./.WORLD TRADE
ORGANIZATIONG/SCM/N/104
27 October 2003
(03-5669)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
TRANSITIONAL REVIEW UNDER ARTICLE 18 OF THE PROTOCOL
OF ACCESSION OF THE PEOPLE’S REPUBLIC OF CHINA
INFORMATION REQUIRED IN ANNEX 1A
PEOPLE'S REPUBLIC OF CHINA
The following communication, dated 24 October 2003, has been received from the Permanent
Mission of China.
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II. ECONOMIC POLICIES
4. Pricing Policies
(a) Application of existing or any other price controls and the reason for their use
(1)  The practice of multiple pricing for one product or service has been completely
terminated.  (2)  Currently, products and services subject to price control are strictly limited to the
products listed in Annex 4 of the Protocol on Accession of China.  The list of products and servicessubject to state pricing has been published in the Price Gazette of the People’s Republic of China.  All
the price-setting mechanism and the pricing policies concerning products and services under state
pricing and government guidance pricing have been published in time through the Price Gazette of the
People’s Republic of China as well as the web site of the National Development and Reform
Commission (www.ndrc.gov.cn).  (3)  The scope of products and services subject to state pricing andgovernment guidance pricing strictly conforms to the Annex 4 of the Protocol.  State pricing and
government guidance pricing only apply to products and services, regardless of the ownership of the
enterprises.  (4)  The public hearing procedures, the expert appraisal and collective review system
have been introduced into the process of price setting and adjusting mechanism, and therefore
strengthen the scientific basic and enhance transparency of decision-making process on pricing.  Theadoption of state pricing and the government guidance pricing will not limit or impair the market
access of imported goods and services.  (5)  The relevant policies on the pricing administration are
based on the Pricing Law of the People’s Republic of China.G/SCM/N/104
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(b) Pricing mechanism of China’s state trading enterprises for export products
The prices of the products exported by the state trading enterprises are independently
determined by the enterprises themselves, based on the situation of demand vs. supply.  The price
includes the cost of production, processing and/or procurement as well as distribution (i.e. cost ofstorage, transportation, interest rate and inspection fees etc.).
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