predictability is in China's own 
interest since this would preclude any unnecessar y misunderstanding of its trade practices and 
measures, and foster better decision-making and im prove the overall business climate in China. We 
hope China will take good note of all Members' concerns and recommend ations, and take the 
necessary measures and policy actions to address them . This is in fact the ultimate objective of a 
Trade Policy Review. In this spirit, we also wish to be able to come back with a shorter and different 
list of remarks during the next China TPR in 2012.    WT/TPR/M/230 
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  JAPAN 
448. Japan appreciates China’s replies to our questions , among more than 1,500 questions in total. 
It also appreciates the detailed responses by Vice Mi nister Yi this morning. Some of the replies 
provided good clarification. Japan views that this TPR, in this way, contributes greatly to a better 
understanding of the trade and investment policy in China.  
449. In this context, Japan would like to remi nd China that there remain some questions 
unanswered. These are Questions 2, 16 (3), 17 and 20 in Volume 1, and Question 1 in Volume 2, 
which we submitted before the two-week deadline. 
450. Meanwhile, Japan has some follow-up questions . These are about tariffs, including special 
preferential tariffs to LDCs, competition policy, go vernment procurement policy, financial services, 
and some other services. We will submit these follow-up questions in writing later today.  
451. I should add that we are also looking forward to receiving replies to our questions in 
Volume 3, which we submitted after the two-week s deadline. For all these questions, Japan would 
like to express in advance its appreciation on the replies by China.  
452. As we stated on the first day of this TPR, th ere are issues of our concern, such as the 
Indigenous Innovative Initiative, a nd the export restrictions over mine ral resources. We will continue 
to pursue these issues with China, through the releva nt committees in WTO in bilateral meetings and 
elsewhere where appropriate. 
453. Before ending, Japan thanks the Chinese delega tion for their efforts to make this review 
meaningful, and hopes for continued efforts for more  transparency in their policies and practices 
related to trade. 
CANADA 
454. We have as others, however, noted that some of Canada’s questions have been missed and 
other responses appear to be incomplete.  We ha ve compiled the document with the questions with 
missing answers and indicated those areas where we would request that further information be 
provided.  We will make this document available to our Chinese colleagues and hope that the answers 
to these questions could be provided in advance of  the 30-days deadline, so  that Canada has an 
opportunity to seek further clarification through fo llow-up questions if need be.  We again thank 
China for the responses that they have already provi ded in writing and in today’s statement by Vice 
Minister Yi, and look forward to receiving the remaining responses in the near future. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
455. As I have indicated on Monday that China is currently our largest trading partner and the 
most important destination for our overseas invest ment.  In that context, we appreciate China’s 
positive response to our written question in page 2 17 on providing opportuni ties for consulting our 
enterprises operating in China on the formulation of its  related legislations and regulations.  This point 
was also highlighted in Vice Minister YI's statement. 
456. It is also noted that in its answer, China r ecognizes the great contribution our enterprises have 
made to the economic development of China in the same page. 
457. We further noted that in China’s reply to the advance written questions put forward by 
Canada on the updated status of our  negotiation with China of the “cross-straits economic cooperation WT/TPR/M/230 
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  framework agreement” known as ECFA in page 261.  We anticipate the early conclusion of the said 
agreement would further enhance the ec onomic and trade relations between us. 
CHINA 
458. We appreciate the comments and the further questions from the Members and we will try our 
best to answer all of your questions in time.  I just  want to give a very brief response to the questions 
from the U.S. and the EU about subsidies.  We welcome any information from you about the 
subsidies which is not consistent with the WTO, and we will try to collect this information and try to 
correct any policy which is not consistent with the WTO.  As for local subsidies notifications, China 
does encounter major difficulties in th is regard and find it hard to set a timetable but we will be very 
honest and sincere in notifying subsidies.  We ha ve accumulated a valuable experience from the 
notification of central government subsidies.  On th is basis we will work dilig ently to prepare for the 
notification of local government subsidies and bri ng that part into our overall notification as soon as 
possible.   
459. As for our tax rebate policy, we  understand your concern, and we want to reiterate that we are 
not going to do anything which is not consistent with the WTO.  That is the basis for our future 
policy.  Meanwhile we do not have the intention to intensify the usage of the tax rebate policy.   
460. The U.S. mentioned the so-called "internal guida nce", I am not quite familiar with the issue 
you have mentioned, but we have firm commitment that we will impl ement only those policies, laws 
and regulations which are published.   We understand all Governments may have internal guidance in 
their work.  We will make sure that such guidance, if any in China, will not be violating the WTO or 
the multilateral trading rules.  Otherwise, it w ould be our responsibility to make corrections. 
461. We got a lot of other questions and we will try to answer all of those questions.  But I just 
want to raise one concern about this job, that is , even though my team is working very hard, we can 
hardly finish all the answers.  It seems that the WTO has language discrimination, we do not speak 
English, so normally we have to translate all the questions into Chinese and pass them to various 
agencies in the Government.  They will try to prep are the answers to you and we have to translate 
them back into English.  So it creates a big bur den and we hope that we can have your understanding 
if there is a little bit delay.  But we will try to make it.   
462. After my responses to the key concerns and qu estions raised by the Discussant and other 
Members, as the review is drawing to a close, I woul d like to take this opportu nity to thank all of you 
for participating in the review of China. We find the exchanges during the two sessions candid and 
useful. I am sure that while we may not agree on each and every point, the discussion is helpful to 
enhance the understanding by Members about China’s efforts in pursuing a balanced and sustainable 
economic development. In the meantime, China is keenly aware of its strengths and shortcomings. 
China will take this TPR as a new starting point on its road of reform and opening up. This will help 
us find solutions to address the challe nges during the course of development.  
463. The world is undergoing phenomenal changes. To deal with the global challenges ahead of us 
makes multilateralism, openness and cooperation ever more indispensable. As so many people quoted 
Chinese proverbs, I feel an urge to quote one myself here as well. That is when everybody adds fuel, 
the flames are high, or to put it simple: more people, more strength.  WT/TPR/M/230 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
464. This third TPR of China has provided an excellent opportunity to examine, from a multilateral 
perspective, China's trade policies and practices a nd their impact on the trading system.  I thank Vice 
Minister YI Xiaozhun and his delegation, together  with the Discussant, Ambassador Swärd-Capra of 
Sweden, and Members of the Trade Policy Review Bo dy for contributing to our exchange of views.  
China's response to a large number of qu estions is also much appreciated. 
465. At a time of heightened trade tensions around the world as governments manage the 
economic consequences of last year's global recession and 12% drop in world trade flows, this Trade Policy Review (TPR) of China has highlighted th e valuable role that the WTO's TPR Mechanism 
plays by increasing transparency, encouraging consultation and cooperation among WTO Members, 
and helping to avoid misunderstandings.   
466. Members commended China's constructive role in  the WTO and noted that a well-functioning 
multilateral trading system has helped China to su stain its economic growth and development.  Its 
dependence for many years on export-led growth, particularly in manufactured goods, left it 
vulnerable to the effects of global recession.  The Government's response of expansionary fiscal and 
monetary policies, including a Y 4 trillion stimulus  package, helped Chin a's economic growth to 
rebound in 2009 and made an important contribution to  global recovery elsewhere, particularly in the 
Asia region.  Members welcomed China's construc tive role in resisting protectionist pressures and 
instead boosting global demand during the recent economic downturn. 
467. The global economic crisis has reinforced China' s determination to correct imbalances in its 
economy, including through structural diversificat ion, improving the functioning of the domestic 
capital market, and strengthening social safety nets for the population.   Looking ahead, as the 
Government pursues policies to increase the role of domestic demand in unde rwriting China's growth 
and to encourage the expansion of the services sector, further liberalization of the trade and 
investment regimes is called for to foster competition and achieve more efficient allocation of 
resources in the economy. 
468. Members appreciated China's efforts to enhance domestic transparency, and welcomed 
China's ongoing efforts to review, re vise, and amend its trad e and related laws.  Nevertheless certain 
aspects of China's legislation and the regulatory process remain complex and unclear.  Examples 
include some provisions in the recent Anti-Monopoly Law, concerning "national security reviews", 
mergers and acquisitions, and the balance be tween IPR protection and competition.   
469. Members noted that China has continued the gra dual liberalization of its international trade 
and investment regime.  It was mentioned that pr ogress towards market liberalization has shown signs 
of slowing down, and China was urged to give a new impetus to its reform programme.  Members 
urged China to continue its trade and investment lib eralization, particularly in the areas of government 
procurement, export restrictions, standards and technical regulations, and services.   
470. Members remarked on the fact that all China' s tariff lines are bound and that the relatively 
low applied MFN rates are close to bound MFN rates, thereby providing a high degree of 
predictability to its tariff.  However, th e applied MFN tariff contains 60 different ad valorem  rates, 
and China was urged to simplify its tariff. 
471. Members remain concerned about regulatory an d other barriers to trade and investment, 
especially customs procedures, import prohibitions, and licensing.  Concerns were raised about 
China's trade remedy activities, which are assuming increasing importance.   
472. China was asked to clarify the procedure it follows to make its voluntary standards 
mandatory;  it was noted that less than half of Ch ina's national standards correspond to international 
standards.  Concerns were also raised about Ch ina's technical regulations, including its use of a WT/TPR/M/230 
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  Compulsory Certification Scheme.  China was ur ged to follow more closely recommendations from 
international organizations on SPS measures.  
473. Members were also concerned about China' s indigenous innovation initiative and "Buy 
China" policies in the government procuremen t framework.  Many expressed their willingness to 
work with China to facilitate its accession to the WTO Agreement on Government Procurement.  
474. Members remained concerned over certain asp ects of China's export regime, notably, 
restrictions, licensing, quotas, export taxes, and partia l VAT rebates.  Its export barriers have not been 
falling at the same pace as its import barriers, and could potentially distort markets.  Members 
welcomed China's consideration of suitable internal measures, rather than trade measures, to conserve 
natural resources, save energy, and protect the envir onment.  In this regard, Members asked China to 
provide details of plans to levy a tax on its natural resources.  Some were particularly concerned with 
the export-related subsidy programmes run by local governments;  they also urged China to ensure 
that officially supported export credits do not distort trade.  In addition, Members urged China to 
submit new notifications regarding its subsidies. 
475. Concerns were raised about China's industrial policies that entail government intervention in 
certain sectors, particularly manufacturing, and that  have been used to guide resource allocation with 
resulting overcapacity in several industries.  
476. Members considered that, despite China's conti nued efforts, the enforcement of intellectual 
property rights remains insufficient, and some aspects of IPR protection remain complex.  
477. Concerns were raised about border measur es and production subsidy programmes affecting 
imports of agricultural products.  Members were al so concerned about entry barriers to the energy 
sector, and called for more market-oriented energy pricing.   
478. With regard to services, Members compliment ed China on its unilateral relaxation of 
restrictions on FDI.  Members encouraged China to  further liberalize its services, especially banking, 
insurance, electronic payment systems, telecomm unications, express delivery, and legal services.  
Moreover, the Central Government has been dele gating licensing authority to local governments for 
the establishment and modification of operations of  some foreign-invested enterprises (FIEs).  
Members noted that there were still areas to be impr oved, such as limits on foreign investment in 
some sectors and private-sector activities.   
479. Members expressed their appreciation to China for offering special preferential tariffs for 
imports from 41 LDCs, and for China's involvement in South-South cooperation more generally.  
They encouraged China to offer duty-free quota-fre e access to all 49 LDCs identified by the United 
Nations.   
480. China considers regional/bilateral trading agre ements (RTAs) as a necessary supplement to 
multilateral trade liberalization;  Members expressed  the hope that RTAs would not diminish China's 
commitment to the multilateral trading system. 
481. This third review has been very useful in providing us with a better understanding and an 
update of China's trade policies and practices.  I would once again like to thank the Chinese 
delegation for its constructive efforts in preparing fo r and participating in this meeting.  I appreciate 
the participation of a large delegation representing different ministries and agencies across broad areas of responsibilities.  I wish to congratulate China fo r its impressive economic performance, to become 
the world's largest exporter and the second largest im porter.  I would also like to thank the Discussant 
for her insightful and thoughtful comments, and Memb ers for contributing to what has been a very 
extensive and informative two days of discussions.  We look forward to receiving within the next 
month China's responses to the remaining ques tions, including those outstanding from its second 
Review. 
__________