WORLD TRADE  
ORGANIZATION  WT/DS373/4 
S/L/320/Add.1 9 December 2008 
 
(08-6057) 
 Original:   English 
  
 
CHINA – MEASURES AFFECTING FINANCIAL INFORMATION SERVICES AND 
FOREIGN FINANCIAL INFORMATION SUPPLIERS 
 
Joint Communication from China and the United States
 
 
 
The following communication, dated 4 December  2008, from the delegation of China and the 
delegation of the United States, is circulat ed at the request of those delegations. 
  
_______________ 
 
  The Government of the People's Republic of China and the United States wish to notify the 
Dispute Settlement Body that we have signed th e attached Memorandum of Understanding regarding 
the matter raised by the United States in the dispute China – Measures Affecting Financial 
Information Services and Foreign Financial Information Suppliers (WT/DS373). 
  We ask that you circulate this notification and th e attachment to the Dispute Settlement Body.   
  
 
 
Sun Zhenyu 
Ambassador 
Permanent Mission 
of the People's Republic of China Peter Allgeier 
Ambassador 
Permanent Mission of the United States to the 
World Trade Organization 
 WT/DS373/4 
S/L/320/Add.1 Page 2 
 
 
  Memorandum of Understanding Between the People's Republic of China and 
the United States Regarding Measures Affecting Foreign Suppliers 
of Financial Information Services 
 Whereas the United States requested consultations with  the People's Republic of China ("China") at the 
World Trade Organization ("WTO") on 3 March 2008 regarding certain measures affecting foreign 
suppliers of financial information services (DS373);  Whereas China and the United States held construc tive consultations in Geneva on 22 and 23 April 
2008; 
 China and the United States have agreed as follows:  1. During the consultations, the Un ited States described its concer ns regarding the independence 
of the regulator of financial information services in China. 
(a) The State Council, following the approval of the Reform Plan of the State Council by 
the first meeting of the 11
th Session of the National People's Congress on 
15 March 2008, has been undertaking adjustment of certain elements in China's institutional structure.  China confirms that  the State Council will, by 31 January 2009, 
authorize a new regulator of financial information services (the "new regulator") and 
that the new regulator will be a governmental entity separate from, and not accountable 
to, any supplier of financial information services.   
(b) The new regulator, within its mandate, will have  the authority to require that suppliers 
of financial information services comply w ith all relevant Chinese laws, regulations, 
and departmental rules.  
2. The United States also described its concerns  about China's measures relating to foreign 
financial information service suppliers, including through the Notice Authorizing Xinhua News Agency 
to Implement Centralized Administration Over the Release of Economic Information in the People's 
Republic of China by Foreign News Agenci es and Their Subsidiary Information Institutions , issued by 
the General Office of the State Council on 31 December 1995 (the " Circular "), and the Measures for 
Administering the Release of News Inform ation in China by Foreign News Agencies , issued by Xinhua 
News Agency on 10 September 2006 (the " 2006 Measures ").   
(a) China confirms that a legal instrument (the "new measures") of at least equal legal 
stature to the 2006 Measures  will be promulgated by 30 April 2009 to replace the 2006 
Measures , effective no later than 1 June 2009.  
(b) China confirms that under the new measures, a new licensing system will be applied to 
foreign suppliers of financial information ser vices. China further confirms that this new 
licensing system will conform to the commitm ents that China made in paragraph 308 
of the Working Party Report accompanying its  Protocol of Accession to the World 
Trade Organization.   
(c) China confirms that beginning on the date of the implementation of the new measures, 
China will permit foreign suppliers of financ ial information services to supply financial 
information services, directly or indirec tly, without requiring the involvement of any 
agent or intermediary, and will not impose any licensing requirements or similar approvals on service consumers in order fo r them to receive financial information 
services from foreign suppliers.      WT/DS373/4 
 S/L/320/Add.1 
 Page 3 
 
 
  (d) The new regulator may require foreign supp liers of financial information services to 
submit only information that is relevant  to matters under the license.  The new 
regulator may require foreign suppliers of fina ncial information services to file with the 
new regulator relevant information identif ying each subscriber to the financial 
information service within thirty (30) da ys after the conclusion of the subscription 
contract with that subscriber, but will not re quire the filing of the subscription contract 
itself.      
(e) China confirms that it will accord foreign financial information services and foreign 
suppliers no less favorable treatment th an that accorded to Chinese financial 
information services and service suppliers. 
(f) China clarifies that a document will be issu ed by the same authority that issued the 
Decision on Establishing Administrati ve Permission for the Administrative 
Examination and Approval of Items That Must Be Retained  (State Council Order 
No 412 ) no later than 31 January 2009, stating that the State Council Order No. 412  is 
modified to identify a new regulator and that the Circular  is superseded and will no 
longer be implemented, so that foreign s uppliers of financial information services will 
be subjected to the administration of th e new regulator in accordance with this 
Memorandum of Understanding.  
3. The United States also described its concerns about the protection of commercially valuable 
information belonging to foreign suppli ers of financial information services. 
 China confirms that, in accordan ce with China's laws, regulations and departmental rules, the 
new regulator will take all necessary steps to protect the information provided to it by a foreign supplier 
of financial information services, and will only use such information for the specific regulatory purpose 
for which it is provided, and will not otherwise disclose the information to any unauthorized person.     
4. During the consultations, the United States descri bed its concerns about China's prohibition on 
foreign suppliers of financial information services operating through commercial presence in China, 
other than limited representative offices, to supply these services. 
 China clarifies that Chinese laws, regulations, and departmental rules do not impose any 
prohibitions on the supply, through commercial prese nce, of financial information services.     
 5. The term "financial information service" as used in this Memorandum of Understanding means 
a service that supplies information that could affect financial markets and/or financial data, targeted at 
service consumers engaged in financial analysis, fina ncial transactions, financial decision making, or 
other financial activities. Financial information ser vices are distinct from "news agency services" as 
defined in UN Provisional Central Product Classification (1991) group 962. 
6. As used in this Memorandum of Understa nding, the terms "service consumer", "supply", 
"service supplier" and "commercial presence" are to  be interpreted in accordance with Article XXVIII 
of the General Agreement on Trade in Services . 
7. China and the United States agree to communicat e in a timely manner with respect to the 
implementation of the actions described above, incl uding China's provision of a reasonable period to 
comment on any proposed measure related to th is Memorandum of Understanding prior to the 
finalization of such measure. 
8. This Memorandum of Understanding is without prejudice to the ri ghts and obligations of China 
and the United States under the WTO Agreement . WT/DS373/4 
S/L/320/Add.1 Page 4 
 
 
   Done in Geneva, 13 November 2008, in two or iginal versions in Chinese and English, 
respectively, each text being equally authentic.    
 
 For the Government  of the People's Republic of China:  
 
  ___________________________  For the Government 
of the United States of America:  
 
  ____________________________ 
  
 
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