WORLD TRADE
ORGANIZATIONGATS/SC/135
14 February 2002
(02-0796)
Trade in Services
THE PEOPLE'S REPUBLIC OF CHINA
Schedule of Specific Commitments
(This is authentic in English only)
_______________GATS/SC/135
Page 2THE PEOPLE'S REPUBLIC OF CHINA -  SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORS INCLUDED INTHIS SCHEDULE(3) In China, foreign invested
enterprises include foreign capitalenterprises (also referred to aswholly foreign-owned enterprises)and joint venture enterprises andthere are two types of joint ventureenterprises: equity joint venturesand contractual joint ventures.
1(3) Unbound for all the existing
subsidies to domestic servicessuppliers in the sectors of audio-visual, aviation and medicalservices.
The proportion of foreigninvestment in an equity jointventure shall be no less than 25 percent of the registered capital of thejoint venture.
The establishment of branches by
foreign enterprises is unbound,unless otherwise indicated inspecific sub-sectors, as the laws andregulations on branches of foreignenterprises are under formulation.
Representative offices of foreignenterprises are permitted to beestablished in China, but they shallnot engage in any profit-makingactivities except for therepresentative offices under CPC861, 862, 863, 865 in the sectoralspecific commitments.
                                                     
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 contributions of the joint venture parties. Eq uity participation by all parties to the contractual joint venture is not
required, but is determined pursuant to the joint venture contract.GATS/SC/135
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The conditions of ownership,
operation and scope of activities, asset out in the respective contractualor shareholder agreement or in alicence establishing or authorizingthe operation or supply of servicesby an existing foreign servicesupplier, will not be made morerestrictive than they exist as of thedate of China's accession to theWTO.
The land in the People's Republic of
China is State-owned. Use of landby enterprises and individuals issubject to the following maximumterm limitations:
(a) 70 years for residential purposes;
(b) 50 years for industrial purposes;(c) 50 years for the purpose of
education, science, culture, publichealth and physical education;
(d) 40 years for commercial, tourist and
recreational purposes;
(e) 50 years for comprehensive
utilization or other purposes.
(4) Unbound except for measures
concerning the entry and temporarystay of natural persons who fall intoone of the following categories:(4) Unbound except for the measures
concerning the entry and temporarystay of natural persons who fall intothe categories referred to in themarket access column.GATS/SC/135
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(a) Managers, executives and
specialists defined as senioremployees of a corporation of aWTO Member that has establisheda representative office, branch orsubsidiary in the territory of thePeople's Republic of China,temporarily moving as intra-corporate transferees, shall bepermitted entry for an initial stay ofthree years;
(b) Managers, executives and
specialists defined as senioremployees of a corporation ofWTO Members, being engaged inthe foreign invested enterprises inthe territory of the People'sRepublic of China for conductingbusiness, shall be granted a long-term stay permit as stipulated in theterms of contracts concerned or aninitial stay of  three years,whichever is shorter;
(c) Service salespersons – persons not
based in the territory of the People'sRepublic of China and receiving noremuneration from a source locatedwithin China, and who are engagedin activities related to representing aservice supplier for the purpose ofnegotiation for the sale of servicesof 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: entryfor salespersons is limited to a90-day period.GATS/SC/135
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II. SPECIFIC COMMITMENTS
A. Professional Services
(a) Legal Services
(CPC 861, excluding Chinese lawpractice)(1) None
(2) None(3) Foreign law firms can provide legal
services only in the form ofrepresentative offices in Beijing,Shanghai, Guangzhou, Shenzhen,Haikou, Dalian, Qingdao, Ningbo,Yantai, Tianjin, Suzhou, Xiamen,Zhuhai, Hanghou, Fuzhou, Wuhan,Chengdu, Shenyang and Kunmingonly.(1) None
(2) None(3) All representatives shall be resident
in China no less than six monthseach year.  The representative officeshall not employ Chinese nationalregistered lawyers outside of China.
Representative offices can engage inprofit-making activities.Representative offices in China shallbe no less than the numberestablished upon the date ofaccession.  A foreign law firm canonly establish one representativeoffice in China.  The above-mentioned geographic andquantitative limitations will beeliminated within one year afterChina's accession to the WTO.GATS/SC/135
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Business scope of foreign representative
offices is only as follows:
(a) to provide clients with consultancy
on the legislation of thecountry/region where the lawyers ofthe law firm are permitted to engagein lawyer's professional work, andon international conventions andpractices;
(b) to handle, when entrusted by clients
or Chinese law firms, legal affairs ofthe country/region where thelawyers of the law firm arepermitted to engage in lawyer'sprofessional work;
(c) to entrust, on behalf of foreign
clients, Chinese law firms to dealwith the Chinese legal affairs;
(d) to enter into contracts to maintain
long-term entrustment relations withChinese law firms for legal affairs;
(e) to provide information on the
impact of the Chinese legalenvironment.
Entrustment allows the foreignrepresentative office to directly
instruct lawyers in the entrusted
Chinese law firm, as agreed betweenboth parties.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
The representatives of a foreign law
firm shall be practitioner lawyerswho are members of the bar or lawsociety in a WTO member and havepracticed for no less than two yearsoutside of China. The Chief
representative shall be a partner or
equivalent (e.g., member of a lawfirm of a limited liabilitycorporation) of a law firm of a WTOmember and have practiced for noless than three years.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
(b) Accounting, auditing and
bookkeeping services (CPC 862)(1) None
(2) None(3) Partnerships or incorporated
accounting firms are limited to
Certified Public Accountants(CPAs) licensed by the Chineseauthorities.
(4) Unbound except as indicted in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicted in
horizontal commitments.- Foreign accounting firms are
permitted to affiliate with Chinesefirms and enter into contractualagreements with their affiliatedfirms in other WTO Members.
- Upon accession to the WTO,
issuance of licenses to thoseforeigners who have passed theChinese national CPA examinationshall be accorded national treatment.
- Applicants will be informed of
results in writing no later than 30days after submission of theirapplications.GATS/SC/135
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- Existing contractual joint venture
accounting firms are not limitedonly to CPAs licensed by Chineseauthorities.
- Accounting firms providing services
in CPC 862 can engage in taxationand management consultingservices. They will not be subject torequirements on form ofestablishment in CPC 865 and 8630.
(c) Taxation services
(CPC 8630)(1) None
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.None, within six years of China'saccession, foreign firms will bepermitted 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 isrequired except scheme design .
(2) None(3) Only in the form of joint ventures,
with foreign majority ownership
permitted.
Within five years after China'saccession to the WTO, whollyforeign-owned enterprises will bepermitted.
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) Foreign service suppliers shall be
registered architects/engineers, or
enterprises engaged in
architectural/engineering/urbanplanning services, in their homecountry.
(4) Unbound, except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(h) Medical and dental services
(CPC 9312)(1) None
(2) None(3) Foreign service suppliers are
permitted to establish joint venturehospitals or clinics with Chinesepartners with quantitative limitations
in line with China's needs, with
foreign majority ownershippermitted.
(4) Unbound, except as indicated in
horizontal commitments and asfollows:(1) None
(2) None(3) The majority of doctors and medical
personnel of the joint venturehospital and clinics shall be ofChinese nationality.
(4) Unbound, except as indicated in
horizontal commitments.
Foreign doctors with professionalcertificates issued by their homecountry shall be permitted to provideshort-term medical services in Chinaafter they obtain licenses from theMinistry of Public Health. The term
of service is six months and may
extend to one year.
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) Qualifications are as follows:
certified engineers, or personnelwith Bachelor's degree (or above)
and three years of experience in
these fields.GATS/SC/135
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(b) Software implementation services
(CPC 842)
- Systems and software consulting
services (CPC 8421)
- Systems analysis services
(CPC 8422)
- 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 ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Qualifications are as follows:
certified engineers, or personnel
with Bachelor's degree (or above)and three years of experience inthese fields.
(c) Data processing services
(CPC 843)
- Input preparation services
(CPC 8431)
-  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) Qualifications are as follows:
certified engineers, or personnel
with Bachelor's degree (or above)
and three years of experience inthese fields.
D. Real Estate Services
(a) Real estate services involving own
or leased property(CPC 821)(1) None
(2) None
(3) None except for the following:
Wholly foreign-owned enterprisesare not permitted for high standardreal estate projects
2, such as
apartments and office buildings, but
excluding luxury hotels.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound except as indicated in
horizontal commitments.
                                                     
2 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.GATS/SC/135
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(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 ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in  
horizontal commitments.
F. Other Business Services
(a) Advertising Services
(CPC 871)(1) Only through advertising agents
registered in China who have theright to provide foreign advertisingservices.
(2) Only through advertising agents
registered in China who have the
right to provide foreign advertisingservices.
(3) Foreign service suppliers are
permitted to establish advertisingenterprises in China only in the form
of joint ventures with foreign
investment no more than 49 percent.Within two years after China'saccession, foreign majorityownership will be permitted and
within four years after China's
accession, wholly foreign-ownedsubsidiaries 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.GATS/SC/135
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(c) Management Consulting services
(CPC 865)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.None, within six years of China's
accession, foreign firms will be
permitted to establish whollyforeign-owned subsidiaries.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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(e) Technical testing and analysis
services(CPC 8676)and freight inspection covered byCPC 749,excluding statutory inspectionservices for freight inspectionservices(1) None
(2) None(3) Foreign services suppliers which
have been engaged in inspectionservices in their home countries formore than three years are permitted
to establish joint venture technical
testing, analysis and freightinspection companies with no lessthan US$ 350,000 in registeredcapital.Within two years after China's
accession, foreign majority
ownership will be permitted andwithin four years after China'saccession, wholly foreign-ownedsubsidiaries 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.
(f) Services incidental to agriculture,
forestry, hunting and fishing(CPC 881, 882)
m. Related scientific technical
consulting services(CPC 8675)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(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 otherscientific prospecting services(CPC 86751)Sub-surface surveying services(CPC 86752)(1) None
(2) None(3) Only in the form of petroleum
exploitation in cooperation withChinese partners
(4) Unbound except as indicated in  
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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- Onshore oil-field services (1) None
(2) None(3) Only in the form of petroleum
exploitation in cooperation withChina National Petroleum Corp.(CNPC) in the designated areas
approved by the Chinese
government.In order to carry out the petroleumcontract, the foreign service suppliershall establish a branch, subsidiaryor representative office within the
territory of the People's Republic of
China and go through registrationformalities in accordance with thelaws.  The domiciles of the saidoffices shall be determined throughconsultation with CNPC.
The foreign service supplier shall
open its bank account with a bankapproved by the Chinese authoritiesto engage in foreign exchangebusiness within the Chinese
territory.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) The foreign service supplier shall
furnish CNPC accurately andpromptly with the reports on thepetroleum operations, and shall
submit to CNPC the data and
samples as well as varioustechnological, economic, accountingand administrative reports related topetroleum operations.CNPC shall have the ownership of
all of the data records, samples,
vouchers and other originalinformation acquired during theimplementation of the petroleumoperations.  The investment offoreign 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.GATS/SC/135
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(q) Packaging services
(CPC 876)(1) None
(2) None(3) Foreign service suppliers will be
permitted to establish joint venturein China.Within one year after China's
accession, foreign majority
ownership will be permitted.Within three years after China'saccession, foreign service supplierswill be permitted to establish whollyforeign-owned subsidiaries.
(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.
(t) Translation and interpretation
services (CPC 87905)(1) None
(2) None
(3) Only in the form of joint ventures,
with foreign majority ownershippermitted
(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).GATS/SC/135
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- Maintenance and repair services
(CPC 63, 6112 and 6122)
- Maintenance and repair services of
office machinery and equipmentincluding computers(CPC 845 and 886)
- Rental and leasing services
(CPC 831, 832, excludingCPC 83202)(1) None
(2) None(3) Only in the form of joint ventures.
Within one year after China'saccession, foreign majorityownership will be permitted.
Within three years after China's
accession, wholly foreign-ownedsubsidiaries will be permitted.For Rental and Leasing services,service suppliers will have globalassets 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.
2. COMMUNICATION SERVICES
B. Courier Services
(CPC 75121, 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 toestablish joint ventures with foreigninvestment not exceeding 49 percent.Within one year after China's
accession, foreign majority
ownership will be permitted.Within four years after China'saccession, foreign service supplierswill be permitted to establish whollyforeign-owned subsidiaries
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None
(3) None
(4) Unbound, except as indicated in
horizontal commitments.GATS/SC/135
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C. Telecommunication Services3
Value-added Services
Including the following:(1) See mode 3
(2) None(3) Foreign service suppliers will be(1) None
(2) None(3) NoneChina undertakes the obligations
contained in the Reference Paper inAnnex I  attached hereto.
(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, storeand retrieve)permitted to establish joint venture
value-added telecommunicationenterprises, without quantitativerestrictions, and provide services inthe cities of Shanghai, Guangzhou
and Beijing. Foreign investment in
joint venture shall be no more than30 per cent.   
(m) Code and protocol conversion
(n) On-line information and/or data
processing (including transactionprocessing)Within one year after China's
accession, the areas will be
expanded to include Chengdu,Chongqing, Dalian, Fuzhou,Hangzhou, Nanjing, Ningbo,
Qingdao, Shenyang, Shenzhen,Xiamen, Xi'an, Taiyuan and Wuhan
and foreign investment shall be no
more than 49 per cent.
Within two years after China'saccession, there will be nogeographic restriction and foreigninvestment shall be no more than
50 per cent.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
                                                     
3 China's commitments are scheduled in accordance 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.
All international telecommunications services shall go through ga teways established with the approval of China's telecommunicat ions authorities, which will act as an independent
regulatory authority in accordance with the principles of paragraph 5 of the Reference Paper.
Further liberalization of this sector, incl uding with respect to the level of equity  participation permitted, will be discussed  in the services negotiations during the new round of trade talks.GATS/SC/135
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Basic Telecommunication
Services- Paging Services(1) See mode 3
(2) None(3) Foreign service suppliers will be
permitted to establish joint ventureenterprises, without quantitativerestrictions, and provide services in
and between the cities of Shanghai,
Guangzhou and Beijing. Foreigninvestment in joint venture shall beno more than 30 per cent.   Within one year after China'saccession, the areas will be
expanded to include services in and
between Chengdu, Chongqing,Dalian, Fuzhou, Hangzhou,Nanjing, Ningbo, Qingdao,Shenyang, Shenzhen, Xiamen,Xi'an, Taiyuan and Wuhan and
foreign investment shall be no more
than 49 per cent.Within two years after China'saccession, there will be nogeographic restriction and foreign
investment shall be no more than 50
per cent.
(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 inAnnex 1 attached hereto.GATS/SC/135
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Mobile Voice and Data Services:
- Analogue / Digital / Cellular
Services
- Personal Communication Services(1) See mode 3
(2) None(3) Upon China's accession, foreign
service suppliers will be permittedto establish joint venture enterprises,without quantitative restrictions, and
provide services in and between the
cities of Shanghai, Guangzhou andBeijing. Foreign investment in thejoint venture shall be no more than25 per cent.   Within one 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, Xi'an, Taiyuan and Wuhan
and foreign investment shall be no
more than 35 per cent.Within three years after accession,foreign investment shall be no morethan 49 per cent.
Within five years after accession,
there will be no geographicrestriction.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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- 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 ofprivate leased circuit service ispermitted)(1) See mode 3
(2) None(3) Within three years after China's
accession, foreign service supplierswill be permitted to establish jointventure enterprises, without
quantitative restrictions, and provide
services in and between the cities ofShanghai, Guangzhou and Beijing.Foreign investment in the jointventure shall be no more than 25 percent.
Within five years after accession,
the areas will be expanded toinclude services in and betweenChengdu, Chongqing, Dalian,Fuzhou, Hangzhou, Nanjing,Ningbo, Qingdao, Shenyang,
Shenzhen, Xiamen, Xi'an, Taiyuan
and Wuhan. And foreign investmentshall be no more than 35 per cent.Within six years after accession,there will be no geographic
restriction and foreign investment
shall be no more than 49 per cent.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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D. Audiovisual Services
- Videos, including entertainment
software and(CPC 83202), distribution services
- Sound recording distribution
services(1) None
(2) None(3) Upon accession, foreign services
suppliers will be permitted toestablish contractual joint ventureswith Chinese partners to engage in
the distribution of audiovisual
products, excluding motion pictures,without prejudice to China's right toexamine the content of audio andvideo products (see footnote 1).
(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 administrationof films, upon accession, China will allowthe importation of motion pictures fortheatrical release on a revenue-sharingbasis and the number of such imports
shall be 20 on an annual basis.
- Cinema Theatre Services (1) None
(2) None(3) Upon accession, foreign services
suppliers will be permitted toconstruct and/or renovate cinema
theatres, with foreign investment no
more than 49 per cent.
(4) Unbound, except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
3. CONSTRUCTION AND
RELATED ENGINEERINGSERVICES
(CPC 511, 512, 5134, 514, 515,
516, 517, 5185)(1) Unbound*
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
Within three years after China's
accession to the WTO, whollyforeign-owned enterprises will bepermitted. Wholly foreign-ownedenterprises can only undertake the
following four types of construction
projects.(1) Unbound*
(2) None(3) None except for the following:
(a) The existing registered capital
requirements for joint venture
construction enterprises are slightlydifferent from those of the domesticenterprises.(b) Joint venture construction
enterprises have the obligation to
undertake foreign-invested constructionprojects.
1. Construction projects whollyfinanced by foreign investmentand/or grants.
2. Construction projects financed
by loans of international financialinstitutions and awarded throughinternational tend ering according to
the terms of loans.Within three years after China's accession
to the WTO, none.
3. Chinese-foreign jointly
constructed projects with foreign
investment equal to or more than 50per cent; and Chinese-foreign jointlyconstructed projects with foreigninvestment less than 50 per cent but
technically difficult to be
implemented by Chineseconstruction enterprises alone.
                                                     
4 Including dredging services rela ting to infrastructure construction.
5 Coverage of CPC 518 is limited only to the rental and leasin g services of construction and/or demolition machines with operato r which are owned and used by foreign construction
enterprises in their supply of services.
* Unbound due to lack of technical feasibility.GATS/SC/135
Page 23Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
4. Chinese invested construction
projects which are difficult to beimplemented by Chineseconstruction enterprises alone canbe jointly undertaken by Chineseand 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.
4. DISTRIBUTION SERVICES
(as defined in Annex 2)
A. Commission Agents’ Services
(excluding salt, tobacco)
B. Wholesale Trade Services6
(excluding salt, tobacco)(1) Unbound
(2) None(3) Within one year after China's
accession to the WTO, foreignservice suppliers may establish jointventures to engage in the
commission agents' business and
wholesale business of all importedand domestically produced products,(1) Unbound
(2) None(3) NoneForeign-invested enterprises are
permitted to distribute their productsmanufactured in China, including theproducts listed in the market access orsector or sub-sector column, and providesubordinate services as defined in
Annex 2.
except those products that
immediately follow. For theseproducts, foreign service suppliers
will be permitted to engage in the
distribution of books, newspapers,magazines, pharmaceuticalproducts, pesticides and mulchingfilms within three years after
China's accession, and to engage in
the distribution of chemicalfertilizers, processed oil and crudeoil within five years after China'saccession.Foreign service suppliers are permitted to
provide the full range of relatedsubordinate services, including after sales
services, as defined in Annex 2, for the
products they distribute.
                                                     
6 The restrictions on mode 1 shall not undermine the rights of WT O Members to the right to trade as stipulated in Chapter 5 of C hina's Protocol of accession to the WTO.GATS/SC/135
Page 24Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Within two years after China's
accession to the WTO, foreignmajority ownership will bepermitted and no geographic orquantitative restrictions will apply.
None, within three years afteraccession, except for chemicalfertilizers, processed oil and crude
oil within five years after accession.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
C. Retailing Services (excluding
tobacco).(1) Unbound except for mail order.
(2) None
(3) Foreign service suppliers may
supply services only in forms ofjoint ventures in five SpecialEconomic Zones (Shenzhen,Zhuhai, Shantou, Xiamen and
Hainan) and six cities (Beijing,
Shanghai, Tianjin, Guangzhou,Dalian and Qingdao). In Beijing andShanghai, a total of no more thanfour joint venture retailingenterprises are permitted
respectively. In each of the other
cities, no more than two jointventure retailing enterprises will bepermitted. Two joint ventureretailing enterprises among the four
to be established in Beijing may set
up their branches in the same city(i.e. Beijing).(1) Unbound except for mail order.
(2) None
(3) NoneForeign-invested enterprises may
distribute their products manufactured in
China, including those excepted productsas listed in the market access or sector orsub-sector column, and providesubordinate services as defined inAnnex 2.
Foreign service suppliers are permitted to
provide full range of related subordinateservices, including after sales services, asdefined in Annex 2, for the products theydistribute.GATS/SC/135
Page 25Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Upon China's accession to the
WTO, Zhengzhou and Wuhan willbe immediately open to jointventure retailing enterprises. Withintwo years after China's accession tothe WTO, foreign majority control
will be permitted in joint venture
retailing enterprises and allprovincial capitals, Chongqing andNingbo will be open to joint ventureretailing enterprises.
Foreign service suppliers will be
permitted to engage in the retailing
of all products, except for theretailing of books, newspapers andmagazines within one year afteraccession, the retailing ofpharmaceutical products, pesticides,
mulching films and processed oil
within three years after accession
and retailing of chemical fertilizerswithin five years after accession.
None, within three years after
accession, except for:.
- retailing of  chemical fertilizers,
within five years after accession;and- those chain stores which sellproducts of different types and
brands from multiple suppliers with
more than 30 outlets. For suchchains stores with more than 30outlets, foreign majority ownershipwill not be permitted if those chainstores distribute any of theGATS/SC/135
Page 26Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
following products: motor vehicles
(for a period of five years afteraccession at which time the equitylimitation will have beeneliminated), and products listedabove and in Annex 2a of the
Protocol of China's WTO
Accession. The foreign chain storeoperators will have the freedom ofchoice of any partner, legallyestablished in China according toChina's laws and regulations.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
D. Franchising (1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.
E. Wholesale or retail trade services
away from a fixed location.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none
7.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) Within three years after China's
accession to the WTO, none.
(4) Unbound except as indicated in
horizontal commitments.
                                                     
7 See paragraph 309 of the Working Party Report.GATS/SC/135
Page 27Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
5. EDUCATIONAL SERVICES
(Excluding special education
services e.g. military, police,political and party school education)
A. Primary education services
(CPC 921, excluding national
compulsory education in CPC
92190)
B. Secondary education services(1) Unbound
(2) None
(3) Joint schools will be established,
with foreign majority ownershippermitted.(1) Unbound
(2) None
(3) Unbound
(CPC 922, excluding national
compulsory education in CPC
92210)(4) Unbound except as indicated in
horizontal commitments and the
following:(4) Qualifications are as follows:
-  possession of Bachelor's degree or
above;
C. Higher education services
(CPC 923)
D. Adult education services
(CPC 924)
E. Other education services
(CPC 929, including English
language training)foreign individual education service
suppliers may enter into China toprovide education services wheninvited or employed by Chineseschools and other education
institutions.- and an appropriate professional title
or certificate, with two years’professional experiences.
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)(1) Unbound except for environmental
consultation services.
(2) None
(3) Foreign services suppliers engaged
in environmental services arepermitted to provide services only inthe form of joint ventures, withforeign 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.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
E. Nature and Landscape Protection
Services(CPC 9406)
F. Other Environmental Protection
Services(CPC 9409)
G. Sanitation Services
(CPC 9403)
7. FINANCIAL SERVICES
A. All Insurance and Insurance-Related
Services8
(a) Life, health and 
pension/annuities insurance
(b) Non-life insurance(c) Reinsurance(d) Services auxiliary to insurance(1) Unbound except for :
(a) reinsurance;
(b) international marine, aviation, and
transport insurance; and
(c) brokerage for large scale
commercial risks,  international
marine, aviation, and transportinsurance,  and reinsurance.
(2) Unbound for brokerage. Other,
none.(1) None
(2) None
(3)
A. Form of establishment
Foreign non-life insurers will bepermitted to establish as a branch or
as a joint venture with 51 per cent
foreign ownership.Within two years after China'saccession, foreign non-life insurerswill be permitted to establish as a
wholly-owned subsidiary; i.e., with
no form of establishmentrestrictions.(3) None, except for:
- Foreign insurance institutionsshall not engage in the statutoryinsurance business.
- Upon accession, a 20 per cent
cession of all lines of the primaryrisks for non-life, personal accidentand health insurance business withan appointed Chinese Reinsurance
Company shall be required; one
year after accession, 15 per cent
                                                     
8 Any further authorization provided to foreign insurers after accession under more favorable c onditions than those contained in this schedule (including the extension of grandfathered
investments through branching, sub-branching or any other legal form), will be made available to other foreign service supplier s which so requested.GATS/SC/135
Page 29Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Upon accession, foreign life insurers
will be permitted 50 per cent foreignownership in a joint venture with thepartner of their choice.shall be required; two years after
accession, ten per cent shall berequired; and three years afteraccession, five per cent shall berequired; and four years afteraccession, no compulsory cession
shall be required.
The joint venture partners can freelyagree the terms of their engagement,
provided they remain within thelimits of the commitments containedin this schedule.
For brokerage for insurance of large
scale commercial risks and
brokerage for reinsurance andbrokerage for international marine,
aviation, and transport insuranceand reinsurance: upon accession,joint venture with foreign equity no
more than 50 per cent will be
permitted; within three years afterChina's accession, foreign equityshare shall    be increased to 51 percent; within five years after China'saccession, wholly foreign owned
subsidiary will be permitted.  For
other brokerage services: Unbound.Internal branching for an insurancefirm will be permitted consistentwith the phase out of geographic
restrictions.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Geographic Coverage
Upon accession, foreign life and
non-life insurers, and insurancebrokers will be permitted to provideservices in Shanghai, Guangzhou,Dalian, Shenzhen and Foshan.
Within two years after China's
accession, foreign life and non-lifeinsurers, and insurance brokers willbe permitted to provide services inthe following cities: Beijing,Chengdu, Chongqing, Fuzhou,
Suzhou, Xiamen, Ningbo,
Shenyang, Wuhan and Tianjin.Within three years after China'saccession, there will be nogeographic restrictions.
C. Business Scope
Upon accession, foreign non-lifeinsurers will be permitted to provide"master policy" insurance/insuranceof large scale commercial risks,which has no geographicrestrictions. In accordance with
national treatment, foreign insurance
brokers will be permitted to provide"Master policy" no later thanChinese brokers, under conditionsno less favourable.GATS/SC/135
Page 31Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
Foreign non-life insurers are
permitted to provide insurance ofenterprises abroad as well asproperty insurance, related liabilityinsurance and credit insurance offoreign-invested enterprises in
China upon accession. Within 2
years after China's accession,foreign non-life insurers will bepermitted to provide the full rangeof non-life insurance services toboth foreign and domestic
clients.
Foreign insurers are permitted to
provide individual (not group)insurance to foreigners and Chinesecitizens; within three years afteraccession, foreign insurers will bepermitted to provide health
insurance, group insurance and
pension/annuities insurance toforeigners and Chinese.
Upon accession, foreign insurerswill be permitted to provide
reinsurance services for life and
non-life insurance as a branch, jointventure, or wholly foreign-ownedsubsidiary, without geographic orquantitative restrictions on the
number of licenses issued.GATS/SC/135
Page 32Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
D. Licenses
Upon accession, licenses will be
issued with no economic needs testor quantitative limits on licenses.
Qualifications for establishing a
foreign insurance institution are asfollows:
-  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 $5 billion at the end of the
year prior to application, except for
insurance brokers.
Insurance brokers shall have totalassets of more than US$ 500million. Within one year afteraccession, they shall have totalassets of more than US$ 400
million. Within two years after
accession, they shall have totalassets of more than US$ 300 millionWithin four years after accession,they shall have total assets of morethan US$ 200 million.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional 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 ofcommercial transaction;
(c) Financial leasing;(1) Unbound except for the following:
- Provision and transfer of financial
information, and financial dataprocessing and related software bysuppliers of other financial services;
- Advisory, intermediation and other
auxiliary financial services on all
activities listed in subparagraphs (a)through (k), including creditreference and analysis, investmentand portfolio research and advice,advice on acquisitions and on
corporate restructuring and strategy.
(2) None(1) None
(2) NoneFor financial leasing services, foreign
financial leasing corporations will bepermitted to provide financial leasingservice at the same time as domesticcorporations.
(d) All payment and money
transmission services, includingcredit, charge and debit cards,travellers cheques and bankersdrafts(including import and export
settlement);
(e) Guarantees and commitments;(f) Trading for own account or for
account of customers: foreignexchange.(3)
A. Geographic coverage
For foreign currency business, therewill be no geographic restrictionupon accession. For local currency
business, the geographic restriction
will be phased out as follows: Uponaccession, Shanghai, Shenzhen,Tianjin and Dalian; Within one yearafter accession, Guangzhou, Zhuhai,Qingdao, Nanjing and Wuhan;
within two years after accession,
Jinan, Fuzhou, Chengdu andChongqing; within three years afteraccession, Kunming, Beijing andXiamen; Within four years after
accession, Shantou, Ningbo,
Shenyang and Xi'an. Within fiveyears after accession, all geographicrestrictions will be removed.(3) Except for geographic restrictions
and client limitations on localcurrency business (listed in themarket access column), foreignfinancial institution may do
business, without restrictions or
need for case-by-case approval, withforeign invested enterprises, non-Chinese natural persons, Chinesenatural persons and Chineseenterprises.  Otherwise, none.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Clients
For foreign currency business,
foreign financial institutions will bepermitted to provide services inChina without restriction as toclients upon accession.
For local currency business, within
two years after accession, foreignfinancial institutions will bepermitted to provide services toChinese enterprises. Within fiveyears after accession, foreign
financial institutions will be
permitted to provide services to allChinese clients. Foreign financialinstitutions licensed for localcurrency business in one region ofChina may service clients in any
other region that has been opened
for such business.
C. Licensing
Criteria for authorization to deal inChina's financial services sector aresolely prudential (i.e., contain no
economic needs test or quantitative
limits on licenses). Within five yearsafter accession, any existing non-prudential measures restrictingownership, operation, and juridical
form of foreign financial
institutions, including on internalbranching and licenses, shall beeliminated.
Foreign financial institutions who
meet the following condition are
permitted to establish a subsidiaryof a foreign bank or a foreignfinance company in China:GATS/SC/135
Page 35Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- total assets of more than US $10
billion at the end of the year prior tofiling the application.
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 tofiling 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 inChina:
- total assets of more than US $10
billion at the end of the year prior tofiling the application.
Qualifications for foreign financial
institutions to engage in local
currency business are as follows:
- three years business operation in
China and being profitable for twoconsecutive years prior to the
application, otherwise, none.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Motor vehicle financing by non-
bank financial institutions(1) Unbound except for the following:
- Provision and transfer of financial
information, and financial dataprocessing and related software bysuppliers of other financial services;
- Advisory, intermediation and other
auxiliary financial services on all
activities listed in subparagraphs (a)through (k), including creditreference and analysis, investmentand 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.(1) Unbound
(2) None
(3) None(4) Unbound except as indicated in
horizontal commitments.
- Other financial services as listed
below:
(k) Provision and transfer of financial
information, and financial dataprocessing and related software bysupplier of other financial services;
(l) Advisory, intermediation and other
auxiliary financial services on all
activities listed in subparagraphs (a)through (k), including creditreference and analysis, investmentand 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 servicessector are solely prudential (i.e.,contain no economic needs test orquantitative 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.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Securities (1) Unbound except for the following:
- Foreign securities institutions may
engage directly  (without Chineseintermediary) in B share business.
(2) None(3)
(a) Unbound, except for the following:
- Upon accession, representative
offices in China of foreign securitiesinstitutions may become SpecialMembers of all Chinese stockexchanges.
- Upon accession, foreign service
suppliers will be permitted toestablish joint ventures with foreigninvestment up to 33 per cent toconduct domestic securitiesinvestment fund management
business. Within three years after
China's accession, foreigninvestment shall be increased to 49per cent. Within three years afteraccession, foreign securities
institutions will be permitted to
establish joint ventures, with foreignminority ownership not exceeding1/3, to engage (without Chineseintermediary) in underwriting Ashares and in underwriting and
trading of B and H shares as well as
government and corporate debts,launching of funds.
(b). Criteria for authorization to deal in
China's financial industry are solelyprudential (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.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional 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 hoteland restaurant establishments in
China in the form of joint ventures
with foreign majority ownershippermitted.
 None, within four years after
accession, wholly foreign-owned
subsidiaries will be permitted.(1) None
(2) None(3) None
(4) Unbound, except as indicated in
horizontal commitments and asfollows:
- Foreign managers, specialists
including chefs and senior
executives who have signedcontracts with joint venture hotelsand restaurants in China shall bepermitted to provide services inChina.(4) Unbound, except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Travel Agency and Tour Operator
(CPC 7471)(1) None
(2) None(3) Foreign services suppliers who meet
the following conditions arepermitted to provide services in theform of joint venture travel agencies
and tour operators in the holiday
resorts designated by the Chinesegovernment and in the cities ofBeijing, Shanghai, Guangzhou andXi'an upon accession:
(a) a travel agency and tour operator
mainly engaged in travel business;
(b) Annual world-wide turnover
exceeds US$ 40 million.(1) None
(2) None(3) None except that joint ventures or
wholly-owned travel agencies andtour operators are not permitted toengage in the activities of Chinese
travelling abroad and to Hong Kong
China, Macao China and ChineseTaipei.
The registered capital of jointventure travel agency/tour operatorshall be no less than RMB 4 million.
Within three years after China's
accession, the registered capital shallbe no less than RMB 2.5 million.Within three years after accessionforeign majority ownership will bepermitted.
within six years after accession,
wholly foreign-owned subsidiarieswill be permitted and geographicrestrictions will be removed.  The
business scope of the travel agency/
tour operator is as follows:
(a) travel and hotel accommodation
services for foreign travellers whichcan be made directly with
transportation and hotel operators in
China covering such operations;GATS/SC/135
Page 40Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) travel services and hotel
accommodation services fordomestic travellers which can bemade directly with transportationand hotel operators in Chinacovering such operations;
(c) conducting of tours within China for
both domestic and foreign travellers,and
(d) travellers check cashing services
within China.
None within six years after
accession, there will be norestriction on the establishment ofbranches of the joint venture travelagency/tour operator and therequirement on registered capital of
foreign-invested travel agency/tour
operator will be the same as that of
(4) Unbound, except as indicated in 
 horizontal commitments.(4) Unbound, except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
11. TRANSPORT SERVICES
A. Maritime Transport Services
- International transport (freight and
passengers)(CPC 7211 and 7212 less cabotagetransport services)(1)
(a) Liner shipping (including passenger
transportation): None(b) Bulk, tramp and otherinternational shipping (includingpassenger transportation):  None
(2) None
(3)(a) Establishment of registered
companies for the purpose ofoperating a fleet under the nationalflag of the People's Republic of
China:
- Foreign service suppliers are
permitted to establish joint ventureshipping 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 jointventure shall be appointed by theChinese side.
(b) Other forms of commercial presence
for the supply of international
maritime transport services:Unbound(1)
(a) None
(b) None
(2) None
(3)(a) None
(b) UnboundThe following services at the port are
made available to international maritimetransport suppliers on reasonable andnon-discriminatory terms and conditions:
1. Pilotage
2. Towing and tug assistance3. Provisioning, fuelling and watering4. Garbage collecting and ballast waste
disposal
5. Port Captain's services
6. Navigation aids
7. Shore-based operational services
essential to ship operations,including communications, waterand electrical supplies
8. Emergency repair facilities
9. Anchorage, berth and berthing
services.
(4)(a) Ship's crew: Unbound except
as indicated in  horizontal
commitments.
(b) Key personnel employed by
Commercial Presence as definedunder mode (3) (b) above: Unboundexcept as indicated in  horizontalcommitments.(4)(a) Unbound except as indicated in
horizontal commitments.
(b) Unbound except as indicated in
horizontal commitments.GATS/SC/135
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Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
H. Auxiliary Services
(a) Maritime cargo-handling services
(CPC 741)
(c) Customs clearance services for
maritime transport(1) Unbound*
(2) None(3) Only in the form of joint ventures,
with foreign majority ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(d) Container station and depot services (1) Unbound*
(2) None(3) Only in forms of joint ventures, with
foreign majority ownershippermitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
(e) Maritime agency services (1) None
(2) None(3) Only in forms of joint ventures, with
foreign equity share no more than
49 per cent.
(4) Unbound except as indicated in
horizontal commitments.(1) None
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitments.
                                                     
* Unbound due to lack of technical feasibility.GATS/SC/135
Page 43Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
B. Internal Waterways Transport
(b) Freight transport
(CPC 7222)(1) Only international shipping in ports
open to foreign vessels shall bepermitted.
(2) None(3) Unbound(4) Unbound except as indicated in
horizontal commitments.(1) Limitations as indicated under
market access column.
(2) None
(3) Unbound(4) Unbound except as indicated in
horizontal commitments
C. Air Transport Services
(d) Aircraft repair and maintenance
services(CPC 8868)(1) Unbound*
(2) None(3) Foreign service suppliers are
permitted to establish joint ventureaircraft repair and maintenance
enterprises in China.  The Chinese
side shall hold controlling shares orbe in a dominant position in thejoint ventures.  Licenses for theestablishments of joint ventures aresubject to economic needs test.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound*
(2) None(3) The joint ventures have the
obligation to undertake business inthe international market.
(4) Unbound except as indicated in
horizontal commitments.
- Computer Reservation System
(CRS) services(1)(a) Foreign Computer Reservation
System, when having agreementswith Chinese aviation enterprises
and Chinese Computer Reservation
System, may provide services toChinese aviation enterprises andChinese aviation agents byconnecting with Chinese Computer
Reservation System.(1) None
                                                     
* Unbound due to lack of technical feasibility.GATS/SC/135
Page 44Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
(b) Foreign Computer Reservation
System may provide services torepresentative offices and salesoffices established in the destinationcities in China by foreign aviationenterprises 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 byChinese aviation enterprises andagents of foreign aviation
enterprises are subject to approval
of the General Administration ofCivil Aviation of China (CAAC).
(2) None(3) Unbound(4) Unbound except as indicated in
horizontal commitments(2) None
(3) Unbound(4) Unbound except as indicated in
horizontal commitments.
E. Rail Transport Services
F. Road Transport Services
- Freight transportation by rail
(CPC 7112)
- Freight transportation by road in
trucks or cars(CPC 7123)(1) None
(2) None(3) Only in the form of joint ventures,
with foreign investment not to
exceed 49 per cent.
For rail transport, within three yearsafter China's accession, foreignmajority ownership will bepermitted and within six years afterChina's accession, wholly foreign-
owned subsidiaries will be
permitted.(1) None
(2) None(3) NoneGATS/SC/135
Page 45Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
For road transport, within one year
after China's accession, foreignmajority ownership will bepermitted, within three years afterChina's accession, wholly foreign-owned subsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.
H. Services Auxiliary to all Modes of
Transport
- Storage and warehousing services
(CPC 742)(1) Unbound
(2) None(3) Upon accession, only in the form of
joint ventures, with foreign
investment not to exceed 49 per cent.Within one year after China'saccession, foreign majorityownership will be permitted.
None  within three years of China's
accession, wholly foreign-ownedsubsidiaries will be permitted.
(4) Unbound except as indicated in
horizontal commitments.(1) Unbound
(2) None(3) None
(4) Unbound except as indicated in
horizontal commitmentsGATS/SC/135
Page 46Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
- Freight forwarding agency services
(CPC 748 and 749 excluding freightinspection)(1) None
(2) None(3) Upon accession, foreign freight
forwarding agencies which have atleast three consecutive yearsexperience are permitted to set up
freight forwarding agency joint
ventures in China, with foreigninvestment not to exceed 50 per cent;within one year after China'saccession, foreign majorityownership will be permitted.
Within four years after China's
accession, wholly foreign-ownedsubsidiaries will bepermitted.The minimum registered capital ofthe joint venture shall be no less than
US$ 1 million. Within four years
after accession, national treatmentwill be accorded in this respect.Operation term of the jointventures shall not exceed
20 years.
After one year operating in China,the joint venture can set up brancheswhen the registered capital of bothsides has been provided. AnotherUS$ 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'saccession to the WTO, thisadditional registered capitalrequirement will be implemented on
the national treatment basis.(1) None
(2) None(3) NoneGATS/SC/135
Page 47Modes of supply:  (1)  Cross-border supply (2)  Consumption abroad   (3)  Commercial presence   (4) Presence of natural persons
Sector or sub-sector Limitations on market access Limitation on national treatment Additional commitments
A foreign freight forwarding agency
may set up a second joint ventureafter its first joint venture has been inoperation for five years. Within twoyears after China's accession toWTO, this requirement will be
reduced to two years.
(4) Unbound except as indicated in
horizontal commitments.(4) Unbound except as indicated in
horizontal commitments.GATS/SC/135
Page 48
ANNEX 1
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 technically substituted in order to provide a
service.
A major supplier is a supplier which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant 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 competitors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information which
are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of anothersupplier and  to access services provided by another supplier, where specific commitments are
undertaken.GATS/SC/135
Page 49
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (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 are transparent, reasonable, having regard
to economic feasibility, and sufficiently unbundled so that the supplier need not payfor 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 procedures for interconnection negotiations
The procedures applicable for interconnection 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 terms, conditions and rates for interconnection within
a reasonable period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind 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-discriminatory and competitively neutral manner and are not moreburdensome 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.GATS/SC/135
Page 50
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 beimpartial 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 objective, timely, transparent and non-discriminatory
manner. The current state of allocated frequency bands will be made publicly available, but detailedidentification of frequencies allocated for specific government uses is not required.GATS/SC/135
Page 51
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 schedul ing of commitments in basic telecoms.  The
purpose of the attached note is to assist delegati ons 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 bind ing 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 international services for public and non-public
use;
(b) may be provided on a facilities-basis or by resale;  and(c) may be provided through any means of technology (e.g., cable
9, wireless, satellites).
2. Subsector (g) --private leased circuit services -- involves the ability of service suppliers to sell or
lease any type of network capacity for the supply of services listed in any other basic telecom service
subsector unless otherwise noted in the sector colum n.  This would include capacity via cable, satellite
and wireless network.
3. In view of points 1 and 2 above, it should not be necessary to list cellular 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 appropriate for Members to mainta in separate entries for these subsectors.
                                                     
     9Including all types of cable.GATS/SC/135
Page 52
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 access 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 adequa tely protect legitimate spectrum 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 needs to be listed under
Article XVI.  Furthermore under the GATS each Member has the right to exercise spectrum/frequencymanagement, which may affect the number of service suppliers, provided that this 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 future needs.  Also, Members which have made
additional commitment in line w ith the Reference Paper on regulatory principles are bound by its
paragraph 6.
Therefore, words such as "subject to availa bility of spectrum/frequency" are unnecessary and
should be deleted from Members' schedules.GATS/SC/135
Page 53
ANNEX 2
Distribution Services
Distribution trade services are comprised of four main sub-sectors:
− commission agents services;
− wholesaling;
− retailing; and
− franchising.
The principal services rendered in each subsector can be characterized as reselling
merchandise, accompanied by a variety of related subordinated 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; sales
promotion, marketing and advertising, installation an d after sales services 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 fee 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/merch andise to retailers to industrial, commercial,
institutional, or other professional business users, or to other wholesalers 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 andrelated subordinated services.
Franchising services consist of the sale of the use 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 franchising involves the use of an entire business
concept in exchange for fees and royalties, and may include the use of a trade name, business plan,and training materials and related subordinated services.GATS/SC/135
Page 54
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.
Master policy business with the state key construction 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 followingrequirements, they may purchase master policy from insurers that are located in the same place as the
investors' legal persons do.
The investment on the subject-matter insured is all from China (including the reinvestment
from the foreign-invested enterprises in China), a nd the sum of investment of the investor accounts
for over 15 per cent of the total investment.
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 per cent for the total domestic investment.
For those projects that draw investment all from abroad, every insurer may provide coverage
in the form of master policies.
Master policy covering different subjects-matter insured of the same legal person.  For those
subjects-matter insured located in different places and owned by the same legal person (excluding
financial, railway, and post and telecommunications industries and enterprises), master policy may be
issued on the basis of either of the following conditions.
For the sake of payment of premium tax, insurance companies incorporated where the legal
person or accounting unit of the insurance applicant is located are allowed to issue master policy.
If over 50 per cent 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 liabilities insurance, statutory 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 located, or covered under a master policy.
__________