CHINA – MEASURES AFFECTING FINANCIAL INFORMATION SERVICES AND FOREIGN FINANCIAL INFORMATION SUPPLIERS
Document: Joint Communication from China and Canada
Date: 9 December 2008
Document codes: WT/DS378/3; S/L/337
Complainant: Norway
Respondent: EU
Third parties: Canada, China, Hong Kong, Japan, South Korea, U.S.
Dispute stage: Panel
Agreements cited: Art. 5, 5.1, 5.2, 5.3, 5.4, 2, 2.1, 2.6, 6.10, 2.2, 2.2.1, 2.2.2, 2.2.1.1, 6.8, Annex II, 3, 3.1, 3.2, 3.4, 3.5, 3.6  Anti-dumpingArt. VI:1  GATT 1994Art. 4.1, 9, 9.1, 9.2, 9.3, 9.4  Anti-dumpingArt. VI  GATT 1994Art. 6.2, 6.4, 6.5.1, 6.7, Annex I, 6.9, 12.2, 12.2.2  Anti-dumping

CHINA – MEASURES AFFECTING FINANCIAL INFORMATION SERVICES AND
FOREIGN FINANCIAL INFORMATION SUPPLIERS

Joint Communication from China and Canada

The following communication, dated 4 December 2008, from the delegation of China and the
delegation of Canada, is circulated at the request of those delegations.

 The Governments of the People's Republic of China and Canada wish to notify the Dispute
Settlement Body that we have signed the att ached Memorandum of Unde rstanding regarding the
matter raised by Canada in the dispute (WT/DS378).

 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
John Gero
Ambassador
Permanent Mission of Canada

Memorandum of Understanding Between the People's Republic of China and
Canada Regarding Measures Affecting Foreign Suppliers
of Financial Information Services

 Whereas Canada requested consultations with th e People's Republic of China ("China") at the
 ("WTO") on 20 June 20 08 regarding certain measures affecting foreign
suppliers of financial information services (DS378);

Whereas China and Canada held constructive c onsultations in Geneva on 20 August and 25
September 2008;

China and Canada have agreed as follows:

1. During the consultations, Canada described its concerns 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 regula tor 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 wi th all relevant Chinese laws, regulations,
and departmental rules.
2. Canada also described its concerns about Ch ina's measures relating to foreign financial
information service suppliers, including through the Notice Authorizing Xinhua News Agency to
Implement Centralized Administration Over the Re lease of Economic Information in the People's
Republic of China by Foreign News Agencies 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 Information 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 financ ial information services. China further confirms that this
new licensing system will conform to the co mmitments 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 da te of the implementation of the new
measures, China will permit foreign supplie rs of financial information services to
supply financial information services, direc tly or indirectly, without requiring the
involvement of any agent or intermediary, and will not impose any licensing
requirements or similar approvals on service consumers in order for them to receive
financial information services from foreign suppliers.

 S/L/337/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 iden tifying each subscriber to the financial
information service within thirty (30) days after the conclusion of the subscription
contract with that subscriber, but will not require 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 Administrative 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 suppliers of financial information services will
be subjected to the administration of th e new regulator in accordance with this
Memorandum of Understanding.
3. Canada 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 prot ect 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 w ill not otherwise disclose the information to any
unauthorized person.

4. During the consultations, Canada described its concerns about China's prohibition on foreign
suppliers of financial information services operatin g 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, financial transactions, financial decision
making, or other financial activities. Financial in formation services 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 Canada agree to communicate in a timely manner with respect to the
implementation of the actions described above, in cluding 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.

S/L/337/Add.1

8. This Memorandum of Understandi ng is without prejudice to the rights and obligations of
China and Canada under the WTO Agreement.
 Done in Geneva, 13 Novemb er 2008, in two original 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 Canada: