china- eu investment agreement negotiations - … · without prejudice 4 4. in the interpretation...

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CHINA- EU INVESTMENT AGREEMENT

NEGOTIATIONS - SCHEDULES OF CHINA

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ANNEX I

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Annex I

Explanatory Notes

1. The Schedule of China to this Annex sets out, pursuant to Articles 7

(Non-Conforming Measures and Exceptions), China’s existing measures that are not

subject to some or all of the obligations imposed by:

(a) Article 4 (National Treatment);

(b) Article 5 (Most-Favored-Nation Treatment);

(c) Article 3 (Performance Requirements); or

(d) Article 6 (Senior Management and Boards of Directors).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Obligations Concerned specifies the article(s) referred to in paragraph 1

that, pursuant to Articles 7.1 (a) (Non-Conforming Measures and

Exceptions), do not apply to the non-conforming aspects of the Measures or

the Description, as set out in paragraph 3;

(c) Level of Government indicates the level of government maintaining the

scheduled measure(s);

(d) Measures1 identifies the laws, regulations, or other measures for which the

entry is made. A measure cited in the Measures element:

(i) means the measure as amended, continued or renewed as of the date

of entry into force of this Agreement; and

(ii) includes any subordinate measure adopted or maintained under the

authority of and consistent with the measure; and

(e) Description sets out the non-conforming aspects of the measure for which

the entry is made.

3. In accordance with Article 7.1(a) (Non-Conforming Measures and Exceptions),

and subject to Article 7.1(c) (Non-Conforming Measures and Exceptions), the articles

of this Agreement specified in the Obligations Concerned element of an entry do not

apply to the law, regulation, or other measure, as applicable, identified in the

Measures element of that entry, or the non-conforming aspects of the Description

element.

1 For greater certainty, in the case of China, a change in the level of government at which a measure is administered or enforced does not, by itself, decrease the conformity of the measure

with the obligations referred to in Article 7.1.

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4. In the interpretation of a Schedule entry, all elements of the entry shall be

considered. The Measures element shall prevail over all other elements, unless

otherwise explicitly indicated in the entry, or where a discrepancy between the

Measures element and the other elements considered in their totality is so substantial

and material that it would be unreasonable to conclude that the Measures element

prevails, in which case the other elements prevail to the extent of that discrepancy.

5. Where there is overlap between the contents of this Annex and Annex II,

notwithstanding the obligations a Party assumes under Article 7.1 and this Annex, the

Party remains entitled to adopt or maintain relevant measures in accordance with

Article 7.2 and Annex II.

6. For the purposes of the Schedules of China to this Annex:

(a) “foreign investor” means any investor of the other Party or a non-Party.

(b) “foreign investor may not invest” means a foreign investor may not

directly or indirectly invest, including by holding any shares, stock or other

forms of rights or interest directly or indirectly, in the territory of China.

(c) “Chinese control” means the circumstances where the total investment

proportion held by foreign investors, whether directly and indirectly, is not

greater than 49%.

(d) “proportion of investment” means the aggregate proportion of investment

or equity ratio of an investor and its affiliates in a single enterprise directly

or indirectly.

(e) Where one party has control or common control over the other party or

significantly affects the other party, or two or more parties are controlled by

or under the common control of or are significantly affected by another party,

they shall constitute the “affiliates”.

(f) for greater certainty, a foreign investor and its affiliates are considered to be

one single foreign investor. Foreign investors shall not circumvent any

requirements for foreign investors as set out in a Schedule entry.

(g) “foreign financial institution” means an institution registered outside China

and established upon approval or permission by, and under the supervision

of, the financial regulatory authority of the country or region where it is

located.

7. For greater certainty, with respect to a reservation concerning the supply of a

service, if the means of delivery is not specified or otherwise described or limited, the

reservation shall apply to all means of delivery of the service.

8. For greater certainty, unless otherwise specified in a reservation, the supply of a

service shall not be subject to a reservation merely because it’s supplied through a

particular means of delivery including through public communication networks or the

Internet.

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9. The sectorial exclusion of audio-visual services from the scope of Section II:

investment liberalizaion as provided in Article 1 (Scope of Application) of Section II,

Sub-section I shall prevail over relevant entries in Annex I and Annex II of China’s

negative list. Measures regarding activities covered by the sectorial exclusion of

audio-visual services, if included in Annex I and Annex II of China’s negative list, are

listed solely for transparency purposes.

Negotiators’ Note: Before signature of the Agreement and during the legal scrubbing,

China will update the reference to Special Administrative Measures for Market

Access of Foreign Investment (Negative List) (2019 Edition) in this Schedule in the

light of its latest edition.

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Annex I

SCHEDULE OF CHINA

Annex I Entry 1 – Seed Industry

Sector: Seed Industry

Obligations

Concerned: National Treatment (Article 4)

Level of

Government Central, Local

Measures: Seed Law (2015), Articles 8, 11 and 62;

Special Administrative Measures for Market Access of Foreign

Investment (Negative List) (2019 Edition), Article 1, 2, 3.

Description: 1. Foreign investors may not invest in the research and development,

cultivation or planting of the precious and quality varieties which are

rare and special in China, and the production of the relevant

reproductive materials thereof (including the good genes in the

plantation, animal husbandry and fishing industry).

2. Chinese control is required for investments by foreign investors in

the selection and breeding of new varieties of wheat and corn and

seed production of wheat and corn.

3. Foreign investors may not invest in the selection and breeding of

transgenic varieties of crops, livestock and poultry raised for

breeding purpose, seeds and sprouts of aquatic products, and the

production of their transgenic seeds (sprouts).

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Annex I Entry 2 – Fishery

Sector: Fishery

Obligations


Level of

Government: Central

Measures: Fisheries Law (2013);

Law on the Exclusive Economic Zone and the Continental Shelf

(1998), Article 5;

Law on the Territorial Sea and the Contiguous Zone (1992), Article

11.


Investment (Negative List) (2019 Edition), Article 4.

Description: Foreign investors are not allowed to invest in the fishing of aquatic

products within the sea and inland waters under the jurisdiction of

China.

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Annex I Entry 3 – Exploration and Exploitation of Exclusive Economic Zone and

Continental Shelf

Sector: Exploration and Exploitation of Exclusive Economic Zone and

Continental Shelf

Obligations


Level of

Government Central

Measures: Law on the Exclusive Economic Zone and the Continental Shelf

(1998), Article 7.

Description: Any international organization, foreign entity or individual must

obtain approval from Chinese government for carrying out activities

of exploring and exploiting natural resources in the exclusive

economic zone of China or on the Chinese continental shelf, or

drilling on the Chinese continental shelf for any purpose.

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Annex I Entry 4 – Exploration, Exploitation and Smelting of Minerals

Sector: Exploration, Exploitation and Smelting of Minerals

Obligations


Level of

Government: Central

Measures: Notice of the State Council on Classifying Tungsten, Tin, Antimony

and Ion-Type Rare Earth Minerals as Specific Minerals Under

Protective Mining by the State (1991), Article 2;



Description: 1. Foreign investors may not invest in the exploration, exploitation or

ore dressing of rare earth.

2. Foreign investors may not invest in the exploration or exploitation

of tungsten.

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Annex I Entry 5 – Printing of Publications

Sector: Printing of Publications

Obligations


Level of

Government: Central

Measures: Regulation on the Administration of Printing Industry (2017), Article

14;



Description: Chinese control is required for investments (excluding those in free

trade pilot zones) by foreign investors in the printing of publications.

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Annex I Entry 6 – Manufacture of Transportation Equipment

Sector: Manufacture of Transportation Equipment

Obligations


Level of

Government: Central

Measures: Special Administrative Measures for Market Access of Foreign


Description: 1. For investments by foreign investors in the manufacture of

complete automobiles (passenger cars), shareholding percentage of

the Chinese party shall not be less than 50%.

After 2022, investments by foreign investors in the manufacture of

passenger cars will not be subject to restrictions on shareholding

percentage.

2. One foreign investor may establish less than two (included) equity

joint ventures that manufacture complete automobiles of the same

category (passenger cars) within the territory of China, however,

such limitation of two enterprises does not apply to the circumstance

where the foreign investor acquires other domestic automakers

jointly with the Chinese party to the equity joint venture.

After 2022, China will no longer reserve the non-conforming

measures prescribed in paragraph 2 of this entry.

3. For greater certainty, the measures listed in this entry does not

apply to investments by foreign investors in the manufacture of new

energy automobiles and special purpose automobiles.

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Annex I Entry 7 – Wholesale - Import and Export

Sector: Wholesale - Import and Export

Obligations


Level of

Government: Central

Measures: Foreign Trade Law (2004), Article 11;

Regulation on the Administration over Import and Export of Goods

(2001), Article 45.

Description: The import or export of the following goods into or outside China

are subject to state trading administration, and Chinese government

reserves the right to determine and announce to public the list of the

enterprises that may engage in the import state trading or export state

trading:

(1) Goods of which the import is subject to state trading

administration refer to the goods listed in Annex 2A1 to the Protocol

on the Accession of the People’s Republic of China (WT/L/432),

excluding vegetable oil;

(2) Goods of which the export is subject to the state trading

administration refer to the goods as listed in Annex 2A2 to the

Protocol on the Accession of the People’s Republic of China

(WT/L/432) and tobacco monopoly products, excluding yarn and

non-bleached yarn.

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Annex I Entry 8 – Government-granted Monopoly

Sector: Government-granted Monopoly

Obligations

Concerned:

National Treatment (Article 4)

Level of

Government: Central

Measures: Law on Tobacco Monopoly (2015), Articles 1, 2 and 3;

Regulation on the Administration of Central Grain Reserves (2016),

Article 8;



Description: 1. Foreign investors may not invest in the production, wholesale,

retail or import and export of leaf tobacco, cigarettes, re-dried leaf

tobacco, cigars, cut tobacco and other tobacco products1.

2. The purchase, sale, storage and rotation etc. of China’s central

grain (oil) reserves are subject to government-authorized operation.

1 For the purpose of this entry, “tobacco products” refer to products entirely or partly made of the leaf tobacco as raw material, which are manufactured to be used for smoking, sucking, chewing or

snuffing.

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Annex I Entry 9 – Air Transportation1

Sector: Air Transportation

Obligations

Concerned:


Senior Management and Boards of Directors (Article 6)

Level of

Government: Central

Measures: Civil Aviation Law (1996), Article 7, 177;

Regulations on the Control of General Aviation Flight(2003), Article

14;


Investment (Negative List)(2019 Edition), Article 15,16;

Relevant bilateral air services agreements.

Description: 1. Chinese control is required for investments by foreign investors in

public air transportation enterprises, and the proportion of

investment by one single foreign investor (including its affiliated

enterprises) may not exceed 25%. The legal representative of a

public air transportation enterprise must be Chinese citizen. Only

Chinese public air transportation enterprises are allowed to operate

domestic air services (cabotage), and provide international scheduled

and non-scheduled air services as designated Chinese air carriers.

2. Foreign investors may invest in general aviation enterprises only

in the form of joint venture, and Chinese control is required for such

general aviation enterprises, except those specially engaged in the

business of agriculture, forestry and fishery; the legal representative

of a general aviation enterprise must be Chinese citizen. Approval is

required for foreign aircrafts or Chinese aircrafts used by foreigners

to carry out general activation activities within the territory of China.

3. Nationality registration is required for the civil aircraft of an

enterprise established in accordance with the law of the People's

Republic of China. To get a registration, such enterprise, when

engaging in civil aviation industry, shall comply with relevant

1 Paragraphs 1 and 2 of this Entry are included for greater certainty only and do not affect the

scope of the Agreement as defined in Article 1 of Section II, Sub-section I.

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regulations on foreign investment in civil aviation. Where a civil

aircraft was leased from abroad, the lessee satisfying aforementioned

requirements may apply for a nationality registration of China for

such aircraft, provided that the original nationality registration of

such aircraft has been cancelled.

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Annex I Entry 10 –Services related to Air Transport

Sector: Services related to Air Transport

Obligations


Level of

Government: Central


Investment (Negative List) (2019 Edition), Article 17, 18.

Description: 1.Foreign investors may not invest in the building or operation of the

air traffic control system; relative Chinese control is required for

investments in the building or operation of civil airports.

For the purpose of this entry, “relative Chinese control” refers to the

circumstance where the aggregate proportion of investment held by

the Chinese parties in a foreign-invested enterprise exceeds the

proportion of investment held by any single foreign investor in such

enterprise.1

2.After one year as from the date of entry into force of this

Agreement, EU investors may invest in computer reservation system

services.

1 Paragraph 1 of this Entry are included for greater certainty only and do not affect the scope of

the Agreement as defined in Article 1 (Scope of Application) of Section II, Sub-section I.

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Annex I Entry 11 – Postal Services

Sector: Postal Services

Obligations


Level of

Government: Central

Measures: Postal Law (2015), Articles 5, 14, 15, 42, 51, 55, 84;

Measures for the Supervision and Administration of Universal Postal

Services (2015), Article 21;



Description: 1. Foreign investors may not invest in postal enterprises1 or operate

postal services2.

2. Foreign investors may not invest in the operation of domestic

express delivery service3 for correspondence4.

1 For the purpose of this entry, “postal enterprise(s)” refer to the China Post Group and its wholly

owned and/or controlled enterprises that provide postal services.

2 For the purpose of this entry, “postal services” refer to postal services supplied by a postal

enterprise, including mail delivery, postal remittance, stamp issuance, issuance of newspapers and

magazines required by the government, post office counter services, P.O. box leasing services, and

poste restante services.

3 For the purpose of this entry, “domestic express delivery service” refers to express delivery

service in which the entire process from the acceptance of mail to delivery occurs within the

territory of China.

4 For the purpose of this entry, “correspondence” refers to letters or postcards. The term “letter”

refers to a sealed information carrier delivered in an envelope to a specific individual or entity according to the name and address indicated thereon, excluding books, newspapers, periodicals,

etc.

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Annex I Entry 12 – Telecommunication Services

Sector: Telecommunication Services

Obligations


Level of

Government: Central

Measures1: Regulation on Telecommunications (2016), Article 10;

Provisions for the Administration of Foreign-Invested

Telecommunications Enterprises (2016), Article 6;



Description: 1. Foreign investors may not invest in internet access service

(excluding provision of internet access service to internet end users).

2. In the case of an EU investor investing in internet data center

service (including content delivery network service), the

shareholding percentage of foreign investors may not exceed 50%.

3. In the case of an EU investor investing in international

communication facility service, satellite communication service,

cluster communication service, network access facilities service,

network trusteeship service, domestic communication facilities

service, fixed communication service, cellular mobile

communication service, data communication service or IP telephone

service, the shareholding percentage of foreign investors may not

exceed 49% (the foregoing services may be provided on the basis of

facilities). In the case of an EU investor investing in online data

processing and transaction processing services (E-commerce not

included), domestic internet virtual private network services and

code and protocol conversion services, the shareholding percentage

of foreign investors may not exceed 50%.

1 The level of liberalization of the Description element in this Entry goes beyond that of the

existing measures listed above. Whether China will amend the listed existing measures will not

prevent EU investors from enjoying the more favorable treatment provided in the Description

element when this Agreement comes into effect.

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Annex I Entry 13 – Legal Services

Sector: Legal Services

Obligations

Concerned:


Senior Management and Board of Directors (Article 6)

Level of

Government: Central

Measures: Regulation on the Administration of Representative Offices of

Foreign Law Firms in China (2001), Article 6, 16;

Provisions of the Ministry of Justice for Implementing the Regulation

on the Administration of Representative Offices of Foreign Law

Firms in China (2004);

Measures for the Implementation of National-Uniformed

Qualification Examination of Legal Profession (2018), Article 9;



Description: 1. Foreign investors may not engage in the Chinese legal matters.

2. Foreign nationals may not take the China National-Uniformed

Qualification Examination of Legal Profession, obtain the Chinese

legal practitioner qualification, or become partners of Chinese law

firms.

3. A foreign law firm may enter into China only in the form of a

representative office; the establishment of representative office and

dispatch of representatives by a foreign law firm are subject to the

approval of the administrative department of justice of China.

4. Representative offices of foreign law firms may not employ

lawyers licensed to practice Chinese law, and the supporting

personnel employed by such representative offices may not provide

legal services to any concerned party.

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Annex I Entry 14 – Statistics and Surveys

Sector: Statistics and Surveys

Obligations


Level of

Government: Central



Description: 1. Foreign investors may not invest in social survey1.

2. Investments by foreign investors in market survey2 may be made

only in the form of joint venture, of which Chinese control is

required for investments by foreign investors in surveys of television

or broadcast audience ratings.

1 For the purpose of this entry, “social survey” refers to the activity, other than a market survey, of

collecting, compiling and analyzing the relevant information of the society by way of

questionnaire (including paper media, magnetic media and online form), interview, observation or

any other ways, which corresponds to CPC86402 (public opinion polling service) and the content

of “economic and social intelligence service not related to commodities, such as industry analysis,

econometrics model, demographic analysis ,etc.” as set out in CPC86401 in Central Product

Classification (CPC) of the United Nations Statistical Commission.

2 For the purpose of this entry, “market survey” refers to the investigation service designed to

secure information on the prospects and performance of an organization’s products in the market,

including market analysis (of size and other characteristics of a market) and analysis of consumer

attitudes and preferences, which corresponds to CPC86401 (market survey service) in Central

Product Classification (CPC) of the United Nations Statistical Commission, but excluding the content of “economic and social intelligence service not related to commodities, such as industry

analysis, econometrics model, demographic analysis, etc.”

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Annex I Entry 15 – Valuation of State-owned Assets

Sector: Professional Services

Obligations


Level of

Government: Central

Measures: Asset Valuation Law of the People’s Republic of China (2016),

Article 9, 15.

Description: For an asset valuation institution engaging in the valuation of

state-owned assets, more than two thirds of its partners or

shareholders shall be Chinese Public Valuers.

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Annex I Entry 16 – Professional Technical Services

Sector: Professional Technical Services1

Obligations


Level of

Government: Central

Measures: Surveying and Mapping Law of the People’s Republic of China

(2017), Article 8;

Provisional Measures on the Administration of Surveying and

Mapping by Foreign Organizations or Individuals in China (2019),

Article 7;



Description: Foreign investors may not invest in the following businesses:

geodetic survey, hydro graphic survey, aerial photography for

mapping, ground moving survey, administrative boundary survey;

compilation of topographic maps, world political maps, national

administrative district maps, provincial or lower administrative

district maps, national teaching maps, local teaching maps, true

three-dimensional maps and digital navigation maps; regional

geological mapping, mineral geology, geophysics, geochemistry,

hydrogeology, environmental geology, geological disasters or remote

sensing geology.

1 For greater certainty, measures set out in this entry shall not prejudice the liberalization

commitments reflected in other entries of this Annex I in respect of exploration of minerals.

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Annex I Entry 17 – Education

Sector: Education

Obligations

Concerned:



Level of

Government: Central

Measures: Regulation of the People's Republic of China on Sino-foreign

Cooperatively-run Educational Institutions (2013), Article 6, 7, 21,

23, 25, 62;

Regulation on Religious Affairs (2017), Article 11;

Regulation on the Administration of Religious Activities Conducted

by Foreigners within China (1994), Article 8;



Description: 1. Foreign investors which invest in schools or other educational

institutions providing education or services mainly targeted at

Chinese citizens (occupational skill training not subject to the

statutory length of schooling not included) shall be foreign

educational institutions, and such investment shall be made only in

the form of Sino-foreign cooperative educational institutions,

established in cooperation with Chinese educational institutions.

Educational institutions established in the form of Sino-foreign

cooperative educational institutions may not provide religious

education or carry out religious activities.

2. Foreign religious organizations, foreign religious institutions,

foreign religious colleges or schools, or religious teaching personnel

may not invest in educational institutions. Foreign investors may not

invest in religious educational institutions within the territory of

China.

3. General senior high schools, higher education institutions and

pre-school education institutions established in the form of

Sino-foreign cooperative educational institutions require the Chinese

party to be in the leading position, which means the president or the

principal administrator of a Sino-foreign cooperatively-run

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educational institution must be a person with Chinese nationality and

domicile in the territory of China; the board of trustees, board of

directors or the joint management committee shall consist of no less

than half of the members from the Chinese party.

4. Foreign investors may not invest in educational accreditation

services; foreign investors may not invest in self-sponsored study

abroad intermediary services; foreign investors may not invest in

educational testing services, provided that, upon approval of Chinese

government, foreign investors may engage in educational testing

services in the form of cooperation with institutions designated by

Chinese government.

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Annex I Entry 18 – Medicine

Sector: Medicine

Obligations


Level of

Government: Central

Measures1: Provisional Measures on the Administration of Sino-foreign Joint

Venture Medical Institutions (2000), Article 8;



Description: 1. Investments by foreign investors in medical institutions may be

made only in the form of joint venture. EU Investors are permitted to

establish wholly foreign owned privately funded hospitals and

clinics, excluding Traditional Chinese Medicine hospitals and

clinics, in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou,

Guangzhou, Shenzhen and the whole island of Hainan.

The majority of doctors and medical personnel of the joint venture

and wholly foreign owned hospital and clinics shall be of Chinese

nationality.

2. Foreign investors may not invest in the development and

application of human stem cells, or the development and application

of genetic diagnosis or treatment technology2.3

1 The level of liberalization of the Description element in this Entry goes beyond that of the

existing measures listed above. Whether China will amend the listed existing measures will not

prevent EU investors from enjoying the more favorable treatment provided in the Description

element when this Agreement comes into effect. 2 For greater certainty, this entry does not prevent foreign-invested medical institutions from

using approved human stem cell products and genetic diagnosis or treatment technology that has

been approved for clinical application.

3 After the promulgation of China's regulations on the development and application of

biotechnology, the two Parties will review this paragraph.

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Annex I Entry 19 – Protection of Biological Resources

Sector: Protection of Biological Resources

Obligations

Concerned:


Performance Requirements (Article 3)

Existing

Measures:

Biosecurity Law (2020), Article 59;

Wild Animals Protection Law (Amended in 2018), Articles 27, 40

and 48;

Animal Husbandry Law (Amended in 2015), Articles 16 and 17;

Grassland Law (Amended in 2013), Articles 44 and 49;

Seed Law (Amended in 2015), Articles 8, 10 and 11;

Fisheries Law (Amended in 2013), Article 8 and 46;

Regulation on the Protection of Wild Plants (Amended in 2017),

Article 16, 20, and 21;

Administrative Regulation of Human Genetic Resources (2019),

Article 7, 21, 22, 24.

Description: China requires approval of the research and development activities

conducted by foreign-invested enterprises utilizing the biological

resources1 (including human, animal, plant and microbe resources)

originated from, and protected by China. China also requires the

foreign-invested enterprises to conduct the aforesaid activities in the

form of cooperation with Chinese institutions, and to share with its

Chinese partners the benefits generated from such research and

development as well as subsequent applications and

commercialization.

1 For the purpose of this entry, biological resources includes genetic resources, organisms or parts

thereof, populations, or any other biotic component of ecosystems with actual or potential use or

value for humanity.

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Annex I Entry 20 – Press

Sector: Press

Obligations


Level of

Government: Central

Measures: Regulations on News Coverage by Resident Offices of Foreign

News Agencies and Foreign Correspondents (2008), Article 6;

Decision of the State Council on the Amendment of the Decision

of the State Council on Applying Administrative Licensing to the

Items Necessary for Reserving Administrative Approval (2009),

Article 3;

Provisions for the Administration of Foreign-Invested

Telecommunications Enterprises (2016), Article 6;

Provisions for the Administration of Internet Press Information

Services (2017), Article 7;



Description: 1. 1. Foreign investors may not invest in news service, including but

not limited to, news service provided through news agencies,

newspapers, periodicals, radio stations and television stations,

except that:

a. (1) subject to the approval of the Chinese government, foreign

news institutions may establish resident news offices in China

which could only conduct news interview, and may dispatch

resident journalists to China1;

b. (2) subject to the approval of the Chinese government and under

the condition that the leading position of the Chinese parties is

secured, Chinese and foreign news institutions may cooperate in

particular businesses.

2. 2. Foreign investors may not invest in Internet news information

service2 or Internet public information posting service1.

1 For greater certainty, the establishment of representative offices in China by newspapers or

periodicals, which only engage in news services, is subject to this subparagraph.

2 For greater certainty, “Internet news information” includes reports and commentaries on social

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3. 3. For investments by foreign investors in the internet information

searching services (information searching within a single website

not included), the shareholding percentage of the foreign

investors shall be no more than 50%.

4. 4. Subject to the approval of the Chinese government, foreign

news agencies may provide news service that is specifically

approved into the territory of China, such as the provision of

feeds to domestic news agencies.

and public affairs such as political, economic, military and foreign affairs, as well as reports and

commentaries on social emergency events. “Internet news information service” includes services

in respect of internet news information collection, editing, posting, reposting, and services in

respect of transmission platform, which are provided to the public through internet websites,

application programs, BBS, blogs, microblogs, public Wechat accounts, instant communication

tools, live internet broadcast, etc.

1 For greater certainty, “Internet public information posting service” refers to services that mainly

provide facilities through establishing BBS, blogs, microblogs and other information exchange

platforms to users for the posting of information to the general public.

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Annex I Entry 21 – Publication

Sector: Publication

Obligations


Level of

Government: Central

Measures: Provisions for the Administration of Network Publication Services

(2016), Article 10;



Description: 1. 1. Foreign investors may not invest in services with respect to the

editing, publication and production of books, newspapers,

periodicals, audio and video products and electronic publication;

nor may they invest in network publication service1.

Notwithstanding the previous sentence, subject to the approval of

the Chinese government, Sino-foreign press and publication

cooperation projects may be conducted by Chinese and foreign

publishers, provided that the operation leading position and the

right of final approval of the contents of the Chinese party are

secured, and other conditions attached by the Chinese government

in the approval are satisfied.

2. 2. Foreign newspapers, periodicals, publishing institutions of

books, audio and video products, electronic publications, etc. may

not establish any representative office without the approval of the

Chinese government. A representative office may only engage in

contact, communication, consultancy and reception services.

1 For greater certainty, “network publication service” refers to services that provide network

publications to the general public through information networks. Network publications refer to

digital products that have the characteristics of publishing, such as editing, production, processing,

etc., and that are provided to the public through information networks.

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Annex I Entry 22 – Radio and Television

Sector: Radio and Television

Obligations

Concerned:



Level of

Government: Central

Measures: Regulation on the Administration of Radio and Television (2017),

Article 10, 17, 23, 39, 40, 41;

Regulation on the Administration of Ground Receiving Facilities of

Satellite Television Broadcasting (2018), Article 3, 4;

Provisional Measures on the Installation Services for Ground

Receiving Facilities of Satellite Television Broadcasting (2015),

Article 15；



Description: 1. 1. Foreign investors may not invest in radio and television

broadcasting and transmitting services1.

2. 2. Foreign investors may not invest in the manufacture of ground

reception facilities for satellite television and broadcast and key

components thereof, and the installation services for ground

receiving facilities of satellite television broadcasts.

3. 3. Foreign investors may not invest in the production and operation

business of radio and television programs2, except that Chinese and

foreign enterprises may cooperate in the production of television

series (including television animations) subject to the approval of the

Chinese government.

1 For greater certainty, “radio and television broadcasting and transmitting services” includes

establishing and operating radio and television stations at each level, radio and television

frequencies, channels and programs in a time slot, and networks for radio and television

transmission and coverage (radio and television transmitting stations, rebroadcasting stations

(including transposer stations and relay stations), satellite radio and television integration

platforms, satellites, satellite up-link earth stations, satellite receiving stations, radio and television

microwave stations, broadcasting monitoring stations that are used for broadcasting radio and

television programs, and cable radio and television transmission and coverage networks, etc.), and

radio and television audio-and-video-on-demand businesses provided via radio and television

transmission coverage network.

2 For greater certainty, “production and operation business of radio and television programs”

includes the production, introduction and purchase of radio and television programs.

Without Prejudice

31

4. 4. The broadcasting of overseas radio and television programs

introduced into China is subject to the time percentages and time slot

arrangements prescribed by the Chinese government: ① The

programming hours for overseas films and television series

broadcasted by each television channel each day may not exceed

25% of the total programming hours for films and television series

broadcasted by that channel on that day; the programming hours for

other overseas television programs each day may not be more than

15% of the total programming hours of that channel on that day. No

overseas films or television series may be broadcasted during prime

time (19:00-22:00) without approval from the State Administration

of Radio and Television. ②Only domestic animations or domestic

animation programs may be broadcasted by each animation channel

during 17:00-22:00 each day. Animation channels, children’s

channels, channels for children and young adults, kids channels and

other channels targeting at juveniles must implement the

administrative rule that the proportion of programming hours for

domestic animations and for introduced animations each day may

not be less than 7:3. ③Introduction of overseas documentary is

subject to total quantity control. At the present stage, television

broadcasting institutions at all levels shall comply with the rule on a

daily basis that the proportion of programming hours for domestic

documentaries and for imported documentaries may not be less than

7:3. ④The majority of the programs for radio and television

video-on-demand must be domestic programs.

5. 5. The landing of overseas satellite channels is subject to the

approval of the Chinese government.

6. 6. Overseas radio, television and other mass media institutions may

not establish any agency or editors office in China. No representative

office may be established without the approval of the Chinese

government.

Without Prejudice

32

Annex I Entry 23 – Film

Sector: Film

Obligations

Concerned:



Level of

Government: Central

Measures: Law of the People's Republic of China on the Promotion of the Film

Industry (2017), Article 29;

Regulation on the Administration of Movies (2002), Article 5, 30, 44;



Description: 1. 1. Foreign investors may not invest in film production and

distribution companies, except that subject to the approval of the

Chinese government, the Chinese government permits and

encourages the cooperation between Chinese and foreign enterprises

in film production.

2. 2. Foreign investors may not invest in cinema companies and the

introduction of overseas films.

3. 3. The exhibition of films by all cinemas in China shall conform to

the time proportion prescribed by the Chinese government for the

exhibition of domestic and imported films, i.e. the time for domestic

films exhibited by domestic cinemas each year may not be less than

two thirds of the aggregate time for exhibition of all films in that

year.

Without Prejudice

33

Annex I Entry 24 – Culture and Recreation

Sector: Culture and Recreation

Obligations


Level of

Government: Central

Measures: Administrative Regulation on Commercial Performances (2016),

Article 10;


Investment (Negative List) (2019 Edition), Article 40;


Investment in Pilot Free Trade Zone (Negative List) (2019

Edition), Article 37.

Description: Foreign investors may not invest in any performing art groups. In

free trade pilot zones, Chinese control is required for investments

by foreign investors in performing art groups.

Without Prejudice

34

Annex I Entry 25 – Network Audio-Visual Service, Internet Culture Operation

Sector: Network Audio-Visual Service, Internet Culture Operation

(Excluding Network Music)

Obligations

Concerned:



Level of

Government: Central



Description: 1. 1. Foreign investors may not invest in network audio-visual

services1.

2. 2. Foreign investors may not invest in the operation of internet

culture (excluding network music).

3. 3. The yearly aggregate volume of overseas films and television

series introduced to be exclusively used for information network

shall not exceed 30% of the aggregate volume of domestically

produced films and television series used for information network

in the previous year.

1 For the purpose of this entry: “network audio-visual services” refers to the provision of

audio-visual services through information network. “information network” refers to information

transmission carrier which uses the Internet Protocol (IP) as the main technical approach and

various electronic equipment including computer, television and mobile phone as the receiving

terminal, including mobile communication network, fixed communication network, microwave

communication network, cable television network, satellite or other metropolitan area network,

WAN, LAN, etc.

Without Prejudice

35

Annex I Entry 26 – Atomic Energy

Sector: Atomic Energy

Obligations


Level of

Government: Central

Measures: Regulation of the People's Republic of China on the Control over

Nuclear Exports (2006), Article 2, 6;


Investment (Negative List) (2019 Edition), Article 5, 7, 11.

Description: 1. Chinese control is required for investment by foreign investors

in building or operation of nuclear power stations.

2. Foreign investors may not invest in the exploration, mining,

purification, transformation, isotope separation, or engage in

nuclear export businesses for materials and items listed in the

Nuclear Export Control List.

Without Prejudice

36

Annex I Entry 27 – Banks

Sector: Financial Services

Sub-Sector: Banks

Obligations


Level of

Government: Central

Measures: Regulation of People’s Republic of China on the Administration of

Foreign-Invested Banks (2019), Article 10, 11, 31, 44;

Detailed Rules on Implementing the Regulation of People’s

Republic of China on the Administration of Foreign-Invested

Banks (2019), Article 58;

Measures of China Banking and Insurance Regulatory

Commission for Implementing Administrative Licensing Matters

for Chinese-Invested Commercial Banks (2018), Article 8;

Measures of China Banking and Insurance Regulatory

Commission for Implementing Administrative Licensing Matters

of Small and Medium-Sized Rural Banking Institutions (2019),

Article 8, 23, 27.

Description: 1. Foreign investors investing in a bank shall be foreign financial

institutions. In cases where foreign investors obtain controlling

interests in a wholly foreign-owned bank or in a Sino-foreign

equity joint venture bank or where foreign investors investing in a

rural commercial bank, rural cooperative bank, rural credit

cooperative, or village bank shall be foreign commercial banks1.

Foreign investors may not invest in private banks.

2. A foreign bank’s branch may not engage in bank card business;

a foreign bank’s branch shall hold a certain proportion of

interest-bearing assets in accordance with the provisions of the

banking regulatory authority of the State Council; a foreign

bank’s branch may not conduct RMB business for Chinese

1 For the purpose of this entry, a “foreign commercial bank” refers to a financial institution that is

registered outside China and may accept public deposit, participate in deposit insurance and

subject to capital supervision upon the approval or permission of the financial regulatory authority

of the country or region where it is located.

Without Prejudice

37

citizens in the territory of China, except for the term deposits with

each in an amount of no less than RMB 500,000.

For greater certainty, a foreign investor who cumulatively

acquires no more than 5% of the shares of a bank solely through

securities transactions in domestic and overseas secondary

markets shall not be subject to the restrictions set forth in

paragraphs 1 of this Entry.

Without Prejudice

38

Annex I Entry 28 – Securities Company


Sub-Sector: Securities Company1

Obligations


Level of

Government: Central

Measures: Measures for the Administration of Foreign-invested Securities

Companies (2018), Article 6, 21.

Description: Foreign investors investing in securities companies shall be foreign

financial institutions.

For greater certainty, a foreign investor who cumulatively acquires

no more than 5% of the shares of a securities company solely

through securities transactions in domestic and overseas secondary

markets shall not be subject to the restrictions set forth in paragraph

2 of this Entry.

1 Requirements for assets scale, operation term and credit record by Chinese government on

foreign investors investing in securities and futures business institution are based on prudential

supervision, and do not violate the obligations under this Agreement.

Without Prejudice

39

Annex I Entry 29 – Securities Investment Fund Management Company


Sub-Sector: Securities Investment Fund Management Company1

Obligations


Level of

Government: Central

Measures: Official Reply of the State Council on the Issues Relating to the

Administration of Fund Management Companies Raising

Publicly-offered Funds (2013), Article 3;

Measures for the Administration of Securities Investment Fund

Management Companies (2012), Article 9.

Description: Foreign investors investing in securities investment fund

management companies (public and private) shall be foreign

financial institutions.

1 For the purpose of this Entry, “securities investment fund management companies” means

financial institutions established within the territory of China upon approval of China securities

regulatory institution and in accordance with the Securities Investment Fund Law of the People’s

Republic of China and the Company Law of the People’s Republic of China and engaging in the

management of publicly offered securities investment fund and other businesses permitted by the

securities regulatory authority of China.

Without Prejudice

40

Annex I Entry 30 – Futures Company


Sub-Sector: Futures Company1

Obligations


Level of

Government: Central

Measures: Measures for the Administration of Futures Companies (2019),

Article 11, 123.

Description: Foreign investors investing in a futures company with the

proportion of investment of 5% or more shall be foreign financial

institutions.

1 For the purpose of this Entry, a “futures company” means a financial institution established

within the territory of China upon the approval of China securities regulatory institution and in

accordance with the Company Law of the People’s Republic of China and the Regulation on

Futures Transaction Management and carrying out the futures business.

Without Prejudice

41

Annex I Entry 31 – Insurance


Sub-Sector: Insurance

Obligations


Level of

Government:

Central

Measures: Regulation of the People's Republic of China on the

Administration of Foreign-invested Insurance Companies (2019),

Article 8;

Detailed Rules on Implementing the Regulation of the People's

Republic of China on the Administration of Foreign-invested

Insurance Companies (2019), Article 3;

Measures for the Equity Administration of Insurance Companies

(2018), Article 6, 15;

Provisional Measures on the Administration of Insurance Asset

Management Companies (2011), Article 9.

Description: 1. The aggregate shareholding percentage of domestic insurance

companies1 in an insurance asset management company shall be

no less than 75%.

China will not maintain the non-conforming measures listed in

this paragraph within three years from the date of entry into force

of this Agreement.

2. If the proportion of investment of one or more foreign investors

in an insurance company is less than 25%, such one or more

foreign investors shall be foreign financial institutions (except for

those who purchase the stocks of an insurance company at the

securities exchange), and the total assets of each foreign investor

at the end of the preceding year shall be no less than USD 2

billion.

If the proportion of investment of one or more foreign investors

applying for establishing an insurance company is 25% or more,

1 For the purpose of this entry, a “domestic insurance company” means an insurance company or

insurance holding (group) company established upon the approval of China insurance regulatory

institution and legally registered with the legal person status.

Without Prejudice

42

the insurance company invested by such foreign investors is a

foreign-invested insurance company1, and each of the foreign

investors shall meet the following requirements:

(1) it shall be a foreign insurance company;

(2) its total assets shall be no less than USD 5 billion at the

end of the year prior to its application for the establishment.

1 For the purpose of this entry, a “foreign-invested insurance company” means a joint venture

insurance company established by a foreign insurance company and Chinese companies or

enterprises within the territory of China, and the foreign insurance company's subsidiaries or

branches in China.

Without Prejudice

43

Annex I Entry 32 – Banks (Deposit Insurance)


Sub-Sector: Banks

Obligations

Concerned:


Most-Favored-Nation Treatment (Article 5)

Level of

Government: Central

Measures: Regulation on Deposit Insurance (2015), Article 2.

Description: The branches established by foreign banks in the territory of the

People’s Republic of China shall not participate in the deposit

insurance and are not covered by the deposit insurance scheme,

unless otherwise provided for by the arrangements between China

and other countries or regions with regard to the deposit insurance

system.

Without Prejudice

44

Annex I Entry 33 – Financial Assets Management Company


Sub-Sector: Financial Assets Management Company1

Obligations


Level of

Government:

Central

Measures: Regulation on Financial Asset Management Companies (2000),

Article 2;

Measures of the China Banking and Insurance Regulatory

Commission on Implementing Administrative Licensing Matters of

Non-banking Financial Institutions (2018), Article 114, 116.

Description: Foreign investors investing in an existing financial assets

management company shall be foreign financial institutions, and the

total assets of a foreign investor investing in an existing financial

assets management company shall be no less than USD 10 billion by

the end of the year prior to its application.


no more than 5% of the shares of a financial assets management

company solely through securities transactions in domestic and

overseas secondary markets shall not be subject to the restrictions set

forth in this Entry.

1 For the purpose of this entry, a “financial assets management company” means a financial

institution mainly engaging in the purchase, management and disposal of non-performing assets.

As at the entry into force of this Agreement, the financial assets management companies that are

already established refer to China Huarong Asset Management Co., Ltd., China Great Wall Asset

Management Corporation, China Oriental Asset Management Corporation, and China Cinda Asset

Management Co., Ltd.

Without Prejudice

45

Annex I Entry 34 – Other Banking Financial Institutions


Sub-Sector: Other Banking Financial Institutions

Obligations


Level of

Government:

Central

Measures: Measures of the China Banking Regulatory Commission for

Implementing Administrative Licensing Matters of Trust Companies

(2015), Article 6, 21;

Measures of the China Banking and Insurance Regulatory

Commission for Implementing Administrative Licensing Matters of

Non-banking Financial Institutions (2018), Article 24, 27, 30, 50, 59,

112;

Measures for the Administration of Financial Leasing Companies

(2014), Article 8, 11, 14;

Measures for the Administration of Pilot Programs of Consumer

Finance Companies (2013), Article 7;

Measures for the Administration of Pilot Programs of Currency

Brokerage Companies (2005), Article 7.

Description: 1. A foreign investor investing in a trust company shall be a foreign

financial institution.

2. A foreign investor investing in a financial leasing company1 shall

be a foreign financial institution or foreign financial leasing

company, and the total assets of such foreign investor shall be no

less than USD 1 billion by the end of the year prior to its application,

in the case of foreign financial institution (exclusive of a commercial

bank); and shall be no less than RMB 10 billion in the case of a

foreign financial leasing company.

3. A foreign investor investing in a currency brokerage company

shall be a currency brokerage company, and shall have been engaged

in currency brokerage business for over 20 years and have a global

1 For the purpose of this Entry, a “financial leasing company” means a non-bank financial

institution established with the approval of the China banking regulatory authority and mainly

engaged in financial leasing.

Without Prejudice

46

organization network and an information communications network

as required for engaging in currency brokerage service.

4. A foreign investor investing in a consumer finance company as

main investor1 shall be a foreign financial institution.

5. A foreign investor investing in other banking financial institutions

other than a trust company, financial leasing company, currency

brokerage company, consumer finance company, finance company

and auto finance company shall be a foreign financial institution, and

its total assets shall be no less than USD 1 billion by the end of the

year prior to its application.


no more than 5% of the shares of any one of such other banking

financial institutions solely through securities transactions in

domestic and overseas secondary markets shall not be subject to the

restrictions set forth in this Entry.

1 For the purpose of this Entry, “main investor” means an investor in the consumer finance

company with the largest proportion of investment and no less than 30%.

Without Prejudice

47

Annex I Entry 35 – All Sectors

Sector: All Sectors

Obligations


Level of

Government: Central

Measures: Regulation of the People's Republic of China on the

Administration of Foreign Exchange (2008), Article 16, 23;

Notice of the State Administration of Foreign Exchange on

Reforming and Regulating Policies on the Administration over

Foreign Exchange Settlement of Capital Accounts (2016).

Description: After completing the foreign exchange registration for foreign

direct investment, foreign-invested enterprises shall, according to

the nature of the transaction, open designated foreign exchange

accounts under direct investment at the banks directly, including

capital accounts and asset liquidation accounts. Capitals of

foreign-invested enterprises and Renminbi funds gained through

the settlement of foreign exchange shall not be invested directly

or indirectly in securities or wealth management products

(principal-guaranteed products issued by banks not included), or

used for issuance of loans to unrelated enterprises (except as

otherwise explicitly specified in the business scope of the

enterprise), or the construction or purchase of real estate that is

not for self-use (real estate enterprises not included).

Without Prejudice

48

Annex I Entry 36 – All Sectors

Sector: All Sectors

Obligations


Level of

Government: Central

Measures: Law of the People’s Republic of China on Sole Proprietorship

Enterprises (1999), Article 47;

Law of the People’s Republic of China on Specialized

Cooperatives of Farmers (2017), Articles 2, 3, 4, 19;

Regulation on Individual Business Entity (2016), Article 2;


Investment (Negative List) (2019 Edition), Paragraph 4 of the

Notes.

Description: 1. Foreign investors may not carry out business operations in

China in the forms of individual business entities or individual

sole proprietorship enterprises, or as members of specialized

cooperatives of farmers.

2. Foreign-funded partnership enterprises may not be established

for industries, areas or businesses with the requirement of

“foreign investor may not invest”, “Chinese control”, “relative

Chinese control”, “may invest only in the form of joint venture”,

or industries, areas or businesses subject to certain foreign

investment proportion requirements, as included in the Negative

List of China.

Without Prejudice

49

ANNEX II

Without Prejudice

50

Annex II

Explanatory Notes

1. The Schedule of China to this Annex sets out, pursuant to Article 7

(Non-Conforming Measures and Exceptions), the specific sectors, subsectors, or

activities for which China may maintain existing, or adopt new or more restrictive,

measures that do not conform with obligations imposed by:

(a) Article 4 (National Treatment);

(b) Article 5 (Most-Favored-Nation Treatment);

(c) Article 3 (Performance Requirements); or

(d) Article 6 (Senior Management and Boards of Directors).

2. Each Schedule entry sets out the following elements:

(a) Sector refers to the sector for which the entry is made;

(b) Obligations Concerned specifies the article(s) referred to in paragraph 1

that, pursuant to Article 7.2 (Non-Conforming Measures and Exceptions),

do not apply to the sectors, subsectors, or activities scheduled in the entry;

(c) Description sets out the scope of the sectors, subsectors, or activities

covered by the entry; and

(d) Existing Measures identifies, for transparency purposes, existing

measures that apply to the sectors, subsectors, or activities covered by the

entry.

3. In accordance with Article 7.2 (Non-Conforming Measures and Exceptions), the

articles of this Agreement specified in the Obligations Concerned element of an

entry do not apply to the sectors, subsectors, or activities identified in the Description

element of that entry.

4. For the purposes of the Schedules of China to this Annex, “foreign investor”

means any investor of the other Party or a non-Party.

5. For great certainty, with respect to a reservation concerning the supply of a

service, if the means of delivery is not specified or otherwise described or limited, the

reservation shall apply to all means of delivery of the service.

6. For greater certainty, unless otherwise specified in a reservation, the supply of a

Without Prejudice

51

service shall not be subject to a reservation merely because it’s supplied through a

particular means of delivery including through public communication networks or the

Internet.

7. The sectorial exclusion of audio-visual services from the scope of Section II:

investment liberalizaion as provided in Article 1 (Scope of Application) of Section II,

Sub-section I shall prevail over relevant entries in Annex I and Annex II of China’s

negative list. Measures regarding activities covered by the sectorial exclusion of

audio-visual services , if included in Annex I and Annex II of China’s negative list,

are listed solely for transparency purposes.

Without Prejudice

52

Annex II

SCHEDULE OF CHINA

Annex II Entry 1 – Social Services

Sector: Social Services

Obligations

Concerned:





Description: China reserves the right to adopt or maintain any measure with

respect to the provision of services established or maintained for

public purposes in the following areas: social insurance1, social

assistance, social welfare2, compulsory education, public culture3

(including the establishment and operation of mass culture

pavilion, library, fine art museum, culture center, and museums,

etc.), and public-funded health institutions.

1 The social insurance system established by China includes Basic Old-Age Insurance, Basic

Medical Insurance, Work Injury Insurance, Unemployment Insurance, and Maternity Insurance.

2 For greater certainty, social welfare includes protection of interests of the group of preferential

treatment, households enjoying the minimum living guarantee, aged people, the disabled and

children.

3 For greater certainty, the reservation with respect to public culture under this entry does not

affect China’s commitments under entries 20-25 in Annex I.

Without Prejudice

53

Annex II Entry 2 – Atomic Energy

Sector: Atomic Energy1

Obligations

Concerned:






respect to the storage, transportation and reprocessing of spent

fuels, decommissioning of nuclear facilities and disposal of

radioactive wastes, as well as nuclear import business.

1 For greater certainty, this entry does not apply to investment by foreign investors in the building

or operation of nuclear power stations or in the isotope, radiation and laser technology.

Without Prejudice

54

Annex II Entry 3 – Ethnic Minorities

Sector: Ethnic Minorities1

Obligations

Concerned:


Most-Favored-National Treatment (Article 5)



Description: China reserves the right to adopt or maintain any measure that

grants rights or preferences to places where ethnic minorities live in

compact communities with the view to balance economic

development and maintain social justice.

1 For the purpose of this entry, “ethnic minorities” refer to 55 non-Han minorities that have less population than Han nationality in 56 ethnic nationalities identified and recognized by the Chinese

central government.

Without Prejudice

55

Annex II Entry 4 – Culture and Related Industries

Sector: Culture and Related Industries

Obligations

Concerned:




Description: In the event where China amends existing measures after entry into

force of this Agreement to permit foreign investors to invest in

businesses or enterprises that are not permitted for foreign

investment as prescribed in Entry 20 – Entry 25 of Annex I, to the

extent that such foreign investment is permitted, China reserves the

right to adopt measures inconsistent with Article 9 (Performance

Requirements) and Article 10 (Senior Management and Board of

Directors) as well as measures with respect to the transfer and

disposition of state-owned assets that are inconsistent with Article 3

(National Treatment)

Without Prejudice

56

Annex II Entry 5 – Chinese Traditional Medicine

Sector: Chinese Traditional Medicine

Obligations

Concerned:






respect to the application of processing techniques of Chinese

medicinal decocting pieces including steaming, plain stir-baking,

stir-baking with adjuvant, calcining and the manufacture of

confidential prescription products of Chinese patent medicine.

Without Prejudice

57

Annex II Entry 6 –Water Transportation

Sector: Water Transportation

Obligations

Concerned:




respect to domestic water transport (including maritime cabotage

transport).1

1 For greater certainty, domestic water transport refers to passenger and freight transport between

the ports or points of China. If vessels of the EU sail from one port of China to another to load

cargo for foreign countries or discharge cargo from abroad, it shall be regarded as a part of the

international maritime transport.

Without Prejudice

58

Annex II Entry 7–Services related to Air Transport

Sector: Services related to Air Transport

Obligations


Description: China reserves the right to adopt or maintain any reciprocal measure

with respect to computer reservation system services and ground

handling services.

Without Prejudice

59

Annex II Entry 8 – Protection of Cultural Heritage

Sector: Protection of Cultural Heritage

Obligations

Concerned:





respect to the protection, repair and restoration of cultural relics and

intangible cultural heritage, including investigation, exploration,

excavation, transfer, collateral, pledge, lease, exploitation and

utilization, etc.

Without Prejudice

60

Annex II Entry 9 – Non-Profit Organizations

Sector: Non-Profit Organizations

Obligations

Concerned:



Description: China reserves the right to adopt or maintain the following

measures:

Unless approved by the Chinese government: foreign investors and

covered investments may not invest in non-profit organizations

within the territory of China; non-profit organizations established

outside of China may not set up representative offices or branches in

China. To conduct activities temporarily in China, foreign non-profit

organizations shall cooperate with domestic entities, and the term

for such temporary activities shall not exceed one year. The senior

executives of non-profit organizations which have been approved to

be established within the territory of China shall be Chinese

citizens.

Without Prejudice

61

Annex II Entry 10 – Land

Sector: Land

Obligations

Concerned:






respect to restricting foreign investors and their investments in the

use or contracted management of agricultural land1.

Existing

Measures:

Land Administration Law(2004), Articles 2, 4, Chapters 2, 4, 5;

Forestry Law(1998), Articles 15, 27;

Grassland Law(2013), Articles 10, 11, 13;

Fisheries Law(2004), Article 11;

Law on the Contracting of Rural Land(2002), Article 33

1 For the purpose of this entry, agricultural land refers to the land directly used for agricultural production, including arable land, forest land, grass land, land for farm and water conservancy,

waters for aquaculture, etc.

Without Prejudice

62

Annex II Entry 11 – Financial Services


Obligations


Description: 1. Investment activities by foreign investors having a nature of

banking services shall be carried out through commercial

presence.

2. China reserves the right to adopt measures with regard to the

borrowing of foreign debts by domestic enterprises and

individuals pursuant to the foreign debt administration regime.

Without Prejudice

63

Annex II Entry 12 – All Sectors

Sector: All Sectors

Obligations

Concerned:



Description: 1. In the sectors where the EU has reserved a policy space in

relation to the right to limit the amount of equity invested by

foreign investor, or to require nationality or residency for senior

managers and boards of directors, in connection with the transfer

or disposal of state owned assets, which it has not already

reserved under GATS, China may adopt or maintain an equivalent

measure when transferring or disposing of its own state-owned

assets in that same sector, provided that such measure is

consistent with China’s obligations under GATS.

2. Notwithstanding paragraph 1, China, in its admission of foreign

investment, including via mergers and acquisitions as well as

acquisition of controlling shares by an established EU investor,

commits not to restrict the acquisition of state owned assets by

EU investors in the sectors liberalised pursuant to Annexes I to II

beyond the restrictions set out in the relevant reservations.

3. This entry does not apply to the transfer or disposition of assets

which are no longer state-owned assets after their transfer or

disposition.

Without Prejudice

64


Sector: All Sectors

Obligations

Concerned: Most-Favored-Nation Treatment (Article 5)

Description: 1. China reserves the right to adopt or maintain any measure that

accords differential treatment to the parties under any bilateral or

multilateral international agreement in force or signed prior to the

date of entry into force of this Agreement.

2. China reserves the right to adopt or maintain any measure that

accords differential treatment to the parties under any existing or

future bilateral or multilateral international agreement which

liberalises service in accordance with Article 5 of GATS or

liberalises investment provided the agreement has substantial

sector coverage in terms of number of sectors, and provides for

the absence or elimination of substantially all discrimination in

the covered sectors either at the entry into force of that agreement

or on the basis of a reasonable time-frame.

3. With respect to the following areas, China reserves the right to

adopt or maintain any measure that accords differential treatment

to the parties under any bilateral or multinational agreement

effected or signed after the date of entry into force of this

Agreement:

(1) Aviation;

(2) Fisheries;

(3) Agriculture, hunting, forestry and logging;

(4) Mining and energy related activities.

Without Prejudice

65


Sector: All Sectors

Obligations

Concerned:






respect to any special arrangement or favorable treatment for any

investor from Hong Kong, Macao and Taiwan as well as any

investment thereof.

Without Prejudice

66


Sector: All Sectors

Obligations

Concerned:





Description: 1. China reserves the right to adopt or maintain any measure

with respect to a new industry.

2. A new industry refers to an economic activity that does not

exist as of the date of entry into force of this Agreement and

that cannot be classified in ISIC Rev.41. For greater certainty,

this reservation does not alter other commitments and

reservations reflected in China’s offer.

3. China shall notify the EU prior to adopting a measure with

respect to a new industry that is inconsistent with the

above-mentioned obligations. At the request of either Party,

the Parties shall enter into negotiations with regard to the

liberalisation commitments for a new industry.

1 ISIC Rev. 4 refers to the fourth version of International Standard Industrial Classification of all

Economic Activities published by Statistical Office of the United Nations in 2008.

Without Prejudice

67


Sector: All Sectors

Obligations

Concerned: Performance Requirements (Article 3)


regard to subsidies for research and development.

Without Prejudice

68

Annex II Entry 17 – Lottery

Sector: Lottery

Obligations

Concerned:





respect to the lottery sector.

Without Prejudice

69

Annex III

Without Prejudice

70

Annex III

Schedule of specific commitments and limitations on market access

Schedule of China

Explanatory Notes

1. The Schedule hereof sets out:

(a) in the first column, the sectors or sub-sectors where market

access commitments are undertaken, in accordance with Article

2 of Section II (Liberalisation of Investment – market access).

Economic activities in sectors or sub-sectors covered by this

Agreement and not mentioned in this Schedule are not

committed;

(b) in the second column, the limitations that do not conform with

obligations imposed by Article 2 of Section II (Liberalisation of

Investment – market access).

2. For the purposes of this Schedule:

(a) CPC means Central Product Classification (CPC) numbers as set

out in Statistical Office of the United Nations, Statistical Papers,

Series M, No. 77, Provisional Central Product Classification,

1991;

(b) ICNEA means Industrial Classification for National Economic

Activities (GB/T 4754 – 2017), published on 30 June 2017

jointly by General Administration of Quality Supervision,

Inspection and Quarantine of the People's Republic of China,

and Standardization Administration of the People's Republic of

China.

3. This Schedule does not include measures relating to qualification

Without Prejudice

71

requirements and procedures, technical standards and licensing

requirements and procedures where they do not constitute market

access limitations within the meaning of Article 2 of Section II

(Liberalisation of Investment – market access). Such measures (e.g.

measures requiring to obtain a license, measures regarding universal

service obligations, measures requiring to have recognized

qualifications in regulated sectors, measures requiring to pass

specific examinations, including language examinations, and any

non-discriminatory requirement that certain activities may not be

carried out in protected zones or areas) may apply in any case.

4. For greater certainty, non-discriminatory measures of the following

types do not constitute market access limitations within the meaning

of Article 2 of Section II (Liberalisation of Investment – market

access):

(a) a measure concerning zoning and planning regulations affecting

the development or use of land, or other analogous measures;

(b) a measure requiring the separation of the ownership of

infrastructure from the ownership of the goods or services

provided through that infrastructure to ensure fair competition,

for example in the fields of energy, transportation and

telecommunications;

(c) a measure restricting the concentration of ownership to ensure

fair competition;

(d) a measure seeking to ensure the conservation and protection of

natural resources and the environment, including a limitation

on the availability, number and scope of concessions granted,

and the imposition of a moratorium or ban;

(e) a measure limiting the number of authorisations granted

because of technical or physical constraints, for example

Without Prejudice

72

telecommunications spectrum and frequencies; or

(f) a measure requiring that a certain percentage of the

shareholders, owners, partners, or directors of an enterprise be

qualified or practice a certain profession such as lawyers or

accountants.

5. The sectorial exclusion of audio-visual services from the scope of

Section II: investment liberalizaion as provided in Article 1 (Scope

of Application) of Section II, Sub-section I shall prevail over

relevant commitment in this schedule. Such commitment regarding

activities covered by the sectorial exclusion of audio-visual services,

if included in this schedule, are listed solely for transparency

purposes.

Without Prejudice

73

Sector or sub-sector Limitations on market access

I. HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED IN

THIS SCHEDULE

Foreign investors may not carry out business

operations in China in the forms of

individual business entities or individual sole

proprietorship enterprises, or as members of

specialized cooperatives of farmers.

Foreign-funded partnership enterprises may

not be established for industries, areas or

businesses with the requirement of “foreign

investor may not invest”, “Chinese control”,

“relative Chinese control”, “may invest only

in the form of joint venture”, or industries,

areas or businesses subject to certain foreign

investment proportion requirements, as

included in the Negative List of China.

The establishment of branches by foreign

enterprises is unbound, unless otherwise

indicated in specific sub-sectors.

Representative offices of foreign enterprises

are permitted to be established in China, but

they shall not engage in any profit-making

activities except for the representative

offices under CPC 861, 862, 863, 865 in the

sectoral specific commitments.

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.

Without Prejudice

74


II. SPECIFIC COMMITMENTS

1. BUSINESS SERVICES

A. Professional Services

a. Legal Services

(CPC 861, excluding Chinese law

practice)

Foreign law firms can provide legal services

only in the form of representative offices.

Representative offices can engage in

profit-making activities.

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.

b. Accounting, auditing and

bookkeeping services (CPC 862)

None

Without Prejudice

75


c. Taxation services

(CPC 8630)

None

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)

None

h. Medical and dental services

(CPC 9312)

The establishment of hospitals or clinics is

subject to quantitative limitations in line with

China's needs.

i. Veterinary services

(CPC 93201, 93209)

None.

B. Computer and Related Services

a. Consultancy services related to

the installation of computer hardware

(CPC 841)

None

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)

None

c. Data processing services

(CPC 843)

- Input preparation services

(CPC 8431)

- Data processing and tabulation

services

(CPC 8432)

- Time-sharing services

(CPC 8433)

None

Without Prejudice

76


- Other data processing services

(CPC 8439)

d. Data base services

(CPC 844), limited to services

provided from primarily structured

databases through a private

communication network.

None

e. other computer services

(CPC 849)

- Data preparation services

(CPC 84910)

- Other computer services n.e.c.

(CPC 84990), limited to training

services for staff of clients

None

C. Research and Development

Services

a. Research and development

services on natural sciences

(CPC 85101, 85102, 85103,

85104, 85105, 85109)

Unbound for the research and development

services relating to social sciences and

humanities, human stem cells, genetic

diagnosis or treatment technology, and the

research and development services utilizing

the biological resources originated from, and

protected by China. b. Interdisciplinary research and

experimental development services

(CPC 853)

D. Real Estate Services

a. Real estate services involving

own or leased property

(CPC 821)

None

b. Real estate services on a fee or

contract basis

(CPC 822)

None

F. Other Business Services

a. Advertising Services

(CPC871)

None

b. Market research services

(CPC 86401)

Unbound for social survey and economic and

social intelligence services not in connection

with merchandised products, such as industry

analysis, econometric modelling,

demographic analysis, etc.

c. Management Consulting services

(CPC 865)

None

d. Services related to management

consulting

None

Without Prejudice

77


(CPC 86601, 86609)

e. Technical testing and analysis

services (CPC 8676) and freight

inspection covered by CPC 749,

excluding statutory inspection

services for freight inspection

services

None

f. Services incidental to agriculture,

forestry, hunting and fishing

(CPC 881, 882)

None

k. Placement and supply services of

Personnel

(CPC 872)

None

m. Related scientific technical

consulting services

(CPC 8675)

None

- Offshore oil-field services

geological, geophysical and other

scientific prospecting services

(CPC 86751)

Sub-surface surveying services

(CPC 86752)

None

- Onshore oil-field services None.

- Surface surveying services (CPC

86753)

- Map - making services (CPC

86754)

None

Unbound for geodetic survey, hydro graphic

survey, aerial photography for mapping,

ground moving survey, administrative

boundary survey; compilation of topographic

maps, world political maps, national

administrative district maps, provincial or

lower administrative district maps, national

teaching maps, local teaching maps, true

three-dimensional maps and digital

navigation maps; regional geological

mapping, mineral geology, geophysics,

geochemistry, hydrogeology, environmental

geology, geological disasters or remote

sensing geology.

p. Photographic services

(CPC 875)

None

q. Packaging services

(CPC 876)

None

Without Prejudice

78


s. Convention services

(CPC 87909)

None

t. Translation and interpretation

services

(CPC 87905)

None

u. Credit reporting services

(CPC 87901)

A form of limited liability company or

joint-stock company is required.

v. Telephone answering services

(CPC 87903)

None

- 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)

None

2. COMMUNICATION SERVICES

B. Courier Services

(CPC 75121, except for those

specifically reserved to Chinese postal

authorities by law as of the date of

China's accession to the WTO)

Registration as a Chinese legal person is

required.

C. Telecommunication Services

a. Fixed communication services None

b. Cellular mobile communication

services

None

c. Satellite communication services None

d. Data communication services None

e. IP telephone services None

f. Cluster communication services None

g. Wireless paging services None

h. Network access facility services None

i. Domestic communication

facilities services

None

j. Network trusteeship services None

k. Internet data center services None

l. Content delivery network services None

m. Domestic Internet virtual private None

Without Prejudice

79


network services

n. Internet access services Unbound, except for provision of internet

access service to internet end users

o. Online data processing and

transaction processing services

None

p. Domestic multi-party

communication services

None

q. Store-and-forward services None

r. Call center services None

s. Code and protocol conversion

services

None

D. Audiovisual Services

- Videos, including entertainment

software and

(CPC 83202), distribution

services

- Sound recording distribution

services

None

- Cinema Theatre Services None

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

(CPC 511, 512, 5131, 514, 515, 516,

517, 5182)

None

1 Including dredging services relating to infrastructure construction. 2 Coverage of CPC 518 is limited only to the rental and leasing services of construction and/or demolition

machines with operator which are owned and used by foreign construction enterprises in their supply of services.

Without Prejudice

80


4. DISTRIBUTION SERVICES1

A. Commission Agents’ Services

(excluding salt, tobacco)

B. Wholesale Trade Services

(excluding salt, tobacco)

None

C. Retailing Services (excluding

tobacco)

None

D. Franchising None

E. Wholesale or retail trade services

away from a fixed location.

None

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)

Establishment of joint schools permitted.

1 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 and 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/merchandise 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 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 royalties. 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.

Without Prejudice

81


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)

F. Other Environmental Protection

Services

(CPC 9409)

G. Sanitation Services

(CPC 9403)

None

7. FINANCIAL SERVICES

A. All Insurance and

Insurance-Related Services

a. Life insurance

b. Non-life insurance

c. Reinsurance

d. Services auxiliary to insurance

None

e. Insurance intermediation service 1. Insurance brokerage: unless otherwise

provided by insurance regulatory authority of

the State Council, insurance brokers shall

take one of the following forms: (1) limited

liability company; (2) joint-stock company.

2. Insurance loss adjustor: insurance loss

adjustors shall take the form of partnership or

Without Prejudice

82


company in accordance with law.

3. Insurance agency: unless otherwise

provided by insurance regulatory authority of

the State Council, professional insurance

agencies shall take one of the following

forms: (1) limited liability company; (2)

joint-stock company.

B. Banking and Other Financial

Services (excluding insurance)

Banking services as listed below:

a. Acceptance of deposits and other

repayable funds from the public;

b. Lending of all types, including

consumer credit, mortgage credit,

factoring and financing of commercial

transaction;

c. Financial leasing

d. All payment and money

transmission services, including

credit, charge and debit cards,

travellers cheques and bankers

drafts(including import and export

settlement);

e. Guarantees and commitments;

f. Trading for own account or for

account of customers: foreign

exchange.

None

h. Money broking None

Motor vehicle financing by non-bank

financial institutions

None

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

None

Without Prejudice

83


acquisitions and on corporate

restructuring and strategy.

Securities Services1 The establishment of branches by foreign

enterprises is unbound. The shareholder of

the securities company, as well as the

shareholders’ controlling shareholders and

actual controllers may participate in no more

than two securities companies, and may

control no more than one securities company

thereof.

Asset management 1. Trust company: a single investor, its

affiliated parties, and the persons acting in

concert with that investor, may either

participate in no more than two trust

companies, or hold the majority shares of no

more than one trust company, except in the

case of merger, acquisition or restructuring of

a high risk trust company pursuant to

authorization of the banking regulatory

authority of the State Council.

2. Wealth management company: an investor,

its affiliated parties, and the persons acting in

concert with that investor, may either

participate in no more than two commercial

banks’ wealth management subsidiaries, or

control no more than one commercial banks’

wealth management subsidiary.

3. Fund management company: The

establishment of branches by foreign

enterprises in China is unbound. A financial

institution or several financial institutions

controlled by one actual controller may

participate in no more than two fund

management companies, and may control no

more than one fund management company

1 For China, securities services refer to part or all of the following business operations a securities company may

undertake upon the approval of China Securities Regulatory Commission: (a) securities brokerage; (b). securities

investment consulting; (c) financial advising relating to securities trading or investment; (d) securities underwriting

and sponsorship; (e) proprietary account transactions; (f) securities asset management; and (g) other securities

businesses.

Without Prejudice

84


thereof.

4. Unbound for the relevant services

provided by financial asset management

company, financial asset investment

company or pension fund management

company.

8. HEALTH-RELATED SERVICES AND SOCIAL SERVICES

- Hospital services

(CPC 9311)

The establishment of hospitals or clinics is

subject to quantitative limitations in line with

China's needs.

9. TOURISM AND TRAVEL RELATED SERVICES

A. Hotels (including apartment

buildings) and Restaurants

(CPC 641-643)

Foreign investors are permitted to construct,

renovate and operate hotel and restaurant

establishments in China.

B. Travel Agency and Tour Operator

(CPC 7471)

The business scope of the travel agency/ tour

operator is as follows:

a) travel and hotel accommodation services

for foreign travellers which can be made

directly with transportation and hotel

operators in China covering such operations;

b) travel services and hotel accommodation

services for domestic travellers which can be

made directly with transportation and hotel

operators in China covering such operations;

c) conducting of tours within China for

both domestic and foreign travellers, and

d) travellers check cashing services within

China.

10. SPORTING SERVICES

- Sporting services

(CPC 96411, 96412, 96413, 96419)

None

11. TRANSPORT SERVICES

A. Maritime Transport Services

- International transport (freight

and passengers)

(CPC 7211 and 7212 less cabotage

transport services)

None1

1 For greater certainty, the preconditions that are required by China’s domestic law for operating a fleet under the

national flag of the People’s Republic of China are not affected by the commitments listed in this subsection.

Without Prejudice

85


H. Auxiliary Services

a. Maritime cargo-handling services

(CPC 741)

c. Customs clearance services for

maritime transport

None

d. Container station and depot services None

e. Maritime agency services None

C. Air Transport Services

d. Aircraft repair and maintenance

services

(CPC 8868)

Establishment of juridical person is required.

Computer Reservation System (CRS)

services

None

the Selling and Marketing of air

transport services

None

Ground handling services The number of service suppliers in each

airport may be limited depending on the size

of the airport.

E. Rail Transport Services

F. Road Transport Services

Freight transportation by rail (CPC

7112)

Freight transportation by road in

trucks or cars (CPC 7123)

Supporting services for rail transport

services (CPC 743)

None

H. Services Auxiliary to all Modes of

Transport

Storage and warehousing services

(CPC 742)

None

Freight forwarding agency services

(CPC 748 and 749, excluding freight

inspection services)

None

12. MANUFACTURING

A. Processing of agricultural and

sideline food

(ICNEA: 13)

None

B. Manufacture of food product

(ICNEA: 14)

Only the designated common salt production

enterprises with approval may engage in the

production of common salt.

Without Prejudice

86


C. Manufacture of liquor, beverages

and refined tea

(ICNEA: 15)

None

D. Manufacture of textiles

(ICNEA: 17)

None

E. Manufacture of wearing apparel

(ICNEA: 18)

None

F. Manufacture of leather, fur, feather

and their products, as well as footwear

(ICNEA: 19)

None

G. Processing of wood, and

manufacture of product of wood,

bamboo, rattan, palm and straw

(ICNEA: 20)

None

H. Manufacture of furniture

(ICNEA: 21)

None

I. Manufacture of paper and paper

products

(ICNEA: 22)

None

J. Printing and reproduction of

recorded media

(ICNEA: 23)

Increasing production capacity of printing

and reproduction of recorded media shall be

in line with the planning.

K. Manufacture of goods for cultural

education, arts and crafts, sports and

recreation

(ICNEA: 24)

None

L. Processing of petroleum, coal, and

other fuels

(ICNEA: 25)

Increasing production capacity for oil

refining shall be in line with the planning.

M. Manufacture of raw chemical

materials and chemical products

(ICNEA: 26)

Application for engaging in the production of

explosives for civil uses shall be in line with

the planning.

N. Manufacture of pharmaceuticals

(ICNEA: 27)

Only designated enterprises may produce the

veterinary biological products used for

compulsory immunization.

O. Manufacture of chemical fibres

(ICNEA: 28)

None

P. Manufacture of rubber and plastic

products

(ICNEA: 29)

None

Q. Manufacture of non-metallic

mineral products

Increasing production capacity for cement

clinker and sheet glass is prohibited. For the

Without Prejudice

87


(ICNEA: 30) new cement clinker and sheet glass project

that are necessary, the production capacity in

the new project shall replace that of an old

project with same or greater production

capacity than the new project.

R. Smelting and rolling processing of

ferrous metals

(ICNEA: 31)

1. The establishment of new independent iron

smelting, steel smelting, or hot rolling

enterprises is prohibited.

2. Increasing production capacity for steel is

prohibited. The production capacity for steel

in the project for structure adjustment and

reconstruction, and the steel project proposed

or under construction that have been

approved or filed shall replace that of an old

project with greater production capacity than

the new project.

S. Smelting and rolling processing of

non-ferrous metals

(ICNEA: 32)

Increasing production capacity for

electrolytic aluminum is prohibited, unless

the production capacity for electrolytic

aluminum in the new project is to replace that

of an old project with the same or greater

production capacity than the new project.

The production capacity for and the

establishment of enterprises for rare earth

smelting and separation are subject to

quantitative restriction.

T. Manufacture of fabricated metal

products

(ICNEA: 33)

None

U. Manufacture of general-purpose

equipment

(ICNEA: 34)

None

V. Manufacture of special-purpose

equipment

(ICNEA: 35)

None

W. Manufacture of motor vehicles

(ICNEA: 36)

1 1 . The establishment of new traditional

fuel-powered motor vehicle enterprises is

prohibited. Increasing production capacity for

traditional fuel-powered motor vehicle

1 For greater certainty, the restrictions mentioned in Paragraph 1 does not apply for the acquisition of existing

traditional fuel-powered motor vehicle enterprises.

Without Prejudice

88


enterprises by existing auto companies shall

meet the following conditions1:

(1) The utilisation rate of automobile capacity

in the previous two years was higher than the

industry average of the same product

category;

(2) The proportion of new energy vehicles

output in the previous two years was higher

than the industry average;

(3) The utilisation rate of automobile capacity

in the two previous years in the province

where the project is located is higher than the

average level of the same product category

and there is no fuel vehicle enterprise of the

same product category that is specifically

disclosed by the industry regulator.

2. A new independent investment project for

pure electric vehicles2 by an enterprise may

only be established in a province meeting the

following conditions: (1) The utilisation rate

of automobile capacity in such a province in

the previous two years was higher than the

average level of the same product category;

(2) The existing independent investment

projects for pure electric vehicle of identical

product categories by an enterprise in such a

province have all been completed and the

annual output has reached its constructed

scale.

X. Manufacture of railway equipment,

ships and boats, aircraft and

spacecraft, and other transport

equipment

(ICNEA: 37)

Any project with new production capacity of

ships and boats is prohibited.

Y. Manufacture of electrical

machinery and equipment

(ICNEA: 38)

None

1 Investors are entitled to access the data relating to the utilization rate of capacity and the proportion of output

mentioned in Paragraph 1. 2 For greater certainty, establishing a new independent investment project for pure electric vehicles by an

enterprise does not include that expansion the business into production of pure electric vehicles by an existing

automobile manufacturer in China.

Without Prejudice

89


Z. Manufacture of computer,

communication, and other electrical

equipment

(ICNEA: 39)

None

AA. Manufacture of instruments

(ICNEA: 40)

None

BB. Other Manufacturing

(ICNEA: 41)

None

CC. Comprehensive utilization of

waste resources

(ICNEA: 42)

None

DD. Repair of fabricated metal

products, and machinery and

equipment

(ICNEA: 43)

None

Without Prejudice

90

Annex IV

Without Prejudice

91

Annex IV

Schedule of China

Business Visitors for Establishment Purposes and Intra- Corporate

Transferees

1. Managers and specialists may be required to demonstrate they possess

the professional qualifications and experience needed in the enterprise

to which they are transferred.

2. China reserves the right to adopt or maintain any measure with respect

to the entry and temporary stay of Business visitors for Establishment

Purposes and Intra-corporate transferees employed by a non-profit

organization.

3. The limitations applicable to the (entry and) temporary stay of natural

persons specified in the Schedule of Specific Commitments of China

(as set out in GATS/SC/135) upon China’s accession to the WTO

shall apply to Business Visitors for Establishment Purposes and

Intra-corporate Transferees, with respect to the sectors inscribed

therein, to the extent relevant.

4. Any reservation set out in Annex I and II also constitutes a reservation

Without Prejudice

92

for the purposes of Annex IV to the extent that the measure set out in

or permitted by that reservation affects the treatment of natural

persons for business purposes present in the territory of the other

party.

Without Prejudice

93

Annex X

1.The “traditional fuel-powered motor vehicle” mentioned in Paragraph 1 in

12W of China's Schedule of specific commitments and limitations on market

access does not include new energy vehicle (NEV), such as pure electric

vehicle including fuel cell entire vehicle (FCEV),and plug-in hybrid entire

vehicle (PHEV) 1etc.

2. In order to intensify the cooperation in the field of new energy vehicles

between both Parties, Paragraph 2 in 12W of China's Schedule of specific

commitments and limitations on market access does not apply to the

establishment of a new independent investment project for pure electric

vehicles by an enterprise that is invested by an investor of the other Party

provided that the total investment amount for this project is no less than USD 1

billion.

1 For further clarification, Paragraph 2 in 12W of China's Schedule of specific commitments and limitations on

market access and Paragraph 2 in this Annex shall apply to the establishment of a new independent investment

project for PHEV by an enterprise.

china- eu investment agreement negotiations - … · without prejudice 4 4. in the interpretation...

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