RESTRICTEDWORLD TRADE
ORGANIZATIONS/FIN/W/21/Add.1
14 October 2002
(02-5540)
Committee on Trade in Financial Services Original:  English
COMMUNICATION FROM JAPAN
Transitional Review Mechanism in connection with Paragraph 18
of the Protocol on the Accession of the People’s Republic of China (“China”)
Japan’s Comments on Trade in Financial Services
Addendum
The attached communication has been received from the delegation of Japan with the request
that it be distributed to Members of the Committee on Trade in Financial Services as an addition to
the document S/FIN/W/21.
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I. BANKING
Licensing Measures
Japan notes that, paragraph 308 of the Report of the Working Party on the Accession of China
(WT/ACC/CHN/49) provides that "upon accessi on China would ensure that China's licensing
procedures and conditions would not act as barriers to market access and would not be more traderestrictive than necessary" and further that "if an application was terminated or denied, the applicant
would have the possibility of resubmitting, at its discretion, a new application that addressed the
reasons for termination or denial.”  However, Article 20 of the Implementing Rules of the Regulation
on Administration of Foreign Financial Institutions, published as of 29 January 2002, stipulates that if
the applicant (foreign financial institution) receives  refusal of an application to establish commercial
presence in one city, it is not allowed for one year to submit a new application to establish commercial
presence in the same city.  This restriction under Article 20 of the Implementing Rules obviously
contradicts China's commitments under paragraph 308, and constitutes serious barriers to market
access.  Japan requests Chinese authorities to clarify the administrative objectives of this restriction
and present their views on its consistency with China's commitments (especially paragraph 308).
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