U.S.-China Trade: Summary of 2003 World Trade Organization Transitional Review Mechanism for China Page: 61 of 101
The following text was automatically extracted from the image on this page using optical character recognition software:
Summary of issues by theme Raised by Raised by China's response
United other WTO
the implementation of provisions on foreign
currency balancing, local content, export
performance requirement and mandatory
technology transfer. (Writtenc)
On February 11, 2002, State Council of China
promulgated newly-amended the Regulation on
Guiding the Foreign Investments. Afterwards,
strictly according to WTO rules and commitments
upon accession to WTO, China amended the
original Guiding Industrial Catalogue for Foreign
Investment in a comprehensive manner. It was
made effective as of April 1, 2002. The
Catalogue lists 371 industries and divides them
into three categories including "encouraged,"
"restricted" and "prohibited" for foreign
investment, of which 262 are encouraged, 75
restricted and 34 prohibited. All the industries not
listed in the Catalogue are considered as
permitted. The contents in relation to
liberalization committed by China upon
accession are listed in the Attachment to the
Catalogue. In addition, requirement for
technology transfer has been eliminated in
approving the foreign investment. (Verbald)
Amendment of contractual EC - China has revised the Law of the People's
arrangements that contain TRIMs- Writtenb Republic of China on Chinese-Foreign Equity
incompatible commitments and Joint Venture; Law on Chinese-Foreign
obligations in such a way that they will Contractual Joint Venture; and Law on Wholly
contain obligations which are fully Foreign Owned Enterprises and their respective
compatible with the TRIMs Agreement; implementing regulations. The revision includes
indication of how China might institute the elimination and cessation of enforcement of
such amendments. requirements on trade and foreign exchange
Contracts which may contain TRIMs EC - balancing, local content, export performance,
incompatible commitments and Writtenb compulsory technology transfer, and etc. This
obligations will not be enforced before revision has got extensive media coverage.
domestic law courts or other Chinese government respects freedom of
administrative tribunals or bodies and contract. If the articles of association or contract
that the TRIMs-incompatible of enterprises with foreign investment approved
commitments and obligations are to be before amendment of the relevant laws contain
considered null and void. the terms on foreign exchange balance, local
contents, and export performance, and the
investors on both sides can reach an agreement,
they may file the application to relevant
authorities to alter or nullify those terms. The
application will be processed timely and in a
manner consistent with TRIMs agreement.
Source: GAO analysis of WTO documents.
aCommunication from U.S.: G/TRIMS/NV/32; dated 9/23/03.
bCommunication from European Communities: G/TRIMS/NV/31; dated 8/14/03.
cCommunication from China: G/TRIMS/NV/34; dated 10/1/03.
dCommittee report detailing verbal statements made during meeting: G/L/648; meeting dated 10/3/03.
GAO-05-209R U.S.-China Trade
Here’s what’s next.
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
United States. Government Accountability Office. U.S.-China Trade: Summary of 2003 World Trade Organization Transitional Review Mechanism for China, text, January 25, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc301428/m1/61/: accessed May 23, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.