CHINA – MEASURES AFFECTING FINANCIAL INFORMATION SERVICES AND FOREIGN FINANCIAL INFORMATION SUPPLIERS
Document: Joint Communication from China and the United States
Date: 9 December 2008
Document codes: WT/DS373/4; S/L/320
Complainant: EU
Respondent: U.S.
Third parties: Australia, Brazil, Canada, China, Taiwan, India, Mexico, New Zealand, Norway
Dispute stage: Appellate Body
Agreements cited: Art. I, II  GATT 1994Art. 3.7, 22, 23.1, 23.2, 21.5  Dispute Settlement Understanding (DSU)

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 circulated 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 (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

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
 ("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 services. 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 financial 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.

 S/L/320/Add.1

(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 financial 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 suppliers 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 presence, 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 rights and obligations of China
and the United States under the WTO Agreement.

S/L/320/Add.1

 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: