U.S.-China Trade: Summary of 2003 World Trade Organization Transitional Review Mechanism for China Page: 71 of 101
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Summary of issues by theme Raised by Raised by China's response
United other WTO
Rationale for reclassification of several Written,a Regarding the classification of
telecommunications services from the Verbalg telecommunication services, the Chinese
value-added category to the basic representative noted that it was a complicated
category, contrary to widely accepted issue not only for China, but also for other
international practice. WTO Members, especially given the rapid
Explanation of the practice that certain EC - Writtenb development of contemporary science and
basic telecom services will be managed technology. He further noted that Members
as value added services under the new had their own classifications based on the
Telecom Catalogue of Business different level of development in telecom
Categories. industries, unique domestic situations and
different approaches to regulate the market.
He indicated that the MII had adjusted part of
the previous categories and had republished
the revised Catalogue of classification in April
2003 in response to new developments.
According to the new catalogue, some basic
telecommunications services would be
managed as value-added services. The
operator qualifications and daily management
of these basic telecommunications services
would be administered with reference to
relevant requirements for value-added
Request for relevant text on Ministry of EC - Writtenb
Finance's management of State
participation in existing companies.
Timetable to revise the Regulation on EC -
the Administration of Foreign Invested Written,b
Telecom Companies to allow foreign Verbalg
operators to choose partners in other
Rationale for foreign investors to meet EC - Writtenb Due to the need for complicated expertise and
minimum capital and experience the new services emerging in the telecom
requirements; different requirements for industry, this regulation required that the
operator owned only by Chinese major Chinese investor in a foreign-invested
nationals. enterprise should have technical personnel
suitable for the operation of the enterprise in
order to better protect the interest of investors
and consumers and to ensure the sound
development of the telecom industry. This
requirement also applied to domestic
enterprises, which was in line with the national
treatment principle. This regulation required
that the major Chinese investor should invest
at least 30 percent of the total capital shared
by all the Chinese investors in order to protect
the interests of the Chinese and foreign-
invested telecom enterprises. These
requirements increased the liability of the
Chinese investors and therefore alleviated the
risks on the part of foreign investors.
Treatment of existing operators under EC - Writtenb
the regulation on foreign-invested
Government organizations that will EC -
issue measures to determinate Written,b
geographical scope in which foreign- Chinese
invested telecom enterprises may Taipei -
GAO-05-209R U.S.-China Trade
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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/m1/71/: accessed May 24, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.