RESTRICTED  WORLD TRADE  
ORGANIZATION  S/FIN/M/55 
16 November 2007 
 (07-5016) 
Committee on Trade in Financial Services  
  
 
REPORT OF THE MEETING HELD ON 12 NOVEMBER 2007 
 
Note by the Secretariat
1 
  
1. The Committee on Trade in Financial Services held a meeting on 12 November 2007.  
The agenda is contained in Airgram WTO/AIR/3109.   
A. A
DOPTION OF THE ANNUAL REPORT TO THE COUNCIL FOR TRADE IN SERVICES  
2. The Chairperson drew Members' attention to document S/FIN/W/63, containing a draft report 
of the Committee's activities in the past year.   
3. The Committee adopted  the annual report with an amendm ent to paragraph 2 proposed by the 
representative of the Philippines.    
B. ACCEPTANCE OF THE FIFTH PROTOCOL TO TH E GENERAL AGREEMENT ON TRADE IN SERVICES 
EMBODYING THE RESULTS OF THE FINANCIAL SERVICES NEGOTIATIONS  
4. The Chairman  recalled that three WTO Members had yet to accept the Fifth Protocol:  Brazil, 
Jamaica, and the Philippines.  He invited these thre e Members to provide information on the status of 
their domestic processes.  
5. The representative of Brazil said that the Fifth Protocol had passed the first reading in both 
Houses of the Brazilian Congress.  The constitutiona l procedures for the full adoption of the Fifth 
Protocol were not yet over, but were near completion.   
6. The representative of the Philippines  said that consideration of the Fifth Protocol was pending 
at the Philippines' Senate.  He reassured Members that this was a priority for the Philippines' 
Executive Branch.  
7. The Chairman  thanked these two delegations for thei r updates, and encouraged the three 
Members concerned to accelerate their internal procedures for the acceptance of the Protocol.   
8. The Committee took note  of the statements made and decided  to revert to this agenda item at 
the next meeting. 
C. TECHNICAL ISSUES  
9. The Chairperson  recalled that there had been no discussion under this agenda item at the last 
meeting.  He remained convinced that the Committe e could have a role in supporting the Doha market 
access negotiations that were underway, primarily th rough a better exploration of technical issues and 
by providing an appropriate forum for dialogue between the trade community and the regulatory 
                                                      
1  This document has been prepared  under the Secretariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO.  S/FIN/M/55 
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  community.  He said that, as Members were awar e, he had held informal consultations with 
representative groups of Members with a view to id entifying suitable issues for further discussion at 
the Committee or in a more informal setting.  Tho se consultations had been held in a very positive and 
encouraging atmosphere and he intended to  continue them in the coming weeks.   
10. The representative of Brazil 
expressed his support for the Chair's consultations.  He thought 
that this could be a valuable exercise in order to  clarify some of the technical aspects involved in 
financial services trade.  He reiterated his interest in exploring further the Basel II capital accord.  In 
particular it would be interesting to analyze how different Members would implement this accord, and 
how it might affect the delivery of financial services.   He stressed that Brazil remained supportive of – 
and engaged in – the Chair's consultations.   
11. The Committee took note  of the statements made and decided  to revert to this agenda item at 
the next meeting.  
D. RECENT DEVELOPMENTS IN FINANCIAL SERVICES TRADE  
12. The Chairman  said that, as requested by some Members, and taking into account that many 
delegations had not been able to attend the Expert  Meeting on Trade and Development Implications  
of Financial Services held in UNCTAD on 20 and 21  September due to conflicting services meetings 
at the WTO, UNCTAD kindly agreed to present the outcome of that meeting.  The presentation was 
delivered by Ms. Elisabeth Tuerk, from the Trad e Negotiations and Commercial Diplomacy Branch at 
UNCTAD's Division on International Trade in Goods and Services and Commodities.  
13. The representative of UNCTAD  said at the outset that the Expert Meeting focused on the 
development aspects of trade in financial servi ces.  The meeting, which took place on 20 and 
21 September 2007, was an outcome of the São Pa ulo consensus –one of the key texts adopted at 
UNCTAD XI.  The background note for the meeting was contained in UNCTAD's document TD/B/COM.1/EM. 33/3, dated 3 August 2007.   
14. The Expert Meeting took a multi-stakeholder approach, involving policy makers, regulators, 
central bankers, financial services firms, research institutions, civil society representatives, and inter-
governmental organizations.  The views expressed, as well as the suggestions made, at the meeting 
were contained in the meeting's report.  She clarified in that sense that such a report was not an agreed 
conclusion, but rather a chairman's summary.  The meeting was divided into four sessions dealing with global market trends in financial services;   the role of financial services in economic 
development;  the role of regulatory frameworks a nd international regulatory standards;  and regional 
and multilateral trade negotiations and their development implications.   
15. In describing global market trends, she said that  world financial services exports grew at an 
average annual rate of 14 percent between 2000 and 2005, reaching US$ 200 billion in 2005.  
Developed countries accounted for 90 percent of  all exports.  Among developing countries, who 
accounted for 10 percent of all experts, Hong Kong China, Singapore, Brazil, South Africa and India 
stood out as financial services exporters.  Combin ed exports of financial services from the top 
10 developing countries accounted for 95 percent of  total developing country financial services 
exports.   
16. Ten global market trends had been identified:  privatization and liberalization;  integration 
and consolidation;  growth of equity markets;  proliferation of financ ial products;  expanding 
opportunities in emerging markets;  offshoring a nd outsourcing;  regulatory developments (e.g. 
international standard-setting, a nd harmonization);  technology and secu rity concerns;  the emergence 
of Islamic finance;  and the expansion of microfinan ce.  The aspects that attracted particular attention 
at the meeting included the increasing diversity and volume of international trade in financial  S/FIN/M/55 
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  services;  the concentration of world financial se rvices markets;  the emergence of south-south 
banking;  the novel ways of delivering financial ser vices, including Islamic fi nance and microfinance, 
and their development potential;  and the fragility of wo rld markets, that called for better regulation.   
17. The session on financial services and development was the core of the meeting.  It was 
recognized that well-functioning financial systems co uld help economic development by, for example, 
improving productivity;  facilitating transactions;  maki ng credit available;  attracting foreign direct 
investment, and enhancing overall ec onomic efficiency.  It was also acknowledged that liberalization 
of financial services and enhanced competition c ould help by, for example, increasing efficiency, 
encouraging transfer of technology, and helping re- capitalize failing domestic firms.  Some concerns 
with liberalization were mentioned, such as cream skimming or cherry picking by foreign firms;  
capital-flight;  difficulties for local banks to f ace competition;  weaknesses of domestic regulatory 
frameworks;  infant industry concerns;  and the cost of financial crises.   
18. In the context of financial services and developm ent, the meeting participants also discussed 
national financial sector reform experiences in Afgha nistan, Argentina, Egypt, Iran, Kenyia, Malaysia, 
and Russia.  Lessons learned from those experiences included the following:  a) that market forces 
could bring benefits, but complex international financial transac tions require strong supervisory 
institutions;  b) that liberalization needed to be co mplemented by efforts to prevent contagion, and by 
policies to ensure competition and the enforcement of  prudential measures;  and c) that proper timing, 
pacing and sequencing between regulatory and in stitutional development on the one hand, and 
financial services liberalization on the other, was crucial.   
19. The issue of financial crisis received special  attention.  Lessons learned from current and 
previous crises included the following:  a) that unr estrained and unregulated private financial sectors 
could bring financial instability, a nd thus affect the rest of the economy;  b) that more and better 
regulation was needed, both at the national and inte rnational levels;  c) th at developing countries 
should build stronger linkages between banks, financ ial institutions and central banks, ensuring that 
the latter maintain their role as lenders of last reso rt;  d) that responses to crises should avoid ad-hoc 
actions;  and e) that monitoring could help prevent crises.   
20. The third session of the meeting addressed regulat ory issues.  Participants coincided that in 
order to create pro-development outcomes, financia l sector reform and liberalization needed to be 
supported by appropriately designe d policies (macroeconomic, prudentia l, regulatory, and supervisory 
policies).  The trend toward international approaches in the field of regulation was also highlighted.  
However, some warned about the challenges faced by developing countries regarding the effective 
participation in international standa rd setting, and the existence of standards that might not be in line 
with their needs.   
21. The meeting also looked at the different ro les of financial services regulation (ensuring 
financial stability, reducing social and economic costs of systemic risk, protecting lenders and 
borrowers) and the different types of regulation (e.g . principles-based or rul es-based).  The challenges 
faced in the field of regulation, particularly by  developing countries, included the choice between a 
single regulator or multiple regulators, the mana gement of shared responsibilities between home and 
host country regulators and supervisors, the prolifera tion of regulation at the international level, and 
the need for enhancing institutional capabilities.  
22. In its last session, the meeting addressed tr ade liberalization both at the multilateral and 
regional levels.  Recognizing that financial servi ces was a priority sector in trade negotiations, 
participants discussed some important issues, su ch as the approach to be taken to schedule 
commitments in financial services, the relationshi p between the prudential carve-out and enhanced 
commitments, the relationship between the sai d carve-out and future disciplines on domestic S/FIN/M/55 
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  regulation, and the GATS provisions on payments and capital transfers.  The meeting also considered 
regional initiatives for the liberalization of financial services.   
23. Suggestions were also made for UNCTAD's future  work.  In that regard, it was pointed out 
that UNCTAD expertise could be useful in strengt hening financial sectors and supply capacity in 
developing countries;  in assisti ng developing countries undertaking fina ncial sector policy reviews;  
in supporting developing countries in institution building, developing regulatory frameworks and 
participating in international standard-setting;  in assisting developing countries in reaping the 
benefits from the international trading system a nd trade negotiations;  a nd in supporting developing 
countries in harnessing regionalism for development.  
24. The representative of Pakistan
 asked what concrete measures were proposed during the 
meeting to prevent risks arising in one market fro m spreading into others;  and what advantages the 
existence of single regulators brought.   
25. The representative of UNCTAD  said that many concerns were indeed expressed at the Expert 
Meeting about the existence of new financial products and the potential ri sks that they could generate.  
It was not only a matter of toughening the current regulations.  In fact, since some of these products 
were not yet regulated, the need arose in many cases  to build the appropriate regulatory framework.  
Turning to the other question, she said that the emer gence of financial institutions combining different 
services (e.g. banking and insurance) gradually led to  the idea of having a single financial regulator.  
One of the main challenges raised by such a singl e regulator was how to combine different regulatory 
objectives for different financial sectors into a sing le regulatory authority.  Developing countries 
faced additional challenges, such as the lack of hum an resources.  Interestingly, the meeting benefit 
from the experience of Egypt, which was just about to implement such a regulatory approach.   
26. The representative of Brazil  drew attention to paragraph 8(e) of UNCTAD's background note 
for the Experts Meeting, which stated that forei gn financial services providers were more likely to 
invest domestic savings abroad rather than in th e local economy, and in so doing might exacerbate 
difficulties regarding domestic savings.  He asked  UNCTAD whether there wa s any evidence in that 
regard.   
27. The representative of India  made reference to Figure 3 in UNCTAD's background note, and 
asked how financial services were defined.  In par ticular, he wanted to know whether they included IT 
and back office services that were provided by deve loping countries to financia l institutions across the 
border.  
28. Turning to Brazil's questions , the representative of UNCTAD  said that the organization had 
not done any primary empirical research itself.  The concerns referred to in the background note had 
been drawn from different analyses.  One such anal ysis was actually mentioned in footnote 4 to the 
note.  Regarding the question raised by India, sh e said that the definition used included both banking, 
insurance and securities services, but excluded back office activities.   
29. The Committee took note  of the statements made and decided  to revert to this agenda item at 
the next meeting.   
E. TRANSITIONAL REVIEW UNDER SECTION 18 OF THE PROTOCOL ON THE ACCESSION OF THE 
PEOPLE 'S REPUBLIC OF CHINA  
30. The Chairperson  recalled that the Committee was manda ted to conduct this review pursuant 
to section 18 of the Protocol on the Accession of th e People's Republic of China.  For this year's 
review, written communications had been received in  advance from the following Members:  Chinese 
Taipei (S/FIN/W/57);  Japan (S/FIN/W/58);  th e European Communities (S/FIN/W/59);  Australia  S/FIN/M/55 
 Page 5 
 
 
  (S/FIN/W/60);  the United States (S/FIN/W/61);  and Canada (S/FIN/W/62).  He also drew Members' 
attention to the communication by the People's Re public of China in document S/C/W/290, which 
contained information required by Annex 1A of the Protocol on the Accession of the People's 
Republic of China, including relevant  information on financial services.  
31. Before replying to the questions raised by Members, the representative of China  took the 
opportunity to provide information about the regulati ons adopted since the last review, and about the 
increasing participation of foreign financial service  suppliers.  The Chinese government adopted the 
following rules covering banking, insurance and securities:  Rules for Implementing the Regulations 
on Foreign-funded Banks, Rules on Information Di sclosure of Commercial Banks, Rules Governing 
Trust Companies, Rules Governing Financial Leas ing Companies, Administrative Measures for 
Insurance Licenses and Measures concerning Foreign Stock E xchanges' Representative Offices in 
China.   
32. After the completion of transitional periods in  China's schedule of specific commitments, she 
said that the banking and insurance sectors in Ch ina were almost fully opened, while foreign 
companies could also hold as much as 49 percent equity shares in the securities sector.  Foreign 
services providers had seen their access to China's financial market significantly improved.  
33. In the banking sector, by the end of September 2007, 25 foreign banks ha d been incorporated 
in China and had opened 95 branches.  Foreign ba nks had also established 133 direct branches in 
China.  A large number of them came from the Un ited States, the European Communities and Japan.  
In the case of the United States, apart from 8 direct branches, there were also two subsidiary banks 
that had opened 10 branches.  In the case of the European Communities, in addition to 46 direct 
branches, there were 4 subsidiary banks with 27 local  branches in China.  As to Japan, 9 direct 
branches and 2 subsidiary banks (with 11 local branches)  were set up in China.  In terms of assets, by 
the end of December 2006, the total assets of foreign banks in China added up to around U$S 118 billion, an increase of 34.17 percent over the previous year.   
34. In insurance, by the end of May 2007, there were 46 foreign insurance companies in China, 
which had opened 130 operational branches.  In ad dition, about 200 representative offices had been 
set up by 135 foreign insurance institutions.  Fo reign insurance companie s reaped an insurance 
premium income of RMB 14.21 billion, which was 4.24 times higher than at the time of China's accession.  
35. She said that the securities sector was still in its in fancy, with a history of only 15 years.  By 
the end of September 2007, China had approved 8 joint-venture securities companies and 28 joint 
venture fund management companies.  Both Shan ghai and Shenzhen Stock Exchanges had 4 special 
foreign members, and 39 and 19 overseas securities institutions direc tly conducted B share business.  
These figures were a testimony to China's faithful implementation of its accession commitments.  She 
expressed the hope that other Members might follow China's example and provide market access to 
Chinese financial services suppliers by applying reasonable regulatory requirements and streamlining 
approval procedures.  In that regard, she expressed her country's appreciation to the United States for 
having granted a licence to a Chinese bank on 8 Nove mber 2007.  This became the first Chinese bank 
to get approval to open a branch in the United States in 16 years since 1991.   
36. She then turned to the questions submitted by Members prior to the meeting.  The questions 
had been grouped under six categories:  transparen cy, banking and related services, securities and 
related services, insurance, financial information services, and pensions.   
  S/FIN/M/55 
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  Transparency 
37. Regarding the publication of trade-related me asures in "China Foreign Trade and Economic 
Cooperation Gazette", she denied the assertion by so me Members that "only trade-related measures 
issued by MOFCOM, either on its own or jointly with other ministries or agencies, were published in the MOFCOM Gazette;  [while] trade-related measures issued by other ministries and agencies were 
not published in the MOFCOM Gazette."  In Ma rch 2006, the General Office of the State Council 
issued the " Circular of the General Office of the State Council of China on Bringing to Further 
Success the Work Related to the Implementation of Transparency Provisions in the Protocol on 
China's Accession to the World Trade Organization. "  That circular clearly stipulated that both central 
and local government agencies should send releva nt copies of all laws, regulations and other 
measures, as well as the drafts for which public comment was solicited, to MOFCOM for immediate 
publication in the "Gazette".  From 1 Octobe r 2002 to end-October 2007, 2,733 pieces of economic 
and trade-related laws, regulations and other measur es were published in the "Gazette".  Out of those, 
1,706 pieces of laws, regulations and measures (equivale nt to 63 percent of the total publication) came 
from other ministries and agencies as well as lo cal governments.  The "Gazette" was published 
regularly and the contents were readily availa ble on MOFCOM's website  (www.mofcom.gov.cn).  
Free electronic version by e-mail was provided to nearly 8,000 domestic and foreign consumers.  
38. On the provision of a reasonable period for pub lic comment, she replied that in 2006, China 
had promulgated and modified 4 la ws or regulations pertaining to or affecting trade in financial 
services.  At least one month was provided for public  comment before implementation.  Specifically, 
the Regulation on Compulsory Traffic Accident  Liability Insurance for Motor Vehicles  was issued on 
21 March 2006, and came into effect on 1 July 2006.  The period for public comment was 3 months 
plus 10 days.  The Law on Anti-money Laundering was promulgated on 31 October 2006 and took 
effect on 1 January 2007.  The period for public comment was 2 months.  The Regulation on the 
Administration of Foreign Funded Banks  was published on 11 November 2006 and entered into force 
on 11 December 2006.  The period for public comment was one month.  The Law on Regulation of 
and Supervision over the Banking Industry  was issued on 31 October 20 06 and became effective on 
1 January 2007.  The period for public comment was 2 months.   
39. She then turned to the questions raised rega rding the advance period for public comment on 
laws, regulations and measures formulated by Ch ina Securities Regulatory Commission (CSRC).  She 
explained that CSRC usually held various meetings  to introduce the background and content of the 
proposed regulations in order to pool opinions from all related parties before publishing the final draft 
with the invitation to comment.  Therefore, befo re the proposed regulation was published for public 
comment on official websites or newspapers, much  communication had alrea dy been conducted with 
relevant industries, interested parties, and the pu blic, and opportunities had been given for them to 
voice their opinions.  If the proposed measures involved more than one regulator, CSCR would solicit comments from all the relevant regulators in the process.  
Banking and related services 
 
40. With regard to the conditions required for foreign-funded banks conducting local currency 
business, Article 34 of the Regulation on the Administration of Foreign-Funded Banks  stipulated that 
an operative branch of a foreign bank conductin g local currency business should meet some 
requirements, inter alia "having operated in China fo r more than 3 years before the application" and 
"having been making profits for 2 consecutive year s."  These requirements were of a prudential 
nature.  Besides, there were additional conditio ns specifically listed in China's schedule of 
commitments.   
41. She said that the possibility of giving more  flexibility on long-term borrowing quotas to 
foreign invested banks was irrele vant to China's commitments.   S/FIN/M/55 
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  42. With regard to the issue of whether China pe rmitted foreign-funded banks to use the same 
structure of "second-tier" branches and sub-branches that was used by state-owned commercial banks, 
she said that according to the Regulation  on the Administration of Foreign-funded Banks  and the 
Implementation Measure, foreign banks could establish wholly -foreign-owned banks, Chinese-foreign 
joint venture banks and their branches in China.  Th e first two kinds of banks could establish branches 
in China.  The three forms of banks were author ized to establish sub-branches in the same city 
according to the provisions of the Administration of Establishing Service Outlets by Commercial 
Banks within one City.  There was no difference in the appr oval requirements for establishing sub-
branches in the same city for both Chinese and foreign banks.   
43. She also said that according to Article 85 of the Implementation Measures for the Regulation 
on the Administration of Foreign-funded Banks , 30 percent of the operating capital of a foreign bank's 
branch must be maintained in the form of inter est-bearing assets and be held at no more than three 
Chinese commercial banks within the territory of China that were recognized for sound performance 
and strong financial conditions.   
44. Regarding the limitations on fo reign ownership in a Chinese bank, she replied that China 
allowed foreign-funded banks to establish representa tive offices, branches, jo int ventures and wholly-
foreign owned banks (percentage of  equity ranged from 25% to 100%).  According to the Procedures 
for the Administration of Equity Investment of Ov erseas Financial Institutions in Chinese-funded 
Financial Institutions , the percentage of equity investment in a Chinese financial institution by an 
individual overseas financial institution was raised from 15% to 20%, while the aggregate percentage 
of foreign investment could reach 25%.  Such a fi nancial institution was still supervised and regulated 
as a Chinese-funded bank.  If the aggregate percenta ge of equity investment of multiple overseas 
financial institutions in a non-listed Chinese-f unded financial institution reached or exceeded 
25%，such a non-listed Chinese-funded financial institu tion must be regulated as a foreign-funded 
financial institution.  In China's view then, there w as no restriction on the equity of foreign investment 
in a Chinese banking institution.  The 25% threshol d was not a cap on foreign share;  it was only a 
criterion to determine the nature of a financial in stitution (whether a Chinese bank or a joint venture 
bank).  For foreign joint venture banks, 25% was the threshold for the participation of foreign equity, 
which was in compliance with Chinese horizontal commitment, i.e. "the proportion of foreign 
investment in an equity joint venture shall be no less than 25% of the regist ered capital of the joint 
venture".  Through this  Admwinistration , China allowed foreign equity below 25% to enter into the 
financial sectors, and that was a voluntary opening measure by China.  Having said that, she finally 
considered that foreign investment in Chinese-funde d financial institutions di d not relate to China's 
specific commitments.  
45. The minimum working capital requirements for direct branches of foreign banks were 
established taking consideration of their forms of organization, the risks of their business scope, and 
the status of China’s supervision and regulation.  China believed that the current requirement was 
reasonable.  With the changes of the factors mentioned above, China had reduced the minimum 
working capital requirements for branches twice, and streamlined its grades.  The newly revised 
Regulation  and Implementation Measures  further streamlined the requirements into two grades, i.e., 
those conducting foreign currency business shall ha ve a working capital of no less than RMB 200 
million or equal convertible curre ncy, while for those conducting institutional business in foreign 
currency and RMB, the minimum working capital shall be no less than RMB 300 million or equal convertible currency.  Those requirements were in line with the principle of prudential regulation.  
46. Commenting on some Members' statement that "China’s minimum working capital 
requirements are higher than in most other countries", she said that countries were independent to set 
their own requirements for regulation based on diffe rent conditions in different periods.  China was 
different from other Members in terms of its bank ing sector's structure, risk, market condition and 
regulatory framework, so it was improper to judge China with the criteria of other Members.  S/FIN/M/55 
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  47. Based on the above-mentioned reasons, she confir med that China did not intend to further 
reduce the minimum capital requirements for branches.  
48. She said that one-branch cap was in line with the principle of prudential supervision and 
regulation.  When transformed into a subsidiary, a foreign bank could still keep a branch to conduct 
large wholesale business.  She added that it was not  necessary to establish more branches besides the 
subsidiary.   
49. She explained that the restriction on retail RMB business faced by foreign banks' branches 
was a prudential requirement that took into consider ation the risks involved and that did not conflict 
with China's commitments.   
50. According to the Regulations , both foreign subsidiaries and branches in China were allowed 
to engage in local currency business.   In China's view, compared with  a locally registered subsidiary, 
a branch of a foreign bank was more risky due to the following reasons:  
(a) Firstly, many foreign banks in China were multinationals, and the Chinese 
government was unable to supervise and cont rol the risk arising from the parent bank 
of a foreign branch, and was unable to isolate that risk from its branch in China.  In 
1991, without any prior risk notification to the Chinese regulatory authorities, the 
Bank of Commerce and Credit International (BCCI) went bankrupt and its branch in 
China was suddenly closed down.  The Chinese regulatory authorities drew lessons from this accident and paid more attention to risk isolation.   
(b) Secondly, the laws on liquidation of many WTO Members favoured domestic 
depositors, and the deposit insurance syst em in many Members only allowed the 
participation of legal entities, including subs idiaries, while branches were excluded.  
Therefore, the deposits of Chinese citizens mi ght suffer more risk in a branch of a 
foreign bank than in a subsidiary registered in China.   
51. She added that it was a global trend now to strengthen the supervision of retail business 
conducted by foreign branches.  Besides, WTO did not  encourage trade liberalization at the expense 
of financial stability.  If a forei gn bank wished to engage in mo re RMB local currency business, it 
could transform its branches in China into subsidiaries.  
52. She then turned to the questions on payments and clearing services.  She said that China's 
specific commitments on payment services were reflected in "Banking and Other Financial Services" under "Financial Services" in Annex 9 of the A ccession Protocol.  The classifications concerning 
payments and clearing services were contained in items d) and j).  The commitments were based on 
the definitions contained in document (MTN.GNS/W/120 ）and the Annex on Financial Services.  
China did not commit itself on item j), i.e.  settleme nt and clearing services for financial assets.  The 
financial assets covered by item j) included but we re not limited to securities, derivatives and other 
transferable instruments.  Therefore, China was independent in determini ng the opening up, and the 
degree of the opening up, of settlement and clearing services.   
53. Approval permitting, a foreign invested bank w as allowed to provide internal clearing and 
settlement services for their clients.  However, pa yments services involving inter-bank clearing and 
settlement could only be provided by the central bank, i.e.  the People’s Bank of China (PBOC).  
Non-financial institutions established with the appr oval of PBOC were allowed to provide clearing 
services within their authorized business scope.   S/FIN/M/55 
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  54. With the permission of Chinese laws and regulatio ns, the foreign invested banks could decide 
by themselves whether to entrust the financial data  processing and transfer services related to their 
internal clearing and settlement to othe r suppliers of financial services.  
55. The representative of China said that the opening up of electronic payments and relevant 
services should be in line with the overall openi ng-up arrangements of China’s payments services 
market.  Generally, the policies and regulations rela ted to the opening-up of the payments services 
market applied differently to different types of foreign legal entities.  
56. According to China’s accession commitments, fo reign banking financial institutions could 
provide "all kinds of payments and money transmission services, including credit cards, charge cards, debit cards, traveller’s checks and bank drafts" on  condition that they were licensed by China’s 
banking regulatory bodies and that  they provided payments services within the authorized business 
scope.  All these services activities shall be in comp liance with Chinese relevant laws and regulations 
such as the Regulation on the Administration of Foreign-invested Banks .  China did not make any 
commitment regarding the supply of payments and clearing services by foreign non-financial 
institutions.  China’s relevant regulatory authoriti es had the right to establish and adjust measures 
applicable to the provision of such services by foreign non-financial institutions.  
57. She added that currently, payment cards issu ed by overseas banking financial institutions 
outside China could be used within the territory of China.  Payment cards issued by domestic banks in 
the territory of China, including local currency cards  and foreign currency cards, could also be used 
abroad.  
58. At present, RMB payment cards issued by banki ng financial institutions in the territory of 
China shall comply with the Chinese technical standa rds for payment cards.  As regards the foreign 
currency cards, the issuing banks could decide by themselves whether or not to adopt the Chinese 
technical standards for payment cards.   
Securities and related services 
 59. She then turned to questions regarding the equi ty participation limits on foreign credit rating 
agencies.  China’s Schedule of  Specific Commitments included "Securities" under "Financial 
services".  The commitments on credit reference and analysis only applied to items (a)-(k) under 
financial services, i.e.  banking a nd other financial services.  They did not apply to securities services.  
According to the Interim Measures for the Administration of the Credit Rating Business Regarding 
the Securities Market  that took effect on 1 September 2007, credit rating business in the securities 
market undertaken by credit rating agencies shall follow the provisions of the Measures  and those 
agencies shall submit their applicati ons to CSRC for business approval.  
60. Turning to issues related to mergers & ac quisitions (M&A), she explained that CSRC 
reviewed M&A applications by foreign firms acco rding to China’s commitments and the opening-up 
policy for the sector.  At the same time, in line with the  Provisions on Mergers and Acquisitions of 
Domestic Enterprises by Foreign Investors , relevant ministries such as MOFCOM also reviewed such 
applications.   
61. Turning to another question, she denied that th e CSRC had submitted draft rules to the State 
Council which would limit foreign investment in  publicly traded brokerages and cap foreign 
ownership at 20 percent.  
62. She then referred to the suspension of licences for securities companies.  Since its accession 
to the WTO, China had licensed five joint vent ure securities companies w ith foreign equity in 
accordance with the Rules for the Establishment of Foreign-shared Securities Companies .  In the S/FIN/M/55 
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  second half of 2004, CSRC began a comprehensive rec tification program of securities companies.  In 
order to implement this program, China suspe nded the licensing of newly established securities 
companies, including joint venture securities companies.   Such a policy was of a prudential nature and 
was applicable to the licensing of all newly establis hed securities companies.  It was in line with the 
relevant principles of the WTO.  Since the pr ogram was completed in August 2007, China would 
resume the licensing of newly established securiti es companies, including joint venture securities 
companies, before the end of this year.  
Insurance services 
63.  Regarding the questions on reinsurance, she e xplained that the requirements on ceding offers 
neither changed the conditions of competition in the supply of reinsurance services, nor exerted any 
negative effects on foreign reinsurance services or foreign reinsurance service providers, including the 
marketing of such a service.  China was of the view that the requirements were consistent with Article XVII of the GATS concerning national treatment.  
64. She also said that Article 22 of the Administration of Reinsurance Business Regulations  was 
based on the principle of prudential regulation, as pe r the requirement of the International Association 
of Insurance Supervisors (IAIS).  According to th e relevant rules and regulations, foreign insurers 
were allowed to engage in reinsurance business w ith their affiliates once their applications got 
approved.  
65. She then turned to the issu e of minimum capital requirements.  She said that prudential 
regulation was one of the most important principl es in financial regulation, to which financial 
regulatory authorities in various countries and regions  attached great importance.  Currently, there 
was no unified international standard for the set- up capital requirement of insurance companies.  
Besides, the China Insurance Regulatory Co mmission (CIRC) was imposing the same capital 
requirements on both domestic insurers and foreign insurers when they estab lish insurance companies 
in China.  
66. Referring to the questions on the equal treatment between domestic and foreign insurers with 
regard to branch/sub-branch licensing and geographic expansion,  China Protocol on the Accession of 
the People's Republic of China had honoured all its accession commitments, and vigorously expanded 
the opening-up of the market.  Foreign insurance co mpanies were regulated under the same rules and 
regulations as their Chinese counterparts when it came to branch/sub-branch licensing.  It was not the 
case that foreign insurers were treated in a di scriminatory manner vis-à-vis domestic insurers.  
Financial Information Services 
67. The representative of China said that Article 22 of the Measures for Administering the 
Release of News and Information in China by Foreign News Agencies  2006 clearly provided that this 
Measures  shall go into effect as of the date of promulgation.   
68. She then clarified that the "designa ted agent system" provided by the Measures  was aimed at 
allowing China's designated agenci es to provide good services for fo reign news agencies and help 
them and Chinese domestic users better comply with  Chinese laws and regulations in the field of 
industry, commerce, and taxation.  In other word s, the "agent system" was a prescribed procedure 
which, instead of hampering the business activities of foreign news agencies, would only make them more compliant with laws and regulations.  
69. With regard to the specific forms of the agent system, explicit provisions could be found in 
the standard text of the Agency Agreement  based upon the Measures .  Foreign news agencies could 
authorize the designated agency of China Economic In formation Service (CEIS) to act as their general  S/FIN/M/55 
 Page 11 
 
 
  agent, or find new clients jointly with the designa ted agency and sign tripartite agreements.  They 
could also engage in direct negotiations and sign  agreements with the users after signing agency 
agreements with the designated agency.  To sum up, as long as fo reign news agencies concluded 
agency agreements with the designa ted agency, they could provide direct services to users within the 
territory of China.  Therefore it was not a question of restricting the mass media.  
70. She then turned to the questions on the separa tion of the regulatory authority of Xinhua News 
Agency from its commercial operations.  She said in th at regard that that Xinhua was responsible for 
regulating the release of news and information in China by foreign news agencies.  While performing 
this duty, Xinhua was not allowed to seek benef its for itself.  Xinhua's Foreign Information 
Administration Centre was the specific body directly in charge of the regulation.  It was strictly 
separated from other departments of Xinhua in terms of personnel, business and finance.  Its 
expenditures were covered by the government th rough its budget.  As a matter of fact, it was a 
regulatory body with no involveme nt in any business operations.  She added that the designated 
agency of China Economic Information Service (C EIS) was mandated to turn in all the revenues 
gained through acting as the agent for foreign news agencies to the fiscal departments, according to 
relevant regulations or interna tional practices.  The income and expenses were run in a parallel 
manner.  That arrangement ensured that regula tion and commercial operations were separated.  
71. Of course, as being both a national and an inte rnational news agency, Xinhua competed with 
other news agencies worldwide.  While competi ng and cooperating with fo reign news agencies, 
Xinhua always abided by the basic principles of mu tual respect, equal-footed consultation, mutual 
benefits, long-term perspective, and mutual trus t, which were the consensus among foreign news 
agencies like Reuters, Associated Press and France Press.  Xinhua would by no means seek to boost 
its own competitiveness by harming the interests of third parties.   
72. The administrative target of the Measures  was "news agencies", or other news and 
information releasing news-agency-like institutes ga thering, editing, publis hing and providing news 
and information for newspapers, ra dio stations, TV stations, Internet websites, government agencies 
and other users.  
73. Upon its accession to the WTO, China did not take commitments on "news agency services".  
Although some foreign news agencies were providing "financial information services" for their Chinese users and claimed themselves to be "financi al information providers" or "financial services 
companies", their identities as "n ews agencies" remained unchanged in that they provided news 
packages, in which financial information was includ ed but was difficult to be viewed separately.  
Therefore, the foreign news agencies releasing news and information in the territory of China shall 
comply with the Measures .  
74. The information available did not show th at the quality and timeliness of financial 
information provided by the foreign news agencies had been affected as a result of regulation 
governing  Xinhua News Agency.  Subscriber in the territory of China, including financial institutions 
and enterprises, could receive the financial informa tion released by foreign news agencies in real 
time.   
75. So far, 12 foreign news agencies had obtained approval for the issuance of news and 
information in the territory of Chin a pursuant to the 2006 Measures.  
76. She also said that to ensure the confidentia lity of commercial information and protection of 
trade secrets and intellectual property, Xinhua had al ways strictly kept the business secrets of the 
foreign news agencies under regulation.  Excep t for the staff of the Foreign Information 
Administration Centre, nobody could refer to the documents, news and information released daily by 
foreign news agencies.  Besides, Xinhua protected  the intellectual property rights of foreign news S/FIN/M/55 
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  agencies in earnest compliance with  the relevant provisions in the Measure , which was also one of the 
goals of its implementation.   
77. Finally, she said that there were no statistics available for the moment on the number of 
branches of foreign institutions established in China.  
Pensions 
78. Referring to the application process for enterpri se annuities licenses, she said that China had 
been encouraging and supporting the participati on of foreign investment in the Chinese pension 
market so as to learn from the management e xperiences of foreign companies coming from mature 
pension markets abroad, and to improve the level and efficiency of Chinese pension management.  
With regard to the application and approval processe s, a financial institution could apply for relevant 
qualifications as long as it was registered in the te rritory of China and approved by the financial 
regulatory authorities.  China maintained a leve l playing field among domestic and foreign banks, 
securities firms, asset management companies, and in surers.  In 2007, 82 institutions (26 with foreign 
participation) submitted their applications.   
79. Turning to the review by functional regulator s (CIRC, CBRC, CSRC) during the application 
and approval process, according to the Trial Measu res for the Management of Enterprise Annuities 
Fund and the Interim Measures for the Qualificat ion Accreditation of Enterprise Annuity Fund 
Management Institutions, financial institutions applying for the qualification of corporative 
depositary, trustee or investment manager shall firs t get the approval of rele vant financial regulatory 
authorities.  The Ministry of Labour and Social Security (MOLSS) had no authority for examination and approval, it could only make accreditations for market access of enterprises annuities.  The review 
made by functional regulators (CBRC, CSRC and CIRC) could strengthen the risk control of 
institutions engaged in enterprise annuities fund, pr omote prudential operation and self-discipline, and 
safeguard the welfare of the beneficiary.  
80. She confirmed that MOLSS licensing procedur es enabled enable foreign and domestic 
companies to apply and be approved for such a li cence covering an integrated package of enterprise 
annuities services.  For instance, certain institutio ns could provide simultaneously trustee, account 
management and investment management servic es;  different corporate bodies under the same 
financial group could also provide  simultaneously trustee, account management, banking trusteeship, 
and investment management services at the same time.  
81. The representative of the European Communities
 said that they still had questions and 
remarks.  Firstly, regarding branch  licences in insurance, China expl ained that there was no difference 
in the treatment granted to foreign and domestic insurers.  However, according to the European 
industry, foreign companies experienced much more  difficulties than Chinese institutions.  Secondly, 
according to China, the waiting periods for establis hment were motivated on prudential reasons.  
However, he questioned whether these requirement s were prudential in all instance since these 
waiting periods applied to different kinds of institu tions that had been operating in China for a long 
time.  To the European Communities, these seemed to  be additional transition periods that China had 
not scheduled.  Thirdly, he sought further inform ation on whether any foreign bank had received 
licences for sub-branching.  Fourthly, he sought  further clarification on whether foreign bank 
subsidiaries could actually accept these 30 percent capita l deposits referred to in the written questions.   
82. Fifthly, he disagreed with China's statemen t that the issue of the 20-25 percent caps on 
foreign equity was not related to China's commitmen ts.  In his view, these equity caps were indeed 
related to China's commitments.  Sixthly, the re presentative of China said that the one-branch limit 
was also of a prudential nature, and that more bran ches were not necessary.  The representative of the 
European Communities could not understand however the prudential rationale for this measure.  In his  S/FIN/M/55 
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  view, it looked more like an economic needs test.  Finally, regarding financ ial information services, 
he noted China's response that it had made no comm itments on news agencies services.  However, in 
his view, that was not the point, since the questi ons raised by the European Communities and others 
related to commitments on financial information services (one of the subsectors under Financial 
Services).  He encouraged China to provide more detailed replies to the questions raised by the 
European Communities.   
83. The representative of the United States said that her country placed great importance on the 
Transitional Review Mechanism for China, whic h gave Members an opportunity to assess the 
progress made by China in complying with its WTO obligations.  The United States had a number of follow-up questions on areas that were not sufficien tly addressed in China's initial statement.   
84. Regarding transparency, she asked how many of the measures published in the MOFCOM 
gazette pertained to financial services.  Secondly,  she asked whether the tr end to seek public comment 
on draft measures could be made a more regular asp ect of China's regulatory framework.  The United 
States was expecting a more uniform method for seeking public comment on draft regulations.  For example, as noted in one of the questions previously raised by the United States, although CSRC had 
a system of advance notice and comment, the short period foreseen for comments – 7 days – made it 
really difficult for interested persons to review su ch drafts and provide comments that might be useful 
to CSRC.  
85. She then turned to insurance servi ces.  With regard to China's regulation on internal branching 
for life and non-life insurance companies, she said th at even though China had reported that it applied 
national treatment to internal branching, the United States still had some concerns that in fact foreign 
subsidiaries, whether in the life or non-life segments of the market, did not enjoy the same rights in 
practice as Chinese domestic companies regarding thei r ability to branch internally.  She explained 
that foreign companies did not have any assurances  that they would be able to submit approval 
requests either on a consecutive or on a concurrent  basis to obtain multiple approvals for internal 
branching.  In fact, at least for life insurance, China had two separat e sets of regulation, one applying 
to Chinese domestic companies and another one appl ying to foreign companies;  and the latter did 
have different and much a longer timeframes in di fferent provisions.  She asked the following:  If 
China's intention was to apply national treatment to  foreign companies in this area, why would it be 
necessary to have separate regulations?  The United States would also appreciate if China could answer another question contained in its submissi on regarding the minimum capital requirements that 
would apply for each internal branch.  In othe r words, she asked why it was necessary to impose 
additional minimum capital requirements for internal  branches given that the subsidiaries themselves 
must already post very high levels of minimum capital.  
86. The representative of the United States also sought further information on an issue not 
touched upon in China's statement – the regulation of suppliers of political risk insurance.  This 
insurance was a part of the non-life lines of busines s.  It was the United States' understanding that 
under the current regime, China only allowed one  company, a Chinese state-owned company, to 
supply political risk insurance.  The United St ates would appreciate information on how China 
planned to modify its regime to allow competition in  this very important sector of insurance, and on 
how China would fully meet its GATS obligations in this area.  
87. Regarding reinsurance, while noting China's co mment that foreign insurance companies were 
able to engage in reinsurance transactions with their affiliate s, the Untied States sought a more 
detailed reply to its questions.  She explained that  in last year's transitional review, China had 
mentioned that under the 2005 reinsurance regulati ons, it did not impose a requirement for direct 
insurers to source only with companies that were established in China;  however, China also talked 
about a right of first bid foreseen in those regula tions.  The United States sought more information on 
how this right of first bid operated in practice and whether it would require foreign insurance S/FIN/M/55 
Page 14  
 
  companies to offer reinsurance contracts to reinsu rance companies located in  China before seeking a 
cross border supplier of reinsurance.   
88. She said that China's statement did not address the questions regarding the management of 
assets by insurance companies located in China.  The United States had two questions in that regard.  
Firstly, under CIRC's 2004 regulati ons for insurance asset management  companies, China maintained 
a one-year prior experience requirement for insura nce companies to establis h an insurance asset 
management company.  The United States encouraged  China to take into account global insurance 
international operating experience to fulfil such requirements and would also seek assurance from 
China that it would not prevent insurance compan ies from directly manage their own assets.  
Secondly, under CIRC's provisional measures issued in 2004, China maintained a high threshold for 
foreign insurance companies to be able to invest their foreign exch ange in overseas equities or other 
holdings.  At last year's review, China explained that this requirement was in place to avoid excessive 
overseas investment.  However, since only the largest  companies in China - for the most part domestic 
Chinese companies - had this right, the United States  asked how such regulations would fulfil China's 
policy objectives.  She also encouraged China to ta ke into account the assets of the foreign insurer's 
parent company to fulfil such asset threshold requirements.  
89. As part of its submission, the United States ha d a number of questions regarding the possible 
structure and operation of China Post as an insura nce supplier, and its anticipated treatment under 
Chinese law in comparison with other suppliers of  insurance services.  However, having heard 
nothing from China on this issue,  she asked whether China could provide such information at today's 
meeting.  The United States had also a number of questions regarding the legal structure, product 
offering, geographic scope, and regulatory oversight of this potential new entity.  
90. The United States also sought an update on the status of China's revision to its overall 
insurance law.   
91. She then turned to banking and related servi ces.  She supported the comment made by the 
European Communities regarding Chinese policies th at would limit the equity shareholdings in 
Chinese invested banks.  She had understood China to say that any such limitation did not relate to 
China's GATS commitments, whereas the United Stat es was of the view that any such limitation 
definitely did relate to China's GATS commitments.  She urged China to reflect on this issue further.  
She also asked whether there had been any instances in which those equity restrictions might have 
been exceeded, in other words, whether any particul ar company had been allowed to hold more than 
20 percent or whether the equity share of total fo reign investment had been allowed to go beyond 25 
percent in any instance.  
92. Regarding the operation of foreign bank br anches, while acknowledging the information 
provided by China on the limitations applying to deposit-taking activities, she sought further 
information on whether China was considering adju sting the current RMB 1 million threshold to the 
level that was being considered for its deposit in surance - that is, lowering the level to the one 
considered for deposit insurance.  She also said that China had not provided any information on 
lending activities, that is, what rights foreign bank branches had regarding retail lending.  The United 
States asked for further information in that regard , and on how China intended to bring the scope of 
any such business limitations into conf ormity with its GATS commitments.  
93. Regarding payment and money transmissions services, the United States was of the view that 
China should establish a concrete plan to fully lib eralize these services.  China had mentioned in 
today's session that banks and financial providers w ould be able to issue credit cards and debit cards, 
including for domestic currency transactions.  Howeve r, the United States believed that it was just as 
important  that China liberalized associated servi ces so that banks and other financial institutions  S/FIN/M/55 
 Page 15 
 
 
  could provide the underlying electronic payments a nd related auxiliary services needed for use of 
such credit and debit cards.  She asked fo r further information on this matter.   
94. She then turned to securities and related servi ces.  She noted that China  had spoken on the 
issue of credit rating agencies and mentioned that there were regulations enacted on 1 September 2007.  She asked however whether those regulations would apply any equity cap on 
companies that seek to supply foreign credit rating agency services.  Since such services fell under the 
generally understood definition of auxiliary financial services, and since China had no limitations on 
such services in its schedule, the Unite d States asked China to give careful consideration to this issue.  
95. China also mentioned that it imposed a suspen sion for new licences in the securities sector 
although it finished that programme in August 2007, and had since been considering some relaxation 
before the end of this year.  The United States was very concerned by the fact that foreign companies 
were currently facing these limitations on their ability to conduct business in the securities sector, whether it pertained to acquisition of existing state-owned securities companies or to the establishment of new securities companies.  The Un ited States would welcome quick action by China 
to fully meet its commitments in this area.  
96. Regarding financial information services, she not ed that China had talked about regulations 
that applied to foreign news agencies services.  Ho wever, the United States' concern was that any such 
regulations were also affecting foreign providers of financial information services, i.e., the Xinhua 
measures of 2006 would preclude foreign providers  of such financial information services from 
contracting directly with, or provi ding financial information services directly to, Chinese clients.  
These new restrictions did not apply to domestic pr oviders and they also contrasted with rights 
enjoyed by foreign providers well before China' s accession to the WTO.  The United States sought 
confirmation from China that it was not intending to put in place any measure that would diminish the 
access that had been enjoyed by foreign supplie rs of financial information services.   
97. Also with regard to financial informa tion services, she noted that China's GATS 
commitments required the creation of an independent  regulator for this sector.  However it was her 
understanding that China currently allowed Xinhua to  be involved in regulation.  That was very 
worrying, she added, since Xinhua was both a major market competitor and the regulator of foreign 
financial information services in China.  The Un ited States asked when would China implement its 
commitments to create a truly independent regulator for this sector.  
98. Finally, turning to the issue of pensions and en terprise annuities, she noted that there were a 
number of regulators involved in regulating this sect or.  She was aware that the functional regulators 
from CBRC, CSRC, and CIRC were involved, as well as th e ministry of Labour itself.  But the United 
States would appreciate further information from the Chinese delegation about the nature of the 
regulatory review conducted by the functional regulator s.  The United States was of the view that any 
such regulatory oversight and review should be comple ted quickly in according to transparent criteria.  
However, she was concerned that the current regime  in China was not fully respecting these ideas.   
99. The representative of Japan
 said that, with regard to reinsu rance, Chinese officials had been 
reported as stating that China suspended the Ad ministration of Reinsurance Regulations which 
required direct insurance companies to solicit rein surance offers amounting to more than 50 percent 
from locally established companies.  Japan would lik e to know whether that decision had been already 
implemented and whether it was applied on an MFN b asis.  Secondly, it had also been reported that 
China intended to liberalize deali ngs in futures of financial produc ts under certain conditions.  Japan 
sought confirmation of that news and whether the new measures would be applied on an MFN basis.  
100. The representative of Canada  noted that the existing regulatory framework in China did not 
seem to fully meet the spirit and in tent of China's commitments.  In particular, he underlined that S/FIN/M/55 
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  while China's commitments permitted branch expansi on of insurance firms consistent with the phase-
out of geographic restrictions, the last of which were removed in 2004, it appeared that new branch approvals for domestic insurance firms were stil l proceeding more expeditiously than those of 
domestic insurers.  Canada also sought further information on China's requirements for insurance 
firms seeking to set up asset management compan ies.  In particular, Canada sought a better 
understanding of the motivation behind the intro duction of regulations on the establishment of 
insurance asset management companies that seemingl y placed foreign insurers at a disadvantage vis–
à–vis domestic insurers.  Regarding the provision and transfer of financial information, Canada sought 
to obtain a better sense of how the measure issued by Xinhua over the past year contributed to ensuring that foreign financial information service providers received national treatment on par with 
Chinese firms.   
101. Finally, although not part of Canada's formal submission, he sought further information on 
the most recently published guidelines with respect to foreign investment.  Canada 's particular interest 
lied in the guidelines applying to the financial services industry.   
102. The representative of China 
expressed her surprise to hear that her statement had raised so 
many questions because, as indicated in her initial re marks, the questions had been received very late 
and, since Chinese is not a working language in the WTO, her delegation had first to translate all the 
questions into Chinese, and then translate the answers from Chinese in to English.  It was therefore 
quite natural that some of the questions had not been addressed in the initial statement.  
103. She said that the follow-up questions on insuran ce, on reinsurance, on  the waiting period for 
establishment in the banking sector, on  the issue of  sub-branching, on the 30 percent limitation for 
capital deposits, on the equity cap of 20 and 25 per cent, on the measures concerning the operations of 
news agencies in China, on the minimum capital requirements, and on securities services had been, in 
her view, already covered in the initial statement.  With regard to transparency, she explained that no 
statistics were available on how many financial services-related decisions were sent to MOFCOM for 
publication.  She added that it w as beyond her team's authority to pr ovide responses to the questions 
on the timeframes provided for obtaining public comment on draft measures and regulations.   
104. She added that since the MFN-related questions  raised by Japan had not been included in 
Japan's submission, the Chinese delegation had not prep ared  appropriate replies.  She also said that 
she was not aware of new guidelines on foreign inv estment being issued, as stated by Canada.  She 
was therefore not able to provide any specific inform ation in that regard.  She finally asked Members 
to submit their questions in writing so that they  could be forwarded to the relevant regulatory 
authorities in China.  
105. By way of conclusion, the Chairperson  invited the Committee to take note of all the 
statements made.  Secondly, he requested the Secret ariat to prepare a report, to be presented to the 
Council for Trade in Services.  It would be a factual report, stating basically that:  
(a) pursuant to section 18 of the Protocol on the Accession of the People's Republic of 
China, the Committee had conducted a review of the implementation by China of the 
WTO Agreement and of related provisions of the said Protocol, in the meeting held 
on 12 November 2007;  
(b) written communications had been receiv ed from six Members, namely Australia, 
Canada, Chinese Taipei, the European Comm unities, Japan, and the United States;  
and 
(c) the details of the discussion, including a ll the interventions made at the meeting, 
 would be found in the meeting report, to be issued as document S/FIN/M/55.   S/FIN/M/55 
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  106. The Committee so decided .   
F. DATE OF THE NEXT MEETING  
107. The Committee agreed  to hold its next meeting together w ith other services subsidiary bodies.  
The exact date would be announced in due course.   
G. OTHER BUSINESS  
108. There was no issue raised under this agenda item.  
 
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