Questions by the following delegations had been submitted in writing at least two weeks in advance of the meeting and had been transmitted to the delegation of China: the United States; Switzerland; Japan; Chile; Australia; New Zealand; Republic of Korea; India; Canada; Hong Kong, China; Mexico; Turkey; Malaysia; Chinese Taipei; Argentina; Brazil; Bolivia; Colombia; the European Communities; Costa Rica; and the Philippines. Opening statement by the Representative of The People's Republic of China
The representative of China stated that his delegation had prepared initial responses for around 400 of the over 1,100 questions received; these would be circulated shortly. I t had worked so hard because it was convinced that the objectives of reform and opening up and building a socialist market economy coincided with WTO principles and objectives based on open and market-oriented policies. While China’s export growth over the past four years had provided jobs and added dynamic to its economic growth, it had also brought enormous benefits to investors from all over the world.
To fulfil its WTO accession commitments, China had undertaken many capacity-building programmes on WTO-related subjects, as well as publicity and educational campaigns to enhance general awareness of WTO principles to generate greater public support. At the same time, China had been providing overseas consumers with high quality goods at very good prices, which had helped to keep inflation rates low in importing countries, and had contributed to job creation and economic growth in Members that exported equipment, materials, and other inputs to China. China would provide US$10 billion in concessionary loans and preferential credits over the next three years, to developing countries to improve infrastructure development and promote business partnerships; it would increase medical assistance to developing countries, including by providing anti-malaria drugs and other medicines, medical facilities and by training medical staff. Premier Wen Jiabao's work report to the fourth plenary session of the 10th National People's Congress held in March 2006 stated that the government would continue to expand domestic demand so that consumption could play a bigger role in economic growth. To close the gap and promote harmonious development, the Government had implemented regional development strategies over the past few years: support to underdeveloped regions had been increased, and strategies had been launched for western region development and revitalizing the old industrial bases in the north east. 7% in 2005; all of its tariffs were bound at ad valorem rates; and applied rates were generally at, or close to, bound rates, contributing to a stable and predictable system.
China had done much work to review its standards: around 32% of China’s national standards were based on international ones; it planned to revise around 44% to bring them into conformity with international standards and abolish another 11. They noted that China had become one of the world’s largest recipients of FDI, and that its rapidly increasing trade had made it an important player in the world, and its accession to the WTO had made it an important Member of the multilateral trading system. Another area of concern was services, in particular financial and telecommunications services, where the United States had encountered protectionist and non-transparent policies, delays in the issuance of regulatory measures, and the use of entry threshold requirements – particularly capital requirements – that exceeded international norms. The Secretariat report noted that there had been a shift from direct intervention to indirect policy tools, to channel resources into certain activities, which the Government considered to be important for China's continued growth and development. He believed that China need ed a vast amount of resources to secure its development and asked how China could reduce energy consumption by 20% in five years, and whether efficient energy use was sufficient to reach this goal. The representative of India applauded China's success in lifting 400 million people out of poverty; this was a clear and unambiguous statement to the developing world, that economic openness, combined with the right social and regulatory policies, could successfully combat poverty. Prior requirements of SPS protocols were a deterrent to exports and, in India's experience, were not being applied on a MFN basis, as goods from some countries were permitted entry without any SPS protocols. China was one of the most important external investors for Hong Kong, China, accounting for 26% of total inward FDI at the end of 2003; Hong Kong, China was China’s largest source of realized FDI, with 42% of the total at end September 2005. Given the growing importance of services trade in China ’ s GDP and employment, continued liberalization of trade in services w ould be crucial for China’s further economic development and he encouraged China to participate more actively in the ongoing services negotiations , to advance the interests of its services industries . Examples of China's policies focusing on strategic adjustment of the industrial structure included, inter alia, providing credit, controlling prices, investment by public entities, subsidizing energy, water, and land, as well as financing state-owned enterprises on favourable terms.
The representative of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) pointed out that Chinese Taipei was one of China's major sources of FDI, mainly in information technology and manufacturing. Examples of its success included the growing private sector, financial system reforms, including exchange rate and agriculture tax reform, investment liberalization, and elimination of non-trade barriers. ASEAN was pleased to have been party to China’s first free-trade agreement, the ASEAN-China Framework Agreement on Comprehensive Economic Cooperation (ACFTA) which would expand global trade through regional liberalization. After a period of adapting to WTO rules, however, there were worrying signs that policies of fostering national champions and discriminatory treatment of foreign firms were now emerging again, impeding business opportunities. There remained challenges in meeting the needs of China's huge population and she asked about the social cost of reforms, and the corrective structural measures that had been undertaken or were to be taken, with a particular emphasis on the role of the State. China controlled basic agricultural commodities, particularly maize, sugar, cotton, and meat and she believed that it had a responsibility to open up its markets for these products without waiting for other members to make adjustments in the negotiations. Colombia would help to build confidence among Chinese investors in Colombia who would benefit from improved market access to the United States as a result of the recently signed FTA between Colombia and the United States. These included the enforcement of IPR legislation, market access barriers for services (especially in finance, telecommunications, and transport), implementation of standards and technical requirements and conformity assessment procedures, and compliance with WTO requirements on transparency and the uniform application of laws.
Since its accession to the WTO in 2001, China had continued with its reform and policy of opening up adopted in 1979, and had achieved outstanding economic, trade and social results, in spite of huge and complex domestic and external challenges. The representative of Jamaica said that over the past decade or so, China had been consistently ranked among the world's foremost emerging markets and was now one of the world's largest economies. Ecuador's main exports were oil, crude oil, fuel, banana, and aluminium by-products, and its major imports included dissolvent oil, mobile phones, accessories for electronic devices, television and broadcasting devices, footwear, vehicles and spare parts, data processing machines, sports articles, chemicals products, tyres and other industrial products. replies by the representative of the people’s republic of china and additional comments
The representative of China thanked Members for their interventions on the first day and for their positive comments on China's implementation of its WTO commitments. The Government would continue to relax foreign exchange controls, including significantly relaxing restrictions on enterprises' foreign exchange cash retaining ratios under the current account, raising the ceiling on foreign exchange purchases by individual residents, and simplifying the procedures, and relaxing restrictions on the use of foreign exchange by enterprises under the capital account. He also noted the strong statement on China's commitment to the DDA Most studies concluded that China would be the single largest beneficiary from a successful outcome in NAMA and he hoped that China would make a significant contribution corresponding to its weight in the world economy. (ii) Trade and related measures
The representative of China noted that written replies to comments and questions on issues such as customs valuation and formalities as well as import procedures had been provided while replies to questions on export duties were being prepared. Chinese standards were harmonized not only with ISO and IEC standards, but also ITU, CAC and others, which were not included in the 32% adoption rate mentioned in the Secretariat Report. China also acknowledged in paragraphs 172 and 173 of its Working Party Report that it needed to provide information on support provided through the banking system, including policy loans, the automatic rollover of unpaid principle and interest, forgiven and non-performing loans, and the selective use of below-market interest rates. (iii) Sectoral aspects
The representative of China confirmed that China had no specific export assistance or VAT rebate system for electronic and communications equipment manufacturers, except for the preferential tax policies contained in its subsidy notification such as for foreign-invested enterprises, and the general VAT rebate scheme for all exports. A recent notice issued by the Ministry of Commerce entitled "Notice on Tightening up the Administration of Iron Ore Imports" sought to reduce the pace of iron ore imports and prohibited the issuance of import licences for iron ore sought from Australia and Brazil if the unit prices were higher than those set in the notice. Regarding Members' concerns about China's new automotive industry policy, he asked them to compare the current Automotive Industry Development Policy with the 1994 policy, which had contained requirements for local content and export performance and had been of concern to Members. Notwithstanding these achievements, many Members raised the issue of transparency in policymaking and implementation, and were concerned about the use of certain measures on imports and exports, especially anti-dumping and countervailing, standards, SPS, export taxes and VAT rebates. I would once again like to thank the Chinese delegation for their efforts, the Discussant for his insightful comments, and Members for contributing to what has been a very enlightening two days of discussions.
95 年 6 月 6 日
6 June 2006 (06-2701) Trade Policy Review Body
19 and 21 April 2006
trade policy review
people's republic of china
Minutes of Meeting
Chairperson: H.E. Mrs. Claudia Uribe (Colombia)
I. Introductory remarks by the Chairperson 3
II. Opening statement by the Representative of THE PEOPLE'S REPUBLIC OF CHINA 4
III. Statement by the Discussant 8
IV. statements by members 11
V. Replies by the Representative of THE PEOPLE'S REPUBLIC OF CHINA and additional comments 31
VI. Concluding remarks by the chairperson 41
Note: Advance written questions by WTO Members and the replies provided by the People's Republic of China are reproduced in document WT/TPR/M/161/Add.1 and will be available