CHINA – CERTAIN MEASURES ON THE TRANSFER OF TECHNOLOGY REQUEST TO JOIN CONSULTATIONS
Document: Communication from Japan
Date: 21 January 2019
Document codes: WT/DS549/6
Complainant: EU
Respondent: China
Dispute stage: Consultation
Agreements cited: Art. 3, 28.1(a), 28.1(b), 28.2, 33, 39.1, 39.2  Intellectual Property (TRIPS)Art. X:3(a)  GATT 1994Annex Z, Art. Para 2(A)2, Part I, para. 1.2,   Protocol of Accession

CHINA – CERTAIN MEASURES ON THE TRANSFER OF TECHNOLOGY
REQUEST TO JOIN CONSULTATIONS
Communication from Japan
The following communication, dated 18 January 2019, from the delegation of Japan to the delegation
of China, and the delegation of the European Union, is circulated to the Dispute Settlement Body in
accordance with Article 4.11 of the DSU.

I wish to refer to the consultations requested by the European Union pursuant to Article 1 and
Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes
("DSU"), Article XXII of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") and
Article 64 of the Agreement on Trade-Related Aspects of Intellectual Property Rights
("TRIPS Agreement") in the commu nication circulated to WTO Members on 8 January 2019 titled
"China - Certain Measures on the Transfer of Technology " (, ,
). My authorities have instructed me to notify the consulting Members and the Dispute
Settlement Body of the desire of Japan to join in these consultations, pursuant to paragraph 11 of
Article 4 of the DSU.

The subject matter of the consultations requested by the European Union relates to Chinese
measures pertaining to the transfer of foreign technology into China. Japan has a substantial trade
interest in the consultations the European Union requested for several reasons.

As stated in its communication dated 11 June 2018 (), Japan has held and expressed
its concerns for several years with respect to the legal instruments identified in the request for
consultations by the European Union. The legal instruments include the relevant provisions in the
Regulations of the People's Republic of China on the Administration of the Import and Exp ort of
Technologies, which mandate discriminatory contractual terms in technology transfer agreements
between foreign and Chinese partners that are disadvantageous to foreign partners, as well as the
provisions in the Regulations for the Implementation of the Law of the People's Republic of China on
Chinese-Foreign Equity Joint Ventures, which deny foreign patent holders the ability to enforce their
intellectual property rights against Chinese joint -venture parties after their technology transfer
contract expires.

Also, as again set out in its communication dated 11 June 2018 (WT/DS549/2), Japan is one of the
major exporters of technology to China as well as one of the major foreign countries whose nationals
possess patent rights in China. Japan’s stake in this regard relates to various business sectors,
including auto industry and biotechnology industry that are also sectors and industries covered by
the issues the European Union raises in its request for consultations.

For these reasons, Japan has a subst antial trade interest in the consultations requested by the
European Union, and wishes to join in the consultation.