RESTRICTED  WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/ACC/SPEC/CHN/3 
21 December 2000 
 (00-5617) 
Working Party on the 
Accession of China Original: English/ 
 anglais/  inglés 
 
 
COMMUNICATION FROM CHINA  
 
 
 The following documents
1, dated 11 December 2000, have been received from the Chinese 
delegation with the request that they be circ ulated to the members of the Working Party: 
  - draft List of Specific Commitments in Services;   - draft List of GATS Article II Exemptions.  
 
Groupe de travail de 
l'accession de la Chine  
COMMUNICATION DE LA CHINE 
 
 
 La délégation chinoise a fait parvenir au Secrétariat les documents ci-après
1, datés du 
11 décembre 2000, en lui demandant de les di stribuer aux membres du Groupe de travail: 
 
 - projet de liste d'engagements spécifiques concernant les services; 
  - projet de liste d'exemptions des ob ligations énoncées à l'ar ticle II de l'AGCS. 
 
 Grupo de Trabajo sobre la  
Adhesión de China 
 
COMUNICACIÓN DE CHINA 
  
 Se han recibido de la delegación de China los siguientes documentos
1, de fecha 11 de 
diciembre de 2000, con el ruego de que se dist ribuyan a los miembros del Grupo de Trabajo: 
  - Proyecto de Lista de compromisos específicos sobre servicios;   - Proyecto de Lista de exenciones al artículo II del AGCS. 
                                                     
 
 
1 In English only./En anglais seulement./En inglés solamente. WT/ACC/SPEC/CHN/3 
Page 2  
 
CHINA – DRAFT LIST OF SPECIFIC COMMITMENTS 
(11 December 2000) 
 
NOTE 
 
1. This draft List of Specific Commitments of China is prepared taking into account of the 
principles and rules provided in the GATS and reflec ting the best offer China has made to members of 
the Working Party in bilateral negotiations. 
 2. This document may contain technical errors , misprints and/or omissions. China therefore 
reserves the right to make amendments and/or correc tions to this draft List of Specific Commitments 
to rectify any errors, misprints and /or omissions. 
   WT/ACC/SPEC/CHN/3
 Page 3CHINA – SCHEDULE OF SPECIFIC COMMITMENTS 
11 December 2000 
 
 
Modes of supply: (1) Cross-border supply (2) Consumption ab road (3) Commercial presence (4) Presence of natural persons  
Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
I.  HORIZONITAL COMMITMENTS  
 
 ALL SECTORS INCLUDED IN 
THIS SCHEDULE  
(3) In China, foreign invested enterprises 
include foreign capital enterprises (also referred 
to as wholly foreign-owned enterprises) and 
joint venture enterprises and there are two types of joint venture enterprises: equity joint 
ventures and contractual joint ventures.
1 
 The proportion of foreign investment in an 
equity joint venture shall be no less than 25 per 
cent of the registered capital of the joint venture. 
 
The establishment of branches by foreign enterprises is unbound, unless otherwise 
indicated in specific sub-sectors, as the laws 
and regulations on branches of foreign enterprises are under formulation. 
 
Representative offices of foreign enterprises are permitted to be established in China, but they 
shall not engage in any profit-making activities 
except for the representative offices under CPC 
861, 862, 863, 865 in the sectoral specific 
commitments.   
 (3) Unbound for all the existing subsidies to 
domestic services suppliers in the sectors of 
audio visual, aviation and medical services. 
  
 
                                                      
 
1 The terms of the contract, concluded in accordance with China's laws, regulations and other measures, establishing a "contract ual joint venture" govern matters such as 
the manner of operation and management of the joint venture as well as the investment or other contribution of the joint ventur e parties. Equity participation by all parties to the 
contractual joint venture is not required, but is determined pursuant to the joint venture contract.  WT/ACC/SPEC/CHN/3 
Page 4 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
The conditions of ownership, operation and 
scope of activities, as set out in the respective 
contractual or shareholder agreement or in a license establishing or authorizing the operation 
or supply of services by an existing foreign 
service supplier , will not be made more restrictive than they exist as of the date of 
China's accession to the WTO. 
 The land in the People's Republic of China is 
State-owned. Use of land by enterprises and 
individuals is subject to the following maximum term limitations: 
 
(a) 70 years for residential purposes;   
(b) 50 years for industrial purposes; 
 (c) 50 years for the pu rpose of education, 
science, culture, public health and physical 
education; 
 
(d) 40 years for commercial, tourist and recreational purposes; 
 
(e) 50 years for comprehensive utilization or other purposes. 
  
 
 
  
 
  
 
  
 
  
 
    
 
 
  
 
  
 
  
 
  
 
     WT/ACC/SPEC/CHN/3
 Page 5Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
   
 (4) Unbound except for measures concerning 
the entry and temporary stay of natural persons 
who fall into one of the following categories:         
  (a) Managers, executives and specialists 
defined as senior employees of a corporation of a WTO Member that has established a 
representative office, branch or subsidiary in 
the territory of the People's Republic of China, temporarily moving as intra-corporate 
transferees, shall be permitted entry for an 
initial stay of 3 years;    
  (b) Managers, executives and specialists 
defined as senior employees of a corporation of other WTO Members, being engaged in the 
foreign invested enterprises in the territory of 
the People's Republic of China for conducting business, shall be granted a long-term stay 
permit as stipulated in the terms of contracts 
concerned or an initial stay of 3 years, 
whichever is shorter; 
   (c) Service salespersons -- persons not based 
in the territory of the People's Republic of 
China and receiving no remuneration from a source located within China, and who are 
engaged in activities related to representing a 
service supplier for the purpose of negotiation for the sale of services of that supplier where 
(a) such sales are not directly made to the 
general public and (b) the salesperson is not engaged in supplying the service: entry for 
salespersons is limited to a 90-day period. 
  
 
  
 
    
 (4) Unbound except for the measures 
concerning the entry and temporary stay of 
natural persons who fall into the categories referred to in the market access column.  
  WT/ACC/SPEC/CHN/3 
Page 6 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
II.  SECTOR – SPECIFIC COMMITMENTS 
 
 
1.  BUSINESS SERVICES    
  A. Professional Services  
   (a) Legal services 
     (CPC 861, excluding 
     Chinese law practice)  
  
  
(1) None 
 (2) None 
 
(3) Foreign law firms can provide legal services only in the form of representative offices in 
Beijing, Shanghai, Guangzhou, Shenzhen, 
Haikou, Dalian, Qingdao, Ningbo, Yantai, Tianjin, Suzhou, Xiamen, Zhuhai, Hangzhou, 
Fuzhou, Wuhan, Chengdu, Shenyang and 
Kunming only.   
Representative offices can engage in profit-
making activities. Representative offices in 
China shall be no less than the number 
established upon the date of accession. A foreign law firm can only establish one 
representative office in China. The above-
mentioned geographic and quantitative limitations will be eliminated within 1 year 
after China's accession to the WTO. 
  
  
(1) None 
 (2) None 
 
(3) All representatives shall be resident in China no less than six months each year. 
The representative office shall not employ 
Chinese national registered lawyers.  
    WT/ACC/SPEC/CHN/3
 Page 7Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  Business scope of foreign representative 
offices: 
 
(a) to provide its clients with consultancy on the legislation of the country/region where the 
lawyers of the law firm are permitted to engage 
in lawyer's professional work, and on international conventions and practices; 
(b) to handle, when entrusted by its clients or 
Chinese law firms, legal affairs of the country/region where the lawyers of the law 
firm are permitted to engage in lawyer's 
professional work; (c) to entrust, on behalf of foreign clients, 
Chinese  law firms to deal with the Chinese 
legal affairs; (d) to enter into contracts to maintain long-term 
entrustment relations with Chinese law firms 
for legal affairs.  (e) to provide information on the impact of the 
Chinese legal environment. 
 
Entrustment allows the foreign representative 
office to directly instruct lawyers in the entrusted Chinese law firm, as agreed between 
both parties. 
 The representatives of a foreign law firm shall 
be practitioner lawyers who are members of the 
bar or law society in a WTO member and have practised for no less than two years outside of 
China. The Chief representative shall be a 
partner or equivalent (e.g., member of a law firm of a limited liability corporation) of a law 
firm of a WTO member and have practised for 
no less than three years.  
(4) Unbound except as indicated in Horizontal 
Commitments.   
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
(4) Unbound except as indicated in 
Horizontal Commitments.    WT/ACC/SPEC/CHN/3 
Page 8 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  (b) Accounting, auditing 
     and bookkeeping 
     services      (CPC 862)
2 
      
 (1)  None 
 
 (2)  None  
 (3) Partnerships or incorporated accounting 
firms are limited to  Certified Public Accountants (CPAs) licensed by the Chinese 
authorities. 
   (4) Unbound except as in dicted in Horizontal 
Commitments.   
(1)  None 
 
(2)  None  
(3)  None. 
  
 
 (4) Unbound except as in dicted in Horizontal 
Commitments.  
Foreign accounting firms are 
permitted to affiliate with 
Chinese firms and enter into contractual agreements with 
their affiliated firms in other 
WTO members.  
Upon accession to the WTO, 
issuance of licenses to those foreigners who have passed the 
Chinese national CPA 
examination shall be accorded national treatment. Applicants 
will be informed of results in 
writing no later than 30 days after submission of their 
applications. 
 Existing contractual joint 
venture accounting firms are 
not limited only to CPAs 
licensed by Chinese authorities. 
  
                                                      
 
2 Accounting firms providing services in CPC 862 can engage in ta xation and management consulting services. They will not be sub ject to requirements on form of 
establishment in CPC 865 and 8630.   WT/ACC/SPEC/CHN/3
 Page 9Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
   
  Management Consulting 
services  (CPC 865) 
     
  Taxation services  
  (CPC 8630)   
(1)  None 
 
(2)  None  
(3)  Only in the form of joint ventures, with 
    foreign majority ownership permitted.  
Within 6 years of China's accession, foreign 
firms  will be permitted to establish wholly-foreign-owned subsidiaries. 
 
(4) Unbound except as indicated in Horizontal Commitments.   
(1)  None 
 
(2)  None  
(3)  None. 
  
 
  
 
(4) Unbound except as indicated in Horizontal Commitments.  
 
d. Architectural Services 
(CPC 8671)  
e. Engineering Services 
(CPC 8672) 
 
f. Integrated Engineering Services 
(CPC 8673) 
 g. Urban Planning 
Services(except general urban 
planning) (CPC 8674) 
 
  
1) None for scheme design. 
  Co-operation with Chinese professional organisations is required except scheme design.  
 
2) None 
 
3) Only in the form of joint ventures , with foreign majority ownership permitted. 
 
  Within 5 years after China's accession to the    WTO, wholly foreign-owned enterprises will 
  be permitted. 
 4) Unbound, except as indicated in Horizontal 
commitments. 
   
1) None 
  
 
 
2) None 
 3) Foreign service suppliers shall be 
registered architects/engi neers, or enterprises 
engaged in architectural/engineering/urban planning services, in  their home country. 
 
 4) Unbound, except as indicated in Horizontal 
commitments   WT/ACC/SPEC/CHN/3 
Page 10 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
(h). Medical and Dental Services 
(CPC 9312) 
  
1) None 
 
2) None  
3) Foreign service suppliers are permitted to 
establish joint venture hospitals or clinics with Chinese partners with quantitative limitations in 
line with China's needs, with foreign majority 
ownership permitted.  
4) Unbound, except as indicated in Horizontal 
commitments and as follows  
Foreign doctors with professional certificates 
issued by their home country shall be permitted to provide short-term medical services in China 
after they obtain licenses from the Ministry of 
Public Health. The term of service is six months and may extend to one year. 
  
1) None 
 
2) None  
3) The majority of doctors and medical 
personnel of the JV hospital and clinics shall be of Chinese nationality. 
 
  
4) Unbound, except as indicated in Horizontal 
commitments  
 
 
 
 B. Computer and Related 
    Services 
   (a) Consultancy services related  
       to the installation of  
      computer hardware      (CPC 841)   
 
 
 (1)  None 
 
(2)  None  
(3)  None 
 (4)  Unbound except as indicated in Horizontal 
Commitments. 
    
 
 
 (1)  None 
 
(2)  None  
(3)  None 
 (4) Certified engineers, or personnel with 
Bachelor's degree (or ab ove) and 3 years of 
experience in these fields.     WT/ACC/SPEC/CHN/3
 Page 11Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
  (b)Software implementation 
     services 
     (CPC 842)  
     -  Systems and software   
       consulting services          (CPC 8421) 
 
     -  Systems analysis services        (CPC 8422)  
(1)  None 
 
(2)  None   
(3)  Only in the form of joint ventures, with 
foreign majority ownership permitted.  
(4)  Unbound except as indicated in Horizontal 
Commitments.      
(1)  None 
 
(2)  None   
(3)  None 
  
(4) Certified engineers, or personnel with 
Bachelor's degree (or ab ove) and 3 years of 
experience in these fields. 
 
  
 
   
 
      -  Systems design 
         services 
         (CPC 8423) 
       -  Programming 
         services 
         (CPC 8424)  
      -  Systems maintenance 
         services          (CPC 8425) 
   
(1)  None. 
 
(2)  None 
 (3)  Only in the form of joint ventures, with 
foreign majority ownership permitted. 
 (4)  Unbound except as indicated in Horizontal 
Commitments. 
    
(1)  Unbound 
 
(2)  None 
 (3)  None 
 
 (4)  Certified engineers, or personnel with 
Bachelor's degree (or ab ove) and 3 years of 
experience in these fields.  
 
    WT/ACC/SPEC/CHN/3 
Page 12 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
   
  (c) Data processing services 
     (CPC 843) 
       -  Input preparation 
         services 
         (CPC 8431)  
  
(1)  None 
 
(2)  None   
(3) Only in the form of joint ventures, with 
foreign majority ownership permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments.  
(1)  None 
 
(2)  None   
(3)  None 
  
(4)  Certified engineers, or personnel with 
Bachelor's degree (or ab ove) and 3 years of 
experience in these fields. 
 
  
 
  
 
      -  Data processing and 
         tabulation services 
         (CPC 8432) 
 
      -  Time-sharing          services 
         (CPC 8433)  
(1)  None.  
 
(2)  None 
 
(3)  None  
(4)  Unbound except as indicated in Horizontal 
Commitments.     
(1)  None. 
 
(2)  None 
 
(3)  None  
(4)  Certified engineers, or personnel with 
Bachelor's degree (or ab ove) and 3 years of 
experience in these fields. 
 
  
 
  
 
  (f) Services incidental to 
     agriculture, forestry, 
     hunting and fishing      (CPC 881, 882)  
(1) None 
 
(2) None   
(3) Only in the form of joint ventures, with 
foreign majority ownership permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments. 
  
(1) None 
 
(2) None  
(3) None 
  
(4) Unbound except as indicated in 
Horizontal Commitments.    WT/ACC/SPEC/CHN/3
 Page 13Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  (m) Related scientific 
     technical consulting 
     services       (CPC 8675)  
(1)  None 
 
(2)  None  
 (3)  Only in the form of joint ventures, with 
foreign majority ownership permitted.   
(4) Unbound except as indicated in Horizontal 
Commitments.   
(1)  None 
 
(2)  None  
(3)  None 
 (4)  Unbound except as indicated in 
Horizontal Commitments.  
     -  Offshore oil-field 
        services geological, 
        geophysical and other         scientific prospecting 
        services 
        (CPC 86751)  
       Sub-surface surveying 
        services 
        (CPC 86752)   (1)  None 
 
(2)  None   
(3)  Only in the form of petroleum exploitation 
in cooperation with Chinese partners.       
(4)  Unbound except as indicated in Horizontal 
Commitments. 
 (1)  None 
 
(2)  None   
(3)  None 
  
(4)  Unbound except as indicated in 
Horizontal Commitments.  
      -  Onshore oil-field 
        services    (1)  None 
 (2)  None 
 
(3)  Only in the form of petroleum exploitation in cooperation with China National Petroleum 
Corp. (CNPC) in the designated areas approved 
by the Chinese government.     (1)  None 
 (2)  None 
 
(3) The foreign service supplier shall furnish CNPC accurately and promptly with the 
reports on the petroleum operations, and shall 
submit to CNPC the data and samples as well as various technological, economic, 
accounting and administrative reports related 
to petroleum operations.    WT/ACC/SPEC/CHN/3 
Page 14 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
 
 
  
In order to carry out the petroleum contract, the 
foreign service supplier shall establish a branch, 
subsidiary or representative office within the territory of the People's Republic of China and 
go through registration formalities in 
accordance with the laws.  The domiciles of the said offices shall be 
determined through consultation with CNPC. 
 The foreign service supplier shall open its bank 
account with a bank appr oved by the Chinese 
authorities to engage in foreign exchange business within the Chinese territory. 
 
(4) Unbound except as indicated in Horizontal Commitments. 
 
  
CNPC shall have the ownership of all of the 
data records, samples, vouchers and other 
original information acquired during the implementation of the petroleum operations. 
 
The investment of foreign service suppliers shall be made in US dollars or other hard 
currencies. 
  
 
  
 
(4) Unbound except as indicated in Horizontal Commitments.  
 
  (p) Photographic services 
     (CPC 875)    
(1)  None 
 (2)  None  
 
(3)  Only in the form of joint ventures, with foreign majority ownership permitted.  
 
(4)  Unbound except as indicated in Horizontal Commitments. 
  
(1)  None 
 (2)  None  
 
(3)  None  
 
(4)  Unbound except as indicated in Horizontal Commitments.  
 
  (s) Convention services      (CPC 87909)   
(1)  None  
(2)  None  
 (3)  Only in the form of joint ventures, with 
foreign majority ownership permitted.  
 (4)  Unbound except as indicated in Horizontal 
Commitments. 
  
(1)  None  
(2)  None  
 (3)  None 
 
 (4)  Unbound except as indicated in 
Horizontal Commitments.    WT/ACC/SPEC/CHN/3
 Page 15Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  (t) Translation and 
     interpretation services 
     (CPC 87905)  
  
(1) None 
 
(2) None   
(3) Only in the form of joint ventures, with 
foreign majority ownership permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments.   
(1) None 
 
(2) None   
(3) None 
  
(4) Qualifications are as follows: three years 
of experience in translation or interpretation and a good command of the working 
language(s). 
  
 
  D. Real Estate Services 
 
  (a) Real estate services      involving own or leased 
     property 
   (CPC 821 excluding hotels 
   which are addressed in 
   TOURISM AND     RELATED SERVICES )  
(1)  None 
 
(2)  None  
(3) None except for the following: 
 
Wholly foreign-owned enterprises are not 
permitted for luxury real estate projects
3, such 
as apartments and office buildings. 
      
(4) Unbound except as indicated in Horizontal Commitments.  
(1)  None 
 
(2)  None  
(3)  None 
 
 
  
 
(4)  Unbound except as indicated in Horizontal Commitments. 
  
                                                      
 
3 High standard real estate projects refer to the real estate projects with construction costs per unit two times more than the average construction costs per unit in the 
same city.  WT/ACC/SPEC/CHN/3 
Page 16 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
  (b) Real estate services on a 
     fee or contract basis 
     (CPC 822)  
 
  
   
(1)  None 
 
(2)  None   
(3)  Only in the form of joint ventures, with 
foreign majority ownership permitted.   
(4) Unbound except as indicated in Horizontal 
Commitments.  
(1)  None 
 
(2)  None   
(3)  None 
  
(4)  Unbound except as indicated in 
Horizontal Commitments.  
 
BUSINESS SERVICES 
 
Maintenance and Repair services (CPC 63, 6112 and 6122) 
 
Maintenance and Repair services of office machinery and 
equipment including computers 
(CPC 845 and 886) 
 
 Rental and Leasing Services  
(CPC 831, 832, excluding CPC 
83202)    
1) None 
 
2) None  
3) Upon accession, only in the form of joint 
ventures. Within 1 year after China's accession, foreign majority ownership will be permitted. 
Within 3 years after China's accession, wholly-
foreign-owned subsidiaries will be permitted. 
 
For Rental and Leasing services, service suppliers will have global assets of 
US $ 5 million. 
 4) Unbound, except as indicated in horizontal 
commitments. 
  
1) None 
 
2) None  
3) None 
  
 
 
 
  
 
 4) Unbound, except as indicated in horizontal 
commitments. 
   
  
 
    WT/ACC/SPEC/CHN/3
 Page 17Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
OTHER  BUSINESS 
SERVICES 
 Advertising Services (CPC 871) 
 
  
 
  
 
  
 
  
 
  
 
 
 
Technical testing and analysis services (CPC 8676) and freight 
inspection (CPC 749, excluding 
statutory inspection services for freight inspection services)   
1) Only through advertising agents registered in 
China who have the right to provide foreign 
advertising services.  
2) Only through advertising agents registered in 
China who have the right to provide foreign advertising services. 
 
3) Foreign service suppliers are permitted to establish advertising enterprises in China only 
in the form of joint ventures with foreign 
investment no more than 49%. Within 2 years after China's accession, foreign majority 
ownership will be permitted and within 4 years 
after China's accession, wholly-foreign-owned 
subsidiaries will be permitted. 
 
4) Unbound except as indicated in Horizontal commitments. 
 
 
1) None 
 2) None 
 
3) Foreign services suppliers which have been engaged in inspection services in their home 
countries for more than 3 years are permitted to 
establish joint venture technical testing, analysis and freight in spection companies with 
no less than US $ 350,000 in registered capital. 
Within 2 years after China's accession, foreign majority ownership will be permitted and 
within 4 years after China's accession, wholly-
foreign-owned subsidiaries will be permitted.   
4) Unbound except as indicated in Horizontal 
commitments   
1) None  
 
  
2) None 
  
 
3) None  
 
  
 
  
 
4) Unbound except as indicated in Horizontal commitments. 
 
 
1) None 
 2) None 
 
3) None  
 
  
 
  
 
  
4) Unbound except as indicated in Horizontal 
commitments.  
  WT/ACC/SPEC/CHN/3 
Page 18 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
OTHER  BUSINESS 
SERVICES 
 q. Packaging Services  
      (CPC 876) 
    
 
 
1) None  
2) None 
 3) Upon accession, foreign service suppliers 
will be permitted to establish joint venture in 
China. Within 1 year after China's accession, foreign majority ownership will be permitted. 
Within 3 years after China's accession, foreign 
service suppliers will be permitted to establish wholly-owned subsidiaries. 
 
4) Unbound, except as indicated in Horizontal commitments  
 
 
1) None  
2) None 
 3) None 
 
  
 
  
 
4) Unbound, except as indicated in Horizontal commitments. 
 
  
   WT/ACC/SPEC/CHN/3
 Page 19Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
2. COMMUNICATION  
  SERVICES4 5 6 
   Value-added Services 
  Including the following: 
    h. Electronic mail 
   i. Voice mail 
   j. On-line information     and database retrieval 
   k. Electronic data 
    interchange    l. Enhanced/Value- 
    added facsimile services  
    (including     store and forward, 
    store and retrieve) 
   m. Code and protocol      conversion 
   n. On-line information 
    and/or data processing 
    (including transaction 
    processing)  
2) None 
 
1),3) Foreign service suppliers will be permitted to establish joint venture value-added 
telecommunication enterprises, without 
quantitative restrictions, and provide services in the cities of Shanghai, Guangzhou and Beijing. 
Foreign investment in joint venture shall be no 
more than 30%.   
Within 1 year after China's accession, the areas 
will be expanded to include Chengdu, Chongqing, Dalian, Fuzhou, Hangzhou, 
Nanjing, Ningbo, Qingdao, Shenyang, 
Shenzhen, Xiamen, Xian, Taiyuan and Wuhan and foreign investment shall be no more than 
49%. 
   Within 2 years after China's accession, there 
will be no geographic restriction and foreign 
investment shall be no more than 50%.  
 
4) Unbound except as indicated in Horizontal Commitments. 
  
(1) None 
 
(2) None  
 (3) None 
  
 
  
 
  
 
  
 
  
 
 
 
(4) Unbound except as indicated in Horizontal Commitments. 
    
China undertakes the 
obligations contained in the 
reference paper attached hereto.   
                                                      
 
4 China's commitments are scheduled in accor dance with the following: Notes for Scheduling Basic Telecom Services Commitments (S /GBT/W/2/REV/1) and Market 
Access Limitations on Spectrum Availability (S/GBT/W/3) attached hereto. 
5 All international telecommunications services shall go through gateways established with the approval of China's telecommunica tions authorities, which will act as an 
independent regulatory authority in accordance with the principles of paragraph 5 of the Reference Paper. 
6 Further liberalization of this sector, including with respect to  the level of equity participation permitted, will be discusse d in the services negotiations during the new 
round of trade talks launched in Seattle.  WT/ACC/SPEC/CHN/3 
Page 20 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
Basic Telecommunication 
Services 
  
- Paging services 
  
 
   
2) None 
 
1),3) Foreign service suppliers will be permitted to establish joint venture enterprises, 
without quantitative restrictions, and provide 
services in and between the cities of Shanghai, Guangzhou and Beijing. Foreign investment in 
joint venture shall be no more than 30%.  
 Within 1 year after China's accession, the areas 
will be expanded to include services in and 
between Chengdu, Chongqing, Dalian, Fuzhou, Hangzhou, Nanjing, Ningbo, Qingdao, 
Shenyang, Shenzhen, Xiamen, Xian, Taiyuan 
and Wuhan and foreign investment shall be no more than 49%. 
 
  Within 2 years after China's accession, there will be no geographic restriction and foreign 
investment shall be no more than 50%.  
 
4) Unbound except as indicated in Horizontal 
Commitments.   
(1) None 
 
(2) None  
(3) None  
  
 
  
 
  
 
  
 
  
 
 
(4) Unbound except as indicated in 
Horizontal Commitments.     
China undertakes the 
obligations contained in the 
reference paper attached hereto.    WT/ACC/SPEC/CHN/3
 Page 21Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
Mobile voice and data  
Services: 
 Analogue/Digital/Cellular 
Services 
 Personal Communication 
Services 
  
2) None 
 
1),3) Upon China's accession, foreign service suppliers will be permitted to establish joint 
venture enterprises, without quantitative 
restrictions, and provide services in and between the cities of Shanghai, Guangzhou and 
Beijing. Foreign investment in the joint venture 
shall be no more than 25%.   
Within 1 year after accession, the areas will be 
expanded to include services in and between Chengdu, Chongqing, Dalian, Fuzhou, 
Hangzhou, Nanjing, Ningbo, Qingdao, 
Shenyang, Shenzhen, Xiamen, Xian, Taiyuan and Wuhan and foreign investment shall be no 
more than 35%. 
 Within 3 years after accession, foreign 
investment shall be no more than 49%. 
 
Within 5 years after accession, there will be no 
geographic restriction.  
 (4) Unbound except as indicated in Horizontal 
Commitments.   
(1)None 
 
(2) None  
 
 (3) None   
 
  
 
  
 
  
 
  
 
 
 
  
(4) Unbound except as indicated in 
Horizontal Co mmitments.     WT/ACC/SPEC/CHN/3 
Page 22 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
Domestic services 
(a) Voice services 
(b) Packet-switched data   transmission services 
(c ) Circuit-switched data  
  transmission services (f) Facsimile services 
(g) domestic private leased 
circuit services  
- International services 
 (a) voice services  
(b) Packet-switched data 
  transmission services (c) Circuit-switched data  
  transmission services 
(f) Facsimile services (g) International closed user 
group voice and data services 
(use of private leased circuit 
service is permitted) 
   
2) None 
 
1), 3) Within 3 years after China's accession, foreign service suppliers will be permitted to 
establish joint venture enterprises, without 
quantitative restrictions, and provide services in and between the cities of Shanghai, Guangzhou 
and Beijing. Foreign investment in the joint 
venture shall be no more than 25%.  
Within 5 years after accession, the areas will be 
expanded to include services in and between Chengdu, Chongqing, Dalian, Fuzhou, 
Hangzhou, Nanjing, Ningbo, Qingdao, 
Shenyang, Shenzhen, Xiamen, Xian, Taiyuan and Wuhan. And foreign investment shall be no 
more than 35%. 
 Within 6 years after accession, there will be no 
geographic restriction and foreign investment 
shall be no more than 49%. 
 
4) Unbound except as indicated in Horizontal Commitments. 
 
  
1) None 
 
2) None  
 
    3) None 
 
  
 
  
 
   
 
  
 
 
 
(4) Unbound except as indicated in Horizontal Co mmitments.      WT/ACC/SPEC/CHN/3
 Page 23Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
AUDIOVISUAL SERVICES 
 
 Videos, including entertainment 
software and CPC 83202, 
distribution  services  
Sound recording distribution 
services  
 
  
 
  
 
 Cinema Theater Services 
  
1) None 
 
2) None  
3) Upon accession, foreign services suppliers 
will be permitted to establish joint ventures with Chinese partners with foreign investment 
less than 49% to engage in the distribution of 
audiovisual products, excluding motion pictures, without prejudice to China's right to 
examine the content of audio and video 
products.  
4) Unbound, except as indicated in horizontal 
commitments  
 
 1) None 
 
2) None 
 
3) Upon accession, foreign services suppliers will be permitted to construct and/or renovate 
cinema theaters, with foreign investment no 
more than 49%.  
4) Unbound, except as indicated in horizontal 
commitments  
1) None 
 
2) None  
3) None 
  
 
  
 
  
4) Unbound, except as indicated in horizontal 
commitments  
 
 1) None 
 
2) None 
 
3) None  
 
  
4) Unbound, except as indicated in horizontal 
commitments   
Without prejudice to 
compliance with China's 
regulations on the administration of films, 
upon accession, China will 
allow the importation of motion pictures for theatrical release on 
a revenue-sharing basis and the 
number of such imports shall be 20 on an annual basis.  WT/ACC/SPEC/CHN/3 
Page 24 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
B. COURIER SERVICES  
 
Land-based International Courier Services: All services related to 
an international shipment being 
handled by an express carrier, except for those currently 
specifically reserved to Chinese 
postal authorities by law.  
  
 
 
1) None  
2) None 
 3) Upon accession, foreign service suppliers 
will be permitted to establish joint ventures 
with foreign investment not exceeding 49%. Within 1 year after China's accession, foreign 
majority ownership will be permitted. Within 4 
years after China's accession, foreign service suppliers will be permitted to establish wholly-
owned subsidiaries. 
 4) Unbound, except as indicated in horizontal 
commitments 
  
 
 
1) None  
2) None 
 3) None 
 
  
 
  
 
 4) Unbound, except as indicated in horizontal 
commitments  
   WT/ACC/SPEC/CHN/3
 Page 25Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
 3. CONSTRUCTION 
   AND RELATED 
   ENGINEERING    SERVICES 
   (CPC 511, 512, 513
7 
   514, 515, 516, 517, 5188 ) 
 
  
(1) Unbound9 
 
 (2) None  
 (3) Only in the form of joint ventures, with 
foreign majority ownership permitted.  
Within 3 years after China's accession to the 
WTO, wholly foreign-owned enterprises will be permitted. Wholly foreign-owned enterprises 
can only undertake the following 4 types of 
construction projects. 1. Construction projects wholly financed by 
foreign investment and/or grants. 
2. Construction projects financed by loans of international financial institutions and awarded 
through international tendering according to the 
terms of loans. 3. Chinese-foreign jointly constructed projects 
with foreign investment equal to or more than 
50%; and Chinese-foreign jointly constructed 
projects with foreign investment less than 50% 
but technically difficult to be implemented by Chinese construction enterprises alone. 
 
   
1) Unbound
9 
 
 (2) None  
 (3) None except for the following: 
 (a) The existing registered capital 
requirements for joint venture construction 
enterprises are slightly different from those of 
the domestic enterprises. 
 
(b) Joint venture construction enterprises have the obligation to undertake foreign-invested 
construction projects. 
 Within 3 years after China's accession to the 
WTO, none. 
  
 
 
 
   
                                                      
 
7 Including dredging services relating to infrastructure construction. 
8 Coverage of CPC 518 is limited only to the rental and leasing services of construction and/or demolition machines with operato r which are owned and used by foreign 
construction enterprises in their supply of services. 
9 Unbound due to lack of technical feasibility.  WT/ACC/SPEC/CHN/3 
Page 26 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
4. Chinese invested construction projects which 
are difficult to be implemented by Chinese 
construction enterprises alone can be jointly undertaken by Chinese and foreign construction 
enterprises with the approval of provincial 
government.   
 (4) Unbound except as indicated in Horizontal 
Commitments.   
 
 
  
 
  
(4) Unbound except as indicated in 
Horizontal Commitments    WT/ACC/SPEC/CHN/3
 Page 27Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
4. DISTRIBUTION 
  SERVICES 
  (as defined in Annex 1)     
  A. Commission agents’ 
     Services   (excluding salt, tobacco) 
 
    
(1) Unbound 
 
(2) None  
(3) A. Foreign service suppliers who meet the 
following initial conditions may set up joint venture trading companies in the cities of 
Shanghai and Shenzhen: 
  -  business volume in the year prior to the application be more than US$ 5 billion; 
  -  average annual trade volume with China 
during the last three years prior to the application be more than US$ 30 million; 
  -  establishment of representative office in 
China be more than 3 years; or investment in China be more than US$ 30 million; 
  -  Registered capital of the joint venture shall 
be no less than 100 million RMB yuan. Foreign equity share in joint venture trading 
companies shall be no more than 49%. The 
joint venture trading companies shall not 
engage in commission agents' business of 
domestically produced products.   
Within 2 years after China's accession, the joint 
venture trading companies may engage in commission agents' business of domestically 
produced products. Within  2 years after China's 
accession to the WTO, foreign majority ownership will be permitted. Within 3 years 
after China's accession, there will be no 
quantitative or geographic, or foreign equity restrictions. 
 
Unbound for inter-branching.   
(1) Unbound 
 
(2) None  
(3) None  
Upon accession, foreign-
invested enterprises are 
permitted to distribute their products manufactured in 
China, including the  products 
listed in the market access or Sector or sub-sector column, 
and provide subordinate 
services as defined in Annex 1.   
Upon accession, foreign service 
suppliers may provide the full range of related subordinate 
services, including after sales 
services, as defined in Annex 1, for the products they distribute.  WT/ACC/SPEC/CHN/3 
Page 28 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
    B. Within 1 year after China's accession to 
the WTO, foreign service suppliers may 
establish joint ventures, distinct from joint 
venture trading companies mentioned in paragraph A, to engage in the commission 
agents' business of all imported and 
domestically produced products, except those products that immediately follow. For these 
products, foreign service suppliers will be 
permitted to engage in the distribution of books, newspapers, magazines, pharmaceutical 
products, pesticides and mulching films within 
3 years after China's accession, and to engage in the distribution of chemical fertilizers, 
processed oil and crude oil as commission 
agents within 5 years af ter China's accession.    
 
   Within 2 years after China's accession to the 
WTO, foreign majority ownership will be permitted and no geographic or quantitative 
restrictions will apply. Within 3 years after 
China's accession to the WTO, there will be no 
restrictions on equity/form of establishment. 
None, starting no later than 5 years after China's accession. 
     
(4) Unbound except as indicated in Horizontal Commitments. 
  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
(4) Unbound except as indicated in Horizontal Commitments. 
    WT/ACC/SPEC/CHN/3
 Page 29Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
   B. Wholesale trade services10 
(excluding salt, tobacco) (1) Unbound 
 
(2) None 
 (3) A. Foreign service suppliers who meet the 
following initial conditions may set up joint 
venture trading companies in the cities of Shanghai and Shenzhen: 
  -  business volume in the year prior to the 
application be more than US$ 5 billion;   -  average annual trade volume with China 
during the last three years prior to the 
application be more than US$ 30 million;   -  establishment of representative office in 
China be more than 3 years; or investment in 
China be more than US$ 30 million;   -  Registered capital of the joint venture shall 
be no less than 100 million RMB yuan. 
 Foreign equity share in joint venture trading 
companies shall be no more than 49%. The 
joint venture trading companies shall not 
engage in wholesale business of domestically 
produced products. Within  2 years after China's 
accession, the joint venture trading companies 
may engage in wholesale business of 
domestically produced products. Within 2 years after China's accession to the WTO, foreign 
majority ownership will be permitted. Within 3 
years after China's accessi on, there will be no 
quantitative or geographic, or foreign equity 
restrictions. 
 (1) Unbound 
 
(2) None 
 (3) None Upon accession, foreign-
invested enterprises may 
distribute their products 
manufactured in China, including the products listed in 
the market access or Sector or 
sub-sector column, and provide subordinate services as defined 
in Annex 1.  
 Upon accession, foreign service 
suppliers may provide the full 
range of related subordinate services, including after sales 
services, as defined in Annex 1, 
for the products they distribute. 
                                                      
 
10 The restrictions on mode 1 shall not undermine the rights of WTO Members to the ri ght to trade as stipulated in Chapter 5 of Ch ina's Protocol of accession to the WTO.   WT/ACC/SPEC/CHN/3 
Page 30 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
 Within 3 years after China's accession to the 
WTO, the initial conditions listed above will be 
replaced by the following: 
- business volume in the year prior to the application be more than US $ 2 billion; 
- gross asset value in the year prior to the 
application be more than US $ 200 million; - registered capital of the distribution 
enterprises shall be no less than 40 million 
RMB Yuan.  
Unbound for inter-branching. 
    B. Within 1 year after China's accession to 
the WTO, foreign service suppliers may set up 
joint ventures, distinct from joint venture trading companies mentioned in A, to engage in 
the wholesale business of all imported and 
domestically produced products, except those products that immediately follow. For these 
products, foreign service suppliers will be 
permitted to engage in the wholesale 
distribution of books, newspapers, magazines, 
pharmaceutical products, pesticides and mulching films within 3 years after China's 
accession, and to engage in the distribution of 
chemical fertilizers, processed oil and crude oil within 5 years after China's accession.    
     
   Within 2 years after China's accession to the WTO, foreign majority ownership will be 
permitted and no geographic or quantitative 
restrictions will apply. Within 3 years after China's accession to the WTO, there will be no 
restriction on equity/form of establishment. 
None, starting no later than 5 years after China's accession. 
 
(4) Unbound except as indicated in Horizontal Commitments.  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
(4) Unbound except as indicated in Horizontal Commitments. 
    WT/ACC/SPEC/CHN/3
 Page 31Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  C. Retailing Services 
      
(CPC 61 and 63,  excepting  tobacco) 
  
(1) Unbound except for mail order. 
 
(2) None  
(3) Foreign service suppliers may supply 
services only in forms of joint ventures in five Special Economic Zones (Shenzhen, Zhuhai, 
Shantou, Xiamen and Hainan) and six cities 
(Beijing, Shanghai, Tianjin, Guangzhou, Dalian and Qingdao). In Beijing and Shanghai, a total 
of no more than four joint venture retailing 
enterprises are permitted respectively. In each of the other cities, no more than two joint 
venture retailing enterprises will be permitted. 
Two joint venture retailing enterprises among the four to be established in Beijing may set up 
their branches in the same city (i.e. Beijing). 
 Upon China's accession to the WTO, 
Zhengzhou and Wuhan will be immediately 
open to joint venture retailing enterprises. 
Within 2 years after China's accession to the 
WTO, foreign majority control will be permitted in JV retailing enterprises and all 
provincial capitals, Chongqing and Ningbo will 
be open to joint venture retailing enterprises.  
Foreign service suppliers will be permitted to 
engage in the retailing of all products, except for the retailing of books, newspapers and 
magazines within 1 year after accession, the 
retailing of pharmaceutical products, pesticides, mulching films and processed oil within 3 years 
after accession and retailing of chemical 
fertilizers within 5 years after accession.   
(1) Unbound except mail order. 
 
(2) None  
(3) None 
  
 
  
 
  
 
   
Upon accession, foreign-
invested enterprises may 
distribute their products manufactured in China, 
including those excepted 
products as listed in the market access or Sector or sub-sector 
column, and provide 
subordinate services as defined in Annex 1. 
 
Upon accession, foreign service suppliers will be permitted to 
provide full range of related 
subordinate services, including after sales services, as defined 
in Annex 1, for the products 
they distribute.  WT/ACC/SPEC/CHN/3 
Page 32 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  
Within 3 years after China's accession to the 
WTO, there will be no geographic, quantitative 
restrictions, equity or form of establishment restriction. 
 
However, for chain stores with more than 30 stores distributing motor vehicles, wool and 
products listed above and listed in the Annex 2a 
of the Protocol of China's WTO Accession, foreign majority ownership will not be 
permitted. The foreign chain store operators 
will have the freedom of choice of partner, legally established in China according to 
Chinese laws and regulations. Within 5 years 
after accession, there will be no equity restriction for chain stores with more than 30 
stores distributing motor vehicles. 
 (4) Unbound except as indicated in Horizontal 
Commitments. 
  
 
 
  
 
  
 
  
 
  
 
  
 
 (4) Unbound except as indicated in 
Horizontal Commitments.    WT/ACC/SPEC/CHN/3
 Page 33Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  D. Franchising 
     
  
 
  
 
  E. Wholesale or retail trade services away from a fixed 
location 
  
 
For all sub-sectors above  
 
  
(1) None 
 
(2) None  
(3) Within 3 years after China's accession to the 
WTO, none.  
 
(1) None  
(2) None 
 (3) Within 3 years after China's accession to the 
WTO, none
11. 
 (4)  Unbound except as indicated in Horizontal 
Commitments. 
   
(1) None 
 
(2) None  
(3) Within 3 years after China's accession to 
the WTO, none.  
 
(1) None  
(2) None 
 (3) Within 3 years after China's accession to 
the WTO, none. 
 (4) Unbound except as indicated in 
Horizontal Commitments.   
                                                      
 
11 See paragraph of the Working Party Report.  WT/ACC/SPEC/CHN/3 
Page 34 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
5.  EDUCATIONAL 
     SERVICES 
(Excluding special education services e.g. military, police, 
political and party schoo
l 
education)     
A. Primary education
 
   services (CPC 921, 
   excluding national  
   compulsory education  
   in CPC 92190)  
B. Secondary education
 
   services (CPC 922, 
   excluding national  
   compulsory education  
   in CPC 92210)  
C. Higher education
 
   services (CPC 923) 
 
D. Adult education  
   services  (CPC 924) 
 
E. Other education  
   services  (CPC 929) 
  
(1) Unbound 
 
(2) None  
(3) Joint schools will be established, 
with foreign majority ownership permitted. 
 
(4) Unbound except as indicated in 
Horizontal Comm itments and the 
following: 
 
foreign individual education service 
suppliers may enter into China to 
provide education services when 
invited or employed by Chinese schools and other education 
institutions. 
 
  
(1) Unbound 
 
(2) None  
(3) Unbound 
  
 
(4) Qualifications are as follows:  
possession of Bachelor's degree or above and 
an appropriate professional title or certificate, 
with two years’ professional experiences.    WT/ACC/SPEC/CHN/3
 Page 35Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
 6.  ENVIRONMENTAL 
     SERVICES  
     (excluding environmental      quality monitoring and 
 pollution source inspection) 
   A. Sewage Services 
      (CPC 9401)   
    B. Solid Waste Disposal 
     Services(CPC 9402) 
    C. Cleaning Services of 
     Exhaust Gases (CPC 9404) 
   D. Noise Abatement 
     Services (CPC 9405) 
   E. Nature and Landscape 
     Protection Services 
     (CPC 9406) 
 
  F. Other Environmental      Protection Services 
     (CPC 9409) 
     G. Sanitation Services 
(CPC 9403) 
  
(1) Unbound except for environmental 
consultation services. 
 (2) None 
 
(3) Foreign services suppliers engaged in the environmental services are permitted to provide 
services only in the form of joint ventures, with 
foreign majority ownership permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments.  
(1) None 
 
 (2) None 
 
(3) None  
 
  
(4) Unbound except as indicated in 
Horizontal Commitments.   WT/ACC/SPEC/CHN/3 
Page 36 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
7. FINANCIAL SERVICES 
 
A. All Insurance and Insurance-Related Services
12 
 
(a) Life, health and pension/annuities insurance 
 
 b) Non-life insurance 
 
 c) Reinsurance 
 
 d) Services auxiliary to insurance 
  
(1) Unbound except for international marine, 
aviation, and transport insurance and 
reinsurance, and for brokerage for insurance of large scale commercial risks and brokerage for 
reinsurance. 
 (2) Unbound for brokerage. Other, none. 
 
(3) A. Form of establishment  
Foreign non-life insurers will be permitted to 
establish as a branch or as a joint venture with 51% foreign ownership. Within 2 years after 
China's accession, foreign non-life insurers will 
be permitted to establish as a wholly-owned subsidiary; i.e., with no form of establishment 
restrictions.  
   Upon accession, foreign life insurers will be 
permitted 50% foreign ownership   in a joint 
venture with the partner of their choice.  
 
  The joint venture partners can freely agree the terms of their engagement,     provided they 
remain within the limits of the commitments 
contained in this   schedule.  
  
(1) None 
 
  
(2) None 
  
 
(3) Foreign insurance institutions shall not engage in the statutory insurance business.  
 
  
                                                      
 
12 Any further authorization provided to fore ign insurers after accession under more fa vorable conditions than those contained in  this schedule (including the extension 
of grandfathered investments through branchin g, sub-branching or any other legal form), will be made available to other foreign  service suppliers which so requested.   WT/ACC/SPEC/CHN/3
 Page 37Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
For brokerage for insurance of large scale 
commercial risks and brokerage for   
reinsurance: upon accession, joint venture with foreign equity no more than 50%   will be 
permitted; within 3 years after China's 
accession, foreign equity share   shall be no more than 51%; within 5 years after China's 
accession, wholly     foreign owned subsidiary 
will be permitted.     For other brokerage services: Unbound 
 
Internal branching for an insurance firm will be permitted consistent with the phase out of 
geographic restrictions. 
 B. Geographic Coverage 
Upon accession, foreig n life and non-life 
insurers, and insurance brokers will be permitted to provide services in Shanghai, 
Guangzhou, Dalian, Shenzhen and Foshan. 
Within 2 years after China's accession, foreign 
life and non-life insurers, and insurance brokers 
will be permitted to provide services in the following cities: Beijing, Chengdu, Chongqing, 
Fuzhou, Suzhou, Xiamen, Ningbo, Shenyang, 
Wuhan and Tianjin. Within 3 years after China's accession, there will be no geographic 
restrictions. 
     WT/ACC/SPEC/CHN/3 
Page 38 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
C. Business Scope 
Upon accession, foreign non-life insurers will 
be permitted to provide "master policy"13 
insurance/insurance of large scale commercial 
risks, which has no geographic restrictions. 
 Foreign non-life insurers are permitted to 
provide insurance of enterprises abroad, 
property insurance, related liability insurance and credit insurance of foreign-invested 
enterprises upon accession . Within 2 years after 
China's accession, foreign non-life insurers will 
be permitted to provide the full range of non-
life insurance services to both foreign and 
domestic clients.  
Foreign insurers are permitted to provide 
individual (not group) insurance to foreigners and Chinese citizens; within 3 years after 
accession, foreign insurers will be permitted to 
provide health insurance, group insurance and 
pension/annuities insurance to foreigners and 
Chinese.  
Upon accession, foreign insurers will be 
permitted to provide reinsurance services for   life and non-life insuran ce as a branch, JV, or 
wholly-owned subsidiary, without geographic 
or quantitative restrictions on the number of licenses issued. 
 
   
                                                      
 
13 The definition of "master policy" is attached in Annex of Insurance.  China may make changes to the definition and the new one  will be implemented on a national 
treatment basis.   WT/ACC/SPEC/CHN/3
 Page 39Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
D. Licenses: 
Upon accession, licenses w ill be issued with no 
economic needs test or quantitative limits on licenses. Qualifications for establishing a 
foreign insurance institution are as follows: 
- the investor shall be a foreign insurance company with more than 30 years of 
establishment experience in a WTO member; 
- it shall have a representative office for two consecutive years in China; 
- it shall have total assets of more than US $5 
billion at the end of the year prior to application. 
 
  4) Unbound except as indicated in Horizontal Commitments. 
  
 
 
  
 
  
 
  
 
  
 
(4) Unbound except as indicated in Horizontal Commitments.   WT/ACC/SPEC/CHN/3 
Page 40 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
 B. Banking and Other  
   Financial Services 
   (excluding insurance and securities) 
 
  Banking services as listed below: 
    
(a) Acceptance of deposits and other repayable funds from the 
public; 
(b) Lending of all types, including consumer credit, 
mortgage credit, factoring and 
financing of commercial transaction; 
(c) Financial leasing; 
(d) All payment and money transmission services, including 
credit, charge and debit cards, 
travellers cheques and bankers 
drafts; 
(e) Guarantees and commitments (f) Trading for own account or 
for account of customers: foreign 
exchange.   
 (1)  Unbound excep t for the following: 
 --Provision and transfer of financial 
information, and financial data processing and related software by suppliers of other financial 
services; 
 --Advisory, intermediation and other auxiliary financial services on all activities listed in 
subparagraphs (a) through (k), including credit 
reference and analysis, investment and portfolio research and advice, advice on acquisitions and 
on corporate restructuring and strategy. 
  (2)  None 
 
 (3) A. Geographic coverage. For foreign currency business, there will be no geographic 
restriction upon accession . For local currency 
business, the geographic restriction will be phased out as follows: Upon accession, 
Shanghai, Shenzhen, Tianjin and Dalian; 
Within one year after accession, Guangzhou, 
Zhuhai, Qingdao, Nanjing and Wuhan; within 2 
years after accession, Jinan, Fuzhou, Chengdu and Chongqing; within 3 years after accession, 
Kunming, Beijing and Xiamen; Within 4 years 
after accession, Shantou,  Ningbo, Shenyang 
and Xian. Within 5 years after accession, all 
geographic restrictions will be removed.  
  
(1) None 
 
  
 
  
 
  
 
 (2) None 
 
(3) except  for geographic restrictions and client limitations on local currency business 
(listed in the market access column), foreign 
financial institution may do business, without restrictions or need for case-by-case approval, 
with foreign invested enterprises, non-
Chinese natural persons, Chinese natural 
persons and Chinese enterprises. 
 Otherwise, none. 
  
For financial leasing services, 
foreign financial leasing 
corporation will be permitted to provide financial leasing 
service at the same time as 
domestic corporations.   WT/ACC/SPEC/CHN/3
 Page 41Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
B. Clients. For foreign currency business, 
foreign financial institutions will be permitted 
to provide services in China without restriction as to clients upon accession.  
 
For local currency business, within 2 years after accession, foreign financial institutions will be 
permitted to provide services to Chinese 
enterprises. Within 5 years after accession, foreign financial institutions will be permitted 
to provide services to all Chinese clients. 
Foreign financial institutions licensed for local currency business in on e region of China may 
service clients in any other region that has been 
opened for such business.  
C: Licensing. Criteria for authorization to deal 
in China's financial services sector are solely prudential (i.e., contain no economic needs test 
or quantitative limits on licenses). Within 5 
years after accession, any existing non-
prudential measures restricting ownership, 
operation, and juridical form of foreign financial institutions, including on internal 
branching and licenses, shall be eliminated.  
 Foreign financial institutions who meet the 
following condition are permitted to establish a 
subsidiary of a foreign bank or a foreign finance company in China: 
  --  total assets of more than US $10 billion at 
the end of the year prior to filing the application. 
    WT/ACC/SPEC/CHN/3 
Page 42 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
Foreign financial institutions who meet the 
following condition are permitted to establish a 
branch of a foreign bank in China:   --  total assets of more than US $20 billion at 
the  end of the year prior to filing the 
application.  
Foreign financial institutions who meet the 
following condition are permitted to establish a Chinese-foreign joint bank or a Chinese-foreign 
joint finance company in 
China:   --  total assets of more than US $10 billion at 
the end of the year prior to filing the 
application;  
Qualifications for foreign financial institutions 
to engage in local curr ency business are as 
follows: 
-- three years business operation in China and 
being profitable for two consecutive years prior 
to the application; 
 (4) Unbound except as indicated in Horizontal 
commitments. 
  
     WT/ACC/SPEC/CHN/3
 Page 43Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
Motor vehicle financing by non-
bank financial institutions 
   
(1) Unbound except for the following: 
  --Provision and tr ansfer of financial 
information, and financial data processing and related software by suppliers of other financial 
services; 
--Advisory, intermediation and other auxiliary financial services on all activities listed in 
subparagraphs (a) through (k), including credit 
reference and analysis, investment and portfolio research and advice, advice on acquisitions and 
on corporate restructuring and strategy. 
 (2) None 
 
(3) None  
(4) Unbound except as indicated in Horizontal 
Commitments.   
 
 
  
 
  
 
  
 
  
 
  
 (4) Unbound except as indicated in 
Horizontal Commitments.  
 
Other financial services as listed below: 
(k) Provision and transfer of 
financial information, and financial data processing and 
related software by supplier of 
other financial services; (l) Advisory, intermediation and 
other auxiliary financial services 
on all activities listed in subparagraphs (a) through (k), 
including credit reference and 
analysis, investment and portfolio research and advice, 
advice on acquisitions and on 
corporate restructuring and strategy. 
 
 
   
(1) None  
(2) None 
 (3) None (Criteria for authorization to deal in 
China's financial services sector are solely 
prudential (i.e., contain no economic needs test or quantitative limits on licenses). 
Branches of foreign institutions are permitted. 
 (4) Unbound except as indicated in Horizontal 
Commitments. 
  
(1) None  
(2) None 
 (3) None  
 
  
 
 (4) Unbound except as indicated in  
Horizontal Commitments.   WT/ACC/SPEC/CHN/3 
Page 44 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
   Securities  
(1)  Unbound except for the following: 
Foreign securities institutions may engage 
directly  (without Chinese intermediary) in B share 
business. 
 (2)  None 
 
(3)  a. Unbound, except for the following: Upon accession, representative offices in China 
of foreign securities institutions may become 
Special Members of all  Chinese stock exchanges. 
 
   Upon accession, foreign service suppliers will be permitted to establish joint ventures with 
foreign investment less than 33% to conduct 
domestic securities investment fund management business. Within 3 years after 
China's accession, foreign investment shall be 
no more than 49%. 
  
Within 3 years after accession, foreign securities institutions  
will be permitted to establish joint ventures, 
with foreign minority ownership not exceeding 1/3, to engage (without Chinese intermediary) 
in underwriting A shares and in underwriting 
and trading of B and H shares as well as government and corporate debts, launching and 
management of funds. 
 b. Criteria for authorization to deal in China's 
financial industry are solely prudential (i.e., 
contain no economic needs test or quantitative limits on licenses). 
 
(4)  Unbound except as indicated in Horizontal Commitments.  
(1)  None 
 
  
 
 (2)  None 
 
(3)  None  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
(4)  Unbound except as indicated in Horizontal Commitments.    WT/ACC/SPEC/CHN/3
 Page 45Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
9. TOURISM AND TRAVEL 
RELATED SERVICES 
 A. Hotels (including apartment 
buildings) and Restaurants 
 (CPC 641-643)  
 
  
 
  
 
  
 
  
 
 
 
  
 
   
1) None 
 
2) None  
3) Foreign services suppliers may construct, 
renovate and operate hotel and restaurant establishments in China in the form of joint 
ventures with foreign majority ownership 
permitted. Within 4 years after accession, wholly-foreign-owned subsidiaries will be 
permitted. 
 4) Unbound, except as indicated in Horizontal 
commitments and as follows: 
  Foreign managers, specialists including chefs and senior executives who have signed 
contracts with joint venture hotels and 
restaurants in China shall be permitted to provide services in China.  
 
 
  
1) None 
 
2) None  
3) None 
  
 
  
 
 4) Unbound, except as indicated in Horizontal 
commitments. 
  
 
  
 
  
  WT/ACC/SPEC/CHN/3 
Page 46 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
B. Travel agency and  tour 
operator (CPC 7471)  
  
1) None 
 
2) None  
3) Foreign services supplier who meet the 
following conditions are permitted to provide services in the form of joint venture travel 
agencies and tour oper ators in the holiday 
resorts designated by the Chinese government and in the cities of Beijing, Shanghai, 
Guangzhou and Xi'an upon accession. Within 3 
years after accession foreign majority ownership will be permitted. Within 6 years 
after accession, who lly-foreign-owned 
subsidiary will be permitted and geographic restrictions will be removed. 
 
 a) a travel agency and tour operator mainly 
engaged in travel business;  
  
1) None 
 
2) None  
3) None except that joint ventures or wholly 
foreign-owned travel agencies and tour 
operators are not permitted to engage in the 
activities of Chinese travelling abroad and to 
Hong Kong, Macao and Taiwan region.    WT/ACC/SPEC/CHN/3
 Page 47Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
 
  
b) Annual world-wide turnover exceeds 
US$ 40 million. 
 The registered capital of JV travel agency/tour 
operator shall be no less than RMB 4 million. 
Within 3 years after China's accession, the registered capital shall be no less than RMB 2.5 
million. 
 The business scope of the travel agency/ tour 
operator is as follows: 
 a) travel and hotel accommodation services for 
foreign travellers which can be made directly 
with transportation and hotel operators in China covering such operations; b) travel services and 
hotel accommodation services for domestic 
travellers which can be made directly with transportation and hotel operators in China 
covering such operations; c) conducting of 
tours within China for both domestic and 
foreign travellers, and d) travellers check 
cashing services within China.  
Within 6 years after accession, there will be no 
restriction on the establishment of branches of the JV travel agency/tour operator. And the 
requirement on registered capital of foreign-
invested travel agency/tour operator will be the same as that of Chin ese travel agency/tour 
operator.  
  4) Unbound, except as indicated in Horizontal 
commitments.  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
 4) Unbound, except as indicated in Horizontal 
commitments 
  
 
  WT/ACC/SPEC/CHN/3 
Page 48 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
11. TRANSPORT SERVICES 
 
C.(d). Aircraft repair and      maintenance services 
    (CPC 8868) 
   
(1) Unbound
14 
 
(2) None  
(3) Foreign service suppliers are permitted to 
establish joint venture aircraft repair and maintenance enterprises in China. 
 
The Chinese side shall hold controlling shares or be in a dominant position in the joint 
ventures. 
 Licenses for the establishment of joint ventures 
are subject to economic needs test. 
 (4) Unbound except as indicated in Horizontal 
Commitments. 
   
(1) Unbound
14 
 
(2) None  
(3) The joint ventures have the obligation to 
undertake business in the international market. 
 
  
 
  
 
 (4) Unbound except as indicated in 
Horizontal Commitments. 
  
                                                      
 
14 Unbound due to lack of technical feasibility.   WT/ACC/SPEC/CHN/3
 Page 49Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
Computer reservation 
system (CRS) services 
    
(1) A. Foreign Computer Reservation System, 
when having agreements with Chinese aviation 
enterprises and Chinese Computer Reservation System, may provide services to Chinese 
aviation enterprises and Chinese aviation agents 
by connecting with Chinese Computer Reservation System. 
 
B. Foreign Computer Reservation System may provide services to representative offices and 
sales offices established in the destination cities 
in China by foreign aviation enterprises which have the right to engage in business according 
to the bilateral aviation agreements. 
 C. Direct access to and use of foreign Computer 
Reservation System by Chinese aviation 
enterprises and agents of foreign aviation enterprises are subject to approval of the 
General Administration of Civil Aviation of 
China(CAAC). 
 
(2) None  
(3) Unbound 
 (4) Unbound except as indicated in Horizontal 
Commitments. 
  
(1) None 
 
  
 
  
 
  
 
  
 
  
 
  
 
 
(2) None 
 (3) Unbound 
 
 (4) Unbound except as indicated in 
Horizontal Co mmitments.     WT/ACC/SPEC/CHN/3 
Page 50 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  A. Maritime Transport 
     Services                   
      -  International transport 
        (freight and passengers) 
        (CPC 7211 and 7212         less cabotage transport 
        services)   
 
 
  
 (1)  (a) Liner shipping (including passenger  
        transportation): None  
     (b) Bulk, tramp and other international 
        shipping (including passenger         transportation): None 
 
 (2)  None   
 
 
  
 (1)  (a) None 
  
     (b) None 
  
 
 (2)  None  
The following services at the 
port are made available to 
international maritime transport suppliers on reasonable and 
non-discriminatory terms and 
conditions:  
 1.  Pilotage 
  2.  Towing and tug assistance 
 
 3.  Provisioning, fueling and watering 
 
 4.  Garbage collecting and ballast waste disposal 
    WT/ACC/SPEC/CHN/3
 Page 51Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
  
      
 (3)  (a) Establishment of registered companies 
for the purpose of operating a fleet under the 
national flag of the People's Republic of China:  
Foreign service suppliers are permitted to 
establish joint venture shipping companies.  
Foreign investment shall not exceed 49 per cent 
of the total registered capital of the joint venture. 
 
The chairman of board of directors and the general manager of the joint venture shall be 
appointed by the Chinese side.  
 (b) Other forms of commercial presence for the 
supply of international maritime transport 
services: Unbound  
 (4)  (a) Ship's cr ew: Unbound except as 
indicated in Horizontal Commitments. 
     
     (b) Key personnel employed by Commercial Presence as defined under mode (3) (b) above: 
Unbound except as indicated in Horizontal 
Commitments.     
 (3)  (a) None 
 
  
 
  
 
  
 
  
 
      (b) Unbound 
 
  
 (4)  (a) Unbound except as indicated in 
Horizontal Commitments. 
  
     (b) Unbound except as indicated in Horizontal Commitments.  
 5.  Port Captain's services 
 
 6.  Navigation aids  
 7.  Shore-based operational 
services essential to ship operations, including 
communications, water and 
electrical supplies  
 8.  Emergency repair facilities 
  9.  Anchorage, berth and 
berthing services.  WT/ACC/SPEC/CHN/3 
Page 52 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
  H. Maritime Auxiliary Services 
  (a) Maritime cargo-handling 
     services      (CPC 741) 
 
  
 
  
 
   (c) Customs clearance services   
 (1)  Unbound
15  
 
 (2)  None  
 (3)  Only in the form of joint ventures, with 
foreign majority ownership permitted.  
 (4)  Unbound except as indicated in Horizontal 
Commitments.  
  
  (1)  Unbound
15 
 (2)  None 
  (3)  Only in the form of joint ventures, with 
foreign majority ownership permitted. 
  (4)  Unbound except as indicated in Horizontal 
Commitments.  
 (1)  Unbound 
15 
 
 (2)  None  
 (3)  None 
  
 (4)  Unbound except as indicated in 
Horizontal Commitments.   
  
  (1)  Unbound
15 
 
 (2)  None  
 (3)  None 
  
 (4)  Unbound except as indicated in 
Horizontal Commitments. 
  
                                                      
 
15 Unbound due to lack of technical feasibility.   WT/ACC/SPEC/CHN/3
 Page 53Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
   
  (d) Container station and 
     depot services 
  
 
  
 
  
    
  (e) Maritime agency services  
 
  
 
  
         
 (1)  Unbound
16 
 
 (2)  None  
 (3)  Only in forms of joint ventures, with 
foreign majority ownership permitted.  
 (4)  Unbound except as indicated in Horizontal 
Commitments.  
  
 (1)  None  
 (2)  None 
  (3)  Only in forms of joint ventures, with 
foreign equity share no more than 49%. 
  (4)  Unbound except as indicated in Horizontal 
Commitments. 
   
 (1)  Unbound
16  
 
 (2)  None  
 (3)  None 
  
 (4)  Unbound except as indicated in 
Horizontal Commitments.  
  
 (1)  None  
 (2)  None 
  (3)  None 
 
  (4)  Unbound except as indicated in 
Horizontal Commitments. 
   
 
  B. Internal Waterway 
    Transport Services  
  (b) Freight transport 
     (CPC 7222)  
 
  
 
   
 
  
 (1)  Only international shipping in ports open 
to foreign vessels shall be permitted.  
 (2)  None 
  (3)  Unbound 
 
 (4)  Unbound except as indicated in Horizontal Commitments. 
  
 
  
 (1) Limitations as in dicated under market 
access column.  
 (2)  None 
  (3)  Unbound 
 
 (4)  Unbound except as indicated in Horizontal Commitments. 
 
  
                                                      
 
16 Unbound due to lack of feasibility.  WT/ACC/SPEC/CHN/3 
Page 54 Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
TRANSPORT SERVICES 
 
Freight Transportation by rail (CPC7112) 
 
Freight Transportation by road in trucks or cars (CPC7123) 
 
  
 
  
 
  
 
  
 
 
 
  
b) Storage and warehousing 
services (CPC742)  
  
1) None 
 
2) None  
3) Only in the form of joint ventures, with 
foreign investment not to exceed 49%.   
For rail transport, within 3 years after China's 
accession, foreign major ity ownership will be 
permitted and within 6 years after China's 
accession, wholly-foreign-owned subsidiaries 
will be permitted.  
For road transport, within 1 year after China's 
accession, foreign major ity ownership will be 
permitted. Within 3 years after China's 
accession, wholly-foreign-owned subsidiaries 
will be permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments. 
 
  
1) Unbound 
 2) None 
 
3) Upon accession, only in the form of joint 
ventures, with foreign investment not to exceed 
49%. Within 1 year after China's accession, 
foreign majority ownership will be permitted and within 3 years of China's accession, 
wholly-foreign-owned subsidiaries will be 
permitted.  
(4) Unbound except as indicated in Horizontal 
Commitments.   
1) None 
 
2) None  
3) None 
  
 
  
 
  
 
  
 
  
(4) Unbound except as indicated in 
Horizontal Commitments. 
 
  
1) Unbound 
 2) None 
 
3) None  
 
  
 
  
(4) Unbound except as indicated in 
Horizontal Commitments.   
   WT/ACC/SPEC/CHN/3
 Page 55Sector or sub-sector Limitations on  market access Limitation on nation al treatment Additi onal commitments 
 
Freight Forwarding agency 
services (CPC 748 and 749 
excluding freight inspection)  
 
   
1) None 
 
2) None  
3) Upon accession, foreign freight forwarding 
agencies which have at least 3 consecutive years experience are permitted to set up freight 
forwarding agency joint ventures in China, with 
foreign investment not to  exceed 50%; within 1 
year after China's accession, foreign majority 
ownership will be permitted. Within 4 years 
after China's accession, wholly-foreign-owned 
subsidiaries will be permitted. 
 
The minimum registered capital of the joint venture shall be no less than US $ 1 million. 
Within 4 years after accession, national 
treatment will be accorded in this respect. Operation term of the joint ventures shall not 
exceed 20 years.  
 
After one year operating in China, the joint 
venture can set up branches when the registered capital of both sides has been provided. 
Another US$ 120,000 shall be added to the 
original registered capital of the joint venture for the set-up of each branch. Within two years 
after China's accession to the WTO, this 
additional registered capital requirement will be implemented on the national treatment basis. 
 
A foreign freight forwarding agency may set up a second joint venture after its first joint venture 
has been in operation for 5 years. Within two 
years after China's accession to WTO, this requirement will be reduced to 2 years. 
 
4)Unbound except as indicated in Horizontal Commitments.  
1) None 
 
2) None  
3) None 
  
 
  
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
4)Unbound except as indicated in Horizontal Commitments.  
 
 WT/ACC/SPEC/CHN/3 
Page 56  
 
ANNEX 1 
 
2104  Negotiating Group on Basic Telecommunications
    24 April 1996 
 
 
REFERENCE PAPER   
  
Scope
 
 The following are definitions and principles on the regulatory framework for the basic 
telecommunications services.    
Definitions
 
 Users
 mean service consumers and service suppliers.   
 Essential facilities
 mean facilities of a public telecommunications transport network or service that 
 
(a) are exclusively or predominantly provided by a single or limited number of suppliers;  
and 
 
(b) cannot feasibly be economically or tec hnically substituted in order to provide a 
service. 
 
A major supplier  is a supplier which has the ability to mate rially affect the terms of participation 
(having regard to price and supply) in the releva nt market for basic telecommunications services as a 
result of:   (a) control over essential facilities;  or 
 
 (b) use of its position in the market.   1. Competitive safeguards
 
 
1.1 Prevention of anti-competitive practices in telecommunications  
  Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone 
or together, are a major supplier from engaging  in or continuing anti-competitive practices. 
 
1.2 Safeguards
 
  The anti-competitive practices referred to above shall include in particular:  
(a) engaging in anti-competitive cross-subsidization;   
 
 (b) using information obtained from comp etitors with anti-competitive results;  and 
 
(c) not making available to other services suppliers on a timely basis technical  
information about essential facilities and co mmercially relevant information which 
are necessary for them to provide services.   WT/ACC/SPEC/CHN/3 
 Page 57 
 
 
  2. Interconnection
 
 2.1 This section applies to linking with supplie rs providing public telecommunications transport 
networks or services in order to allow the users of  one supplier to communicate with users of another 
supplier and  to access services provided by another supplier, where specific commitments are undertaken.   
2.2 Interconnection to be ensured
 
  Interconnection with a major supplier will be en sured at any technically feasible point in the 
network.  Such interconnection is provided.  
(a) under non-discriminatory terms, conditi ons (including technical standards and 
specifications) and rates and of a quality no less favourable than that provided for its 
own like services or for like services of non-affiliated service suppliers or for its subsidiaries or other affiliates; 
 
(b) in a timely fashion, on terms, conditions (including technical standards and 
specifications) and cost-oriented rates that ar e transparent, reasonable, having regard 
to economic feasibility, and sufficiently unbundl ed so that the supplier need not pay 
for network components or facilities that it does not require for the service to be provided;  and 
 
(c) upon request, at points in addition to the network termination points offered to the 
majority of users, subject to charges that reflect the cost of construction of necessary additional facilities. 
  2.3 Public availability of the pro cedures for interconnection negotiations
 
 
 The procedures applicable for interconnecti on to a major supplier will be made publicly 
available.   
2.4 Transparency of interconnection arrangements
 
  It is ensured that a major supplier will make  publicly available either its interconnection 
agreements or a reference interconnection offer.   
2.5 Interconnection:  dispute settlement
 
  A service supplier requesting interconnection with  a major supplier will have recourse, either: 
  (a) at any time or 
 
 (b) after a reasonable period of time which has been made publicly known  to an independent domestic body, which may be a regulatory body as referred to in paragraph 5 
below, to resolve disputes regarding appropriate te rms, conditions and rates for interconnection within 
a reasonable period of time, to the extent th at these have not been established previously. WT/ACC/SPEC/CHN/3 
Page 58  
 
   3. Universal service
 
 
 Any Member has the right to define the ki nd of universal service obligation it wishes to 
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are 
administered in a transparent, non-discriminator y and competitively neutral manner and are not more 
burdensome than necessary for the kind of universal service defined by the Member.       
 
4. Public availability of licensing criteria
 
  Where a licence is required, the following will be made publicly available:  
(a) all the licensing criteria and the period of  time normally required to reach a decision 
concerning an application for a licence  and 
 
(b) the terms and conditions of  individual licences. 
  The reasons for the denial of a licence will be  made known to the applicant upon request. 
 
 5. Independent regulators
 
  The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services. The decisions of and the procedures used by regulators shall be 
impartial with respect to all market participants.   6. Allocation and use of scarce resources
 
 
 Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be carried out in an obj ective, timely, transparent and non-discriminatory 
manner. The current state of allocated frequency ba nds will be made publicly available, but detailed 
identification of frequencies allocated for specific government uses is not required.  
 
  WT/ACC/SPEC/CHN/3 
 Page 59 
 
 
 
 RESTRICTED  
WORLD TRADE  S/GBT/W/2/Rev.1  
  16 January 1997 
ORGANIZATION  
  (97-0173)   
 
Group on Basic Telecommunications  
 
  
Note by the Chairman
 
 
Revision  
 
 It has been suggested by a number of delegations  that it might be helpful to produce a brief and 
simple note on assumptions applicable to the schedu ling of commitments in basic telecoms.  The 
purpose of the attached note is to assist delegations in ensuring the transparency of their commitments 
and to promote a better understanding of the meaning of  commitments.  This note is not intended to have 
or acquire any binding legal status.  
 
 
NOTES FOR SCHEDULING BASIC TELECOM SERVICES COMMITMENTS  
  1. Unless otherwise noted in the sector column, any basic telecom service listed in the sector column: 
 
 (a) encompasses local, long distance and in ternational services for public and non-public 
use; 
  (b) may be provided on a facili ties-basis or by resale;  and 
  
 (c) may be provided through any means of technology (e.g., cable
1, wireless, satellites). 
 2. Subsector (g) --private leased ci rcuit services -- involves the ability  of service suppliers to sell or 
lease any type of network capacity for the supply of services listed in any ot her basic telecom service 
subsector unless otherwise noted in the sector column .  This would include capa city via cable, satellite 
and wireless network. 
 3. In view of points 1 and 2 above, it should not be necessary to list ce llular or mobile services as a 
separate subsector. However,  a number of Memb ers have done so, and a number of offers have 
commitments only in these subsectors.  Therefore, in  order to avoid extensive changes in schedules, it 
would seem appropr iate for Members to maintain separate entries for these subsectors. 
                                                     
 
 
1 Including all types of cable. WT/ACC/SPEC/CHN/3 
Page 60  
 
 RESTRICTED  
WORLD TRADE  S/GBT/W/3  
  3 February 1997 
ORGANIZATION  
  (97-0415)   
 
  Original:  English 
Group on Basic Telecommunications  
 
 
  
CHAIRMAN'S NOTE
 
 
Market Access Limitations on Spectrum Availability  
   Many Members have entries in the market acc ess column of their schedules indicating that 
commitments are "subject to availability of spectrum/frequency" or similar wording.  In light of the physical nature of spectrum and the constraints inhe rent in its use, it is understandable that Members 
may have sought to rely on these words to adequately  protect legitimate spectr um management policies.  
There is, however, doubt that words such as "subject to availability of spectrum/frequency" as listed in 
the market access column of many Members' schedules achieve that objective.   Spectrum/frequency management is not, per se , a measure which need s to be listed under 
Article XVI.  Furthermore under the GATS each Member  has the right to exercise spectrum/frequency 
management, which may affect the number of service suppliers, provided that th is is done in accordance 
with Article VI and other relevant provisions of the GATS.  This includes the ability to allocate 
frequency bands taking into account existing and fu ture needs.  Also, Members which have made 
additional commitment in line with the Reference Paper on regulatory principles are bound by its 
paragraph 6. 
 
 Therefore, words such as "subject to availability of spectrum/frequency" are unnecessary and should be deleted from Members' schedules.  WT/ACC/SPEC/CHN/3 
 Page 61 
 
 
ANNEX 2 
 
DISTRIBUTION SERVICES  
  
Distribution trade services are comprised of four main sub-sectors: 
  1) commission agents services,  2) wholesaling,  3) retailing, 
 4) franchising, 
 The principal services rendered in each subsector  can be characterized as reselling merchandise, 
accompanied by a variety of related subordina ted services, including inventory management; 
assembly, sorting and grading of bulk lots; breaking bulk lots and redistributing into smaller lots; 
delivery services; refrigeration, storage, warehousing and garage services; sale s promotion, marketing 
and advertising, installation and after sales servi ces including maintenance and repair and training 
services. Distribution services are generally covered by CPC 61, 62, 63 and 8929.  COMMISSION AGENTS' SERVICES consist of sales on a f ee or contract basis by an agent, broker 
or auctioneer or other wholesalers of goods /merchandise and related subordinated services. 
 
WHOLESALING consist of the sale of goods/merchandi se to retailers to industrial, commercial, 
institutional, or other professional business users, or to other whol esalers and related subordinated 
services.  
RETAILING SERVICES consist of the sale of  goods/merchandise for personal or household 
consumption either from a fixed location (e.g., store,  kiosk, etc.) or away from a fixed location and 
related subordinated services.   
FRANCHISING SERVICES consist of the sale of the u se of a product, trade name or particular 
business format system in exchange for fees or ro yalties. Product and trade name franchising involves 
the use of a trade name in exchange for fees or royalties and may include an obligation for exclusive 
sale of trade name products. Business format fra nchising involves the use of an entire business 
concept in exchange for fees and royalties, and ma y include the use of a trade name, business plan, 
and training materials and re lated subordinated services. WT/ACC/SPEC/CHN/3 
Page 62  
 
ANNEX 3 
 
Insurance: Definition of "Master Policy" 
 
 
Master policy is the policy that provides blanket coverage for the same legal person's property and 
liabilities located in different places. Master policy may only be issued by the business department of 
an insurer's head office or that of its authorized  province-level branch offices. Other branches are not 
allowed to issue master policy.  
(I) Master policy business with the state key cons truction projects as its subject-matter insured 
 If investors on the state key construction projects (i.e., projects that are so listed and annually announced by the State Development and Planning Commission) meet either of the following requirements, they may purchase master policy from in surers that are located in the same place as the 
investors' legal persons do. 
 1. The investment on the subject-matter insured is all from China (including the reinvestment 
from the foreign-invested enterpri ses in China), and the sum of investment of the investor accounts 
for over 15% of the total investment.  
2. The investment is partially from abroad, and partially from China (including the reinvestment 
from the foreign-invested enterprises in China), a nd the sum of investment of the Chinese investor 
accounts for over 15% for the total domestic investment.    For those projects that draw investment all from ab road, every insurer may provide coverage in the 
form of master policies. 
 (II) Master policy covering different subject s-matter insured of the same legal person 
 For those subjects-matter insured located in diffe rent places and owned by the same legal person 
(excluding financial, railway, and post and tel ecommunications industries and enterprises), master 
policy may be issued on the basis of either of the following conditions. 
 1. For the sake of payment of premium tax, in surance companies incorporated where the legal 
person or accounting unit of the insurance applicant is located are allowed to issue master policy. 
 
2. If over 50% of insurance amount of the subject -matter insured is from a larger or medium 
sized city, then insurers in that  city are allowed to issue master policy, no matter whether the 
insurance applicant's legal person or accounting unit is located in the city. 
 Motor insurance, credit insurance, employer liab ilities insurance, statuary insurance, and other 
insurance business excluded by the CIRC can not be underwritten or co-insured by insurers located 
other than where the subject-insured are lo cated, or covered under a master policy.  
     WT/ACC/SPEC/CHN/3
 Page 63LIST OF ARTICLE II EXEMPTION FOR CHINA  
  
Modes of supply: (1) Cross-border supply (2) Consumption ab road (3) Commercial presence (4) Presence of natural persons 
Sector or Sub-sector Description of Measures Indicating 
its Inconsistency with Article II Countries to Which 
the Measures 
Applies Intended 
Duration Conditions Creating the Need 
for the Exemption 
  Maritime Transport  
 International Transport 
  Freight and Passengers  
The parties concerned may, through bilateral agreement, establish entities to 
engage in usual business in China either 
as joint ventures or wholly-owned subsidiaries subject to the Chinese laws on joint ventures and on foreign capital enterprises for ships owned or operated by carriers of the parties concerned. 
 
  
Unspecified.   
Unforeseeable.  
According to present state of trade between signatories. 
  
Agreements of cargo sharing.  
Algeria, Argentina, 
Bangladesh, Brazil, Thailand, USA, Zaire.   
Subject to the 
effective duration of the agreements concerned.  
According to present state of 
trade between signatories. 
 
 
__________ 
 
 