RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
31 July 2001 
 (01-3807) 
Working Party on the  
Accession of China  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF CHINA 
 
Draft Schedule – China  
 
Part II – Draft Schedule of Sp ecific Commitments on Services  
 
Addendum  
 
 
 In accordance with WTO accession procedures, th e Draft Schedule of Specific Commitments on 
Services of China is attached for examination and t echnical verification by Members of the Working Party and 
China.  For the facility of Members, the document has be en forwarded, where possible, through electronic mail. 
  Proposals for technical corrections, if any, should be sent to Mr. Peter Milthorp
1 in the WTO 
Secretariat by 10 August 2001 at the latest for transmission to China and Members of the Working Party.  
_______________ 
 
                                                      
1 Room 1132, telephone 739 5016,  e-mail peter.milthorp@wto.org.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 2 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 commitment 
I. HORIZONTAL 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.
2 
 
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 branch es by foreign enterprises 
is unbound, unless otherwis e 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 sector al specific commitments. (3) Unbound for all the existing subsidies to 
domestic services suppliers in the sectors of audio-visual, aviation and medical services. 
  
 
                                                      
2 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 joi nt venture 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/1/Rev.8/Add.2
 Page 3Modes 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 commitment 
 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 purpose 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.    
 (4)   Unbound except fo r measures concerning the 
entry and temporary stay of natural persons who fall into one of the following categories: (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.  
 (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 three years;     WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 4 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 commitment 
 (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  three 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.   
   WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 5Modes 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 commitment 
A. Professional Services 
 (a) Legal Services  (CPC 861) Business scope of foreign representative offices is 
only as follows: 
 
(a)   to provide 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 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 practiced 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 practiced 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/1/Rev.8/Add.2 
Page 6 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 commitment 
b.  Accounting,  auditing 
 and  bookkeeping  services   (CPC 862)   (1) None 
(2) None (3) Partnerships or incorporated accounting firms 
are limited to Certifie d Public Accountants 
(CPAs) licensed by the Chinese authorities. 
(4) Unbound except as i ndicted in Horizontal 
Commitments. (1) None 
(2) None (3) None 
 
 (4) Unbound except as i ndicted 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.  Accounting firms providing services in CPC 862 can engage in taxation and management consulting services. They will not be subject to requirements on form of establishment 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 ownership permitted.  None, 
within six years of Ch ina'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.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 7Modes 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 commitment 
 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 five 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 supplie rs shall be registered 
architects/engineers, or enterprises engaged in 
architectural/engineering/urban planning services, in their home country 
 
(4)  Unbound, except as indicated in Horizontal 
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 i ndicated 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 joint venture 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) Qualifications are as follows: certified 
engineers, or personnel with Bachelor's degree 
(or above) and three years of experience in 
these fields.   WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 8 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 commitment 
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 i ndicated 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 y ears 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) None 
(2) None 
(3) None  
(4) Qualifications are as follows: certified 
engineers, or personnel with Bachelor's degree (or above) and three y ears of experience in 
these fields.  
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 i ndicated 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 y ears of experience in 
these fields.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 9Modes 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 commitment 
-   Data processing and 
 tabulation services  (CPC 8432) - Time-sharing services  (CPC 8433) (1) None 
(2) None (3) None 
(4) Unbound except as i ndicated 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 y ears of experience in 
these 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 enterprises  
 are not permitted for high standard real estate 
projects
1, such as apartments and office 
buildings, but excluding luxury hotels. 
(4) Unbound except as i ndicated in Horizontal 
Commitments. (1) None 
(2) None (3) None 
 
  
 
(4) Unbound except as i ndicated in Horizontal 
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 i ndicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) None  
(4) Unbound except as in dicated in  Horizontal 
Commitments.  
                                                      
1 High standard real estate proj ects refer to the real estate projects with cons truction costs per unit two times more than the average construction costs per unit in the 
same city.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 10 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 commitment 
F. Other Business Services 
 a. Advertising Services   (CPC 871)  (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 per cent. Within 
two years after China's accession, foreign 
majority ownership will be permitted and 
within four 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.  
 
 c. Management Consulting  
 services  (CPC 865) (1) None 
(2) None 
(3) Only in the form of joint ventures, with 
foreign majority ownership permitted. 
 None, within six year s 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 i ndicated in Horizontal 
Commitments.  
e. Technical testing and 
 analysis services  (CPC 8676)  and freight inspection  covered by  (CPC 749),  excluding statutory  inspection services for  freight inspection  services (1) None 
(2) None (3) Foreign services suppliers which have been 
engaged in inspection services in their home 
countries for more th an three years are 
permitted to establish joint venture technical 
testing, analysis and freight inspection companies with no less than US$ 350,000 in 
registered capital. Within two years after 
China's accession, foreign majority ownership will be permitted and within four 
years after China's acce ssion, wholly foreign-
owned subsidiaries will be permitted.  
(4) Unbound except as i ndicated in Horizontal 
Commitments (1) None 
(2) None (3) None 
 
 
 
  
 
  
 
 (4) Unbound except as i ndicated in Horizontal 
Commitments.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 11Modes 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 commitment 
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.  
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 in dicated in  Horizontal 
Commitments. (1) None 
(2) None 
(3) None  
(4) Unbound except as i ndicated 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 in dicated in  Horizontal 
Commitments. (1) None 
(2) None  
(3) None 
 (4) Unbound except as i ndicated in Horizontal 
Commitments.   WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 12 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 commitment 
 
  - 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.  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 approved by the Chinese authorities to engage in foreign 
exchange business within the Chinese 
territory. 
(4) Unbound except as i ndicated in Horizontal 
Commitments. (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.  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 i ndicated 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 i ndicated in Horizontal 
Commitments. (1) None 
(2) None (3) None 
 
(4) Unbound except as i ndicated in Horizontal 
Commitments.  
q. Packaging services 
 (CPC 876)    (1)  None 
(2)  None 
(3) Foreign service suppliers will be permitted to 
establish joint venture in China. Within one 
year after China's accession, foreign majority 
ownership will be permitted. Within three years after China's accession, foreign service 
suppliers will be permitted to establish 
wholly foreign-owned subsidiaries. 
(4) Unbound, except as in dicated in Horizontal 
Commitments (1)  None 
(2)  None 
(3)  None 
 
 
  
 
 (4) Unbound, except as in dicated in Horizontal 
Commitments.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 13Modes 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 commitment 
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 i ndicated in Horizontal 
Commitments. (1) None 
(2) None  (3) None 
 
(4) Unbound except as i ndicated 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 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).  
- 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) Only in the form of joint ventures. Within one 
year after China's accession, foreign majority 
ownership will be permitted. Within three 
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 i ndicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) None  
 
  
 
 (4) Unbound, except as i ndicated in Horizontal 
Commitments.  
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 14 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 commitment 
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 to establish joint ventures with 
foreign investment not exceeding 49 per cent. Within one year after China's accession, 
foreign majority ownership will be permitted. 
Within four years after China's accession, foreign service suppliers 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  
C. Telecommunication 
Services1,2, 3 
 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) (1) See mode 3 
(2) None 
(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 per cent.  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, Xian, Taiyuan and Wuhan and foreign investment shall be no 
more than 49 per cent.  Within two years after 
China's accession, there will be no geographic restriction and foreign investment 
shall be no more than 50 per cent. (1) None 
(2) None 
(3) None China undertakes the 
obligations contained in 
the reference paper attached hereto. 
                                                      
1 China's commitments are scheduled in acco rdance with the following: Notes for Schedu ling Basic Telecom Services Commitments ( S/GBT/W/2/REV/1) and Market 
Access Limitations on Spectrum Availability (S/GBT/W/3) attached hereto. 
2 All international telecommunications services shall go through ga teways established with the approval of China's telecommunic ations authorities, which will act as an 
independent regulatory authority in accordance with the principles of paragraph 5 of the Reference Paper. 
3 Further liberalization of this sector, including with respect to  the level of equity participation permitted, will be discuss ed in the services negotiations during the new 
round of trade talks.   WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 15Modes 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 commitment 
m. Code and protocol 
conversion 
n. On-line information 
and/or data 
processing (including 
transaction 
processing) (4) Unbound except as i ndicated in Horizontal 
Commitments. (4) Unbound except as i ndicated in Horizontal 
Commitments.  
Basic Telecommunication 
Services  
- Paging Services (1) See mode 3 
(2) None 
(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 per 
cent.  Within one 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 per cent.  Within two years after 
China's accession, there will be no 
geographic restriction and foreign investment shall be no more than 50 per cent.  
(4) Unbound except as i ndicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) None 
  
 
  
 
  
 
 
 
  
 
  
(4) Unbound except as i ndicated in Horizontal 
Commitments. China undertakes the 
obligations contained in 
Annex 1 attached hereto.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 16 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 commitment 
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 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 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, 
Xian, Taiyuan and Wuhan and foreign 
investment shall be no more than 35 per cent.  Within three years after accession, foreign 
investment shall be no more than 49 per cent.  
Within five years after accession, there will be no geographic restriction. 
(4) Unbound except as i ndicated in Horizontal 
Commitments. (1) None 
(2) None (3) None 
 
  
 
  
 
 
 
  
 
  
 
  
(4) Unbound except as i ndicated in Horizontal 
Commitments.      WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 17Modes 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 commitment 
- 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) (1) See mode 3 
(2) None (3) Within three 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 
per cent.  Within five  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 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 i ndicated in Horizontal 
Commitments. (1) None 
(2) None (3) None 
 
  
 
  
 
 
 
  
 
  
 
 (4) Unbound except as i ndicated in Horizontal 
Commitments.     WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 18 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 commitment 
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 to establish joint ventures 
with Chinese partners with foreign investment less than 49 per cent 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 i ndicated in Horizontal 
Commitments (1) None 
(2) None (3) None 
 
  
 
  
 
 
(4) Unbound, except as i ndicated 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/1/Rev.8/Add.2
 Page 19Modes 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 commitment 
- Cinema Theater 
Services (1) None 
(2) None (3) Upon accession, foreig n services suppliers 
will be permitted to construct and/or renovate 
cinema theaters, with foreign investment no more than 49 per cent. 
(4) Unbound, except as i ndicated in Horizontal 
Commitments (1) None 
(2) None (3) None 
 
  
(4) Unbound, except as i ndicated in Horizontal 
Commitments  
3.  CONSTRUCTION 
AND RELATED 
ENGINEERING 
SERVICES  
 
 (CPC 511, 512, 
5131 514, 515, 516, 
517, 5182 ) 
 (1) Unbound3   
(2) None 
(3) Only in the form of joint ventures, with 
foreign majority ownership permitted. Within three years after China's accession to the 
WTO, wholly foreign-owned enterprises will 
be permitted. Wholly foreign-owned enterprises can only undertake the following 
four 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 per cent; and Chinese-foreign jointly 
constructed projects with foreign investment 
less than 50 per cent but technically difficult to be implemented by Chinese construction 
enterprises alone (1) Unbound
3 
(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 are allowed 
only to undertake foreign-invested construction 
projects.  Within thr ee years after China's 
accession to the WTO, none. 
  
                                                      
1 Including dredging services relating to infrastructure construction. 
2 Coverage of CPC 518 is limited only to the rental and leasi ng services of construction and/or  demolition machines with operato r which are owned and used by foreign 
construction enterprises in their supply of services. 
3 Unbound due to lack of technical feasibility.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 20 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 commitment 
 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 in dicated in Horizontal 
Commitments.  
  
 
  
(4) Unbound except as in dicated in Horizontal 
Commitments.  
4. DISTRIBUTION 
 SERVICES 
 (as defined in 
Annex 2) 
 
A. Commission 
Agents’ Services 
 (excluding salt, 
tobacco) 
B. Wholesale Trade 
services1 
 (excluding salt, 
tobacco) (1) Unbound 
(2) None 
(3) Within one year afte r China's accession to the 
WTO, foreign service suppliers may establish joint ventures 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 distribution of books, newspapers, magazines, pharmaceutical products, pesticides 
and mulching films within three years after 
China's accession, and to engage in the 
distribution of chemical fertilizers, processed oil 
and crude oil within fi ve years after China's 
accession. Within two years after China's 
accession to the WTO,  foreign majority 
ownership will be permitted and no geographic or quantitative restrictions will apply.  None, 
within three years after accession, except for 
chemical fertilizers, pr ocessed oil and crude oil 
within five years after accession. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) Unbound 
(2) None 
(3) None 
  
 
  
 
  
 
 
 
  
 
  
 
  
(4) Unbound except as in dicated in Horizontal 
Commitments. 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 2. Foreign service suppliers 
may provide the full range 
of related subordinate 
services, including after 
sales services, as defined in Annex 2, for the 
products they distribute. 
                                                      
1 The restrictions on mode 1 shall not undermine the rights of WTO Members to the righ t to trade as stipulated in Chapter 5 of Ch ina's Protocol of accession to the WTO. 
   WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 21Modes 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 commitment 
C. Retailing Services 
 (CPC 61 and 63,  
excluding 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 two years after 
China's accession to the WTO, foreign majority 
control will be permitted in joint venture retailing 
enterprises and all provincial capitals, Chongqing 
and Ningbo will be open to joint venture retailing enterprises. (1) Unbound except mail order. 
(2) None (3) None 
 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 2.  Foreign service 
suppliers will be 
permitted to provide full range of related 
subordinate services, 
including after sales services, as defined in 
Annex 2, for the products 
they distribute.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 22 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 commitment 
 
  Foreign service suppliers will be permitted to 
engage in the retailing of all products, except for the retailing of books, newspapers and magazines 
within one year after accession, the retailing of 
pharmaceutical products, pesticides, mulching films and processed oil within three years after 
accession and retailing of chemical fertilizers 
within dive years after accession.  None, within 
three years after accession, except for: 
 
- chemical fertilizers, within five years after 
accession; and 
- those chain stores which sell products of 
different types and brands from multiple 
suppliers with more than 30 outlets. For such 
chains stores with more than 30 outlets, foreign majority ownership will not be permitted if those 
chain stores distribute any of the following 
products: motor vehicles (for a period of five years after accession at which time the equity 
limitation will have been eliminated), and 
products listed above and in Annex 2a of the Protocol of China's WTO Accession. The foreign 
chain store operators will have the freedom of 
choice of any partner, legally established in China according to China's laws and regulations. 
(4) Unbound except as in dicated in Horizontal 
Commitments.  
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
(4) Unbound except as in dicated in Horizontal 
Commitments.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
D.  Franchising (1) None 
(2) None (3) Within three years after China's accession to the 
WTO, none. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) None 
(2) None (3) Within three years af ter China's accession to the 
WTO, none. 
(4) Unbound except as in dicated in Horizontal 
Commitments.  
E.  Wholesale or retail 
trade services away 
from a fixed location. For all 
sub-sectors listed in 
Annex 2 (1) None 
(2) None 
(3) Within three years after China's accession to the 
WTO, none
∗. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) Within three years af ter China's accession to the 
WTO, none. 
(4) Unbound except as in dicated in Horizontal 
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 
(CPC 922, 
excluding national compulsory 
education in CPC 
92210) (1) Unbound 
(2) None 
(3) Joint schools will be established, with foreign 
majority ownership permitted. 
(4) Unbound except as in dicated in Horizontal 
Commitments 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.  
                                                      
∗ See paragraph [321] of the Working Party Report.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 24 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 commitment 
C.  Higher education 
services 
 (CPC 923) 
D.  Adult education 
services  
 (CPC 924) 
E.  Other education 
services  
 (CPC 929, 
including English 
language training)     
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) (1) Unbound except for environmental consultation 
services. 
(2) None 
(3) Foreign services suppliers engaged in 
environmental services are permitted to provide 
services only in the form of joint ventures, with 
foreign majority ownership permitted. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) None 
  
 
 (4) Unbound except as in dicated in Horizontal 
Commitments    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
F. Other 
Environmental 
 Protection Services 
 (CPC 9409) 
G. Sanitation Services 
(CPC 9403)  .  
7. FINANCIAL 
SERVICES 
A. All Insurance and 
Insurance-Related 
Services1 
a. Life, health and 
pension/annuities 
insurance 
b. Non-life insurance c. Reinsurance 
d. Services auxiliary 
to insurance (1) Unbound except for : 
a)  international marine , aviation, and transport 
insurance and reinsurance; 
b)  brokerage for insurance of large scale 
commercial risks, brokerage for insurance and 
brokerage for international marine, aviation, and transport insurance and 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 
per cent foreign ownership. Within two 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 per cent 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) None, except for: - Foreign insurance institutions shall not engage in 
the statutory insurance business.  
- Upon accession, a 20 per ce nt cession of all lines 
of the primary risks for no n-life, personal accident 
and health insurance business with an appointed 
Chinese Reinsurance Comp any shall be required; 
one year after accession, 15 per cent shall be 
required; two years after accession, ten per cent shall be required; and three years after accession, 
five per cent shall be required; and four years 
after accession, no compulsory cession shall be required.  
                                                      
1 Any further authorization prov ided to foreign insurers after accession under mo re favorable conditions than those contained in  this schedule (including the 
extension of grandfathered investments through branching, sub-bran ching or any other legal form), will be made available to oth er foreign service suppliers which so 
requested.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 26 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 commitment 
 For brokerage for insu rance of large scale 
commercial risks and brokerage for reinsurance and brokerage for international marine, aviation, 
and transport insurance and reinsurance: upon 
accession, joint venture w ith foreign equity no 
more than 50 per cent will be permitted; within 
three years after China's accession, foreign equity 
share shall    be increased to 51 per cent; within five 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, foreign life and non-life 
insurers, and insurance brokers will be permitted 
to provide services in Shanghai, Guangzhou, 
Dalian, Shenzhen and Foshan. Within two years after China's accession, fo reign 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 three years after China's accession, there will be no geographic restrictions. 
C. Business Scope 
 Upon accession, foreign non -life insurers will be 
permitted to provide "master policy" 
insurance/insurance of large scale commercial 
risks, which has no geographic restrictions. In 
accordance with nationa l treatment, foreign 
insurance brokers will be permitted to provide "Master policy" no later than Chinese brokers, 
under conditions no less favourable.     WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
    Foreign non-life insurers are permitted only to 
provide insurance of ente rprises abroad as well 
as property insurance, related liability insurance 
and credit insurance of foreign-invested 
enterprises in China u pon 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; w ithin three years after 
accession, foreign insurers  will be permitted to 
provide health insuran ce, 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 insurance as a branch, joint 
venture, or wholly foreign-owned subsidiary, 
without geographic or quantitative restrictions 
on the number of licenses issued. 
 
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;    WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 28 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 commitment 
 - it shall have total assets of more than US $5 
billion at the end of the year prior to application, except for insurance broker s.  Insurance brokers 
shall have total assets  of more than US$ 500 
million. Within one year after accession, they shall have total assets of more than US$ 400 
million. Within two y ears after accession, they 
shall have total assets of more than US$ 300 million Within four y ears after accession, they 
shall have total assets of more than US$ 200 
million. 
(4) Unbound except as in dicated in Horizontal 
Commitments.
 (4) Unbound except as in dicated in Horizontal 
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; 
 (1) Unbound except 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 two years after accession, Jinan, Fuzhou, Chengdu and 
Chongqing; within three years after accession, 
Kunming, Beijing and Xiamen; Within four years after accession, Shantou, Ningbo, 
Shenyang and Xian. Within five 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.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
d. All payment and 
money transmission services, including 
credit, charge and 
debit cards, travellers cheques 
and bankers 
drafts(including import and export 
settlement); 
e. Guarantees and 
commitments; 
f. Trading for own 
account or for 
account of 
customers: foreign exchange.  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 busi ness, within two years 
after accession, foreign fina ncial institutions will 
be permitted to provide services to Chinese enterprises. Within five 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 one 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 five 
years after accession, an y 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.  
Foreign financial institutions who meet the 
following condition are permitted to establish a 
branch of a foreign bank in China:  
 For financial leasing 
services, foreign financial leasing corporations will 
be permitted to provide 
financial leasing service at the same time as domestic 
corporations.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 30 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 commitment 
 - 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 currency business are as follows: 
- three years business oper ation in China and being 
profitable for two consecutive years prior to the 
application; 
(4) Unbound except as in dicated in Horizontal 
Commitments.  
  
 
  
 
  
 
 
 
 
(4) Unbound except as in dicated in Horizontal 
Commitments. 
- Motor vehicle 
financing by non-
bank financial institutions (1) Unbound except 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) None (4) Unbound except as in dicated in Horizontal 
Commitments. (1) Unbound 
 
  
 
  
 
  
(2) None 
(3) None (4) Unbound except as in dicated in Horizontal 
Commitments.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
- 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 in dicated in Horizontal 
Commitments. (1) None 
(2) None (3) None  
 
  
 
(4) Unbound except as in dicated in  Horizontal 
Commitments.   WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 32 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 commitment 
- 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, represen tative 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 per cent to conduct 
domestic securities investment fund management business. Within three years after China's 
accession, foreign investme nt shall be increased 
to 49 per cent. Within three 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 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 in dicated in Horizontal 
Commitments.    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 33Modes 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 commitment 
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 four  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 in dicated in Horizontal 
Commitments. 
B. Travel Agency and 
Tour Operator 
 (CPC 7471)  (1) None 
(2) None 
(3) Foreign services suppliers who meet the 
following conditions are permitted to provide 
services in the form of joint venture travel 
agencies and tour operator s in the holiday resorts 
designated by the Chines e government and in the 
cities of Beijing, Shanghai, Guangzhou and Xi'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 foreign-
owned travel agencies and tour operators are not 
permitted to engage in the activities of Chinese 
travelling abroad and to Hong Kong China, 
Macao China and Chinese Taipei  
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 34 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 commitment 
  Within three years after accession foreign 
majority ownership will be permitted. Within six years after accession, wholly foreign-owned 
subsidiaries will be permitted and geographic 
restrictions will be removed.  e registered capital of joint venture travel ag ency/tour operator shall 
be no less than RMB 4 million. Within three 
years after China's accession, the registered capital shall be no less than RMB 2.5 million.  
The business scope of th e 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 six years after 
accession, there will be no restriction on the 
establishment of branches of the joint venture travel agency/tour operat or. And the requirement 
on registered capital of foreign-invested travel 
agency/tour operator will be the same as that of Chinese travel agen cy/tour operator. 
4) Unbound, except as indicated in Horizontal 
Commitments.  
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
4) Unbound, except as in dicated in Horizontal 
Commitments  
    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 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 commitment 
11. TRANSPORT 
SERVICES 
 
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 (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 sha ll 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 crew: Unbound  except as indicated in 
Horizontal Commitments. 
 (b) Key personnel employed by Commercial 
Presence as defined under mode (3) (b) above: 
Unbound except as indi cated in Horizontal 
Commitments. (1) (a) None 
  (b) None 
 
(2) None (3) (a) None 
 
  
 
 
 
  
 
  
 
 (b) Unbound (4) (a) Unbound except as indicated in Horizontal 
Commitments. 
(b) Unbound except as in dicated in Horizontal 
Commitments. 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 
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. 
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 ownership permitted. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) Unbound * 
(2) None 
(3) None 
(4) Unbound except as in dicated in Horizontal 
Commitments.  
                                                      
*  Unbound due to lack of technical feasibility. 
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 36 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 commitment 
d. Container station 
and depot services 
 
 (1) Unbound * 
(2) None 
(3) Only in forms of joint ventures, with foreign 
majority ownership permitted. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) Unbound *  
(2) None 
(3) None 
 
(4) Unbound except as in dicated 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 in dicated in Horizontal 
Commitments. (1) None 
(2) None 
(3) None 
 
(4) Unbound except as in dicated in Horizontal 
Commitments.  
B. Internal Waterways 
Transport 
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 in dicated in Horizontal 
Commitments. (1) Limitations as indicated under market access 
column. 
(2) None 
(3) Unbound 
(4) Unbound except as in dicated 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 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 establishments of joint ventures are 
subject to economic needs test. 
(4) Unbound except as in dicated in Horizontal 
Commitments. (1) Unbound
* 
(2) None 
(3) The joint ventures are allowed only to undertake 
business in the international market. 
 
  
 
 (4) Unbound except as in dicated in Horizontal 
Commitments.  
                                                      
*  Unbound due to lack of technical feasibility. 
 
 
    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 37Modes 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 commitment 
- 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 re presentative 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 in dicated in Horizontal 
Commitments. (1) None 
  
 
  
 
  
 
 
 
  
 
  
 
 (2) None 
(3) Unbound 
(4) Unbound except as in dicated in Horizontal 
Commitments.    
E. Rail Transport 
Services 
F. Road Transport 
Services 
- Freight 
transportation by rail 
 (CPC7112)  
- Freight 
transportation by road in trucks or cars  
 (CPC7123) (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 years after China's 
accession, foreign major ity ownership will be 
permitted and within six years after China's 
accession, wholly foreign- owned subsidiaries will 
be permitted. 
- For road transport, with in one year after China's 
accession, foreign major ity ownership will be 
permitted. Within three years after China's accession, wholly foreign- owned subsidiaries will 
be permitted. (1) None 
(2) None 
(3) Unbound    WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 38 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 commitment 
 (4) Unbound except as indicated in Horizontal 
Commitments. (4) Unbound except as indicated in Horizontal 
Commitments.  
- Storage and 
warehousing 
services (CPC742) 1)  Unbound 
2)  None 
3)  Upon accession, only in the form of joint 
ventures, with foreign in vestment not to exceed 
49 per cent. Within one year after China's 
accession, foreign major ity ownership will be 
permitted and within three years of China's accession, wholly foreign- owned subsidiaries will 
be permitted. 
(4)  Unbound except as indicated in Horizontal 
Commitments. (1) Unbound 
(2) None 
(3) None 
  
 
  
 
(4) Unbound except as indicated in Horizontal 
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 three consecutive 
years experience are permitt ed to set up freight 
forwarding agency joint ve ntures in China, with 
foreign investment not to exceed 50 per cent; 
within one year after China's accession, foreign 
majority ownership will be permitted. Within four 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 four 
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 origin al 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. (1) None 
(2) None 
(3) None    WT/ACC/SPEC/CHN/1/Rev.8/Add.2
 Page 39Modes 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 commitment 
  A foreign freight forwarding agency may set up a 
second joint venture after its first joint venture has been in operation for five years. Within two years 
after China's accession to WTO, this requirement 
will be reduced to two years. 
4) Unbound except as indicated in Horizontal 
Commitments.  
  
 
 4) Unbound except as indicated in Horizontal 
Commitments.  
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 40 LIST OF ARTICLE II EXEMPTIONS FOR CHINA 
  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. Acco rding to present state of trade 
between signatories. 
  Agreements of cargo shar ing. Algeria, Argentina, 
Bangladesh, Brazil, Thailand, USA, Zaire.  Subject to the 
effective duration of the agreements concerned. According to present state of trade 
between signatories. 
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
 Page 41 
 
 
 ANNEX 1 
 
Reference Paper   
 Scope
 
 
 The following are definitions and principl es 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 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 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. 
 
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.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
Page 42  
 
  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. 
 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. 
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
 Page 43 
 
 
  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/1/Rev.8/Add.2 
Page 44  
 
    
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 BASI C 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
3, 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. 
                                                     
 
     3Including all types of cable.  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
 Page 45 
 
 
  
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/1/Rev.8/Add.2 
Page 46  
 
  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 rela ted subordinated services, including inventory 
management; assembly, sorting and gr ading of bulk lots; breaking bulk  lots and redistributing into 
smaller lots; delivery services; refrigeration, storage, warehousing and garage services; sales 
promotion, marketing and advertis ing, installation and after sales services including maintenance and 
repair and training services. Distribution services ar e 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/mer chandise and related subordinated services. 
  Wholesaling consist of the sale of goods/mercha ndise 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 use of a product, trade name or particular business format system in exchange for fees or r oyalties. Product and trade name franchising involves 
the use of a trade name in exchange for fees or ro yalties and may include an  obligation for exclusive 
sale of trade name products. Busi ness format franchising 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 related subordinated services.
  WT/ACC/SPEC/CHN/1/Rev.8/Add.2 
 Page 47 
 
 
 ANNEX 3 
 
Insurance: Definition of "Master Policy"  
  Master policy is the policy that provides blanke t 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 constr uction 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.  
 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 per cent of the total investment.   The investment is partially from abroad, and pa rtially 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 pl aces 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, insu rance 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 th e 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 insura nce, employer liabilities insura nce, 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.  
__________ 
  
 